March 17, 2014
Issue Overview

One Big Difference: Unlike at its rivals, the biggest part of International Airlines Group is also one of the best

Air France

One Big Difference: Unlike at its rivals, the biggest part of International Airlines Group is also one of the best

March 17th, 2014 at 10:22 AM EDT
2 min read

Issue Overview

In many ways, the International Airlines Group, or IAG, is a lot like its chief European rivals Lufthansa and Air France/KLM. Its margins, in fact, were similar to Lufthansa’s last quarter—and not much higher than those at Air France/KLM. It has shorthaul problems and labor cost problems and problems with high taxation and economic stagnation. And itt has similar solutions to those problems: big cost-cutting programs, shorthaul outsourcing to lower-cost subsidiaries and so on.

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