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Aviation History
1997
1997 - 1945.PDF
•* TOP SO AIRLINES 12,600 aircraft. The ordering over the year, however, climbed close to 1,000 units. Con cerns are beginning to surface over the need to keep expansion in check this time around. ICAO notes that, while load factors have con tinued to rise, the growth is beginning to level off- giving this as one of die reasons for the fall in yields during 1997. IATA predicts that capacity could even begin to grow ahead of traffic this year. Director General Pierre Jeanniot issued a memorable warning earlier this year against adding exces sive new capacity, advising that "...it is harder, but sometimes smarter, not to buy aeroplanes". There are factors likely to help smooth out die ordering cycle this time round, including more responsive lead times from manufacturers and die likelihood of a gender movement in the world economy. Not least, there is the memory of the excesses of the last recession, although it remains to be seen how long that continues to exercise its influence. RESHAPING THE WORLD The market is also going through some serious structural shifts in the wake of deregulation. The formation of global alliances is already beginning to reshape the industry worldwide and more is promised. The Lufthansa/SAS/United Airlines pact has for the time-being taken the initiative with the creation of the Star Alliance earlier this year, cementing relations with Air Canada, Thai Airways, and later with Varig. A giant rival is under construction by Am erican Airlines and British Airways. The process of passing anti-trust approvals has been pro tracted, but the partners should at the latest have the deal in place for their 1998 summer schedule. BA brings with it the Qantas link and its partners in Europe, while American has a stake in Can adian Airlines and has agreed a deal with Aero- lineas Argentinas, sparking talks with Iberia. The alliances could well progress further, especially in Asia. Japan Airlines is talking more openly about the potential for a tie-up with American, and its rival All Nippon Airlines (ANA) has been in discussions with the Star Al liance partners, although it says that it is keep ing options open. SAS partner British Midland and Lufthansa's links with South African Airways could yet entice those carriers towards an agreement. Air New Zealand is also working closely with United, and could bring with it an even greater prize via its own new three-way tie- up with Ansett and Singapore Airlines. Elsewhere, Swissair has been attempting to bring together a third grouping with Austrian Airlines, Delta Air Lines and Sabena, while KLM is building on the Northwest Airlines link, with Air UK and Kenya acquisitions. If the deals can be tied up, these groupings would together account for close to half of the Top 50 airlines and control not far off half of the world scheduled passenger traffic. In short, the strongest airline groups are • FLIGHT INTERNATIONAL 30 July - 5 August 1997 Star performers - already linked with Thai, Lufthansa promises another Asia/Pacific link this year i your business We have one very simple aim — to free more of your time, your money and energy to spend on the real business of running your airline operations. WB are Airline Rotables Limited (ARL). Together with sister companies SASCO and MAE, we are strategic business units of Singapore Technologies Aerospace. As specialists in Component Support Services, we focus on delivering reliable, high quality services structured to meet your specific operational needs. If you want access to the most effective rotable component support services available in the world, and would prefer to concentrate your resources on other important areas of the business, invest in a call to ARL, today. we mind your rotabl ARL • • • • ••• A :.:.:g else is a compromise Airline Rotables Limited, Stansted Airport. England Tel:+44 (0)1279 681770 Fax: -44(0)1279 680126 www.inter-plane.com/arl ••• Singapore A member of k 3 - T i #•• Technologies
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