European airlines scan the arrivals hall

Article Abstract:

Europe's two major airlines, British Airways and Lufthansa, prepare to compete against the cut-price airlines entering the market. EasyJet is one of the more successful of the up-and-coming airlines, with hopes to expand into Amsterdam and Athens, as well as add airports in Britain, including Stansted and Liverpool. One potential solution for the major airlines is to relinquish short-haul flights, which are not as profitable for them. In return, BA and Lufthansa may create affiliated short-haul, cut-price airlines specifically to fill the short-haul niche market they would be abandoning.

Intnl & Territorial Air Service, Easyjet Airline Plc, Market share, British Airways PLC, Deutsche Lufthansa AG

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Seasonal repentance

Article Abstract:

American Airlines will acquire a 1% stake in Iberia, and British Airways will acquire 9%, while a public flotation is planned for Iberia in summer 1999. Meanwhile, a stock offering from Air France was oversubscribed in Feb 1999. Both companies have been recovering after a period of problems with labor unions, losses, and criticisms of poor service. Iberia has restructured its Latin American investments and shut regional offices and unprofitable routes and reported a profit in 1996. There is concern, however, that both companies are increasing capacity when the industry cycle has peaked.

Iberia Lineas Aereas de Espana S.A., Air France KLM S.A.

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European airlines scan the arrivals hall

Article Abstract:

European airlines will likely face greater competition from upstart airlines over the next few years despite the difficulties that upstarts generally face. Efforts the larger airlines will make to head off the competition will include making alliances and creating separate low-cost airlines.

Europe, Deregulation

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