All Strategy articles – Page 1059
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News
Argentinian airport fray
Airlines are stepping up their campaign over rising charges in Argentina's recently privatised airport system but some believe this is flying in the face of standard airport practice. Iata led a high level delegation to the Argentinian government and regulators in early August to seek a revision of the ...
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Pilots fear US alliance
Concern over job security in light of the proposed alliance with Continental Airlines has emerged as the key issue that could lead Northwest Airlines' pilots to strike from 29 August. The pilots' union says that, contrary to company statements, the dispute is about protecting jobs, not pay. The Air ...
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US alliances meet silence
A Wall Street analyst is predicting that none of the proposed US domestic airline alliances will be approved by the Department of Transportation because of the unfavourable environment in Washington DC and concerns about competition. Candace Browning, an analyst at Merrill Lynch in New York, points out that the ...
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United's answer to Travelocity
UAL, the parent company of United Airlines, is somewhat belatedly taking a more aggressive tack in selling its online services. For several months United has been offering tickets on its world wide web site including weekly deeply discounted, Internet-only fares, actions most of its competitors took months ago. More ...
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Europe: few direct answers
Will Europe's aviation industry be ready for the year 2000? The honest answer is that nobody yet knows. To date, companies have largely been preoccupied with their own internal compliance issues, but the wider debate over how the issue will affect the industry as a whole has only just begun. ...
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Asia-Pacific
As Asia rocks from the effects of the year-old financial crisis, a new demon is lurking on the horizon in the shape of the year 2000 date change. The big question is whether Asian airlines will fix the millennium bug in time. Estimates of the global cost to make ...
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Will Gangwal get BA back?
US Airways' president and chief executive officer, Rakesh Gangwal, is hinting strongly of renewed interest in British Airways as an attractive prospective alliance partner. The US airline has been free to pursue its expansion plans since signing an agreement with its pilots' union last year. According to Gangwal, efforts ...
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Beware treading the bear market
The world economy is in precarious shape.The Asian crisis is expected to cut growth by over one third in 1998. The Japanese economy will contract by at least 1 per cent, prolonging the slump throughout the East Asia region, despite the big expansion package put in place in Tokyo. The ...
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Profits for better and for worse
Airline profits may be at an all-time high but can the industry keep them there? It's just déjà vu all over again. So a disillusioned sportsman is said to have remarked on seeing his team once again collapse to defeat. There may be more than a few in the airline ...
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Bouillioun still bullish
Boullioun Aviation Services has strengthened its claim on the number three spot among operating lessors by placing an order worth up to US$2.6 billion for new-generation Boeing 737s. With new financing for its subsidiary, Singapore Aircraft Leasing Enterprise (SALE), Boullioun continues to show its determination to keep growing despite the ...
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Brussels has the last word
Europe's privately owned and publicly quoted airlines must be wondering what they have to do to make a dent in the European Commission's stance on state aid. Their jubilation at the European Court of Justice's annulment of the FFr20 billion (US$3.3 billion) aid package to Air France on 25 June ...
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SIA moves to link with CAL
Singapore Airlines' latest linkup - with China Airlines - offers few clues as to whether it will join the Star Alliance. The agreement by Singapore Airlines and China Airlines to form a strategic partnership caught many by surprise because it does not follow the pattern of pacts between members ...
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Strong on caution
Qantas needs to respond quickly to market conditions yet its managing director, James Strong, refuses to be rushed into any major decisions. If he has said it once, he has said it in a dozen ways: 'There's no use charging around the place; you don't just snatch at things ...
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A time for celebration
While 1997 certainly broke all industry records for profitability, there were already dark clouds on the horizon as the effects of the Asian currency crisis began to make themselves felt. There will be worse to come this year as economies in the region continue to slow. So while the ...
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Cintra stake changes over
The Mexican government is trying to distance itself from the management of Cintra, the holding company for Aeromex-ico and Mexicana Airlines, even though plans for a sale of Cintra shares, including those owned by the government, have been delayed. The federal government has decided to transfer its 10 per ...
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Deregulation dogfight
The US majors are responding to the Department of Transportation's proposed policy against predatory behaviour by arguing that it will deter them from offering cheaper fares. The irony is obvious. This year is the 20th anniversary of deregulation in the US and the industry should be celebrating two decades ...
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The devil's in the detail
The European Commission's rulings on two transatlantic alliances will be poured over by interested parties before official comments are filed. Now that the European Commission finally has produced its conditions for approving the American Airlines/British Airways alliance, lawyers will be scrambling to examine the detail. The Commission's competition directorate, ...
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Winds rise in the east
Following the entry of MetroJet, US Airways' long awaited low cost spinoff, the rapidly growing US east coast market is becoming crowded with competitors. From Florida to Maine the story is the same - the US east coast is booming. Airports are growing capacity; airlines are adding frequencies; new ...
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PAL fights for survival
Philippine Airlines' future hangs in the balance as it prepares a plan to avoid bankruptcy. PAL's interim receivership committee is being supervised by the Philippine Securities and Exchange Commission as it works towards the SEC's 21 September deadline. PAL is struggling to survive an ill-fated fleet expansion and Asia's ...
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Keeping score
Airlines need an accurate means of comparing the potential benefits of their various alliance options and, once the choice is made, to assess the costs and benefits to each partner. The argument about whether alliances are effective and therefore inevitable is over; they are both. The potential benefits to ...