Strategy – Page 1079
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News
Aircraft news
Boeing has signed a deal with American Airlines, granting the US manufacturer sole supplier status for jet aircraft until 2018. As part of the deal American has placed firm orders for 12 B777s, four B767-300ERs, 12 B757-200s, and 75 B737-600/700/800s. The US carrier has also taken so-called purchase rights on ...
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Appointments
Philip Chen will succeed Simon Heale as deputy managing director at Cathay Pacific Airways from mid-March. Heale takes up the position of finance director at Swire Pacific. Stanley Hui will replace Chen as Dragonair's chief executive from 1 February 1997, while Hui's role as chief operating officer of Air Hong ...
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Winter warmer
The Canadian government has taken the unprecedented step of intervening in the standoff between Canadian Airlines and its six unions, which had rejected the restructuring package. Ottawa ruled the employees should vote on the deal at presstime and bypass the unions. The revised deal, which was expected to be passed, ...
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USAir wears Wolf clothing
In a move described as 'vintage Wolf', USAir will this year become US Airways, accompanied by a complete facelift. But below the cosmetic makeover, there are signs that the carrier's chairman is finally healing the longstanding rifts with labour. USAir chairman and CEO Stephen Wolf, who has master-minded ...
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Struggle from the rubble
Kuwait Airways is banking on a successful programme of alliances and regional cooperation to reverse recent heavy losses. Doug Cameron reports from Kuwait City. Almost seven years after its liberation, Kuwait City retains an almost haunted look despite its renovation and its return as one of the major commercial centres ...
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Twin sales with a twist
The sale of significant minority state holdings in two of Europe's leading carriers has caused consternation in financial markets, albeit for different reasons. At presstime, the German government was hoping to sell off its remaining 35.7 per cent stake in Lufthansa before the end of the year, while ...
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Toughing out the boom
In 1997, can the major airlines improve on their performance in the boom year of 1996? Airline Business previews the main issues which will dominate airline executives' thinking in 1997. These are the good times, but life for the average airline manager does not appear to be getting any easier. ...
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Asia rife with labour strife
Industrial unrest is spreading across Asia-Pacific as the region's carriers react to a worrying economic slowdown and stiff competition, compounded by the global hike in fuel costs. At presstime, All Nippon Airways was at loggerheads with its cabin crew unions after wage negotiations broke down: a 24-hour strike ...
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Harry heads to Air Afrique
Let's hope Sir Harry Tirvengadum is ready for a challenging 1997. The charismatic chairman of Air Mauritius faces a tough transition when he moves over to head up struggling Air Afrique on 1 January 1997. The west African carrier continues to suffer government interference and union pressures which ...
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Alitalia pays a small price
Alitalia has been fined by the Italian antitrust authorities for bullying tactics against domestic competitors, and as it succeeds in removing one through a codeshare deal with startup Alpi Eagles, another potential threat appears in the form of Azzurra Air. The authorities found that Alitalia had 'impeded, blocked ...
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The battle for AOM begins
Barely having caught their breath after the furious scramble to take over insolvent Air Liberté, potential bidders are now lining up in the race for struggling French rival, AOM. And potential political problems are already brewing. British Airways' recent acquisition of a 67 per cent holding in Air ...
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United allies down under
The fierce fight for market share on routes in and out of Australasia is set to hot up even further following Air New Zealand's alliance with United Airlines and a new capacity-boosting bilateral between Australia and the UK. The fledgling partnership of Air New Zealand and Australia's Ansett ...
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China puts on the squeeze
China is having mixed success in its aviation policy. Despite easing the moratorium on aircraft orders, Beijing is now having to curb international capacity growth for fear of Chinese carriers losing out to their foreign counterparts. But the authorities are having more success in their drive for domestic consolidation. ...
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Coded for no competition
A study on codesharing for the European Commission recommends ending the practice on nonstop routes and reducing the number of CRS listings for codeshare flights to one. These are two of the main findings of a study by Amsterdam-based consultants Strategem. Their report finds that codesharing by two ...
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Global traders will win economic war
In the final years of this century, the new global 'geo-economics' has become the driving force of international relations and commerce. Autocratic regimes and domestically focused businesses are more likely to fail, or grow less slowly, than those which recognise the reality of the globalised economy. The days ...
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Wheeling out the service
For major airlines seeking high-margin travellers, customer service will be a key to profitability. Still, Philip Festa says pressures within the industry are threatening to squeeze carriers' service levels. Customer service is now the norm throughout almost all sectors of commerce: supermarkets, hotels, banks and fast food chains vie ...
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Is candid Crandall correct about IT?
When Robert Crandall, AMR Corp chairman, noted at the last Iata annual general meeting that 'there is no reason to believe that technology will make airlines more profitable,' there had to have been a few sets of raised eyebrows in the audience. Crandall, after all, is the one credited for ...
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Airline news
Austrian Airlines and Swissair have confirmed taking a 18.37 per cent stake in Ukraine International Airlines through a holding company in which Austrian Airlines holds 77.78 per cent and Swissair 22.22 per cent. KLMwill inaugurate twice weekly services to Abidjan and to Nagoya via Sapporo from April 1997 ...
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Delta dances Continental
The only certainty about suggestions of a merger between Delta Air Lines and Continental Airlines is that it would create the world's largest airline. Beyond that analysts remain split as to whether such a deal would make strategic sense. The only clear winner is David Bonderman, who leads Continental's controlling ...
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Bespoke fortunes
Effective, efficient hubs are vital to most US majors' profitability. But do they operate in everybody's best interests and is stronger regulation needed? Karen Walker reports. You either love hubs or hate them. A government department has accused the US majors of continuing to use their hubs to raise fares ...