RE: SN Brussels Airlines …

I agree that the Bermuda treaty is cr_p. Don’t get me wrong, but the decision to implement what you describe is still a policy, although we are probably just quibling about deffinitions now. My problem with the EU approach is that it is only addressing one part of the issue. Either way, observing how it all unfolds will be very interesting.

Noah

RE: SN Brussels Airlines …

Funnily enough, my conclusion was the same in my disertation. Although things have changed substantially since then (95-96), the bilateral agreement regimes still predominate, although the EU is constantly looking for ways, either through treaty revisions or competition policy or foreign trade agreements to get itself a role.

It is a far from satisfactory state of affairs, however, as there is no real coherent policy framework for effective air transport as a whole in the EU but just a big stick in terms of competition.

My conclusion was that air transport is a complex issue and just leaving it to the market to decide what outcomes are achieved will have significant social and political ramifications that have not been thought through. Also, looking at the US industry at the moment one gets the feeling that just copying that model will not work in Europe and betting the house on the low-cost point-to-point operators seems to me a little foolhardy.

The need for reform and healthy finances in EU aviation is undeniable and the way many of the European companies operate (or don’t for that matter!) must be a cause for concern, but there needs to be a carrot AND stick approach from the EU if it is ever going to be more than just a policeman of the industry, IMHO.

Noah

RE: SN Brussels Airlines …

Would love an explanation 😉

RE: Lufthansa to launch budget

It seems fairly risky, with the Lufthansa cost base being pretty high, but I guess they have taken an “if you cant beat them join them approach”.

The abillity of a traditional network operator to also operate in the point to point low-cost market still remains to be seen, however. Maybe they have taken a look at the BA/Go plan and figured out how to make it work better?

Noah

RE: SN Brussels Airlines …

It sounds to me like the kind of thing the regulators would have to approve.

Noah

RE: Swiss plans to breakeven next year

My feelings too, especially since the timing of the Swissair collapse was very convenient in terms of the agreement between the Swiss government and the EU going into effect that would have made the whole exercise much more complicated in terms of fitting it in to the EU conditions.

At the same time, there are many people I have spoken to who are long term commentators on the aviation industry in Europe who deny there was any premeditated plan.

Somehow even for the Swiss I think it would be difficult to prepare such a complex financial and corporate restructuring plan over a weekend.

Noah

RE: BA’s Preffered Merger Partner-Iberia

Sorry for the late reply, but have just discovered (and joined) this forum.

I think the proposed link-up between Iberia and BA is a very interesting development.

With the Commissioner being Spanish, I imagine the EU Transport Commission is likely to ‘smile’ on this proposed linkup in exactly the way it did not on the Alitalia/Air France deal (although after the approving the Alitalia aid package, I imagine Italy cannot really complain.

Noah