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Mega Groups of Airlines
Last updated March 2023. For Airlines’ History see the main chapter Air Traffic. The emergence of mega airline groups beyond the national borders of the past is a result of globalization. The multi-national activities of the colonial powers, shown by BOAC, UTA, Air France or the global engagements of Pan American and TWA are a matter of the past, dealt with the chapter Airlines’ History. At present, commercial alliances have emerged, but a report in Flug Revue (Nov 1999) has quoted Barry Humphreys of Virgin Atlantic, stating: “Alliances are only the second best solution”. Next steps became mergers and takeovers, in some cases considered as a rescue also for loss-making carriers. As an example, the rumors of a merger of British Airways, threatened by strike calls, with American Airlines had been quoted (by SZ). Only an interlude was the 20% participation of KLM in Northwest in 1989 and Lufthansa’s 16% share in JetBlue. For restrictions compare the chapter Open Skies, but they could not prevent mergers extending far beyond national borders. The most remarkable multi-national step in the past has been the creation of Scandinavian Airline System SAS, starting in 1946 as a consortium of the flag carriers of Sweden, Norway and Denmark, 50% owned by the governments. SAS helped with 30% to start Thai Airways International in 1960, fully nationalized in 1977. SAS participated with 15% in founding Austrian Airlines, started in 1958. SAS helped to create Gronlandsfly in 1960, known as Greenlandair, in 2002 becoming Air Greenland. Linjeflieg, Scanair and Spanair became SAS subsidiaries, and Braathens of Norway was acquired in 2001. A 38% share in Air Baltic was bought in 1999, following the acquisition of a minor stake from Baltic International USA, then changing to a 49% share in Estonian Air, acquired from Maersk in 1993. In 2018 Norway gave away its shares in SAS. International activities of other airlines followed, not on a flag carrier basis. For international mergers between airlines on the tourist sector, such as the Thomas Cook Group or the TUI Group, see the chapter Charter Pioneers. Minority shareholdings and regional subsidiaries of the airline groups generally are not mentioned.
Air France – KLM Group Traditional KLM of the Netherlands has entered Martinair of the Royal Nedlloyd shipping group in 1964, Transavia of Nedlloyd in 1981, Kenya Airways with a 25% stake in 1996 and it undertook other ventures. Overextended KLM had merger talks with British Airways in 2001, with no result. Air France had integrated UTA in 1992 and after reforms Air France has become profitable around 1998. Entering loss-making KLM in 2004 with an 89% share was the striking example of creating an international airline group with more than 400 jetliners in combination with an alliance membership. Wisely, the renowned brand names were maintained. Among the KLM subsidiaries, Martinair and Transavia were substantially owned, and in 2014 the latter was announced to become a large airline. But exactly to avoid a ‘Transavia Europe’, pilots were striking in 2014. Interested in Alitalia, the Air France-KLM Group has targeted to become Europe’s largest. “In March 2008 the Alitalia board accepted a conditional take-over offer from Air France-KLM. The offer was however withdrawn on 21 April 2008, due to opposition from Alitalia unions and incoming Italian prime minister Silvio Berlusconi (…). On 19th January 2009, Air France-KLM was announced as Alitalia’s strategic partner, taking a 25% equity stake“ (so reported by the World Airlines Directory of Flight International 2010). But in 2013 Frankfurter Allgemeine (Nov01) quoted Alexandre de Juniac, at that time Air France-KLM boss: “We are not there to invest money into an enterprise which in the long term cannot survive.” In 2014 Alitalia was entered by Etihad. Air France-KLM had talks also about investing in struggling Japan Airlines. In 2011 Air France-KLM bought an 11% share in Air Cote d’Ivoire, which started in 2012 as the successor of Air Ivoire, the flag carrier of this African country. And B.I. Hengi stated that in 2014 Air France has shown some interest in unprofitable Wizz Air of Hungary. In November 2014 the New York Times/ Reuters informed: “Air France said on Wednesday that a costly strike and a dip in fourth-quarter demand would shave 500 million euro off its 2014 core earnings.” For Air France’s problems with the labor unions see the chapter Open Skies. But low-cost Joon was abandoned in 2019. In 2017 Delta Air Lines was reported having bought almost 10% share in Air France-KLM. And in 2019 Flight Intl (Jan15) reported “…an ongoing regulatory tussle involving a plan by Delta, Air France-KLM and Virgin Atlantic to form a single venture with immunity from anti-trust laws.” Then the state of the Netherlands bought a c.13% share in Air France-KLM. A Transavia France was reported. A surprise has been KLM’s announcement of partnering in a windowless ‘Flying-V’ study. In 2019 Airbus presented its different blended-wing-body ‘Maveric’ study. More realistic was Air France’s replacement of its A380 fleet by the smaller A350XWB-900. For the Air France-KLM group, rescue by the governments was reported being already fixed, but under condition to reduce domestic flights by Air France and HOP in favor of the TGV high-speed trains. On condition of a compromise, the Netherlands agreed in June 2020 on a 3.4bn euro help for the group. In March 2021 it was reported (by reuters.com) that the Air France-KLM group “received 10.4 billion euro in loans and guarantees from France and the Netherlands.” In April 2021 participation in Air France-KLM was reported (via Wikipedia.org) by France with 28.6%, by China Eastern 9.6%, Netherlands 9.3% and Delta Air Lines 5.8%.
Lufthansa Group With Germany’s reunification, Lufthansa announced in 1990 to take 100% of Interflug, prevented by a monopolies commission. An example of international participation has become the start of Viva Airlines in 1988, 48% held by Lufthansa and Iberia each. In 1998 Iberia integrated it. Condor had been Lufthansa’s renowned touristic charter airline since 1961, transferred in 1997 to C&N, integrated into the Thomas Cook Group in 2003. DLT, the former OLT, was acquired in 1992, becoming Lufthansa CityLine. SunExpress started in 1990 as a joint-venture in equal parts with Turkish Airlines. ModiLuft of 1993 had been a multi-national activity in India, ended in 1996 when Royal Airways, later SpiceJet became the successor. Lufthansa bought also a small share in Luxair. Swiss International Air Lines was created in 2002 out of Crossair. Its collapsed predecessor Swissair had a participation in Sabena, a 20% share in TAP of Portugal and in 1999 it had acquired c.37% share in LOT of Poland, founded in 1929, taken back by the Polish government in 2009. In 1999 Swissair bought also a 20% stake in South African Airways, after its crisis in 2002 paid back by the government. Lufthansa’s offer of Star Alliance membership by Swiss was on condition of a takeover, which took place in 2005. That meant a change in direction by Lufthansa under its new CEO Wolfgang Mayrhuber, daring also acquisitions. Lufthansa agreed to take a stake in Brussels Airlines, as successor of Sabena with its African destinations a welcomed Star Alliance partner. Brussels Airlines had a complicated history. After Sabena’s demise, daughter DAT was rebranded SN Brussels in 2002, later merged with Virgin Express, in 2007 it became Brussels Airlines and in September 2008 Lufthansa agreed to acquire 45%, with the option to buy the remains. In 2018 LJ reported that Citijet of Ireland employed the Sukhoi Superjet with Brussels colors. When in 2008 Brussels Airlines had acquired a share in AirDC, 50% owned by Hewa Bora Airways, it proved a failure, for both these carriers of the (formerly Belgian) Congo Kinshasa were short-lived. Brussels Airlines participated in Korongo Airlines, started in 2012, stopped in 2015, facing competition by a new state-owned Congo Airways. Lufthansa has assisted the start of ECAir in the (formerly French) Congo Brazzaville in 2012, operated by PrivatAir, thus circumventing an EU ban. JetBlue was participated by Lufthansa in Dec 2007 for connecting flights from New York JFK. In 2007 the Muenchner Merkur (April16) had written: “Lufthansa has an eye on Iberia”, but the report ended with Mayrhuber’s statement: “We must not collect millstones.” Italian regional carrier Air Dolomiti was fully taken over in 2003, retaining its identity. Lufthansa Italia of 2009 was stopped in favor of Air Dolomiti. A 40% share in Lauda Air was temporarily held by Lufthansa, but Austrian Airlines integrated it in 2009. Austrian entered Slovak Airlines in 2005, which ended soon. By acquiring Austrian Airlines finally in 2009 and Brussels Airlines’ owner SN fully in Dec 2016, the Lufthansa Group became Europe’s other “mega”. And it maintained the separate brand names, too. In 2007 media had reported also Lufthansa’s interest in Alitalia, in SAS and in 2010 in LOT of Poland, only rumors. British Midland, its roots going back to Derby of 1949, was fully acquired in 2009. Later in 2012, Lufthansa sold it to British Airways, facing BMI’s losses, and in 2019 its successor was insolvent. Austrian gave away its 22.5% share in Ukraine International Airlines in 2013, right in time before war ruined that country. In 2014 Lufthansa abandoned its loose participation in JetBlue of the USA. An interest in entering Norwegian in June 2018 was another failed rumor.
When Lufthansa as a state-owned enterprise had amassed losses of 1 billion DM in 1991, privatization was pushed through by CEO Juergen Weber. In 1997 the government sold its last shares. After Lufthansa became harassed by strikes, CEO Christoph Franz transferred in 2013 secondary flights to Germanwings, which had been acquired via an earlier Eurowings (not to be confused with a different German Wings, which ended in 1990). Striking continued and in 2014 under the new CEO Carsten Spohr, a former pilot, a “Wings” holding was proclaimed. In 2016 an integration of Brussels Airlines into Eurowings Europe was announced, but Brussels Airlines was maintained and in 2017 a takeover of the remains of Thomas Cook Airlines Belgium was concluded. Concerning troubled Austrian, Der Spiegel (29/2015) commented: “Since Lufthansa amalgamated its daughter Austrian Airlines at one stroke with its regional daughter Tyrolean, the staff’s wages have shrunk clearly.” Austrian survived under its renowned label. Swiss European became Swiss Global Airlines, in 2018 integrated into Swiss. Its A340s were announced to be transferred in 2017 to daughter Edelweiss, acquired in 2008. And Swiss had started some cooperation with Helvetic Airways. After striking against Lufthansa, a result was reported in 2017 (e.g. by Handelsblatt, March16): Peace with Vereinigung Cockpit (VC) was concluded for five years. In 2021 Lufthansa started a subsidiary Eurowings Discover, separated from troubled Eurowings. Competitor Air Berlin was no longer subsidized by Etihad of Abu Dhabi and after its end in Oct 2017, Lufthansa and its Eurowings took most of the leased planes. Eurowings’ losses were reported in 2019 (by SZ, June18) and the project of reorganization emerged. Before the coronavirus crisis, the fleet size of the Lufthansa Group had climbed towards 900 planes. Against Lufthansa’s intentions of acquiring and maintaining Air Berlin’s daughter Niki, cartel arguments were brought forward by the EU commissioner, Lufthansa had to withdraw its offer and Carsten Spohr regretted it. When the Thomas Cook Group intended to get rid of airlines, an interest of Lufthansa in its Condor was rumored, but cartel arguments were feared. In Sept 2019 Cook went into insolvency. Condor became set to achieve a German bridge funding. In 2020 came the news (via Flight Intl, Feb04) that Condor “is to be acquired by the owner of LOT”, the state-owned PGL. In April the PGL cancelled the deal, the coronavirus being an excuse. On Dec01, 2020 Condor left the insolvency protection procedure, only the credit of 550 million euro has to be paid back and long-distance flights restarted. In 2021 Condor was entered by Attestor Capital with a 51% share. In 2022 some Condor flights were done by Heston Airlines from Lithuania and by airlines from other countries. TUIfly of the competing TUI Airlines Group got also a financial aid. Concerning Lufthansa, Financial Times stated on 9 May 2020 that “a 9bn euro bailout from Berlin is likely to be agreed in days. But it may come with conditions that threaten CEO Spohr’s hold on Europe’s second-largest airline group: the German state is insisting on taking a 25% equity stake and seats on the supervisory board.” During the crisis, Lufthansa announced to axe loss-making Germanwings and to abandon SunExpress. A danger were low stock prices, whereupon Carsten Spohr warned: “If somebody should attempt a hostile takeover, we will quickly contact the government” (translated from Handelsblatt, April08, 2020). By LuftNaSig security law, the majority must remain in reliable hands. And then the government offered Lufthansa the rescue under condition of entering with a 20% stake. The Lufthansa board of directors accepted a compromise. But on June17 Frankfurter Allgemeine was the first to report reluctance by the shareholder Thiele against the conditions of the rescue. He had increased his minority shares temporarily to 15.5%. The minister of finance refuted still more charitable presents and the labor union Ufo accepted the help immediately, despite the necessity of rationalization. Help for Swiss and Austrian was promised by their governments on condition of the Lufthansa rescue. And “Lufthansa could sell Brussels Airlines or let go it bust” (translated from Industriemagazin online, June20) – but Brussels Airlines expanded its flight offer. Finally H. Thiele accepted the Lufthansa rescue conditions and on June25, 2020 a 98% majority of the shareholders welcomed the relief action for saving Lufthansa. First a KfW credit up to 3bn euro should be paid back and then the 5.7bn governmental loan at a 4% interest rate. The government would not give up its shareholding before the payback. The Lufthansa bailout package of 9 billion euro ($10.1bn) was approved by the shareholders. “Out of the 9bn euro in taxpayer funds, 5.7bn is a silent capital contribution from the state, along with a 0.3bn share package. The other 3bn will be lent by the state-owned development bank KfW” (according to dw.com). In Feb 2021 it was reported (by flightglobal.com): “Lufthansa Group is to pay back early its loan, following the airline company’s issuing of 1.6bn euro in bonds.” In Sept 2021 it was published that thus the state would reduce its share and then it left participation in Lufthansa. After Portugal concluded privatization of its TAP, Lufthansa and also Air France-KLM showed interest. For Lufthansa’s activities for entering ITA, see the paragraph ‘Etihad left … Alitalia.
British Airways, Iberia, Aer Lingus - IAG British Airways, the successor of BOAC and BEA, has undertaken a surprising number of participations – compare the chapter Charter Pioneers. After privatization in 1987, an important step was the takeover of British Caledonian in 1988. After German reunification in 1990, British Airways tried to acquire the remains of East Germany’s Interflug, in vain. Then British Airways bought a German company, renamed it Deutsche BA and sold it as DBA in 2003. Another multi-national activity was targeted by British Airways and Aeroflot with a joint-venture ‘Air Russia’, announced in 1991, however it did not come. After British Airways decided in 1995 to give away the package holiday market, it sold Caledonian Airways, emerged out of British Airtours. In South Africa, British Airways acquired in 2000 a share of only 10% in Comair, but the BA livery appeared there, like also with GB Airways of Gibraltar, successor of Gibair of 1947. In 2022 Comair was insolvent. In 2008 all-business class Open Skies was founded. The former relations of British Airways with Qantas were marked still at the turn of the century by a 25% stake held in the Australian flag carrier. In 2007 Qantas terminated its participation in Air New Zealand. The intention of a fusion between British Airways and troubled Qantas had been abandoned by Qantas in 2010 (according to J. Flottau/ D.Plath). Between 2005 and 2011 British Airways was rationalized by the Irishman Willie Walsh, who already had saved Aer Lingus of Ireland, continued by Alex Cruz. British Midland was bought in 2012 and bmi regional expanded. Sueddeutsche Zeitung (SZ, Feb17, 2007) had quoted rumors of a possible merger of British Airways with American Airlines. In June 2016 a tiny majority voted for the Brexit and in 2020 it had to come true. Iberia, the Spanish flag carrier, has lost its ambitions to form a Latin American airline empire (so reported by Davies), but in 1990 it entered Aerolineas Argentinas, in 1995 rising the share to 83%, in 1998 giving it away to a Spanish state holding. Between 2001 and 2008 Grupo Marsans tried to save Aerolineas Argentinas, then nationalized. Iberia had entered troubled VIASA of Venezuela in 1991, another failure, which ended in 1997. Spain’s number two Aviaco was integrated in 1999 and in 2013 Vueling was acquired. In 2009 British Airways and Iberia concluded an agreement to merge, maintaining the brand names. When around 2010 the merger was in the course of completion, a 55% majority to be held by British Airways shareholders and 45% by Iberia shareholders was reported (by Flight International, 2010). In 2011 SZ (Jan28) reported: “The both (Oneworld) members BA and Iberia have just amalgamated within the International Airlines Group (IAG) and they clearly pointed out that the new trust would be open also to other interested partners”. IAG boss Willie Walsh has pushed through to save loss-making Iberia with drastic cost cuts. Luis Gallego, Iberia’s boss since 2014, rationalized the Spanish flag carrier, which had lost “1million de euros al dia en 2012” (quoted from El Pais). In Nov 2019 IAG concluded a contract to acquire Air Europa of Spain. In 2021 IAG renegotiated to buy Air Europa and it became intended to lower its price to half a billion and in Feb 2023 it was acquired. Aer Lingus, the Irish flag carrier, had started in 1936, according to World Airlines (of Flight Intl, 2010) as Aerlinte Eireann. It was targeted by Willie Walsh to enter the IAG group. In 2015 the Irish government allowed to sell 25% in Aer Lingus shares to IAG. A 30% stake was still held by Ryanair, which in 2007 had interest in a merger. In 1990 Aer Lingus had started Pegasus in Turkey, then cooperating with Futura in Spain, which operated even for Gambia International, but Aer Lingus left. In 2015 Aer Lingus was acquired completely by the IAG group, which then comprised more than 500 airliners. In 2015 Qatar Airways entered IAG with a 15% stake, then risen to 25%. When in 2018 IAG bought a minuscule share in Norwegian, some hope for this courageous airline has arisen, but in late 2019 it sold its Norwegian Air Argentina to JetSmart Argentina and in April 2020 a governmental rescue was granted as the last hope for Norwegian. During the Brexit disputes, Financial Times (Feb02, 2019) had informed: “The EU is to give airline groups such as IAG, the owner of British Airways and Iberia, a seven-month deadline to overhaul their shareholder make-up in order to retain full flying rights within the bloc after a no-deal Brexit.” When in 2019 IAG with its British majority announced to order more than 200 B.737MAX-8 and MAX-10, among the intended low-cost users were newcomer Level and Iberia’s traditional Vueling. Great Britain’s “special relations” to the USA were pointed out by LJ (July 2019) with the assumption that Airbus was not even asked for an offer. But Boeing’s new boss David Calhoun interrupted the MAX-8 production and not before Nov 2020 the US Federal Aviation Administration (FAA, the former Federal Aviation Agency) lifted its order for grounding the Max. A new Boeing 797 was still far away. In the meantime the Airbus A320neo family under boss Guillaume Faury advanced. In March 2020 British Airways announced to cancel hundreds of flights and IAG boss Willie Walsh agreed to postpone his retirement in favor of Luis Gallego of Iberia until Sept 2020. Then he became an IATA boss. Low-cost subsidiary Level started long-distance flights from Barcelona in 2017. Open Skies started at Paris and Level Europe at Vienna as short-lived subsidiaries. Financial Times (23 Oct 2020) reported 1.3bn euro quarterly losses of the IAG and warned: “Curbs dash IAG’s survival.” But traffic rights between the UK and EU were preserved, thanks to the ‘soft’ Brexit. IAG continued and in Nov 2022 it was reported (by aerotelegraph.com) that IAG obviously wants to take over low-cost Easyjet.
United Airlines In the USA, traditional United Airlines has exited ‘Chapter 11’ insolvency protection in 2006, and by merging with Continental Airlines under the United Airlines label in October 2010 the largest airline was created. Continental had increased its stake in Copa of Panama in 1999 to 51%, then reduced. With more than 800 jetliners, orders and intentions, United Airlines surpassed by far the European multi-national ‘megas’ of that time. Later more than 1,200 airliners were reported. Wisely, the Continental tailfin marking was combined with the UNITED label. For the year 2011, IATA had informed that United (plus Continental) surpassed Delta by revenue passenger kilometers. In 2015 United acquired a 5% share in Azul of Brazil – and see Avianca. A surprise was United Airlines’ order in June 2021 for the Mach 1.7 ‘Supersonic Overture’ from Boom, founded by Blake Scholl, then with 4 engines and for 80 passengers, ordered also by other airlines. But Rolls-Royce and others abandoned its interest in developing an engine for a supersonic passenger jet. Nevertheless FTT (according to golem.de) announced in 2022 to build it. American Airlines In 2012 the media have published the rumors of a merger between famous American Airlines, once world’s largest airline, and US Airways, which in 2005 has been saved by America West Airlines. Analyst Jens Flottau commented it (in SZ, Jan30, 2012), pointing out that American Airlines had to file for Chapter 11 protection and US Airways had already two times being insolvent. And also Delta Air Lines, which has exited from insolvency protection in 2007, was rumored for interest in a partnership. From 2011, Delta’s share in the USA’s market was reported being 21%, American Airlines 16% and US Airways 9%. Leader was United Airlines, together with swallowed Continental holding a 22% traffic share. As American Airlines had cash reserves of $4.1 billion when it filed for Chapter 11, reports did not assume any quick merger, but in February 2013 American Airlines and US Airways announced the fusion to be completed in the same year. With more than 1,100 jetliners and orders listed (in 2012), a traffic share in the US market of 25% was expected, ahead of United Airlines. However, already since the early 20th century the anti-trust regulations were an advantage for the economy, and in summer 2013 the U.S. Justice Department suited against the fusion. In November 2013 the airlines reached a settlement with the State Attorneys and the takeover of US Airways was concluded. On international flights the color scheme of American Airlines appeared immediately. Together with its subsidiaries it has become the largest airline global with more than 1,500 airliners. Delta Air Lines In 1987 Delta has absorbed Western Airlines, at that time ranking among the top-dozen global, and so Delta had become the third-largest airline in the USA. When Delta has filed for Chapter 11 in 2005, it was followed by Northwest “within minutes”, as Wikipedia commented it. A hostile offer by US Airways for acquiring Delta in 2006 was reported, in 2007 fended off. In 2010 Delta Air Lines has achieved rank 1 (by RPK) in the global statistics, after it had absorbed Northwest Airlines in 2009. Later statistics showed a fleet of c. 1,000 airliners, while other sources estimated more than 1,300 planes. In 2012 Delta participated in the oil industry, anticipating higher fuel prices – and it entered Virgin Atlantic, GOL of Brazil, in 2017 Air France-KLM and in 2019 LATAM. An investment in Japan Airlines has come into consideration when it had to be protected by Corporate Rehabilitation Law in 2010 (info via Wikipedia). But it exited administration in 2011 and remained Japan’s flag carrier, traditionally competing with ANA. Among the four largest airlines of the USA ranged the low-cost carrier Southwest Airlines – see the chapter Low-Cost Pioneers. These four airlines were estimated in 2015 (by SZ, July03) having a share within the US market of almost 90%. By fleet size, IATA had listed in 2014 the American Airlines Group being the leader global, followed by Delta Air Lines, United, Southwest, China Southern, Air China, China Eastern, Lufthansa Group, Air Canada and Air France-KLM.
Virgin Group and Participations By history, the Virgin Group is quite different, being a global holding beyond the continents. Remarkable is the fact that its founder, Richard Branson, has come from the music industry, like also Tony Fernandes, who had started multi-national AirAsia. Branson has founded Virgin Atlantic Airways, starting in 1984 from London Gatwick to Newark, then from Heathrow. Its Boeing 747s connected North America and later the network reached Tokyo, Sydney and even Johannesburg. Airbus A330, A340 joined the fleet and the A380 as well as the B.787 was ordered. In 1999 Singapore Airlines has acquired a substantial 49% share. The European low-cost market was entered in 1996 by acquiring Euro-Belgian Airlines, renamed Virgin Express, followed by Virgin Express France, but they could not rival Ryanair and easyJet. Virgin Express was taken over by SN Brussels, then Brussels Airlines. Virgin Sun of 1999 has been an interlude on the tourist sector. A partnership “with Continental Airlines gives Virgin access to Continental’s large network” (so reported by Jane’s guide), before Continental was acquired by United. Virgin America got its license for US domestic services not before 2007, only 25% being owned by the Virgin Group. Virgin Nigeria has started flights from London to Lagos in 2005, built up by the 49% shareholder Virgin Atlantic in co-ownership with the government. In 2009 it was rebranded Nigerian Eagle and long-haul services, initially with Virgin Atlantic A340s, were withdrawn. In 2010 the name was changed to Air Nigeria, and the Nicon Group of Jimoh Ibrahim acquired the 49% stake. London flights started with an A330, but in 2012 the management director was arrested (according to LJ) and Air Nigeria stopped services. In 2000 Virgin Blue started in the Australian low-fare market, in 2004 followed by Pacific Blue of New Zealand and in 2005 by Polynesian Blue Airlines, all the three being integrated into Virgin Australia in 2011, and in 2013 Skywest followed. The Australian flight Captain Sir Reginald Barnewall has been among the founders of Polynesian Airlines, then acquired by the government of Western Samoa, which participated in Polynesian Blue Airlines together with Virgin Blue in 2005, rebranded Virgin Samoa, in 2017 replaced by Samoa Airways. In 2011 Air New Zealand and in 2012 Singapore Airlines entered Virgin Australia. In 2014 Virgin Australia “bought” Tiger Australia at a symbolic price of 1 Australian dollar, then becoming Tigerair Australia, later dissolved. In 2016 shareholdings in Virgin Australia by Singapore Airlines, by Etihad and then also by the HNA Group were stated. In 2020 Financial Times reported the search for cash “to inject into Virgin Australia, which has collapsed into administration.” In 2020 it was sold to Bain Capital of the USA. The original Tiger Airways became majority-owned by Singapore Airlines, which integrated it into Scoot. Australia’s famous Qantas had built up a foothold in Asia by starting low-cost Jetstar Asia in 2004, participated by Temasek Holdings, engaged in Singapore Airlines – compare the chapter Low-Cost Pioneers. And Singapore Airlines cooperated with the Tata Group of India, starting Vistara there in 2015. Then Qantas reduced Jetstar participations. They were rivaled the AirAsia Group of Tony Fernandes, which reduced the wide-spread subsidiaries, too. Sir Richard Branson, who lives in low-tax British Virgin Islands, had in 2016 a net worth of almost $5 billion, according to Forbes. In 2008 rumors had arisen about a possible cooperation of the Virgin Group with Russia. In early 2011, Sir Richard evaluated “to form an alliance, merger or takeover that would allow the airline to compete with newly merged goliaths, such as IAG” (according to oagaviation.com). In 2012 Delta Air Lines acquired the 49% share in Virgin Atlantic, which was held by Singapore Airlines. Feeder service Virgin Red was dissolved. Sir Richard Branson’s most sensational engagement has become Virgin Galactic – see the chapter To Space. In England the Virgin Group had appeared with Virgin Trains. And in 2019 his UK holding had targeted Virgin Trains USA. Branson decided to enter cruise shipping and in 2020 the “Scarlet Lady” of 108,192gt was the first cruise ship of Virgin Voyages. Not enough: In 2016 media published his announcement of ordering the 55-passenger supersonic ‘Boom’, daring after the commercial failure of the Concorde. In the meantime Branson’s Virgin America was sold in 2016 to Alaska Airlines “in a deal worth $2.6 billion” (so reported by US Times, April05). JetBlue could not buy it and it was announced to abandon the label Virgin America. And after the British had voted for the Brexit, “Sir Richard Branson’s Virgin Group has called off a deal to buy a UK company”, informed Financial Times (June29, 2016). Nevertheless FlyBe was to become Virgin Connect, stopped in 2020. According to LJ, Branson abandoned in late 2019 the intention to sell 31% in Virgin Atlantic to Air France/ KLM, as his family wanted to keep the 51% majority. In May 2020 Financial Times wrote that Richard Branson “has come under fire for seeking state help for Virgin Group’s airline business.” Selling half of his stakes in Virgin Galactic “would allow Sir Richard to inject more capital into Virgin Atlantic, the airline which has asked the UK government for up to 500million pound of support…” The Telegraph (June29, 2020) commented: “The Government cannot be expected to prop up a struggling airline with a billionaire owner…” In 2023 Virgin Atlantic became officially a Skyteam alliance member.
Emirates Airline It was “incorporated by an emiri decree issued in June 1985 as the international airline of the United Arab Emirates” (information by the World Airlines Directory 2010). Under boss Tim Clark and CEO Ahmed bin Saeed Al Maktoum, within the first decade of the 21st century it leapt ahead from rank 20 to rank 3 global by RPK. Gulf Air of Bahrain, founded in 1950 as Gulf Aviation, until 1970 majority-owned by BOAC, from 1974 only temporarily the official flag carrier also of Qatar, Abu Dhabi and Oman, has fallen behind. In 1998 Emirates acquired a c.43% stake in Air Lanka, renamed SriLankan. In 2001 terrorists hit half of its fleet with an attack on the airport of Colombo. And in 2010 Emirates sold its share to the government of Sri Lanka. “Since then we are not keen in a participation in other airlines”, stated Tim Clark (in SZ, Nov22, 2012). In 2009 low-cost FlyDubai started. After in 2011 Qantas was almost “killed” by strikes, it had to be rationalized and confined its European flights to London, while passengers for other destinations had to change at Dubai to code-sharing Emirates. In 2016 also Malaysia Airlines started a similar cooperation with Emirates, in 2019 followed by SpiceJet of India. For connections within the USA, code-sharing with jetBlue was concluded. In 2016 Emirates Airline got its hundredth A380 and daring orders for this big Airbus were a burden, to be replaced by A350XWB-900 and B.787-9 orders. And the Dubai World-Central hub project was interrupted. Chairman Sheikh Al Maktoum informed about Emirates (quoted from Wikipedia.org) that “it took $2 billion in equity from the Dubai government. The A380 orders were reduced, the last one to be delivered in 2022, after which Airbus will cease production of the A380.” Surprisingly, Emirates started the longest non-stop route Dubai – Auckland with the A380. Sadly, Emirates boss Tim Clark envisioned to load passengers into a future version without windows, so reported by focus.de in 2022, quoting Flight Global: “I don’t want windows.”
Etihad left Jet Airways, Air Berlin, Niki and Alitalia, changed into ITA The ambitions of Etihad Airways, based at Abu Dhabi, were courageous in a different way. This national airline of the United Arab Emirates under Sheikh Khalifa, son of Sheikh Zayed, started in 2003. Then its chairman became Hamed bin Zayed. In 2006 Abu Dhabi withdrew from Gulf Air. In 2015 CEO James Hogan declared: “Etihad Airways has received investment from its shareholder, the Government of Abu Dhabi, in the form of equity capital and shareholder loans (…). The airline had to get into profitability within a decade (…). Because we have satisfied those conditions, because we have grown more quickly and more successfully than our initial targets, our shareholder has invested further” (Khaleej Times, March27, 2015). In 2013 seven participations of Etihad were listed, comprising Air Berlin, Air Seychelles, Virgin Australia, Jet Airways, Aer Lingus, JAT and Darwin Airline of Switzerland. In 2013 Etihad acquired a 49% stake in JAT Airways, in 2014 renamed Air Serbia, and then the state reduced Etihad’s share to 18%. When South African Airways, separated from the collapsed SAir Group, had amassed losses, hope for rescue by Etihad was reported (by B.I. Hengi) – in vain, and in spring 2020 South African Airways filed for bankruptcy protection, in Sept 2020 flights were stopped, resumed in 2021 with a reduced fleet. Etihad has started code-sharing with Star Alliance members, also Aegean Airlines, which took possession of scaled-down Olympic, and an Etihad Greece label was mysteriously mentioned by the Athens ‘2board’ magazine. Olympic Air had been saved in 2009 by the Marfin Investment Group, “in which UAE-based Dubai Group has a minority stake” (as the World Airline Directory 2010 reported it). Former Olympic Air directors founded in 2005 the completely independent Sky Express, which added in 2020 to its regionals the Airbus A320neo for international flights. In 2017 Etihad’s Darwin share was sold to Adria Airways of Slovenia, which was stopped in Sept 2019. A new Air Slovenia was planned by Solinair (according to LJ, Oct 2020). Etihad founded in cooperation with Air Arabia of Sharjah a low-cost Air Arabia Abu Dhabi. In May 2021 it was announced that Etihad Airways sells its 40% stake in Air Seychelles back to the government. When the national Garuda Indonesia has filed for insolvency protection in the USA and codesharing with Etihad was extended (reported by aerotelegraph.com in 2023), hope for help emerged. Jet Airways of India, entered by Etihad with 24% in 2013, had acquired Air Sahara in 2007. Jet Airways stopped its low-cost subsidiary and concentrated on standard services within the Etihad combine, which held a 24% stake. But a debt of $1 billion for Jet Airways in 2018 was assumed, BBC (April12, 2019) published that “Jet Airways halts all international flights”, Etihad stopped subsidies and Jet Airways became insolvent. And it was reported (by faz.net) in May 2019 that Jet Airways’ founder Naresh Goyal together with his wife were arrested when they had boarded already an Emirates plane for a flight to London. Nevertheless it was stated that Jet Airways will resume flights in 2022 after creditors improved a bid. In 2011 Air Berlin (see the chapter Charter Pioneers) was participated by Etihad. Having acquired a c. 30% share, a reduction in subsidiaries Niki and Belair was demanded. Renowned LTU had been acquired in 2007. In 2016 Der Spiegel (no.15) published Niki Lauda’s statement that Air Berlin has made losses of 300 million euro per annum. Belair was dissolved and Air Berlin had to give away its Izair shares in Pegasus. In 2017 it was reported that TUI and Etihad terminated talks about an Austrian joint venture between Niki and TUIfly. In August 2017 Air Berlin was declared insolvent and re-organization had to be subsidized by German KfW bank. Also interest by Condor of the indebted Thomas Cook group was assumed (by SZ in 2017). But soon it reported that Air Berlin pilots declared “illness” and the end of Air Berlin became inevitable. For subsidiary Niki, IAG was promised the contract, in January 2018 changed to Niki’s founder Niki Lauda. His Lauda Motion acquired it and Ryanair entered Laudamotion. Honored Niki Lauda died in 2019, when the LAUDA label was still present – and Ryanair transferred it to Malta as Lauda Europe, however showing the Ryanair colors. Most daring: Etihad had concluded in 2014 a substantial shareholding in Alitalia. LJ (Sept 2014) disclosed the dirt-cheap price: Etihad pays 387 million euro for its 49% stake, other 60 million for the LHR slots and 112 million for the frequent-flyer program. Wikipedia reported that six years before, loss-making Alitalia was declared insolvent and an investor consortium CAI has bought it at a much higher price of $1.33 billion. When Etihad entered, Alitalia’s fleet size was to contain 107 planes, and low-cost subsidiary Air One had to be abandoned. But in 2017 LJ stated a loss of $2.5 billion for the Etihad group, “disliked by the Sheikh” and James Hogan soon was dismissed. Financial Times (Aug02, 2017) reported: “Alitalia has been run by three commissioners since it collapsed in May, bringing 3 years of investment (…) to a bitter end.” The report pointed out: “The Italian government is hoping to avoid the break up of Alitalia” and informed that commissioners “have received non-binding offers from at least 10 carriers.” In Jan 2018 an offer by Delta and Air France was reported, but temporarily also Lufthansa refuted. Neue Zurcher Zeitung reported that since May 2017 Alitalia “is flying thanks to a provisional credit of 900 million euro by the government”, estimating also in 2018 losses of 500 million. Nationalization was favored and state-controlled Italian railway FS has made an offer, in vain. For Alitalia, in 2017 excluded from the Etihad group, 1.7 billion euro losses during eight months of coronavirus crisis were reported, whereupon nationalization with 3 billion euro was concluded by the government of Italy (so reported by To Vima, Oct11, 2020). The EU agreed to save Alitalia on condition of reducing the fleet to 70 planes. And then the proposal of a label ITAliana was published. On Oct14, 2021 the last official Alitalia flight started from Sardinia to Rome. The new state-owned ITA Airways or Italia Trasporto Aereo had to resume services. It was announced (via internazionale.it): “Il 15 ottobre 2021 partiranno I primi voli della ita.” ITA under chairman Alfredo Altavilla began with 52 planes (according to aero.de). Alitalia’s AZ code was maintained. An interest of Lufthansa to enter ITA with up to 40% was reported (by aerotelegraph.com), rivaled by IAG. Lufthansa’s interest was described being opposed by Air France-KLM. It should be financed by MSC (according to handelsblatt.com, May 2022). MSC is the Mediterranean Shipping Co., founded by Gianluigi Aponte in 1970, then registered with Switzerland, the country of his wife. According to wikipedia.org (Nov 2021): “The Alitalia brand … was purchased to be used in any future marketing operations and also to prevent it from being taken over by competing airlines.” For Oct15, 2021 a fleet consisting of ex-Alitalia Airbus A319, A320 and A330-200 was reported, and in 2022 also the A350-900. Already in Dec 2021 an A320 was the first to appear with the new ITA livery. And styling should be continued by Walter de Silva, the renowned motorcar designer. On 31Aug 2022 it was reported (by aero.de) that the Italian government considered an offer by the US consortium Certares with Delta and Air France-KLM. But then the new Italian government under Giorgia Meloni did not believe in Certares. And in Nov 2022 (according to airliners.de) MSC abandoned interest in loss-making ITA. Planes with full Alitalia livery did still fly and hope of a majority by Lufthansa emerged, together with Italian railway FS. But Lufthansa did not target a majority, but entering ITA under condition that it later would join Star Alliance. Cooperation with FS was proposed, similar to Lufthansa’s cooperation with Deutsche Bahn. In Jan 2023 Lufthansa’s offer to enter with a 40% shareholding was reported, later to be upgraded. Completion of the contract in spring 2023 has become expected. And (so reported by bild.de) it was envisioned to revive the traditional label Alitalia.
Qatar Qatar Airways was founded in 1993 on initiative of the Emir as the flag carrier of Qatar, starting in 1994, owned by the al-Thani royal family. It was relaunched in 1997 with private finance (according to Jane’s Airline Guide) and it was reported (by Flight Intl, 2010), 50% being owned by the government, which had withdrawn from Gulf Air in 2002. Concerning Qatar’s boss al-Baker’s dream of merging with Emirates, its boss Clark considered such a “mightiest international airlines group” (according to the interview with SZ of 2012) cautiously creating a shock for the branch. Qatar Airways introduced the B.787, the competitor A350 and the A380. In 2014 it became fully owned by the government. Qatar participated in founding Al Maha Airways in Saudi Arabia, then cancelled. It acquired a 10% share in the IAG Group and in 2016 it was busy to take a 49% share in Meridiana, coming true officially in 2017. The World Airlines Directory (2010) had described Meridiana of 1991 as “Italy’s largest privately owned airline, (having been) formed as Alisarda by the Aga Khan in March 1963” (see the chapter Charter Pioneers). In 2017 Financial Times (March09) reported that “Qatar was waiting for an approach from the Moroccan side about a potential investment” in Royal Air Maroc. Qatar Airways chief executive Akbar al-Baker has outlined plans to launch a new airline in the fast-growing Indian market. In 2016 Qatar Airways bought also a 10% share in the LATAM group and then it appeared with A350s in LATAM livery with Qatar registration. A shock came on Whitsun 2017 and the Guardian Weekly (June16) reported “a blockade of Qatar by its Gulf Arab neighbors (…) has forced planes arriving in Doha to enter via a narrow corridor over Iran.” But when in March 2020 many airlines reduced traffic, Qatar planes still appeared in Europe. When Alitalia went into administration in 2017, it was announced to rename Meridiana into Air Italy. In 2018 it appeared with a strictly ‘non-Italian’ color scheme, it proclaimed flights from Qatar to India and it was watched at New York JFK. In Feb 2020 the Alisarda Group and Qatar decided to dissolve money-losing Air Italy. In 2020 Qatar Airways (according to Wikipedia) bought a 49% stake in Rwandair, it abandoned A380 flights, it increased its share in the IAG to 25% and it held a 10% stake in Cathay Pacific.
LATAM In Brazil the glory of the once-dominating VARIG ended after 2007, when GOL (see the chapter low-cost pioneers) took over the remains, and in 2009 Varig flights vanished. The largest airline has become TAM Linhas Aereas, created in 2000 out of predecessors, going back to 1976. In 1996 LAP of Paraguay was swallowed. In 2002 cooperation of TAM with VARIG started, but an evaluated fusion did not come true (info by B.I. Hengi). In 2004 LAN Airlines has become the official name of Lan Chile, privatized in 1989 under Pinochet. After end of the dictatorship it took over Ladeco and it built up subsidiaries LAN Peru, LAN Ecuador, then LAN Argentina and LAN Colombia, the former Aires. Then Air Class was listed (via Wikipedia) as LAN Uruguay. In 2012 the sensation was incorporating LAN Airlines and TAM into the LATAM Airlines Group, preserving the separate brand names. The holding was registered as LATAM and in Dec 2015 LATAM was listed (by IATA) occupying already rank 14 global by RPK and in 2016 it appeared as LATAM Airlines, the largest of Latin America, with a fleet of c.500 airliners. In 2019 Delta Air Lines entered LATAM with a 20% share and LATAM left the Oneworld alliance. In 2020 help by Qatar Airways was reported. But in May 2020 (according to Forbes) “LATAM filed for chapter 11 bankruptcy in New York with aircraft related debt at $2.2bn (…) LATAM plans to continue flying…” Financial Times (19 Oct 2020) reminded that “the biggest, LATAM, as well as Colombia’s Avianca and Aeromexico, have all filed for Chapter 11 protection (…). Some have fared even worse: LATAM’s Argentina operations, as well as TAME in Ecuador and Caribbean airline Liat, have ceased operations altogether.” And competitor Aerolineas Argentinas finally was assumed to integrate its Austral completely. LATAM continued to operate normally.
Avianca and formerTACA Avianca is a successor of Colombia ‘s SCADTA of 1919, while the roots of TACA are going back to 1931. Avianca was saved in 2004 by Grupo Synergy of the Brazilian G. Efromovich, engaged in Oceanair and others. The Grupo Synergy comprised in 2008 Avianca with subsidiaries, e.g. SAM, AeroGal, becoming Avianca Ecuador, and OceanAir, renamed Avianca Brazil. In 2009 a strategic merger was announced between Grupo Synergy and Grupo TACA, completed in 2013. The group Avianca Holdings comprised Avianca with subsidiaries, Aviateca, TACA, TACA Peru, LACSA (then making room for TACA Costa Rica), TAMPA Cargo and Islena of Honduras. Former NICA was replaced. In 2013 traditional Avianca was chosen as the common brand of its subsidiaries. An interest of Synergy Aerospace in entering traditional TAP Portugal was a rumor years ago. In 2017 the regional Aeromar of Mexico was entered and in 2018 Avianca Argentina took planes from Avianca Brazil, which was not helped by Azul. The remains were assumed (by LJ, May 2019) to be taken over by JetSmart of Indigo Partners. In July 2019 it was reported that Avianca Brazil and Avianca Argentina have stopped services. Via Internet has come the information (in May 2019) that United entered Avianca with a loan and that Avianca’s shareholders “replaced Mr. Efromovich as chairman with Kingsland owner Roberto Kriete.” On Oct07, 2019 the news were provided by Avianca Holdings that “United Airlines and Kingsland Holdings have agreed to provide $250 million of financing to Avianca for a four-year term …” Avianca Holdings decided (according to LJ, May 2020) to dissolve Avianca Peru with hope of re-organizing other subsidiaries. Via Internet came the news in 2020: “Avianca Holdings and some of its subsidiaries ‘voluntarily filed’ for chapter 11… in the Bankruptcy Court of the S.D. of New York in the U.S., the airline announced on May10.” Avianca informed that it will merge with Sky Airline of Chile to create a big low-cost carrier by 2022. In the same year it was reported (by aerotelegraph.com) that Avianca together with GOL planned a new Abra Group, subject to permission. JetBlue, Azul, TAP It was not a member of a mega group which concluded to enter TAP, the loss-making Portuguese state carrier, which had started in 1946 and absorbed regional Portugalia in 2006, while White (ex Yes) was given away. David Neeleman, founder of the American low-cost carrier JetBlue and in 2020 Breeze Airways, had started Brazil’s low-cost airline Azul in 2008 – and in 2015 the Atlantic Gateway Consortium around Neeleman was allowed to enter TAP with a 61% majority stake. But in 2016, Portuguese socialists limited the consortium’s share cautiously to 45%. A Chinese HNA Group’s share in Atlantic Gateway shocked – but in 2018 HNA sold its share in Azul. The Portuguese state saved TAP, taking a 72.5% share (according to LJ, July 2020). “In Dec 2020 the Portuguese government unveiled a rescue package of $4.1 billion” (according to wikipedia.org). And Neeleman was ‘out’. But then it became reported that JetBlue planned to start services from the USA to London in 2021 with the A321LR. Aeroflot In military superpower Russia the national icon was and is Aeroflot. After the Soviet Union ended, Aeroflot Soviet Airlines was split up in 1992, Aeroflot Russian International Airlines became in that year the title of the flag carrier of the new Russian Federation, 51% state-owned. About Boris Berezovsky, one of the new oligarchs, Newsweek (July31, 2000) wrote: “Between 1995 and 1997 he either acquired or gained control of assets like ORT, Sibneft … and Aeroflot.” The flag carrier’s CEO around the turn of the century was Valery Okulov, a brother-in-law of Yeltzin’s daughter Tatyana, according to press reports. Berezovsky had boastet that seven oligarchs, private businessmen, controlled the Russian economy. But then he was fired by Putin and the tables were turned. In 2000 Aeroflot changed name into Aeroflot Russian Airlines. Flight Intl (March23, 2004) listed its owners: Russian government 51%, National Reserve Bank 30%, employees and others 19%. “According to the state news agency, seven men from Putin’s inner circle control state-owned companies that directly account for 40% of Russia’s gross domestic product. They include Deputy Prime Minister Dmitri Medvedev … and Igor Sechin, head of Rosneft. Another deputy head, Vladislav Surkov, chairs Transnefteprodukt … while presidential aide Viktor Ivanov chairs national carrier Aeroflot, as well as the main air-defense contractor Almaz-Antel”, so reported by Newsweek (Oct23, 2006). Still in 2008 a share of 30% by Alexander Lebedev of the National Reserve Corporation (NRC) was reported, holding 44% in Ilyushin Finance. In 2010 Flight Intl described Aeoflot under chairman Viktor Ivanov, government-owned by 51.7%, with a share of 15% by NRC, 12% by the Bank of Russia and c.19% by employees and others. As subsidiaries were listed Donavia (having succeeded the North Caucasian CAD, which had become Aeroflot Don in 2000) and Nordavia (the former Aeroflot Nord), the latter then sold to the Norilsk group. Aeroflot has got “Western” planes from Boeing and Airbus, the newest being the B.787 and the A350.
A matter of its own is Rossiya, emerged in 1993 out of the Aeroflot division of government flights. This GTK Rossiya added in 1998 passenger charter flights, later also scheduled services. Even flights from Kosovo to Liepaja in Latvia were reported. The other predecessor of Rossiya is the Aeroflot division of Leningrad, rationalized and appearing with the Pulkovo label in 1996, operating also for Rossiya (so reported by B.I. Hengi). Rossiya Russian Airlines was described (by JP in 2013) as Russia’s third-largest airline. Ownership by Aeroflot Finance since Nov 2011 was reported (via Wikipedia, 2014). Government shares in five other airlines, including Vladivostok Air (in 1992 emerged out of Far Eastern CAD), were taken over by Rosavia, intended to comprise 8 airlines, among others Rossiya and Atlant-Soyuz, the official carrier of Moscow. However, as Moscow’s lord mayor Lushkov had to retreat, Atlant-Soyuz of 1993 changed name into Moscow Airlines, bankrupt in 2011. Rossiya was taken over by Aeroflot in 2015, announced to absorb Donavia and Orenair under a new Rossiya brand. Orenair succeeded in 2008 Orenburg Airlines, emerged in 1992 out of Aeroflot Orenburg. Vladivostok Air was reported (by World Airlines Directory, 2010) having taken over regional Khakasia Airlines in 2003. “In Feb 2010 it was announced that Vladivostok Air would be one of the Rostekhnologii-owned airlines to be integrated into flag carrier Aeroflot (…)”. In 2013 it was reported that Vladivostok Air should be transferred to SAT of Sakhalin, but it continued. Aeroflot Far East successor was reported being TAIGA, but in 2013 it was founded as Aurora, out of SAT and Vladivostok Air (according to B.I. Hengi). Wikipedia listed in 2015 as Aeroflot subsidiaries Rossiya, Aurora, Donavia, Orenair and Pobeda, which had replaced low-cost Dobrolet in 2014. Aurora appeared in Beijing, Seoul and Tokyo. In Oct 2020 it was reported (by LJ) that Aeroflot would transfer its 51% share in Aurora to the government of Sakhalin. President Vladimir Putin has made an Aeroflot advance an item of his politics. A Russian press release was quoted (by LJ, Sep 2015), stating: “On occasion of an inter-ministerial commission’s meeting concerning air-traffic, deputy prime minister Igor Shuvalov proposed consolidation of Transaero within the Aeroflot group. It’s in the interest of further development of civil aviation and creation of one among world’s largest air traffic groups.” The story of Aeroflot’s long-term competitor Transaero is remarkable, having been prepared in 1990 still in the epoch of Gorbachev. The joint-stock company Transaero started in 1991 and it became Russia’s second-largest airline by RPK. Transaero was courageous with its Boeing 747s and the disputes about the A380 order. In 1994 Air&Space has stated: “Transaero’s president is 27-year-old Alexander Pleshakov, son of Tatyana Anodina, chairwoman of the powerful Interstate Aviation Committee, which certifies all new carriers in the CIS.” After a decline of tourism from Russia to foreign resorts, Transaero thanked the Russian state for financial assistance. And then LJ informed: “Surprisingly it was reported on Sept01, 2015 that Aeroflot would take 75% plus one share in Transaero at a symbolic price of 1 ruble (…). The next day a statement was made by Transaero CEO Alexandr Pleshakov of the fact that the takeover was not initiated by Transaero. His wife, the long-standing director Olga Pleshakova, was dismissed immediately. In 2015 Aeroflot dropped the offer and Transaero services were stopped on Oct02. Transaero with an assumed debt burden of $3.8 billion went bankrupt – and its B.747s were more and more taken over by Aeroflot’s Rossiya. For Transaero’s history, for S7 Airlines (the former Siberia Airlines) and for other competitors, compare the chapter Open Skies. In Feb 2022 Putin started his all-out war on Ukraine, hitting airlines, mainly Aeroflot, and tourism, whereupon the touristic Ifly changed to regular traffic Moscow-Siberia. For all the troubles see the chapter ‘Conflicts and Strategy’. On account of sanctions, Aeroflot (according to aerotelegraph.com in 2023) envisioned to replace foreign-built planes by the Tu-214, the successor of the Tu-204, and the Irkut MS-21.  Air China, B.777, Munich 2019 (WS) Air China and Cathay Pacific, China Eastern, China Southern State-owned CAAC merged in 1988 its 10 subsidiary carriers into 3 large groups around Air China, China Eastern and China Southern, the majority stakes being held by three different state-controlled holdings. They were listed e.g. in 2010 (by the World Airlines Directory) as China National Aviation Holding Co. (CNAC), China Eastern Air Holding and China Southern Air Holding. CNAC was reported holding c.58% in Air China, which held shares in Shenzhen Airlines, in Shandong Airlines, and it acquired China Southwest. “Air China formed with China Southwest Airlines and China National Aviation Corp the Air China Group. Until 2005 these three companies were merged into the Air China Ltd, founded in 2004, and they were handled only as Air China” (so reported by B.I. Hengi). As subsidiaries of Air China were listed (in 2015) Air China Cargo, Shenzhen Airlines (51%), Shandong Airlines (51%), Air Macau (67%) and others. Most important were Shenzhen and Shandong Airlines, both towards 2015 leading to a fleet of more than 800 jet aircraft (plus orders) for Air China and these subsidiaries. In 2011 Tibet Airlines, participated by Air China with a 31% share, started Chinese domestic operations to its main base Lhasa with an A319 fleet. Politically remarkable has become the shareholding in Air Macau and 30% in Cathay Pacific, the airlines of these special administrative regions. Famous Cathay Pacific of Hong Kong had expanded in 1948 when the Swire Group entered with a 45% stake and its partner Australian National Airlines with 35% (later Australian National was acquired by Ansett, which collapsed in 2002). In 1959 Cathay Pacific took over Hong Kong Airways, which had been formed by BOAC. In order to avoid rivalry after takeover of the former British colony in 1997, shares in Cathay Pacific were transferred in 1996 to Air China. In the first decade of the 21st century, Air China held a 30% stake in Cathay Pacific, which in 2004 acquired a minority stake in Air China, later reported (by B.I. Hengi) with 29%. In 1990 Cathay Pacific has acquired a share in Dragonair, founded in 1985, becoming a wholly-owned subsidiary in 2006, but in 2020 that Cathay Dragon was stopped. Cathay Pacific was put at a disadvantage when in 2019 protests hit Hong Kong’s airport, whereupon state-run Global Times stated: “We will never accept that Cathay Pacific, as an airline with a UK background, will tolerate the union’s organization of political activities.” The New York Times (Sept13, 2019) informed that “Beijing has threatened to close off Chinese airspace to Cathay unless it contains its employees.” And “the company named Augustus Tang, a long-time Cathay and Swire employee, as its new chief executive, replacing Rupert Hogg…” The former Portuguese colony Macau was taken over in 1999. Air Macau had started in 1995. And in 2009 CNAC became the main owner with c.80%. Despite the coronavirus pandemic, Air China planes could have been watched in Europe and in March 2020 the New York Times had reported traffic of Chinese flying home “on flights that can cost $25,000.” But in May, Financial Times informed that “flights have been drastically limited, making it nearly impossible for citizens to return.” For Cathay Pacific a loss in traffic of 99% was reported. In 2020 Financial Times (June13) informed: “The Hong Kong government is to take a stake in Cathay Pacific (…) as part of a HK$39bn ($5bn) rescue plan.” With this recapitalization, the three major shareholders’ stakes were announced to fall for Swire Pacific to 42%, Air China to 28% and Qatar Airways to 9.4%.
China Eastern Airlines was formed as one of CAAC’s successors in Dec 1987. Having acquired the inefficient China General Aviation in 1997, Air Great Wall in 2001, China Yunnan and China Northwest in 2003, China Eastern was described (via Wikipedia, 2015) being China’s second-largest airline (behind China Southern) by passenger numbers, with a fleet of 377 aircraft plus 217 orders. Wuhan Airlines of 1991 was merged into China Eastern (according to R.E.G. Davies). In 2006 the news of “a possible sale up to 20% of its stake to foreign investors, including Singapore Airlines, Emirates and Japan Airlines” was reported, stating: “Singapore’s pending entry into the Chinese market prompted Cathay Pacific to attempt to block the deal (…) together with Air China (which already held an 11% stake in China Eastern)”. The Singapore deal did not come true in 2008. Shanghai Airlines was founded in 1985, but not before 1988 it was allowed to show this label (according to B.I. Hengi). In 2004 it acquired 80% shares in China United Airlines, the former military transport division. In 2010 Shanghai Airlines became a wholly-owned subsidiary of Shanghai-based China Eastern, maintaining its brand identity. China Eastern’s c.10% stake in Air France-KLM became reported. In 2015 Hong Kong authorities continued to refuse traffic rights to Jetstar Hong Kong, for being controlled not only by its Australian investors, but also by China Eastern, which later was reported being c.62% state-owned. In 2022 China Eastern Airlines was the first to get the Comac CR919, a narrowbody jetliner for 164 passengers. Hope emerged for this airliner of Chinese production, but its two engines are coming initially from CFM International. It is not the widebody twin-engined CRAIC CR929, tested in 2022, a Russian-Chinese development, suffering uncertainty due to Putin’s war. China Southern Airlines started in 1989 as one of the CAAC successors. Having absorbed Zhongyuan Airlines in 2000, China Northern Airlines in 2003, also subsidiaries and China Xinjiang Airlines (of Urumqi), and entering Guizhou Airlines, Guangxi Airlines, Xiamen Airlines, Chongqing Airlines, Shantou Airlines and Sichuan Airlines, China Southern Airlines has become Asia’s largest by RPK in 2013. Xiamen Airlines of 1992, then with a fleet of more than 200 jet aircraft, and Sichuan Airlines of 1988 had become the most important subsidiaries. China Southern’s fleet was reported in 2015 with 488 aircraft (freighters included) plus 44 orders, at that time being China’s only carrier having ordered the Airbus A380. But with the crisis it grounded the giant at least temporarily. Together with Xiamen and Sichuan Airlines, its fleet plus orders surpassed towards 2015 the number of 800 jet aircraft. After China Southern left SkyTeam in Jan 2020 (according to LJ), cooperation with American Airlines and British Airways was to be intensified.
HNA Group of China The HNA Group has got its fame as a courageous private investor, founded by Cheng Feng, built up with air traffic. Hainan Provincial Airlines started in 1993 as a joint-stock air transport enterprise. Rebranded in 1996 as Hainan Airlines, it has become China’s fourth-largest airline, ranking ahead of Cathay Pacific. In 2003 the HNA Group started the global cargo airline Yangtze River Express, which in 2006 was entered by China Airlines of Taiwan with a 25% stake. In 2006 HNA participated in Hongkong Airlines. In late 2007 Grand China Airlines Holding (GCAHC) was heralded, held by the Hainan province and HNA Group. Flight Intl honored co-founder Wang Jian. CAH has planned to transfer HNA members Hainan Airlines, Shanxi Airlines, Chang’an Airlines and China Xinhua Airlines into a Grand China Air. Via Wikipedia it was reported towards 2014: “In addition, HNA Group also invests in other airlines, including Beijing Capital Airlines, Lucky Air, Zest Airways, Africa World Airlines (of Ghana, flying regionals), Tianjin Airlines, Yangtze River Express, Hong Kong Airlines, Hongkong Express Airways and Aigle Azur of France (not the historic Aigle Azur). Fuzhou Airlines is the latest subsidiary of HNA Group.” Urumqi Air must be added, started in 2014. Zest Air had been “established as Asian Spirit, as an employee cooperative of Filipino nationals, most of whom formerly worked for Philippine Airlines” (World Airlines Directory 2010). Capital Airlines (the former Beijing Capital) added services to Europe. Yangtze River Express entered passenger services, in 2017 as Suparna Airlines. Hong Kong authorities have tried to limit the expansion of Hongkong Airlines, the successor of CR Airways, as a 45% stake has been acquired by the HNA Group. Since 2012 Hongkong Airlines reduced its international flights and daring A380 orders changed to A350. HNA’s low-cost subsidiaries HK Express, Lucky Air, Urumqi Air and West Air formed an alliance U-Fly. In 2016 HNA founded Guilin Airways, but a ‘Grand China’ label was rare, possibly there were obstacles? HNA participated in Virgin Australia, in Azul of David Neeleman in Brazil and, together with him, in Aigle Azur, which was stopped in 2019. A sale of the 23.7% stake in Azul was reported, but stakes in French Blue, HK Express and Virgin Australia were retained in 2018. Via Wikipedia were reported (around 2019) stakes in airlines outside China: Africa World Airlines, Azul Brazilian Airlines, a pending stake in Virgin Australia (13%) and some minority participations. In 2019 HNA Aviation sold full stake of HK Express to Cathay Pacific. After some transfers had failed, Flight Intl (Jan01, 2019) informed: “That in turn scuttled a private share placement, under which seven parties, including Singapore sovereign wealth fund Temasek Holdings, were to have taken a stake in China’s fourth-largest carrier.” A separation of Capital Airlines and Lucky Air was reported (by LJ) in 2019. “In February 2019 the HNA stake in Deutsche Bank sank to 6.3 percent… Rumors say that cadres of the communist party keep unpublished shares in HNA” (translated from de.m.wikipedia.org). Media asked, to whom belongs HNA and Bild (April08, 2018) answered: “The Chinese Cheng Feng (…) is flying with his Gulfstream private jet around the globe.” Financial Times (July13, 2018) mentioned a 15% shareholding by co-chairman Wang Jian, who suddenly died in France. And the headline stated: “Airbus holds on to HNA aircraft amid dispute over late payment.” In 2020 it was reported (by german.china.org.cn, March02) that the wide-spread speculations on help by the government of Hainan for the Hainan Airlines Group were confirmed by the company. But in Jan 2021 HNA Group declared bankruptcy. China’s president disliked to help billionaires. In Sept 2021 founder Cheng Feng and CEO Tan Xiandong were arrested (according to aljazeera.com) and “the world’s largest amount of corporate debt” was assumed. Help by Air China was rumored. Hainan Airlines restructuring plan “will see it merge with 11 smaller airlines (so reported by flightglobal.com), mentioning Fouzhou Airlines, Lucky Air, Air Changan, Guangxi and others. But in Dec 2021 the Liaoning Fangda Group (according to channelnewsasia.com) took control of its airline business, including Hainan Airlines. An uncertainty for air traffic around China became in 2022 the renewed threat of a war against Taiwan – see the chapter ‘Conflicts and Strategy’. Air India India has world’s second-largest population, but its state-owned Air India steadily has made losses, whereupon in late 2022 it was sold to Tata Son’s SPV, reportedly at $2.4 billion. It is the traditional enterprise, which had started already in 1932 its predecessor Tata Airlines. In early 2023 the intention of Air India was reported (by Jens Flottau in Sueddeutsche Zeitung) to order 470 planes from Airbus and Boeing for becoming an important airline global. By tata.com it was published in 2023: “Tata SIA Airlines, a joint venture between Tata Sons and Singapore Airlines, operates under the flagship brand name Vistara…”  Air India, A321, Dubai 2015 (WS) Outlook During the coronavirus crisis, it was stated in April 2021 (by statistica.com): “The loss in global commercial aviation profit is expected to reach over $118 billion.” Financial Times (March 27, 2021) has reported a debt load of $320bn for the largest airlines global, comprising $106bn for American, United and Delta in the USA, $51bn for Air France-KLM, Lufthansa and the IAG group in Europe and $162bn for the rest, China Southern, China Eastern and Air China being the leaders. It was proven that important airlines, like generally the providers of public transport, are dependent on law and government. And also Boeing and Airbus had to pin their hope on governmental help. Concerning the market in the USA, Airlines for America is a trade organization and its A4Ahomepage explained that “Airlines for America advocates on behalf of its members…”, listing the most important airlines of the USA, and Air Canada as an associate member. For Emirates Airline in 2021 a loss of $6bn and for Singapore Airlines of $4.3bn was reported (via samchui.com). For Thai Airways International, a bankruptcy reorganization had been concluded in Sept 2020 and the court’s approval to restructure a debt burden of $12.9bn in June 2021 was reported. In consideration of the pandemic problems, quantas.com informed (in July 2021): “All Qantas international flights, excluding certain flights between Australia and New Zealand, are currently suspended due to government restrictions.” But then Qantas restarted international long-distance flights and its A380 connected Los Angeles. South Korea’s flag carrier and Asiana concluded a fusion in 2021, allowed by the British CMA not before 2023. The category of low-cost has opened another way towards international groups, see the chapter Low-Cost Pioneers. When JetBlue in the USA was to buy Spirit Airlines in 2023, disputes were reported. Not a ‘mega’, but ambitious globally has become Indigo Partners, a private equity firm, co-founded in 2002 by airline veteran Bill Franke in the USA. It was reported (via Wikipedia.org in 2021) with a controlling interest in Frontier Airlines (USA) and in JetSmart (of South America) as well as holding stakes in Volaris (of Mexico), Wizz Air (reg. with Hungary), Wizz Air Abu Dhabi, Cebu Pacific (of the Philippines) and planning a Lynx in Canada. It has withdrawn its offer to buy Wow Air of Iceland and in Sept 2019 an interest in Condor had been rumored. With Indigo Partners, more airplanes of the Airbus A320 family were ordered, also the new long-range A321XLR. Indigo Partners is not identical with low-cost IndiGo of India, founded in 2006 by InterGlobe Enterprises. Air Asia Aviation, the leading low-cost group of south-eastern Asia, had expanded, but in Dec 2022 it was reported (by aerotelegraph.com) that Air Asia Japan had become insolvent, nevertheless an Air Asia Cambodia was founded. Air Asia India, named AIX Connect, came with Vistara into the Tata group. Another initiative is Air Arabia of Sharjah and its dynasty. Starting low-cost flights in 2003, it added Air Arabia Abu Dhabi, Egypt, Maroc, a short-lived Fly Yeti of Nepal and in 2022 a 49%-owned Fly Arna of Armenia, after predecessors Armavia of 2006 and Air Armenia of 2014 were stopped. The global market recovered ambitions emerged. In late 2022 it was reported that Saudi Arabia plans a new Riyadh Air or RIA in order to make Riyadh an intercontinental hub, while Saudi Arabian Airways or Saudia is based at Jeddah. The new King Salman International Airport at Riyadh became designed by architects Foster + Partners. And it should get 6 runways. Another project is the futuristic city of Neom on the Red Sea coast. Concerning Africa’s most populated country Nigeria, it was published in 2022 (via aerotelegraph.com) that its president Muhammadu Buhari announced a new national Nigeria Air, to be built up with help of Ethiopian Airlines, but in 2023 politics changed. With all the facts and possibilities, this chapter must be updated continually – and also the statistics of airports have changed.
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