Networks – Page 1299
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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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Tough labour act to follow
Northwest Airlines had enough labour problems to last it the rest of this year before American Airlines weighed in by meeting its own pilots' demands. The latter deal threatens to create a ratchet effect with Northwest unions seeking to match the new industry standard. All six of Northwest's ...
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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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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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Shifting spanners
Airlines are rushing to spin off maintenance functions to subsidiaries which can also compete for third-party business. Costs may fall, but there can be some disadvantages. Wake Smith examines the nuts and bolts of the decision. The traditional airline organisational structure is rapidly changing under competitive and cost pressures. The ...
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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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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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Afcac calls for ATC unity
A series of near misses over central African airspace has prompted the African Civil Aviation Commission (Afcac) to renew its drive for a single agency to coordinate air traffic control operations in all 53 African states. The move follows a warning from the South African pilots' organisation that ...
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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 ...
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Cathay not in dire straits
As the manoeuvring over direct cross-straits flights continues between Beijing and Taipei, Cathay Pacific denies direct flights will damage its business as speculation grows that the transfer of Hong Kong's sovereignty to China next July will emerge as the watershed for links. That view is shared by Cathay ...
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Red Sea plan under threat
Plans for a new airport on the Israeli-Jordanian border are under threat from political tensions within the new Israeli administration. Israel's infrastructure minister, Ariel Sharon, has objected to the $80 million facility planned for Eilat/Aqaba on the Red Sea coast. Jordan reached agreement on the shared facility with ...
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China set for double sale
The long-awaited equity issues by China Southern and China Eastern appear to be finally moving closer following positive signals from the CAAC. Meanwhile foreign investors may purchase stakes in a Chinese regional airline and airport. Shen Yuankang, the CAAC's vice minister for general administration, says China Eastern shares ...
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Garuda close to divorce
Both Garuda Indonesia and Merpati Nusantara Airlines hope to benefit from their separation, which now awaits final approval from Indonesia's President Suharto. Pushed together by government edict 18 years ago, the two carriers have apparently agreed on the terms of a divorce, allowing Merpati to regain its independence by the ...