Strategy – Page 1144
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The big float
There are doubts over whether the jewel of the Chinese state-owned airlines, Air China, will be allowed to follow flotations at China Southern and China Eastern in two years' time. David Knibb reports. Whether Air China will sell and list shares overseas after China Southern and China Eastern depends ...
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On the attack
Mid-sized airlines face crucial decisions as they focus on which strategies and management tactics to adopt. Sara Guild reports from an Airline Business conference on the future of medium-sized carriers. The greatest profit potential for medium sized carriers lies in a direct attack on the strategic weaknesses of ...
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Top earners must deliver
As an avid reader of your intelligent, well reported magazine I was surprised with part of the February editorial, Crisis over - but don't let up. There is no doubt that the airline industry must change, and that companies must be more innovative and responsive in future. My main concern ...
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China order thaw on way
Pressure is mounting for Beijing to relax its freeze on new aircraft orders. It looks as if the Civil Aviation Administration of China will permit two, and perhaps all three big carriers, to place firm orders. Senior Air China officials recently visited Toulouse and Seattle in anticipation that ...
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New accord seals open skies deal
The well known disunity of the US airlines, and their equally known derision of the Department of Transportation in Washington, were set aside recently as they voiced approval of DOT's successful renegotiation of the US-Canada bilateral. One by one, airline CEOs were quoted in press releases praising transportation secretary Federico ...
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Give Commission a clear mandate
Divisions in Europe on US bilaterals and state aid threaten the internal market Less than two months after moving to Brussels to take up his position as the new European transport commissioner, Neil Kinnock finds himself surrounded by controversy. In his early dealings he has adopted a spirited approach, ...
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AMR cuts go to the core
Restructuring of the executive ranks at AMR Corp is widely considered cosmetic for the short term, with an eye towards labour negotiations. However, the restructuring is also focusing on preparing for longer term goals such as forming partnerships and joint ventures, especially in information technology. Robert Crandall turned ...
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Pulling back from USAir
USAir's mired labour negotiations and six year streak of losses have finally convinced fabled investor Warren Buffett that the airline has been a bad investment. However, the decision by his investers Berkshire Hathaway Inc to write off $268.5 million of the carrier's stock - 75 per cent of its holding ...
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Sabena aided in opt-out?
The momentum built up around Swissair's plans to take a 49 per cent stake in Sabena after the Belgian government granted an exemption on part of its flag carrier's social cost obligations, could yet falter as the opt-out comes under the scrutiny of the European Commission. Sabena stands ...
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Oxford Cartographers develops new route-mapping concept
OXFORD Cartographers has developed a new concept in map imagery, which offers airlines a three-dimensional alternative to conventional "flat and featureless" route maps and inflight route-tracking displays. The UK mapmaker has based its "space" view of the Earth, on the photographic reproduction, of a specially modeled globe. ...
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CAE cautiously optimistic for 1995 sales
CAE ELECTRONICS expects commercial flight-simulator sales to increase slightly in 1995, but the Canadian simulator manufacturer admits that it will be a challenge to maintain the 75% market share it achieved in 1994. Vice-president for sales and marketing, Andy Morris, says that CAE won 12 of the 16 ...
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Air Inter strikes threaten Blanc restructuring plan
CONTINUING STRIKES at French domestic carrier Air Inter are threatening the restructuring plan for the entire Air France Group. The trouble centres on the loss of up to 660 jobs, as part of the restructuring plan under which in 1997 will be merged Air Inter's European operations, with ...
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Asia-Pacific firms cautioned on markets
AIRBUS HAS WARNED that emerging Asia-Pacific aerospace industries may be attacking the wrong market with their emphasis on regional jets. The warning is based on the latest Airbus long-range forecast, which shows that airlines in Asia-Pacific will account for only 10% of airliner deliveries in the 100-seat class. ...
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KLM to boost airline holdings other carriers
DUTCH FLAG CARRIER KLM is to increase its holdings in Martinair Holland and Air UK. KLM will take its holding in Martinair from 33.82% to 50% at the same time as the other major shareholder, Nedlloyd, increases its stake from 49.19% to a full 50%. The ...
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Bilateral Impasse
As US air-services negotiators, return from an apparently promising meeting with their British counterparts, and the European Commission (EC) suddenly discovers that it doesn't like what the US negotiators have agreed with the rest of Europe, a new question arises. Who really talks for Europe, and who really talks for ...
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Independence for Lufthansa school
LUFTHANSA'S AIRLINE pilots' school is to be renamed the Lufthansa Flight Training and run as an independent company. The move is the last major restructuring project in the Lufthansa Group. Lufthansa Technik, Lufthansa Cargo and Lufthansa Systems have all been turned into independent companies. ...
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Air La Expands
Air LA says that it is close to finalising a $6 million deal to acquire Conquest Airlines, a Texas-based carrier with a fleet of Fairchild Metro-liners. The deal comes only weeks after Air LA acquired Capitol Airlines based in St Paul, Minnesota. When both acquisitions are complete Air LA will ...
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Pacific bus stops
Hawaiian operators plan to tap a predicted growth in South Seas tourism. Guy Norris/HONOLULU Hawaiian guitar music wafts across the palm-fringed beach near Waikiki on a balmy afternoon. High overhead, locally based airliners look like partners in paradise as they shuttle to neighbouring islands. ...
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Cathay issues cost warning despite rise profit rise
Paul Lewis/SINGAPORE CATHAY PACIFIC Airways has issued further warnings over falling yields and rising costs, despite reporting a 4% increase in net profits for 1994. Profits ended the year broadly in line with analyst expectations at HK$2.4 billion ($310 million), but Cathay chairman Peter Sutch ...
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Keeping in touch
Air-to-ground telephones for airline passengers are becoming more commonplace. Graham Warwick/ATLANTA Passengers on certain British Airways flights are the first in the UK to enjoy something US air travelers have come to expect - air-to-ground telephones on aircraft. BA is the first airline to put ...