I am based in Singapore in Pearls. singapore is a country that does not allow foreign investment. My competitor in Singapore is GARUDA ASIA AIR. Currently the biggest shareholder of that airline is based in another country, Malaysia. However, that airline was still able to carry passengers despite the restricted traffic right issue. Can someone explain to me?
Take a look at its Parent Company page:-
SS PLC[color=#333333][font=Verdana, Arial, Helvetica, sans-serif][size=2] now has the largest stake in [/size][/font][/color]GARUDA ASIA AIR[color=#333333][font=Verdana, Arial, Helvetica, sans-serif][size=2]and thereby took over control of the company.[/size][/font][/color]
[color=#333333][font=Verdana, Arial, Helvetica, sans-serif][size=2]
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Basically the parent company has bought out this airline, as a result it takes over the traffic rights of said airline even though it isn’t based there.
Right. Is this a way out for big airlines with lots of cash - if they choose not to start in a Foreign Investment company?
I’ve always assumed that this would not be allowed. But based in DXB, I could become a majority shareholder in a UK airline, and control that airline too without effecting traffic rights of the UK airline?
Perhaps a staff member could clarify?
The airline right should be in Malaysia and nowhere else - this happens in some cases of transactions on the stock market but the traffic rights should be in Malaysia - as they are right at this moment!
SK, I don’t get you meant. Cause the airline had been taken over for more than one week. But their flights between Singapore and Indonesia is still fully booked. Even now their flights are still fully booked till 8 nov 12. If they is restricted traffic rights, there should be no passengers for that route at all. Am I missing out something?
I checked the holding structure of them. It’s fairly complicated. Is it possible that they open up a subsidiary in Singapore to acquire the company and get traffic rights?
(deleted by sk - no public reporting - please use the support or the reporting function within the game!
that’s what the “report airline function” and the support@airlinesim.aero email address are for. thank you.
So, Is there any possibility to save traffic rights when taking control over company, based at the region where your holding don have traffic rights? creating the subsidiary? controlling the largest stake less then 50%? How, for example, in real life Singapore airlines controls 48% of CSA and CSA continue operations?
To the other hand, in real life, most markets and countries allow foreign companies to their markets in the form of creating a local company with foreign capital. The main condition for this in many countries - increased minimum capital compared with residents.
Hello
You can take the control of another airline, but if the country is different, you won’t get passengers on international routes, except to “open markets” listes here http://en.airlinesim.aero/wiki/index.php/Tutorial/1.5/Expert_Knowledge/Traffic_Rights
That means for example that if you are an airline based In Germany that acquires a Swiss one, you won’t be able with the Swiss one to get passengers on the Zurich-New York route
Cheers
Hello,i operate an airline (holding) in ellinikon "Thermos Airlines" based in MPM (Mozambique). I had an aircraft with the following routes planned.
MPM-LVI (via LUN) (Zambia) and MPM-VFA (via HRE) (Zimbabwe). All flights have zero bookings, Zimbabwe has unrestricted market access while Zambia has not,so i should have bookings to to Zimbabwe but this is not happening...
Why are you hijacking and reopening a 2-year old thread? You should open your own threa for this, much easier for you and for those whor espond to you.
wthat are you talking about? finally someone, who actually figured out the apparently extremely complicated search function and actually uses an existing thread on a topic rathr than opening the 105.000th thread with the imaginative topic "HELP !!!!"
now, regarding the answer: the Yamoussoukro Decision grants you 5th freedom. you can not transport pax within another country other than your home country, only between other countries of the agreement, if the via flight starts or ends in your legal home country. whether or not any of those countries are investment open has nothing to do with this.
please read up on the "traffic rights" segment on the wiki.
Thanks for the quick response,i have already read "traffic rights",i will try something else and see if it works.
You may want to use the route evaluation menu, to check interactively the traffic rights situation for your routes and holding. If all is green, then there might simply be no demand for that route?
It is all green indeed but i only get pax to jnb so probably there is no demand to other neighbouring countries.
I have a question on a different note - If your flight’s origin and destination are in the same country, can you have an intermediate stopover in a second country? Examples include:
-
CDG (Paris Charles de Gaulle, France) --> SIN (Singapore Changi, Singapore) --> NOU (Noumea Tontouta, France).
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ANC (Anchorage, USA) --> YVZ (Calgary, Canada) --> ORD (Chicago O’Hare, USA).
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LHR (London Heathrow, UK) --> LOS (Lagos Murtala Muhammed, Nigeria) --> MPN (Mount Pleasant, UK).
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JNB (Johannesburg, South Africa) --> MSU (Maseru, Lesotho) --> CPT (Cape Town, South Africa)
No need to double post...
Hi,
Sure. A French airline is allowed to carry passengers between France and another country. CDG-SIN is a flight from France to another country, and SIN-NOU is a flight from another country to France. So passengers can book any segment of the flight. Same applies to the other examples.
Jan