Strategy – Page 993
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SAA courts Asian partnerships
South African Airways (SAA) is pursuing a new northern Asian partnership after restructuring its South-East Asian routes through extended codeshares with allies Singapore Airlines (SIA), Thai Airways International and Japan Airlines (JAL). An announcement is expected soon, but SAA will only say that it is talking to several airlines, ...
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Sirocco re-evaluates strategy
Andrew Doyle/MUNICH Sirocco Aerospace and Lufthansa Technik have frozen plans to establish a worldwide support network for the Tupolev Tu-204-120, in the face of the Russian economic crisis. Meanwhile, the German company's sister business, Lufthansa Cargo, confirms that it has decided not to acquire the freighter version of ...
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Sun rises for Northwest low-fare rival in Minneapolis
Sun Country Airlines, the USA's second largest passenger charter carrier, plans to become a low fare scheduled airline in June. The move by the Minneapolis/St Paul-based airline will be a thorn in the side of incumbent rival Northwest Airlines. The airport is Northwest's most important hub, and the US ...
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Rule change
Paul Lewis/WASHINGTON DC The aero engine service business has undergone a fundamental overhaul since 1995, when manufacturers began to recognise the untapped potential of the aftersales market to boost revenue. Airlines, struggling to cut costs, have been moving meanwhile to spin off their engineering divisions or to exit the ...
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Telephone approval
AirCell has received a waiver of approval from the US Federal Communications Commission, allowing operation of its airborne telephone system, which connects with ground-based cellular networks. The system is targeted at general aviation and airline markets by the Louisville, Colorado-based company. Source: Flight International
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Marketplace
-US passenger/cargo charter airline Omni Air International has taken delivery of a McDonnell Douglas (MDC) DC-10-30 from Lufthansa, which is operated by charter subsidiary Condor. The aircraft will join Omni's fleet of two DC-10-10s and one -30, and a second ex-Condor DC-10-30 will arrive in June. -Boeing won orders from ...
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JAL forms new links with oneworld partners
Andrzej Jeziorski/SINGAPORE Paul Lewis/WASHINGTON DC Japan Airlines (JAL) has entered into a new partnership with British Airways and is deepening its ties with American Airlines in a move bringing it a step nearer to possible future membership of the oneworld alliance. JAL remains coy about its membership ambitions, ...
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PAL talks to resume as President steps in
Andrzej Jeziorski/SINGAPORE Philippine Airlines' (PAL) creditors have agreed to resume talks to rework the airline's rehabilitation plan, after overwhelmingly rejecting it in their initial analysis, according to the Philippine Securities and Exchange Commission (SEC). The announcement follows Philippine President Joseph Estrada signing an executive order making the SEC ...
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Government bank plans CAL bid
Andrzej Jeziorski/SINGAPORE The Taiwanese Government-owned China Development Bank (CDB)has declared an interest in buying a 35.5% stake in China Airlines (CAL), days after Singapore Airlines (SIA) dropped its bid. CDB is an investment arm of Taiwan's ruling Nationalist Party and owns about 2% of CAL together with another ...
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Thriving business
Andrew Doyle/TEL AVIV In an era when airline bosses preach the merits of focusing on "core activities", Arkia Israeli Airlines has learned to thrive through diversification. As Israel's largest domestic carrier, Arkia built its international charter unit into a major leisure travel business, selling everything from hotel rooms ...
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Management actions
Graham Warwick/WASHINGTON DC Flight management systems (FMS) are no longer luxury items found only on large airliners, but essential equipment on commercial aircraft of all sizes and ages. The reason is the navigation accuracy now possible and the cost benefits available to airlines in the form of fuel and ...
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Canadian unveils new image
Canadian Airlines has revamped its image with a new name, new uniforms and a new stylised "Canada goose" logo. The Calgary-based carrier has dropped the word "International" from its name in an effort to promote its domestic services, and the new livery features more bare metal so as to more ...
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Ansett to replace 747-300s with -400s
Paul Phelan/CAIRNS The board of Ansett International has endorsed a plan to acquire two Boeing 747-400s as interim replacements for two 747-300s it leases from partner Singapore Airlines (SIA). The decision removes any near term plans to acquire smaller twinjets. The airline operates the 747-300s between Australia and ...
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Routes
Taiwan's EVA Airways has dropped its seven-month-old Kaohsiung-Los Angeles service because of low demand. The decision marks an end to EVA's ambitions to make the southern Taiwanese port of Kaohsiung its second international hub. -South African Airways is increasing its Hong Kong to Johannesburg non-stop service to three weekly ...
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SIA abandons plan to buy stake in China Airlines
Andrzej Jeziorski/SINGAPORE Singapore Airlines (SIA) has abandoned plans to buy a stake in Taiwan-based China Airlines (CAL), ending proposals for a strategic tie-up, including codesharing, frequent flyer links and lounge sharing. In August 1998, SIA announced a memorandum of understanding with CAL, covering a wide-ranging alliance, with SIA ...
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JAL shareholder calls for senior management resignations
Andrzej Jeziorski/SINGAPORE The biggest single shareholder in Japan Airlines (JAL) has called for top management resignations following the airline's drop in profit and turnover in recent years. Eitaro Itoyama who owns about 4% of the airline, has demanded that the company's board of directors and president Isao Kaneko ...
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Niche accidents
David Learmount/LONDON Despite a worldwide campaign to reduce it, controlled flight into terrain (CFIT) increased in 1998 for the second year running, both among jet and non-jet flights, confirming the reversal of a previously favourable trend. There were five jet CFIT accidents and eight involving propeller-driven commercial aircraft. This ...
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Ex-Cathay executives try to save PAL
Andrzej Jeziorski/SINGAPORE Four senior executives at Cathay Pacific Airways have quit to form a new management consultancy that will try to save struggling Philippine Airlines from collapse. The executives are Peter Foster, formerly Cathay's general manager for Taiwan and the Philippines, who will become chief company adviser; Michael ...
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Avant Airlines links with Continental for international feed
Avant Airlines of Chile has signed a marketing alliance with Continental Airlines in an effort to expand its international traffic feed and further strengthen its position as the country's second largest carrier. The two carriers plan to begin joint marketing activities and codeshare services early in the new year ...
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Continental Express aims for all-ERJ fleet within five years
Paul Lewis/SAO JOSE DOS CAMPOS Continental Express is committed to replacing its entire fleet of 98 turboprop aircraft with new Embraer ERJ-135/145 jets within five years, but has ruled out a near-term requirement for a larger 70-seat regional transport. The Continental Airlines subsidiary has ordered 75 ERJ-145s and ...