All Strategy news – Page 1135
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Asia's cargo crunch
Airlines bidding to capitalise on the projected rich pickings from the Asia-Pacific cargo boom are pouring capacity into the region. But nobody is benefiting as rates, yields and profits slump, says Tom Ballantyne. When United Airlines said earlier this year that it planned to enter the full-freighter air cargo market ...
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Ramping up the price
Europe's airlines are fighting to cut costs but the second Cranfield University study of user charges at the region's airports suggests carriers can expect little help from their infrastructure and ground handling providers. By Ian Stockman. Since the last assessment of aircraft turnround fees at European airports by Cranfield ...
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Sunshine Express
Delta has finally launched its low-cost carrier. But has management learned from the mistakes made by other US majors in setting up such low-fare units? Jane Levere first looks at the arguments for and against the Florida-based Express operation and then turns to California to review the performance of Shuttle ...
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Rocky road
Will Canadian Airlines International survive until the weight of its financial liabilities start to lift two years from now? David Knibb weighs up the Calgary-based carrier's chances. Canadian Airlines International is in a race against time. Two years from now its loan and lease obligations will ease, finally giving the ...
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Renaissance or rigor mortis?
A lifeline of capital and a rescue plan are intended to help Alitalia haul itself back to shore. Will these measures prime the carrier for profitability and privatisation or merely keep Alitalia temporarily afloat? Lois Jones reports. One troubled Italian flag carrier. Comes complete with imminent restructuring plan, fresh funds, ...
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High risk business
The risks associated with flying are obvious, but airline managers face hefty business risks, too. Colin Smith says risk management should be a board responsibility and asks whether airline directors can afford the risks they are running. Risk in the aviation industry is most commonly associated with threat to ...
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Ghana clears FAA hurdle
Ghana has joined South Africa as only the second sub-Saharan African country to secure category one status from the US Federal Aviation Administration. The rapid process of the country's application could help diffuse criticism over the FAA's tough safety oversight policy, particularly towards South America. The approval paved ...
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Who's taking a liberty?
The lure of valuable slots at Paris/Orly has attracted four potential suitors for troubled Air Liberté after the carrier entered receivership on 26 September. AOM, Air France Europe, TAT and Virgin Express have all expressed interest and reopened the debate about the French government's competition policy. Saddled with ...
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DOT bridges policy void
Pre-election sensitivities have frozen US aviation initiatives by legislators, leaving policy-making in the hands of Washington regulators. The reluctance of Congress to tackle tough issues is typified by its unwillingness to extend the recently reinstated airline ticket tax past its end-of-year expiry. Before adjourning for the ...
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Eagle lands in MAS' lair
The Malaysian government has finally acceded to pressure to authorise a second international carrier but will initially protect flag carrier Malaysia Airlines from direct competition. The AirAsia consortium has battled for two years to secure a licence in the face of opposition from MAS and has finally secured ...
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Ansett deals few changes
The shakeup of Australia's aviation sector following Air New Zealand's successful acquisition of Ansett is likely to have more of an impact outside the country than within. ANZ's swoop to appoint Cathay Pacific managing director Rod Eddington to head Ansett is a rare managerial coup in the region. Eddington will ...
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FedEx Fred is top dog
If there was any doubt that Fred Smith is the most important man in US aviation politics, events in early October dispelled them. It was then that the chairman of FedEx Corp decided to reassert his lobbying muscle. Smith regularly deploys his big guns. In large measure, for ...
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US is set to open up Asia
The US has floated a joint approach to open skies talks with the Asia-Pacific region for the first time. While cynics view the move as an attempt to kick-start stalled talks with Japan and deflect attention from the European focus of recent policy, some officials argue it is a genuine ...
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SIA hopes lift in India
The proposed Singapore Airlines Indian joint venture with the Tata Group is back under government scrutiny. And while the civil aviation ministry insists it will ban all foreign participation in Indian carriers, the weak state of some private Indian carriers suggest the sector may benefit from foreign investment and management ...
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SAA trips on triple threat
South African Airways is having a hard time of it. In mid-October, the carrier was embroiled in a bitter battle with its technical staff and faced a threat of court action from its pilots. Its domestic rivals are turning up the heat through alliances with British Airways and Virgin Atlantic. ...
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Wide smiles at Sabena
It's happy families in Brussels, on the surface at least. Sabena's management appears to have won the support of the unions for the airline's 'Horizon '98' restructuring plan, which will lead to lower labour costs and to more flexible working hours. All four Sabena unions have signed a ...
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Even the good times aren't good
It may appear to be a vintage year but life for some airlines continues to be troubled. A casual reader of this issue of Airline Business could be forgiven for not realising that 1996 is a vintage year for the the airline industry. Just consider some of the stories: ...
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SAS Express is so simple
SAS has responded to the threat of competition on its profitable Nordic services by piloting a new simplified product, SAS Express. SAS Express is being used to brand 14 daily Stockholm-Oslo services for a three-month trial period from 22 October but could be extended throughout its Nordic and domestic network. ...
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Unions balk at BA plans
British Airways is facing a serious confrontation with its two main unions in the wake of plans to slash US$1.5 billion from its cost base in three years. The UK carrier has also come under fire from employees and the financial community over the apparently unfocused nature of its proposals, ...
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WAEA
David Svatos, supervisor of in-flight services and entertainment with Trans World Airlines, of St Louis, Missouri, has been elected president of the World Airline Entertainment Association (WAEA), of Los Angeles, California, for 1996-7. Joe Leach, manager of onboard programmes at Delta Airlines, of Atlanta, Georgia, becomes vice-president. Marcy Beaubelle, vice-president ...