All Strategy articles – Page 1047
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News
Developing crisis
It is a nightmare scenario for any company. Immense production problems are overcome at huge expense, just in time for the market to collapse. For Boeing, the timing could hardly be worse. As quickly as the company's production recovery takes effect, the deepening impact of the Asian economic crisis starts ...
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Frontier share purchase makes Vanguard tie-up a possibility
The main shareholders of Kansas City-based Vanguard Airlines have taken an 8% shareholding in Denver-based Frontier Airlines and hinted about a possible combination of the two regional US airlines. The investors, headed by William Hambrecht, say that it is desirable for Frontier to explore various relationships with Vanguard or ...
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GPA sale
Air Canada has sold its remaining 10.2% interest in leasing company GPA. The bulk of the shares have been acquired by a Texas Pacific Group subsidiary, although other shareholders have also purchased shares. Air Canada will realise an after-tax gain of C$18 million ($11.7 million) on the sale. Although the ...
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MD-90 delivery kicks off Aserca's fleet renewal
Aserca Airlines has begun its fleet renewal programme with the delivery of a new Boeing MD-90 and is now finalising plans for additional aircraft. The Venezuelan airline has taken the aircraft on lease from Taiwanese leasing company Hwa-Hsia Leasing, via Caribbean airline Air Aruba, which has also just introduced ...
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Alitalia and KLM sign unity
Julian Moxon/AMSTERDAM KLM and Alitalia signed a far reaching "master cooperation agreement" on 27 November, which, although it stops short of equity exchange, commits the two airlines to "uniting as deeply as possible". Alitalia managing director Domenico Cempella warns, however, that the airline, which is still majority government-owned ...
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PAL/Northwest talks cast doubt on Cathay bail-out
Andrzej Jeziorski/MANILA Philippine Airlines (PAL) has thrown into question Cathay Pacific's attempts to acquire a controlling stake in the debt-ridden carrier, by restarting talks with Northwest Airlines. Northwest has previously shown interest in PAL, as has Singapore Airlines, but talks with all other interested parties had been suspended ...
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BA's CityFlyer buy bolsters Gatwick hub
Max Kingsley-Jones/LONDON CityFlyer Express says that no significant changes will result from the £75 million ($124 million) take-over by its franchise partner, British Airways. The London Gatwick based regional airline has a conditional agreement with BA to purchase the entire company. The deal is subject to formal approval ...
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Lawsuit fails to stop Northwest purchase of Continental stock
Northwest Airlines has completed its $311 million purchase of 51% of Continental Airlines' voting stock owned by David Bonderman's Air Partners investment house, despite anti-trust objections from the US Justice Department. The transaction will lead to a so-called "virtual merger" of the airlines, linking route networks through codesharing and ...
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Northwest eyes regional jets
Ramon Lopez/WASHINGTON DC Northwest Airlines is expected to decide early next year whether to equip its Memphis, Tennessee-based Northwest Airlink subsidiary, Express Airlines I, with regional jets, according to industry sources. The matter was discussed at the US major's recent board meeting, but a decision was put off ...
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Marketplace
-Bombardier has confirmed the BWIA International Airways order for two new Dash 8Q-300s for delivery in mid-January 1999, plus options on another two. -Icelandair has converted two of its five options for Rolls-Royce RB211-powered Boeing 757-200s, for delivery in 2000 and 2003. -Danish charter airline Sterling European Airlines will ...
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BA and American agree 10% Iberia stake
While the alliance across the Atlantic appears to have been scaled back, British Airways and American Airlines are moving ahead with their European and Latin American links. BA and American are taking a 10% stake in Iberia, according to Spanish state industrial holding company SEPI, with BA taking at ...
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West African optimist
Plagued by debts, short of aircraft and without a strategic partner, the outlook remains tough for Air Afrique. But chairman Sir Harry Tirvengadum is banking on a new privatisation plan. It is difficult not to be impressed by how calm and collected Sir Harry Tirvengadum has remained since his arrival ...
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KLM-Alitalia alliance moves ahead
It could take up to six months before normality is restored for airlines flying to Milan's new Malpensa airport, despite claims by the hub's owner, SEA, that normality will be restored by the year-end. The opening was marked by chaos, with long delays and an unintentional recoating of airline ...
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Royal Air Maroc gets back on track with record
Royal Air Maroc has staged a dramatic turnaround, underlined this year by what promises to be a record haul of profits and some ambitious expansion plans. Official figures have yet to be published for the Moroccan flag carrier's latest 1997/8 financial year to October, but it is confident that ...
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Airports Gearing up to grow
An unprecedented enthusiasm for commercialisation is sweeping the world's airports. Old public service concepts are out. The new creed is cost containment, private finance, aggressive marketing and even acquisition strategies. But before the airline customers start to celebrate, there are potential penalties as well as gains from this latest trend. ...
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Airports can be low cost too
Spurred on by the low-cost carriers, Europe's local airports have begun to reinvent themselves as low-cost alternatives to the major hubs. Much attention has been lavished on the rise of Europe's low-cost airlines. But it is not only the carriers which are cutting costs. Following fast on their heels ...
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Asia in full alliance frenzy
In a clear response to adversity, Asia's weaker airlines are offering equity to stronger carriers and nearly everyone is scrambling for a position in one of the global groups. Philippine Airlines (PAL) is anxiously seeking a white knight. As the 20 November restructuring deadline drew near, Cathay Pacific appeared ...
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Newsline Asia
Mandarin merger - China Airlines has set a June 1999 target date for the merger of its subsidiaries Mandarin Airlines and Formosa Airlines. The merged carrier will retain the Mandarin name, but will focus entirely on domestic services. Garuda shake-up - Debt-ridden Indonesian airline Garuda has appointed a new ...
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Star attracts a galaxy
The Star Alliance will expand to nine full members before the end of 1999, following All Nippon Airlines' (ANA) decision to join. ANA president, Kichisaburo Nomura, says his company will take up full membership at the start of October 1999, following the example of Ansett and Air New Zealand, ...
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Continental seeks justice
The US Department of Justice's (DOJ) decision to mount a legal challenge to the proposed purchase of a 14% stake in Continental Airlines by Northwest Airlines throws a question mark over the future shape of the alliance. Continental Airlines insists it will pursue the pact and that the two airlines ...