EasyJet founder to launch low-cost airline in Africa

A new budget airline backed by easyJet founder Stelios Haji-Ioannou will soon take to the African skies, promising to bring low-cost flights to millions of people in the continent.

Dubbed Fastjet, the no-frills carrier is expected to launch in three to four months, aiming to cash in on Africa's robust economic growth and a growing appetite for travel by its burgeoning middle class.

The move comes after Haji-Ioannou's easyGroup teamed up earlier this month with pan-African conglomerate Lonrho to create the low-cost carrier. Lonhro, owner of budget airline Fly540, has agreed to sell its aviation business to investment firm Rubicon Diversified Investments, in which easyGroup will hold a 5% stake.

The new business will start operations using Lonrho existing network in Ghana, Kenya, Tanzania and Angola, before expanding to more markets in the future.

"These four countries are currently experiencing great GDP growth, along with oil and gas discoveries and developments," says Ed Winter, chief executive of Fastjet.

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STORY HIGHLIGHTS

• EasyJet founder Stelios Haji-Ioannou has joined forces with Lonhro to launch Fastjet
• The low-cost airline will operate from Ghana, Kenya, Tanzania and Angola
• Low prices will democratize air travel in Africa, say Fastjet executives
• Challenges include airport infrastructure

Qantas, China Eastern Plan Cheap Flights for Asia Middle

Qantas Airways teamed with China Eastern Airlines Corp. to form a budget carrier in Hong Kong, the Australian airline’s fourth Asian hub, as it taps faster growing overseas markets.

The two carriers will invest as much as $198 million in equally-owned Jetstar Hong Kong, which will begin flights with three Airbus SAS A320s next year, according to a statement today. The fleet will grow to 18 planes by 2015, it said.

Qantas Chief Executive Officer Alan Joyce will challenge Cathay Pacific Airways Ltd. in Hong Kong as he targets Asian markets to help turn around unprofitable international operations. The new venture will let the carrier bolster services in Greater China, where annual passenger numbers may double to 800 million by 2020, said Bruce Buchanan, chief executive officer of Qantas’s Jetstar Group.

Easyjet opens new bases in Toulouse and Nice

EasyJet has increased its presence in France with two new bases in the southern cities of Toulouse and Nice, in an attempt to solidify its position as France’s second largest carrier and continue its development towards becoming a pan-European airline.

Easyjet will base an A319 aircraft at each of the French airports later this month, allowing the launch of 12 new routes. This brings the total number of routes served by the carrier from French airports to 170, including eight daily services from Paris to both Toulouse and Nice.

Easyjet already has bases in Paris Orly, Charles De Gaulle and Lyon, contributing to a 12 per cent market share in France.

Business Traveller was on board the inaugural flight from London Luton to Nice on a specially painted plane with an orange map of France emblazoned with the statement ‘La France au coeur’ (France in our heart).

Asia's Aviation Boom Comes With Rising Competition

While Europe's debt crisis and global economic uncertainty are threatening airline profitability in the West, in Asia airlines are experiencing relatively strong growth.

According to forecasts from the International Air Transport Association (IATA), carriers based in Asia Pacific will make profits of $2.1 billion in 2012. That's 60 percent of the total profits of $3.5 billion predicted for the global airline industry.

But below the surface, there's a growing risk to the health of the region's airline sector from increased competition. Airlines in Asia are adding capacity at such a rapid clip on international routes that industry watchers are growing alarmed.

Airline CEOs will be meeting on the sidelines of the Singapore Airshow this week to discuss the challenges facing the sector.

Lufthansa outlines €1.5 billion cost-saving scheme

Lufthansa is aiming to make cost savings of €1.5 billion ($1.9 billion) every year until 2014 through a large-scale restructuring programme which will entail the "partial dismantling and reconstruction" of the entire group.

Chief executive Christoph Franz presented the three-year efficiency improvement scheme - named SCORE (synergy, costs, organisation, revenue and execution) - to the airline's staff this week.

Apart from slashing costs and reducing overheads "across all divisions and [group] airlines", Lufthansa wants increase co-operation between its carriers to avoid duplicated effort, wrote Franz in the company's internal employee newspaper "Lufthanseat" today.

Traffic in the European "neighbourhood", including services operated by Lufthansa, Austrian Airlines, Brussels Airlines, Germanwings, Swiss International Air Lines, as well as regional subsidiaries and partners, will be optimised, said Franz.

Just a week after Malev’s demise, many airlines have already responded with new Budapest services

What a difference a week makes: A week later, on the very day of Malév’s collapse, Ryanair said it would open a base offering a total of 31 routes. Wizz Air has also announced 10 routes – others including Lufthansa, SmartWings and Aegean have also all been quick to cherry-pick ready-made routes.

Just one week on from Malév’s collapse Budapest airport is already seeing promising signs of recovery as airlines have been quick to respond to the opportunities presented. anna.aero has compiled a handy summary table of those services that have been announced in the last seven days. There are likely to be further additions in the coming weeks.