Strategy – Page 1022
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When the going gets tough
Lois Jones/BRUSSELS European Union competition commissioner Karel Van Miert is a man of many contradictions. One leaps out at you from the moment you meet him: his loud, lurid ties offset his traditional sober suit, which blends in with the many others lining the corridors of the European Commission in ...
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World woos coy Cathay
Every major airline group in the world is wooing Cathay Pacific to join its alliance. And Cathay admits that the time has come to end its long-standing aloofness and join ranks with other carriers. Cathay has been talking to all the major groups. It will not say in which ...
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Rule Britannia?
Backed by their tour operators, UK charter carriers Airtours and Britannia Airways are expanding into European markets like Germany and Scandinavia, pushing prices down and disturbing the cosy status quo. Report by Tom Gill When Britannia began providing intercontinental services out of Germany late last year, alarm bells began ringing ...
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Reform is vital to Japan's recovery
An overriding objective for the Western industrial nations during the East Asian financial crisis has been to limit the contagion in the region - specifically, to keep it away from Japan. There has been a clear awareness that Japan, the world's second most productive economy, has acute problems in both ...
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Competition rules in US
A new US Department of Transportation policy document defining anticompetitive behaviour, is prompting cries of 'reregulation' from most US majors. The document has appeared in the wake of a Senate hearing on the competitive impact of the US hub-and-spoke system, adding heat to an uncomfortable spotlight that seems set ...
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Crossing into the EU
The launch of its French subsidiary will give Crossair greater access to southern European markets and boost its Basle hub. Tom Gill reports. 'Some guys talk about the Star Alliance; well, we have our own new born star.' The star Crossair's president and CEO Moritz Suter is hailing is a ...
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Two Bobs stir the immunity debate
Could the two Bobs - Ayling and Crandall - have had an inkling of the amount of controversy they would raise when they first aired their plan to forge an alliance between their airlines? That controversy took yet another turn in March when Robert Ayling, chief executive of British ...
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Delta's quick fix?
Delta Air Lines' new chief executive Leo Mullin is getting to grips with the idiosyncrasies of the airline industry and rapidly addressing issues like service and low staff morale. But his options on the alliances front look limited. Karen Walker reports. 'This is a very strange industry,' remarked Delta ...
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Majors face test in Washington
Just as Washington is focusing on airlines, the carriers plan further concentration. The world of aviation is full of ironies. The competitive structure of the US airline industry is under closer political scrutiny than ever, with Senate hearings, a Department of Transportation policy statement on anti-competitive behaviour, and rumblings from ...
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Asian storm hits Garuda
The Asian economic slump is reinforcing industry opinion that the outlook for Indonesian carrier Garuda is bleak. Aviation analyst Nora Chang of HSBC James Capel echoes the general industry view when she rates Garuda's survival chances as 'poor'. But the Indonesian carrier is desperately cutting costs in a bid ...
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JAL takes big write-down
Japan Airlines has turned the year of the tiger into the year of cleaning up its balance sheet. JAL ended its financial year with a massive write-off which aims to speed its return to profits. Without the write-off of US$1.2 billion on 31 March, JAL would have reported a ...
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Emirates buys Lanka
Armed with a restructuring plan, Emirates Airlines has stepped in as a strategic investor for Air Lanka. The Sri Lankan government has sold a 40 per cent stake in Air Lanka to Emirates for US$70 million in cash. Sri Lankan aviation minister Dharmasiri Senanayake says Emirates has already paid ...
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US boost for Latin club
Trans World Airlines was planning in late April to join US Airways and become the second US airline partner in the regional frequent flyer programme, LatinPass. This follows the recent decision by Venezuela's Aeropostal, following its privatisation and revival, to join LatinPass. The addition of the two new members ...
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Poles apart from capital?
A proposed change in Polish state ownership law could further delay a vital capital injection for cash-starved LOT Polish Airlines, just as the Polish government lines up potential investors. The Polish government was due to shortlist consortium bidders for LOT in April and declare a winner by the end ...
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Shooting stars
The world's regional airlines grew strongly in 1997, and this sector remained the most profitable. Survey compiled by Tim Welch of Air Transport Intelligence and Richard Whitaker. The regional airline industry continues to be the healthiest sector in the business, judging by the results of this year's Airline Business Regional ...
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Euro no frills switch bases
As British Airways' low cost Go takes to the skies, the UK's leading no frills carrier, EasyJet, is expanding overseas while low-cost Virgin Express eyes a UK base. Go is due to start flying out of its London/Stansted base to Rome/Ciampino on 22 May, Milan/Malpensa on 23 May and ...
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Swiss qualify new partners
Swissair has expanded its European alliance to include TAP Air Portugal, THY Turkish Airlines and AOM of France and agreed to buy up to a 20 per cent stake in TAP. TAP, Turkish Airlines and AOM will join Swissair's existing partners Austrian Airlines and Sabena in an alliance to ...
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French open gates to US
Both Continental Airlines and Delta Air Lines were swift to respond to the new US-French bilateral by declaring their intentions to formalise codeshare agreements with Air France. The bilateral, initialled in Paris on 8 April, will allow full open skies to be phased in over five years, and immediately ...
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US to defuse time bomb?
The US Federal Aviation Administration admits that the year 2000 computer issue needs to be addressed on an international basis but is reluctant to take a leadership role. Instead the FAA suggests that the International Civil Aviation Organisation might be a better candidate. The FAA's reluctance stems from two ...
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Air France pilots receive scant sympathy from US colleagues
The US airline pilots association (ALPA) has provided an ambiguous reply to the request by Air France's main pilots' union, the SNPL, for a critical analysis of the carrier's salary structure. The SNPL is objecting strongly to Air France's insistence on a two-tier salary level and a 15% reduction ...