All Strategy news – Page 1139
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News
Cartel study may spread
Lufthansa faces a serious challenge to its remaining domestic monopoly routes as German antitrust regulators threaten to widen their investigation into the carrier's pricing practices. The move comes as management attempts to secure further cost savings in a new pay round with unions. Lufthansa already faces sanctions from ...
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Austrian hub hits earnings
Rumours abound about the future of Austrian Airlines' management as the carrier's losses continue to mount, dragged down by a flawed Vienna hub and an ineffective alliance strategy. Austrian firmly refutes suggestions in the local press that co-chairmen Herbert Bammer and Mario Rehulka will be replaced in the ...
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Control is key to future success
Running an airline is becoming yet more complicated. Can managers manage? What will be the biggest managerial challenge faced by airline chiefs in years to come? There are many candidates: marketing in a deregulated environment; cost cutting; attracting new business; finding new markets; alliances; managing union relationships. But the biggest ...
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Balkan banks on cash crop
Balkan Bulgarian Airlines is seeking to bolster its unprofitable operations by exchanging part of its western fleet for new aircraft in an attempt to source cash from financiers and lessors. The airline has had preliminary discussion with financiers and lessors about acquiring up to six B737s to add ...
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TAM's distant Lapsa link
Call it ownership once removed. The Brazilian domestic carrier TAM has signed a $40 million management contract to run the Paraguayan flag carrier, Lapsa. But while the deal gives TAM access to international routes it will not co-brand the operation in order to protect its own image. TAM ...
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Capital cost of noise gag
The UK government has angered longhaul operators by imposing stringent noise limits at all three London airports, which will severely discriminate against B747 operators, including Stage 3 B747-400s. The limits imposed by the UK Department of Transport will reduce noise levels out of Heathrow, Gatwick and Stansted by ...
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Virgin to stir price action?
Virgin Express' unofficial complaint of predatory pricing by SAS has added to the pressure on the European Commission to take action in this area with three cases from small carriers pending. Virgin is basing its allegations on SAS' decision to cut fares on Copenhagen-Brussels by 52 per cent ...
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FAA may hike startup cost
These are expensive times for startup carriers in the US. The Federal Aviation Administration has added to existing financial concerns, created by the drying up of capital and public mistrust, with proposals that would raise the cost of government scrutiny. The FAA remains stung by criticism of its ...
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Land of the giants
Airlines appear unworried by the domination of Gecas and ILFC but manufacturers certainly are. Doug Cameron assesses current developments in the rapidly maturing operating lease sector. You don't need brains in a bull market. Developments in the operating lease sector over the last year bring, for some, uncomfortable echoes of ...
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Shannon shakeup
Aeroflot's innovative mini-hub at Shannon has yet to achieve glory and looks set for a revamp. Mark Odell reports. Sam Quayle's jaw is in danger of joining the undercarriage of the US charter flight he boarded just over five hours ago in New York, as the aircraft touches down on ...
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Led to extinction?
Rigas Doganis, Olympic Airways' former chairman, draws on his own experiences to give a unique insight into the problems faced by Europe's state-controlled flag carriers. Unless politicians grasp the nettle and stop interfering in the management of those struggling airlines, their days are numbered . Within three few weeks in ...
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Keeping up appearances
British Airways is using the power of its brand to spread its name and services around the world via franchise agreements. As other European carriers tentatively follow suit, Lois Jones explores the benefits and pitfalls involved. As equity investments begin to lose their shine, franchising is gaining appeal as ...
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Dig a little bit deeper
Revenue managementAirline revenue managers still face problems in turning their black art into an exact science. The next leap forward in boosting yields will be to predict the behaviour of each individual passenger. By Alexander Rittweger and John Larew. Revenue management? Nothing new to learn about that - it has ...
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Desert bloomer
Reno's economy may depend on gambling, but the relatively new hometown airline needs to rely on more than luck as it matures. David Knibb reviews the challenges which face Reno Air. Four years after its launch, Reno Air's future looks considerably brighter after surviving a shaky start. As the carrier ...
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Aircraft News
Ansett Worldwide has ordered 10 Boeing 737-700s, for delivery from 1998 onwards, as well as six B737-300s and nine B767-300ERs, while International Lease Finance Corporation has ordered five B757-200s, five B767-300ERs and five B737s. British Airways has ordered four B747-400s, three B777-200s and three B757-200s and has brought forward orders ...
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What will outs do when euro is in?
The moves towards European Monetary Union and the introduction of the euro by the end of this century are starting to look unstoppable. In Germany, Chancellor Helmut Kohl's unwavering support for Maastricht won support at the ballot box earlier this year in the Baden-Württemberg regional elections, when the ...
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They are United, but for how long?
Two years have gone by since United Airlines launched its employee stock ownership plan, which gave the carrier's pilots, machinists and non-contract workers a 55 per cent ownership stake in exchange for $4.9 billion in concessions. Since then the airline has seen unit costs drop by close to 7 per ...
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Pinch is on down under
Air New Zealand must be pondering the real value of its imminent stake in Australia's Ansett after the Melbourne-based carrier plunged into the red in the second half. The New Zealand flag carrier has disclosed it will pay TNT A$325 million (US$260 million) for its 50 per cent ...
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Asia next for BA franchise
British Airways has signalled that it will expand its network in Asia through an expansion of its franchise portfolio rather than a broader alliance with a major carrier in the region. But there remain doubts as to whether airlines in the region are sufficiently developed to meet BA's requirements. ...
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AA rebuff on code swap
American Airlines has seen its first attempt to test the boundaries of last year's US-Canada open skies agreement rebuffed by authorities on both sides of the border. American had applied to transfer Northwest's spare Detroit-Vancouver frequencies to Chicago, with the service to be operated by its alliance partner ...