Strategy – Page 1130
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Northern Exposure
Alaska Air has slashed its unit costs, revamped its network and moved away from high service levels. Now the carrier must rebuild its balance sheet and rebuff the advances of competitors in an increasingly tough market. Mead Jennings reports from Seattle.John Kelly, president and chief executive officer of Alaska Air ...
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Airline news
British Airways and USAir have expanded their codeshare agreement to include 10 new US destinations. BA has signed a service partnership with Aeromexico. Canadian Airlines has added 17 new daily flights to its codeshare agreement with American Airlines. Services include Montreal, Toronto and Vancouver to Dallas-Ft Worth; Calgary ...
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Abacus lifts Thai stakes
In a further bid to break the monopoly of the Amadeus CRS in Thailand, Singapore-based Abacus is threatening to elevate its battle with the Thai government to a regional trade dispute. As a measure of intent, Abacus president William Liu has already threatened to wipe Thai Airways flights ...
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Asia majors to woo DHL
The Asia-Pacific's major airlines are trying to convince overnight express freight operator DHL Worldwide to modify plans to introduce 12 of its own Boeing 727 freighters into the region, apparently fearing the move will rob them of critical cargo income. Until now DHL has used only commercial uplift ...
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Garuda fears open house
Already hit by falling profitability Garuda Indonesia has been stunned by a government scheme to allow major rivals virtual open entry into its home market. The carrier has 'protested fiercely' at proposals by minister of transport Haryanto Dhanutirto to invite British Airways, KLM and Japan Airlines to apply ...
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Twin trouble for Cathay?
Cathay Pacific doesn't know whether to laugh or cry. On the one hand, it has avoided sharing its Hong Kong-Taiwan route with a Chinese-backed aspiring new entrant, China National Aviation Corporation, but it must still contend with two new entrants on the lucrative route. The thorny issue of ...
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Alitalia seeks foreign cash
Alitalia's management is forging ahead with its restructuring programme, as it prepares for the recapitalisation of the company in October. The carrier seeks an injection of up to L2,000 trillion ($1.3 billion), and its share price has been outperforming the Italian market average by 20 per cent as ...
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LOT to think about AMR
LOT Polish Airlines has a lot to think about. The most pressing issues are doubts over its cooperation with AMR Corp, its proposed codeshare with American Airlines and the refinancing of its recent fleet acquisition. AMR Corp's ground services management contract with LOT is up for a two ...
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Oz champers stays on ice
The champagne bubbles were just settling after the successful conclusion of the Qantas privatisation when a handful of brushfires began throwing out sparks, potentially damaging projections of profitability. First, freight handlers walked off the job over a range of issues, including manning levels at Sydney Airport. They were ...
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Air India has capital plans
In a bid to reverse its declining market share Air India is embarking on an ambitious fleet renewal and expansion plan which would double the number of aircraft to 54 by the year 2002. With the state coffers shut tight, the Indian flag carrier is planning a further expansion of ...
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Pacific links spur on talks
In an attempt to flout the stalled US-Japan aviation relationship, airlines from the two countries are forming partnerships that could make alliance-building the issue that forces bilateral liberalisation. It is Delta Air Lines' proposed codesharing alliance with All Nippon Airlines, announced at the start of August, that is ...
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Delta plans another rejig
Delta Air Lines is to restructure its network by leaving five international markets, diminishing its Dallas-Fort Worth hub further, building up the importance of Cincinnati, and transferring more routes to regional airlines. The realignment is part of a continuing effort to maximise the profitable elements of Delta's network ...
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EC to act on Nordic link
The European Commission has set out the conditions it will impose before approving the proposed alliance of Lufthansa and SAS, while Transwede and Finnair are putting on a brave face about the prospect of a northern European giant operating in their backyard. The Commission has notified Lufthansa and ...
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Meeting demands
Airbus Industrie rolls out the A319 to complete its present range of airliners. Julian Moxon/TOULOUSE IN JUST 25 years since its creation in December 1970, Airbus Industrie has fielded a range of airliners spanning 124-350 seats, knocked McDonnell Douglas (MDC) into third place in ...
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African aviation
The African aviation industry has been preaching about regional co-operation for years: it could soon happen. Kevin O'Toole/Johannesburg In the middle of August the African aviation community met in Johannesburg to discuss its future. There was nothing new about the issues. The industry, like much else within the ...
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DASA plans to fly Dornier 328 with hydrogen power in 1998
Andrzej Jeziorski/Munich DAIMLER-BENZ Aerospace (DASA) is planning to turn a Dornier 328 turboprop into a hydrogen-powered testbed, with a view to possible serial production. The test aircraft is scheduled to be flown in late 1998, and the flight could lead to production of an operational, hydrogen-powered ...
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Regional winner?
Embraer's first public flight of its EMB-145 was acclaimed by observers. Graham Warwick/SAO PAULO JUDGING BY the reactions of regional-airline executives attending the 18 August roll-out and first public flight of the EMB-145 regional-jet, Embraer has produced a potential winner - if the newly privatised Brazilian ...
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Virgin closes in on Europe
Virgin Atlantic Airways is poised for a major expansion into Europe. Plans for the establishment of a low-cost pan-European airline, possibly based at Brussels or Amsterdam, have advanced to the extent where a decision is expected to be made before the end of the year for a start in the ...
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Propeller failure blamed for fatal Brasilia crash
Graham Warwick/Atlanta Propeller-blade failure is the suspected cause of the 21 August crash of an Atlantic Southeast Airlines (ASA) Embraer EMB-120 Brasilia near Carrollton, Georgia, USA, which killed the captain and four passengers. Evidence of a blade-spar fatigue-fracture has been found. Blade failure has also been ...