Strategy – Page 1025
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flexing Muscles
When airline executives dreamed up alliances, some might have imagined that regulatorary approval would be a tough nut to crack, but did they sufficiently weigh up the labour factor? Union cooperation in the formation and development of airline alliances is proving to be crucial. Already, cross-alliance union groups are emerging ...
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SELLING the BRAND
Following the lead of supermarkets and chain stores, major airlines are contemplating the offer of financial market products such as insurance policies and loans. So British Airways is going to offer its customers financial services too . . . When the company announced its intention in March, it joined ...
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Alliances: the next $tep
Can airline alliances take the next step and act like a single commercial business? Frank Berardino and Chris Frankel chart a possible route. Last month, in a report entitled "Keeping the score", USaviation consultancy GRAlaid out the first phase in a strategy for maximising the profits and benefits from an ...
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Lifting the 7th veil
Could the current jitters over alliance plans persuade more airlines to explore fifth and seventh freedom opportunities? British Airways and Qantas use fifth and seventh freedom rights out of Singapore. Fashion is rarely about comfort - ask any model teetering down the catwalk. The same could be said ...
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Hub wars
The big five US interior airports are fighting it out to become the top international gateway in the heart of North America. Patterns of international air service to and from the US are changing. A cluster of airports tucked well inside the continental US are starting to win significant ...
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Not United
United Airlines veteran James Goodwin has been named president and chief operating officer of parent company UAL, replacing John Edwardson, who has resigned. Goodwin was previously senior vice-president, North America. Edwardson resigned after unions made it clear they would oppose his appointment as chief executive. Edwardson was favoured to replace ...
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EC will gain a limited mandate for US open skies negotiations
Alan George/BRUSSELS European transport ministers meeting in Luxembourg on 1 October are expected to agree a limited mandate for the European Commission (EC) to negotiate air services agreements with the USA and other states on behalf of European Union (EU) members. The decision should help defuse a potentially ...
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Low cost maintenance
FLS Aerospace has secured its second big low-cost airline maintenance contract this year with a deal to support UK carrier easyJet. In April the London Stansted-based maintenance company won a similar contract with British Airways low-cost carrier Go covering total support, from line maintenance through to heavy maintenance checks. Monarch ...
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Iberia to double A340 fleet
Max Kingsley Jones/LONDONIberia is planning to boost its Airbus A340 fleet to almost 20 aircraft, with a deal for up to 11 additional examples of the four-engined long-range airliner. Xabier de Irala, president of Iberia, has signed a memorandum of understanding for six firm orders, plus five options. The airline ...
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JAL plans cost cuts in bid to curb losses
Japan Airlines (JAL) is to step up cost cutting efforts in a bid to improve a financial performance which saw group losses reach ´94.2 billion ($710 million) in the year to the end of March. The group is adding further measures to reduce costs by 10% - a ´100 ...
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Marketplace
-SilkAir has taken delivery of its first International Aero Engines V2500-A5-powered Airbus A320. The regional division of Singapore Airlines is replacing its Boeing 737-300 fleet with four A320s and four A319s, and holds options on another 10 aircraft. -ING Lease International Equipment Management has sold and delivered an ex-Pan American ...
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Routes
-Alaska Airlines will suspend its once-weekly winter service to the Russian Far East on 8 October, because the recent circumstances with the Russian economy have made its operations uneconomical, says the airline. Alaska plans to provide connecting services to the region through its marketing partner, Reeve Aleutian Airways, when government ...
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Saudi Arabian studies 717 for regional services
Saudi Arabian Airlines is focusing attention on its short- haul regional requirements, with the Boeing 717 reportedly under serious consideration. The airline began a fleet renewal process late last year which will see 29 Boeing MD-90s, five Boeing 747-400s and 23 777-200s introduced through to 2001. The airline originally ...
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TEA eases into schedules as it prepares for identity change
Andrzej Jeziorski/MUNICH TEA Switzerland is to begin scheduled operations in November in the run up to its withdrawal from the charter market and a change of identity to become easyJet Switzerland. The change will also see the disposal of its Boeing 737-400, and the addition of four new 737-300s from ...
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Sun Air shareholders reject Comair merger
Hilka Birns/CAPE TOWN Shareholders at Sun Air have decided against a merger with rival South African carrier, Comair, which already owns 25% of the recently privatised state-owned airline. Sun Air's major shareholder, the Rethabile black empowerment group, says it is unwilling to relinquish its foothold in the airline ...
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Air Littoral set for development after SAir Group takes stake
Julian Moxon/PARISThe SAir Group has taken a 44% stake in French regional airline Air Littoral, giving it an entry into the south of France market and meeting the loss-making carrier's need for recapitalisation and development funding. The move came after speculation that another French independent, Britair, was in line to ...
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Boeing/Flight Safety head for training take-off
Boeing and FlightSafety International (FSI), parent companies of global airline-training joint venture FlightSafety Boeing (FSB) Training International, say phase one of the start-up initiative will be completed in January 1999. The milestone will be marked by the transition of the former FSI training centre at Kunming, China, to FSB ...
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Healthy future ?
The European regional airline industry has once again beaten all records, with this year's European Regions Airline Association (ERA) meeting in Hanover, Germany, reporting double digit growth in passenger traffic, re-equipment by carriers with new regional jet aircraft and reasonable profit margins. The health of the regionals is traceable ...
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PAL collapse causes new chaos
Paul Lewis/SINGAPORE The almost unprecedented demise of Philippine Airlines (PAL) has left the country's domestic carriers scrambling to find additional capacity to fill the void, while creditors and bargain hunters are beating a path to Manila to pick over the bones of the defunct flag carrier. The decision ...
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Focus falls on solo airlines after tie-ups
With British Airways and American Airlines having confirmed their move to counter the Star Alliance - with the five-airline "oneworld" alliance - attention is now turning to potential responses by major airlines which have not yet committed to one of the global blocks. The oneworld link, formally unveiled in ...