In new strategy Etihad invests in Darwin Airlines, re-brands it Etihad Regional

by Devesh Agarwal

Etihad Airways, the national carrier of the United Arab Emirates, today announced what it calls a ‘step-change in global aviation’ with the launch of its first branded regional operation, after taking a 33.3 per cent stake in Swiss carrier Darwin Airline.

(Left to right) James Rigney, Etihad Airways’ Chief Financial Officer; Maurizio Merlo, Chief Executive Officer of Darwin Airline; James Hogan, Etihad Airways’ President and Chief Executive Officer; Emilio Martinenghi, President of Darwin Airline, celebrate the launch of Etihad Regional at the Dubai Air Show 2013.

Following completion of the minority investment, which is subject to regulatory approval, Darwin Airline will rebrand its operations as Etihad Regional and align its network to connect passengers from secondary European markets onto the main networks of Etihad Airways and its equity alliance partners in Europe, airberlin and Air Serbia.

Part of the strategy will see Etihad Airways launching daily services on June 1, 2014 from Abu Dhabi to Zurich, which will become one of Darwin Airline’s main operating hubs. The flight will depart Abu Dhabi at 2am and arrive early morning in to Zurich, enabling connections on to Regional's flights.

James Hogan, Etihad Airways’ President and Chief Executive Officer, said

“This is a step-change for Etihad Airways. With our new partner Darwin Airline, we are creating a unique approach to network development for global airlines. European travellers will now be able to connect from a far, far wider range of European towns and cities on Etihad-branded aircraft, through Abu Dhabi to our destinations worldwide. We are also linking the new Etihad Regional network into the key hubs of our equity alliance partners, bringing benefits to the customers of airberlin and Air Serbia. This is not just a great new offer for European travellers. It is also great news for Darwin Airline, which will see increased investment, greater sales and marketing opportunities, and the chance to benefit from Etihad Airways’ global network.”

Darwin Airlines Saab 2000 in current livery. Photo Devesh Agarwal

Darwin Airline is headquartered in Lugano, Switzerland, with its major hub in Geneva, to which Etihad already operates flights. Darwin currently offers scheduled flights to 21 destinations in Europe using a fleet of 10 50-seat Saab 2000 turboprop aircraft. Its flights operate under the IATA designator code 0D, which will continue past the re-branding.

After the 33% stake investment by Etihad, Darwin Airline will become he seventh member of the Etihad Airways equity airline alliance. Etihad Airways has minority shareholdings of 29% in airberlin, 40% in Air Seychelles, 19.9% in Virgin Australia and 3% in Aer Lingus. Etihad has received approval to acquire 24 per cent of India’s Jet Airways, and from January 2014, will acquire 49 per cent of Air Serbia.

Darwin, will continue to focus on secondary markets, and become the first airline to operate using a new sub-brand called ‘Etihad Regional’. Darwin Airline will also adopt the Etihad Guest frequent flier program.

The investment will give Etihad Airways access to regional markets in Europe, and enable a major expansion of Darwin Airline’s operations.

Darwin Airlines Saab 2000 in new Etihad Regional livery. CGI.

Darwin's fleet will be re-painted in the new ‘Etihad Regional’ livery which sees the logo displayed prominently on each side of the fuselage of the aircraft, while the rear of the plane will carry the words “Operated by Darwin Airline”, and the Darwin Airline’s present logo. The Swiss flag will be displayed on the dorsal tail fin, though the E of the Etihad logo will take prominence on the tail.

By mid-2014, Darwin Airline will add 21 new routes and 18 new destinations. Its network will then include six European gateways served by Etihad Airways – Geneva, Amsterdam, Paris, Düsseldorf, Belgrade and, commencing in June, Zurich.

Darwin Airline will be able to connect to the network of airberlin, Etihad Airways’ equity partner, through new and existing routes to Berlin, Düsseldorf and Zurich. Berlin and Düsseldorf provide excellent connections to the United States with airberlin.

Darwin Airline will also be able to connect to the network of Air Serbia, through its hub at Belgrade.
Subject to regulatory approval, Etihad Airways, airberlin and Air Serbia will codeshare on Darwin Airline routes, while Darwin Airline will codeshare on Etihad Airways, airberlin and Air Serbia flights from a range of European gateways. This will provide deeper access to Europe for the three larger carriers and significant new international connectivity and feeder traffic for Darwin Airline.

Maurizio Merlo, Chief Executive Officer of Darwin Airline, believes the Etihad Airways partnership will enable Darwin Airline to build upon its success to date and enjoy significant growth, not only by providing a larger network for customers within Europe but also greater access to Europe for travellers from around the world.

Darwin Airline’s expanded network, to be implemented in stages from April 2014, will provide significant new opportunities for travellers to fly between major regional centres in Europe and the global network of Etihad Airways, via its hub in Abu Dhabi, capital of the UAE.

• In April 2014, Darwin Airline will launch nine new routes, from Dusseldorf to Berlin, Cambridge and London City; from Berlin to Poznan and Wroclaw; from Geneva to Toulouse; from Zurich to Leipzig; and from Rome to Tirana and Zagreb.
• In May 2014, it will start flights from from Zurich to Geneva, Florence and Turin; and from Geneva to Belgrade.
• In June 2014, it will launch flights from Zurich to Linz, Graz, Verona and Lyon; and from Geneva to Bordeaux, Marseille, Nantes and Verona.

What are your thoughts on this new strategy by Etihad? Post a comment.

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Trivia quiz: Big planes on short flights

by Devesh Agarwal

LoganAir. Photo by Dave Wheeler. Used under CC license.

While many of us will be aware of the longest non-stop flights; Singapore Airline's soon to be withdrawn Newark Singapore and Los Angeles Singapore, and Qantas' Sydney Dallas-Fort Worth which become the longest; how many of us are aware of the shortest non-stop flights?

The world's shortest flight is performed by Loganair, Flight 353, from Westray to Papa Westray airports, in the Orkney islands off the northern tip of Scotland, using a Britten-Norman Islander. The 1.7 mile (2.7 kms) distance is covered in just two minutes.

Passengers have to carry their own baggage to the plane.

Some of the shortest trips performed by a jet aircraft.

Narrow body

• Alaska Airlines uses a Boeing 737 to operate flight AS 65 from Wrangell to Petersburg in Alaska. The distance of 32.4 miles (51.1 kms) is covered in 20 minutes, giving an average speed of about 90 miles per hour.
• Etihad investee airberlin also uses a 737 to operate flight AB 4651 from Lanzarote to Fuerteventura airports in the Spanish Las Palmas islands, off the western coast of Morocco. The 37 miles (60 kms) is covered in 30 minutes making the average speed 74 miles per hour; the speed on many US highways.

Wide body

• Arkefly uses a wide-body Boeing 767-300ER to perform flight OR 365 on the 46 mile (75 kms) flight between the Dutch Caribbean islands of Curaçao and Bonaire. Bonaire's airport is aptly named Flamingo.
• Cathay Pacific subsidiary DragonAir uses a 300+ seat Airbus A330-300 to perform its 73 mile (118 kms) 50 minutes long flight from Hong Kong to Guangzhou (Canton).
• The 91 miles (146 kms) from Bahrain to Doha in the Gulf is performed by two wide-bodies on a regular basis. British Airways flight BA 125 a Boeing 777-200 takes 40 minutes while Lufthansa LH 620 an Airbus A330-300 takes 30 minutes. Time to pull up your socks old chap.

There are two flights in India on the global shortest flights list. Take a guess on the routes, and which airline performs it. One is performed in a narrow body jet aircraft, and one is in a fast turbo-prop. Send your answers via a comment.

In fair spirit, do not refer to any external reference sites like Wikipedia till the answers are posted tomorrow.

Update July 25, 2013

Thanks for the answers. The correct and most complete answers are posted in the comments.

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Opinion: Jetihad deal means India's international market belongs to the MEB3

by Vinay Bhaskara 

When Abu Dhabi based Etihad Airlines announced in late April that it had acquired a 24% stake in Mumbai

Will the MEB3 hold sway?

based full service carrier Jet Airways for $379 million, it marked a paradigm shift in the state of the Indian air travel market. The newly formed “Jetihad” partnership would hold a nearly 18% share of international passenger traffic to and from India, versus 13% for Emirates, and 12% for Air India based on statistics from 2011-2012. However, the recently re-written India-UAE bilateral more than trebles the weekly seating rights to Abu Dhabi, which means that Jetihad will likely hold close to 20% of India’s international passenger traffic by 2017.

When combined with Etihad’s gulf rivals Emirates and Qatar Airways (the so-called Middle Eastern Big 3 carriers), Middle Eastern airlines are will effectively control 40% of India’s international passenger flows, and closer to 70% of westbound international traffic.

In practical terms, this is a net positive for Indian air travelers. Middle Eastern carriers are able to offer lower fares than Western and Indian airlines, thanks to favorable labor conditions and the economies of scale offered by their massive super-hubs (larger operations have lower cost per enplanement because fixed costs like terminal rent and ground services are spread over more flights and passengers). The MEB3 carriers offer the most competitively priced westbound international tickets in the Indian market, and the expanded access thanks to the Jetihad deal will only increase the supply of such tickets.

However when one considers the strategic implications for India’s airline industry, the deal has a profound impact. Jet Airways was India’s premier full service carrier due to the demise of Kingfisher and the poor international reputation of Air India. And India’s government has at least verbally expressed its desire for India to develop both a world-class full service airline and a world class hub airport in Delhi, Mumbai, or one of the other metros.

And in pursuit of that goal, India’s dreams have suffered a major setback.  By default, Jet Airways was the one Indian airline that, had it pursued a sensible strategy and taken full advantage of the upcoming integrated terminal at its largest hub in Mumbai, could have conceivably fulfilled such aspirations (unless Air India is privatized – which the present government is unwilling to do). But with the Jetihad deal; Jet Airways’ position in the global airline market has shifted.

One need only consider the shift in strategy by Etihad’s previous equity investments to predict Jet Airways’ international network moving forwards. AirBerlin once had a worldwide long haul network with several destinations in Asia, Africa, and the Middle East. Following Etihad’s investment however, they cancelled the majority of their eastbound long haul destinations (which can be served via connections through Abu Dhabi). A few core routes (Tel Aviv, Phuket, et. al, are still served on airberlin’s mainline platform, but the long haul network has shifted to focus on services to the America and Abu Dhabi. For Jet Airways, thus the path forward is clear. As far as standalone westbound long haul destinations are concerned, only London has enough demand to survive as a nonstop destination. A core network to the Gulf will likely stay in place because of the short distances, but services to the Americas and to the rest of Europe are likely to flow over Abu Dhabi. Meanwhile, expect expansion of services to Asia and other international markets which cannot be easily served on Etihad code shares.

What this means for the strategic vision of an Indian hub is that Jet Airways’ operation in Mumbai will never turn into a massive connecting powerhouse in the vein of Singapore for Singapore Airlines or Frankfurt for Lufthansa. India will not, in the near future, have its own version of Thai Airways International, or even Vietnam Airlines for that matter. Westbound international travel will flow in volume over Dubai, Abu Dhabi, and Doha with business traffic also being captured by the various alliances as well. Absent a significant change in Air India’s status, India’s international air travel market is now firmly in the hands of the MEB3.

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Analysis: Strong first quarter for Etihad bodes well for Jetihad deal

by Vinay Bhaskara

Abu Dhabi based full service carrier Etihad Airways reported record results for the first quarter of 2013.
Revenues grew a whopping 18.7% year over year to $900 million, up from $758 million in Q1 of 2012. In its 10th year of operations, Etihad also saw cargo revenues grow 17% to $193 million. Passenger figures also reached a new high of 2.8 million, growing 13% year over year from 2.3 million. Average seat factors grew 4 percentage points over 2012 to 80.5% despite a 12.5% increase in capacity. See the table at the bottom of the story for a full overview of key metrics for Etihad’s first quarter.

Said Eithad President and Chief Executive Officer James Hogan, “Our Q1 2013 results have again outstripped global trends, with our strongest ever first quarter results for passenger revenue… This performance demonstrates that Etihad Airways’ strategy of organic growth, wide-ranging partnerships, and strategic equity investments is delivering for us and our partners.”

More importantly for a future “Jetihad” partnership and equity investment, Etihad’s existing equity stakes are beginning to pay handsome dividends, with revenues growing 34% from $136 million to $182 million, and accounting for 20% of Etihad’s overall revenues.

The success of Etihad’s existing equity investments in airberlin, Air Seychelles, Virgin Australia, and Aer Lingus, who all reported profits in the first quarter of 2013 bodes well for a potential equity investment in Jet Airways because it shows that such an investment is viable.

However, the current macroeconomic pressures in India do give some pause. Demand growth continues to slow, with domestic demand falling 9% year over year in February. This, to some degree reduces the value of Jet Airways, and Naresh Goyal and other Jet Airways decision-makers will need to realize this and adjust their expectations accordingly.  Some of the valuation figures of Jet Airways at over a billion US dollars are unrealistic and out of line with the current strength of the industry and the Indian investment environment as a whole. That being said, the Indian Diaspora and international demand remain relatively robust, and thus Jet does offer significant value to Etihad as an Indian partner.

Jet Airways could sorely use the additional capital in order to solidify its restructuring efforts at a time of flux in the industry. Air India continues to flounder (and indeed a recapitalized Jet could win away some of Air India’s passengers), and Kingfisher is dead. SpiceJet appears to have found a pair of winner in its regional network of international destinations and fleet of Q400 turboprops serving Tier II/III destinations - while GoAir continues to fly under the radar as a presumably profitable airline. IndiGo meanwhile, is still humming along, though it has begun to rethink its growth strategy and must continue to do so. AirAsia’s new venture threatens to usurp the delicate balance of power that has emerged in the domestic industry, though much is yet to be determined.

We will learn a lot from the first quarter results of SpiceJet and Jet Airways. The domestic results in particular will indicate if the shrinking of demand has been made up for with increased fares on aggregate (a sign of a healthier industry). Regardless, a Jetihad deal is slowly getting closer and closer to fruition.

Etihad Key Metrics: First Quarter 2013

Key indicators	Q1 2013	Q1 2012	Variance
Passenger revenue	US$ 900 million	US$ 758.1 million	+19 per cent
Cargo revenue	US$ 193.1 million	US$ 165.4 million	+ 17 per cent
Total revenue	US$ 1,136.5 million	US$ 989 million	+ 15 per cent
Passengers	2,767,789	2,340,356	+ 18 per cent
Revenue passenger kilometres (RPKs)	12.9 billion	10.9 billion	+ 17 per cent
Available seat kilometres (ASKs)	15.9 billion	14.3 billion	+ 12 per cent
Seat factor	80.5 per cent	76.5 per cent	+ 4 points
Aircraft	73	66	+ 7

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Photos: Four new airlines take delivery of A320s with Sharklets

The fleet of Airbus A320s equipped with the new wingtips called "Sharklets" is growing by the day.

During the last fortnight, four new airlines have taken delivery of Sharklet fitted A320s.

Spain's largest low cost carrier Vueling, the largest low cost airline in Spain, took delivery of its first A320 Sharklet aircraft, becoming the first Spanish carrier to do so. Vueling’s in-service fleet rises to 61 A320 Family aircraft

Monarch Airlines, became the first UK carrier to take delivery of a Sharklet A320.

Germany's airberlin group took delivery of its first Sharklet Airbus A320. This aircraft will join the fleet of group member, the Austrian based airline NIKI. Till 2015 the airberlin group, will receive 13 more Sharklet fitted A320-family aircraft.

Wizz Air Ukraine, took delivery of a Sharklet A320, becoming the first Ukrainian carrier to do so.

Photos courtesy Airbus S.A.S.

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Analaysis: Etihad reports full year 2012 profit; equity investments beneficial for both Etihad and partners

by Vinay Bhaskara

Etihad Airways Boeing 777-300ER -- Image Credit Etihad Airways

Abu Dhabi based Eithad Airways reported its second straight year of profitability, with calendar year 2012 witnessing a net profit of US $42 million (versus $14 million), on revenues of $4.8 billion (up from $4.1 billion in 2011). Full year EBITDAR (earnings before interest, taxes, depreciation, amortization, and rents) hit $753 million while EBIT (earnings before interest and taxes) was $170 million.

Strong expansion helped fuel Etihad’s successful performance, even as they dealt with local headwinds including continued demand softness in the Middle East and North Africa due to political instability, and a decrease in Iranian demand due to runaway hyperinflation causing decreased purchase power. Moreover, global business travel demand registered weak growth overall thanks especially to a declining European market. However, Etihad (and its so-called Middle East Big 3 [MEB3] rivals Qatar Airways and Emirates) persevered through these headwinds and continued on a path of robust expansion.

For the year, passenger traffic as measured by revenue passenger kilometers (RPKs) grew 23% to 48 billion year over year, while capacity as measured in available seat kilometers (ASKs) grew 20% to 61 billion. These contributed to a 2.4 percentage point increase in load factor from 75.8% to 78.2%. The carrier added 6 aircraft to its fleet which now includes 70 aircraft serving a network of 86 passenger and cargo destinations. Revenue passengers carried crossed the 10 million passengers mark for the first time, 10.3 million to be exact.

Freight loads, as measured in metric tons, recorded a robust 19% growth to 367,837; bucking the global trend of declining cargo volumes. The carrier also reported a decline in non-fuel cost per available seat kilometer (CASK – the most reliable indicator of an airline’s cost discipline) of more than 5%. While fuel prices remained volatile throughout the year, Eithad used a strong program of fuel hedging (more than 80% of total use) to offset that volatility.

Said Etihad President and CEO James Hogan about the quarterly results:

We understand how to manage costs without compromising our innovative product and outstanding service experience….We have delivered improved net profit, the second consecutive year we have been in the black, a remarkable achievement given the youth, ambitious growth and ongoing investment made by this airline in a challenging global economic environment… And we have met our mandate of contributing to the economic development of Abu Dhabi, growing its aviation sector and building trade and tourism connections across the globe.

Etihad CEO James Hogan (left) and CFO James Rigney
(right) - Image Credit  Etihad Airways

An important contributor to Eithad’s success in 2012 was its quasi-alliance of partner airlines, all of whom Etihad has invested in. This so called ‘equity alliance’ is comprised of Etihad investments in Air Seychelles (40% stake), airberlin (29.21%), Virgin Australia (9%) and Aer Lingus (2.987%).

According to Etihad, these investments and the resultant code shares have already played a vital role in Eithad’s finances. Equity and code share partners transferred more than 1.2 million passengers onto the Etihad route network, with airberlin in particular transferring 300,000 passengers, which drove $130 million in joint revenue synergies.

The model in which Eithad’s equity partners transfer certain long haul traffic flows through Abu Dhabi to Etihad while focusing on regional opportunities and long haul traffic flows not viably served via Abu Dhabi appears to have paid dividends. Aer Lingus just reported record quarterly and annual profits, while airberlin appears to have stabilized financially and recently launched a trans-Atlantic expansion. Similarly, Virgin Australia has displayed a renewed focus on the Australian domestic, trans-Tasman, Asian, and trans-Pacific markets where it is challenging a weakened Qantas  for lucrative business travelers and frequent flyers.

All of this takes on especial importance when one considers the increased likelihood that Etihad will take an equity stake in India’s largest private carrier Jet Airways under the new foreign direct investment (FDI) regime that allows foreign airlines to invest in the Indian airline market. While the vagaries of such an investment can be analyzed once the deal is finalized and officially announced.
Hogan had this to say about a potential investment in Jet Airways. "We are doing our due diligence (on Jet Airways) in the next week. We will present it to our board and take it from there.”

He also explained a visit with senior ministers in India “We wanted to understand the new rules under the Foreign Direct Investment (FDI) scheme. We also wanted to understand the issues that have impacted Indian domestic aviation and how these are being addressed in the coming years.”

Suffice to say that the experience of other carriers shows that an Eithad investment would not necessarily be detrimental to Jet’s financial health as many in the Indian media and aviation community fear. Rather, a hybrid model for Jet Airways’ international network could be developed to build off of the synergies offered by Etihad.

Kudos to Etihad for a very successful 2012 and for its incredible development. In 2006, Etihad was a $750 million a year business serving primarily regional traffic. Today, just six years later, it has become a global powerhouse; a $5 billion dollar a year powerhouse that serves intercontinental traffic flows. And with each passing year of profitability Etihad helps prove wrong the skeptics who doubted the viability of the MEB3 (and Turkish) business model.

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Post your views: Topic of the week: Global alliances accept the Middle East Big 3 (MEB 3)

This topic this week is focussed on the Gulf region home of the fast rising behemoths Emirates, Qatar Airways, and Etihad.

The last few days have been startling to say the least. From competing head-on, the airlines of the world, have accepted, nay welcomed, the Middle East Big 3 (MEB3) of Emirates, Qatar, and Etihad.

A few weeks back the shocker of an announcement, Australia's QANTAS was dumping oneworld partner, and virtual cousin, British Airways, in favour of (gasp) Emirates!!!! and.... QANTAS, the second largest airline at Singapore Changi airport, will shift its base to Dubai!!!!!

Then the week began with news that Abu Dhabi based Etihad is signing a long term partnership with SkyTeam founders Air France-KLM and in a rare instance of cross alliance cooperation, Air France and KLM will code share with oneworld member airberlin, in which, Etihad, has an almost 29% stake. SkyTeam cooperating with oneworld cooperating with MEB3 mon dieu!!!! H'as the world gone mad?!?!?

On Tuesday came the announcement that Qatar Airways is joining the oneworld alliance and its mentor is, yes you guessed it, British Airways. Willie Walsh to Alan Joyce, I say, good show. What chaps??

What are your thoughts?

Have the MEB3 become mainstream? With their global footprint, will they benefit or wreak havoc on their partners over the long term? Can the oneworld CEOs contain Mr. Akbar Al Baker?

Share your views. Talk back to your fellow readers.

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Air France-KLM, Etihad, Air Berlin enter in to a code share agreement

The Air France-KLM Group, Etihad Airways, and airberlin will implement code-share agreements as of October 28, 2012, which will offer their respective customers more destinations.

Air France, KLM, and Etihad code-shares

On the routes between Europe and Abu Dhabi, Etihad Airways customers will be able to fly on the Amsterdam-Abu Dhabi daily flight operated by KLM.

Air France customers will be able to travel everyday between Paris-Charles de Gaulle and Abu Dhabi on Etihad Airways operated flights.

Beyond their gateways, the code-share agreement offers five destinations each to Air France and KLM passengers on the Asian and Australian market and ten European destinations to Etihad passengers on Air France and KLM.

• Air France passengers will be able to connect through Abu Dhabi for flights to Colombo (Sri Lanka), Dhaka (Bangladesh), Katmandu* (Nepal), Mahe (Seychelles), and Male (Maldives).
• KLM passengers will be able to connect through Abu Dhabi for flights to Colombo (Sri Lanka), Islamabad (Pakistan), Lahore (Pakistan), Melbourne (Australia), and Sydney (Australia).
• Etihad Airways passengers will be able to connect through Paris-CDG airport for flights to
• Bordeaux, Copenhagen, Madrid, Nice and Toulouse under an Air France operated flight, and through Amsterdam-Schiphol to Billund, Cardiff, Newcastle, Oslo, and Stavanger under a KLM operated flight.

airberlin, Air France, KLM code-shares

Air France and airberlin announce a mutual codeshare agreement, allowing customers of either carrier to fly on all the routes operated by the other between France and Germany. Passengers will also be able to connect to some selected destinations via Paris for airberlin, and via Berlin or Düsseldorf for Air France.

• Air France passengers will be able to connect through Berlin-Tegel airport to Krakow (Poland), Gdansk (Poland), Graz (Austria) and from Düsseldorf to Dresden (Germany) on services
• operated by airberlin.
• airberlin passengers will be able to transfer through Paris-CDG and Paris-Orly to Bordeaux, Lyon, Marseilles, Montpellier, Nantes, Nice, and Toulouse on services operated by Air France.
• KLM will codeshare with airberlin on three destinations beyond Berlin: Krakow (Poland), Gdansk (Poland) and Kaliningrad (Russia).
• airberlin will codeshare with KLM on Berlin-Amsterdam routes as well as on Edinburgh (UK), Glasgow (UK) and Manchester (UK) beyond Amsterdam.

James Hogan, Etihad Airways’ President and Chief Executive Officer, said

“Partnerships are delivering a major source of our revenue growth, by extending our network reach and putting our brand directly in front of millions of new customers. This year to date, they are providing 18 per cent of our revenues and will be a major contributor to our sustained profitability growth this year and into the future.”

The new strategic partners will work together on the proposed integration of frequent flyer programs which includes reciprocal ‘earn-and-burn’ privileges for 1.5 million Etihad Guest members and 21 million Air France-KLM Flying Blue frequent flyers across the combined networks.

Other potential areas of co-operation include joint procurement, as well as maintenance and repair collaboration, as both carriers identify cost savings and seek to benefit from economies of scale, as Etihad Airways is doing with its other strategic partners.

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Weekly Airline Stock Update - BAASA Index Shows a Mixed Bag

Last week, Bangalore Aviation introduced the BAASA Index, the world's first index of 30 airline stocks measured from a 3,000 point base value and designed to provide a broad based measure of airline financial performance and investor confidence in the airline industry.

Over the past week, the BAASA index fell 0.49% to close at 2985.80 points. Performance was mixed across the board by region, though Asia-Pacific outperformed the pack (excluding Qantas).

The weakest performers were Qantas, who suffered a precipitous 30% decline in shares, primarily on recent worries over Qantas reporting a 90% drop in profits for the past fiscal year, and airberlin, which fell 15.56%

On the plus side, Jet Airways, jetBlue, and Air Canada each rose more than 7% over the week, with Air Canada leading the pack with an 8.14% rise.

Here is the full table of values for this week. The initial prices (normalized to 100) can be found here.All values are as

Asia-Pacific	Value	% Change
Jet Airways	107.04	7.04%
Singapore Airlines	100.50	0.50%
China Southern	104.74	4.74%
ANA	104.33	4.33%
Korean Air	102.21	2.21%
AirAsia	103.39	3.39%
Qantas	70.00	-30.00%
Cathay Pacific	101.34	1.34%
Air China	102.96	2.96%
North America
United	97.24	-2.76%
Delta	90.41	-9.59%
Southwest	101.14	1.14%
US Airways	91.71	-8.29%
jetBlue	107.16	7.16%
WestJet	102.52	2.52%
Air Canada	108.14	8.14%
Allegiant	98.89	-1.11%
Europe
IAG(British Airways/Iberia)	105.91	5.91%
Lufthansa Group	100.66	0.66%
Air France- KLM	96.55	-3.45%
Ryanair	101.21	1.21%
EasyJet	99.76	-0.24%
Turkish Airlines	105.08	5.08%
AirBerlin	84.44	-15.56%
Norwegian Air Shuttle	101.90	1.90%
Middle East
Air Arabia	98.63	-1.37%
Africa
Kenya Airways	98.33	-1.67%
Latin America
Copa Airlines	95.72	-4.28%
LAN Airlines	104.51	4.51%
Aeromexico	99.31	-0.69%
Total	2985.30	- 0.49%

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airberlin and NIKI to join oneworld alliance from 20 March

German carrier, airberlin will become a full member of the oneworld® alliance with effect from Tuesday 20 March 2012. Austrian airline NIKI, also a member of the airberlin group, will join oneworld at the same time as an affiliate member.

airberlin received its green light to board oneworld after successfully completing a thorough review of its readiness conducted by British Airways, which is sponsoring its entry into the alliance, with the oneworld central team.

airberlin and NIKI will follow India's Kingfisher Airlines, who will join the alliance eight days from now on February 10th.

airberlin is expected expand the alliance’s network in Germany, South and Central Europe, adding almost 70 destinations and extending oneworld’s global coverage to some 840 destinations in 150 countries, served by more than 9,000 departures a day operated by a combined fleet of some 2,500 aircraft, carrying nearly 300 million passengers a year, with annual revenues of almost US$ 100 billion.

airberlin will move into the new Brandenburg airport at Berlin, when the airport opens on 3 June with an eventual capacity for 27 million passengers a year.

Upon joining the alliance, members of airberlin's topbonus frequent flyer programme will be able to earn and redeem mileage awards on all oneworld partners – American Airlines, British Airways, Cathay Pacific Airways, Finnair, Iberia, Japan Airlines, LAN Airlines, Malév Hungarian Airlines, Qantas, Royal Jordanian, S7 Airlines and almost 20 affiliated airlines. Likewise 120 million members of the established oneworld airlines’ frequent flyer programmes will be able to earn and redeem awards and tier status points and receive all other oneworld benefits on airberlin and NIKI.

airberlin already has code-sharing agreements with seven oneworld airlines, American Airlines, British Airways, Finnair, Iberia, Malév Hungarian Airlines, S7 and Royal Jordanian.

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