All Strategy articles – Page 992
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Chinese airline tie-up talks break down
Merger talks between Air China and China Southern Airlines have broken down, Beijing-based industry sources say. Reports say talks failed amid continuing concern over flag carrier Air China's financial shape, with China Southern unsure of the merits of a merger. Flight International sister on-line service Air ...
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Virgin drops Sun Air plans
Virgin Atlantic Airways has abandoned plans to revive failed South African regional carrier Sun Air, but is chasing a tie-up with another regional, Nationwide Airlines, after winning a weekly frequency to Cape Town ahead of UK rival British Airways. Virgin already flies to Johannesburg and had codeshared on Sun ...
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Europe seeks views on Galileo navigation system
Emma Kelly/AMSTERDAM The European Commission (EC) has set up transportation groups to start gathering views from potential users of the Galileo satellite navigation system. Although forums have been established for the maritime, road and rail industries, no such group has been set up for aeronautical users. "We don't want ...
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Delta, SIA and Swissair sever equity ties
Andrzej Jeziorski/SINGAPORE Delta Air Lines and Swissair are unravelling their remaining ties with Singapore Airlines (SIA), as the Asian carrier moves closer to entry into the Star Alliance. The Swiss and US airlines have sold their equity in SIA, which has in turn offloaded its shareholdings in the ...
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Sony Trans Com sell-off near
Emma Kelly/SALT LAKE CITYAn unidentified avionics manufacturer, widely believed to be AlliedSignal, is conducting a due diligence review of Sony Trans Com with a view to buying the in-flight entertainment (IFE) supplier from Sony. Sony Trans Com declines to confirm the identity of the suitor, saying only that the company ...
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European low cost carriers fold as competition hots up
Andrew Doyle/MUNICH Max Kingsley-Jones/LONDON Increasing competition between Europe's low fare airlines has forced two more independent carriers to cease operations. One-year-old Norwegian scheduled airline Color Air has been shut down by its parent company after failing to show signs of turning around its mounting losses, while the UK's ...
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Rockwell to join audio/video/on-demand club from next year
Rockwell Collins Passenger Systems will test audio/video/on-demand (A/VOD) capability on its Total Entertainment System (TES) with an unidentified airline in the first quarter of next year. Rockwell is the last of the major in-flight entertainment (IFE) hardware suppliers to offer A/VOD functionality, which provides passengers with control over their ...
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Airlines cut millennium flights
David Learmount/LONDON Airlines are cutting flights 24h either side of midnight 31 December in response to lower than normal passenger bookings. Overall passenger demand is following a "seasonal pattern", according to scheduled and charter carriers, people are travelling earlier for a longer New Year holiday and want to be at ...
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DHL completes British Airways 757 deal
Max Kingsley Jones/LONDON DHL has concluded its long- running negotiations with Boeing and British Airways for the acquisition of a massive fleet of converted Boeing 757 freighters, and will take the first of 44 aircraft in mid-2001. An announcement was expected on 5 October. Discussions between DHL, BA ...
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Recovery route
NICHOLAS IONIDES MELBOURNE Ansett's chief executive has made a running start at turning the airline's finances around and inserting it into a global alliance. But there is still plenty of work to do. "When I arrived at Ansett we had what I have described as a Noah's ...
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A question of scale
KEVIN O'TOOLE Conventional wisdom has held back outsourcing of heavy maintenance, but as it starts to be challenged, only as few as a dozen airlines may emerge able to justify keeping work captive, argues IPG Consulting. On paper the equation looks perfect. On one side, airline boardrooms are keen ...
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Low-cost survivors
CAROLE SHIFRIN WASHINGTON DC After years of uncertain and even disastrous performances by new entrant carriers in the USA, some seem to be thriving and even beginning to report profits. Why did these start-ups survive where so many failed? Accepted wisdom in the USA is that the fate ...
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Iberia prepares to float
The delayed flotation of a 54% stake in Iberia will start in the last week of November, according to the Spanish flag-carrier's chief executive, Angel Mullor. The initial public offering (IPO) should raise Ptas300 billion ($2 billion) for Iberia's parent, the state-owned holding group Sepi. The sale marks the ...
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Labouring in Europe
TOM GILL LONDON Industrial relations appear to have improved and European workers are becoming more efficient. But will the changes be far-reaching enough to enable airlines to cope with cyclical downturn? The British Airline Pilots Association(BALPA) describes itself as "serene". The UK white-collar union MSF says it is ...
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Delta pilots talk tough
KAREN WALKER WASHINGTON DC Delta Air Line pilots have thrown down the gauntlet to airline management and demanded formal negotiations in one of the most important US contract negotiations of the year. But a swift response by management has already led to a tentative agreement In addition to ...
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Probing the costs
JACK SELLSBY LONDON IATA's upgraded maintenance accounting system offers cost transparency and gives participating airlines the best chance yet to benchmark globally Establishing the true cost of maintenance has never been a straightforward affair, even within the most sophisticated of airlines. Attempts to make meaningful comparisons between different ...
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New challenge to charter
European low-cost scheduled operators have begun to make small inroads into traditional charter markets. But, despite some aggressive noises, they have some way to go before posing a serious threat. Europe's low-cost carriers may continue to grab the headlines, but one sector remains resolutely unimpressed. The traditional charter airlines ...
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Cintra's chief faces challenge
DAVID KNIBB SEATTLE Jaime Corredor Esnaola, the new head of Cintra, takes over the holding company for Aeromexico and Mexicana Airlines at a challenging time. After replacing Ernesto Martens, who retired at the end of August, one of his first moves was to announce that Mexico's federal ...
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UK cargo carriers pin hopes on Europe
PETER CONWAY LONDON UK cargo airlines angry at a controversial government decision that grants new rights to US operators, hope to generate the consensus needed by the European Commission to negotiate broader cargo rights with the USA. In August, the UK Government granted fifth freedom rights out of ...
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Olympic work just begun
LOIS JONES LONDON Olympic Airwarys appears to be making financial gains by attacking costs, but a major restructuring effort still faces the Greek carrier's new management team. The Greek Government tendered the management of Olympic to British Airways consulting subsidiary Speedwing, with a view to making it more ...