A Commercial Aviation Consultancy


Russian airline, Transaero, deep in financial difficulties, was supposed to be taken over by Aeroflot.  Turns out Aeroflot won’t be doing that because the company cannot get the 75%+1 share of Transaero it had expected.  The takeover has fallen through.

Transportation Minister Maxim Sokolov told reporters yesterday that the government will not allow the airline to even sell tickets.  With its debts unable to be paid, and no state bailout, Transaero looks doomed.  Yesterday a report in Russia said the state moved on a bankruptcy.  The share price is down to 20 rubles (about $0.31).  Could there be some shareholders holding out for something?

It would appear a power play is in the works. Aeroflot has no need to rush to rescue Transaero.  Once the state withdrew a parachute, Transaero debt and shareholders were left hanging.  Whereas they might have been given… Continue reading

Airbus’ A320neo fleet started flight tests outside France last month, with the LEAP-engined aircraft going to Bolivia and the GTF-engined aircraft going to the UAE.  Airbus is pushing its tests hard because it has publicly said it will deliver its first aircraft by year end.

There are big kudos for accomplishing this.  Making such a delivery is a poke at Bombardier and Boeing.  That alone makes the pressure worthwhile.  But along with the aggressive schedule comes risk.

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The concept of a national carrier is becoming obsolete, as has been demonstrated by a number of European countries that have lost their national carriers, and a number that are hanging on for dear life through alliances with other carriers.  In today’s environment, in which Open Skies have largely replaced bilateral treaties, the notion of a national airline is less important than it once was.

Nonetheless, a national airline does tend to bring prestige, jobs, economic development, and many believe it can provide an advantage in attracting tourists and companies.   But if a national carrier is losing money, it cannot sustain itself for very long without government subsidies, which cannot last forever.

The Global Airline Competitive Environment has Changed

We’ve seen a consolidation of national carriers in many countries, and the loss of two in Europe, Malev in Hungary and Olympic in Greece.  Of course, locally-based low… Continue reading

Airbus announced that its next A350 XWB, the -1000 model, has started its assembly process.   It is less than a year since the first -900 was delivered to Qatar and the next model is being built.  Airbus released the following images with this news. Continue reading

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