Airline Business articles from February 2001

Airline Business archives from February 2001

Aerolineas woes continue.(Aerolineas Argentinas)(Brief Article)
February 1, 2001... The problems at Aerolineas Argentinas are not over.EIts Spanish managers are being forced to fund a bigger share of its $650 million recapitalisation, new rivals are coming, and Argentina's precarious economy offers scant hope of a boost.Iberia...

Air Canada cutbacks spark strategy debate.(Brief Article)
February 1, 2001... Air Canada has cut back its network capacity and trimmed staff numbers. Some believe these moves and falling profits are to do with problems related to the firm's recent acquisition and subsequent integration of Canadian Airlines.Some analysts...

Slater departs with competition shot.(Department of Transportation's Rodney E. Slater on airline competition)(Brief Article)
February 1, 2001... As US Transportation Secretary Rodney Slater prepared to leave office, the issue of US low-cost airline competition once again came to the fore.Slater must have been reminded of his first year in the job. In 1997, his department promised a...

LanPeru resumes domestic flights.(Brief Article)
February 1, 2001... A change in ownership has helped end the impasse that has grounded LanPeru, with the carrier re-starting domestic operations on 1 February, restoring LanChile's role in Peruvian aviation. In December, LanPeru was forced to suspend all...

In brief.(airline news)(Brief Article)
February 1, 2001... Northwest spending spree Northwest Airlines has announced a major fleet expansion, with orders for 24 Airbus A330-300s and six A319s, 20 Boeing 757-300s and two 747-400s. The A330s will replace DC-10s on Transatlantic routes. This order...

In Brief.(Westdeutsche Landesbank acquisition and United Air Lines Inc.'s to use internet to buy fuel)(Brief Article)
February 1, 2001... WestLBbuys Boullioun WestdeutscheLandesbank (WestLB) has agreed to buy Boullioun Aviation Services, a major operating lessor, from Deutsche Bank AG for an undisclosed amount. WestLB is already an aircraft financier thatEemphasises finance...

[0] In Brief.(the year 2000 in airline finances)(Brief Article)
February 1, 2001... Carriers suffer in final quarter High fuel costs, labour disruption and bad weather have savaged the final quarter of 2000 financial results of several US carriers. Northwest Airlines blamed work stoppages by mechanics and flight...

TACA rules out near-term share sale.(Grupo TACA)(Brief Article)
February 1, 2001... An equity stake sale, either to another airline or the public, is not envisaged in the near future for Grupo TACA, says its chief executive, Federico Bloch (see page 34 for a detailed interview).EInstead, he says, "it's something we'll do at...

Southwest quits San Francisco.(Southwest Airlines Co.)(Brief Article)
February 1, 2001... Southwest Airlines announced it will cease operations at San Francisco, effective 5 March. Southwest says it will shift the majority of its 14 daily flights to area airports Oakland, San Jose and Sacramento, with Orange County, Salt Lake City...

Robust traffic offers UScomfort.(Brief Article)
February 1, 2001... North America saw strong growth in 2000, but restructuring and recession loom, writes Mark Pilling North America's year-end returns are significant for at least one key reason. For the first time a once-famous name will not be among them....

China merger takes shape.(China consolidates airline industry)(Brief Article)
February 1, 2001... Chinese regulatory authorities have unveiled an unofficial draft for sweeping consolidation of the country's carriers that will see Air China, China Eastern Airlines and China Southern Airlines taking over seven other state-controlled airlines....

Indonesia approves more start-ups.(new airlines)(Brief Article)
February 1, 2001... Indonesia has issued three more licences to planned start-up airlines allowing for scheduled services as it continues with efforts to expand domestic competition. The three newly licensed companies are part of a group of 15 now approved...

Inchon : South Korea will soon unveil its new mega-hub. Despite initial problems with debt and accessibility, Inchon is confident that its location, size and Korean liberalisation leave it well placed to compete in the region.(Inchon International Airport Corp.)(Company Profile)(Statistical Data Included)
February 1, 2001... If bigger is better, then the backers of Seoul's new Inchon International Airport must be trying for best. Built on reclaimed land 65% the size of Manhattan and costing more than $5 billion, the South Korean gateway airport is due to open in...

ICAOfails to resolve noise impasse.(International Civil Aviation Organization's Committee on Aviation Environmental Protection)(Brief Article)
February 1, 2001... Stricter noise standards for new aircraft have emerged from the latest meeting of ICAO's Committee on Aviation Environmental Protection (CAEP) held in mid-January. However, the group was unable to reach agreement on a timetable to phase out the...

In brief.(Federal Express orders Airbus A380; British Airways modifies Concorde)(Brief Article)
February 1, 2001... A380 wins more orders Federal Express has become the launch US operator and the first customer for the freighter version of the Airbus A380. Virgin Atlantic's conversion of its expression of interest for six of the ultra-large aircraft...

Bruggisser falls, as Suter rises at SAir.(SAir Group, Philippe Bruggisser leaves position as chief executive)(Brief Article)(Company Profile)
February 1, 2001... Philippe Bruggisser has left his position as chief executive of the SAirGroup, with Crossair president Moritz Suter taking over the group's airline division Analysts are asking whether this hastens the day when SAir teams up with a major...

The merger puzzle: American Airlines' recent announcement that it would purchase the holdings of ailing Trans World Airways and work with United Airlines to divide large portions of US Airways between them has thrown the industry into a frenzy.
February 1, 2001... Mere weeks ago, TWA's fate was on no- one's radar screen. A buy-out seemed the carrier's only hope for survival in any form, but few believed a buyer would emerge. Now, TWA finds itself at centre stage. Viewed as the lynchpin to wholesale...

Special report.
February 1, 2001... This special report starts with a look at the new packaged solutions being pioneered by leasing giant GECAS, while innovation is the watchword in finance markets too. A review follows of consolidation in the operating lease sector, together...

Winds.(U.S. economic slowdown and the airlines)(Statistical Data Included)
February 1, 2001... The USeconomic boom finally looks likely to falter, but this time around slowdown may not mean disaster for the world's airlinesNot for the first time, the New Year starts with all eyes trained nervously on the US economy. And although it has...

TACA's.(Brief Article)
February 1, 2001... The drive for growth and some underlying political tensions within Central America could test Federico Bloch as he continues Grupo TACA's unique approach to integrationWhen Federico Bloch first went to work for TACA International Airlines in...

Revisiting: As traditional tax-leveraged lease markets learn to live with more restrictive tax regulations in Japan and Germany, airlines are increasingly looking toward new structures in the capital markets as well as traditional export credit finance.
February 1, 2001... If one factor above others has dominated the headlines in aircraft financing over the past couple of years, it is the decline of the cross-border tax-lease market. The tax-leveraged lease had helped to fund a major slice of aircraft deals over...

Gamble : A stone's throw from Hong Kong, Macau has built itself a shining new airport. While operating at a profit, positive returns are no sure bet for investors.(Statistical Data Included)
February 1, 2001... Macau is no stranger to a gamble and that is exactly what the former Portuguese colony took with the opening of its first ever airport five years ago. So far, the going has not been easy and there is still no guarantee that the bet will pay...

An active: The operating lease market has been highly active with a spell of merger and acquisition activity, as well as new initiatives to create full service players and to broaden out portfolios with regional jets and freighters.(Statistical Data Included)
February 1, 2001... There is little doubt that the operating lease sector has come a long way over the last decade or so.What once may have appeared as a niche market for carriers who were too small or poor for other forms of aircraft finance has today emerged...

Above and beyond.(GE Capital Aviation Services Inc.)(Statistical Data Included)
February 1, 2001... GE Capital Aviation Services (GECAS)may be the world's largest operating lessor, but president Henry Hubschman is keen to take the company beyond simple lease deals and towards packaged solutions For a man running an aircraft leasing...

Haneda opens door to charters...(Haneda airport to allow international charter flights)(Brief Article)
February 1, 2001... Japan's Transport Ministry is finalising new customs, immigration and quarantine procedures for Tokyo's domestic Haneda airport to allow for international charter flights. For years, studies have looked at opening up Haneda to ease congestion...

MAS passes back into government hands.(Malaysian Airline System)(Brief Article)(Statistical Data Included)
February 1, 2001... The much-anticipated sale by aviation holding company Naluri of its 29% of Malaysia Airlines (MAS) has finally been agreed, with the Malaysian government pledging to buy back the stake for 1.792 billion ringgit ($472 million). Announced at...

...as battle shapes up over Narita.(Narita International Airport key in U.S., Japan talk)(Brief Article)
February 1, 2001... Judging from the first round, access to Tokyo's Narita International airport will dominate discussions when Japanese and US officials meet in Washington DC on 21 February for their second round of new bilateral talks. As agreed in 1998,...

Fleets.
February 1, 2001... Airbus nets first EVA orders Taiwan's EVA Airways is to purchase two Airbus A330-200s and lease six more in a move that will see it adding its first Airbus aircraft to its all-Boeing fleet. The first A330 is scheduled for delivery in March...

Routes.
February 1, 2001... Low-cost Air Japan flies All Nippon Airways launched a new subsidiary carrier on 1 January named Air Japan. The new airline has a lower cost base than others in the group and is currently operating between Osaka and Seoul, Korea. It...

Second Sydney airport shelved.(Sydney, Australia)(Brief Article)
February 1, 2001... Australia's federal government has shelved Badgerys Creek as a second Sydney airport.EThe government plans instead to sell Sydney's main Kingsford Smith airport later this year. Sydney was excluded from the 1997-98 privatisation of several...

New man on the Hill.(Norman Mineta, U.S. Department of Transportation)(Brief Article)
February 1, 2001... Incoming USTransportation Secretary Norman Mineta starts the job with a lot of goodwill and an impressive background. But he will be expected to show some hard results and bring strong leadership to bear on key areas such as air traffic delays,...

BA struggles to pass Go.(British Airways PLC seeking to sell subsidiary)(Brief Article)
February 1, 2001... Corporate financiers in London believe that British Airways may struggle to reach even the [pound]100 million-mark ($145 million) as it attempts to sell Go.BA says it never expected to achieve the [pound]300-[pound]400 million mentioned in...

JMC launches scheduled service.(to Malaga, Spain)(Brief Article)
February 1, 2001... UKcharter carrier JMC is launching scheduled services to take on low-fare competitors, starting with a daily London Gatwick-Malaga flight. Malaga is rapidly becoming the key battleground for UKlow fare and charter operators. easyJet and...

Malev privatisation shelved.(Brief Article)
February 1, 2001... Hungarian flag carrier Malev has failed to attract any bids for its proposed partial privatisation. The airline has now switched its attention to finding an alliance partner. Seven airlines expressed an interest in the 10% stake on offer,...

EC delivers Milan access verdict.(European Commission, air traffic distribution)(Brief Article)
February 1, 2001... Following European Commission (EC)approval of Italian proposals over access to Milan's Linate airport,Alitalia and other European carriers are hoping the dispute can now finally be resolved However, the fifth government decree in the...

In brief.(includes airline industry news)(Brief Article)
February 1, 2001... Iberia/Air Europa talks end Merger talks between Spanish flag carrier Iberia and domestic operator Air Europa have collapsed. The two airlines had been talking since November, but issues of management control, workforce integration and the...

Bravehearts line up for Olympic.(Greek Government seeks buyer for Olympic Airways S.A.)(Brief Article)(Statistical Data Included)
February 1, 2001... The Greek Government will view the companies that declared an interest for a stake in its ailing, some would say terminally ill flag carrier, with resignation.Following British Airways' decision last summer not to take up its option of a 20%...

Routes.
February 1, 2001... Buzz additions UK low-fare operator Buzz is launching a twice-daily service to Cologne in Germany; four-times-a-week services to Poitiers and La Rochelle in France; and a daily service to Gerona and Murcia (five-times-a-week) in Spain....

Ryanair set to launch European hub.(Ryanair Holdings PLC)(Brief Article)
February 1, 2001... Irish low-fares carrier Ryanair is set to choose a new continental European hub in February. Sinead Finn, Ryanair's sales director for Europe, told a press conference in Italy that the carrier was in talks with two continental airports. ...

Behind the: The airline alliances are tackling the complex task of aligning their information technology strategies. But how far should they go and what tools should they use?
February 1, 2001... Anyone looking for an insight into the depth of an airline alliance, could do a lot worse than examine its approach to IT strategy. While most carriers enter an alliance signed up to the concept of further ITintegration, just how far they are...

Redirecting.(freight forwarders)(Brief Article)
February 1, 2001... Are forwarders taking greater control of freighter capacity? The question is almost heresy in the air cargo world, where it is taken for granted thatforwarders are the non-asset based purchasers of the transport services thatairlines choose to...