All Strategy articles – Page 978
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Italy clamps down on small regionals
Italy's civil aviation authority, Enac, has clamped down on several of the country's small regional airlines in its first moves to tighten regulatory inspections following its reorganisation in 1997. Air Sicilia is back in operation following the grounding of the chief pilot for failing to comply with numerous procedural ...
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Slow change
NICHOLAS IONIDES TOKYO The final changes in Japan's painstakingly slow aviation deregulation, from April, will at last pave the way for more new start-ups For a country that so often leads the world in technological innovation, it is ironic that change in other areas can be painfully slow in ...
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US-UK mini deal threatens to sideline cargo
PETER CONWAY LONDON The latest in the seemingly unending round of open skies talks between the USA and UK in Washington on 4-5 January failed to produce the widely predicted "mini deal" over access to London Heathrow. But most observers still expect some kind of interim compromise to emerge when ...
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Cargo on-line
PETER CONWAY LONDON A new system aims to bring air cargo into the Internet age. But is the model right for the market? For the past year, former McKinsey consultant Todd Morgan, together with his colleague Doug Ash, ex-managing director of global freight forwarder MSAS, have been touring airline and ...
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Mexico orders TAESA to raise new capital
DAVID KNIBB SEATTLE Officials have told Mexico's third largest airline to improve its financial viability by raising $130 million in new capital within the next 90 days. Taesa is putting a positive spin on the conclusions of a government audit by using them to entice investors. The investment order ...
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Canadian hopefuls flex their muscles
DAVID KNIBB SEATTLE Two start-ups and two incumbents are moving to fill the vacuum expected to result from Air Canada's takeover and makeover of Canadian Airlines. While none aspire to become a new Air Canada or Canadian, they foresee profitable low-cost, low-fares niches. Regional Airlines Holdings, led by ...
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CAL parent misses sale deadline
NICK IONIDES SINGAPORE The parent of China Airlines (CAL) has missed an end-of-1999 deadline for the sale of at least half of its 71% stake in the Taiwanese carrier. Although the company claims the sale deadline has only slipped, sceptics are again doubting its resolve to give up control. ...
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British Midland Commuter starts CityLine services
Andrew Doyle/COLOGNE British Midland Commuter was due to start flying services for Lufthansa CityLine on 1 February as part of a deal that will see the UK carrier take over the bulk of the routes from Munich operated by bankrupt Debonair. The wet-lease deal, which was close to ...
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In Brief - Europe
Aer Lingus to be floated The Irish Government has opted to go ahead with an initial public offering for Aer Lingus, rather than offer the oneworld partners a strategic stake in the airline. The flotation is expected late this year or early 2001. The carrier says the exact timing, ...
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TES programme resumes but BA says more work is needed
Emma Kelly/LONDON British Airways is resuming installations of Rockwell Collins Passenger Systems' Total Entertainment System (TES) on its widebody fleet after a temporary halt in the programme following initially disappointing seat availability figures. The airline claims improved performance of the TES, which is installed on 24 Boeing 747s and 777s, ...
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BA stake gains seats on Comair's board
British Airways has taken a minority stake in South African regional carrier Comair in a move that cements the latter's status as a franchisee of the UK flag carrier, which will get two seats on its board. The 18.3% holding cost BA R168 million ($28 million) and was bought from ...
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Garuda joins Asian recovery
Garuda Indonesia claims to have broken-even last year, reversing seven years of losses. The carrier's president, Abdulgani, says preliminary, unaudited, figures for 1999 show a 600 million rupiah ($83,000) net profit, after 1998's two trillion rupiah ($275 million) net loss. He says recent restructuring efforts are paying off. Abdulgani ...
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Employees' Ansett bid
Employees at Ansett Australia have made a bid for the 50% stake in the Australian carrier held by News Corporation. The plan has the support of trade unions, which believe co-owner Air New Zealand will find employees "more attractive partners" than it would a rival carrier. ANZ last year blocked ...
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Analysts see Sabre sell-off as positive move for AMR
JANE LEVERE NEW YORK AMR's long-anticipated decision to spin off Sabre, its global distribution system, appears to have created a win-win situation for both companies. In March, American Airlines' parent company AMR, which has owned 83% of Sabre since a 1996 initial public offering, will spin this stake off ...
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Routes - Americas
Southwest adds Albany Southwest Airlines is adding Albany in New York to its list of cities served, continuing its spread into the US north east. Flights will begin in May. Southwest, which has added seven north-east cities to its network since 1993, says expansion will continue. Mexican Express ...
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Iberian carriers strike alliance deals
BARRY CROSS LONDON Portugal's TAP and Portugália have signed a memorandum of understanding to re-establish co-operation, while Spain's Air Europa is linking with "Wings" . The TAP-Portugália deal, announced in December, revives commercial relations which had been broken off by Portuguese flag carrier TAP 12 months previously. During the summer, ...
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British Airways moves towards Internet network
British Airways has begun a major move towards use of the Internet Protocol (IP), signing a five-year $250 million contract for SITA to provide it with an IP-based global network infrastructure. The development will allow BA to add new systems on the IP network rather than on existing ...
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Australian challengers faced with airport constraints
Severe airport capacity constraints are a major obstacle to plans by Virgin Australia, Impulse Airlines and Spirit Airlines to take on Australia's established carriers. Their problems date back to 1988, when Australia still operated its tightly-regulated Two Airline Policy. At that time Canberra granted Ansett and Australian Airlines (later ...
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Air Canada free to ring the changes at Canadian
Air Canada has taken over Canadian Airlines following Ottawa's approval, ending a long and bitter battle for control of Canada's skies. Changes are already becoming apparent. Canadian had suspended Hong Kong and Manila flights and sold its Tokyo Narita slots to Air Canada, but Air Canada has started further ...
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Sun Air recovery hopes hit by SAA deal with Safair
ROGER MAKINGS JOHANNESBURG The saga over the liquidation of South African domestic carrier Sun Air has taken a further twist. Liquidators claim to have unearthed a deal between South African Airways (SAA) and leasing company Safair which effectively kills any chance of revival for the defunct carrier. SAA's bid ...