Strategy – Page 1065
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India equity ban is shaky
The only consolation the world's air transport industry can take from New Delhi's decision to bar foreign carriers from investing in India's airlines is that the country finally has a firm policy in place. The problem is that the imminent collapse of the government could soon open up the whole ...
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Battle of wills
Washington has changed tactics on Japan. When President Clinton wrote to Prime Minister Hashimoto last September to urge that Japan and the US replace their contentious bilateral with a new open skies agreement, that represented a change of thinking in Washington. For eight years the administrations had insisted on Tokyo's ...
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Korea opens with a catch
South Korea, long considered a non-starter in US efforts to forge open skies in Asia, is hinting that it may yet join the party, but Seoul's insistence on preconditions is likely to sit awkwardly in Washington. A Korean transport ministry official says his country is willing to sign ...
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Latin cargo tempts Asia
Access to unlimited beyond rights is one of the main goals for the US in its global drive for open skies and now Asian carriers are discovering there may yet be benefits in return, in the booming Latin American cargo market at least. China Airlines will become the ...
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LOTs of luck at third try?
The management at LOT has got its hands full. Not only is this year crucial for the third attempt at a partial sell-off but the Polish carrier is also introducing five new aircraft, resulting in the biggest single capacity hike ever. After the government blocked the first attempt ...
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When the wolf's at your door
Edward Faberman, executive director of the newly formed Air Carrier Association of America, makes an unusual Red Riding Hood, but he is certain he is looking into the eyes of cleverly disguised wolves. Faberman uses chilling language to describe the actions of the US major carriers against their ...
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MAS bids to stop malaise
Amid criticism of high debt levels and excessive ambition, Malaysia Airlines has announced the biggest capital restructuring in its history, aimed at raising US$2.2 billion for new aircraft purchases and investment at Kuala Lumpur's new airport. MAS chairman Tan Sri Tajudin Ramli, says a one-for-one bonus share issue, ...
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Eagle eyes regional jets
The long-running dispute between American Airlines management and its pilots seems likely to be resolved this month, but at a high cost to the airline. In return for compromises on the issue of regional jets, the pilots have won a wage increase that is almost double that of the previous ...
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French force unions down
The French may still be demanding liberté but there's less égalité and fraternité as unions resist management attempts to force the lower working conditions of Air France and Air Liberté on to their members at Air France Europe and TAT respectively. Pilots and ground staff from Air France ...
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BA hires and fires equally
British Airways has agreed concessions with one main union but the others may not comply so easily as the carrier launches a recruitment drive to hire 1,300 pilots and 2,000 cabin crew. Ground staff of the transport workers' union, TGWU, voted in favour of a three-year proposal at ...
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Having fun in Brussels
As Sabena throws itself into revamping its shaky operations it had better remember to watch its back. Both Virgin Express and City Bird are attacking the flag carrier's Brussels base with gusto. The two airlines claim to be revolutionising the services on offer in Europe with a cheap, ...
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Crossair tries back door
Swiss regional carrier Crossair has taken a 35 per cent stake in a proposed French startup carrier, in an attempt to improve its access to the European Union market. Initially, Euro Continental Airways would operate two Crossair Saab 2000s from major French cities to the French sector of ...
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Delta deal fires debate
Delta Air Lines' decision to sign up with Boeing for 20 years prompted analysts to coo their approvals. But one former Capitol Hill veteran worries that this deal will only stoke the antitrust debate over the proposed Boeing- McDonnell Douglas merger. Mike Korens, managing director at consultants GKMG ...
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Digest
Delta Air Lines has extended its SkyMiles FFP to Air France and Korean Air, while British Airways and American Airlines have extended their FFP links. British Airways introduced two daily flights from Manchester to Warsaw and two weekly flights from London/Gatwick to Krakow. In return LOT Polish Airlines ...
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Slater slams Miami ruling
In his first major decision as US secretary of transportation, Rodney Slater has overturned a controversial ruling on the financing of a new terminal at Miami, which would have set a precedent on the raising and use of airport funds. Slater's action reverses a March decision by a ...
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Law of the jungle?
The airline industry has yet to see a predation suit settled in the plaintiff's favour. Yet the extent to which predation can be prevented could determine the overall success of deregulation in Europe. In this business it can be safely assumed that where there is a small new entrant ...
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No predators in Europe?
It's the classic chicken and egg situation. The European Commission says the lack of formal complaints proves that predatory pricing is not a burning issue in Europe. But carriers are discouraged by the length of the investigation and the high legal costs. Last year four allegations of predatory ...
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The new jet set
Long acknowledged as a quiet revolution, the issue of regional jet aircraft service was catapulted into the public domain when the potential American Airlines pilots strike became a staple feature of the evening news. Yet the operation of moderate-sized jets seating between 50 and 90 passengers, including the Canadair Regional ...
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A picture of health
The results of the 1996 survey of the world's 100 largest regional airlines suggest a continued improvement in the health of this sector, with passenger numbers and revenues both recording double-digit growth. This bodes well for a sector which had to contend with unprecedented criticism in 1996, particularly from the ...
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Can Sabena bite the bullet?
When the going gets tough, the tough get going, or so the saying goes. If the maxim runs true then Sabena will need to toughen up its act. The Belgian flag carrier may be regaining ground. Thanks to the quality Swissair management at its helm, it has identified ...