All Strategy articles – Page 1192
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Meeting market needs is essential
Airlines are turning their organisations upside down - creating new problemsIn examining the airline business, many company strategists are working overtime these days. Following the disastrous start to the 1990s, most airlines are going through the most intensive period of soul-searching ever. They are asking questions like: What is our ...
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Facing up to new frontiers
As described in Pricing it Right in the February issue of Airline Business, O&D yield management is the current frontier in airline marketing planning. In addition to the direct revenue benefits to be gained by controlling the mix of passenger itineraries flowing over an airline's route network, the ...
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Tough finding the right niches
There are encouraging signs of start-ups and expansion in Europe though financial returns and yields are low. Europe's regional airlines are emerging from the recessionary gloom comparatively unscathed. The last three and a half years have seen their share of closures, but on balance the sector is growing. ...
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French malaise
Air France is moving in the right direction to achieve profitability but some serious contradictions risk undermining its credibility. Jacqueline Gallacher reports from Paris.Air France Group is on the defensive these days, but after receiving a highly controversial FFr20 billion ($4 billion) in state aid, who wouldn't be? With appeals ...
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Networkers of the future
As deregulation bites, Europe's airlines will have to chose between being network managers or capacity or service providers, says an analysis by consultants McKinsey & Company. Europe's airline industry has traditionally been characterised by monolithic national carriers with strong links to their national governments, a lack of competition on routes, ...
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Transfers hold key to growth
North American regionals and majors will become even more tightly linked as future commuter operations grow.The increasing trend whereby major airlines transfer short-haul jet routes to regional carriers is expected to encourage the growth of regional airlines in the US and Canada. Already, 95 per cent of regional airline passengers ...
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Opt-out halts Swiss talks
The only significant hurdle that appears to stand between Swissair taking a 49 per cent stake in Sabena is the European Commission. Ironically, it has not been Swissair's bid to gain access to the internal European market through the backdoor that has cast the Commission in the role ...
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Indian scene starts to slip
The long-awaited clear out in the overcrowded Indian domestic market appears close at hand, with the owners of at least one private operator considering pulling out of the business. As the private domestic operators report declining load factors and plunging profits, the owner of Damania Airways is seriously ...
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Open skies, open scraps
As Canadian carriers prepare for flights to the US under the open skies agreement, US airlines are competing for temporary awards of rights to Toronto that could become permanent. Since the US Department of Transportation gave out 17, ostensibly temporary, US-Canada route awards in February, there has been ...
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Psyched up
Austrian Airlines is bouncing back after three years without profit. Carrier president Herbert Bammer says alliances and open skies with the US could lead to a turnaround. Mead Jennings reports. A small airline from a small country: Austrian Airlines has two of the essential ingredients for an inferiority complex, ...
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Bombardier poised to make Dash 8-400 engine choice imminent
BOMBARDIER WILL select an engine for the de Havilland Dash 8-400 "by the end of April", says Regional Aircraft division president Pierre Lortie. Board-level approval to offer the 70-seat high-speed regional turboprop to airlines is expected at the same time, he says. Lortie was speaking at the 19 ...
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US-UK bilateral talks stall again
U S AND UK negotiations over a new bilateral air-services agreement have again stalled, although the UK Department of Transport says that it expects a fresh round of talks to be tabled soon. Despite what is described as a more optimistic atmosphere, the last two rounds of talks have produced ...
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Swissair: lining up to complete a grand global alliance
SWISSAIR IS to offer Delta Air Lines a role in its planned link-up with Belgian flag carrier Sabena, in a move which could see the Swiss airline complete its goal of pulling together its partnerships into a grand global alliance. Singapore Airlines, Swissair's other partner within the Global ...
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Australia heads for Hong Kong dispute
HONG KONG AND Australia are heading for confrontation over Qantas fifth-freedom rights from Hong Kong to Singapore and Bangkok. The Australian carrier has built a substantial market network, using the three Asian destinations as hubs for services to Europe, and for tourism products within Asia. On 20 April, ...
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MarkAir returns to bankruptcy
MARKAIR, THE Alaska-based carrier which emerged from Chapter 11 in 1994, has again sought federal bankruptcy-court protection following a demand for overdue lease payments from General Electric's GE Capital Aviation Service (GECAS). MarkAir filed for Chapter 11 after GECAS warned the carrier that it would repossess four ...
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Open for business
Heralded as "the airport for the 21st century", sceptics began to believe that Denver International (DIA) might not see its first passenger until then. Technical problems involving the airports automated baggage-handling system, delayed DIA's grand opening four times, for a total of 16 months. Each month cost the ...
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USAir deficit is improving
USAIR HAS TRIMMED its losses by $100 million in the first quarter, producing optimism that it may at last be back on course after a run of disastrous results. The airline still turned in a net loss of nearly $97 million for the quarter, but claims that this ...
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EVA takes stake in second Taiwan domestic
EVA AIR HAS acquired a stake in a second Taiwanese domestic airline in a move designed to strengthen its presence in Taiwan's highly competitive home market. The international carrier reportedly paid NT$330 million ($13 million) for a 20% share in Great China Airlines. This latest deal follows EVA's ...
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TAT finalises Orly plans
BRITISH AIRWAYS' French subsidiary TAT is at last ready to reveal plans on how it will exploit its hard-won access to the domestic hub at Paris Orly. Several other airlines have already begun competing with incumbent French domestic airline Air Inter between Orly and Marseilles, Toulouse and Nice, ...
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Southern gateway
The first 11-gate phase of Miami Airport's new concourse A is due to open in June as part of the southern gateway's $2.7 billion expansion and redevelopment programme which is due to last until 2010. Gateway is the operative word at Miami, Florida, which boasts more carriers - ...