All Strategy articles – Page 1025
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News
KLM aims for commitment
KLM and Alitalia are committed to building a long term global alliance As far they are concerned it is a marriage for life. A year's intense prematrimonial discussion between the Dutch carrier KLM and Italy's Alitalia has produced a 10-year deal that promises to be a fully blown merger ...
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Changes at Aerolineas
American Airlines' purchase of an 8.5% stake in Aerolineas Argentinas has started the Argentinian carrier on a major restructuring. Promptly after the $25 million purchase closed, Aerolineas ordered 12 Airbus A340s as the first step of its new business plan to refleet and expand. Delayed for months by regulatory ...
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Taking action over passives
In the battle to cut distribution costs, the airlines are fighting hard to reduce computer reservation fees for passive and duplicate bookings. But despite progress on both sides of the Atlantic, the issue remains a cause of tension. Passive or duplicate ticket bookings may be sound harmless enough, but airlines ...
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Rivals act on SAA's domestic fares
South Africa's three independent airlines, BA-Comair, Sun Air and Nationwide, have lodged an urgent complaint to the Competition Board claiming South African Airways is charging fares that are "below cost and therefore constitute predatory behaviour on the part of the dominant carrier". The board's chief director support ...
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Marketplace
-Continental Airlines has placed a $75 million order with Rolls-Royce for RB211-535E4B engines to power five Boeing 757-200s. The 757s were ordered in 1997 and are due for delivery between December 1999 and June 2000. -American International Airways, a division of Kitty Hawk, has taken delivery of an ex-Middle East ...
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US DoT delays ruling on Northwest routes
The US Department of Transportation (DoT) is delaying its investigation into whether the "virtual merger" of Northwest Airlines and Continental Airlines constitutes a transfer of international routes to Northwest. The DoT gave the airlines a one-year exemption from a new law requiring DoT approval of foreign route transfers. It ...
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Kitty Hawk mulls exit from charter work
Kitty Hawk has parked one of two Boeing 747 passenger aircraft operated by its American International Airways (AIA) unit pending a decision about whether to sell the aircraft or convert it into a freighter. The decision leaves one 747-100 and two Lockheed L-1011 TriStars available for passenger charter customers, ...
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Delta scales back Los Angeles operations
Paul Lewis/WASHINGTON DC Delta Air Lines is scaling back services to Los Angeles by discontinuing its codeshare arrangements with SkyWest Airlines. At the same time it is strengthening its Asian presence with the signature of a co-operation deal with China Southern Airlines. The two companies have announced that ...
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Pan Am to set up two centres
Pan Am International Flight Academy (PAIFA) has won contracts to establish simulator centres for Atlantic Coast Airlines and DHL Airways. PAIFA, which operates a simulator centre in Miami, won a contract earlier this year to build and operate a training centre for FedEx. Under the 10-year agreement with Atlantic ...
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Olympic Airways beats path to alliance link
The search for a strategic partner for struggling Olympic Airways has become the central feature of a new restructuring plan now being implemented by the Greek national carrier. The government, aware that Olympic has been brushed aside in the airline industry's global consolidation programme, has propelled its search for ...
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India freezes airline merger with senior management purge
The Indian Government has purged the senior management of state-owned Air India and Indian Airlines airlines, claiming it wants to speed up their privatisation. The civil aviation minister, Ananth Kumar, dissolved the joint board of Air India and Indian Airlines on 11 December, days after the board announced plans ...
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Air France plans image change
Julian Moxon/PARIS Air France president Jean-Cyril Spinetta has launched a three-year programme to improve the airline's competitiveness and image as it prepares for a global alliance before the end of next year. A four-part plan has been unveiled to the workforce portraying Air France as an airline recognised ...
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Air Liberte franchise boosts Flandre Air jet expansion
French regional airline Flandre Air has teamed with Air Liberté in a franchise agreement that will add 22 routes and 18 aircraft to the British Airways subsidiary. The five-year deal, which is expected to take effect on 18 January, extends the code-sharing agreement between the two carriers, signed in ...
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Qantas studies 747 classic fleet expansion
Max Kingsley-Jones/LONDON Qantas is evaluating Boeing 747 classic fleets being offered for sale with a view to boosting its own fleet of 747s by up to six aircraft at the end of next year. The airline is working on a business study which proposes the increase in 747 ...
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Lufthansa delays decision on 728JET
Andrew Doyle/MUNICH Lufthansa CityLine has backed away from making a formal commitment to the Fairchild Dornier 728JET programme by the end of 1998. A decision is not expected until March. The German flag carrier's regional arm had been due to sign a memorandum of understanding (MoU) in December, ...
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BBA spends $170 million on AMR Combs chain
The UK's BBA Group has agreed to acquire the AMR Combs chain of fixed-base operations (FBOs) for $170 million. BBA owns Signature Flight Support, the largest USFBO chain, and the acquisition will consolidate its dominance of this sector of general aviation. Bidders for the highly respected AMR Combs operation, ...
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Routes
-Jersey European Airways is introducing three daily flights between Edinburgh and Paris for Air France, which will be operated by British Aerospace 146s. -India's Jet Airways will introduce services from Chennai (Madras) to Port Blair in the Andaman Islands from January, using Boeing 737s. -US Airways will begin services with ...
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Marketplace
-C-S Aviation Services has placed five Airbus A300B4 freighters with Grupo TACA, for delivery at the end of this year, plus lease options for two more aircraft. C-S has also placed an A300B4F on a five-year lease with International Cargo Charters of Canada. The airline operates Emery Worldwide services from ...
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Star picks managers as it gears up for fight
Andrew Doyle/MUNICH The six airline members of the Star Alliance have appointed a dedicated management team to take over the day-to-day running of their operation in a bid to achieve more effective co-operation in key areas. The move forms part of aggressive plans by Star, the largest members ...
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TWA twin-source deal surprises market
Trans World Airlines' decision to set up deals with Airbus Industrie and Boeing for competing 100-seaters - totalling 250 aircraft, including options - has raised questions over the US airline's future strategy. The deal remains to be finalised, but TWA has signed letters of intent (LoIs) for 50 717-200s, ...