Airline Business articles from April 2001

Airline Business archives from April 2001

Regulatory hurdles remain for United's merger plans.(United Airlines Inc.)(Brief Article)
April 1, 2001... United Airlines' $4.3 billion plan to carve up US Airways with the aid of an American Airlines scalpel faces further regulatory delay and labour obstacles, although American's $742 million take-over of Trans World Airlines has passed nearly all...

Unions try to delay Cintra separation : Mexican airline unions are seeking to derail or at least delay the separation and sale of Cintra, the state holding company which owns Aeromexico and Mexicana, by insisting that the government first sets a comprehensive aviation policy.(Brief Article)
April 1, 2001... The union, which represents employees at carriers Aeromexico and Mexicana, is concerned about the implications of what is effectively a re-privatisation of Mexico's two largest airlines.EThey want a policy that addresses the long-termviability...

Northwest first to cut Internet commissions: Northwest Airlines and its sister carrier, KLM, last month took the bold step of totally eliminating commissions paid to online travel agents operating in North America; previously, they had paid them a 5% commission capped at $10.(Brief Article)
April 1, 2001... Travelocity, the largest online agency, responded by imposing a $10 service fee on Northwest and KLM ticket sales; however, number two Expedia did not follow suit. Like Northwest a customer of Worldspan, Expedia said it was negotiating with the...

US labour crisis averted - for now: A widely predicted US airline labour crisis has not happened, though the prospect remains of another summer of sporadic and possibly illegal worker protests.(Northwest Airlines Corp.,)(Aircraft Mechanics Fraternal Association,)(United Air Lines Inc.,)(International Association of Machinists and Aerospace Workers)
April 1, 2001... The intervention of President George W. Bush to avert for 60 days an industrial action against Northwest Airlines by the Aircraft Mechanics Fraternal Association, which now cannot legally act before10 May at the earliest, has set the tone. The...

Rivals fight it out over Lima.(Brief Article)
April 1, 2001... Grupo TACA and LanChile are facing off in a power struggle between their Peruvian units, TACA Peru and LanPeru.EAt issue are the 12 international routes of defunct AeroPeru, and the ability of both carriers to exploit the geographic advantage...

Roots Air set for launch.(Brief Article)
April 1, 2001... Competition in Canada is about to heat up as Roots Air makes its debut as a national, full-service airline. The new carrier, a joint venture between charter operator, Skyservice Airlines, and Roots Canada, a Canadian clothing chain, planned to...

SEPI set for union showdown.(Sociedad Estatal de Participaciones Industriales)(Brief Article)
April 1, 2001... Unions are on a collision course with SEPI, the Spanish manager and majority owner of Aerolineas Argentinas. SEPI has unveiled plans to cut eight domestic destinations served by Aerolineas or its subsidiary, Austral Airlines, and to lay off...

US majors issue profit warnings.(American Airlines Inc.)(United Air Lines Inc.)(Brief Article)
April 1, 2001... United and American Airlines have become the fourth and fifth major carriers to warn that the US economic slowdown will crimp first-quarter performance. United also said its full-year 2001 financials would be lower than Wall Street estimates....

Let's go hubbing: Cross-border consolidation may be slow to materialise in the airline industry but it is only a matter of time. And as the industry does become truly global, it is hubbing strategies that will hold the key to success, writes Chris Tarry of Commerzbank.(Brief Article)
April 1, 2001... In theory the life cycle of the airline industry should be little different from any other market. As it matures the business should tend to consolidate around fewer successful players and see others exit. That is the theory. In reality the...

ACCC slot deal clears Hazelton take-over.(Competition and Consumer Commission)(Hazelton Air Services Proprietary Ltd.)(Brief Article)
April 1, 2001... Ansett has agreed to conditions imposed by the Australian Competition and Consumer Commission (ACCC), allowing it to complete the takeover of regional carrier, Hazelton Airlines. The deal came after a bidding war for Hazelton between Ansett...

Transpolar US-Asia routes heat up.(Brief Article)
April 1, 2001... As competition to dominate new routes overflying the North Pole intensifies, Cathay Pacific Airways is the latest to add its name to non-stop services between Hong Kong and New York. Cathay says it will launch scheduled non-stop transpolar...

China to loosen central ownership: Major Chinese airlines are set to win greater autonomy under a long-planned restructuring of the country's aviation bureaucracy that will see the Civil Aviation Administration of China (CAAC) giving up ownership of airlines.(Brief Article)
April 1, 2001... Industry sources in China say the country's State Council has decided after years of debate to strip the CAAC of equity ties to the 10 airlines under its direct "control and administration". Airlines believe the changes, which will be carried...

Government help for troubled KLIA.(Brief Article)
April 1, 2001... Malaysia has set up a high-level committee to study ways of encouraging more operations to embattled Kuala Lumpur International Airport (KLIA) after another high-profile service cancellation. Japan's All Nippon Airways was the latest...

Routes.(Brief Article)
April 1, 2001... Japan-Canada codeshare Air Canada and All Nippon Airways (ANA) are to codeshare on flights between Vancouver and Nagoya. ANA added its code to Air Canada's four weekly flights on the route, while Air Canada will operate five weekly...

In brief.(Brief Article)
April 1, 2001... JALlobbies for Haneda access Japan Airlines (JAL) is to boost its efforts to convince the government to allow it greater access to Toyko's Haneda airport, and to generally do more to ease capacity constraints at the capital's congested...

South Asian privatisation on the rails : South Asian airline privatisation plans have been hit after a number of key airline contenders for a stake in Air India dropped out of the running and Bangladesh was forced to push back plans to sell a stake in Biman Bangladesh.(Brief Article)
April 1, 2001... The Indian Government was faced with the bad news on 23 February, the closing date for "technical bids" to be received for Air India. Only two groups have confirmed that they remain in play. These are the two Indian conglomerates, the Hinduja...

Australian start-ups hurt major carriers: Midyear results from Qantas and Air New Zealand show the impact that Australia's discount carriers, Impulse and Virgin Blue, have had on the established airlines.(Brief Article)
April 1, 2001... Fare competition contributed to a 22% drop in half-year profit at Qantas, and a 97% plunge at Air New Zealand.EFuel prices, currency devaluations, and a net traffic slump following the Sydney Olympics also played a part, but the effect of...

Season of blame: The US public and press are preparing for another summer of delays and damning headlines as the nation enters its third consecutive summer of congested. Fundamental reform is needed but unless that message gets through, then airlines will once again pick up the bulk of the blame.(Brief Article)
April 1, 2001... The flight attendants at United Airlines are threatening random flight disruptions under the heading Create Havoc Around Our System (CHAOS). After the experience of the last two years, a jaded USpublic may be moved to ask how they will notice...

SkyTeam overhaul link takes shape.(Brief Article)
April 1, 2001... As it consolidates its number two position worldwide in airline maintenance, repair and overhaul (MRO), Air France Industries (AFI) is looking towards alliance partners and organic growth, rather than acquisitions, to try and overtake market...

Mengozzi embarks on Alitalia reconstruction: Times have been better for Italy's flag carrier. An alliance remains elusive, privatisation has yet to be completed and its financial situation appears bleak.(Brief Article)
April 1, 2001... The departure in February of chief executive Domenico Cempella, after more than four years at the helm, appeared to be the final blow. The focus is now on new chief executive Francesco Mengozzi - a manager whose experience is entirely within...

BA to buy main franchise partner.(Brief Article)
April 1, 2001... In a move that mirrors those made by Air France and Lufthansa in seeking greater control over their regional airline partners, British Airways has confirmed it is the bidder aiming to take over British Regional Airlines Group (BRAL) for...

Cargo operations worry about independence: Independence is proving an issue for two European cargo operations as airline consolidation continues within the region.(Brief Article)
April 1, 2001... For SAirLogistics, the diversified cargo company within the SAirGroup, the question is how it will be affected by the much publicised troubles of its parent company. There has even been speculation that SAirGroup will now seek to sell...

No Go for KLM as BA holds 3i talks : British Airways has entered into exclusive negotiations with 3i, the UK venture capital and private equity group, for the sale of Go, its low-cost subsidiary.(Brief Article)
April 1, 2001... It is understood that the bid from 3i values Go at around [pound]100 million ($140 million). 3i has previously been involved in the airline sector with its highly successful investment in 1991 in CityFlyer Express - which operated as a BA...

Greek merger creates second force.(Brief Article)
April 1, 2001... Having shied away from entering the bidding process for flag-carrier Olympic Airways, two of Greece's main private carriers - Aegean Airlines and Cronus Airlines - have announced they are to merge their operations. The merger has been on...

In brief.(Brief Article)
April 1, 2001... JAT seeks USA link JAT is hoping to re-start DC-10-30 services between Yugoslavia and the USA for the first time since 1992. That year the USbanned its flights as part of economic sanctions against the country because of human rights...

Identity: In an increasingly brand-aware world, airlines are wondering how their image should evolve as markets change and how they can ally their brands with those of the alliances.
April 1, 2001... Clay Timon looks pleased with the curvaceous blue and white livery, with touches of red, which adorn a brand new Airbus A320. The chief executive of Landor Associates, one of the doyens of global branding, was taking a moment to review the work...

Electronic: The race is on to establish a common platform for e-ticket interlining before bilateral arrangments get too far ahead.
April 1, 2001... Will the paper-ticket soon be a thing of the past? There are plenty in the airline industry who think so, citing the cost savings and convenience of electronic ticketing, or e-ticketing as it has become known. But there is a problem. How will...

Coaching : Isao Kaneko took over as c.(chief executive of Japan Air Lines)
April 1, 2001... Isao Kaneko has a confession to make. He never set out to become an airline executive and certainly not chief executive at Japan Airlines (JAL). Basketball was his first love. And although he recognised that he was not going to make it as a...

Still: While other start-ups falter, JetBlue Airways is going strong. Having taken delivery of its eleventh A320, it is poised to continue growing.
April 1, 2001... JetBlue Airways has set records from the outset. When it launched at the start of last year it did so as the best-financed new entrant since US airline deregulation. It was also granted a record 75 peak-time slots to phase in at New York's JFK...

Playing : RFID tags for baggage have been on the horizon for some years. Are they now on the verge of being adopted?(radio frequency identification)
April 1, 2001... Pity the poor barcode baggage label. Strapped on a suitcase handle at check-in, it is subjected to conveyors, chutes, ramp loaders and rough treatment by baggage handling staff. Even in its pristine state, it has at best an 80% chance of being...

Time to invest in human assets: Is it time that air transport revisited the way that it builds its management teams?There may not be a choice argues Richard Lewis, managing partner at The Marlborough Partnership a European executive search comsultancy specialised in airline and airport recruitment.(Brief Article)
April 1, 2001... As every airline executive knows, their industry is evolving at breakneck speed. Systems and solutions that served faithfully for more than a generation may have to be jettisoned along the way as organisations become leaner and fitter. So why...

Dangerous dance: With delays growing and a renewed round of USairline mergers, Congress could be in a mood to legislate on passenger rights and competition.
April 1, 2001... In Washington, they talk about the "dance of legislation". It describes the lengthy process of how a "public issue" is first distilled into a bill, then becomes a "focal point" and a "centre for discussion". Sometimes it even becomes law. The...

US slowdown fails to halt growth.(Airlines)(Brief Article)
April 1, 2001... USairlines will rebound after slow growth this year and next, predicts the Federal Aviation Administration. However, in its latest forecast the FAA assumes that the economic slowdown now brewing in the USA will not have a major role in slowing...

SAirGroup crisis continues as exit strategy costs loom : As the merry-go-round at senior management level at SAirGroup continues, attention is turning to the potential cost to the Swiss group if it decides to ditch Sabena and its French airline interests.(Brief Article)
April 1, 2001... A figure of SFr2.5 billion ($1.45 billion) has been mentioned in the Swiss press, and analysts say that although no foundation was provided for this figure, an exit strategy will be expensive. "The question is what will it do to their...

EDS acquires Sabre unit.(Sabre Holdings Corp.'s airline outsourcing business)(Brief Article)
April 1, 2001... Sabre Holdings Corporation has sold its airline outsourcing operation to the giant EDS Corporation for $670 million. Sabre will now focus on its more profitable, faster-growing lines of business, travel marketing, distribution and software. ...

In brief.(airline news briefs)(Brief Article)
April 1, 2001... United aims to cut $200m United Airlines is targeting cutbacks in its in-flight service provision to help it slash $200 million in costs. The airline says the cost-cutting measures, which also include a hiring freeze, will only have a...

After: The A380 stole the show last year, as its first orders gave way to still more until the programme was fully launched at the end of 2000. Now Airbus must deliver on its promises and silence the doubters.
April 1, 2001... There have been times over the past few years when it seemed as if Airbus would never launch the A3XX. After a series of false starts and near launches, the champagne corks finally popped at the Farnborough Air Show last July, when...

Balanced backlogs: Aircraft orders rebounded last year, but few doubt a downturn is on its way. Is the market in better balance this time around?(Brief Article)(Statistical Data Included)
April 1, 2001... Despite some early nervousness, last year actually turned out to be another high watermark for aircraft orders. However, with the world economy at last showing real signs of weakening, including near-daily warnings from the USA and Japan, this...

Riding : Despite increasing competition from Airbus, Boeing holds most of the cards in the rapidly expanding freighter market.(Statistical Data Included)
April 1, 2001... These are interesting times for the freighter people at Boeing. Demand for freighters looks set to soar in the next two decades - something that the latest Boeing and Airbus forecasts are in complete agreement on. Driving that growth,...

Counting on: The frequent flier programme is a powerful marketing tool, yet few airlines have a rational set of benchmarks against which to measure their success. The basis for such a measurement model is laid out here in the first of two articles on FFPs.
April 1, 2001... Frequent fliers know exactly how to put a score against different airline loyalty schemes - they simply count up the miles and benefits that they receive. But from the other side of the counter, what should an airline count if it too wishes to...

Networking: The inaugural Network route planning event in Dallas highlighted the need for airlines and airports to co-operate.(Brief Article)
April 1, 2001... The timing somehow seemed significant. Delegates assembled on 5 March in Dallas to launch the inaugural Network route-planning event from Airline Business with a conference to examine the strategic implications of liberalisation. Meanwhile, in...

[0] In brief.(European airline news briefs)(Brief Article)
April 1, 2001... Eurowings stake blocked Germany's competition authority has declared that it intends to block Lufthansa's proposed acquisition of a 49% stake in regional Eurowings because it will further extend the German flag carrier's domination of the...

[0] Routes.(airlines)(Brief Article)
April 1, 2001... TAP overhauls network TAP Air Portugal has unveiled a broad network restructuring plan, aimed at restoring the carrier's profitability, featuring a system of three daily connecting waves between European, African and American flights at...