All Strategy articles – Page 1108
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A red flag to a bull?
New scheduled operators Spanair and Air Europa have shaken up Iberia's traditional monopoly in the Spanish domestic market. Lois Jones reports from Madrid and Palma de Mallorca on how competition has prompted the Spanish flag carrier to get its act together. Never be fooled into thinking the Spanish market staid, ...
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Canada set for shakeup
The two major Canadian carriers are preparing their unprofitable regional operations for a shake-up, as Canada's low-cost startup carriers threaten to expand their influence. Even before Air Canada has completed a review of the future of its five regional carriers, it has been approached by a potential purchaser ...
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TWA faces up to challenge
Faced with what he describes, modestly, as a 'major challenge', Trans World Airlines' chief executive Gerald Gitner has outlined a four-part plan to get the airline back on its feet. The St Louis-based carrier faces an uphill battle but should not be counted out yet. At the airline's ...
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Chinese puzzle
In the runup to the 1 July handover of Hong Kong to the People's Republic of China, there were only a few clues to the many questions over Beijing's likely airline policies in the former UK colony. From Cathay Pacific's managing director David Turnbull has a ...
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Thai is hardly Star choice
As the razzamatazz around the launch of the five-carrier Star Alliance subsides, Thai Airways International is emerging as the weak link in the chain and there is growing speculation that the carrier could be dumped for two other Asian carriers. The other members of the alliance, Air Canada, ...
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Merpati free not to choose
Jakarta finally has released Merpati Nusantara Airlines from the grip of Garuda Indonesia, but the government is still calling the shots in Merpati's fleet planning. Merpati and Garuda quietly completed their divorce in April when a government decree came into force officially separating the two carriers. The government ...
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Shuttle is in Wolf's court
Few expect US Airways to give up its Shuttle, but a move by American Airlines to purchase the prestigious east coast operation, as well as possible interest from United Airlines, has introduced another twist in the carrier's continuing battle with unions. US Airways operates, but does not own ...
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TAM gets set for US debut
The TAM group is to launch Brazil's fourth international carrier and American Airlines has wasted no time extending its relationship with the multi-airline operator. The ambitious TAM group has established Transportes Aereos Meridionais as its intercontinental carrier, which could launch services between Sao Paulo and Miami as early ...
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Euro startups go to market
European startups are wasting no time in positioning themselves for expansion as Virgin Express ponders following Ryanair with a stock listing, while Debonair looks set to tap the markets by August. The Irish low-cost carrier set the flotation ball rolling in May, offering 54.2 million shares on the ...
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Financial results
The sale of Continental Airlines shares added US$126m to pre-tax income, which was lowered by $24m by a regional airlines strike. Air France made its first net profit since 1989, but Air France Europe lost $93m despite $50.5m in aircraft sales. Future results will be reported jointly after ...
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Friendly skies? Let's get honest
Blame it on the lettuce leaf liner. Just a few years ago, when airline CEOs across the US were nervously eyeing their costs per available seat mile, the challenge was to trim costs without upsetting the passenger. An easy throwaway was the limp piece of lettuce that lined the trays ...
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Two to tango
The Taca Group was once held up as a model for Latin American airline cooperation, but now stands accused of selling out through its planned alliance with American Airlines. But does Taca chairman Federico Bloch have any choice? Doug Cameron reports. Please don't tell officials at the US Department ...
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We win together
Profits and a healthy cash balance once seemed impossible goals for Continental Airlines. Having achieved them, chairman and chief executive officer Gordon Bethune has turned his attention to the fight for global market share. Interview by Richard Whitaker Working together worked! So says the banner headline on the front cover ...
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Airbus waits for orders before committing to growth A340s
Airbus Industrie says that it needs a "significant" number of orders for the new A340-500/600 versions of the A340 before committing to full development and production. Despite that, sales chief John Leahy is "optimistic" that sufficient airlines to justify the $2.5 billion development cost will commit to the ...
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British Airways
The Cranfield School of Management has awarded an honorary MBA degree to British Airways chairman Sir Colin Marshall in recognition of his "distinguished contribution to business and aviation". Sir Colin was named chairman after ten years with British Airways, and in May this year was elected president of the Confederation ...
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SIAand Ansett study options for wide-ranging alliance
Singapore Airlines (SIA) is reported to be close to reaching a tentative agreement with Ansett on a potentially wide-ranging alliance, encompassing commercial co-operation and the possible purchase of equity in the Australian carrier. The two are expected to sign a memorandum of understanding as a first step towards ...
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AMR Eagle divides regional-jet order: Embraer wins key deal
AMR Eagle has divided its long-awaited order for regional jets between Embraer and Bombardier, although the Brazilian manufacturer has won the key competition to supply 50-seaters. AMR Eagle will take delivery of the first of 42 firmly ordered EMB-145LRs, powered by the Allison AE3007A1 engine, in February 1998, ...
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Northern exposure
Max Kingsley-Jones/TORONTO Fortunes of Canadian charter airlines have been mixed in recent years. Established names have disappeared, to be replaced by new carriers seeking to Ìll the void, as the market itself has begun to undergo a metamorphosis. The country's inclusive-tour "holiday" market has traditionally broken ...
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Airbus holds a high ground in week of sales activity
Business has been extremely active in the commercial market, dominated by Boeing and Airbus, this week at Le Bourget. News from McDonnell Douglas, however, was conspicuously absent this year. Boeing started the week in the limelight over its discussions about the proposed merger with McDonnell Douglas. Boeing ...
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$2.5billion orders confirm market opportunities for regional jets
If Paris '97 has proved one thing, it is that regional jets are here to stay. This morning, manufacturers can reflect that RJ order announcements this week topped $2.5billion, launch customers have stepped forward for two new programmes, and the jet has spread into both the 30 and ...