I was wondering. I have the idea for opening a 2nd HUB in the USA. At the moment i am operating from Europe. My plan is to open routes from my european HUB and a new USA HUB. To do so I would like to open a subsidiary of my current company, like a USA-division. When I want to launch my new subsidiary/enterprise I need to fill in my new headquarters of that particularly subsidiary. Lets say for example JFK. Because my legal country of parent company is in Europe, Its says that my new subsidiary will have "Restricted traffic rights". What exactly does this mean for my case? Can I still open all the routes I want in the USA (with my USA subsidiary) or not? What restrictions do I have with restricted traffic rights? Or can I only open a new subsidiary in a so-called investment open country?
Hi FalconSeville.
As you have a european company you can only operate flights from YOUR country (not other eu countries) to the US. So lets say you have a "British" airline, that means you :
Can Fly from any UK Airport to any US Airport:
[color="#2E8B57"]
LHR-EWR,LHR-SFO,LHR-ORD…[/color]
Fly from any US Airport to any UK Airport:
[b]
[color="#2E8B57"]EWR-LHR, EWR-LGW, EWR-MAN[/color][/b]
Fly from an to any EU Airport:
[color="#2E8B57"]CDG-FCO, FRA-OSL, VIE-ZRH[/color]
Anything else is not possible…
(like [color="#FF0000"]EWR-CDG, HAM-CPT, RLG-EZE, SFO-BKK[/color])
So the only option for you would be to open a "focus city" if your home country hosts several larger airports (UK,DE,FR) that you want to connect with a single US Airport.
In this case it is also possible to collect connecting passenger. E.g if you operate the following flights
AC1:[color="#008000"] LHR-EWR[/color][b] [color="#FF8C00"]EWR-LAX[/color]
[/b]AC2: [color="#008000"]LGW-EWR[/color] [color="#FF8C00"]EWR-SFO[/color]
then passengers will actually have the oportunity to fly from LHR to SFO or LAX, but you wont be permitted to transport any US domestic passengers (that fly EWR-LAX or EWR-SFO only)
Thanks for your reply. I just found out that there are open traffic rights in these countries. So this are the only places to open a 2nd HUB outside of the EU.
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Angola, Argentina, Azerbaijan
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Bahamas, Barbados, Benin
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Costa Rica, Cambodia, Cameroon, Colombia
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Djibouti, Dominica, Dominican Republic
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Ecuador
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Gambia, Georgia, Grenada, Guatemala, Guinea-Bissau
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Honduras
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Iraq, Ivory Coast
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Kazakhstan, Kenya, Kyrgyzstan, Kuwait
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Laos, Lebanon (Isreal Holding not accepted)
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Moldova, Mongolia
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Niger
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Pakistan, Panama, Papua New Guinea, Paraguay
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Qatar
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Solomon Islands, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Somalia, St. Kitts and Nevis, St. Lucia, St. Vincent, Sudan, Swaziland
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Tanzania, Togo, Tonga, Trinidad and Tobago, Tuvalu
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Uganda, Ukraine, Uzbekistan
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Zambia
Yes but only if you open a new enterprise as part of your existing venture. So if you own Air ABC in LHR and you want to set up a hub in Tanzania you’ll need to set up a company like Inter Africa with HQ in DAR . The minimum amount of cash required to start such a company are AS$ 3 Million.
Or you should open a hub in Cayman Islands / BVI /Bermuada. These islands are part of UK and they are popular holiday resorts with real life flight to USA.
If I can add a question to this thead. Does this mean that if my airline A is based in the UK and I purchase airline B through stocks and airline B is based in a different European country, who are currently operating flights to and from the US. Does airline B then change legal country and traffic rights are lost?
well. that depends. your general thought is correct. if you purchase the majority of shares, the traffic rights depend on your holding, so you couldn’t transport any pax from country B to the US anymore. however, …
traffic rights depend on the relative majority of the holders’ (plural) origin (not valid for airlines in investment open countries). if, for example, you hold 40% of an airline and control it while the remaining 60% belong to three other holdings (each 20% and all residing in country 
, you have the traffic rights of country B for this airline.
this doesn’t have to be an absolute majority (60% in this example) but could be less than 50% for as long as it’s the relative majority.
I was wondering. I have the idea for opening a 2nd HUB in the USA. At the moment i am operating from Europe. My plan is to open routes from my european HUB and a new USA HUB. To do so I would like to open a subsidiary of my current company, like a USA-division. When I want to launch my new subsidiary/enterprise I need to fill in my new headquarters of that particularly subsidiary. Lets say for example JFK. Because my legal country of parent company is in Europe, Its says that my new subsidiary will have "Restricted traffic rights". What exactly does this mean for my case? Can I still open all the routes I want in the USA (with my USA subsidiary) or not? What restrictions do I have with restricted traffic rights? Or can I only open a new subsidiary in a so-called investment open country?
Apologies for bringing up such an old topic, but would it make any difference if I made a subsidiary as a holding?
I.e. my original holding is in EU, I made a subsidiary in EU which operates flights. That subsidiary establishes a subsidiary somewhere in US (granted, it will not have flight rights), but what if it establishes a subsidiary of it's own? Parent subsidiary will be established in US - would that grant traffic rights?
Original EU Subsidiary Holding
- EU Subsidiary
-- US Subsidiary acting as holding
--- US Subsidiary with flights
Any ideas?
All of these companies will have the traffic rights of the top company.
L.J - Think of it in this way. Each player can have 1 Holding company and regardless of how many subsidiaries you have, all your subsdiaries will have the traffic rights of your holding company.
The one Holding Rule applies only to the last 3 new Servers ... Meigs, Pearls and Gatow ;)
Yes, but if you have multiple holdings on 1 server, you cannot have interlining agreement between them to avoid any monopoly of the player.
So the only way in this hypothetical example for me to control US airline would be to have a majority of 40% of the shares, while other US companies hold the rest of the shares (30% and 30%)?
That's right - but this is "dangerous" as the other may combine their stakes and have control again.
I think this would too risky moreover you may not get an airline where you may be able to buy majority of the shares. If you have got surplus money the options you have got are invest in other airlines, buy airplanes or build terminals. However with these things the return would take years but atleast you will be able to bring down your operating costs.