All Strategy articles – Page 1022
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A final flurry of orders
Despite the gathering gloom, 1998 turned out to be another bonanza year for jet airliner sales. As the year-end totals rolled in, it became clear that Airbus and Boeing had managed to net the second largest bag of orders on record. That may raise few cheers from an airline industry ...
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Mexico faces pressure
Trans World Airways' return to Mexico City with daily flights from St Louis and New Orleans underscores Mexico's need to reach some fundamental aviation decisions. The presence of yet another US carrier fuels Mexico's need to resolve the future of Aeromexico and Mexicana, which are caught up in a debate ...
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End of an era
After the demise of the Japanese leveraged lease, the markets for tax based aircraft leasing are being shut down one by one. What other sources of funding will replace tax leasing and will they be as cost effective? All good things must come to an end and that time ...
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Little hope of early US-UK open skies
A sceptical but curious US delegation is preparing once again to sit down with UK aviation representatives in mid-February for informal talks on open skies, although the mood in Washington is pessimistic. While the USA now has more than 30 open skies agreements in place around the world, a ...
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Hard day's flying
El Al is getting ready for a mid-year privatisation. Even without the right to fly on the Sabbath, the airline reckons that it is one of the most efficient in the world. When running an airline that can fly only five days a week, you could be forgiven for ...
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Continental's Latin push gets weaker
Continental Airlines is finding its push into Latin America hampered by the fact that American Airlines has already secured matches with many of the region's flag carriers. Pickings among the second- and third-tier airlines tend to be much smaller, Continental is discovering. Chile's Avant Airlines is the latest example. ...
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Euro: business as usual
Following the introduction of Europe's new currency, the question being asked in the travel industry circles is what impact the euro will have on prices. There are immediate benefits of the euro, such as the elimination of exchange rate risk, but what about fares? Travel agents, tour operators and ...
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Building shareholder value
Shareholders have not always had a good deal from their airline investments. Michael Deimler and James Whitehurst of the Boston Consulting Group in Atlanta, Georgia, outline new approaches to help management put investor values first. For shareholders with a long term perspective, airlines have historically been a high risk, low ...
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News in brief
Mood not so good - It will be "another good year for the US airline industry", according to Moody's credit ratings agency, but growth in Europe and the USA will be slower and profits lower than last year. Asia still faces "a difficult environment", except China. EVA's early recovery ...
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BM bullish on Moscow
British Midland hopes to start up its London Heathrow-Moscow route before the beginning of its summer schedule, despite Virgin Atlantic Airways' appeal against the UK Civil Aviation Authority's decision to award the route to British Midland. A British Midland spokesman says that until the appeal is heard in February, ...
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easyJet sees black
Privately owned easyJet has finally turned a profit, but the publication of its first set of results has provoked scepticism and speculation that it may soon be up for sale. The carrier's 1998 pre-tax profit of £2.3 million ($3.8 million) on a turnover of £77 million, appears to belie ...
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SIA halts bid for CAL
Shareholders in Singapore Airlines (SIA) breathed a sigh of relief early in January when the carrier announced that it had withdrawn from discussions to buy shares in Taiwan's China Airlines (CAL). As SIA's share price rose on the news, CAL's fell on concerns that long-running plans for a badly-needed ...
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Beijing breaks ice with USA
US negotiators seem optimistic that a recent thaw in informal talks with China could lead to formal negotiations and a new bilateral this year. Washington has no expectation of "open skies," but hopes to gain more access to China with fewer restrictions for more US carriers. Last year Beijing ...
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Privatised Austrian to look east
Austria has revived plans to privatise it flag carrier in a move that will boost its expansion eastwards. The government is to relinquish its majority holding Austrian Airlines after it decided not to participate in a Sch3 billion ($240 million), capital raising programme. The state will remain the largest ...
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French ambition
With a pilot deal under its belt, the French national carrier is now moving ahead with a flotation. But a global alliance still escapes the airline, while there are also doubts over its ambitious expansion plans. When in the autumn of 1997 former Air Inter boss, Jean-Cyril Spinetta, was ...
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Sirocco re-evaluates strategy
Andrew Doyle/MUNICH Sirocco Aerospace and Lufthansa Technik have frozen plans to establish a worldwide support network for the Tupolev Tu-204-120, in the face of the Russian economic crisis. Meanwhile, the German company's sister business, Lufthansa Cargo, confirms that it has decided not to acquire the freighter version of ...
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Sun rises for Northwest low-fare rival in Minneapolis
Sun Country Airlines, the USA's second largest passenger charter carrier, plans to become a low fare scheduled airline in June. The move by the Minneapolis/St Paul-based airline will be a thorn in the side of incumbent rival Northwest Airlines. The airport is Northwest's most important hub, and the US ...
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Rule change
Paul Lewis/WASHINGTON DC The aero engine service business has undergone a fundamental overhaul since 1995, when manufacturers began to recognise the untapped potential of the aftersales market to boost revenue. Airlines, struggling to cut costs, have been moving meanwhile to spin off their engineering divisions or to exit the ...
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Eurocontrol firms up separation plans in bid to beat congestion
Andrew Doyle/DUBROVNIK Proposals for a major shake-up of Europe's congested airspace, aimed at securing extra capacity, will be considered by Eurocontrol in April. If approved, the programme will commit 38 countries to work together to introduce reduced vertical separation minima (RVSM) between flight levels 290 and 410 simultaneously ...
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SAA courts Asian partnerships
South African Airways (SAA) is pursuing a new northern Asian partnership after restructuring its South-East Asian routes through extended codeshares with allies Singapore Airlines (SIA), Thai Airways International and Japan Airlines (JAL). An announcement is expected soon, but SAA will only say that it is talking to several airlines, ...