All Strategy articles – Page 1062
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News
Marketplace
-Egyptair has signed a firm contract with Airbus Industrie for four A340-600s, including two orders and two options. It will introduce the 400-seat, Rolls-Royce Trent 500-powered A340 in 2003. -Southern Air Transport has taken delivery of a Boeing 747-200F, acquired from Northwest Airlines, which is being operated ...
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Do not pass 'go'
So British Airways' no-frills start-up is "Go"; but will it - and what sort of response will it attract from powerful European competitors like Lufthansa? Even more important, from where will the passengers come to make these no-frills airlines work? The justification for an existing airline to launch a ...
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Northwest and Continental tie-up raises Alitalia/KLM hopes
Kevin O'Toole/LONDON Julian Moxon/PARIS The tie-up between Northwest and Continental Airlines has been welcomed by European partners Alitalia and KLM, offering the prospect of a global alliance within five years. "The deal opens the door to a much wider co-operation," says Fausto Cereti, chairman of Alitalia, which already ...
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British Airways is ready to Go with no-frills contender
British Airways is to launch its London Stansted based "no-frills" division under the name Go. The launch is set for early in the second quarter of 1998. Go's chief executive Barbara Cassani denies that the new airline's remit is to eliminate new low-cost entrants such as easyJet, but warns that ...
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US airline profits are 'best ever'
The major US airlines ended 1997 with their strongest profits on record, but the celebrations were accompanied by the promise of more turbulence ahead, with the fall-out from Asian economic crisis and the prospect of a renewed round of consolidation closer to home following the Continental/Northwest Airlines tie-up. With only ...
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South African long-haul airline prepares to launch
A new South African airline, Air South Africa, plans to launch services between Johannesburg and London with a Boeing 747 during the third quarter of this year. Although Air SA's licence was approved by Pretoria's Air Services Licensing Council in 1997, the launch has been postponed twice after delays in ...
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Wexford agrees to acquire US regional
US Airways Express carrier Chautauqua Airlines is to be acquired by US investment firm Wexford Aviation, which plans to place some of its recently ordered Embraer RJ-135 and RJ-145 regional jets with the Indianapolis-based airline. Greenwich, Connecticut-based Wexford has agreed to acquire 100% of privately held Chautauqua, which had ...
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Emirates nears A340 decision
Ian Sheppard/LONDON Emirates Airlines is preparing to make a decision on its long-awaited requirement for ultra-long-range aircraft. The airline signed a letter of intent (LoI) with Airbus for up to A340-500s in November 1997, but has kept the manufacturer waiting because of Boeing's last-minute attempt to meet performance demands ...
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Latin carriers link for A320 deal
Three major Latin American carriers, TAM of Brazil, TACA Group of El Salvador and LanChile, are in final negotiations with Airbus Industrie to place a joint order for up to 130 A320-family aircraft. The deal should be concluded by March. LanChile confirms that it has already signed a letter ...
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Qantas and Virgin compete for Cathay's surplus 747-200s
Paul Lewis/SINGAPORE Cathay Pacific Airways has entered into detailed discussions with Qantas of Australia and Virgin Atlantic Airways to sell its fleet of seven surplus Boeing 747-200 passenger aircraft. Qantas is also being offered an interim development of the proposed 747-400 increased-gross-weight (IGW) variant by Boeing to meet the carrier's ...
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Rwanda rosette
Alliance Air has taken over Air Rwanda's operations and will start services to Kigali on 1 March. The new airline, to be called Alliance Express, will offer a regional network, taking in Uganda, Tanzania and Rwanda, and dovetailing into Alliance Air's international services. Source: Airline Business
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DOT spotlights fare changes
The US Department of Transportation began publishing its domestic airline fares consumer report in response to an increasing number of inquiries about ticket prices. The first report, for the third quarter of 1996, was released in June last year and the latest report is based on data for the second ...
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Tamed by politics
Report by Tom Ballantyne It seems that every time a new Indian aviation policy ship gently eases itself into port, an election storm rears its head and dashes it onto the rocks. As India's two state-owned airlines, Air-India and Indian Airlines, prepared for the New Year after a ...
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Lufthansa say in SAA?
Roger Makings Lufthansa is set to enter the fray for a stake in South African Airways' partial privatisation, due to be finalised by October this year. Lufthansa had consistently denied that it was interested in buying into SAA, saying acquisitions were 'not its style - we prefer to ...
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SIA shares its profits
Tom Ballantyne Asia's big profit-maker Singapore Airlines is to end its dual stock exchange listing by merging its local and foreign shares, providing the move doesn't impact Singapore's air service agreements. Mathew Samuel, the airline's legal and administration director, confirms that SIA is 'actively considering whether or not ...
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Red ink rains over Korea
Tom Ballantyne South Korea's airlines are scrambling to downsize and slash costs as the region staggers from the blow of Asia's worsening economic crisis. Flag carrier Korean Airlines faces more than US$900 million in foreign exchange losses after the local currency, the won, dived 40 per cent against ...
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French stick over partner
Doug Cameron Investment bankers are sharply split over Air France's ability to secure a strategic airline investor and Air France's advisers have retreated from supporting a trade sale after the collapse of its planned Alitalia agreement. Air France plans an equity issue of FFr18 billion (US$2.9 billion) in ...
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Higher US fares are hitting home
As US domestic fares continue to rise, more business travellers are making concessions in order to obtain lower fares, or are switching to low-cost carriers. Report by Karen Walker. The New Year had barely been rung in when both American Express and the US Department of Transportation confirmed what most ...
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Iberia faces inquisition?
Doug Cameron Iberia is courting trouble with the Spanish competition authorities after reaching agreement for a franchise deal with its main domestic competitor, Palma-based Air Europa. Iberia suffered capacity shortages during 1997 and was forced to wet lease a variety of aircraft, resulting in a fall in service ...
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Hungary for private eyes
Peter Bennett The Hungarian privatisation agency, APV, means to privatise its flag carrier Malev by 2000 but a strategic foreign partner is not yet in sight. Malev's sell-off is set to be a complicated one with a 40 per cent state-owned stake floated in an initial public offering ...