News from FlightGlobal – Page 2427
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Estonian Finnish
Finnair and Estonian Air will codeshare on each other's services between Helsinki and Tallinn from the end of October and will handle each other's flights at their respective home bases. Source: Airline Business
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Virgin's sun
Virgin Atlantic has signed a marketing pact with South African regional Sun Air in preparation for the UK carrier's inaugural service to Johannesburg in early October. The codeshare agreement will see Sun Air's Durban and Cape Town flights connecting with Virgin's initial three weekly frequencies. Source: ...
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Condor moment
Lufthansa's Condor charter arm has become the launch customer of the B757-300 stretch with an agreement to take up to 24 of the 252-seat aircraft. The first of 12 firm deliveries start in 1999 and it also holds 12 options. Source: Airline Business
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Latin accords?
The US has resolved its bilateral dispute with Colombia under an accord granting American Airlines three new frequencies and a Colombian carrier one, but otherwise freezing passenger capacity until March 1999. Separately, Washington appears to have held back from suspending Venezuelan carriers' flights to the US. Services continue while the ...
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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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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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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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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 ...