Airline Business articles from April 2002

Airline Business archives from April 2002

Final runners emerge in Brazil race.(the Brazilian airline market is likely to face consolidation)(Brief Article)
April 1, 2002... The five-way race between Brazil's airlines is moving towards three as Vasp languishes and a defunct Transbrasil awaits a death certificate. The latest market share data hints at the changing dynamics. At the top of the league, Varig and...

Start-ups jostle to fill void left by Canada 3000.(new airlines start up in the Canadian market)(Brief Article)
April 1, 2002... Canadian aviation is in the middle of yet more change as new airlines move to replace Canada 3000 while Air Canada seeks to defend its dominance. As one consultant puts it, Canada has passed through a phase of consolidation and market exit...

Detroit takes the strain for Northwest.(Northwest Airlines has added a $1.2 billion terminal to its Detroit Metro Airport hub)(Brief Article)
April 1, 2002... Northwest Airlines has added a $1.2 billion terminal to its Detroit Metro Airport hub as part of a bid to recover strained passenger loyalty. It hopes the move will restore the kudos it lost in early 1999 when thousands of passengers were...

In brief.(Hawaiian Airlines - Aloha Airlines merger is called off; Delta Air Lines cuts retail ticket commissions)(Brief Article)
April 1, 2002... Hawaiian/Aloha merger off A move by Hawaiian Airlines has effectively ended the plans for a merger with Aloha Airlines, a deal originally announced in December. Its decision not to extend the 18 April deadline "essentially precludes...

In brief.(includes multiple articles)(Brief Article)
April 1, 2002... No profits until late next year An Air Transport Association (ATA) report on the state of the airline industry says US carriers will return to profit only in the second half of 2003 and even this is a best-case scenario. Without the US...

US regional spin-offs resume.(Brief Article)
April 1, 2002... USregional spin-offs resume The US regional carriers look likely to become early beneficiaries of the economic recovery that is widely expected as previously postponed public offerings are resurrected. Two regional operators are poised...

Airlines score an early win with new security body.(disagreements with the Transportation Security Administration)(Brief Article)
April 1, 2002... From the outset, airlines and airports have come into conflict with the new Transportation Security Administration (TSA) and their complaints are becoming more public. Conflict with the Transportation Department's new security chiefs was...

United attempts to restore lost pride with its renewed focus on O'Hare.(United Airlines is refocusing on its Chicago O'Hare airport home base)(Brief Article)
April 1, 2002... In a bid to return to its roots as it regroups, United Airlines is refocusing on its Chicago O'Hare home base while maintaining its less healthy but equally long tradition of drawn-out labour strife. As it seeks union agreement to a new...

Past the cycle's trough.(European and Asian air carriers are hoping for better things in 2002)
April 1, 2002... European and Asian carriers are hoping for better things in 2002 after a dreadful last quarter in 2001, report Colin Baker in London and Nicholas Ionides in Singapore UScarriers had already led off with a grim set of fourth quarter results...

AWAIR falls prey to price war.(AWAIR International suspends service to restructure due to heavy competition in the Indonesian market)(Brief Article)
April 1, 2002... AWAIR International has become the first significant casualty of a bitter price war that has broken out in Indonesia, suspending all services to carry out an operational restructuring. AWAIR, launched in 2000 as the first new scheduled...

Korean seeks leverage from SkyTeam.(Korean Air reinstates codeshare agreements with Delta Air Lines and Air France)(Brief Article)
April 1, 2002... Korean Air (KAL) has reinstated codeshare agreements with Delta Air Lines and Air France after more than two years of internal revamp work, finally allowing it to reap rewards from its membership of the SkyTeam Alliance.The South Korean flag...

Thai slims down despite constraints.(Thai Airways International streamlining efforts)(Brief Article)
April 1, 2002... Although redundancies remain politically taboo at Thai Airways International the state-owned carrier is finding more creative ways to slim down, including plans to spin off non-flying operations into separate business units. Enforced...

Race to launch new Cambodian carrier hots up.(new airlines in Cambodia)(Brief Article)
April 1, 2002... A battle between two groups trying to establish a new carrier in Cambodia has been stepped up, with China's Hainan Airlines agreeing to launch Air Cambodia in partnership with the Phnom Penh government. Fast-growing Hainan, part-owned by an...

Air New Zealand launches Qantas pricing probe.(Brief Article)
April 1, 2002... As competition with Qantas gathers pace, Air New Zealand (ANZ) is investigating whether recent Qantas prices are predatory.?ANZ says it is concerned about the general fares being offered within New Zealand and to Australia, as well as...

In brief.(airline industry news briefs)(Brief Article)
April 1, 2002... AirAsia takes SALE737 Malaysia's AirAsia has agreed to lease a Boeing 737-300 from Singapore Aircraft Leasing Enterprise. The low-fare carrier already operates four 737-300s and the fifth will be delivered in June. Pacific code-sharing...

Australian shake-out as Ansett rescue falls apart.(Ansett Australian Airlines)(Brief Article)
April 1, 2002... Ansett Australian Airlines has apparently flown into history, leaving only Virgin Blue to challenge the domestic dominance of Qantas Airways.The deal to revive Ansett after six months in administration has ended in failure.?Melbourne...

Low cost perceptions.(British Airways)(Brief Article)
April 1, 2002... Low cost does not necessarily mean lowest fares or best value, but Europe's majors need to address that perception, argues Chris Tarry of Commerzbank. The British Airways review of its future size and shape released last month left many...

Executive appointments.(Brief Article)
April 1, 2002... Siegel brings regional skill to US Airways US Airways is now in the hands of 40-year-old whizz kid David Siegel, the former Continental Express president, who has taken the titles of president and chief executive. US Airways chairman...

Lufthansa and Singapore Airlines.(Executive appointments)(Brief Article)
April 1, 2002... Star carriers plan successions To stem speculation about his successor as Lufthansa Group chairman, Jurgen Weber has signalled that newly appointed deputy chairman Wolfgang Mayrhuber will assume the post when he steps down at the end of...

In brief.(China Airlines new president)(Brief Article)
April 1, 2002... A 30-year China Airlines (CAL) veteran has been named president of the Taiwanese national carrier. Philip Wei Hsing-hsiung, 60, was selected early in March by the government-controlled China Aviation Development Foundation to replace Christine...

Thai Airways International.(Search ends for new president)
April 1, 2002... Thai search ends Kanok Abhiradee has been named new president of Thai Airways International after a lengthy search for a new leader. The carrier's board of directors announced the decision to appoint Kanok, president of the country's...

Back to business.(The airline industry after Sept. 11)(Brief Article)(Statistical Data Included)
April 1, 2002... Traffic has shown some early but encouraging signs of levelling off. However, in the midst of the returning optimism about filling capacity, the industry must not lose its focus on yields and costs. If it does, there is a risk of repeating the...

No Virgin marriage for Belgian carriers.(SN Brussels Airlines)(Virgin Express)(Brief Article)
April 1, 2002... The breakdown in merger negotiations between Sabena successor SN Brussels Airlines and Virgin Express leaves Brussels with two competing home carriers for the foreseeable future. However, there is much industry scepticism about the...

LOTattracts alliance attention.(LOTPolish Airlines)(Star Alliance)(Brief Article)
April 1, 2002... The Star Alliance is angling to bring LOTPolish Airlines within the grouping as an eastern European partner although rival oneworld is also in the frame. Star chief executive, Jaan Albrecht, confirms that the alliance is having talks with...

Olympic heads into crisis.(Olympic Airways)((EC) inquiry into alleged illegal state aid)(Brief Article)
April 1, 2002... With its privatisation plan grounded, financially troubled Greek flag carrier Olympic Airways is facing a European Commission (EC) inquiry into alleged illegal state aid. The inquiry comes as unions threaten strike action in response to...

London airports charges set to rise.(Brief Article)
April 1, 2002... BAA's Londonairports are a step closer to following the pioneering example of Australia's Sydney and Melbourne airports in being able to raise charges under a new regulatory regime. The UKCivil Aviation Authority (CAA)says that price caps...

Deutsche BA goes back to basics after tough 2001.(reinvent itself as low-fare carrier)(Brief Article)
April 1, 2002... Deutsche BA is to reinvent itself as a low-fare carrier after a troubled 2001 threatened its existence. Chief executive Adrian Hunt says the airline is "going back to its roots" as a low-fare domestic carrier. It will drop international...

Routes.(Lufthansa)(Berlin-London City service)(Brief Article)
April 1, 2002... Routes London-Berlin gets city service Lufthansa is recommencing its Berlin-London City service dropped after 11 September. It will operate to Berlin Templehof rather than Tegel, however. Like London City, Templehof is a city-centre...

Carriers cash in as BAbuys Heathrow slots.(Brief Article)
April 1, 2002... Several smaller carriers are cashing in their lucrative slots at London Heathrow, while moving operations to Gatwick which now also offers the prospect of a less constrained airport with lower costs. Adria Airways, Balkan Bulgarian and...

EC pushes for pricing curbs.(Brief Article)
April 1, 2002... The European Commission (EC) has put forward proposals that would allow it to curb the abuse of state subsidies by carriers outside the European Union (EU). It is asking for the power to impose fines where carriers from third countries are...

Alliance Test.(The management of the Star Alliance)
April 1, 2002... test The Star Alliance has had to mature quickly over the past six months, working to sharpen up decision making and prove its worth to its partners Airline global alliances were born and raised during the boom of the past five years....

New brand.(the airline industry moves from crisis management to recovery management)
April 1, 2002... brand As the first signs of market recovery appear, carriers are looking once more to marketing and branding programmes to help them build business and gain market share It's official: the airline industry is beginning to move...

Regional Thai.(Bangkok Airways continues to prosper)
April 1, 2002... Thai Aggressive pursuit of new opportunities for growth - which includes creating foreign subsidiaries and building its own airports - and a focus on its core market have helped the regional thrive in a difficult profit environment ...

Ready For Growth.(Emirates SkyCargo)
April 1, 2002... for growth Despite the downturn, Emirates SkyCargo is still keen to grow, with A380 freighters and new belly capacity on the way There is a look of eager anticipation on the face of Ram Menen, senior general manager for cargo with...

Events diary.
April 1, 2002... 2002april 8-9 22nd Annual New York Air Finance Conference New York, USA Contact Kerstin Jones Tel +44 20 7779 8534 Fax: +44 20 7779 8603 e-mail: ksteelejones@euromoneyplc.com 8-10 IATA Airline Financial Summit...

WOW woos cargo market but the old brand names remain.(NewGlobalCargo rebrands itself as WOW)(Brief Article)
April 1, 2002... NewGlobalCargo, the cargo alliance between Lufthansa, SAS and Singapore Airlines, formally rebranded itself as WOW in March and announced that it would offer harmonised general cargo services from April. The move, which follows the...

Returning crowds.(The FAA believes the industry will recover slowly)(Brief Article)(Statistical Data Included)
April 1, 2002... At its latest annual forecasting conference in Washington, the Federal Aviation Administration said it believes the industry will recover slowly from recent events, but that this could give breathing space to add infrastructure capacity ...

War risk debate goes into extra time.(War risk insurance for airlines)(Brief Article)
April 1, 2002... Governments around the world stepped in with temporary insurance after commercial underwriters cancelled war risk cover in the weeks after 11 September. Those arrangements were due to run out towards the end of March, however. Only a week...

The Contest.(Airbus and Boeing)(Brief Article)
April 1, 2002... contest Airbus and Boeing continue to battle it out in an increasingly even contest for new aircraft across the range. And despite the recent crisis, both are cautiously optimistic that this year may not be as catastrophic as feared

Rising Stars.(Aircraft leasing)
April 1, 2002... stars With times getting tough, the manufacturers have been able to rely on one type of customer above all others. While some seek to renegotiate their orders, the leasing companies just continue with business as usual. "You can count on...

The only way is up.(Aircraft prices)(Statistical Data Included)
April 1, 2002... is up There are signs that the steep decline in aircraft values has bottomed out, but recovery still promises to be slow While it is certain-ly the case that, since the events of 11 Septemb-, er, aircraft prices have fallen steeply,...

Airline Risk.
April 1, 2002... airline risk Investment in airlines has never been for the faint of heart. Even before 11 September, airlines were far more volatile than other sectors. In fact, carriers have been five times more likely to lose 25% of their value in one...

Feedback.(Brief Article)
April 1, 2002... Please send feedback to: The Editor, Airline Business, Quadrant House, The Quadrant, Sutton, Surrey SM2 5AS, UK Fax: +44 (20) 8652 8914 e-mail: airline.business@rbi.co.uk Low-fare carriers need to develop brand loyalty, argue Stefano Sala...