Strategy – Page 1141
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Political row grows over Tata-SIA joint venture
The Indian Parliamentary committee on civil aviation has come out strongly against the entry of foreign airlines into the domestic sector. The committee is headed by Pramod Mahajan, the general secretary of India's main opposition party, the Bharatiya Janata. It fears that Indian Airlines, the state-owned domestic carrier, ...
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Shannon rescue faces EC query
UK aircraft-maintenance interests are to complain to the European Commission about the Irish Government's plan to bail out troubled Shannon Aerospace (SAL). SAL airline shareholders Swissair and Lufthansa concede that the overhaul concern faces collapse without the proposed injection of Ir£12 million (£11.9 million). They blame ruinous pricing ...
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FLS sets up office in Texas
FLS AEROSPACE HAs taken the first step towards possible acquisition of a US maintenance operation, with the setting up of an office in Fort Worth,Texas. Chairman Steffen Harpoth says that one of the objectives of the new office is to "...see if we can establish the foundation ...
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Appointments
Organisational restructuring at United has seen president John Edwardson assume the role of chief operating officer. David Coltman, formerly vice president Atlantic division, becomes SVP marketing. James E Goodwin has become SVP North America and is replaced by Christopher Bowers as SVP international. Andrew P Studdert joins as ...
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Networkers of the future
As deregulation bites, Europe's airlines will have to chose between being network managers or capacity or service providers, says an analysis by consultants McKinsey & Company. Europe's airline industry has traditionally been characterised by monolithic national carriers with strong links to their national governments, a lack of competition on routes, ...
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Tough finding the right niches
There are encouraging signs of start-ups and expansion in Europe though financial returns and yields are low. Europe's regional airlines are emerging from the recessionary gloom comparatively unscathed. The last three and a half years have seen their share of closures, but on balance the sector is growing. ...
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Fast growth, structural change
The increasingly high cost of expansion in Asia-Pacific is encouraging new solutions such as regional groupings.Like their big-jet brothers, Asia-Pacific's regional airlines are undergoing their most significant period of expansion ever. Buoyed by increasing deregulation, higher incomes swelling passenger numbers, and growing intra-regional trade, new carriers are emerging at a ...
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French malaise
Air France is moving in the right direction to achieve profitability but some serious contradictions risk undermining its credibility. Jacqueline Gallacher reports from Paris.Air France Group is on the defensive these days, but after receiving a highly controversial FFr20 billion ($4 billion) in state aid, who wouldn't be? With appeals ...
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Orly's army
France's independent sector is continuing its crusade against slot restrictions designed to protect Air France at Paris/Orly, while incumbent Air Inter struggles to limit the damage. Jacqueline Gallacher reports from Paris.Imagine. After years of battles and restrictions on private sector scheduled operations and a ruling by the European Commission, the ...
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Age old decision
New aircraft or old? Airline executives are weighing up the options to make the right fleet decisions to last the next decade. Sara Guild contrasts the narrowbody decisions made by Air Canada, Finnair and Northwest.For an aircraft, getting old and creaky used to mean that your owner was about ...
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Transfers hold key to growth
North American regionals and majors will become even more tightly linked as future commuter operations grow.The increasing trend whereby major airlines transfer short-haul jet routes to regional carriers is expected to encourage the growth of regional airlines in the US and Canada. Already, 95 per cent of regional airline passengers ...
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Heated competition
Privatisation seems to have finally taken hold among airlines in the Caribbean. The resulting US-style management and new competition could spell permanent change for the region. By Mead Jennings.During last February's inaugural celebration for Barbados-based Carib Express, a 90 per cent privately owned regional airline, those in attendance heard the ...
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Psyched up
Austrian Airlines is bouncing back after three years without profit. Carrier president Herbert Bammer says alliances and open skies with the US could lead to a turnaround. Mead Jennings reports. A small airline from a small country: Austrian Airlines has two of the essential ingredients for an inferiority complex, ...
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FedEx faces China crisis
FedEx may have thought it was simply buying Evergreen International's all-cargo route authority to China. In fact, it bought a ringside seat to an aviation row between Beijing and Washington, which had, at presstime, left the carrier unable to operate any China services. Evergreen was the only US ...
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Cathay no to stake threat
Faced with the challenge of surviving Hong Kong's sovereignty transfer, UK-controlled Swire Pacific has again had to declare its long-term commitment to Cathay Pacific and post-1997 Hong Kong. In the past, sceptics predicted Swire would bail out as the Union Jack came down, but the response became mantra-like ...
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Facing up to new frontiers
As described in Pricing it Right in the February issue of Airline Business, O&D yield management is the current frontier in airline marketing planning. In addition to the direct revenue benefits to be gained by controlling the mix of passenger itineraries flowing over an airline's route network, the ...
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Air China will go to market
Despite speculation to the contrary, Air China president Yin Wenlong insists the carrier will list on the New York stock exchange and is already being urged to do so by several major international financial institutions. He also says a Hong Kong-based finance house - Yin refuses to identify ...
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Meeting market needs is essential
Airlines are turning their organisations upside down - creating new problemsIn examining the airline business, many company strategists are working overtime these days. Following the disastrous start to the 1990s, most airlines are going through the most intensive period of soul-searching ever. They are asking questions like: What is our ...
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Coveting the other's home
British Airways and Lufthansa are increasing penetration of each other's home markets through airlines they have minority stakes in - the UK major with Deutsche BA and its German rival through Business Air. But the strategies are markedly different. At Deutsche BA, BA managing director Robert Ayling is ...
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Oz in battle on HK
Australian air service negotiators are under mounting pressure as they grapple with a potential crisis in bilateral relations with Hong Kong and the prospect of a major equity link between Ansett and Air New Zealand, which could put the status of a range of bilateral agreements in doubt. ...