All Strategy news – Page 1024
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Flying out of control
After years of restraint, carriers in Europe appear once more to be raising capacity faster than underlying demand. Yields have already come under pressure and the leading industry indicators being monitored by Airline Business and Commerzbank suggest that there could be worse to come. Last year it seemed that the ...
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Delta defers 777s as pilots pay protest proves costly
Delta Air Lines has deferred delivery of its remaining Boeing 777s on order and has decided to sell or lease two already in operation. The airline blames an ongoing dispute with its pilots and cites their failure to accept new pay rates and work rules for the aircraft type. ...
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Mexicana to be 'Starlet'
David knibb/ SEATTLE Mexicana is due to launch a new tier of membership within the Star Alliance if, as expected, it signs up as a member of the global grouping this month. According to sources within Star, while the Mexican carrier will behave externally as any other partner, internally ...
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WestJet plans to go public
WestJet, Canada's only successful start-up airline, plans to raise capital and broaden its ownership base with an initial public offering (IPO). The Calgary-based carrier has lodged its draft prospectus with securities commissions in each of Canada's provinces and hopes to launch its IPO in the next few months. ...
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Alliances battle over LOT and Malev
Peter Bennett/VIENNA British Airways could be thwarted in its ambitions to buy an equity stake in Poland's LOT and Hungary's Malév, following better offers from Star Alliance and the Qualiflyer Group. British Airways was favourite to take a 38% equity stake in Lot, but relations between the two have deteriorated. ...
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Lack of interest stalls sell-offs
Despite renewed efforts at privatisation, airline sell-offs in the eastern Europe continue to be dogged by a lack of political will and scant interest from Western foreign investors. The Romanian Government is to begin searching for investors to buy a majority stake in its national carrier Tarom. ...
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Cathay narrowly averts pilots strike
Nicholas Ionides ATI/SINGAPORE Cathay Pacific Airways narrowly avoided an all-out pilots' strike early in June by reaching an eleventh-hour agreement with cockpit crew on forced wage cuts. Cathay Pacific is widely seen as having won its longstanding dispute with cockpit crew over new contract terms, after narrowly averting an all-out ...
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Lufthansa links may help ease PAL's problems
Two Lufthansa units are in talks with Philippine Airlines (PAL) on business tie-ups as the troubled Asian flag carrier continues the battle to rehabilitate itself. Lufthansa chairman Jürgen Weber says Lufthansa Technik has "intensified" talks with PAL on a possible investment in its engineering operation at the carrier's ...
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News Corp pulls Ansett sale
Singapore Airlines (SIA) has been blocked in its attempt to buy half of Australia's Ansett Airlines. News Corporation withdrew its offer to sell its half share in Ansett amid signs that Air New Zealand (ANZ) will use its right to pre-empt its Singaporean partner. The News Corp decision to ...
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Australia eases foreign entry
Canberra has rejected a proposal to give cabotage rights to foreign carriers, but has approved recommendations designed to ease the entry of foreign airlines into Australia. Australia's federal cabinet gave its verdict on proposals to liberalise Australian aviation policy put forward by a government-appointed productivity commission. Qantas and ...
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A touch of Swiss prudence
Jackie Gallacher/BRUSSELS Sabena is back in profit and experiencing one of the fastest growth rates in the industry. But under Swiss chief executive, Paul Reutlinger, there has been little fanfare surrounding the transformation. For a man who has just steered a foundering european flag carrier back to profits, Sabena's Paul ...
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Circling the globe
Jackie Gallacher Antitrust immunity has allowed many of the global alliances to pursue schedule co-ordination and joint pricing initiatives. But as the "customer-driven" oneworld hopes to prove, there is still plenty alliances can do without it. There are no prizes for identifying the main landmark in airline strategy over ...
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American justice?
Karen Walker/WASHINGTON DC Rather than wait for the Department of Transportation to define the thin line between fair and predatory competition, the Department of Justice has launched a high profile antitrust lawsuit against American Airlines. In this clash of the Titans, who stands to claim victory? If the US Department ...
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surfing for value
Nancy Schwartz and Michael Zea at Mercer Management Consulting in Washington DC Many airlines have begun using the Internet to market and distribute their products, but few have yet made a success of the medium. Internet-related market value has exploded over the past few years, especially in the USA, so ...
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Lufthansa Technik nears Manila goal
Lufthansa Technik (LHT)has taken a step closer to its goal of establishing a maintenance joint venture in Manila following the signing of letters of intent with Philippine Airlines (PAL)and logistics company MacroAsia. Formal approval of the plan by the boards of all three companies is expected "within a couple ...
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SAirGroup wins fight for stake in SAA
SAirGroup has won the battle for a 20% equity stake in state-owned South African Airways (SAA)after Lufthansa and Singapore Airlines (SIA),pulled out of the bidding. The Swiss company's $230 million offer was favoured over bids from American Airlines and David Bonderman's Texas Pacific Group. The move has prompted ...
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Air France and Delta link to take on oneworld and Star
Julian Moxon/PARIS Air France and Delta Air Lines have agreed the terms of a long-anticipated alliance. They have pledged to sign up further partners by the end of the year to form a global grouping that will be bigger than the emerging KLM/Northwest Airlines-led Wings alliance and "intended to ...
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Midway grows east US service with 737s
Midway Airlines plans to expand its eastern US services with 17 newly ordered Boeing 737-700s to counter growing competition from US Airways' low cost division, MetroJet, and Southwest Airlines. The North Carolina-based regional airline plans to replace its eight remaining Fokker 100s with the new aircraft by the end ...
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Speedwing to tackle Olympic problems
Chris Jasper/LONDON Speedwing, the consultancy division of British Airways, has won a 30-month contract to manage state-owned Greek airline Olympic Airways, with the UK flag carrier concluding a parallel deal which may allow it to take a stake of up to 20% in the ailing airline. Greek transport minister ...
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US pilot shortage is 'critical'
David Learmount/LONDON The pilot shortage in the USA has become critical, according to US airlines. A flightcrew deficit in the USA has affected the regionals, but it looks set to hit the major airlines soon. The US Airways Group says it is reducing the growth rate of its ...