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Aviation History
1989
1989 - 3167.PDF
NEWS ANALYSIS American's glossy image attracts predators: will Air France or Lufthansa bid? holding in Martinair Holland. The Dutch flag-carrier's Euro pean links include an almost 15 per cent stake in Britain's third- largest scheduled airline, Air UK, and a 33 per cent holding in Belgian regional Delta Air Trans port (49 per cent owned by Sabena). KLM's 20 per cent stake in Sabena World Airways would, if approved, cost £30 million. KLM's link with Northwest looks secure, however. Accept ance of the DoT changes assures a long-term partnership with KLM, says Checchi. NWA's new president cites the Dutch car rier's reputation for exemplary service: "We could not have a better partner". SAS is a past master at forging international links, having mar keting alliances with no fewer than five airlines worldwide: Varig in Brazil, All Nippon Airways in Japan, Thai Airways International, Airlines of Britain, and Continental. Now Swissair has been added to the list, in a co-operation deal which involves the Scandinavian and Swiss car riers exchanging shareholdings of between 5 and 10 per cent. Domestically, SAS has stakes in Scandinavian regionals Danair (57 per cent), Linjeflyg (50 per cent), Greenlandair (25 per cent), and Wideroe (22 per cent). Unsuccessful in its bid to buy British Caledonian, SAS instead took an almost 25 per cent holding in Airlines of Britain, owner of British Midland and London City Airways, and part-owner of Loganair and Manx Airlines (with Air UK). SAS paid $50 million for the right to take an up to 10 per cent stake in Continental Airlines' parent company Texas Air as part of a comprehensive marketing alliance with the US carrier. The Scandinavian airline has since been linked with rumours that either Continental or Texas Air, which also owns embattled Eastern Airlines (now operating under bankruptcy protection), is to be sold. Swissair's link with SAS adds to its existing alliance with Delta. The airline has also consolidated its domestic market, taking a 41 per cent stake in Swiss regional airline Crossair. Swissair also has a 7 per cent holding in state- owned Austrian Airlines. All Nippon Airways has a 3-5 per cent stake in Austrian and a marketing alliance with SAS, but there is no link yet with Swissair. Air France and Lufthansa, meanwhile, have agreed on extensive co-operation, includ ing joint equipment purchases and pilot training (which may be expanded to include Spain's Iberia). The two airlines are already linked through new Internal German Services oper ator EuroBerlin France, 51 per cent owned by Air France, 49 per cent by Lufthansa. State-owned Air France domi nates its home market, recently adding a 35 per cent stake in regional TAT to its 48 • 5 per cent holding in French domestic "... even smaller carriers have ambitions to form international networks." airline Air Inter. Links with other French regionals give AF more destinations in Europe than any other airline. Recent Govern ment moves tightened AF's hold on the French market at the expense of privately owned airline UTA (an Air Iryter share holder), and paved the way for the Lufthansa link. Lufthansa, for its part, owns 40 per cent of West German domes tic airline DLT and 48 per cent of Spanish charter carrier Viva Air in a joint venture with Iberia. The West German flag-carrier has a marketing alliance with Canadian Airlines International, —— SAS /, ^.u- -I ,1'iJiI @ SAS: an international entrepreneur which recently purchased Ward- air Canada. American Airlines, with which both Air France and Lufthansa have had discussions, has so far resisted forming marketing alli ances, doubting their logic. The US carrier's most significant international venture so far is to take a joint 15 per cent stake, with Japan Air lines, in newly privatised Air New Zealand (in which Australian flag-carrier Qantas has an almost 20 per cent holding). That may change if parent company AMR finds itself fighting a hostile take-over. In Europe, even smaller carriers have made clear their ambitions to form international networks. Britain's Air Europe, expanding into transatlantic scheduled services from its charter base, has spawned a Netherlands-based holding com pany, Airlines of Europe, which part-owns Spanish charter oper ator Air Europa (25 per cent) and Norway Airlines (35 per cent), and is seeking partners in France, Portugal, and the Nether lands. Belgium-based Trans European Airways has formed TEA UK, and wants to establish similar ventures in Europe. After the USA, European airlines are likely to turn their attention to the Far East, South America, and even Africa. Several carriers are earmarked for priva tisation in South America, where SAS already has a foothold, gain ing an option to buy into newly privatised Chilean flag-carrier LAN-Chile after helping success ful buyer Icarosan prepare its bid. An SAS bid to buy into Argentina's flag-carrier failed. • FLIGHT INTERNATIONAL 14 October 1989 35
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