Strategy – Page 1008
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KLM uk goes on the offensive
KLM uk has struck back at Stansted-based rival Go by revealing the first phase of a revamp of operations at its London hub. The airline says it aims to tackle the low-fare division of British Airways head on, with an increase in frequencies to Edinburgh, Scotland, to seven services a ...
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EC views Malpensa transfer as anti-competitive
The European Commission's (EC) transport directorate has ruled against Italy's plan to transfer the majority of airlines now operating at Milan Linate to the new hub at Malpensa. Transport commissioner Neil Kinnock says the Italian transport ministry decree forcing airlines with routes on which fewer than 2 million passengers ...
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Pilot unions unite
The Alliance Coalition, a grouping of pilot unions, was formed on 26 August to represent the interests of around 24,000 pilots possibly affected by the proposed British Airways/American Airlines alliance. This will include sharing collective bargaining agreements and development of a global strategy. Employees of 11 airlines are represented: Aerolineas ...
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SAA chief urges government protection
Hilka Birns/CAPE TOWN South African Airways (SAA) chief executive Coleman Andrews has urged Pretoria to cut jet fuel prices and use regulatory powers to defend SAA on international routes while it reorganises its fleet and network. Andrews told a parliamentary committee that SAA could save up to R80 ...
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Kitty Hawk cuts it fine in bid to acquire Southern Air Transport
Ramon Lopez/WASHINGTON DC Kitty Hawk has revealed plans to purchase Southern Air Transport (SAT) after merger negotiations unexpectedly broke off between financially ailing SAT and Fine Air. Dallas, Texas-based Kitty Hawk, a charter passenger and cargo carrier which recently acquired American International Airways and other Kalitta companies, agreed ...
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Sporty Games
So British Airways has at last placed an order with Airbus Industrie, some 30 years after the European consortium was conceived with the primary aim of building an aircraft for BA's predecessor, British European Airways (BEA). The fiercely fought battle between Airbus and Boeing for this much prized order ...
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Back to basics
Paul Lewis/SEOUL & SINGAPORE Asia's embattled aerospace industry will likely reflect on 1998 with utter dismay. Once-bold Asian aeronautical ambitions to be a global player have been confined to the scrapheap after a series of setbacks. The focus is now on a post mortem examination to determine if and ...
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Seeking quiet
Paul Seidenman/SAN FRANCISCO Airport noise regulations worldwide are becoming ever stricter, putting airframe and engine manufacturers under increasing pressure to deliver quieter aircraft. In the USA, NASA's Advanced Subsonic Technology (AST) programme is a joint government-industry research effort which names aircraft noise reduction as a primary objective. Running since ...
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Airbus breaks into BA with huge A320 order
Max Kingsley-Jones/TOULOUSE Airbus Industrie has landed one of the biggest deals in its history with British Airways' decision to place an order for up to 188 A320 family aircraft - the first time it has placed an order with the European consortium. The deal was only done after BA ...
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Garuda embarks on major restructure
Paul Lewis/SINGAPORE Garuda Indonesia's newly appointed president has embarked on a comprehensive overhaul of the financially stricken carrier, involving new financing for a reduced fleet of aircraft, cutting routes, new code-share agreements, the axing of over 40% of the airline's staff and the sale of non-core businesses. "What ...
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New Airline Business Editor
New Airline Business Editor Kevin O'Toole This month I take over as Editor of Airline Business. In doing so, I inherit a magazine with an established reputation as aviation's leading boardroom title. But like the industry it serves, Airline Business cannot afford to stand still. The task ahead is ...
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The devil's in the detail
The European Commission's rulings on two transatlantic alliances will be poured over by interested parties before official comments are filed. Now that the European Commission finally has produced its conditions for approving the American Airlines/British Airways alliance, lawyers will be scrambling to examine the detail. The Commission's competition directorate, ...
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Air Afrique in crisis again
Air Afrique hopes to overcome its worst crisis yet by privatising and forming a strategic partnership, but critics say the airline's chairman has mismanaged and should resign. The heavily indebted Côte d'Ivoire-based carrier, owned by 11 African states and Air France, has defaulted on payments for four Airbus A310-300s ...
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Air-India fights losses
A report has claimed Air-India is fast slipping into a debt trap where its repayment commitments are so high that the airline could be forced to resort to further loans. 'Air India's net worth will turn negative by June 1999 if adequate funds are not infused immediately and the ...
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Report weakens airport campaign
First, the good news. According to an official report, most of the runways in the US national airport system are in good to excellent condition. The bad news is that this may not be good for the airports. It will not be good news if the report, compiled by ...
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Keeping score
Airlines need an accurate means of comparing the potential benefits of their various alliance options and, once the choice is made, to assess the costs and benefits to each partner. The argument about whether alliances are effective and therefore inevitable is over; they are both. The potential benefits to ...
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Argentinian airport fray
Airlines are stepping up their campaign over rising charges in Argentina's recently privatised airport system but some believe this is flying in the face of standard airport practice. Iata led a high level delegation to the Argentinian government and regulators in early August to seek a revision of the ...
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Bouillioun still bullish
Boullioun Aviation Services has strengthened its claim on the number three spot among operating lessors by placing an order worth up to US$2.6 billion for new-generation Boeing 737s. With new financing for its subsidiary, Singapore Aircraft Leasing Enterprise (SALE), Boullioun continues to show its determination to keep growing despite the ...
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Beware treading the bear market
The world economy is in precarious shape.The Asian crisis is expected to cut growth by over one third in 1998. The Japanese economy will contract by at least 1 per cent, prolonging the slump throughout the East Asia region, despite the big expansion package put in place in Tokyo. The ...
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Profits for better and for worse
Airline profits may be at an all-time high but can the industry keep them there? It's just déjà vu all over again. So a disillusioned sportsman is said to have remarked on seeing his team once again collapse to defeat. There may be more than a few in the airline ...