News from FlightGlobal – Page 2655
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94 at a glance
What will 1994 be remembered for? Many carriers saw a return to profit. Some received major state aid approvals. It was the year when competition from an ever-growing Southwest, plus low-cost entrants led by ValuJet, finally shook the US majors into action. The employees took control of United, and the ...
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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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Bid for freedom
Increased private ownership could help Pakistan International Airlines deal with the challenges imposed by new home-grown competition and loosen restrictions imposed by the country's social objectives. Mark Blacklock reports.Pakistan has been plagued in the past by political patronage, with even middle managers in the public sector fearing for their jobs ...
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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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China feels the pinch
Just when China's airlines are facing a struggle, Bank of China is pressuring them to find at least some unguaranteed finance for 1995 aircraft deliveries. As a result CAAC affiliates, including flag carrier Air China, are testing the market by notifying Hong Kong financiers of their desire to ...
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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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Sabre points way ahead
We at Sabre Decision Technologies (SDT) certainly appreciate the point that the Making the Sale article (Airline Business, October 1994) makes: that anyone not already in the business of selling services to the aviation market will 'find it very hard - perhaps impossible - to break in' and compete against ...
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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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Washington eyes safety standards
As US airlines assess the damage inflicted by the high-profile debate on safety, concerns are growing that the subject could provoke a political battle of wills, with aviation caught in the middle again. By Mead Jennings. Most US citizens are familiar with the statistics: more than 40,000 people die ...
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MAS makes more moves
Malaysia Helicopter Services is continuing its rapid expansion of global aviation interest, but the launch of its latest joint venture may sour relations between Cambodia and Thailand. MHS has taken a 40 per cent stake in Royal Air Cambodge, stepping into the breach left by Singapore Airlines, which ...
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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 ...