Airlines of 2013 Part 1

Delta purchased a refinery as a hedge against rising oil prices

In a constantly changing and competitive airline industry, there are some carriers that serve as a catalysts for upheavals. Here are the list of 25 airlines that will rock 2013. These airlines are poised to make advances by being a challenge to their competitors. some will influence the industry as they disintegrate others may be reaching a point where either outcome is possible. Wherever the spectrum lies, the airlines will be the major talk of 2013.

Delta Airlines: Delta Airline's purchase of a Pennsylvania oil refinery is a hedge against rising crude oil prices and high fuel prices. The purchase of the refinery is expected to fetch the airline $300m in savings. Also the airline's purchase of 49% stake in Virgin Atlantic is expected to give the airline more access to London Heathrow Airport. The airline is at the forefront of the shake up in the US regional airline industry where it wants to pull out 200 out of 325 50-seater aircraft in its network by 2015. In 2013, interest will be on how the airline will carry out the proposed plan.

Southwest Airlines: Southwest Airlines acquired Air Tran in May 2011. In 2013, the real impact of the purchase will be felt. For the first time, passengers will book a single itinerary  ticket connecting both Southwest and Air Tran network. It is expected that it would boost the airline's revenue and give it a competitive advantage. The main challenge is that the airline must face is to respond to cost cutting that American and other carriers have achieved through bankruptcy protection.

Southwest Airlines acquired Air Tran in 2011

American Airlines: American Airlines is likely to emerge from Chapter 11 bankruptcy protection in 2013. But in what form will it emerge? US Airways is pushing for a merger but the airline's management is insisting that it should stay as a stand alone carrier focused on its high value business routes from hubs such as Chicago O' Hare, Miami, Dallas/Fort and Newyork. A merger with US Airways will create a strong presence in the East coast and Mid West, Europe and Latin America. American Airline's 3 trade unions have their support behind the proposed merger. They stated that the carrier cannot compete without the merger with US Airways

American Airlines is expected to return from bankruptcy in 2013

  Pinnacle Airlines: Pinnacle Airlines will be the focus of the regional airline industry in the US in 2013. The airline filed for chapter 11 in April 2012. The airline's reorganization program will have an impact on the future of rival regional carriers like Skywest and Republican Airways as both airlines are anticipating a reduction in the airline's operation. Plans by Delta Airlines to cut its regional operations will have an Impact on Pinnacle and the carrier has already shed its contract with other major carriers. If the airline's pilots agree to a concession there will still be a future for it. It is likely that the carrier will be a victim of consolidation.

Delta's Plan to cut its regional operations will have an impact on Pinnacle's operations

 Hawaiian Airlines: The coming 2013 will be a period for international growth for Hawaiian Airlines as it continues to look at the Pacific rim nations for new opportunities. It will launch flights from Taiwan and New Zealand in 2013 and no one will be surprised if new destinations are added by the airline. It is sequel to its expansion in Japan, Korean and Australia. It part of the airline's plan to reduce its dependance on heavy competitive routes from western US to Hawaii. The airline is looking forward to increase its coverage on the local market as it plans to launch a turboprop airline

Hawian Looks forward to expand its operations as it plans  launch its turboprop subsidiary

Westjet: Westjet is looking to give its main rival, Air Canada a good run for its money next year. The launch of its feeder carrier, Westjet Encore is sure to heighten domestic operation. Encore intends to reach smaller cities and the carrier says its fares could be 50% dip below that of what its rivals use to charge on comparable routes? What could a price war result? The question will be answered when Encore is launched in second half of 2013. What seems certain is the commitment of Westjet to the venture with orders for 20 Bombardier Q400s as well as 25 options. The carrier has being vocal over the advantages Encore has to offer over its competitors and it is up to the consumers to decide.


to be continued                                                                                                  Source: Aviation Week