Mediterranean Airlines PW#1474.

[Med Air]

Mediterranean Airlines Siège
Bâtiment 3
Blagnac - Aéroport de Toulouse
31492 Toulouse Cédex
Haute-Garonne
FRANCE

July 1986 (Mediterranean Airlines board of directors second half analysis).

The month of July was a significant one for the airline. After the previous A310 fiasco that saw over 30% of the airline's value wiped in a month, everyone was keen to shift back into the black and has started by returning the last of twelve leased Boeing 737's to their owners. Since the airline started operations three years ago it has operated 13 Boeings, leased (and bought) from 5 separate airlines. The CEO will always rate these airlines highly, without them Mediterranean would not be where it is today.

Now all of Mediterranean's Boeing fleet has been replaced by short-range Dassault Mercure's, an aircraft purchased to lower overheads. All 737 operations have been replaced by the Mercure, with exception of the Figari (FSC) - Dublin (DUB) route which is now operated by an ATR-42 due to the Mercure's inadequate range.

By October the airline will have acquired 14 new BAe-146-100's from British Aerospace, one of these aircraft will be positioned at each of Mediterranean's 14 (South of France) hub airports. The new BAe aircraft will complement the Mercure fleet perfectly as they will be able to operate longer routes that perhaps don't need the passenger capacity of the Mercure. Likely destinations for the 146 include, Domodedovo, Moscow (DME)/Atatürk, Istanbul (IST)/Copenhagen (CPH)/Palma de Mallorca (PMI).

In August the airline hopes to order between three and six new MD-80 series aircraft. The first three aircraft will be stationed at the airline's newest base at CDG and the later aircraft will be positioned at the airline's, yet to be negotiated, planned base at ORY. The new McDonnell Douglas aircraft (as well as the two new bases) will be part of the airline's first continental expansion outside the Mediterranean region.

The last piece of news is the airline's re-branding decision. Matthew Phillips (CEO) expressed his opinion on the old French logo, making quite clear he thought it was "too out of date and too French for an airline that claims to be going international". The French Aériennes Méditerranéenne logo

has now been replaced by the English Mediterranean Airlines logo (as seen at the top of this report). The type face, Cooper Black, is also noticeably thicker than the original which gives it a fun/laid back appearance which Matthew commends. The final change was the addition of the strap line 'for the right flight', showing there really is only one dedicated airline to choose from if you want to fly to the southern French coast. The new logo will be painted on all aircraft delivered from the start of July, this includes the eight recently delivered Mercures and the to be delivered BAe-146 aircraft. From September aircraft already painted in the old colours will be repainted in the new colours at the airline's Toulouse maintenance hangar.

Thank-you for your ongoing support and commitment, together we will make MED the number one European holiday and pleasure airline.

Written on behalf of Matthew Phillips (CEO Mediterranean Airlines)

[Drysen]

On behalf of CEO and owner of Nordic Air eXpress, Mr Svensson, we would like to wish you good luck in the future! We also like to inform you that Nordic Air eXpress will start to phase out our five MD-82 in the near future. If there is any interest to buy these aircrafts we would be gladly to hear from Mediterranean Airlines. - Hanna Lindén.

[Med Air]

Mediterranean Airlines

23 October 1986

Mediterranean Airlines confirmed rumours today that it was planning base expansion outside of France. In a letter written to Le Figaro, CEO Matthew Phillips said he had plans to open at least six new hub airports in Italy because the airline had "run out" of French airports to expand to. This month the airline started operations from Paris' Charles de Gaulle and next month will start operations from Orly.
This is what Phillips had to say in a phone call to the newspaper earlier today "It turns out Paris is a Gold mine, the only problem is the Gold has almost run out. Whilst we are now flying out of Paris, don't expect it to turn into a huge international gateway for us, we have no more expansion plans on the cards for the city." "Instead we plan to grow in Italy, and perhaps someday, Spain and North Africa. I also wouldn't rule out expansion in the Aegean, that's also very likely."

The airline has announced the three airports it will expand to first, they are: Genova, Cagliari and Lampedusa.
The airline will start operations from the northwest Ligurian city of Genova first using Dassault Mercures, BAe-146-100s and ATR-42-320s. The second airport will be Cagliari in southern Sardinia, Mediterranean Airlines hopes to continue the Corsican success by expanding into the island's closest neighbour. Later the airline plans to expand to Alghero and Olbia in the northwest and northeast of Sardinia. Cagliari will receive the MD-82, BAe-146-100 and the ATR-42-320.
Finally the airline will set up a hub at Lampedusa in the southern Mediterranean. The airline will heavily advertise this little known destination, subsidised by the Italian tourist board. As Lampedusa's runway is so short, Mediterranean Airlines will introduce a new aircraft just for this airport. Le Figaro understands the airline plans to order the MD-87, a smaller, lighter version of the airline's MD-82. The MD-87's short take off capabilities will surely be put to the test at this airport. Like the other two airports Lampedusa will also receive the BAe-146-100 but the airline has announced it will not receive the ATR-42-320 'hub shuttle' aircraft due to the remoteness of the airport and lack of demand for such a service.

Mediterranean Airlines recently released record passenger and revenue figures for the summer season and the airline hopes to have the first three Italian destinations in service by Christmas.

One analyst had this to say "In 5 years time the whole of the Mediterranean region from Turkey to Gibraltar, Egypt to Croatia, may be bathed in a sea of Purple with the words 'Mediterranean' and 'Airlines'. Unless someone throws a spanner in the works, Mediterranean Airlines isn't just set to become Europe's number one holiday airline, but the world's." "When the airline commenced operations three years ago it carried 146,000 passengers, next year it is set to carry in excess of 35 million."

[Med Air]

December 1986 - As the airline expands internationally, the management team has decided to invest over €20 million in advertisement campaigns to help launch the airline in Europe.

The first €10 million will be spent on advertisement posters to be placed at bus stops, airports, train stations and road-side billboards. Below are the two new styles of poster. The first one is the 'Calvi' example although there are a range of posters advertising all of MED's destinations. The second poster is called 'simply complements' and showcases a range of customer's feedback from around Europe.





The second €10 million will be spent on a Europe-wide radio advertisement campaign. The 20 second advert starts off with the sound of an approaching airliner, eventually flying past and then away. All goes silent and then comes the line "In the time it takes to listen to this commercial we've delivered, on average, 21 passengers to their destinations." "Mediterranean Airlines, a flight with a smile."

Mediterranean's CEO is impressed with the new campaigns and is confident next year's passenger numbers will be far higher than forecast.

[Med Air]

Mediterranean Airlines Siège
Bâtiment 3
Blagnac - Aéroport de Toulouse
31492 Toulouse Cédex
Haute-Garonne
FRANCE

February 1987 (Mediterranean Airlines board of directors first half analysis).

CEO's (Matthew Phillips') 1987 AGM opening Statement
"As always Mediterranean Airlines has continued to grow, despite ever mounting competitive pressure from global airlines. This level of high growth, I believe, will continue for years to come. In the last year Mediterranean Airlines made more than €1.5 billion net profit and last month alone generated over €500 million in revenue. As of today we have 85 aircraft either in our fleet, or on order, ranging in size from the 50 seat ATR-42 to the 239 seat Boeing 757. Every single aircraft, stationed at every single hub, has been purchased with one thing in mind... maximum profit. I only sign orders for aircraft that will result in the largest returns on investment. In the past year this airline has done things I never thought would even be possible in 20 and it's my duty to ensure I can say the same this time next year. Let's take a look at what we've done and will do..."

A310, In Depth
On 17th January 1986, Mediterranean Airlines invested over €850 million in 6 new A310-300 aircraft. These were to become the airline's flagship fleet and were delivered in April. All 6 aircraft were stationed at our Mediterranean hubs and placed on return routes to Chicago. However, in May, Mr. Phillips was informed each aircraft was turning a loss at a rate of €4 million a month and the decision was made to withdraw the aircraft from service. Four of the aircraft were later scraped, whilst the other two were sold on to another airline at a reduced price. It was planned Mediterranean Airlines would order up to 18 more A310-300 aircraft, yet it has subsequently been announced that these options will not be finalised.
"I can assure everyone that every possible possibility was considered before the decision was made to scrap the A310. It was a huge blow to the airline, the proper consultation did not take place before the aircraft were purchased and as a result we paid the ultimate price. We all learnt a lot from the A310 problems and I can definitely say it will never happen again." - Phillips

Growth In Paris
By December both our new Paris hubs were in full operation and are both now handling 34 flights a day. Expansion into Paris has been an overwhelming success, as we were able to generate more revenue on routes than we had previously predicted. Mediterranean Airlines has now gained a strong foothold on the Parisian market, as these two charts show.
(Paris Charles de Gaulle, CDG)

(Paris Orly, ORY)

Expansion into Italy
In late November the airline expanded into Genova, northwest Italy. The base became an instant success soon generating the same amount of profit as its French counterparts. Later expansion into Cagliari and Lampedusa came with the same success. 17 out of the 18 daily flights to Lampedusa are operated by Mediterranean Airlines, testament to our domination in the Mediterranean region.
This month we expanded into two other Sardinian airports, Alghero and Olbia. The base at Olbia has placed Mediterranean Airlines in "direct competition" with Emerald Coast Airlines, who already has a base at the airport and flies to 67 destinations around Europe.

"Emerald Coast Airlines may be a small regional airline with only a few turbo-props to its name but to me it symbolises a huge threat, one that I personally have not come across during my time as CEO. Today they fly a few aircraft from Olbia, tomorrow they may serve the whole of the Mediterranean. That is a thought I would rather not consider, which is why I have placed my first order with The Boeing Company for four Boeing 757 aircraft to be stationed at Olbia. These aircraft will be pitched head to head with EC Airlines as I try to out-price them into submission. I have no doubt that our loyal passengers will make the right choice and fly with us." - Phillips

As Phillips said MED has ordered 4 Boeing 757 aircraft, 3 of the aircraft will fly to destinations that would normally be served by the Dassault Mercure or MD-80 and the 4th aircraft will fly to destinations usually operated by the BAe-146. The Boeing aircraft are newer and far faster than the planes operated by Emerald Coast Airlines, which alone should attract more passengers.

Once Mediterranean Airlines serves all three Sardinian airports, it will advance to Sicily and later the Italian west and south coast.

Below are our figures for what's being called the "Italian domination".

(Genova, GOA)

(Lampedusa, LMP)

(Alghero, AHO)

Lockheed 1649A Starliner Acquisition
As soon as Mr. Phillips saw the classic aircraft was still in service, he wanted one. In August Phillips sent a personal message to Eitil.com regarding the sale of the aircraft and the wish finally came true in January.
The aircraft is currently undergoing a €40 million overhaul that will see the aircraft re-painted and re-fitted to look like one from the 1950's. The new aircraft has been named "The Flying Orchid" and will soon be available for charter before scheduled routes are finalised. The airline plans to fly the aircraft for decades to come and it will be a joy to fly passengers in this classic bird.
The bottom half of the Starliner will be striped of paint and the bare aluminium will be polished to give a chrome appearance, the top half will be painted in retro Ivory White, with the hand painted words "Mediterranean Airlines" on the front-centre of the fuselage.
Scheduled destinations have yet to be decided, but Phillips has announced the aircraft will be based at CDG with potential destinations including Cairo/New York/Dubai/Athens. There is even talk of scheduled Starliner fare prices being as low as €1, even if that means turning a substantial loss on the service.

"I just think its great, buy a €1 return ticket from Paris to Cairo or New York on a classic retro 1950's aircraft. Fully outfitted with a retro interior and stewardess uniforms, it will truly be a blast from the past. It'll be a fun PR stunt that I'm sure the public will warm to, it'll certainly get them talking." - Phillips

http://www.airliners.net/photo/Air-France/Lockheed-L-1649A-Starliner/0115721/L/&sid=31a468812b8b913f0bc5de2029e8f59f

[Med Air]

Flight International - Le Bourget, Paris.

06/13/1987 - Mediterranean Orders Airbus A320s

Earlier today, at the 37th Paris International Air Show, Mediterranean Airlines announced its first order for the new Airbus A320. The airline placed an initial order for 10 A320s, worth in excess of €700 million at list prices. It has been announced Mediterranean Airlines will be the launch customer for the new aircraft, with a delivery date already set for 1st March next year. The A320 prototype was revealed to airlines yesterday and sources close to Airbus have told Flight International more substantial orders from large airlines are "on the table".

This is the first Airbus order from the airline since they purchased six A310s last year, all of which were pulled from service less than a month after their launch. Airbus' CEO Jean Pierson along with France's Minister of Transport Pierre Méhaignerie are both adamant a repeat of last year's A310 launch "disaster" will not be happening again this time round. Pierson had this to say "Not getting Mediterranean's further 18 commitments for the A310 was certainly a let down for Airbus when MED launched the aircraft last year, but we always knew the airline would come back to us." "We have been in negotiations with Mediterranean Airlines for the past 4 months and we are glad we could finally sign a deal. The A320 order book is now air bourn and we will start delivering early next year. I truly believe our new A320 will be a force to be reckoned with in the narrow-body market, I'm confident Mediterranean won't be disappointed."

It is understood Mediterranean Airlines has ordered the more advanced A320-200 model, although no engine option has yet been announced. Sources close to negotiations suggest Mediterranean could be leaning more towards the IAE V2500 engines due to the airline’s previous suppliers being Pratt & Whitney (MD-80 series, A310, Dassault Mercure) and Rolls Royce (Boeing 757).

"When Airbus launched the A320 in 1984 I instantly took an interest in the project. Today that interest culminated in a firm order for 10 aircraft and options for a further 30. Airbus is a fantastic partner to work with and this preliminary commitment for 40 aircraft is only the top of our order iceberg." "The A320 offers significant fuel savings over all its competitors, the aircraft also has a higher seating capacity and cruise speed. In a world of rising fuel prices and maintenance costs, this is the perfect aircraft for us." Said Mediterranean Airlines CEO Matthew Phillips.

Flight International has learnt the first aircraft will be placed on routes flying from the Italian mainland, but later A320s will replace the airline's outdated Dassault Mercures flying out of France.

"The A320 is significantly more fuel efficient than its competitors, that combined with its intelligent fly by wire computer systems have the potential to make it a huge international success. In fact let me put it another way. Over the past 20 years Boeing have racked up 4795 orders for their popular 737 series of aircraft, Airbus could see that many orders for the A320 in half that time." Said industry analyst Michael Ansen. "I am aware many airlines have aging 737 or DC-9 fleets, these fleets need replacing so Airbus should get billions of dollars of orders for the A320 in the coming years"

Once both Airbus and Mediterranean Airlines had signed the contract, 'Walk Like an Egyptian' played whilst confetti canons blasted purple and gold paper into the Airbus concourse at Le Bourget.
"I think both Matthew and Jean need to be a little more sincere, this is a business complex not a fun fair. Yet even I have to admit this day has been a long time coming." Said Airbus executive Colin Stuart after the conference.

(Airbus A320 parking at Le Bourget, 12 June 1987)

(Airbus A320 parked at Le Bourget, 12 June 1987)

(Airbus A320 taxiing at Le Bourget, 13 June 1987)

(Mediterranean Airlines A320 design mock-up)

-Joseph Martin, Flight International

[Med Air]

Mediterranean Airlines Siège
Bâtiment 3
Blagnac - Aéroport de Toulouse
31492 Toulouse Cédex
Haute-Garonne
FRANCE

February 1988 (Mediterranean Airlines board of directors first half analysis).

CEO (Matthew Phillips) 1988 AGM opening Statement
"In the last year Mediterranean Airlines produced record profits of €3.5 billion. In December, between the 1st and the 30th, we carried more than 5 million passengers and, on January 1st, Mediterranean placed its largest ever order for 27 aircraft worth more than €1.7 billion. The deal comprised of 8 new 737-400s, 16 new A320-200s [10 of which already ordered at the 1987 PAS] and 3 new MD-88s. These aircraft will boost productivity and profitability of the airline as well as showcase the airline on the international scene. I have some interesting expansion plans on the agenda, so let's take a look at what's happening..."

The Skyworld International Alliance
In April Mediterranean Airlines applied to join Skyworld International and by July the bid had proven successful. Mediterranean is now a proud member of the alliance, which has since seen the addition of Birmingham Express in late October. The 5 airlines in the alliance all want to promote regional growth in Europe and around the world, so the addition of Mediterranean and Birmingham express was an obvious progression.
"I'm very proud that Mediterranean Airlines is now part of an alliance, this should increase the airline's presence internationally as well as make it easier for customers to fly to more destinations. The alliance's annual conference is in a couple of months, in Singapore, and expansion plans will certainly be discussed." - Matthew Phillips

Expansion in Italy
Last year we created 8 new Italian hubs taking our tally to 11. Our plan was to expand into Spain after our 6th Italian base, yet because of the popularity of our Italian destinations we decided it was in the airline's best interest to continue the expansion. However we should have advanced into the Spanish market by the end of this year.
"Mediterranean Airlines is getting its first A320s in March, the first flights will be from the Southern airport of Lamezia and later we will open a base from Rome and fly A320s from there. Once we've saturated the West coast of Italy with aircraft we will start operations from the East coast, possibly Venice, Bari and Brindisi. Our 737s and MD-88s we've ordered will be leased out to two different airlines and will not directly be operated by us. Once we've fully expanded in Italy we will start to phase out the Dassualt Mercure and MD-82/83 fleets and replace them with A320s. I feel fleet singularity is the best way to go." - Matthew Phillips

Lockheed €1 flights
In October Mediterranean Airlines started operations using its retro 1950's Lockheed L-1649A Starliner after its 8 month €20 million overhaul. The aircraft now operates our CDG-CAI route, with tickets already sold out to September this year.
"It's absolutely no surprise the flights have sold out. If it was a Lockheed Starliner flying from Paris to Cairo, then the flight would sell out for it is such a beautiful old aircraft. Likewise if it was a €1 return fare the flights would sell out because people are always looking for a bargain. The fact that Mediterranean Airlines has rolled both into one makes these flights extra special. We will close the route late this year and start €1 operations from Paris to another destination by December. I hope to keep the aircraft flying for decades to come, and with sales figures like we've already seen that shouldn't be a problem." - Matthew Phillips

Possible Australian Spin-Off?
During the Q&As of the AGM, one reporter asked Mr. Phillips if was planning any expansion outside of Europe. It is no secret that Mr. Phillips plans one day to expand into Turkey and perhaps North Africa, but in response to the question it would seem he's planning even further afield. "Me and my team are always looking at possible future markets to expand to. Once I've expanded fully in Italy and Spain and replaced our Dassault and MD fleets with A320s, I want to grow in Greece, North Africa and hopefully the Balkans as well. Of course once we've done all that we need to look elsewhere in order to expand. I'm currently working with my team to discover new high profit markets, I can't give you too many details but we're not just looking in the European region. I would be prepared to launch a spin-off subsidiary airline operating in the Caribbean or Hawaii, maybe even Australia or New Zealand. It's too early to tell at the moment but it's on the cards. It would be very easy to for us to launch 'Tasmanian Airlines' flying around Australia and New Zealand, with much the same format of Mediterranean Airlines." - Matthew Phillips

[Med Air]

5 years ago this month, Mediterranean Airlines started operations.

Mediterranean Airlines started operating in Aug 1983 using a single Fokker F27-400. The goal was to provide value for money air travel to a wide range of European (Mediterranean) destinations. Today Mediterranean owns almost 200 aircraft, ranging in size from the 50 seat ATR-42 to the 290 seat Boeing 767. In July this year Mediterranean Airlines was the 9th largest airline in terms of passenger numbers and in 1987 we carried more than 65 million people!

The Facts:

July 1988 Passenger Numbers: 6,820,000 (est).
Longest Route: 17 Hours (Paris-Hawaii).
Largest Aircraft: 290 Seat Boeing 767-200ER.
Number of Operating Airports: 49 (32 Hubs, as of Aug '88).
Total Number of Routes: 945 (As of Aug '88).
Alliance: Skyworld International.
Number of Employees: 5,400 (est).
Largest Aircraft Order: €1.8 Billion (1 Jan '88, Airbus, Boeing, McDonnell Douglass).
Average Fleet Age: 1.3 Years (As of Aug '88).

Mediterranean Airlines European Airports:

Every 'hub airport' is linked to every other airport, with the exception of if two hub airports serve the same city (e.g Paris & Rome).


A Few of Our Aircraft:

Mediterranean Airlines Regional ATR-42, this aircraft serves as a 'hub shuttle' and flies between our French Mediterranean hubs.


Mediterranean Airlines A320-200 (150th Aircraft livery), the A320 will soon become the backbone of our fleet flying to all of our hub airports.


Mediterranean Airlines 757-200, the 757 is unique to Olbia (Sardinia) airport and doesn't operate from any other hub.


Mediterranean Airlines 767-200ER, our flagship aircraft is the 767. This aircraft currently operates just two routes (Paris-Hawaii, Paris-Jakarta), yet with the addition of new aircraft we hope to increase our range of long-haul destinations.


Mediterranean Airlines Revenue History:

We've moved on from when we started 5 years ago...

[Med Air]

Mediterranean Airlines Siège
Bâtiment 3
Blagnac - Aéroport de Toulouse
31492 Toulouse Cédex
Haute-Garonne
FRANCE

February 1989 (Mediterranean Airlines board of directors annual analysis).

CEO (Matthew Phillips) 1989 AGM Opening Statement
"Strong growth in the holiday travel sector has ensured we can deliver even higher profits this year. However, we should not get complacent. Whilst passenger numbers are set to smash the 100 million mark this year, we have seen competition on key routes double in the past few months. Our dominance in the French and Italian markets means we should be able to overcome this competition and we are constantly monitoring our position in the European market."

Competition
Many small airlines are trying to get a foothold on the lucrative hub city to Mediterranean routes, the first of which was Emerald Coast Airlines (based at Olbia). To combat Emerald's growth, Mediterranean Airlines ordered 4 757s that were all stationed at Olbia. The news came in the third quarter of last year that Emerald Coast Airlines had gone into administration and the airline stopped flying. The 4 757s at Olbia will now be sold off and replaced with smaller, more economical, A320s.
"As J.C. Penny said, 'A merchant who approaches business with the idea of serving the public well has nothing to fear from the competition.' I have no doubt our loyal customers will make the right decision, after all we are the only airline that links every French and Italian holiday destination with the rest of Europe." - Phillips

Airbus A320
By the end of last year, Mediterranean Airlines was the largest operator of the A320 with 46 aircraft either on order or in the fleet. This number should double to around 95 A320s by the end of the year.
"We should have 95 A320s either in our fleet or on order by the end of this year. The A320s are flying from all our new hub airports in Italy, but we also hope to replace our Dassault Mercure fleet in France with the A320 by end of this year as well. I am currently building a long term relationship with our supplier that should see us get better deals in the future. The first 50 A320s delivered will all be powered by CFM engines, yet after that they will be powered by International Aero Engines. Not only are the V2500 engines more fuel efficient but they are also a joint venture between our two engine suppliers, Rolls Royce and Pratt & Whitney who we've been ordering from for years."

Expansion into Spain
Whilst it was originally planned to have already expanded into Spain by now, further expansion in Italy has meant we had no available aircraft to start Spanish operations. It is now planned for Mediterranean Airlines to fly to every single commercial Italian airport south of the Alps, each of these Italian airports will receive 50 operations a day. Once Mediterranean Airlines has completed this goal in Italy, we will move into the Spanish market. We hope to have done this by the 4th quarter of this year.

€1 fares
Last year Mediterranean Airlines flew its classic Lockheed Starliner from Paris to Cairo for just €1. This year the €1 fare has returned on flights from Paris to Iceland's Keflavik airport. The €1 sale will continue to either Nov/Dec this year when we will close down the route and start another to a different destination.

Possible Concorde Order?
Mediterranean's CEO has hinted at a possible Concorde order before the aircraft is discontinued.
"We already have one special aircraft in our fleet, the Starliner, yet I'm in preliminary negotiations with BAC and Aérospatiale for two possible Concordes. I was thinking of doing an around-the-world Concorde flight, which I know Canadair currently does. I was thinking of perhaps Paris-Moscow-Beijing-Anchorage or Honolulu-Washington-Paris. Of course that's just one of many possible routes."

[Med Air]

Mediterranean Airlines Siège
Bâtiment 3
Blagnac - Aéroport de Toulouse
31492 Toulouse Cédex
Haute-Garonne
FRANCE

February 1990 (Mediterranean Airlines board of directors annual analysis).

CEO (Matthew Phillips) 1990 AGM Opening Statement
"Wow, it's been a crazy year. Wow. We still haven't advanced in to Spain, although I swear if we haven't by this time next year someone's gonna get shot. Yet just because we haven't advanced into Spain certainly doesn't mean we haven't expanded. Just last month we opened fourteen new long haul destinations from Paris using the 767, these routes are already proving very profitable. I want to make sure Mediterranean Airlines is fully established in Italy and the South of France before we hit Spain, as it happens we carried more Italians in 1989 than any other airline. February profits are up 140% on this time last year, thanks in part to the vast reduction in maintenance costs. In fact if we continue our low cost maintenance programme for the rest of the year 1990 profits are set to be 100% higher than 1989, meaning we can enter the new decade on a high."

Mediterranean Re-Branding
Mediterranean Airlines made the decision to re-brand the airline in early 1989, following on from the success of the previous branding decision in 1986. The re-branding features new crew uniforms, livery and logo courtesy of Alphawing. The airline is blasting into the new decade with a bang!

New Logo


New A320 Livery


New Boeing 767 Livery


New Cabin and Airport Staff Uniforms


Lower Maintenance Costs
Matthew Phillips set a target to half 1988 maintenance costs by the new decade, this was a monumental challenge yet the executive board managed to exceed the target. By February this year maintenance costs were a quarter of those in 1988, this is despite the airline's huge fleet expansion.
"Maintenance is Mediterranean Airlines' largest single expenditure, currently around four times the amount we spend on fuel, so it was a key target for me to keep these costs to a minimum. We have managed to exceed our cost targets by lowering the number of scheduled checks each aircraft receives, by buying spare parts in bulk direct from the supplier and by replacing aging aircraft with newer models. The airline has managed to slash maintenance expenditure 75% in a very short period of time, in the process boosting company profits 140%. Staff will be rewarded with a significant bonus this year as well as further pay rises." - Matthew Phillips

New Boeing 767 Routes
In October last year Mediterranean placed an order for fourteen 767 aircraft, with options for a further four. With all options finalised this now takes Mediterranean Airlines 767 fleet to twenty. The new aircraft are stationed at CDG and ORY and operate selected routes to Asia and North America, two rapidly growing markets.
"The Mediterranean model is simple but effective. We fly international passengers from their home countries in America and Asia to Paris. There they can get a connecting flight to many other European cities including Amsterdam, Rome, Madrid, London, Moscow etc. as well as all of our 36 Mediterranean coast destinations. I truly believe in the large hub to hub travel concept and so I hope to increase our Paris long haul destinations even further in the coming years." - Matthew Phillips

€1 fares
This year's €1 fare destination is Halifax in Nova Scotia, Canada.