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Lufthansa Moves Scottish Route

 

German airline Lufthansa Regional has switched its Düsseldorf service from Edinburgh Airport to Glasgow Airport.

From 8 April 2013, Lufthansa will run six flights per week from Glasgow, then a daily service from 24 June.

Glasgow Airport said it was delighted to host the route which connected two "economic powerhouses".

Edinburgh Airport said it could not understand the commercial logic behind the move and believed its service would have better served Scottish passengers.

Glasgow said Lufthansa's decision would see it host direct flights to Düsseldorf for the first time in 20 years.

Etihad Looks Into Two Indian airlines

 

 

Etihad Airways has looked at expansion for a long time and reported this week,  it has identified two Indian airlines as potential targets for investment. 

Etihad boss James Hogan wouldn’t be drawn on the names of the two airlines he’s been looking at, however all indications are going to be troubled Kingfisher Airlines who issued a statement saying it was in talks with the Gulf carrier. The other airlines could be its codeshare partner,  India’s Jet Airways. 

Etihad is keen to exploit India’s fast-growing aviation market after India opened the aviation sector to overseas investment for the first time in September of this year.   “We’re looking at a couple of opportunities in India,” Mr Hogan said in an interview in Abu Dhabi on Tuesday. “We’re going through the due diligence at the moment. If we believe we can meet the criteria, we’ll then discuss that with our board.”

If any deal is done, it would be a minority stake, “we don’t want to take over someone’s airline,” he added. Owned by Abu Dhabi’s oil-rich government, Etihad last year bought a 29.2 per cent stake in Air Berlin and has also expanded its global network through three other equity stakes including a 10 per cent holding in Virgin Australia, a 40 per cent stake in Air Seychelles and 2.987 per cent in Aer Lingus.

Virgin & BA to Clash Over Scotland

 

 

Virgin plans to compete with British Airways on Heathrow links with Scotland.  It is to fly six round trips between the London airport and Edinburgh, with three round trips linking it with Aberdeen.

The airline says 150 people will be employed as a result of the move.  Virgin Atlantic will take over landing slots from BMI, after it was bought by British Airways owner, IAG.

From 31 March 2013, the planes are to be operated by Aer Lingus, but will be in Virgin Atlantic livery.

Delta To Buy Virgin Stake

The US airline, Delta has agreed a super deal to buy the 49% Singapore Airlines' stake in Virgin Atlantic for $360m (£224m).

Virgin Group and Sir Richard Branson will retain a 51% shareholding, and the Virgin brand will remain in place, the new partners said in a joint statement.   Obviously the deal is subject to regulatory approval in both the US and Europe.  Already expected is a challenge from the horrifically immoral Willie Walsh,  boss of IAG group, owners of BA and financially crippled Iberia.    
Mr Walsh offered to wager a "knee in the groin" in a bet with Sir Richard over whether the Virgin brand would still be around in five years.  However Branson, hit back offering a £1million bet offered by Sir Richard on Monday.

Virgin and Delta said the deal would allow allow them to "overcome slot constraints" and offer more flights from Heathrow.  The carriers will operate 31 peak-day round trips between the UK and North America.  "Our new partnership with Virgin Atlantic will strengthen both airlines and provide a more effective competitor between North America and the UK, particularly on the New York-London route," said Delta boss Richard Anderson.

Sir Richard said it was an "exciting day" in Virgin's history.  "It signals the start of a new era of expansion, financial growth and many opportunities for our customers and our business."  Singapore Airlines says it is selling its stake, which it has owned since 1999, because of increased competition in its local market, where it wants to keep its focus.

Loizos Heracleous, professor of strategy and organization at Warwick Business School, said the airline had always faced this issue and that the move really reflected Singapore Airline's disappointment with its investment.
"Singapore Airlines has made it known years ago that it was considering options with respect to its Virgin stake. Virgin Atlantic has not been very profitable, posting a loss for the most recent financial year and slim returns in the years where it did make profits.
Singapore Airlines has itself launched a low-cost carrier, Scoot, and has been putting money into its regional service, SilkAir.