All Strategy articles – Page 1028
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News
L'Aeropostale plans express cargo network
French company L'Aeropostale is discussing opening a new European express freight network in an alliance with subsidiaries of its two shareholders, La Poste and Air France. The firm is about to embark on a major expansion of its capacity, replacing its two Boeing 727s with three cargo-configured Airbus A300B4s ...
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Cathay pilots start to disrupt services as pay talks collapse
Andrzej Jeziorski/HONG KONG Cathay Pacific Airways pilots have begun to disrupt scheduled services after the collapse of pay talks between airline management and unions. Three flights were cancelled on 28 May, when "a higher than average" number of pilots called in sick. Although airline management says it does ...
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France changes direction on Orly restrictions
The French Government has bowed to pressure from airlines and employees to drop plans to limit the range of flights from Paris Orly - the capital's second international airport. Transport minister Jean-Paul Gayssot had wanted to cut the maximum distance airlines could fly from the airport to 5,000km (2,700nm), ...
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Family power
IAE has come of age thanks to the growing success of its V2500 on the Airbus A320 family of aircraft Guy Norris/LOS ANGELES Business is booming for International Aero Engines (IAE), which last month celebrated the 10th anniversary of entry into commercial service of the V2500. "It's an important milestone ...
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Routes
The USA has signed an open-skies agreement with the Gulf state of Bahrain and hopes to extend the agreement to the other three states that have shareholdings in Gulf Air. Discussions have begun with Oman, while an outline agreement was reached with the United Arab Emirates in April. There have ...
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Philippine Airlines races against time
Nicholas Ionides ATI/SINGAPORE The future of Philippine Airlines (PAL) remains unclear as it strives for an injection of capital. It was dealt a major blow when the US Exim Bank withdrew support for its rehabilitation plan The clock was ticking on PAL in May as it rushed to ...
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The king of low-cost: Herb Kelleher of Southwest Airlines
When it comes to making work seem like play, Herb Kelleher is a master. But don't be fooled by the broad smiles and open-neck shirt. Behind the casual demeanour lies a management style that is Disney-esque in its attention to detail. Southwest Airlines employees expect to have fun under this ...
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Alitalia signs up
Alitalia has finally joined up as an official member of the Northwest-KLM alliance across the Atlantic. The three airlines have jointly applied for US antitrust immunity - required to allow co-ordination of prices and profits. The Italian carrier believes that US permission could be given as soon as September. ...
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American lawsuit sends warning out to industry
Karen Walker WASHINGTON DC The US Department of Justice's (DoJ) decision to file a predatory behaviour lawsuit against American Airlines has sent shock waves through the US industry and is being seen as the latest symptom of a pro-competition fever that has taken hold in Washington DC. Although legal ...
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In brief - Americas
RAA appoints Siegel - The US Regional Airline Association (RAA) has elected David Siegel, president of Continental Express, vice-chairman of its board. New board members include Chuck Johnson of ERA Aviation, Robert Ferguson of Midway Airlines and Greg Taylor of US Airways Express. Cleveland concourse - Continental Airlines has opened ...
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Routes - Asia
China codeshare - Australia's Qantas Airways and China Eastern Airlines have signed a commercial agreement for a codesharing partnership. The carriers are to start sharing codes on flights between Australia and China sometime in the "middle of the year". Fiji first - Ansett Australia is to open a new ...
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Storming the capital
Lois Jones Stansted has evolved from a little known local airport in the south-east of England to be the new rising star of the London airport scene, and still holds ambitions to become a base for global alliances launching long-haul services It is the tale of a poor relation which ...
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US first quarter causes concern
US first quarter results are perhaps the clearest indication so far that the current cycle's downturn might be just around the corner. While there is no need yet for tears, overall revenues are flat compared with the 1998 first quarter and net results are down. The sobering effect on overall ...
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KAL reshuffle disappoints
Nicholas Ionides ATI/SINGAPORE Troubles continue to pile up for KAL, with criticism from the country's president adding to its woes April and May are two months that Korean Air (KAL) may want to forget. Hurt by a 15 April Boeing MD-11 freighter crash in Shanghai - its fourth hull ...
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Hong Kong fees fly high
Airlines should not count on any cut in landing fees when Hong Kong's airport authority completes its operational review in June. That is the warning from the authority, which explains that lower-than-forecast traffic means fees must stay high to avoid a shortfall in predicted revenues for the city's Chep Lap ...
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Venezuelans fight over US links
Infighting has intensified between Venezuela's three major airlines over links to the all-important US market. The intensity of these skirmishes stems from Venezuela's transition to multiple designation and a fear by each of these carriers that one of the other two may gain the upper hand. The latest row ...
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Two years old and still growing
Nicolas Ionides SYDNEY Star Alliances has added two new partner airlines, but as it met to celebrate its second birthday, it is still in search of its full identity. Seated side by side at an informal press briefing in a Sydney hotel, Jürgen Weber and Gerald Greenwald admit ...
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Privatisation hopes survive Indian politics
Ravi Prasad NEW DELHI Despite the fall of the Hindu nationalist-led coalition government, there are hopes that privatisation of Air-India and Indian Airlines could still go-ahead. The federal cabinet has allocated Rs32.5 billion ($830 million) for Indian Airlines to increase its equity base and authorised it to ...
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Jockeying for position
Tom Gill While European and US hubs remain buoyed by healthy traffic flows across the Atlantic, the airports of Asia-Pacific have yet to see concrete signs of recovery in passenger numbers to fill the bright new capacity that has been coming on stream. If growth through the world's airports ...
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Playing for profit
Chris Tarry at Commerzbank in LONDON Chasing market share has cost the industry dear in past cycles. To avoid a repeat, major airlines and their alliances must start to recognise that not all growth is good for profits. Alliance strategy in one form or another has come to dominate the ...