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Airlines Worldwide - March 2015

This report provides an update and outlook concerning trends in the international air transport industry. Airport relations, profitability, as well as trends concerning distribution, fleet development of the major airlines, frequent-flyer programmes and cabin design, are just some of the issues treated in detail in the report. In the conclusion, the report evaluates the possibility of lifestyle branding for airlines and takes a look at the future design of aircraft.

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Table of contents

  1. Introduction

    • Key Findings

      • Data Sources

        • Abbreviations

          • Issues in the Market

            • Airport relations
              • Competition with rail and road
                • Profitability
                  • Ancillary revenues
                    • Regulation
                      • Security
                      • Global Summary

                          • Demographic trends
                            • Figure 1: Projected increase in global population by age segment, between 2005 and 2030
                            • Figure 2: Worldwide population distribution by age cohort, 2013 and 2050
                          • Demographic projections by major country market
                            • Figure 3: Projected population decline in selected countries (m), between 2006 and 2030
                            • Figure 4: Worldwide population distribution by age cohort (in %) in selected major countries, 2013 and 2050
                          • Economy
                            • Figure 5: Airline ROIC compared to the worldwide GDP growth rate, 1990-2014
                          • Growth forecast ratcheted down
                            • Figure 6: World Economic Outlook (WEO) forecasts (% change unless noted otherwise), January 2015
                          • Inflation outlook
                            • Figure 7: Inflation outlook for developed world economies (%), 2015
                          • Interest rates
                            • Figure 8: Outlook for short-term interest rates, 2015
                            • Figure 9: Outlook for long-term interest rates, 2015
                          • Currency rates
                            • Figure 10: Outlook exchange rates, 2015
                          • Outlook for spending on travel and tourism
                            • Figure 11: Forecasted growth in spending on leisure travel & tourism by region, 2014-20 (in 2013 US$m)
                            • Figure 12: Forecasted growth in spending on business travel by region, 2014-20 (in 2013 US$m)
                        • Trend in Air Travel and Airline Performance

                            • Figure 13: Trend in air travel in top 20 aviation markets, 2012-18
                          • New routes in 2014-15
                            • Figure 14: Top 15 countries for new airline routes in 2014
                          • New routes by airline
                            • Ryanair number 1 again
                              • Figure 15: Top 17 airlines for new routes in 2014
                            • Germanwings, GOL and Southwest Airlines start biggest new routes in 2014
                              • A new airline launched
                                • More LCCs coming for China
                                  • Airline performance
                                    • Figure 16: Airline performance: year-on-year change YTD November 2014 versus YTD November 2013
                                • Airline Ranking

                                    • Scheduled passenger-kilometres flown
                                      • International flights
                                        • Figure 17: Scheduled passenger-kilometres flown – international, 2013
                                      • Domestic flights
                                        • Figure 18: Scheduled passenger-kilometres flown – domestic, 2013
                                      • Total flights (international and domestic)
                                        • Figure 19: Scheduled passenger-kilometres flown total (international and domestic), 2013
                                      • Scheduled passengers carried
                                        • International flights
                                          • Figure 20: Scheduled passengers carried – international, 2013
                                        • Domestic flights
                                          • Figure 21: Scheduled passengers carried – domestic, 2013
                                        • Total flights (international and domestic)
                                          • Figure 22: Scheduled passengers carried – total (international and domestic), 2013
                                        • Scheduled freight-tonne-kilometres
                                          • International flights
                                            • Figure 23: Scheduled freight-tonne-kilometres – international, 2013
                                          • Domestic flights
                                            • Figure 24: Scheduled freight-tonne-kilometres – domestic, 2013
                                          • Total flights (international and domestic)
                                            • Figure 25: Scheduled freight-tonne-kilometres total (international and domestic), 2013
                                        • Airport Relations

                                            • Airport competition
                                              • Airlines face more competition than airports
                                                • Regulation of airport fees
                                                  • Airport entry
                                                    • Airport charges
                                                      • Figure 26: Proportion of European airports that raised, lowered or kept their fees constant, 2009-10*
                                                    • Multi-airport systems
                                                      • Figure 27: Average fares and yields from the 5 London commercial airports to Amsterdam and Geneva, 2012*
                                                    • Stand-off between Air France and Aéroports de Paris
                                                    • Competition with Rail and Road

                                                        • Figure 28: Breakeven points for rail and car versus air travel for a 3-hour trip door to door, 2014
                                                        • Figure 29: Breakeven points for HSR versus LCCs and full-service carriers from a cost point of view, 2014
                                                        • Figure 30: Recapitulation of market shares between rail and airlines in 10 important city pairs worldwide, 2014
                                                      • China
                                                        • Figure 31: Impact on airlines of the opening of HSR lines on key inter-urban routes from Beijing, 2010 and 2012
                                                      • Italy
                                                        • Figure 32: Rome-Milan train journey time and rail market share, 2007-15
                                                      • Japan
                                                        • Figure 33: Shares of passengers by different means of transport according to length of route, 2014
                                                      • Spain
                                                        • Airlines losing out on Barcelona-Madrid route
                                                          • Figure 34: Passengers travelling between Madrid and Barcelona by rail and air, in millions, 2003-13
                                                        • HSR competes with short-haul flights
                                                          • Figure 35: A comparison of travel times and speeds between airplanes and HST for key intercity routes in Spain, 2014
                                                        • Car travel competes with airlines in the US
                                                          • Figure 36: Thanksgiving holiday travellers by mode of transport, 2013-14
                                                        • Cost comparison
                                                          • Car travel gaining share over the years
                                                          • Profitability

                                                              • Figure 37: Growth of aviation compared to GDP, 1970-2012
                                                              • Figure 38: Number of direct city-pair services, 1980-2012
                                                            • Massive capital requirements but poor returns
                                                              • Figure 39: The number of new commercial aircraft required, 2011-31
                                                            • Airline sector suffers from fragmentation
                                                              • Figure 40: Return on invested capital (ROIC)*, by industry sector of the value chain, 2004-11
                                                            • Restrictive regulation
                                                              • Controlled costs but weaker pricing power
                                                                • Figure 41: The real price of air transport and real unit costs, 1970-2010*
                                                                • Figure 42: Trend in the per-barrel price of oil and jet fuel (kerosene) over the past 10 years, to end 2014
                                                                • Figure 43: Jet fuel price, 9 Jan 2015
                                                              • No windfall for travellers in the US
                                                                • Low fuel prices may delay new aircraft orders
                                                                  • Investors rewarded
                                                                    • Low fuel cost poses supply risk
                                                                      • Figure 44: Worldwide airline ancillary revenue, 2010-14
                                                                      • Figure 45: Key ancillary revenue components for a typical major US airline, 2013
                                                                      • Figure 46: Key ancillary revenue components for traditional airlines* outside the US, 2013
                                                                    • Successful LCCs depend on ancillary revenues
                                                                      • Spirit, the ancillary revenue champion
                                                                        • Ancillary revenue breakdown
                                                                          • Figure 47: Breakdown of Spirit’s ancillary revenue by type, 2011-13
                                                                        • Spirit a proven financial success
                                                                          • Figure 48: Comparison of pre-tax margins: Spirit versus major US airlines, LTM September 2014
                                                                      • Airline Regulation

                                                                          • Congress at fault too
                                                                            • Lack of action on NextGen
                                                                              • Restructuring the FAA
                                                                                • US systems out of date
                                                                                • Airline Security

                                                                                    • Drones near airports a threat
                                                                                    • Airline Alliances

                                                                                        • oneworld
                                                                                          • Membership
                                                                                            • Figure 49: Oneworld member airlines, 2015
                                                                                          • SriLankan Airlines, oneworld’s newest member
                                                                                            • Figure 50: SriLankan Airlines’ passenger totals and load factors, 2000-14*
                                                                                          • London Heathrow number 1 route for ASKs
                                                                                            • Figure 51: SriLankan Airlines’ 15 leading routes (ranked by ASKs), 2014
                                                                                          • SkyTeam
                                                                                            • Membership
                                                                                              • Strength in greater China
                                                                                                • Saudia is well positioned
                                                                                                  • Alitalia to be recapitalised
                                                                                                    • Two more marginal flag-carriers
                                                                                                      • Figure 52: SkyTeam member airlines, 2015
                                                                                                    • Star Alliance
                                                                                                      • Membership
                                                                                                        • Figure 53: Star Alliance member airlines, 2015
                                                                                                      • Best coverage for Africa
                                                                                                        • Strength in Asia
                                                                                                          • Air India the latest addition
                                                                                                            • FFP reciprocity
                                                                                                              • Special fares and business solutions
                                                                                                                • Air India’s fleet
                                                                                                                  • Strength in Europe too
                                                                                                                    • North America well covered
                                                                                                                    • Distribution

                                                                                                                        • LCCs succeed better at direct bookings
                                                                                                                          • GDSs still important
                                                                                                                            • The problem of merchandising ancillaries
                                                                                                                              • Airlines as retailers
                                                                                                                                • NDC – IATA’s plan for upgrading airline distribution
                                                                                                                                  • Impact on travel industry players
                                                                                                                                    • NDC pilot programme
                                                                                                                                      • Support from a variety of stakeholders
                                                                                                                                        • Plans for 2015
                                                                                                                                          • Amadeus launches ancillary service booking tool
                                                                                                                                            • Expedia introducing branded airfares in 2015
                                                                                                                                            • Alliances and LCCs

                                                                                                                                              • Future of Airline Distribution

                                                                                                                                                  • ‘Distribution’ to evolve into ‘commerce’
                                                                                                                                                    • Direct channels to gain share
                                                                                                                                                      • Big Data’s contribution
                                                                                                                                                        • Hidden-city ticketing an ongoing debate
                                                                                                                                                        • The Role of Social Media

                                                                                                                                                            • Figure 54: Social-media benchmarking of selected airlines, 2014
                                                                                                                                                          • Facebook
                                                                                                                                                            • Twitter
                                                                                                                                                              • Instagram
                                                                                                                                                                • YouTube
                                                                                                                                                                • Frequent-Flyer Programmes

                                                                                                                                                                    • FFPs as profit centres
                                                                                                                                                                      • Most miles issued are sold to partners
                                                                                                                                                                        • Managing redemptions
                                                                                                                                                                          • Most miles redemptions are for flights
                                                                                                                                                                            • FFP membership totals
                                                                                                                                                                              • Figure 55: Membership totals for airline FFPs worldwide, 2015
                                                                                                                                                                            • Frequent-flyer network demographics
                                                                                                                                                                              • Figure 56: Characteristics of North American frequent travellers, 2014
                                                                                                                                                                              • Figure 57: Characteristics of non-North American frequent travellers, 2014
                                                                                                                                                                            • The move from ‘miles’ to ‘spend’
                                                                                                                                                                              • Most points are earned on the ground
                                                                                                                                                                                • Southwest the first carrier to make the shift
                                                                                                                                                                                  • Figure 58: Points earned per fare class in the Rapid Rewards FFP, 2015
                                                                                                                                                                                • Delta the next to move
                                                                                                                                                                                  • United follows suit
                                                                                                                                                                                    • Figure 59: United's new tier conditions for its FFP, 2015 (all monetary amounts in US$)
                                                                                                                                                                                  • Summary and comparisons of FFPs
                                                                                                                                                                                    • Figure 60: Summary and comparison of selected airline FFPs, 2015
                                                                                                                                                                                  • JetPrivilege reciprocity
                                                                                                                                                                                    • Earning airline miles
                                                                                                                                                                                      • Figure 61: Singapore Airlines’ booking class fares, 2015
                                                                                                                                                                                    • Miles & More
                                                                                                                                                                                      • SAS’ Eurobonus
                                                                                                                                                                                        • China Southern Airlines Sky Pearl Club
                                                                                                                                                                                          • Hong Kong Airlines Fortune Wings Club
                                                                                                                                                                                            • Emirates Skywards
                                                                                                                                                                                              • SriLankan Airlines launched its own FFP
                                                                                                                                                                                                • Air miles versus points
                                                                                                                                                                                                  • Thai Airways International
                                                                                                                                                                                                    • Cathay Pacific’s Marco Polo Club
                                                                                                                                                                                                      • Asia Miles
                                                                                                                                                                                                        • Figure 62: Airlines participating in the Asia Miles loyalty scheme, 2015
                                                                                                                                                                                                      • Qantas Frequent Flyer
                                                                                                                                                                                                        • Flying Blue
                                                                                                                                                                                                          • Bangkok Airways’ FlyBonus
                                                                                                                                                                                                            • Qatar Airways
                                                                                                                                                                                                              • Duration of validity
                                                                                                                                                                                                                • Asiana Club
                                                                                                                                                                                                                  • EVA Air’s Evergreen Club
                                                                                                                                                                                                                    • Extra baggage allowance
                                                                                                                                                                                                                      • SriLankan FlySmiLes Baggage bonus programme
                                                                                                                                                                                                                        • Figure 63: FlySmiLes' Baggage bonus programme tier requirements, 2015
                                                                                                                                                                                                                      • FFPs for children
                                                                                                                                                                                                                        • Family plans
                                                                                                                                                                                                                          • Redeeming airline miles
                                                                                                                                                                                                                            • Blackout periods
                                                                                                                                                                                                                              • Korean Air SKYPASS
                                                                                                                                                                                                                                • LCC FFPs
                                                                                                                                                                                                                                  • AirAsia’s BIG loyalty programme
                                                                                                                                                                                                                                  • Passenger Use of Technology

                                                                                                                                                                                                                                      • Mobile devices
                                                                                                                                                                                                                                        • American Airlines’ app
                                                                                                                                                                                                                                          • In-flight Wi-Fi
                                                                                                                                                                                                                                            • Present state of in-flight services
                                                                                                                                                                                                                                              • People won’t pay for Wi-Fi though…
                                                                                                                                                                                                                                                • In-flight Wi-Fi offerings by airline
                                                                                                                                                                                                                                                  • Figure 64: Cost of in-flight Wi-Fi by selected airline, 2014
                                                                                                                                                                                                                                                • JetBlue a step ahead
                                                                                                                                                                                                                                                  • Sponsors have covered costs for 2015
                                                                                                                                                                                                                                                    • Implementation delays
                                                                                                                                                                                                                                                      • Gogo ups the ante
                                                                                                                                                                                                                                                        • Virgin Atlantic: Gogo's third partner for ultra-fast in-flight Internet
                                                                                                                                                                                                                                                          • Further boost from AT&T’s abandonment
                                                                                                                                                                                                                                                            • Gogo gets FCC approval of 2Ku satellite
                                                                                                                                                                                                                                                              • Other projects
                                                                                                                                                                                                                                                                • Need for airline investment
                                                                                                                                                                                                                                                                  • Multiple applications
                                                                                                                                                                                                                                                                  • Trend in Cabin Classes

                                                                                                                                                                                                                                                                      • Premium pays its way
                                                                                                                                                                                                                                                                        • Business travel rebounding
                                                                                                                                                                                                                                                                          • Figure 65: Traffic growth by route, November 2014
                                                                                                                                                                                                                                                                          • Figure 66: Premium traffic by route, October 2014
                                                                                                                                                                                                                                                                        • Corporates slowly loosening travel restrictions
                                                                                                                                                                                                                                                                          • Airlines invest in business class
                                                                                                                                                                                                                                                                            • Transfer services – an added perk
                                                                                                                                                                                                                                                                              • Serving the (top) 1%
                                                                                                                                                                                                                                                                                • Number of first-class seats rising
                                                                                                                                                                                                                                                                                  • Figure 67: Trend in first-class seats on flights worldwide, 2005-14
                                                                                                                                                                                                                                                                                • Divergence between east and west
                                                                                                                                                                                                                                                                                  • Figure 68: Trend in first-class seats on flights departing from European airports, 2005-14
                                                                                                                                                                                                                                                                                  • Figure 69: Trend in first-class seats on flights departing from Asian airports, 2005-14
                                                                                                                                                                                                                                                                                • Western carriers upgrade to compete
                                                                                                                                                                                                                                                                                  • Distinguishing first class
                                                                                                                                                                                                                                                                                    • Hotels in the sky
                                                                                                                                                                                                                                                                                      • ‘The Residence’
                                                                                                                                                                                                                                                                                        • Luxury on the ground too…
                                                                                                                                                                                                                                                                                          • Packing them in like sardines
                                                                                                                                                                                                                                                                                            • United ‘squeezes out’ 14 additional aircraft
                                                                                                                                                                                                                                                                                              • Premium-economy cabins rated
                                                                                                                                                                                                                                                                                                  • Figure 70: Ranking of the world’s best long-haul premium-economy cabins, 2015
                                                                                                                                                                                                                                                                                                • Customisation can cause delays
                                                                                                                                                                                                                                                                                                • Top 20 Country Markets

                                                                                                                                                                                                                                                                                                    • Australia
                                                                                                                                                                                                                                                                                                      • Market segmentation – domestic/international
                                                                                                                                                                                                                                                                                                        • Figure 71: Australia’s passenger airlines – market segmentation by volume, 2005-13*
                                                                                                                                                                                                                                                                                                      • Market shares of airlines
                                                                                                                                                                                                                                                                                                        • Figure 72: Passenger airline market share by passenger volume, 2012-13
                                                                                                                                                                                                                                                                                                      • Brazil
                                                                                                                                                                                                                                                                                                        • Market segmentation – domestic/international
                                                                                                                                                                                                                                                                                                          • Figure 73: Brazil’s passenger airlines – market segmentation by volume, 2005-13
                                                                                                                                                                                                                                                                                                        • Market shares of airlines
                                                                                                                                                                                                                                                                                                          • Figure 74: Passenger airline market share by passenger volume, 2010-13
                                                                                                                                                                                                                                                                                                          • Figure 75: Domestic passenger airline market share by passenger volume, 2010-13
                                                                                                                                                                                                                                                                                                          • Figure 76: International passenger airline market share by passenger volume, 2010-13
                                                                                                                                                                                                                                                                                                        • Canada
                                                                                                                                                                                                                                                                                                          • Market segmentation – domestic/international
                                                                                                                                                                                                                                                                                                            • Figure 77: Canada’s passenger airlines – market segmentation by volume, 2007-13
                                                                                                                                                                                                                                                                                                          • Market shares of airlines
                                                                                                                                                                                                                                                                                                            • Figure 78: Passenger airline market share by passenger volume, 2010-13
                                                                                                                                                                                                                                                                                                            • Figure 79: Domestic passenger airline market share by passenger volume, 2010-13
                                                                                                                                                                                                                                                                                                            • Figure 80: International passenger airline market share by passenger volume, 2010-13
                                                                                                                                                                                                                                                                                                          • China
                                                                                                                                                                                                                                                                                                            • Market segmentation – domestic/international
                                                                                                                                                                                                                                                                                                              • Figure 81: China’s passenger airlines – market segmentation by volume (m passengers), 2005-13
                                                                                                                                                                                                                                                                                                            • Market shares of airlines
                                                                                                                                                                                                                                                                                                              • Figure 82: Passenger airline market share by passenger volume, 2011-13
                                                                                                                                                                                                                                                                                                            • Colombia
                                                                                                                                                                                                                                                                                                              • Market segmentation – domestic/international
                                                                                                                                                                                                                                                                                                                • Figure 83: Colombia’s passenger airlines – market segmentation by volume, 2005-13
                                                                                                                                                                                                                                                                                                              • Market shares of airlines
                                                                                                                                                                                                                                                                                                                • Figure 84: Passenger airline market share by value, 2009-13
                                                                                                                                                                                                                                                                                                                • Figure 85: International passenger airlines – company market share* by value (%), 2009-13
                                                                                                                                                                                                                                                                                                                • Figure 86: Domestic passenger airlines – company market share by value (%), 2009-13
                                                                                                                                                                                                                                                                                                              • France
                                                                                                                                                                                                                                                                                                                • Market segmentation – domestic/international
                                                                                                                                                                                                                                                                                                                  • Figure 87: France’s passenger airlines – market segmentation by volume, 2005-13
                                                                                                                                                                                                                                                                                                                • Market shares of airlines
                                                                                                                                                                                                                                                                                                                  • Figure 88: Passenger airline market share by passenger volume, 2009-13
                                                                                                                                                                                                                                                                                                                • Germany
                                                                                                                                                                                                                                                                                                                  • Market segmentation – domestic/international
                                                                                                                                                                                                                                                                                                                    • Figure 89: Germany’s passenger airlines – market segmentation by volume, 2008-13
                                                                                                                                                                                                                                                                                                                  • Market shares of airlines
                                                                                                                                                                                                                                                                                                                    • Figure 90: Passenger airline market share by passenger volume, 2009-13
                                                                                                                                                                                                                                                                                                                  • India
                                                                                                                                                                                                                                                                                                                    • Market segmentation – domestic/international
                                                                                                                                                                                                                                                                                                                      • Figure 91: India’s passenger airlines – market segmentation by volume, 2008-13
                                                                                                                                                                                                                                                                                                                    • Market shares of airlines
                                                                                                                                                                                                                                                                                                                      • Figure 92: Passenger airline market share by passenger volume, 2010-13
                                                                                                                                                                                                                                                                                                                    • Indonesia
                                                                                                                                                                                                                                                                                                                      • Market segmentation – domestic/international
                                                                                                                                                                                                                                                                                                                        • Figure 93: Indonesia’s passenger airlines – market segmentation by volume, 2007-13
                                                                                                                                                                                                                                                                                                                      • Market shares of airlines
                                                                                                                                                                                                                                                                                                                        • Figure 94: International passenger airlines – company market share by passenger volume (%), 2011-13
                                                                                                                                                                                                                                                                                                                        • Figure 95: Domestic passenger airlines – company market share by passenger volume (%), 2011-13
                                                                                                                                                                                                                                                                                                                      • Italy
                                                                                                                                                                                                                                                                                                                        • Market segmentation – domestic/international
                                                                                                                                                                                                                                                                                                                          • Figure 96: Italy’s passenger airlines – market segmentation by volume, 2007-13
                                                                                                                                                                                                                                                                                                                        • Market shares of airlines
                                                                                                                                                                                                                                                                                                                          • Figure 97: Passenger airline market share by passenger volume, 2009-13
                                                                                                                                                                                                                                                                                                                        • Japan
                                                                                                                                                                                                                                                                                                                          • Market segmentation – domestic/international
                                                                                                                                                                                                                                                                                                                            • Figure 98: Japan’s passenger airlines – market segmentation by volume, 2007-13
                                                                                                                                                                                                                                                                                                                          • Market shares of airlines
                                                                                                                                                                                                                                                                                                                            • Figure 99: Passenger airline market share by passenger volume (%), 2012-13
                                                                                                                                                                                                                                                                                                                          • Mexico
                                                                                                                                                                                                                                                                                                                            • Market segmentation – domestic/international
                                                                                                                                                                                                                                                                                                                              • Figure 100: Mexico’s passenger airlines – market segmentation by volume, 2006-13
                                                                                                                                                                                                                                                                                                                            • Market shares of airlines
                                                                                                                                                                                                                                                                                                                              • Figure 101: Passenger airline market share by passenger volume (%), 2009-13
                                                                                                                                                                                                                                                                                                                            • Russia
                                                                                                                                                                                                                                                                                                                              • Market segmentation – domestic/international
                                                                                                                                                                                                                                                                                                                                • Figure 102: Russia’s passenger airlines – market segmentation by volume, 2009-13
                                                                                                                                                                                                                                                                                                                              • Market shares of airlines
                                                                                                                                                                                                                                                                                                                                • Figure 103: Passenger airline market share by passenger volume, 2009-13
                                                                                                                                                                                                                                                                                                                              • South Africa
                                                                                                                                                                                                                                                                                                                                • Market segmentation – domestic/international
                                                                                                                                                                                                                                                                                                                                  • Figure 104: South Africa’s passenger airlines – market segmentation by volume, 2007-13
                                                                                                                                                                                                                                                                                                                                • Market shares of airlines
                                                                                                                                                                                                                                                                                                                                  • Figure 105: Passenger airline market share by passenger volume (%), 2011-13
                                                                                                                                                                                                                                                                                                                                  • Figure 106: International passenger airlines – company market share by passenger volume (%), 2011-13
                                                                                                                                                                                                                                                                                                                                  • Figure 107: Domestic passenger airlines – company market share by passenger volume (%), 2011-13
                                                                                                                                                                                                                                                                                                                                • South Korea
                                                                                                                                                                                                                                                                                                                                  • Market segmentation – domestic/international
                                                                                                                                                                                                                                                                                                                                    • Figure 108: South Korea’s passenger airlines – market segmentation by volume, 2008-13
                                                                                                                                                                                                                                                                                                                                  • Market shares of airlines
                                                                                                                                                                                                                                                                                                                                    • Figure 109: Passenger airline market share by passenger volume, 2009-13
                                                                                                                                                                                                                                                                                                                                  • Spain
                                                                                                                                                                                                                                                                                                                                    • Market segmentation – domestic/international
                                                                                                                                                                                                                                                                                                                                      • Figure 110: Spain’s passenger airlines – market segmentation by volume, 2005-13
                                                                                                                                                                                                                                                                                                                                    • Market shares of airlines
                                                                                                                                                                                                                                                                                                                                      • Figure 111: Passenger airline market share by value, 2009-13
                                                                                                                                                                                                                                                                                                                                    • Turkey
                                                                                                                                                                                                                                                                                                                                      • Market segmentation – domestic/international
                                                                                                                                                                                                                                                                                                                                        • Figure 112: Turkey’s passenger airlines – market segmentation by volume, 2007-13
                                                                                                                                                                                                                                                                                                                                      • Market shares of airlines
                                                                                                                                                                                                                                                                                                                                        • Figure 113: Passenger airline market share by passenger volume, 2010-13
                                                                                                                                                                                                                                                                                                                                      • UK
                                                                                                                                                                                                                                                                                                                                        • Market segmentation – domestic/international
                                                                                                                                                                                                                                                                                                                                          • Figure 114: UK passenger airlines – market segmentation by volume, 2007-13
                                                                                                                                                                                                                                                                                                                                        • Market shares of airlines
                                                                                                                                                                                                                                                                                                                                          • Figure 115: Passenger airline market share by passenger volume (%), 2009-13
                                                                                                                                                                                                                                                                                                                                        • US
                                                                                                                                                                                                                                                                                                                                          • Market segmentation – domestic/international
                                                                                                                                                                                                                                                                                                                                            • Figure 116: US passenger airlines – market segmentation by volume, 2007-13
                                                                                                                                                                                                                                                                                                                                          • Market shares of airlines
                                                                                                                                                                                                                                                                                                                                            • Figure 117: Passenger airline market share by passenger volume, 2010-13
                                                                                                                                                                                                                                                                                                                                          • Vietnam
                                                                                                                                                                                                                                                                                                                                            • Market segmentation – domestic/international
                                                                                                                                                                                                                                                                                                                                              • Figure 118: Vietnam’s passenger airlines – market segmentation by volume, 2010-13
                                                                                                                                                                                                                                                                                                                                            • Market shares of airlines
                                                                                                                                                                                                                                                                                                                                              • Figure 119: Domestic passenger airline market share by passenger volume, 2011-13
                                                                                                                                                                                                                                                                                                                                          • Top Ten Airlines

                                                                                                                                                                                                                                                                                                                                            • American Airlines (now combined with US Air)

                                                                                                                                                                                                                                                                                                                                                • SWOT
                                                                                                                                                                                                                                                                                                                                                  • Strengths
                                                                                                                                                                                                                                                                                                                                                    • Weaknesses
                                                                                                                                                                                                                                                                                                                                                      • Opportunities
                                                                                                                                                                                                                                                                                                                                                        • Threats
                                                                                                                                                                                                                                                                                                                                                          • Fleet
                                                                                                                                                                                                                                                                                                                                                            • Figure 120: American’s mainline fleet, 2013-14
                                                                                                                                                                                                                                                                                                                                                          • Regional fleet
                                                                                                                                                                                                                                                                                                                                                            • Figure 121: American's regional fleet, 2013-14
                                                                                                                                                                                                                                                                                                                                                          • Future deliveries
                                                                                                                                                                                                                                                                                                                                                            • Figure 122: Aircraft deliveries, 2014-18 and beyond
                                                                                                                                                                                                                                                                                                                                                          • Current developments
                                                                                                                                                                                                                                                                                                                                                            • AMR/US Airways merger completed
                                                                                                                                                                                                                                                                                                                                                            • Delta Air Lines

                                                                                                                                                                                                                                                                                                                                                                • SWOT
                                                                                                                                                                                                                                                                                                                                                                  • Strengths
                                                                                                                                                                                                                                                                                                                                                                    • Weaknesses
                                                                                                                                                                                                                                                                                                                                                                      • Opportunities
                                                                                                                                                                                                                                                                                                                                                                        • Threats
                                                                                                                                                                                                                                                                                                                                                                          • Fleet
                                                                                                                                                                                                                                                                                                                                                                            • Figure 123: Delta's fleet, 2014
                                                                                                                                                                                                                                                                                                                                                                          • Fleet restructuring
                                                                                                                                                                                                                                                                                                                                                                            • Figure 124: Delta's aircraft orders, 31 December 2013
                                                                                                                                                                                                                                                                                                                                                                          • Current developments
                                                                                                                                                                                                                                                                                                                                                                            • Five classes
                                                                                                                                                                                                                                                                                                                                                                              • Increased revenue from corporate clients
                                                                                                                                                                                                                                                                                                                                                                                • Basic Economy to compete with ULCCs
                                                                                                                                                                                                                                                                                                                                                                                  • No fuel-related discounts on the horizon
                                                                                                                                                                                                                                                                                                                                                                                    • A renewed American Express agreement
                                                                                                                                                                                                                                                                                                                                                                                      • Funded through sale of Concur stake
                                                                                                                                                                                                                                                                                                                                                                                        • Delta to get ‘a little more’
                                                                                                                                                                                                                                                                                                                                                                                        • Southwest Airlines

                                                                                                                                                                                                                                                                                                                                                                                            • SWOT
                                                                                                                                                                                                                                                                                                                                                                                              • Strengths
                                                                                                                                                                                                                                                                                                                                                                                                • Weaknesses
                                                                                                                                                                                                                                                                                                                                                                                                  • Opportunities
                                                                                                                                                                                                                                                                                                                                                                                                    • Threats
                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 125: Cost per available seat mile comparison between selected airlines, 2014
                                                                                                                                                                                                                                                                                                                                                                                                    • Fleet
                                                                                                                                                                                                                                                                                                                                                                                                      • Fleet upgrading
                                                                                                                                                                                                                                                                                                                                                                                                        • Boeing 737 MAX
                                                                                                                                                                                                                                                                                                                                                                                                          • Boeing Next-Generation 737
                                                                                                                                                                                                                                                                                                                                                                                                            • Southwest Cabin Refresh
                                                                                                                                                                                                                                                                                                                                                                                                              • Transition of Boeing 717 aircraft
                                                                                                                                                                                                                                                                                                                                                                                                                • Incorporation of the larger Boeing 737-800 into the fleet
                                                                                                                                                                                                                                                                                                                                                                                                                  • Fleet reduced in 2014
                                                                                                                                                                                                                                                                                                                                                                                                                    • 500 new aircraft coming
                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 126: Southwest's aircraft orders, 2015-27
                                                                                                                                                                                                                                                                                                                                                                                                                    • Current developments
                                                                                                                                                                                                                                                                                                                                                                                                                      • Southwest to fly abroad
                                                                                                                                                                                                                                                                                                                                                                                                                      • China Southern Airlines

                                                                                                                                                                                                                                                                                                                                                                                                                          • SWOT
                                                                                                                                                                                                                                                                                                                                                                                                                            • Strengths
                                                                                                                                                                                                                                                                                                                                                                                                                              • Weaknesses
                                                                                                                                                                                                                                                                                                                                                                                                                                • Opportunities
                                                                                                                                                                                                                                                                                                                                                                                                                                  • Threats
                                                                                                                                                                                                                                                                                                                                                                                                                                    • Fleet
                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 127: China Southern's fleet, 2014
                                                                                                                                                                                                                                                                                                                                                                                                                                    • Current developments
                                                                                                                                                                                                                                                                                                                                                                                                                                      • Senior managers fired
                                                                                                                                                                                                                                                                                                                                                                                                                                        • ‘Cultural’ branding
                                                                                                                                                                                                                                                                                                                                                                                                                                        • United Airlines

                                                                                                                                                                                                                                                                                                                                                                                                                                            • SWOT
                                                                                                                                                                                                                                                                                                                                                                                                                                              • Strengths
                                                                                                                                                                                                                                                                                                                                                                                                                                                • Weaknesses
                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Opportunities
                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Threats
                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Fleet
                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Fleet plan
                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 128: United's mainline fleet plan at 22 January 2015
                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 129: United's regional fleet plan at 22 January 2015
                                                                                                                                                                                                                                                                                                                                                                                                                                                        • United to replace ageing long-haul planes with new Boeing 777s
                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Current developments
                                                                                                                                                                                                                                                                                                                                                                                                                                                            • United adds transatlantic routes for summer 2015
                                                                                                                                                                                                                                                                                                                                                                                                                                                              • New York to Venice
                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Chicago to Dublin
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Washington to Paris
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Lufthansa Group

                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • SWOT
                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Strengths
                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Weaknesses
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Opportunities
                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Threats
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Fleet
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 130: Lufthansa Group aircraft fleet, 31 December 2013
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Fleet additions
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 131: Leased aircraft, change compared to 31/12/12, additions 2014-15 and purchase options, 31/12/13
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Current developments
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Lufthansa’s new budget airline
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Eurowings opposed by employees
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • A black day for germanwings
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Industry insight: interview with Lorenzo Stoll of SWISS, a subsidiary of Lufthansa
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Ryanair

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • SWOT
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Strengths
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Weaknesses
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Opportunities
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Threats
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Fleet
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Current fleet and growth objectives
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Price of aircraft
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Price concessions granted
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Current developments
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Change in airport strategy
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Full-year profit forecast lifted
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Air France-KLM

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • SWOT
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Strengths
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Weaknesses
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Opportunities
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Threats
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Fleet
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Figure 132: Air France-KLM fleet, 31 December 2013
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Current developments
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Group under pressure
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Transavia.com expanding
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • HOP!
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • IAG

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • SWOT
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Strengths
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Weaknesses
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Opportunities
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Threats
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Fleet
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Figure 133: IAG’s fleet, 30 June 2014
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Current developments
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Merger and acquisition activity
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Qatar Airways buys 10% stake in IAG
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • IAG trying to acquire Aer Lingus
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • easyJet

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • SWOT
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Strengths
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Weaknesses
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Opportunities
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Threats
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Fleet
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 134: easyJet fleet, fiscal year 2013-14
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Figure 135: Future aircraft deliveries, FY 2015-FY 2019
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Current developments
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • easyJet tests frequent-flyer loyalty scheme
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • 15,000 frequent flyers rewarded
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Other initiatives
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • What Next?

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Rebounding profitability set to continue
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Kerosene price to stay low
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • More pricing power due to consolidation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Airlines as lifestyle brands?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • The Starbucks of airlines?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            • Branded luggage?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              • Hotels show the way
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                • Service delivery the key
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  • Emirates trying to build a lifestyle brand
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    • Future aircraft
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      • Battery technology improving
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        • Biofuels an interim solution
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          • Chopping off the tail

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Companies Covered

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          To learn more about the companies covered in this report please contact us.

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Airlines Worldwide - March 2015

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          US $2,002.85 (Excl.Tax)