All Strategy news – Page 997
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News
AB Airlines becomes a low-fares casualty
Industry analysts have been keenly awaiting a first casualty among the new generation of low-cost airlines. The waiting was finally over last month as London-based AB Airlines went into administration. AB has been around since late 1993, but came to the fore a year ago as it made a ...
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KLM, Alitalia produce the goods with cargo deal
Peter Conway LONDON Airline alliances tend to generate much rhetoric about cargo partnerships, but little action. However, the tie-up between KLM and Alitalia, announced in July, looks set to be different. Cargo departments within the two carriers have already gone further in their planning than KLM's long-running tie-up with Northwest. ...
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KLM uk eyes low-cost route
Lois Jones LONDON Fierce competition from low-cost carriers at its London Stansted base is forcing KLM uk to rethink its market position and restructure. Launching its own no-frills service is one possibility. The KLM regional subsidiary is to axe six unprofitable routes from 12 September and streamline its fleet. The ...
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Majors eye Kennedy terminals
Delta Air Lines and United Airlines are weighing up major investments in new terminal facilities at New York's Kennedy Airport, already in the middle of a massive $9 billion redevelopment programme for new terminals and infrastructure. Delta and United operate from outdated and overcrowded facilities while many of ...
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Profits on a plateau
Kevin O'Toole In the final analysis, the airline industry's financial results for 1998 were once again a mix of the encouraging and the depressingly familiar. Overall profitability came out at almost identical levels to the year before. The industry should perhaps take heart from that fact, given the dire ...
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Stormy weather
Carole Shifrin WASHINGTON DC Air traffic delays are not unique to Europe. The USA is also being forced to look hard at upgrading services After some fierce attacks by several top airline officials on the Federal Aviation Administration's running of the US air traffic control system, airline and FAA ...
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Controlling the future
Peter Bennett VIENNA Commercialisation, privatisation and the empowerment of Eurocontrol are possible solutions to Europe's growing delays. The solution for Europe's air traffic delays is simple. First, look at the causes - a fragmented air system controlled by a patchwork of control centres that leads to the inefficient management ...
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Raising the internet stakes
Dennis Blank ORLANDO The explosion of online travel booking in the USA - stimulated by offerings of bargain basement ticket fares - is attracting the wrath of travel agents. But US major carriers cannot ignore this rapidly growing marketplace. This year, the customary late summer round of airfare bargains across ...
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Negotiating change at ALPA
Karen Walker WASHINGTON DC ALPA's new president, Duane Woerth, says he is not afraid of change. But the US pilots he represents are beating the same drum: they expect to see their airlines' profitability reflected in new contract negotiations. If Duane Woerth is looking for a fight, he does a ...
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Union blues
Jane Levere NEW YORK For all the talk of change in the airline industry, contentious pilot-management relations seem to many to be set in stone. Industry observers believe two imminent contract negotiations - at Delta and United - will set the benchmarks for labour relations generally. When the ...
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BA reins in again
Lois Jones LONDON British Airways may have stayed profitable through the last recession but it is now fighting to stay out of the red For over a decade British Airways has been the shining example of how a profitable airline should look. But it could be about to fall from ...
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Sun Air to close?
A row has erupted over plans by South African Airways (SAA) to close down Sun Air, shortly after having agreed to acquire a controlling 75% stake in its domestic competitor. At the end of August, SAA apparently gained control of Sun Air and promptly announced plans to wind it ...
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A crowded market
Lois Jones BEIJING & SHANGHAI Still shuddering from Asia's economic crisis, China's aviation industry is restructuring with domestic tie-ups and the home market high on the agenda. The Hainan Airlines aircraft took off and spread its wings over the sprawling mass of Guangzhou, south China - one of the most ...
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Ottawa ponders Canadian Airlines rescue options
Canada's federal government has been forced to intervene to avert a looming crisis at Canadian Airlines. Ottawa stepped in because of a growing threat that Canadian might not survive this coming winter. The beleaguered carrier has reported an annual profit in only one of the past 10 years, ...
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American opens door for Latin alliance
David Knibb SEATTLE A common alliance with a US partner has spawned a ground-breaking venture between two Latin American airlines. LanChile and Aerolineas Argentina have launched an air cargo joint venture, citing their common connections with American Airlines as a catalyst for the deal. "The relationship with American Airlines ...
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Brazilians refute merger speculation
Brian Homewood RIO DE JANEIRO Brazil's four major airlines have described reports that they are considering merging into two as "mere speculation". But the Brazilian airline industry remains awash with rumours that Varig, Vasp, Transbrasil and Tam could join forces. Varig says that company president Fernando Pinto, who went on ...
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AA/BA antitrust crumbles
Karen walker WASHINGTON DC If American Airlines and British Airways gambled that their application for an antitrust immunised alliance would not be refused in the wake of other high-profile immunities, then it has proved a bad bet. Two-and-a-half years later, those alliance hopes have been dashed by the US ...
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AeroPeru's hopes crash
AeroPeru entered bankruptcy in August, putting an end to remote hopes of a rescue deal for Peru's flag carrier. The decision by creditors to reject any last-minute bids for AeroPeru did not surprise observers, who believed that an earlier failed attempt by Continental Airlines to invest in the Peruvian ...
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Management teams
Carriers in need of change are looking to new boardroom teams for results. Analysis is by Michael Bell, who leads the Global Aviation Practice for senior-executive search firm Spencer Stuart The past few months have brought into focus a new form of leadership at troubled carriers around the world: management ...
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Reading the signs
Major carriers appear to be signalling their intent to rein back on excess capacity. Chris Tarry at Commerzbank looks at the signs and the possible influence of alliances in the equation. It does not take a degree in rocket science to realise just how testing this year has already been ...