Strategy – Page 1150
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Mexico feels the peso bite
The catastrophic devaluation of the peso against the US dollar at the end of December has made matters worse for the Mexican airline industry. The economically precarious Aeromexico-Mexicana consortium, now being run by its creditor banks, is especially at risk. The good news being trumpeted for Mexican carriers ...
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Air Macau chiefs resign after row
Paul Lewis/SINGAPORE START-UP CARRIER Air Macau has suffered a major setback with the resignation of its chief executive David Young and two other senior managers, following a row over control and direction of the company. Young has quit the joint venture Sino-Portuguese airline only four months ...
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United expands shuttle operations
SHUTTLE BY UNITED is to expand its frequencies in eight US West Coast city-pairs and connect San Francisco, California, with Phoenix, Arizona, beginning in early February. The short-haul discounted air service has expanded from its initial 184 daily departures when it started operations in October 1994, to 342 ...
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USA/Canada seek new trans-border deals agreement
Carriers seeking new US-Canada route authority include: Delta Air Lines, which seeks immediate authority to operate two new non-stop flights each between Atlanta and Toronto, Atlanta and Montreal, and Salt Lake City and Vancouver. Delta also wants to connect Cincinnati with Toronto, Montreal and Vancouver. It seeks ...
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Saginaw ghost
A mystery from the past may have relevance for the present. David Learmount/LONDON When Capt. Harvey "Hoot" Gibson's aircraft, a Trans World Airlines Boeing 727-100, suddenly rolled out of control and dived 32,000ft (10,000m), Gibson had to pull more than 5g before recovering control at ...
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Samsung purchase plan alarms KAL and Asiana
SOUTH KOREAN industrial conglomerate Samsung is seeking to purchase two long-range wide-body passenger aircraft, ostensibly for company use, but raising the fears of Korean Air (KAL) and Asiana that it intends to establish a rival third national carrier. Samsung is understood to be discussing the purchase of ...
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TWA clarifies its Airbus A330 order
TRANS WORLD AIRLINES (TWA) has clarified plans for its outstanding order for Rolls-Royce Trent-powered Airbus A330s, which it had previously indicated would be cancelled under its planned financial restructuring (Flight International, 18-24 January, P8). The airline says, that the agreement for ten firm and ten option A330s remains ...
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Bargain carriers establish hubs away from bases
US LOW-COST CARRIERS, Midway and ValuJet Airlines, are establishing new hubs. Chicago-based Midway has reached agreement with American Airlines to lease gates at Raleigh-Durham International Airport, North Carolina, while Atlanta-based ValuJet has begun operations from Washington Dulles International Airport. Midway plans to shift most of its operations from ...
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Pragmatic progress
To combat the global presence of British Airways, British Midland is forming its own worldwide network through alliances. Yet at the same time its sister regional airlines are being franchised to BA. In an interview with Sara Guild, British Midland's managing director Austin Reid explains the group's strategy over alliances ...
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94 at a glance
What will 1994 be remembered for? Many carriers saw a return to profit. Some received major state aid approvals. It was the year when competition from an ever-growing Southwest, plus low-cost entrants led by ValuJet, finally shook the US majors into action. The employees took control of United, and the ...
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Pricing it right
As O&D yield management techniques take systems to unprecedented levels of capability, the real challenge for airlines will be their proper integration and use. Jackie Gallacher reports. Like many technologies, yield management has taken time to evolve from the early systems of the 1980s to reach its current level ...
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Longhaul freedom
Christopher Chataway, chairman of the UK Civil Aviation Authority, examines the obstacles to competition on longhaul routes and suggests how to overcome them. Drawing from a recent CAA report, he highlights bilaterals, EU bloc negotiations, problems faced by smaller airlines, corporate discounts, fare levels, and airline collusion. Longhaul aviation ...
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Bid for freedom
Increased private ownership could help Pakistan International Airlines deal with the challenges imposed by new home-grown competition and loosen restrictions imposed by the country's social objectives. Mark Blacklock reports.Pakistan has been plagued in the past by political patronage, with even middle managers in the public sector fearing for their jobs ...
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Making the right moves
Understanding how to adapt their strategies to a rapidly changing 'newgame' environment may be one of the most important lessons for airline managers in the 1990s. Dr John Steffens proposes a suitable framework. It should be a basic premise in any industry that new games require new rules. And the ...
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Airline news
American Airlines will start a daily nonstop service from Chicago to Birmingham, UK at the end of May. Elsewhere the carrier was set to begin daily services from Los Angeles to San Jose, Costa Rica at the end of January. United Airlines launched four weekly services from Miami ...
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North-South divide
Southern European carriers will struggle as recovery continues in the north. The efforts of the southern European majors in bridging the divide with their resurgent northern counterparts will dominate the aviation calender in the year to come. Any restructuring will be heavily influenced by the attitude of a new-look ...
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Altered images
What is happening with the Southwest wannabees? Both Continental Lite and ValuJet shadow Southwest's style, but neither is a true mirror image. Mead Jennings reports on the differences that have spelled one's success and the other's failure. Two airlines, one concept. Launched at a brief interval from one another, ...
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Playing catch-up
Look for some progress in Africa and more competition in the Middle East. After years in the doldrums, African aviation looks set for an upturn in fortunes in 1995. Political instability and financial hardship will ensure the negatives still outweigh the positives, but any form of progress will provide the ...
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Sabre points way ahead
We at Sabre Decision Technologies (SDT) certainly appreciate the point that the Making the Sale article (Airline Business, October 1994) makes: that anyone not already in the business of selling services to the aviation market will 'find it very hard - perhaps impossible - to break in' and compete against ...