Strategy – Page 1123
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Air Greece almost breaks even after first year of operation
AIR GREECE, one of the new batch of privately owned Greek start-up carriers, says that it came close to break-even over its first year of operations to September 1995. The airline had sales of GDr2.1 billion ($9 million) over the year, carrying nearly 121,000 passengers on its scheduled ...
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Brunei plans to expand
THE BRUNEI Department of Civil Aviation (DCA) is drawing up a three-phase expansion plan to develop the country's airport into a regional hub. Brunei wants to develop the airport following the formation of the East ASEAN Growth Area (EAGA), formed between Indonesia, Malaysia and the Philippines. Under the ...
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Road to Damascus
Lord Hesketh, the charismatic chairman of British Mediterranean Airways, celebrates the airline's first anniversary in style. Guynter Endres/BEIRUT and DAMASCUS BRITISH MEDITERRANEAN Airways' charismatic chairman Lord Alexander Hesketh might not be the archetypal airline boss, but he has achieved success in one of the ...
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Northwest action to block hostile bids angers KLM
Kevin O'Toole/LONDON SPECULATION OVER an impending shake-out in the US airline industry has sharpened with attempts by Northwest Airlines to put a cap on the amount any one shareholder can own in the carrier. The move has already run into controversy, with Northwest's partner KLM preparing ...
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Lufthansa to establish Munich hub
Andrzej Jeziorski/MUNICH LUFTHANSA IS planning to introduce intercontinental flights and broaden its European services from Munich, Germany's third-largest airport. The move will effectively turn the Bavarian capital into the airline's second hub after Frankfurt, says Lufthansa. The carrier cites Munich Airport's modern infrastructure, positive development forecasts ...
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Aircraft news
EVA Air, Taiwan's major independent airline, has signed a letter of intent to buy six new MD-90s, with an option for a further six. Tyrolean Airways of Austria has ordered four Canadair Regional Jets with an option on four more. British Airways Express operator CityFlyer Express ...
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Appointments
Mauricio Botelho has been appointed president and chief executive officer of Embraer. At KLM Cargo, Jan Meurer has been appointed vice president, operations, Enno Osinga is named vice president customer service, and Michael Kimman becomes business systems manager. Sjaak Hofstra becomes operations and marketing director, cargo service centre ...
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Agent blues
The traditional role of the travel agent in distributing airline products is being challenged by CRS pricing polices, ticketless travel, the Internet and commission capping by airlines. Does this mean the end of the travel agent as we know it? Chris Lyle discusses the implications.In theory, travel agents should be ...
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Growing up
The flag carriers of the scattered Pacific islands are maturing and learning how to cooperate both with one another and major airlines. However, geography and colonial legacies remain the biggest obstacles to their future development. David Knibb reports. Isolation makes the scattered Pacific islands different from all other developing countries. ...
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EVA enjoys the fruits of youth
If spectacular improvements in efficiency and productivity are a measure of success, then on the surface at least Taiwan's international newcomer EVA Airways appears to be setting new standards. Productivity, measured in terms of revenue per employee, soared 62 per cent last year. Unit costs plunged 21 per cent and ...
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Profit share: a stroke of genius
Singapore Airlines' chairman J Y Pillay has absolutely no doubt that in an unforgiving airline industry, survival rests on the continuing struggle to improve productivity and keep ahead of costs. And there can be little doubt that Pillay's message is getting through at an airline which consistently turns in some ...
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Growth spurs on drive for cuts
Air Canada, in the midst of a significant growth phase, is attempting to counteract the costs of expansion with employee productivity gains and new technology. Air Canada expects to double its transborder service to the US within the next three years and in recent months has added new flights ...
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Get smart inside the system!
For Northwest Airlines, record profits this year have been less a result of recent, company-wide efficiency programmes than of a series of initiatives - including route restructuring, employee concessions and alliance-building - stretching back several years. Nonetheless, 'smarter' flying and pricing have produced lower costs and higher yields for the ...
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China cuts its numbers
Beijing has formally declared its intent to consolidate China's airlines after two years moving in that direction. The number is set to shrink by 40 per cent, but more carriers are likely to receive international designation as well. Li Zhao, deputy director of the Civil Aviation Administrat- ion ...
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Cape crusaders
Helped by the traffic boom, South Africa's domestic carriers are expanding into regional markets. By Sara Guild.Like most South African businesses in the post-apartheid, post-general election period, the domestic airlines are looking for opportunities - outside South Africa. Although international foreign tourist arrivals to South Africa should rise 30 per ...
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More than a fleeting gain?
At Malev Hungarian Airlines, a major improvement in efficiency is one of the main outcomes of a modernisation programme that started back in 1991 but only really started to take root last year. Indeed, commercial director Ferenc Turi says the restructuring has really only just begun in earnest. 'We are ...
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Moving targets
Singapore Airlines' chairman J Y Pillay calls it 'The genius of the organisation at work.' Productivity has become a mantra in an airline industry which is desperate to find ways of improving its long term financial performance. All airline managers are putting in a great deal of effort to improve ...
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PAL struggle: end in sight?
The seven-month standoff over control of Philippine Airlines between chairman Lucio Tan and the government is still delicately poised, but a compromise may yet settle the dispute. The future of the struggling Philippine flag carrier has been in limbo since March, when the government shareholders invoked a 1992 ...
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The CAA is targeting New Zealand's poor general-aviation safety record
Aviation morale in New Zealand is sky high, with Air New Zealand among the beneficiaries of economic reform Paul Phelan/Auckland To the casual observer, New Zealand may appear to be the poor relation of its neighbour, Australia. Nothing could be further from the truth, particularly in ...
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Aloha
Hawaiian airline Aloha has promoted James King, who was formerly, staff vice-president, to vice-president of planning and development. Terry Smith moves from staff vice-president of quality assurance and engineering, to vice-president of maintenance and engineering. Stephanie Ackerman, formerly director of corporate communications, becomes staff vice-president for corporate communications. ...