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Good evening,
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in Europe, please reply to this message. The issue of May 28 is attached.
The newsletter service is also available in German.
Regards
Thomas Jaeger
Chur, Switzerland

Air France (Paris CDG) said it expects demand for flights between Paris and
Marseilles to fall 25% once the French railroads begin offering high speed
train links between the two cities. The TGV to the Mediterranean will also
have an impact on destinations such as Avignon, Montpellier and Nimes. Air
France, has, however, decided to face up to this competition.

bmi British Midland (East Midlands) announced plans to expand the airline's
route network from London Heathrow conditional on using slots it expects
British Airways and its partners will be required to forfeit as BA proceeds
to closer cooperation with American Airlines (Dallas), Iberia (Madrid) and
Finnair (Helsinki).

Austrian Airlines (Vienna) took over the routes to Rome Fiumicino, Nice,
Madrid, Dubai and Male from Lauda Air (Vienna). In return Lauda Air now
flies to Larnaca, Odessa, Timisoara, Ankara and Amsterdam. Austrian Airlines
is now also operating flights to Pristina in Tyrolean Airways' (Innsbruck)
place.

KLMalps/Air Alps Aviation (Innsbruck) changed its name to Air Alps. They're
still searching for new investors to keep the airline flying. The company is
considering to open a new hub at Bolzano, Italy. They want to offer flights
to Rome and main European cities. They started Innsbruck-Zurich service a
few weeks ago. In reaction to the plans of Air Alps, Tyrolean Airways
(Innsbruck) announced to add a third daily roundtrip from Bolzano to Rome
and a new link to Frankfurt via Innsbruck.

Malev (Budapest) said a new restructuring plan could save the loss-making
airline over the coming three years. Planned measures include a 24% cut in
the workforce and canceling certain long-haul services. Separately, Malev
said British Airways (London Heathrow) agreed to cut London-Budapest
frequencies June 4 from three to two daily.

British Airways (London Heathrow) will sell their low cost subsidiary Go
(London Stansted) to the investor group 3i instead of to the current Go
management.

Crossair (Basle) will be leasing two MD-83s to Spanair (Palma de Mallorca)
for the summer season.

Alitalia (Rome Fiumicino) said they're aiming to have an alliance with
another international carrier in place by August. Air France will be this
"international carrier".  Problems identified by Alitalia's Management
include unprofitable international and intercontinental routes, loss of
domestic market share, an inadequate fleet and problems with Milan's
Malpensa Airport.

A British rail commuter has set up his own airline because of frequent
delays on the railways. He formed LinkAir (Exeter) which is offering flights
to London Luton with Cessna Caravan 406 aircraft to other pested
businessmen.

Virgin Express (Brussels) might buy ailing French airline Air Libert� (Paris
Orly). They're planning to transform Air Libert� into a low cost airline.

Russia plans to put more than 1,000 new planes into service by 2015. Which
airlines should buy them?

Transavia Airlines (Amsterdam) is offering a B737-800 for lease.

Olympic Airways (Athens) wants to sell their parked 4 B747-200B.

Alisea Airlines (Catania) is a new Italian charter carrier.

Privatair (Geneva) is erecting an own terminal at Geneva airport. They're
also planning to profitable the buildings of subsidiary Transair in Paris Le
Bourget. It's possible that they're going to order more Boeing Business Jets
because of probable contract with two banks to provide five weekly flights
from London Stansted to New York JFK.


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