All Strategy articles – Page 1200
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94 at a glance
What will 1994 be remembered for? Many carriers saw a return to profit. Some received major state aid approvals. It was the year when competition from an ever-growing Southwest, plus low-cost entrants led by ValuJet, finally shook the US majors into action. The employees took control of United, and the ...
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Africa set for key changes
With Zambia's government admitting defeat in maintaining its national carrier, new contenders have lost little time in proposing a replacement. And Kenya Airways is readying itself for the transfer of up to 80 per cent of the state holding into the private sector. A joint venture carrier between ...
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Air Macau chiefs resign after row
Paul Lewis/SINGAPORE START-UP CARRIER Air Macau has suffered a major setback with the resignation of its chief executive David Young and two other senior managers, following a row over control and direction of the company. Young has quit the joint venture Sino-Portuguese airline only four months ...
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USA/Canada seek new trans-border deals agreement
Carriers seeking new US-Canada route authority include: Delta Air Lines, which seeks immediate authority to operate two new non-stop flights each between Atlanta and Toronto, Atlanta and Montreal, and Salt Lake City and Vancouver. Delta also wants to connect Cincinnati with Toronto, Montreal and Vancouver. It seeks ...
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Sabre points way ahead
We at Sabre Decision Technologies (SDT) certainly appreciate the point that the Making the Sale article (Airline Business, October 1994) makes: that anyone not already in the business of selling services to the aviation market will 'find it very hard - perhaps impossible - to break in' and compete against ...
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Airline news
American Airlines will start a daily nonstop service from Chicago to Birmingham, UK at the end of May. Elsewhere the carrier was set to begin daily services from Los Angeles to San Jose, Costa Rica at the end of January. United Airlines launched four weekly services from Miami ...
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Samsung purchase plan alarms KAL and Asiana
SOUTH KOREAN industrial conglomerate Samsung is seeking to purchase two long-range wide-body passenger aircraft, ostensibly for company use, but raising the fears of Korean Air (KAL) and Asiana that it intends to establish a rival third national carrier. Samsung is understood to be discussing the purchase of ...
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Altered images
What is happening with the Southwest wannabees? Both Continental Lite and ValuJet shadow Southwest's style, but neither is a true mirror image. Mead Jennings reports on the differences that have spelled one's success and the other's failure. Two airlines, one concept. Launched at a brief interval from one another, ...
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ANZ weighs Oz options
Air New Zealand is believed to be close to deciding on a bold strategic move towards domestic operations in Australia, despite Canberra's shock decision late last year to abandon the proposed Australia-New Zealand single aviation market. Sources say ANZ majority shareholder Brierley Investments Ltd is considering two options, ...
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Bargain carriers establish hubs away from bases
US LOW-COST CARRIERS, Midway and ValuJet Airlines, are establishing new hubs. Chicago-based Midway has reached agreement with American Airlines to lease gates at Raleigh-Durham International Airport, North Carolina, while Atlanta-based ValuJet has begun operations from Washington Dulles International Airport. Midway plans to shift most of its operations from ...
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Bid for freedom
Increased private ownership could help Pakistan International Airlines deal with the challenges imposed by new home-grown competition and loosen restrictions imposed by the country's social objectives. Mark Blacklock reports.Pakistan has been plagued in the past by political patronage, with even middle managers in the public sector fearing for their jobs ...
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Mexico feels the peso bite
The catastrophic devaluation of the peso against the US dollar at the end of December has made matters worse for the Mexican airline industry. The economically precarious Aeromexico-Mexicana consortium, now being run by its creditor banks, is especially at risk. The good news being trumpeted for Mexican carriers ...
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Virgin bucks Oz trend
Virgin Atlantic appears intent on bucking the trend on the highly competitive Kangaroo route. As the UK carrier threatens legal action to gain access, the incumbents are reassessing their independent approach on the route. Virgin's threat follows hard on the heels of a cooperation deal with Malaysia Airlines, ...
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Playing catch-up
Look for some progress in Africa and more competition in the Middle East. After years in the doldrums, African aviation looks set for an upturn in fortunes in 1995. Political instability and financial hardship will ensure the negatives still outweigh the positives, but any form of progress will provide the ...
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Deciphering key codes
Results of the US Department of Transportation's analysis of codesharing are being portrayed as a reaffirmation of US international aviation policy, which promotes crossborder airline alliance-building. However, many aviation officials are questioning the methodology of the study and its findings. The econometric analysis, performed by Gellman Research Associates, ...
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North-South divide
Southern European carriers will struggle as recovery continues in the north. The efforts of the southern European majors in bridging the divide with their resurgent northern counterparts will dominate the aviation calender in the year to come. Any restructuring will be heavily influenced by the attitude of a new-look ...
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United expands shuttle operations
SHUTTLE BY UNITED is to expand its frequencies in eight US West Coast city-pairs and connect San Francisco, California, with Phoenix, Arizona, beginning in early February. The short-haul discounted air service has expanded from its initial 184 daily departures when it started operations in October 1994, to 342 ...
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Washington eyes safety standards
As US airlines assess the damage inflicted by the high-profile debate on safety, concerns are growing that the subject could provoke a political battle of wills, with aviation caught in the middle again. By Mead Jennings. Most US citizens are familiar with the statistics: more than 40,000 people die ...
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PAL faces home threat
Faltering deregulation in the Philippines will receive a boost this month with the startup of the first serious domestic competition for the country's flag carrier. Grand International Airways (GrandAir), set up by a group of former senior Philippine Airlines officials, will operate two Airbus A300s on a four ...