Shares in budget airline operator easyJet surged over 6% this Monday on reports that the group could be a takeover target for International Consolidated Airlines Group. Speculation is mounting that British Airways-owner IAG could look to acquire smaller rivals such as easyJet or Portugal's TAP, according to the Times. “Reports that easyJet could be a takeover target for International Consolidated Airlines make perfect sense,” AJ Bell investment director Russ Mould, said. “The pandemic has created concerns about the future of business travel, with companies globally realising they don’t need to hold so many meetings in different locations. It’s far easier, cheaper and more environmentally friendly to hold many conversations over Teams or Zoom than get on a plane. Therefore, companies like International Consolidated Airlines need to rethink their future sources of revenue as they may find that business travel doesn’t match pre-COVID levels. Owning EasyJet would significantly boost International Consolidated Airlines’ position in the leisure market and give it access to many prized airport landing slots."<br/>
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Air Arabia did not even serve Abu Dhabi, home of Etihad Airways, before the pandemic hit. Today, the budget airline is the second largest at the United Arab Emirates hub, and a symbol of the shift underway at some of the Gulf’s busiest airports. FlyDubai, Flynas, IndiGo, and Wizz Air, along with Air Arabia, have all participated in a dramatic share shift to low-cost carriers in Abu Dhabi, Dubai, and — to a lesser extent — Doha. The three cities are the largest airline hubs in the Gulf and traditionally the domains of legacy network carriers Etihad, Emirates, and Qatar Airways, respectively. A new analysis from OAG finds that budget airlines have expanded their share of seats in all three hubs since 2019. The biggest shift has occurred in Abu Dhabi where discounters have gained nearly 19 points of the market for a 25% share this year. Low-cost carriers grew to 25% of seats in Dubai, and nearly 6% in Doha; an 8 point and 1 point share gain, respectively. Over the same period, Etihad lost nearly 20 points of seat share in Abu Dhabi, Emirates 9 points in Dubai, and Qatar 4 points in Doha, according to Diio by Cirium schedules. “It’s clear that while the legacy carriers have built these hubs, largely on the back of long-haul international connectivity, they have paved the way for [low-cost carriers] to now exploit a more established regional market,” according to OAG.<br/>
Jazeera Airways is planning to get around $2b from commercial banks to fund 70% of a deal it has with Airbus for 28 A320neo airliners, the Kuwaiti carrier's chairman told Reuters on Monday.<br/>
Tony Fernandes resigned as AirAsia X's group CEO on Monday, about four months after he was reappointed to the post. In a filing with Bursa Malaysia, the airline said that the resignation was due to Fernandes' "other commitments". The filing did not give any other reason for the resignation. AirAsia X had redesignated Fernandes as its group CEO in July.<br/>
After a more than two-year absence from New Zealand skies, Virgin Australia is resuming flights to Queenstown this month – but the airline has given no indication it will expand to other centres. The airline will commence daily return flights to Queenstown from Sydney and Brisbane from November 2, with five times weekly services between Melbourne and Queenstown to start from November 3. Queenstown Airport chief executive Glen Sowry said the return of Virgin was an “important milestone” as it meant all four airlines that serviced the resort town pre-Covid were now back. “It’s also testament to how much Aussies love our Southern Lakes region that Virgin has chosen Queenstown as the first New Zealand port to return to.” Pre-Covid, Virgin also operated trans-Tasman flights to Auckland, Wellington, Christchurch and Dunedin. The airline would not be drawn on the future of those services, with an airline spokesperson providing a statement that said: “Virgin Australia is delighted to be returning to wonderful New Zealand, with the resumption of services to Queenstown this week.”<br/>