All Strategy articles – Page 1104
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News
Union action is ailing BA
British Airways' chief executive Robert Ayling was forced to adopt a more conciliatory tone with the airline's largest trade union, the Transport and General Workers' Union when, during a three-day strike by cabin crew in early July, BA ground staff voted to reject the package of terms and conditions linked ...
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Aer Lingus is left in a stew
Aer Lingus may need its share of the luck of the Irish to pull it back from the brink of pending financial disaster. The airline requires equity investment via a public flotation or a strategic alliance, combined with a severe cost cutting programme, to pre-empt repetition of its ...
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Agents of change
The combination of commission capping by airlines and the advent of new technology was expected to spell doom for many in the travel agency business. But cushioned by the economic upturn, the sector is starting to adapt to the changing environment in a bid to survive. By Jane Levere. Commission ...
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Airports face down charge
Brussels' second attempt to push through legislation to harmonise airport charges in Europe has attracted the usual hail of criticism from both sides of the industry. Airport charges vary widely across the European Union. In its draft proposal, the Commission highlights a 'cost variation for these facilities and ...
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...and eyes up ANZ stake
After pinning down its far-reaching alliance with Air New Zealand and Ansett, Singapore Airlines is reaching for its chequebook in preparation for equity investments in Asia-Pacific carriers. SIA is talking about becoming a part-owner of Ansett, Air NZ or both, according to insiders. At the same time, the ...
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Big seven hit by tax lobby
The seven US majors lobbying to replace the universal 10 per cent ticket tax have talked themselves into a corner and look set to end up with an extra $4 billion to pay over the next five years. This is the estimate of one Washington lobbyist, who says ...
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Business revolution
While Ansett Australia is certain to benefit from its relationships with Air New Zealand, United and Singapore Airlines, the carrier knows that internal change is required to ensure a more profitable future. By Tom Ballantyne. When former Cathay Pacific managing director Rod Eddington took control of financially struggling Ansett ...
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Unity comes to Caribbean
The Caribbean islands, jolted by the damaging implications the threatened pilot strike at American Airlines could have had on tourism to the region, have put aside internal differences to pursue a unified commercial aviation policy. Air Jamaica and Montego Bay Airport, now designated the carrier's hub for the ...
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Xiamen joins China float
Xiamen Airlines looks set to become the fourth Chinese airline to go public, following the boost the domestic carrier has given to its majority shareholder China Southern Airlines in advance of its parent's late July stock market debut. At presstime, China Southern was heading for Hong Kong and ...
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Cry Wolf!
After 18 months as chairman and CEO Stephen Wolf has changed USAir's livery and name to USAirways but achieved precious little else. As he struggles to persuade the unions of the need for concessions, Karen Walker asks if this US airline veteran's bark is now worse than his bite. Could ...
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Five vie for cut of LAM
Three airlines have emerged as bidders for a stake in LAM Mozambique Airlines, with a decision due by October. In total five consortia, including three led by TAP Air Portugal, South African Airways, and Air Mauritius, have pre-qualified to bid for a 51 per cent stake in the ...
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KLM ponders US disposal
As KLM increased its holding in Air UK to 100 per cent, speculation was mounting that the Dutch major was close to selling its 19 per cent stake in partner Northwest Airlines. The move by KLM to sell its stake in Northwest is seen by analysts as the ...
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SIA re-opens Indian file
Singapore Airlines looks set to become the first beneficiary of the latest twist in India's convoluted efforts to develop a coherent aviation policy. The country's new prime minister has directed the aviation ministry to abandon its two-month old ban on foreign ownership of domestic airlines, opening the door again to ...
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French kiss of life?
Air France is getting into shape with a healthier balance sheet and budding alliance strategy. But its privatisation plans could be scuppered by the new French government and union problems remain. Lois Jones reports from Paris. Inhale, exhale. Inhale, exhale. Anybody got a spare inhaler handy? Air France needs more ...
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Qatar plans Gulf shuttle
Qatar Airways plans to introduce the first intra-Gulf 'shuttle' service as part of the airline's ambitious relaunch. Qatar intends to launch a minimum of four daily turboprop services from Doha to Dubai and Abu Dhabi by the end of 1998. If successful, Qatar will extend the 'shuttle' concept ...
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Jakarta trio seek remedy
Indonesia's financially battered airlines are taking extraordinary measures in their bids to turn around their performance, including the end to most domestic competition. Privately owned Sempati Air, with debts of more than US$300 million, has given up competing with national flag carrier Garuda Indonesia Airways and entered an ...
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Virgin leaves Sun's orbit
In a surprise move, Virgin Atlantic Airways has opted out of the bidding for a stake in its current South African partner Sun Air, and has set its sights on the biggest fish of all, South African Airways. Virgin's withdrawal from the sale of state-owned Sun Air means ...
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US starts up merge mania
Low-fare, low-cost startups on both the east and west coasts of the US are seeking critical mass through mergers in their struggle for survival. On the east coast, ValuJet's mid-July merger with Airways Corporation allows the Atlanta-based airline to obtain critical mass without technically infringing the growth restrictions ...
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Power to the plans
As the major alliance partners strengthen the ties between their frequent flyer programmes, the combined power of FFPs to influence the all-important business class traveller has made frequent flyer plans more important to global alliances than codesharing. Report by Jackie Gallacher. 'It is the glue to hold the alliance together.' ...
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Shifting sands
European carriers have taken the lead across the North Atlantic, and major airports like Detroit, Heathrow and Amsterdam have emerged as the clear winners. April Pearson examines the latest data on the US-Europe market. Newly released International Onboard traffic data demonstrates how much the most competitive airline market in the ...