In the space of a decade, most of the independent airlines have disappeared, sucked in by the crises that the airline world goes through at regular intervals. The only ones left are Ryanair and Easyjet, the two low-cost transport behemoths, still going strong. In 2010, Ryanair was the continent's leading carrier with 72.7 million passengers, while Easyjet came third with 49.7 million. Their growth model - low operating costs, a range of low fares, minimal in-flight services for a fee - has won them a clientele that was initially mainly leisure travellers, but which has expanded over time to include business travellers, particularly from SMEs.<\/p>\n
In fact, in both Europe and the United States, deregulation has had a double-edged effect, generating a vast movement towards consolidation. A necessity, according to the specialists. \"The airline industry is too fragmented. While there are only about ten car manufacturers in the world, there are several hundred airlines. And their profit margins are ridiculously low. In 2010, despite being a record year for air transport with a global profit of $18 billion, this margin was only 3.2%, a derisory figure\".<\/em>As Giovanni Bisignani, former Director General of the International Air Transport Association (IATA), pointed out in June.<\/p>\n Hence the need for carriers to achieve economies of scale. They do this by trying to absorb the competition. This concentration has naturally taken place first and foremost in the EU's most mature markets, where demand remains strongest. This means the United Kingdom, with 214 million passengers, Spain and Germany, which make up the top three countries in terms of the number of passengers passing through their airports, ahead of France and Italy.<\/p>\n Rationalisation: this has been the leitmotif of European airlines since the early 2000s, a necessity accentuated by the events of 11 September 2001. This was the decade of the demise of Swissair and Sabena, the emergence of low-cost carriers, and the gradual elimination of short-haul point-to-point routes. \"Premium short-haul traffic will never recover from this crisis. So we have to adapt to it\".<\/em>said Willie Walsh, CEO of British Airways, lucidly in 2010.<\/p>\n Yet it is impossible to eliminate these short-haul routes, which are an integral part of the strategy of the major European carriers, in order to establish themselves as >>> truly global companies. In a Europe of airlines whose consumer habits have undergone radical change, Europe's leaders must reinvent their growth model. And the solution lies in building air empires around powerful hubs.<\/p>\n Europe now has three major airline groups: Air France-KLM, International Airlines Group (IAG, a new joint structure with British Airways and Iberia) and Lufthansa. Behind the German group, we also find Austrian Airlines, Swiss and the British company Bmi, companies in which Lufthansa has become the majority shareholder. Last year, the three groups alone handled 218.25 million passengers, or 63 % of the 435 million passengers recorded by the Association of European Airlines (AEA). And in their strategy of conquest, the similarities far outweigh the differences. It was Air France that set the tone in 2003, when it sealed the merger with Dutch carrier KLM. It was a merger that took place step by step, and was finally accepted by the Dutch, who were convinced that KLM could not survive without reaching critical mass, but who had been burned by the failure of their merger with British Airways in 2000. Pierre-Henri Gourgeon, CEO of the Air France-KLM group, remembers that at the time, the talk was mainly of \"one group, two companies<\/em> more than \"fusion\"<\/em>. Behind these semantic subtleties, the desire of the French management is first and foremost to retain the KLM brand while leaving a certain amount of management autonomy to the Dutch company.<\/p>\n Air France-KLM, a successful merger<\/strong><\/span><\/span> The two airlines connect 244 destinations, the most recent of which are Freetown, Monrovia, Kigali, LeCap, PhnomPenh, Cancun and Orlando. Nearly 40% of Roissy's business is now outside the European Union, while Air France-KLM and its Sky Team partners carry 62 % of all passengers passing through the hub. The massive investments at Amsterdam and CDG mean that the prospects for growth are excellent. \"We are fortunate that the development potential of these two hubs is far from complete\".<\/em>stresses Pierre-Henri Gourgeon. Roissy will theoretically be able to handle more than 80 million passengers when the S4 satellite opens in 2012. This compares with 58.1 million passengers in 2010.<\/p>\n 1 - British Airways<\/em><\/strong> is always at the forefront of innovation, not only on the ground with its incredible lounges at London Heathrow, but also in flight, with flight attendants now equipped with iPads. Taking the hubs of the three groups individually, Lufthansa dominates with 163 non-stop destinations at Frankfurt, followed by Air France with 148 destinations at Roissy, KLM with 118 non-stop routes at Amsterdam, Iberia with 108 destinations at Madrid and, finally, British Airways with 107 destinations at London Heathrow. The British carrier is weakened by the infrastructure that supports the activity of its main hub. The airport, which handles 52 % of its intercontinental traffic, is the most sought-after in Europe. London remains the Old Continent's leading financial centre, as evidenced by the London-New York airline called the \"bankers' air shuttle<\/em>The British capital is also the benchmark destination for English-speaking countries, with no fewer than thirty flights a day, including a twice-daily all-Business Class flight operated by British Airways between London City Airport and New York JFK. The British capital is also the benchmark destination for English-speaking countries, with more flights to the United States, Canada, Australia, South Africa, Nigeria, India and Hong Kong than any other European hub. Reminiscent of the Empire!<\/p>\n But Heathrow is also one of the most congested airports in the world. The British government's refusal, under pressure from environmental groups, to build a third runway is costing British Airways dearly, and the airline is adapting its growth strategy more than it is managing it. The airline has nevertheless managed to improve passenger comfort. Since 2008, British Airways has been the exclusive user of terminal 5, one of the most efficient and spacious terminals in Europe. A new satellite was inaugurated last June, specially equipped to receive the airline's future Airbus A380s, due to enter service in 2013. But this superb infrastructure should not obscure the fact that the carrier's potential for growth at Heathrow is hampered by the asphyxia of the hub's two runways, which handled 449,000 aircraft movements in 2010. However, British Airways is continuing to develop its network. The airline recently inaugurated a non-stop service to Buenos Aires - previously operated via Sao Paulo - and launched flights to Gothenburg, Luxembourg, San Diego and Tokyo Haneda. British Airways also remains Europe's benchmark carrier on the North Atlantic. The carrier offers 528 million seat-km per week on its 18 stopovers in the United States and 76 million to Canada. The two countries even account for almost 45% of the airline's total offer! Another strong point is India, with 91 million seat-km per week.<\/p>\n British Airways a little cramped, multiple hubs for Lufthansa<\/strong><\/span><\/span> Another key element in Lufthansa's growth strategy is the opening this winter of a fourth runway at Frankfurt, which will increase the number of aircraft movements by almost 50 %. With the forthcoming opening of the A-Plus jetty reserved for Lufthansa's exclusive use in Terminal 1, the German airline's main hub will be able to handle an additional six million passengers.<\/p>\n The integration of Swiss and Austriand will also enable the German group to better distribute its passenger traffic flows via Zurich and Vienna through its subsidiaries Swiss and Austrian. In Zurich, Swiss is a global operator with a network of 72 destinations in 39 countries. With a completely renewed long-haul fleet of Airbus A330s and A340s, the Swiss airline has expanded its intercontinental network, opening new destinations in East Africa since 2010, as well as San Francisco, Beijing and Shanghai. In Vienna, Austrian continues to specialise in Central and Eastern Europe, with 46 destinations, including 5 in Russia and 6 in Ukraine. Another of Austrian's strong points is the Middle East, with the opening this summer of services to Amman and Baghdad.<\/p>\n New wedding list<\/span><\/span><\/strong> Following British Airways' masterstroke with its merger with Iberia, which took effect at the beginning of 2011, the new entity IAG is showing its appetite. For some time now, business newspapers have been highlighting IAG's interest in acquiring a stake in TAP Portugal, which is in the process of being privatised. British Airways has also shown interest in Irish carrier Aer Lingus. These mergers are almost routine now that the main obstacle feared by European governments - the loss of the national identity of the airlines - is no longer an issue. The recipe for preserving the specific characteristics of its partner, applied by Air France in its acquisition of KLM, seems to have set a precedent.<\/p>\n 1-Bmi's main attraction<\/strong>For Lufthansa, the key to its success lies in its network and frequencies at London Heathrow. From October, the airline will be offering two daily flights from Nice to Europe's most desirable airport. The quality approach is another key aspect of the strategy of the three European airlines. Firstly, because it involves ensuring the essential elements of what makes a full-service airline even today. \"legacy<\/em>as opposed to low cost. This is reflected in the presence of airport lounges, ancillary passenger services such as assistance at stopovers, free baggage allowance and, above all, a cabin offer which always includes a Premium, business and\/or first class product. It is certainly no coincidence that among the five European airlines still offering First Class - even if only in part - are Air France, British Airways and Lufthansa, as well as Swiss and Turkish Airlines, the latter only to Singapore, Hong Kong, London, New York and Tokyo. Quality also means the most modern aircraft on the market, with on-board comfort incorporating the latest technological advances, such as more ergonomic seats, interactive entertainment programmes and, increasingly, the possibility of connecting to the Internet during the flight. Once again, it's no coincidence that the giant of the skies, the Airbus A380, is the preserve of Europe's three biggest airlines. Air France was its launch carrier on the Old Continent in 2009, followed a year later by Lufthansa. The duo will be joined in 2013 by British Airways and Virgin Atlantic.<\/p>\n High-quality services<\/strong><\/span><\/span> Air France took up this philosophy later, but the company has been working twice as hard in recent years to ensure a better match between product and passenger demand. This has resulted in the introduction of the low-cost Transavia in 2006, the creation of the full-fare Voyageur Premium economy class at the end of 2009, followed this year by the launch of bases outside Paris. These will be based on the development of domestic and regional routes and attractive fares, capable of matching the ambitions of low-cost carriers. Marseille is experimenting with this new concept, while Bordeaux, Toulouse and Nice will have to wait until next year.<\/p>\n In this European globalisation, is there still a part of the dream once described by Gilbert B\u00e9caud in Un dimanche \u00e0 Orly? Of course, it's a long way off, but airlines are now making real efforts to give travel that personal touch, that touch of glamour. Contact with the passenger is at the heart of the concerns of the three major hubs. Air France, for example, continues to emphasise the French art of living. And the quality of its meals is probably the most obvious sign of this. The same approach is taken by Swiss, which highlights Swiss know-how and impeccable service. Lufthansa has the same German-style concern for reliability. And British Airways still cultivates the British spirit. Its flight attendants are never devoid of that very detached sense of humour, and above all that inimitable BBC accent! Would you care for a nice cup of tea, Sir ?<\/p>\n![\"A](\"https:\/\/www.voyages-d-affaires.com\/wp-content\/uploads\/2011\/10\/qualite-aeroports-2.jpg\" "\\"A")
A problem of critical size<\/strong><\/span><\/span>
In France, the TGV has added to this trend, leading to a decline in domestic and cross-border traffic. As a result, airports are experiencing limited growth, of the order of 1 % per year since 2006, according to statistics from the Union des A\u00e9roports Fran\u00e7ais. The rise of high-speed rail lines has also precipitated the gradual disappearance of secondary French airlines. You need the firepower of Air France - with the support of its worldwide network and its hub at Roissy - to resist the TGV bulldozer...<\/p>\n
Since the creation of the Air France-KLM group, turnover has jumped by almost 30 %, reaching 23.6 billion euros in 2010\/2011, marking a return to profit after suffering the shock of the financial crisis with an operating result of 122 million euros. The formula's success has been built in particular on the rise of Europe's two most efficient hubs, Paris Charles de Gaulle and Amsterdam Schiphol. With 32,697 long-haul\/short-haul connections possible within a two-hour timeframe, the overall offer on the two hubs is almost 40 % better than that of the Lufthansa group on its Frankfurt, Munich and Zurich hubs. And 175% more than IAG at London Heathrow and Madrid, according to figures released by Air France-KLM in February 2011.<\/p>\n![\"Air](\"https:\/\/www.voyages-d-affaires.com\/wp-content\/uploads\/2011\/10\/fusions-reussies-2.jpg\" "\\"Air")
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2 - Iberia's merger with British Airways<\/strong> under the new entity IAG (International Airline Group) will result in the acquisition of new long-haul aircraft by the Spanish carrier, \"a priority\" according to Willie Wash, the group's CEO.<\/em><\/p>\n
Lufthansa sets itself apart with its multi-hub concept. The physical and environmental constraints that have weighed on Frankfurt airport for almost twenty years forced the German airline to adopt a dual approach to its hub system. While Frankfurt remains its central hub, Munich is also emerging as a major airport. Lufthansa and its Star Alliance partners have been based there since 2003 in terminal 2, a terminal capable of handling 25 million passengers a year. Lufthansa and the airport management have therefore launched the construction of a satellite that will increase handling capacity to 36 million passengers a year from 2015. With the go-ahead given at the end of July for the construction of a third runway, the Bavarian hub will be able to handle a third more aircraft movements. By summer 2011, Lufthansa and its partners were already offering a network of 122 destinations, including 23 intercontinental cities.<\/p>\n
For the three giants of European transport, the sky seems to be the only limit today to the desire to integrate other partners, and there is regular talk of an expansion of the Air France-KLM pairing to include a third player, in this case Alitalia. The Italian carrier, which is in the midst of an economic and strategic turnaround, already has 25 % of its capital in the hands of Air France-KLM. For its part, Lufthansa, which is the main shareholder in Brussels Airlines with 45%, could in the long term take the majority and integrate the airline into the group. SAS Scandinavian Airlines has also been on the list of candidates for takeover by the German carrier for several years.<\/p>\n![\"New](\"https:\/\/www.voyages-d-affaires.com\/wp-content\/uploads\/2011\/10\/nouvelles-fusions-2.jpg\" "\\"New")
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2-Austrian<\/strong> has embarked on a fleet modernisation programme. All its short-haul Airbus A320s are now equipped with new seats offering 10 cm more space. On-board comfort on long-haul routes will be overhauled in winter 2012.
3-News First Class<\/strong> Swiss's new long-haul business class services are accompanied by the company's growing intercontinental presence, with flights to Newark and Beijing departing from Zurich in 2012.<\/p>\n
Being a global company is also judged by our ability to meet all our customers' expectations. \"Our aim is to offer each market segment the best possible quality of service for the price of the ticket purchased\".<\/em>Thierry Antinori, Lufthansa's Vice President Sales & Marketing until last April, was quick to point out every year. The German airline has championed a product that is effectively tailored to each category of traveller. Its range of services includes private business jets, first class on the majority of its long-haul flights, business and economy classes, and even a low-cost product with Germanwings.<\/p>\n
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