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Airline Divisions Legal?  
User currently offlineAirplanetire From United States of America, joined May 2001, 1809 posts, RR: 2
Posted (13 years 10 months 4 weeks 1 day 14 hours ago) and read 1194 times:

Would it be allowed for an airline to have certain divisions? For instance, let's take Bob Airways based at JFK. They are a US airline, so thus an American company. Bob Airways wants to expand to Europe beyond the destinations that can fill a plane from the US to Europe such as CDG or FRA. Bob Airways wants to fly to smaller destinations. Could Bob Airways start a division of Bob Airways, Bob Airways Europe, based in FRA? Then let's say that Bob Airways wants to set up other divisions, Bob Airways Austalia (SYD), Bob Airways Asia (NRT or BKK), Bob Airways Africa (CAI or Nairobi or JNB), Bob Airways Middle East (DXB), etc. Could Bob Airways do that?

9 replies: All unread, jump to last
User currently offlineB747-437B From , joined Dec 1969, posts, RR:
Reply 1, posted (13 years 10 months 4 weeks 1 day 14 hours ago) and read 1188 times:

It depends on the restrictions on foreign ownership imposed by each individual jurisdiction. Even though Bob Airways Europe may be a European entity, its ownership structure would still be American and that is where restrictions begin the creep in.

User currently offlineETA Unknown From Comoros, joined Jun 2001, 2299 posts, RR: 0
Reply 2, posted (13 years 10 months 4 weeks 1 day 11 hours ago) and read 1149 times:

In theory, if Bob was a dual national, he may be able to circumvent some tof the restrictions, but that would then open up another line of questioning.

User currently offlineSpark From United States of America, joined Mar 2002, 431 posts, RR: 0
Reply 3, posted (13 years 10 months 4 weeks 1 day 10 hours ago) and read 1135 times:

Isn't this fairly common practice in Europe. KLMuk, and DuetscheBA all come to mind. Aren't there BA Franchises that do more of the same thing. Obviousily it would be a lot more difficult for an European Airline to start an American Division, or Visa-Versa.

User currently offlineDoug_Or From United States of America, joined Mar 2000, 3586 posts, RR: 3
Reply 4, posted (13 years 10 months 4 weeks 1 day 8 hours ago) and read 1111 times:

I always assumed KLMuk and such were similar to regional affiliates, owned in their own country and contracting out to the respective airline.

When in doubt, one B pump off
User currently offlineJhooper From United States of America, joined Dec 2001, 6210 posts, RR: 11
Reply 5, posted (13 years 10 months 4 weeks 1 day 8 hours ago) and read 1098 times:

Isn't Continental Micronesia a variation of what you're talking about?

Last year 1,944 New Yorkers saw something and said something.
User currently offlineBa777-236 From Canada, joined Oct 2001, 674 posts, RR: 4
Reply 6, posted (13 years 10 months 4 weeks 1 day 8 hours ago) and read 1097 times:

You mean like what Richard Branson has done? (ie Virgin Atlantic in England and Virgin Express in Australia)

I like British Airways! I'm not sure why, but I do! ;-)
User currently offlineGdabski From Poland, joined Oct 2001, 423 posts, RR: 0
Reply 7, posted (13 years 10 months 4 weeks 1 day 3 hours ago) and read 1082 times:

Are KLMUK and DeutscheBA actually British and German companies respectively? And aren't you allowed to established a company anywhere within the EU when you're a EU citizen?


User currently offlineSingapore_Air From United Kingdom, joined Nov 2000, 13756 posts, RR: 18
Reply 8, posted (13 years 10 months 4 weeks 1 day 3 hours ago) and read 1072 times:

I think that it is. Every airline (major ones) have divisions and subsidiaries.

Singapore Airlines for example has many divisions/subisdiaries. Here are the list of primary (direct) subsidiaties.

Singapore Airlines Limited owns:
87% of Singapore Airport Terminal Services Limited
100% of SilkAir (Singapore) Private Limited
56% of Abacus Travel Systems Pte Ltd
87% of SIA Engineering Company limited
100% of Singapore Airlienes Cargo Private Limited
100% of SIA Properties (Pte) Ltd
100% of Singapore Flying College Pte Ltd
100% of Star Kingdom Investment Ltd
100% of Sing-Bi Funds Private Limited
100% of Auspice Limited
100$ of Singapore Airlines (Mauritius) Ltd
100% of Singapore Aviaion and General Insurance Company (Pte) Limited
76% of Singapore Airport Duty-Free Emporium (Private) Limited
51% of Cargo Community Network Pte Limited
51% of Aviation Software Development Consultancy India Ltd
50% of Service Quality (SQ) Centre Pte Ltd
49% of Virgin Atlantic Limited
35.5% of SIngapore AIrcraft Leasing Enterprise Pte Ltd
21% of Asia Leasing Limited
20% of Evergreen Air Cargo Services Corporation
20% of Ritz-Carlton, Millenia Singapore Properties Private Limited
4.6% of Air New Zealand

Anyone can fly, only the best Soar.
User currently offlineN79969 From , joined Dec 1969, posts, RR:
Reply 9, posted (13 years 10 months 4 weeks 19 hours ago) and read 1039 times:

In the US, the carrier must be a US citizen to operate in the country. The legal test is complicated and rests own the ownership of the stock and the citizenship of the managers and directors of the company. Continental "Air Mike" is based in Guam so it has no such problem.

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