Portugal’s auction of state-owned airline TAP SGPS SA has been shunned by Europe’s three biggest carriers, boosting prospects for a Latin American takeover of a company analysts say may fetch 500 million euros ($653 million).
Emirates, the biggest international airline, is rattling rivals in Europe and Asia with a growth splurge that may be as game-changing for long-haul carriers as the expansion of Ryanair Holdings Plc and Southwest Airlines Co.
Airlines are storing up trouble by swelling fleets with new planes and bringing older jets out of mothballs at the fastest pace since the world emerged from the last recession, just as traffic starts to collapse.
Airline chiefs gathering for their annual meeting in Berlin today face the biggest decision since the recession: whether to boost capacity as demand for travel surges or restrict supply and focus on raising ticket prices.
Malev Zrt., the state-owned Hungarian airline founded in 1946, ceased flying after the government withdrew financing, becoming the second victim of European austerity measures in a week after the collapse of Spanair SA.
Finnair Oyj, building Helsinki into a hub offering the shortest flights from Europe to northeast Asia, said it’s seeking a partner with which to operate the services while pursuing local takeovers to boost Nordic traffic.
Air France-KLM Group rose as much as much as 4.1 percent in Paris trading after reports that Europe’s largest airline may seek 800 million euros ($1.1 billion) in fresh cost savings that could lead to thousands of job cuts.
Airbus SAS , for decades the also-ran behind Boeing Co. in China, is set to reap one of its largest orders yet from the country as a local factory attracts Chinese carriers and air travel in the region booms.
Air France-KLM Group said it held a “vigorous” debate with SkyTeam ally Delta Air Lines Inc. over capacity before the pair agreed to slash seats in their trans- Atlantic venture as much as 9 percent for the northern winter.