All Strategy articles – Page 1126
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BA re-organisation
British Airways has confirmed that talks are under way to establish a single holding company for the two French airlines in which it has a stake, Air Liberté and TAT. In early January, the UK carrier was given the go-ahead for its take-over of bankrupt Air Liberté, in partnership with ...
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Three BA directors leave USAir board
USAir says that the resignation of three British Airways directors from the USAir board "-clears another obstacle in USAir's path toward becoming an effective competitor in the US/UK market". The BA officials left the board in preparation for USAir ending its codeshare arrangement with the UK carrier in March. ...
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British Midland lobbies EC for European slots at Heathrow
British Midland (BM) has entered the fray over the British Airways/American Airlines alliance, arguing that slots should be made available for its European feeder services rather than exclusively for new transatlantic operations. Chairman Sir Michael Bishop says that the move follows the recent intervention of European competition commissioner ...
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Indian policy move defers SIA/TATA venture
The Indian Government has again deferred a final decision on plans by Singapore Airlines (SIA) and the TATA Group for a joint domestic start-up airline, in the face of continued strong opposition from civil-aviation minister CM Ibrahim. Prime Minister H D Deve Gowda's cabinet has instead approved a ...
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Appointments
Mike Street, British Airways' director of operations, has assumed the responsibilities of chief operating officer Alistair Cumming, who retires in June. Charles Gurassa, current director of passenger business, becomes director of passenger and cargo business. Colin Matthews has been appointed managing director of British Airways Engineering. Henry Fan, ...
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Taiwan's trade
Taiwan hopes to trade its agreement to a new trans-shipment centre for FedEx in Taipei for additional access to the US market for Eva Air and China Airlines. The latter wants to add Chicago, Miami and Houston while Eva has applied for Washington DC. FedEx plans to open the centre ...
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Lufthansa sale
The German government has approved a bill for Lufthansa's full privatisation ahead of the flotation of the state's remaining 35.68 per cent stake later this year. Foreign ownership will be capped at 50 per cent. Three-fifths of Lufthansa's employees have acquired the equivalent of 0.5 per cent of its capital ...
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The sales of the century?
The sales of the century? NetsAAvers, CyberSavers, E-Savers or On-Line Travel Specials - under various names, four of the largest US carriers, plus a handful of others, are experimenting with using the Internet to promote special fare deals. They are selling what is essentially 'distressed' inventory - seats on weekend ...
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Courts cap Dutch action
KLM Royal Dutch Airlines and Northwest Airlines both claim small victories in the legal battle between the two alliance partners which suggest the simmering dispute is no nearer a settlement. The New York supreme court made an interim decision upholding only two of six KLM arguments in a ...
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Gulf Air split put on hold
Gulf Air's future remains in doubt as Abu Dhabi still looks set to succeed in its bid to take control of the carrier. The bid by the oil-rich Emirate was put on hold following new objections from Qatar and Oman. Concerned about their ability to grow their own ...
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BA tightens Euro screws
British Airways will intensify its efforts to turn around its unprofitable operations in France and Germany after the acquisition of Air Liberté and the relaunch of Deutsche BA. Air Liberté's fate rests in BA's hands after the commercial tribunal in Creteil finally approved BA's recovery plan, filed in ...
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Rebuild with care
New faces in Washington mean action in the most controversial area of FAA reform - funding - is on hold. But the sparks should still fly in 1997. The new US Federal Aviation Administrator may want to consider investing in a pair of velvet gloves on taking up office. ...
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SIA cautious on India link
Singapore Airlines' plan to launch a joint venture start-up in India has run into more trouble. The country's civil aviation minister has cast doubt on the plan's official approval by India's Foreign Investment Promotion Board (FIPB). SIA has been lobbying with Tata Industries to launch the airline since ...
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Sea change
A change of government has resulted in a new chief executive for Air Malta, as well as a narrower focus. The airline's investment in Italian startup carrier Azzurra Air is now being questioned. Ian Verchere reports from Malta. Malta's unexpected shift to the Left at the national elections in November ...
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Delta dumps Frankfurt hub
By insisting his airline will remain the number one transatlantic carrier and the leading US carrier in Germany, Delta Air Lines' chairman Ron Allen is trying to put a positive spin on the winding down of the Frankfurt hub. The decision, which is expected to boost operating profits ...
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Iberia set to drop Viasa
Iberia is set to end its Latin American airline odyssey after shareholders and unions rejected the Spanish airline's plan to restructure Viasa. The tough stance adopted by Iberia's senior management suggests that new president, Xabier de Irala Estevez, will shrug off political pressure to maintain existing links with ...
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Web fever
Business gurus like to portray the Internet as the best marketing opportunity ever and most airlines and aerospace companies have jumped onto the bandwagon. Richard Whitaker goes surfing to see what is on offer, and Jane Levere discusses the trend towards airlines using the Internet for distress sales of inventory. ...
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Garuda link
Garuda and Northwest Airlines have signed an MoU to pursue a broad marketing and operating alliance. The deal envisages codesharing, schedule coordination, a CRS linkup and joint marketing. On the operational side, Northwest plans to extend its three weekly Seattle-Osaka flights to Jakarta. Source: Airline Business
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Skating on thin ice
Competition, high costs, declining yields, and powerful unions are weighing heavily on SAS, but salvation could lie in its growing alliance grouping. It must be like hoarding a treasure chest, only suddenly to find a queue of people knocking on your door demanding a share of the booty. SAS ...
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Mutual interests
Mutual funds own substantial shares in most major US airlines. James S Altschul examines how they look at the airline business, and asks how much influence they wield. They are the behemoths of the equity investment world. Fuelled by a surging stock market, growing retail interest in equities, and a ...