Strategy – Page 1117
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ValuJet offloads reservations
VALUJET AIRLINES has turned its reservations system over to outside contractors in a bid to retain its competitive edge and preserve "a low-cost, low-fare niche in the industry". Some 1,000 employees - about one-third of the airline's workforce - are to be offered jobs with the outside contractors, Amlease and ...
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DASA stands by ailing Fokker
Andrzej Jeziorski/MUNICH DAIMLER-BENZ Aerospace (DASA) has confirmed it will continue to fund Fokker into the new year, in a move to counter growing fears that the manufacturer would be left to fend for itself unless a funding agreement was agreed with the Dutch Government before the year-end. ...
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Avianova flies Fokker 70
ALITALIA subsidiary Avianova put the first of its new Fokker 70 regional jets into service on 20 December, between Turin and Paris. The Rome-based airline has now taken delivery of the first three of its 15 ordered aircraft, with seven more to come in the third quarter, and the remaining ...
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Airlines
Kevin O'Toole/Business Editor THE WORLD AIRLINE INDUSTRY finally shook off the recession in 1995, to produce what are likely to be the highest profits on record. Barring unforeseen disasters, the industry should continue to forge ahead in 1996. The figures have yet to be collated for ...
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Las Vegas lasers shut down
Alan Staats/PHOENIX Hotel and casino operators in Las Vegas have been ordered to suspend their laser displays following an incident involving a Southwest Airlines Boeing 737 first officer being temporarily blinded by a burst of laser light. The event occurred even though the hotel involved ...
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Condor adds more travel agencies
CONDOR FLUGDIENST, Lufthansa's charter subsidiary, is to add to its growing portfolio of interests in tour operators, with a decision to take stakes in two more travel agencies. Condor will acquire all of Dusseldorf-based Fischer Reisen in 1996, and is taking a 10% stake in Hamburg-based Oger Tours, ...
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Aircraft news
SAS is to buy six more B737-600s worth an estimated $210 million, adding to its existing order for 35. South African Airways is to acquire seven B777-200s and two B747-400s. Amsterdam-based carrier Transavia has ordered eight B737-800s, with options on an additional 12. Gulf ...
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Appointments
Henrik Arle, EVP staff/finance, is taking on the responsibilities of general international relations, following the retirement of Oiva Rejasammal. The marketing aspects become the responsibility of EVP marketing Leif Lundstrom. Air New Zealand has appointed Annabel Cotton manager investor relations, and John H Blair company secretary and corporate ...
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Politics top bill at Aria
Planning decisions critical to the development of Aeroflot Russian International Airlines (Aria) are on hold following a Kremlin-instigated clearout of the carrier's boardroom which has placed the flag more firmly under political control. Only one member of the previous board of directors, chairman Gennady N Zaitsev, has survived ...
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Japan cuts to bite back?
Japan is taking a first step towards liberalising the domestic market by introducing flexibility in local fares. But the move could backfire and lead to near-monopolies on individual routes. Japan's Ministry of Transport plans to set benchmark fares for each domestic route based on cost and then allow ...
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Valu lost on key NY slots
ValuJet is pressing its antitrust case against Delta Air Lines despite failing to stop its rival from buying 10 coveted slots at New York/LaGuardia pending the outcome of its lawsuit. Atlanta-based ValuJet claims it was the sole bidder for the slots when TWA initially offered them and that ...
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Deja vu in Washington
In Washington, events don't happen; they always happen again. It's not necessarily a positive attribute. Witness the Charles Hunnicutt affair. This unsuspecting trade lawyer, without significant experience in the field of international commercial aviation diplomacy, was recently nominated to become the US Department of Transportation assistant secretary for ...
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Peace spurs twin launch
Royal Jordanian and El Al are both taking advantage of the continued stability in the Middle East to launch regional subsidiaries prompted by imminent signing of an Israel-Jordan bilateral, due by the end of December. Royal Jordanian will rename its executive jet subsidiary, currently known as Arab Wings, ...
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Germans hit Milan plans
Lufthansa has revealed the sway it has over its partners with the closure of Lauda Air's Milan hub in mid-November after consultation with the German major. The hub was opened in April in a bid to get a head start on rivals in anticipation of a government plan ...
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Euro unions strike out
The signs in Europe for labour relations are ominous - and it's not just carriers with the more 'radical' unions facing a difficult start to the year. Strike action at Sabena started at the end of Nov-ember with one-day strikes after management cancelled all labour contracts. ...
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Mexico goes into a shell
Aeromexico and Mexicana should come under the oversight of a holding company by the end of the month. The search for potential buyers for the single entity could begin once the slow process of putting the two carriers' finances in order is complete. The holding company, called the ...
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US faces labour strife
The state of US aviation labour relations does not bode well for the new year, with union negotiations due at Northwest Airlines, USAir and United Airlines, among others. By early December, the 32,500 members of the International Association of Machinists and Aerospace Workers at Boeing had been on ...
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USAir looks to life alone
After its brief fling with United Airlines, USAir is settling down, if only momentarily, to its old position: alone with its high costs amidst a bevy of low-cost players. The only new wrinkle is that the airline may soon face even tougher competition, if Delta Air Lines succeeds in creating ...
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Brussels fails to use its muscles
The new European Commission has held office for a year but has little to show for its efforts, despite the initial hype. Mark Odell looks at Brussels' performance in regulating a market where competition is on the increase.When Neil Kinnock took over as the new European transport commissioner in January ...
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Smooth operators
The third package not only improved market access, it gave European Economic Area carriers the ability to choose the most favourable environment for their operations. Dermot Scully reports on the advantages of using more than one licence.European airlines are beginning to recognise the full extent of the potential benefits ...