Airline Business articles from August 2003

Airline Business archives from August 2003

Low-fare carriers sustain growth path.
August 1, 2003... The US low-fares sector remains the main driver of industry growth, with recent aircraft order and financing action from AirTran and JetBlue Airways. The sector now accounts for almost a quarter of US domestic capacity, while the only...

American cleared again on predatory pricing issue.(Brief Article)
August 1, 2003... American Airlines has won another victory in its four-year-long fight against a federal price-fixing suit that had become a test of contemporary antitrust enforcement. At the start of the Independence Day holiday, a federal appeals court...

Air Canada's restructuring moves into next phase.(Brief Article)
August 1, 2003... The ratification of labour cutbacks negotiated with its nine unions and new creditor agreements mean Air Canada has cleared some major hurdles in its bankruptcy reorganisation, and the airline has been allowed to move into the next phase of its...

In brief.(Brief Article)
August 1, 2003... USAirways order switch Faced with pilot union objections, US Airways switched its Bombardier order for 25 CRJ-705s in a two-class 75-seat configuration and will now take 25 CRJ-700s with 70-seats, to be flown by Mesa Airlines. The US...

Aircraft orders on hold.
August 1, 2003... Aircraft markets have been heavily depressed over the past couple of years. Those waiting for an upturn in new orders should not hold their breath, warns Chris Tarry of CTAIRA. When they finally arrived, the new order figures from Airbus...

Foreign investors buy into AirAsia.
August 1, 2003... Just over 18 months after a group of investors took over Malaysia's then loss-making AirAsia for just 1 ringgit (26o) plus the assumption of half its debts, a 26% stake has been sold in deals that value the low-cost airline at $100 million. ...

In brief.(China Southern Airlines and KLM are expanding their codeshare agreement)(Brief Article)
August 1, 2003... Chinese codeshare China Southern Airlines and KLM are expanding their codeshare agreement. From 26 October KLMwill codeshare on flights from Beijing and Shanghai to Changsha, Guangzhou, Guilin, Shenzhen and Wuhan. Druk selects A319 ...

Sydney airport sparks fight on fees.(Brief Article)
August 1, 2003... A change in the way Sydney airport charges landing fees could lead to their reregulation at Australia's major gateway and hub. Sydney's plan to switch from per-tonne to per-passenger domestic landing fees provoked a complaint from Virgin...

Open questions.(US and European Union negotiate air travel)
August 1, 2003... As European and the US negotiators prepare to open the first round of talks on a new aviation agreement, Brussels will have to steer a careful course between its long-term ambitions and some short-term political realities This autumn the...

Night flight fight to go on.(London Heathrow)
August 1, 2003... The battle to end night flying at London Heathrow is far from over, despite the European Court of Human Rights overturning a lower court decision that could have led to a ban. The court's Grand Chamber ruled by a majority of 12 to nine...

In brief.
August 1, 2003... Suter's regional move Moritz Suter, the founder of Swiss regional carrier Crossair, is planning a return to the business with the launch of another regional airline this autumn. Although at the early stages, the aim is to offer services on...

Pilots boost New Olympic.(Olympic Airways)
August 1, 2003... The Greek government and airline management have agreed a framework deal with pilots to cut flightcrew numbers as they seek to restore the fortunes of loss-making Olympic Airways. The Greek government's plan to resurrect its foundering flag...

Talking.(US and European Union)
August 1, 2003... point Brussels and Washington are striving to impose their own blueprints for reform of the the international aviation system At long last, the European Commission (EC) is finally on the verge of sitting down to negotiate an aviation...

Feedback.
August 1, 2003... Don't forget the back office Network carriers need to keep cost-cutting moving and should look next to efficiencies in the back office, argues Paris-based Patrice Vinet, global managing partner of Accenture's Airline Industry Practice ...

Mixed messages from DVT lawsuits.(Brief Article)
August 1, 2003... Lawsuits over deep vein thrombosis (DVT) or "economy class syndrome" have advanced in the USA at the same time as a UK court threw a significant obstacle in their path. A US district judge in San Francisco ruled that a woman from...

In brief.(Brief Article)
August 1, 2003... Star lines up 100-aircraft order Four carriers in the Star Alliance are in talks to place an order for up to 100 aircraft in the 70 to 120-seat range. Air Canada, Austrian Airlines, Lufthansa and SAS expect to place an order by year-end,...

Special report.(Brief Article)
August 1, 2003... With budgets still under intense pressure, ITdepartments are being asked to deliver more for less cost as revealed in the latest Airline IT Trends Survey. And budget issues were again high on the agenda as airline chief information officers...

Outside.(kiosks at airports)
August 1, 2003... the Self-service kiosks are starting to change the airport environment, led by a surge of installations among the major UScarriers keen to cut both lines and costs Kiosks, the automated self-service check-in devices, have begun to...

Decision.(KLM looks for alliance)
August 1, 2003... time The chief executive of KLM is about to bring to an end more than 10 years of alliance manoeuvring when he links his airline to either the oneworld or SkyTeam alliance KLM chief executive Leo van Wijk seems remarkably relaxed for a...

Legal hurdles threaten Varig/TAM merger plan.(Brief Article)
August 1, 2003... Nothing seems to run smoothly in the attempted integration of Varig and TAM. Combined, they would be among the world's top 25 airline groups, over twice the size of the next largest Latin American rival. But new obstacles keep coming up. ...

Former SIA boss joins low-cost move.
August 1, 2003... A former managing director of Singapore Airlines (SIA) is considering launching the first low-cost airline in Singapore, to be known as ValuAir. The company's backers - including former SIA chief Lim Chin Beng - are looking to operate...

Hong Kong cargo deal opens Pacific.
August 1, 2003... Air cargo rivals Federal Express and UPS are poised for a Pacific Rim battle after new fifth freedom rights were granted by the USA under a US-China agreement, allowing for more service through Hong Kong. The US Department of Transportation...

Australian carriers jockey for New Zealand positions.
August 1, 2003... Australia's Virgin Blue and Qantas Airways hope in the next three months either to start up or boost their presence in New Zealand, but their plans depend on the ruling of the competition authorities on the proposed merger between Qantas and...

Disgruntled staff force out incumbent airline unions.
August 1, 2003... US airline workers, angered at concessions to which their unions have agreed, are rebelling, forcing out long-established unions at two major carriers. In a big upset at United Airlines, mechanics voted out the International Association of...

Alitalia stretches out strategic choices.
August 1, 2003... As Alitalia seeks more time to finalise its future relationship with Meridiana, the Italian flag carrier has received indications that Brussels is moving forward on approving its joint venture with Air France, but with conditions attached. ...

Recovery starts as SARS crisis begins to wane.
August 1, 2003... The worst of the SARS-related downturn has passed and the recovery has officially begun, as hard-hit Asia-Pacific carriers begin to report a solid rise in passenger demand. Carriers across the region were badly hurt from the end of March by...

Open.(Iraq)
August 1, 2003... for IATA and other industry groups are working to reintegrate Iraq into the world aviation community. Their success will aid airlines throughout the Middle East The issue of Iraq has been a recurring source of problems for the world's...

Single Sky timetable under threat.
August 1, 2003... Europe's Single Sky project to transform the region's fragmented air traffic management (ATM) system is likely to be delayed by disputes over military airspace, the role of Eurocontrol and the underlying issue of national sovereignty. In...

Cost trails.(Airlines are demanding fast action from Europe's air traffic service providers)
August 1, 2003... Airlines are demanding fast action from Europe's air traffic service providers to reduce charges, but a deeper reform of the sector's cost structure is needed too IATA's blunt message on the urgent need for infrastructure providers to...

Time.(Kuwait Airways)
August 1, 2003... to take The past decade has not been kind to Kuwait's flag carrier. Now, with the overthrow of Saddam Hussein, it knows the onus of reform rests squarely on its own shoulders The pursuit of profitability by Kuwait Airways (KAC) has so...

Onboard.(Internet conncetivity)
August 1, 2003... online After a period when carriers and air travellers had far more to worry about than the development of in-flight Internet connectivity, interest is reawakening Aphrase that could have been invented specifically for the airline...

The common use debate.
August 1, 2003... As airlines such as Delta invest in their own airport kiosks, they are committing to a proprietary fleet at the same time that many airports themselves are backing a common or shared kiosk system. With IATA's endorsement, common-use...

Events diary.
August 1, 2003... 2003SEPTEMBER 7-9 Routes 2003 Edinburgh, UK See Highlights 9-12 World Airline Entertainment Association annual conference Seattle, USA Contact Carmen Ortiz-McGhee Tel +1 703 610 9021 Fax +1 703 610 9005 ...

Executive appointments.(Alitalia)
August 1, 2003... Alitalia Alitalia Mengozzi turns to Brenneman for advice Alitalia chief executive Francesco Mengozzi has brought in ex-Continental Airlines president Greg Brenneman and his consultancy firm TurnWorks to "support the competitive...

Sudden impact.
August 1, 2003... While major carriers in Europe and North America showed a little more stability over the first half, traffic fell away sharply for Asian carriers as SARSstruck, reports Mark Pilling It comes as little surprise that the most dramatic shifts...

Guiding.(airlines finance)
August 1, 2003... lights This year's annual focus on management consultancies looks at the benefits and pitfalls of firms connected with individual airlines (see directory pages 60-61) Partially in reaction to the hefty costs involved in retaining...