Networks – Page 1406
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Still not free to handle
The European Commission may have finally produced a directive aimed at dismantling the European ground handling monopolies, but its application is at least three if not six years away. Instead, Brussels will continue to pursue complaints with traditional methods, as it has with its most recent action against the Greek ...
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TWA hits more snags
Highly publicised problems at TWA and numerous successes at Northwest Airlines do not tell the full story at either carrier. TWA, though in the midst of a difficult financial restructuring in an attempt to stave off bankruptcy, may not be compromised in its negotiating position. Northwest is still carrying a ...
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Air Namibia Bonn threat
Air Namibia may have to suspend its only intercontinental service amid charges of arm-twisting by Bonn officials which leaves German carriers in a dominant position. The airline, which entered the long-haul market only four years ago, says it may have to cease operating its three times weekly Windhoek-Frankfurt-London ...
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French cut to make point
Two years after the third package came into effect, so-called competition came to the French domestic market with a bang - although some would argue it was a publicity-motivated whimper. Air Inter and Air Liberté entered into a widely reported price war on the Paris/Orly-Toulouse route. But TAT ...
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US shapes and wavers
Canada's intent to liberalise its bilateral with the US will give transportation secretary Federico Peña his first major foreign policy success. And moves in Brussels over the US open skies proposal to nine European nations may add impetus to resolve the dispute over how to address codesharing in the offer. ...
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Mexico feels the peso bite
The catastrophic devaluation of the peso against the US dollar at the end of December has made matters worse for the Mexican airline industry. The economically precarious Aeromexico-Mexicana consortium, now being run by its creditor banks, is especially at risk. The good news being trumpeted for Mexican carriers ...
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Pricing it right
As O&D yield management techniques take systems to unprecedented levels of capability, the real challenge for airlines will be their proper integration and use. Jackie Gallacher reports. Like many technologies, yield management has taken time to evolve from the early systems of the 1980s to reach its current level ...
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Longhaul freedom
Christopher Chataway, chairman of the UK Civil Aviation Authority, examines the obstacles to competition on longhaul routes and suggests how to overcome them. Drawing from a recent CAA report, he highlights bilaterals, EU bloc negotiations, problems faced by smaller airlines, corporate discounts, fare levels, and airline collusion. Longhaul aviation ...
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Asia's revival
Most Asian carriers should return to healthy profits, if they can contain costs. After four years of belt tightening, Asia-Pacific airlines are looking to the new year as a period of real revival, although managements believe trading conditions will remain tough. They also concede stringent measures will have to be ...
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Slow progress
Latin America's mainly private airline industry hopes for economic stability. Latin America's airlines can look forward to 1995 with cautious optimism, provided the Mexican financial crisis does not spill over into the region. The economies of many Latin American countries have stabilised, led by Brazil, where the Real Plan has ...
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Making the right moves
Understanding how to adapt their strategies to a rapidly changing 'newgame' environment may be one of the most important lessons for airline managers in the 1990s. Dr John Steffens proposes a suitable framework. It should be a basic premise in any industry that new games require new rules. And the ...
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Airline news
American Airlines will start a daily nonstop service from Chicago to Birmingham, UK at the end of May. Elsewhere the carrier was set to begin daily services from Los Angeles to San Jose, Costa Rica at the end of January. United Airlines launched four weekly services from Miami ...
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North-South divide
Southern European carriers will struggle as recovery continues in the north. The efforts of the southern European majors in bridging the divide with their resurgent northern counterparts will dominate the aviation calender in the year to come. Any restructuring will be heavily influenced by the attitude of a new-look ...
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Altered images
What is happening with the Southwest wannabees? Both Continental Lite and ValuJet shadow Southwest's style, but neither is a true mirror image. Mead Jennings reports on the differences that have spelled one's success and the other's failure. Two airlines, one concept. Launched at a brief interval from one another, ...
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Playing catch-up
Look for some progress in Africa and more competition in the Middle East. After years in the doldrums, African aviation looks set for an upturn in fortunes in 1995. Political instability and financial hardship will ensure the negatives still outweigh the positives, but any form of progress will provide the ...
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Financial results
Air Liberté returned to profit on strong sales growth, and said it was helped by the stronger dollar. The carrier launched its Orly-Toulouse route in January. Air Malta's 19% profit increase produced a record result, with a 39.9% pre-tax return on shareholders' equity. It launched 13 new scheduled ...
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Share and share alike?
South Korean and Chinese airlines finally launched the first-ever scheduled flights between their respective capitals in December following agreement on a commercial pact to pool revenues. The insistence by Air China and China Eastern on such a pact had surprised Korean Air Lines and Asiana, which were ready ...
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PAL faces home threat
Faltering deregulation in the Philippines will receive a boost this month with the startup of the first serious domestic competition for the country's flag carrier. Grand International Airways (GrandAir), set up by a group of former senior Philippine Airlines officials, will operate two Airbus A300s on a four ...
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Virgin bucks Oz trend
Virgin Atlantic appears intent on bucking the trend on the highly competitive Kangaroo route. As the UK carrier threatens legal action to gain access, the incumbents are reassessing their independent approach on the route. Virgin's threat follows hard on the heels of a cooperation deal with Malaysia Airlines, ...
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Beijing beckons
Paul Lewis/BEIJING In the 16 years since China opened its doors to reform, the country has emerged as a major trading partner of the West and is on course to become an economic superpower in the next century. Underlining its emerging importance are the many corporations beating a ...