All Strategy articles – Page 1024
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News
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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The tie that binds
The game is far from over for the global airline grouping, as Delta's deal with Air France demonstrates. But if there is more realignment to come, the SAirGroup is putting its trust in old-fashioned equity. The course of love never did run smooth. Neither, it seems, do the course ...
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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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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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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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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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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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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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USA and UK revisit open skies talks
Talks on a new US-UK liberalised aviation bilateral agreement are due to resume at the start of July, but the hosts in Washington DC remain cautious about the likely outcome of this latest round. Talks were set to restart in mid-June but were cancelled by the UK Government, which said ...
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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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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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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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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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Delta/Air France alliance makes an impact
Chris Jasper/LONDON Andrew Doyle/MUNICH Paul Lewis/WASHINGTON DC The new Delta Air Lines/Air France alliance, announced amid much fanfare last week, has had a significant impact on other major airlines and could ultimately dictate the future strategic direction to be followed by carriers including Swissair and Continental Airlines. ...
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ANZ stays in hunt to control Ansett
Air New Zealand (ANZ) has declared a continued interest in taking full control of Ansett Australia in the wake of News Corporation's withdrawal of a plan to sell its 50% stake in the Australian carrier to Singapore Airlines (SIA) for A$500 million ($325 million). In a statement to the ...
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Deutsche BA could prosper from parent's cuts
Jens Flottau/BERLIN British Airways subsidiary Deutsche BA says it is keen to fly more routes on behalf of its parent and could take over some of the services to be shed by BA as part of the planned rationalisation of its European route network. In addition to cutting destinations, farming ...
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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 ...
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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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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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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 ...