Strategy – Page 981
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News
Scope for change
Pressure is mounting for the reform of regional airline pilot scope clauses Paul Lewis/WASHINGTON DC The simmering debate over regional airline pilot scope clauses is slowly coming to the boil. With most labour agreements due for renewal from next year, pressure is building from a range of sectors - airlines, ...
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Lufthansa signals end to Asian malaise
Andrew Doyle/FRANKFURT Lufthansa has revealed that Asian passenger traffic is expected to recover fully by the end of this year, but warns that over-capacity on transatlantic routes is still hurting yields. Despite unveiling record DM2.5 billion ($1.26 billion) pre-tax profits for last year - up 42% on 1997 ...
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Mergers
At least four of the 11 airlines that control a 64.9% stake in computer reservations systems provider Galileo International have announced plans to sell all or part of their holdings through a secondary public offering. United Airlines, KLM, US Airways and TAP Air Portugal are to dispose of stock, although ...
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Head start
Lufthansa CityLine's decision to sign on the dotted line for $1.6 billion-worth of Fairchild Aerospace 728JET regional airliners undoubtedly represents a major achievement for a (relatively) small US-German aircraft manufacturer with big ambitions. But it does far less to answer the question of how this overcrowded sector of the market ...
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United joins PETAL II datalink trials
Emma Kelly/LONDON United Airlines has committed its Boeing 777s (above) to Europe's Preliminary Eurocontrol Test of Air/Ground Data Link (PETAL II) programme. PETAL II is Europe's groundbreaking datalink programme aimed at validating air-ground datalinks in an operational air traffic control environment. The three-phase programme involves air traffic controllers and aircraft ...
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Routes
LanChile is to offer three nonstop flights a week between Los Angeles, California, and its base at Santiago, Chile, from 3 July, in addition to the daily Los Angeles service via Lima, Peru. It is also adding direct services to Buenos Aires, Argentina, with connections to Cordoba and Mendoza. Swedish ...
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Franchise relationships boost expansion of regional market
Chris Jasper/LONDON The rapid expansion of the regional market in North America and Europe continued unabated last year, fuelled by US majors focusing on the consolidation of regional franchise relationships, and franchise expansion by their European counterparts. The US Regional Airlines Association (RAA) reports that passenger traffic increased ...
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Aer Lingus favours American/BA strategic alliance
Ireland's Aer Lingus has selected oneworld carriers American Airlines and British Airways as its preferred partners in a strategic alliance, ahead of a rival bid by Delta Air Lines. The Irish Government must now approve the state-owned airline's choice of allies, with sources suggesting that full membership of the ...
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Workshop
TAT Group subsidiary LAB and French carrier Regional Airlines are to set up a jointly owned maintenance centre for regional aircraft based at Clermont-Ferrand Airport and line maintenance at 13 other airports. Initially, the centre will undertake maintenance of the Regional Airlines fleet. The fleet comprises British Aerospace, Embraer and ...
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but UAL doubts US-UK open skies
United Airlines is losing faith that a UK-US open skies deal will ever materialise despite industry hopes that progress is at last being made. Despairing of the lack of progress towards a new UK-US air transport pact, Michael Whitaker, United's vice-president international and regulatory affairs, claims that "there ...
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Routes
Delta in China - Delta Air Lines and China Southern Airlines have begun a non-stop codeshare service between Los Angeles and Guangzhou. China Southern operates the route three times a week with a Boeing 777. Guatemala bound - Continental Airlines will begin a non-stop Saturday service between New York ...
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TAAN joins Venezuelan start-up
Despite warnings from industry observers that Venezuela's future calls for fewer rather than more airlines, new carriers continue to line up to fill the hole left by the demise of flag carrier Viasa. TAAN (Transporte Aereo Andino) is the latest planned start-up, and one of three carriers seeking operating certificates ...
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Spirit soars in USA
A US start-up which has so far secured its mostly profitable existence by controlling growth and sticking to niche leisure markets up and down the east coast is to test new waters. Detroit, Michigan-based Spirit Airlines will begin a non-stop service to Los Angeles in June and is expanding operations ...
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Legend in the making
Since declaring plans to launch an all first-class airline out of Dallas, Texas, management at Legend have fought an uphill battle to get off the ground. It could turn into the stuff of which legends are made - a US startup, with a flamboyant and outspoken chief executive, exploiting ...
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Two bid for Ansett half stake
Singapore Airlines (SIA) and Air New Zealand (ANZ) each want the half interest in Ansett Holdings that News Corporation is selling for A$500 million ($315 million). ANZ owns half of Ansett Holdings, which in turn owns 49% of Ansett International Airlines and 100% of Ansett Australian Airlines. When ...
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JAL turns the corner but ANA struggles
Recovery has started sooner for Japan Airlines (JAL) than for All Nippon Airways (ANA). JAL has returned to profit, but both carriers face the twin threats of recession and domestic competition. Figures for the financial year ending 31 March will not be available until May, but the ...
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Pilot strife hits Asia
Cathay Pacific Airways and Royal Nepal Airlines have lengthened the list of Asian carriers suffering from discontented pilots. Troubled Royal Nepal suffered a serious problem in March when its pilots went on strike, grounding the carrier for 10 days. The dispute stemmed from the Kathmandu-based airline's controversial ...
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PAL suffers new rejection
The Philippine Airlines (PAL) soap opera continued in March and April, with a new episode nearly every day in the carrier's fight for survival. As of mid-April, Manila's Securities and Exchange Commission (SEC) had rejected a second rehabilitation plan filed by the airline in March, on the grounds ...
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Rights and wrongs
Passenger rights bills are currently winding their way through US Congress. Are passengers set for a better deal? Twenty one years after the US Government gave the airlines free rein to run their businesses as they saw fit, Congressional fingers are beginning to itch. A glance at the various ...
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No flag in its future
Venezuela has been without a flag-carrier since Viasa's demise. With no heir apparent, David Knibb assesses where the country heads from here A single day in March said much about the transition under way in Venezuela's airline industry. Workmen changed the doorlocks of the offices of Venezuela's new director general ...