Etihad Airways has announced that they will operate a fourth daily service between Abu Dhabi and Cairo using one of their Boeing 787-9 Dreamliners.

The current three daily flights are operated by Airbus A320s and A321s, citing increased demand on the route.

The schedule that is on offer from Cairo is used to offer seamless East-bound connections through AUH onwards into the Gulf, Indian Subcontinent, North and Southeast Asia as well as Australia.

Mohammad Al Bulooki, Etihad Airways Executive Vice President Commercial, said: Etihad Airways has been serving Cairo since 2004 and today it is one of the largest point-to-point markets on our global network.

This bolstered by the hugely important historic, economic, and cultural ties existing between the UAE and Egypt, and by the large Egyptian community in the Emirates, which numbers over 750,000.

In 2017 Etihad carried almost half a million guests on our multiple daily flights to and from Cairo.

The introduction of the state-of-the-art 787 Dreamliner on the popular morning service from Abu Dhabi will provide guests with the latest innovation and technology, award-winning cabins, genuine hospitality and greater choice.

These upgrades out of Cairo come following a partnership that was signed in April 2018 between Egyptair and Etihad which expanded their codesharing arrangements to include several African destinations.

These such as Ndjamena, Khartoum, Entebbe as well as Dar es Salaam with other destinations such as Abuja, Kano and Asmara all waiting to be approved by the respective governments.

Egyptair places its ‘MS’ code on EY flights operating from Abu Dhabi to Seoul, Brisbane, Melbourne and Sydney, and hopefully subject to governmental approval, on flights to China.

The 787-9 in question features a two-class configuration, offering 28 Business Class studios as well as 271 Economy Seats. The route changes will be in effect by October 28th, 2018. They are as follows:

With Etihad Airways currently hemorrhaging money after the demise of Alitalia and Air Berlin, Etihad is now bringing their costs down even more by reducing flights to Dhaka and other destinations and repositioning aircraft on the more popular routes.

However, this may be something that the carrier might not do for long as the more routes they cut, the more aircraft they are either going to have to reposition or put in storage/sell in order to keep their operations efficient and successful.

Lack of investment that Etihad is now placing into carriers and just focusing on the codesharing agreements is possibly the better solution for the airline to take.

Establish partnerships rather than acquisitions, and Etihad can then further connect Abu Dhabi with other destinations across the world without having to spend even more money trying to acquire majority stakes in an airline.


Tourism Observer

The Italian Government has confirmed receiving three offers to buy the insolvent airline Alitalia, not giving any details regarding these proposals or bidders.

easyJet said on April 10, 2018, easyJet has submitted a revised expression of interest for a restructured Alitalia, together as part of a consortium, consistent with easyJet’s existing strategy for Italy.

Given the nature of the process, the content of the expression of interest is subject to confidentiality, the airline said in a statement and clarified that further updates would be provided in due course.

Lufthansa also presented new plans and ideas of what the German carrier would convey as a New Alitalia.

On top of Lufthansa, a US investment fund in the name of Cerberus Capital Management is also in the list of potential investors who are interested in acquiring some aspects of the carrier.

Alitalia has supposedly had interest from the Air France-KLM group, although they have vividly denied such claim.

The initial report said that the group was going to provide a joint bid with easyJet, but updated plans now show that this is not the case anymore.

Alitalia went into Chapter 11 in May 2017, and the deadline for bids was set on October 16th, 2017 initially.

However, this had been delayed due to current consultations with the political parties in Italy regarding the sale of the airline.

In terms of repayments of bridge loans, these have also been delayed as state commissioners need to weigh up the bids given by the interested airlines.

The mandate of such commissioners is due to expire by the end of the month, thus putting pressure on the commissioners to make their minds up about the bids.

Although progress is somewhat evident, there is still an issue with the airline’s internal affairs.

With Alitalia being a massive problem within Italian politics, the system itself is also in crisis. The national election which took place in March resulted in a hung parliament.

Political parties have not come together yet to form an overall minority government, which could potentially extend the deadlines further if no decisions are made.

At the moment, with the political parties being notified about updates, a deal may not be made until the government is formed and solidified following such a hung parliament.

Even before the hung parliament occurred, the demise of Alitalia became a significant political issue.

With the government not being able to keep to deadlines and making a decision towards the sale of the ill-fated carrier, a decision must be made in the short-term to keep the airline fully operational.

Overall, the Alitalia/Italian Government situation is going to put significant pressure on the parties involved to push for a collective solution that will benefit all parties.

Seven new envelopes last year arrived at the Alitalia Administrators office in Rome with binding offers from interested investors.

The Italian carrier released a statement saying that these offers will be analyzed to determine whether they meet all the criteria to move forward.

Currently, Lufthansa and EasyJet remain in pole position to acquire the assets of the bankrupt Italian carrier.

According to a story published in the Italian newspaper Il Sole 24 Ore, the German group is interested in taking part of Alitalia’s assets, including its fleet, slots, and some of its crew, and might have a plan to re-launch Alitalia as an all-new airline.

Lufthansa, who recently took over the majority of Air Berlin’s assets, would be interested in acquiring Alitalia’s global network, including their point-to-point slots in both the domestic and regional markets.

The German carrier’s CEO, Carsten Spohr, said on Thursday that Lufthansa would be interested in taking over Alitalia only if it were possible to make a fresh start with it.

Spohr added that if there were a chance of creating a new Alitalia, as Europe’s number one (carrier) Lufthansa would certainly be interested in the talks.

Lufthansa’s initial offer, however, was deemed too rough by the Italian airline, given that it proposed a cut of at least 50% of Alitalia’s workforce—unacceptable for both the Italian government and the carrier.

EasyJet, on the other hand, would be interested in taking some slots and several aircraft.

The low-cost-carrier released a statement stating that they have submitted an expression of interest in certain assets of a restructured Alitalia, consistent with easyJet’s existing strategy for Italy.

Given the nature of the process, the content of the expression of interest is subject to confidentiality.

There is no certainty at this stage that any transaction will proceed and easyJet will provide a further update in due course if and when appropriate.

With today’s announcement, five more parties are bidding to take some assets from Alitalia. Seven envelopes have been delivered today at the Atlante Cerasi associate notary’s office in Rome.

The special commissioners of Alitalia will now begin evaluating the envelopes, said Alitalia in a public statement.

As of today, Alitalia has received over €1 billion of the capital injection by the Italian government.

This has created some controversy, as the Italian taxpayer continues to fund a failing airline that hasn’t shown any signs of getting back on a profitable path.

The head of the powerful industrial employers’ federation Confindustria, Vincenzo Boccia, said that we will need to see who buys it and who pays for it.

I do not think Italian citizens are willing to accept paying for on behalf of and in the name of others. Alitalia needs to be competitive and appeal to investors, he said.

Even though Alitalia filed for Chapter 11 in May, the airline’s operations remain stabilized.

Now that seven binding offers have been received, a long road ahead of negotiations and internal discussions will determine the path of the ill-fated airline.

The Italian government has extended the deadline to receive improved bids and loaned an additional €300 million so that the airline remains operational.

New routes, and a new plane, are about to join Alitalia despite its financial woes.

On September 1, the airline took take delivery of its first Boeing 777-300(ER). The ex-Air Austral Triple-Seven will be deployed on the airline’s flights from Rome (FCO) to Buenos Aires (EZE)—one of the most profitable and busy routes in Alitalia’s network.

According to Routes Online, the aircraft will begin scheduled services to EZE on October 30, 2017.

Moreover, Alitalia launched three weekly flights to the Maldives on the last day of October 2017.

The departing flight out of FCO will leave at 21:45 and arrive the following morning at Male International Airport (MLE) at 11:05 every Tuesday, Friday, and Saturday.

Similarly, New Delhi (DEL) will be linked to Rome on a daily basis starting on October 29, departing FCO at 14:40 and arriving in DEL at 02:40.

Today, Alitalia has a fleet of 22 Airbus A319, 42 A320, 12 A321, 14 A330-200, 11 Boeing 777-200(ER), and one 777-300(ER).


Tourism Observer

The airline has asked affected passengers to switch to an alternative travel date between December 25 and January 23, or be refunded.

Etihad Airways will scrap flights to Tehran on January 24, the latest route to be dropped as the Abu Dhabi airline pursues a strategy review.

The airline launched the review in 2016 that has also seen it sell or step away from investments in foreign carriers.

Etihad's five weekly flights to Iran's capital will be reduced to two a week between December 25 and January 23, before it suspends the route entirely on January 24, an airline spokeswoman said.

She declined to say why the route was being suspended, but said in a statement that affected passengers could switch to an alternative travel date between December 25 and January 23, or be refunded.

Since launching the strategy review, Etihad has said it would cut flights to San Francisco and Dallas-Fort Worth in the US.

The airline has regretted for inconvenience caused to passengers with existing bookings.

Passengers holding bookings for travel up to January 23 and affected by the schedule change will be re-booked with an alternative travel date subject to availability or offered the choice of a full refund.

Passengers with bookings from January 24 will be offered a full refund.

Britain's top defence buyer Tony Douglas will join Etihad next month as its new group chief executive, as the airline rethinks its rapid expansion strategy.

Two of Etihad's major foreign investments, Air Berlin and Italy's Alitalia, filed for administration this year.

Douglas, who joins Etihad from Britain's Ministry of Defence, has previously served as chief executive of Abu Dhabi's airport company.

Etihad has made few details public about its strategy review, which since being launched has seen the departure of its James Hogan, its group chief executive who led the airline for a decade.



Tourism Observer

Lufthansa has expressed interest in acquiring a number of planes from German carrier Air Berlin after it filed insolvency recently upon the withdrawal of funding from its main shareholder Etihad, media reports said.

Initial talks between Lufthansa and Air Berlin took place on Wednesday, focused on parts of the Air Berlin group.

Thomas Cook’s German leisure airline Condor is also interested in acquisitions. Condor is in the process of preparing a concrete offer, a source said, adding Condor was interested in mainly short-haul routes, and also some long-haul ones.

Interested parties are looking into parts of Air Berlin’s business, including aircraft and crews. A likely deal could see 80 planes going to Lufthansa, 24 to Condor and 40 to easyJet.

Air Berlin continues to fly after the German government stepped in providing a bridge loan of 150 million euros.



Tourism Observer

Despite a government guarantee of EUR150 million, Air Berlin (AB, Berlin Tegel) may soon find itself having to cancel flights, according to German newspaper Suddeutsche Zeitung.

Citing insider information, the news site says that Air Berlin will be unable to maintain parts of its network as it does not have access to revenue generated by ticket sales.

With that revenue in escrow, the troubled carrier is unable to pay suppliers and airports which are asking for upfront payment.

The airline is currently undergoing restructuring in German bankruptcy courts, following the decision by its largest shareholder, Etihad Airways (EY, Abu Dhabi Int’l), to stop funding its operations.

Air Berlin’s Austrian subsidiary Niki (HG, Vienna) is expected to be sold to Air Berlin rival Lufthansa (LH, Frankfurt Int’l), which is also interested in picking up LGW – Luftfahrtgesellschaft Walter (HE, Dortmund), or alternatively to easyJet (U2, London Luton) or Condor (DE, Frankfurt Int’l).

easyJet (U2, London Luton) in particular is eyeing Dusseldorf slots according to the report.

Chief executive of Ryanair (FR, Dublin Int’l), Michael O’Leary, has also thrown his hat in the ring to buy the German carrier.

While it maintains normal operations, Air Berlin is currently still serving fifty-four destinations across twenty-two countries with its mixed fleet of 114 aircraft.




Tourism Observer

There was a significant increase in the number of passengers processed through Larnaka and Pafos airports and a further boost to Cyprus’ connectivity, with the entrance of new airlines and the introduction of new routes, according to Hermes Airports’ official data for 2016.

More specifically, a total of 8,974,163 passengers travelled through the airports in 2016, 1,365,000 more than in 2015, recording an 18% increase. There was a 24.5% rise at Larnaka airport and 2.6% at Pafos airport. According to Hermes Airports’ data, the most important hikes were recorded by the markets of Russia (+47%), the United Kingdom (+13%), Greece (+14.5%) and Israel (+47%).

Moreover, the Cypriot airports’ network was further enhanced by the operation of 10 new airlines and the introduction of 21 new routes, thus boosting the island’s connectivity.

The new airlines, Cobalt Air, Pobeda, TUS Airways, Ellinair, Air Berlin, Azur Air, Yan Air, Wind Rose, Alitalia and Israir, carried some 428,000 passengers, while an increase in the number of flights to existing routes led to an additional 919,000 passengers.

Commenting on the numbers, Hermes Airports’ Chief Executive Officer Eleni Kaloyirou said that 2016 ended on a high note. These results, she noted, “have a direct positive impact on Cyprus’ economy and tourism”.

She stressed, however, that “they do not allow for complacency” and that “the coordinated efforts by Hermes as well as other tourism stakeholders must continue and intensify”. If this is the case, Kaloyirou estimated that this upward trend will continue in 2017.

Despite the surge in tourists, restaurants, clubs, taverns and souvenir shops in Protaras are emptier than ever. Three months into the tourist season and yet owners of tourist businesses in the area have expressed their disappointment.

According to Petros Assia, the president of leisure businesses in Protaras, this phenomenon has been very common in the last five years.

“Although the streets, beaches and hotels in Protaras are full, the rest of the businesses are empty, which has a massive impact on the tourist industry in Cyprus”, said Assia. He added: “I don’t see the situation improving for the rest of the summer months”.

Assia highlighted that this trend is most noticeable in the areas where most “all- inclusive” hotels are located. He said that in other areas with less all-inclusive’ services available, the tourist influx at businesses is much better.

“If this all-inclusive trend is not properly monitored and criteria are set to not only improve it and at the same time protect the rest of the tourist industry, in a few years the climate will be non-reversible,” Assia said.

“This will mean that Cyprus will be just offering hotel services and lacking in the rest that the tourism industry has to offer”. All-inclusive hotels, which increase every year at an alarming rate, offer not only meals but also transportation services and souvenir shops, so tourists don’t spend any money on any other services outside the hotels.

“That is why most of the other businesses in the area are on the brink of bankruptcy”, said Assia. “The lack of profit that the businesses are currently experiencing means that there is no money for upgrades and renovations, which makes them less competitive”.

Assia argued that tourists who visit the island come on a tight budget, and choose to use public transport, do not visit any bars or restaurants or spend any money on shopping.

All-inclusive hotel holidays, especially in Paphos, have become a reality in Cyprus but pose risks for the sustainability of tourism, deputy director general of the Cyprus Tourism Organisation Annita Demetriades said in June 2016. The majority of hotel beds in Paphos are all-inclusive.

“A large number of hotels are offering all-inclusive holidays but negative economic and social effects have been observed in the local community at entertainment establishments, supermarkets, souvenir shops and for excursions,” she said.

To improve the above situation, the CTO, the Cyprus Sustainable Tourism Initiative and the Travel Foundation UK, commissioned the Brighton Hospitality Research Group (BHR) from Brighton University, to further investigate the matter with a view to identifying incentives that could push tourists in Paphos to spend more money and time outside of the hotels.

According to the main conclusions of the study, it was found that among the tourists there was a lack of reliable information in relation to the activities they could engage in outside the hotel complex, and that businesses with something to offer found it was difficult to find a way of promoting what they had to offer.

President of the Cyprus Sustainable Tourism Initiative Philippos Drousiotis, said: “In Paphos, and all over Cyprus in general there is a need to ensure that tourists know the destination and what it has to offer them.”

Travel industry players heading to the world's biggest tourism trade fair in Berlin next week could face flight disruptions after ground staff at the city's two airports voted in favour of strikes in a pay dispute.

Labour union Verdi said on Friday that 98.6 percent of balloted workers at Schoenefeld and Tegel airports were in favour of industrial action.

Verdi wants an increase in pay for ground staff to 12 euros an hour from about 11 euros as part of a one-year collective agreement. Workers have walked out several times in recent weeks, forcing the cancellation of more than 300 flights.

The union has described as insufficient management's offer of a four-year deal with annual pay rises of 1 percent, about 10 cents an hour.

The employers, a group of airport ground services providers, said in a statement that their goal remains to find a solution at the negotiating table. Verdi says the employers have until Tuesday to improve their offer.

The ITB fair in Berlin, which starts on Wednesday, attracted 120,000 trade visitors last year and will draw airline and tour operator executives as well as ministers from countries including Tunisia, Egypt and Turkey. The fair runs to March 12.

Berlin's airports are served by carriers including Air Berlin, Lufthansa, easyJet and Ryanair, among others.

Verdi is also negotiating pay for workers at other airports in Germany, including Stuttgart, Frankfurt and Cologne.

In Stuttgart it had called for a walkout by ground staff from 3.30am local time (0230 GMT) on Friday. Employers' group SGS said there were no strike-related flight cancellations by midday, though some passengers faced delays at check-in counters.

Ground staff jobs include the checking in of passengers, loading and unloading planes and directing aircraft on the tarmac.

Bombardier Commercial Aircraft congratulated Air Berlin PLC of Berlin, Germany on its lease of three new Q400 aircraft from GE Capital Aviation Services (GECAS). The Q400 aircraft, part of GECAS’ order book of five announced on December 31, 2014, will increase the Air Berlin Q400 aircraft fleet to 20.

“The Bombardier Q400 turboprop is a perfect choice for our regional routes,” said Stefan Pichler, Chief Executive Officer, Air Berlin. “It has replaced jets on thin routes that don’t require the capacity of larger jets; it allows us to increase frequencies on some routes at less cost than a jet; it flies point-to-point between smaller city pairs; and it feeds our major hubs. It does all of these things economically, reliably, and with the environmental sensitivity that is vital in Europe.”

“The demand for economical turboprops continues to expand and we are pleased to enter into this new lease with Air Berlin,” said Alec Burger, President and Chief Executive Officer, GECAS. “Air Berlin recognizes the many qualities the Q400 aircraft offers in terms of operating efficiencies, performance and economics.”

“Air Berlin’s operations illustrate the capabilities and qualities of the Q400 aircraft that make it uniquely suitable for diverse operations, and a valuable asset in the portfolio of aircraft leasing companies,” said Fred Cromer, President, Bombardier Commercial Aircraft. “We are confident that leasing companies and Q400 turboprop operators will find many more opportunities to work together for their mutual benefit.”

About Q400 aircraft
Designed as a modern, 21st-century turboprop, the Q400 aircraft is the most recent development in the Q Series family of aircraft. It provides unmatched performance, operational flexibility and passenger comfort. In addition to the standard single-class configuration, Q400 aircraft are available with an optional dual-class interior for enhanced passenger comfort; in an optional extra-capacity configuration with up to 86 seats for high-density markets; and in a combi configuration.

Thanks to its combination of turboprop attributes, jet-like features, industry-leading passenger experience and environmental footprint, the Q400 aircraft is exceptionally versatile and can be adapted to a variety of business models. By offering a 30 per cent reduction in fuel burn over the jets it often replaces, the Q400 aircraft radically reduces carbon emissions and increases cost efficiency. Its high-speed cruise -- 160 km/h faster than conventional turboprops -- places the aircraft’s flight time within minutes of jet schedules, at the same seat cost as larger single-aisle jets. Its large propellers operate at a lower RPM, generating more power with less noise and making it a friendly option for city centres.

The Q400 aircraft family includes over 60 owners and operators in almost 40 countries worldwide and the worldwide fleet has logged more than 6 million flight hours. The aircraft has transported more than 370 million passengers worldwide. Long recognized as a high-value asset by operators, the Q400 aircraft is now also attracting growing interest from the leasing community.

Bombardier has recorded firm orders for a total of 547 Q400 aircraft.

About Bombardier
Bombardier is the world’s leading manufacturer of both planes and trains. Looking far ahead while delivering today, Bombardier is evolving mobility worldwide by answering the call for more efficient, sustainable and enjoyable transportation everywhere.

Bombardier is headquartered in Montréal, Canada.

For years, as low cost airlines have grown in Europe, the Lufthansa Group mostly has stuck to what it knows best — carrying business travelers and higher-end leisure customers from its four key hubs, Zurich, Vienna, Frankfurt, and Munich, to key world capitals in Europe and elsewhere.

But like every other legacy airline group in Europe, Lufthansa, which owns Lufthansa Airlines, Austrian Airlines and Swiss International Air Lines, is feeling more squeeze than ever before from discounters like Ryanair and EasyJet. So after making some half-hearted attempts in recent years to try to compete with lower cost airlines, Lufthansa Group is telling investors it finally has an aggressive plan to thwart the competition.

Lufthansa will grow its low cost subsidiary, Eurowings, in the coming years, hoping passengers will choose it over better-known competition. The airline is not new — it started flying in 1994, and Lufthansa Group assumed control about a decade ago — but until recently it has been a bit player, with a fleet and customer base far smaller than Ryanair’s or EasyJet’s.

Now, through proposed deals with Brussels Airlines and Air Berlin, Lufthansa Group is poised to turn Eurowings into the third-largest point-to-point airline in Europe by next summer, according to Group CEO Carsten Spohr. Eurowings, which historically has not flown traditional hubs, has a much different model than the hub-and-spoke full-service airlines of the Lufthansa Group.

Soon, Spohr said, Eurowings could have more than 160 aircraft, possibly giving it enough scale to compete with Ryanair, which is a little more than twice that size. That’s a major jump from the 30 or so aircraft Eurowings had a few years ago, before it merged operations with Germanwings, another Lufthansa-owned discounter. It’s also a big increase from the roughly 90 aircraft Eurowings operates today.

The decision to grow Eurowings comes as Ryanair, Europe’s most powerful discounter, expands into Frankfurt, Lufthansa’s top hub, for the first time. Ryanair made its announcement on Wednesday as Lufthansa Group reported its third quarter earnings and shared plans for Eurowings’ expansion. Lufthansa Group CEO Carsten Spohr told analysts he was watching the development “with great interest,” promising his company would “react as appropriate.”

Eurowings still does not operate from Frankfurt, though that could change at some point. Lufthansa Group has been increasingly willing to permit Eurowings to operate from its hubs, with the carrier expanding in Vienna this year and Munich next year. Eurowings is also beginning to expand its long-haul operation with widebody aircraft.

“Lufthansa has built an unrivaled operation here in Frankfurt that operates probably the strongest network of all European airlines in Europe,” Spohr said. “We are certainly not nervous to take on more competition. As a matter of fact we are competing already in many airports in Europe.”

Having expanded Eurowings by merging its brand with Germanwings, Spohr is now turning his attention to inorganic growth. New aircraft will help Germanwings add point-to-point routes outside of Germany.

“Eurowings is already the market leader in direct traffic in our home markets,” Spohr said. “But we also want to grow in other markets, and for that, we need partners.”

Perhaps most interesting is Lufthansa Group’s recent decision to wet-lease about 35 aircraft from Air Berlin for six years, beginning in March. Under the agreement, Air Berlin pilots and flight attendants will work the flights, but Eurowings will sell tickets and market the operation. It’s a relatively unusual arrangement, with wet-leases more commonly used by smaller airlines and charter carriers, but Spohr notes it’s cheaper than buying new planes.

“We plan to increase our presence in attractive European markets where we may already be active today,” Spohr said about plans for the Air Berlin fleet.

The cash will be vital for Air Berlin, which has been struggling to make money, disappointing Etihad Airways, one of its larger shareholders. And for Lufthansa Group, the deal helps sideline a competitor. That’s important, Spohr said Wednesday, because the European market has seen fewer airline mergers than its U.S. counterpart.

“Another reason why this step is so important is that it helps drive consolidation, and thereby the capacity discipline that’s so urgently needed in the European airline industry,” Spohr said.

Lufthansa Group also plans to transfer some Brussels Airlines aircraft to Eurowings, assuming the company is able to acquire the 55 percent of the Belgium-based carrier it does not already own. Lufthansa Group’s board approved the acquisition in September, and the transaction is supposed to close early next year.

But on Wednesday’s call, Spohr said it is too early to know how Eurowings would use the aircraft. He said the company will first focus on absorbing the Air Berlin aircraft.

“We’ll take the year of ‘17 to jointly analyze the integration to Eurowings when it comes to brand, when it comes to overhead, and which synergies will be realized,” Spohr said.

Germania, legally Germania Fluggesellschaft mbH, is a privately owned German airline with its headquarters in Berlin. Germania operates scheduled and charter flights to destinations in Europe, North Africa and the Middle East from several German bases. It carried 2.5 million passengers in 2009 and had around 850 employees as of summer 2014.

The airline was founded in April 1978 as Special Air Transport or SAT for short in Cologne and started operations on 5 September 1978. with a Fokker F-27. In November 1978, a Sud Aviation Caravelle was purchased from LTU, which was replaced by two used Boeing 727-100 from Hapag-Lloyd Flug (now TUIfly). Germania Express has adopted the IATA code "ST" which was previously used by Yanda Airlines.

In spring 1986, the company was re-organised and its name was changed to Germania on 1 June 1986. For many years, Germania's main area of doing business were charter services for TUI, Condor and Neckermann Reisen – an area in which Germania earned a reputation for offering the lowest prices. In 1992 the registered office was relocated to Tegel. In the same year Germania won the bid for flight services between the old and new capital of Germany (Bonn and Berlin) on behalf of the German government, establishing a short-lived Beamten-Shuttle (German for “shuttle for civil servants”).

In 1998, the airline pioneered the use of aircraft for advertising in Germany advertisers included Siemens and various tour operators. In the same year, Germania began to lease more and more planes to other airlines such as Hapag-Lloyd Express, Maersk and Delta.

In June 2003, Germania started to offer tickets directly to passengers under the brand Germania Express (often shortened to gexx). Following a purchase of a 64% stake in dba (now part of Air Berlin) on 28 March 2005, Germania wet-leased 12 Fokker 100 aircraft to dba. At the same time, dba took over Germania Express's 15 established low-cost routes and thus absorbed Germania's gexx brand. Germania on the other hand, with all aircraft having been leased to other airlines, no longer offered routes directly to passengers.

While the partial merger between Germania and dba was already reversed in the summer of 2005, the cooperation of Germania and dba was extended to 14 Fokker 100 aircraft. Air Berlin chief, Joachim Hunold, was tasked by Germania owner, Hinrich Bischoff, to take charge of the future of the company shortly before Bischoff's death on 11 November 2005. However, an agreement between Bischoff and Hunold was not reached in the end as Bischoff's heirs refused to accept.

Germania relaunched scheduled flights under its own brand name out of Berlin and Düsseldorf beginning with the 2008 summer schedule.

The foundations were laid for the first maintenance hangar at Berlin Brandenburg Airport on 21 March 2011. Germania plans to use the hangar together with Air Berlin once the airport becomes operational.

On 3 March 2014, Germania had its traffic rights for flights to Iraq revoked after an intervention by Iraqi Airways. On 12 March 2014, Germania was allowed to resume all operations to Iraq with the first flight resuming on the 17 March 2014.

In spring 2015, Germania announced to phase out all of their recently refurbished Boeing 737-700s by 2020 to become an all-Airbus operator.

Germania Fluggesellschaft mbH is a private company that had been founded and run for many years by Hinrich Bischoff, who died on 11 November 2005. His wife Ingrid Bischoff was the main shareholder, but she sold it. Germania has its headquarters at Riedemannweg 58, Berlin, Germany.

Germania Technik Brandenburg GmbH is a wholly owned aircraft maintenance subsidiary of Germania, based at Schönefeld.
In October 2011 it was reported that Bischoff had taken over Germania's charter partner Flynext (Flynext Luftverkehrs GmbH) from the Nuremberg-based regional airline entrepreneur Hans Rudolf Wöhrl, Flynext having been set up earlier that year and operating two Airbus A319s on a wet-lease basis for Germania. Now called Germania Express (Germania Express Fluggesellschaft mbH), the new company took over the two Airbus A319s.
Germania Express in turn is the main shareholder of Gambia Bird, a airline based at Banjul, The Gambia. Gambia Bird however suspended operations on 30 December 2014.

In 2014, Germania founded Germania Flug as a new sub-company in Switzerland to operate leisure flights under the newly established HolidayJet brand in cooperation with Swiss tour operator Hotelplan.

Germania offers a wide range of some year-round and mainly seasonal leisure and some metropolitan routes from several German airports. From its bases, scheduled flights to Turkey, Kosovo, Israel and Lebanon are also offered, servicing minorities living in Germany and Austria.

Fleet
As of January 2016, the Germania fleet (excluding the Swiss subsidiary Germania Flug) consists of the following aircraft

Airbus A319-100----------------------------8

Airbus A321-200----------------------------4

Boeing 737-700----------------------------10

Total-------------------------------------22

An appeals court in Germany on Thursday allowed Etihad to continue most of its disputed code share flights with Air Berlin for the winter schedule ending in March, handing the Abu Dhabi-based airline a partial victory.

The court ruled that Etihad should be allowed to continue its code share agreement for 26 international routes but rejected its request to continue code sharing on five domestic German routes.

The court said the international routes could continue as they were in accordance with a bilateral agreement struck between Germany and Abu Dhabi in 2000.

Code share flights allow carriers to jointly market a route, allowing them to expand their network and help fill their planes. Etihad says code shares were a key reason why it invested in loss-making Air Berlin in 2012.

But the German government said in 2014 that some of the previous approved code shares were not covered by a traffic rights agreement between Germany and the United Arab Emirates.

It said late last year it would approve about 29 disputed routes for the final time until Jan. 15, a decision that was backed by a lower court in Brunswick.

Etihad, which owns 29 percent of Air Berlin, had sought to appeal that decision and gain a temporary injunction to allow the code shares to continue at least until the end of the winter flight schedule.

Etihad has asked a German court for more time to continue code-sharing with Air Berlin on 29 routes while it appeals a decision that will block it from operating the flights after January 15.

A court in Brunswick last week said Etihad may not continue to jointly sell tickets for 29 routes operated by Air Berlin, in which Etihad owns a 29 percent stake, because they were not covered by the current air traffic rights agreement between Germany and the United Arab Emirates.

The code-shares are important for Air Berlin as it tries to return to profitability after years of losses. Such deals allow carriers to offer more destinations as part of their network, reaching more customers and thus helping to fill planes and boost revenues.

Etihad on Thursday said it wanted an appeals court to allow it to continue the code-shares, which had previously been approved six times, until at least March 26 and that the Brunswick court had made errors in its interpretation of the agreement.

The carrier said the current bilateral air traffic rights agreement allows Etihad to fly to four destinations in Germany with its own aircraft, plus a further three in Germany via code-sharing, and that the agreement permits flights that go from these points beyond Germany.

"We are convinced that the conditions of the bilateral agreement are clear and we are confident that a correct review of our complaint will lead to the restoration of competition and choice on the German market," Jim Callaghan, Etihad Airways General Counsel, said in a statement.

Etihad has said the code-shares were a key part of its case for investing in loss-making Air Berlin in 2012. While some analysts have queried whether Etihad will stand by Air Berlin, the Abu Dhabi-based airline has said it remains committed to Germany's second largest carrier.

The German transport ministry says it has repeatedly offered to hold talks with the UAE government over the bilateral agreement.

The European Union's transport chief sought more leverage to fight alleged unfair subsidies to airlines based in the Persian Gulf in a bid to create a "level playing field" for EU flag carriers.

European Transport Commissioner Violeta Bulc asked EU governments for authority to negotiate aviation agreements with the six countries that belong to the Gulf Cooperation Council. Curbing any market-distorting aid to operators such as Emirates, Etihad Airways and Qatar Airways would be a goal of the negotiations.

Bulc's request is part of a European aviation package that also seeks deals with China, the Association of Southeast Asian Nations, Mexico, Turkey and Armenia; foresees guidelines on the control of EU airlines; and proposes a regulatory framework for the use of drones. The targeted accords with the Persian Gulf states are a priority because countries such as the United Arab Emirates have fast-growing aviation markets and the issue of subsidies in the GCC has become politically sensitive in Europe.

"While the additional connections provided by the Gulf airlines are welcome, there are concerns regarding the conditions under which they operate," the European Commission said in a statement about the package on Monday in Brussels. "The right way forward" is "to bridge the interests of both sides by creating conditions that will allow further market development and growth based on common rules and transparency."

The commission, the 28-nation EU's regulatory arm, is preparing for a bigger battle over state aid to Gulf-based airlines after national governments in Europe joined European carriers such as Air France-KLM Group and Deutsche Lufthansa in raising the issue.

France and Germany voiced concerns about foreign subsidies earlier this year at an EU meeting where transport ministers debated global aviation competition. The chief executive officers of several European airlines, including Air France-KLM and Lufthansa, wrote a letter to Bulc in December 2014 urging her to step up efforts to tackle government support for Gulf rivals.

Total seats on scheduled flights between the EU and the GCC nations have more than tripled over the past decade to 39 million this year, the commission said on Monday. The UAE has more direct traffic with the EU than China, India and Japan combined, according to the commission.

Bulc said she wants EU governments to give her "open and dynamic" mandates to negotiate aviation agreements with the GCC, which also includes Qatar, Saudi Arabia, Oman, Kuwait and Bahrain. The deals being sought are dubbed "comprehensive" because, in addition to provisions on "fair competition," they would cover such areas as market access, investment and technologies for air-traffic management.

At a press conference, Bulc refused to be drawn on the question of subsidies in the Persian Gulf.

"I am very careful about that," she said. "I don't want to generalize in this matter. And that's exactly why we are proposing comprehensive bilateral agreements where fair competition is one of the clauses. We really want to address it in a very comprehensive level."

As part of any accords, she said the EU would be prepared to ease its 49 percent limit on foreign ownership of airlines based in the bloc in return for reciprocal rights abroad for European companies. Etihad Airways has a 49 percent stake in Alitalia and a 29 percent holding in Air Berlin.

An existing EU aviation agreement with the United States has failed to abolish foreign-ownership curbs because of American defense of the country's 25 percent limit on voting equity, while a European pact with Canada foresees the scrapping of control restrictions once the Canadian government takes the necessary steps.

For investors in countries that have no derogation from the EU's limit on foreign ownership of carriers, the aviation package promises "interpretative guidelines" at a later stage on the enforcement of the cap. The limit is enshrined in a 2008 European law requiring that EU states and/or nationals own more than 50 percent of any airline based in the bloc and "effectively control" it.

In their letter to Bulc a year ago, the group of European airline CEOs also pressed her to ensure that foreign investments in EU-based airlines "strictly comply" with the 2008 legislation. In addition to the heads of Air France-KLM and Lufthansa, the letter was signed by the CEOs of three Lufthansa units: Austrian Airlines, Brussels Airlines and Swiss International Air Lines.

The goal of the planned guidelines is to "bring more legal certainty for airlines and investors," Bulc said on Monday.

RUSSIA has pulled the plug on the country’s debt-laden second-largest airline Transaero after state-controlled Aeroflot backed out of a deal to buy the carrier.

And now, Twitter users are watching sadly as its planes are flown to storage spaces — including one very special aircraft, one with an Amur Tiger painted on it.

Economy Minister Alexei Ulyukayev had warned earlier this month the airline faced bankruptcy after Aeroflot failed to reach agreement with Transaero’s creditors on a restructure of its estimated 250 billion roubles ($5.2 billion) debt pile.

Aeroflot’s board of directors had in September approved the acquisition of a controlling 75-per cent-plus-one-share stake in Transaero for the symbolic sum of 1 rouble in a government-backed deal But the deal foundered on the debt issue and the carrier, hit by three straight years of heavy losses, filed for bankruptcy on October 1 after the civil aviation authority ordered it to stop selling tickets.

After 25 years in the air its 106-strong fleet, mainly composed of long-haul Boeing jets, will be grounded after the federal air transport agency Rosaviatsia ruled its precarious financial state posed a potential threat to passenger safety.

Privately-owned Transaero, which employs some 10,000 staff, started out by leasing Aeroflot aircraft and serving destinations across the former Soviet Union as well as parts of Asia and the Caribbean.

The firm’s woes add to a growing exodus of foreign carriers with the likes of EasyJet and Air Berlin as well as Lufthansa announcing pullouts in recent months, citing weak demand as Russia labours under international sanctions imposed over its actions in Ukraine.

The Russian market has been further hit by the slump in oil prices which has helped provoke the worst drop in purchasing power in 15 years, while the rouble has also seen its value eroded, forcing up costs of fuel and aircraft leasing.

Tuesday evening saw a flicker of hope with a reported bid for a majority stake in Transaero by Vladislav Filev, CEO of S7, Russia’s number-three carrier.

However, the Russian authorities said the distressed airline had been grounded definitively, with Rosaviatsia director Alexander Neradko telling reporters its operating license had been revoked.

Deputy prime minister Igor Shuvalov said the airline “will leave the market” but assured that “passengers will not suffer” as other carriers, led by Aeroflot, would take on its 156 routes.