All Strategy articles – Page 1017
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Negotiating change at ALPA
Karen Walker WASHINGTON DC ALPA's new president, Duane Woerth, says he is not afraid of change. But the US pilots he represents are beating the same drum: they expect to see their airlines' profitability reflected in new contract negotiations. If Duane Woerth is looking for a fight, he does a ...
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Consultants assess Malpensa
Two UK consultancy firms are compiling a dossier on transport links at Milan Malpensa Airport to help determine whether most of the flights remaining at the city's Linate Airport should be transferred to the new hub on 31 October, as planned. The European Commission-appointed companies - London-based Alan Stratford ...
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Union blues
Jane Levere NEW YORK For all the talk of change in the airline industry, contentious pilot-management relations seem to many to be set in stone. Industry observers believe two imminent contract negotiations - at Delta and United - will set the benchmarks for labour relations generally. When the ...
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Brazilians refute merger speculation
Brian Homewood RIO DE JANEIRO Brazil's four major airlines have described reports that they are considering merging into two as "mere speculation". But the Brazilian airline industry remains awash with rumours that Varig, Vasp, Transbrasil and Tam could join forces. Varig says that company president Fernando Pinto, who went on ...
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PAL enters cargo venture talks with Lufthansa
Andrzej Jeziorski/SINGAPORE Struggling Philippine Airlines (PAL) is talking to Lufthansa about a joint cargo service between Manila and Frankfurt, which could mark PAL's return to Europe after a year away. According to PAL, the proposed block space agreement will come into effect on 1 November, with PAL buying ...
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Controlling the future
Peter Bennett VIENNA Commercialisation, privatisation and the empowerment of Eurocontrol are possible solutions to Europe's growing delays. The solution for Europe's air traffic delays is simple. First, look at the causes - a fragmented air system controlled by a patchwork of control centres that leads to the inefficient management ...
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A crowded market
Lois Jones BEIJING & SHANGHAI Still shuddering from Asia's economic crisis, China's aviation industry is restructuring with domestic tie-ups and the home market high on the agenda. The Hainan Airlines aircraft took off and spread its wings over the sprawling mass of Guangzhou, south China - one of the most ...
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Majors eye Kennedy terminals
Delta Air Lines and United Airlines are weighing up major investments in new terminal facilities at New York's Kennedy Airport, already in the middle of a massive $9 billion redevelopment programme for new terminals and infrastructure. Delta and United operate from outdated and overcrowded facilities while many of ...
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KLM uk eyes low-cost route
Lois Jones LONDON Fierce competition from low-cost carriers at its London Stansted base is forcing KLM uk to rethink its market position and restructure. Launching its own no-frills service is one possibility. The KLM regional subsidiary is to axe six unprofitable routes from 12 September and streamline its fleet. The ...
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Raising the internet stakes
Dennis Blank ORLANDO The explosion of online travel booking in the USA - stimulated by offerings of bargain basement ticket fares - is attracting the wrath of travel agents. But US major carriers cannot ignore this rapidly growing marketplace. This year, the customary late summer round of airfare bargains across ...
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Management teams
Carriers in need of change are looking to new boardroom teams for results. Analysis is by Michael Bell, who leads the Global Aviation Practice for senior-executive search firm Spencer Stuart The past few months have brought into focus a new form of leadership at troubled carriers around the world: management ...
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Passenger seat restraint
Kevin O'Toole Continuing fall-out from Asia's economic crisis reverberated around markets last year as is clear from the latest passenger airline rankings. But it is concerns over falling yields rather than traffic that are now taking centre stage. Last year posed something of a test of resolve for airline ...
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Profits on a plateau
Kevin O'Toole In the final analysis, the airline industry's financial results for 1998 were once again a mix of the encouraging and the depressingly familiar. Overall profitability came out at almost identical levels to the year before. The industry should perhaps take heart from that fact, given the dire ...
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Reading the signs
Major carriers appear to be signalling their intent to rein back on excess capacity. Chris Tarry at Commerzbank looks at the signs and the possible influence of alliances in the equation. It does not take a degree in rocket science to realise just how testing this year has already been ...
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Stormy weather
Carole Shifrin WASHINGTON DC Air traffic delays are not unique to Europe. The USA is also being forced to look hard at upgrading services After some fierce attacks by several top airline officials on the Federal Aviation Administration's running of the US air traffic control system, airline and FAA ...
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BA to axe 1,000 managers in bid to save profits
British Airways is to cut about 1,000 management jobs in a move it says is aimed at reducing costs to pay shareholder dividends. BA says it "will find additional savings of £225 million [$360 million] this year to deliver the profits that the City expects". Analysts had warned that ...
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AeroPeru goes into liquidation after final rescue efforts fail
Paul Lewis/WASHINGTON DC Final hopes of finding a new financial backer for AeroPeru have been extinguished as creditors rejected four last-ditch rescue proposals and initiated moves to liquidate the grounded national carrier. "The creditors met to consider four proposals, none of which were acceptable-The creditors were obliged to ...
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KLM-Continental row hits Wings alliance
Chris Jasper/LONDON The planned launch of the so-called Wings alliance is in doubt after a disagreement between Dutch flag carrier KLM and Continental Airlines of the USA - two of the four major airlines that had been expected to launch the grouping this year. Sources close to the pair ...
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Eurocontrol appeals for capacity increase
Eurocontrol is asking member states to commit to increasing national airspace capacity over the next five years so it can better predict future trouble spots. The move comes after European delays hit an all-time high in June, when 37.3% of all flights were delayed by more than 15min, according ...
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Canadian gets three-month deadline
Brian Dunn/MONTREAL Canadian Airlines has been given three months to find a financial lifeline, with Ottawa suspending competition rules for 90 days from 13 August to help the ailing carrier find a saviour. The Calgary-based airline seems unlikely to emerge from the period in its current form. Ottawa's move ...