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Air France-KLM

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SUMMARY: Today the Dutch Safety Board came out with its investigation of the MH17 crash that killed 298 on board, mostly Dutch nationals and yes it was a SA-11 BUK that brought it down, most likely by Russian supported separatists in Eastern Ukraine. At the same time, German owned (Intro Aviation) and Irish based regional airline City Jet announces it will be the first ‘western’ European airline to operate the Russian Sukhoi SSJ-100 Superjet with a lease for 15 plus another 10 options starting next year. Very insensitive timing and a decision code sharing partners Air France and especially Dutch KLM will strongly object to. Normally no one buys anything “Made in Russia” ! they have no products of value to the west, so why buy or lease their SSJ-100 with all the risks attached to its operation ? when the E190/195 (E1/E2), CRJ-900/1000, MRJ, CS100 are far more competitive products, without the political, social, economic, public relations, customer perception and support risks, a business wants to minimize risk, with this aircraft an operator will increase business risk, as its a long 20 year commitment for an aircraft, so much can go wrong with your supplier in that time period. When EU/US/NATO-Russia relations are as bad as they are now, why does any airline think that European nationals will want to fly on a Russian airliner ? they won’t ! I hope that the citizens of Europe will and should boycott any airline operating the SSJ-100 the ‘only’ Russian airliner with any western appeal due to the fact it is now Putin’s baby, a show case with billions of Rubles being spent on it to sell it to the west through Russian state support for low prices, low lease rates and residual guarantees as Russia “hopes” it will ‘open’ doors for the eventual Irkut MC-21 narrow body airliner in the future. Air France and KLM should find a new regional partner, because their brand cannot be on a Russian airliner, that would be a PR disaster and they will loose customers doing so. In fact NO major western airline should accept the SSJ-100 on any ACMI deal either, this ‘white tail’ flying is big business and City Jet is now going to fly CRJ900’s for SAS, and Swedes should have lots of questions for City Jet as well. Has anyone noticed that the ‘Cold War’ is on again ? EU/US economic sanctions are in place on Russian individuals and companies (inc. United Aircraft Corporation) ? Russia for sure had a hand in the downing of MH17 ? Russia annexed its 4th territory (Crimea) last year ? Russia is talking and planning the possibility of ‘tactical nuclear’ warfare ? Wake up Europe, say Nyet/NO to Russia and to City Jet and any other EU airline operating the Russian SSJ-100. IF Russians want to fly on Russian airliners that is fine, they have to, but Europeans don’t have to, we have much better choices with Embraer, MRJ and Bombardier. Hopefully new economic sanctions over the MH17 downing will be aimed at the Russian civilian aerospace industry, then any operator of Russian aircraft will rightfully have huge problems. But right now we need Air France and especially Dutch KLM along with SAS to openly say something to City Jet about its poor aircraft choice, or many of their customers will take their business elsewhere, Europeans need to send a message to Russia. EU consumers have a choice NOT to fly on a Russian airliner, no need for it, and no need to support an aggressive expansionist Russia.

Irish regional airline City Jet has announced it will lease 15 Sukhoi Superjet airlines (SSJ-100) and has options on a further 10 to replace its 18 Avro RJ85 in 2016 and 2017 to become the first ‘western’ European airline to do so, hopefully its code share partners AF-KLM and SAS will have something to say … Continue reading

ABSTRACT: IAG (International Airline Group) acquires Ireland’s Aer Lingus and gains 23 valuable slots at Heathrow, while oneworld partner Qatar Airways buys 10% of IAG, Europe’s highly fragmented airline industry with 200+ airline groups where the top 5 airlines by traffic have a 46% market share compared to 87% in the highly consolidated and concentrated US market, and a new stage of European consolidations will soon begin, as state aid is all but gone now, and already in 2015 both Cyprus Airways and EuroLOT are shut down, Lufthansa Group and Air France-KLM Group both struggle with sustainable profitability and many of the remaining small carriers are waiting for a “white knight” before they go bankrupt, meanwhile most of the recent European airline acquisitions have been from outside of Europe, the industry is changing, and many airline bankruptcies are expected as there are no more “white knights” around like Etihad Airways to rescue the weak and struggling airlines.

The Irish national carrier, Aer Lingus is being acquired by IAG (International Airline Group, LSE:IAG), the 6th largest airline group in the world with revenue of $US 24.7 B (billion) and the parent of British Airways, Spain’s Iberia and LCC Vueling, valuing the airline at Euro 1.36 billion (+/- $US 1.53 billion). Under current CEO … Continue reading