Airline Business articles from June 2001

Airline Business archives from June 2001

Judge dismisses American pricing case: The US Justice department's landmark predatory pricing suit against American Airlines and its parent AMR Corp will not get its day in court: a federal judge dismissed the two-year-old antitrust case.(Brief Article)
June 4, 2001... Hearings on the case, the first alleging predatory pricing by an airline since deregulation, had been set to start 22 May. Brought by the Clinton Administration trustbusters who brought the Microsoft case, it charged that American incurred...

Political deal results in further delays to Cintra sale.(privitisation of Aeromexico and Mexicana)(Brief Article)
June 4, 2001... The reprivatisation of Mexico's major airlines - Aeromexico and Mexicana - seemed settled, but is back in play as opposition politicians reopen the debate. Honouring a joint request from Mexico's Senate and House of Deputies, the Institute...

Labour.(Comair strike continues as company lays off workers)(Brief Article)
June 4, 2001... Comair strike continues The Comair strike by Air Line Pilots Association (ALPA) members approached the two-month mark as Comair parent Delta Air Lines announced two rounds of layoffs totalling 2,400 of its non-striking workers, took 37...

Southwest files complaint against Orbitz website.(Southwest Airlines)(Brief Article)
June 4, 2001... Southwest Airlines has filed a lawsuit in California against the Orbitz online ticket website, asking it to "cease and desist from its misleading, untrue and harmful representations" of Southwest's service. Southwest has long opposed Orbitz,...

Absent friends make headlines at RAA: The Regional Airline Association's (RAA) annual meeting in Tampa, Florida,was marked as much by absences as by those present.(Brief Article)
June 4, 2001... Hanging over the meeting was the shadow of absent Comair, the Delta Connection carrier that was the first and is the largest regional jet operator, but which has been grounded since late March after its Air Line Pilots Association chapter...

Reid reads riot act to striking pilots at Comair: Delta Air Lines re-arranged its top ranks by promoting its number two executive, Frederick Reid, to president and chief operating officer.(Brief Article)
June 4, 2001... Reid promptly moved to take command of the situation at Comair, its Delta Connection subsidiary, that has been grounded since late March by a long and increasingly bitter pilots strike. Reid, executive vice-president and chief marketing...

Roots Air fails as partner swaps sides: Air Canada's attempt to start a discount airline with Skyservice - the main owner of now-defunct Roots Air - faces opposition from its pilots, scepticism from Ottawa, and complaints from overseas.(Brief Article)
June 4, 2001... As the complaints mount, this next step in Canada's consolidation may prove to be the hardest to date. Roots Air's cameo appearance lasted only six weeks, the shortest of any airline in Canadian history.ESkyservice, which owns 80% of Roots...

Airlines are advised to keep their seatbelts fastened: The US majors have already begun to struggle with rising costs and weakening demand, while latest results from Europe hold some warnings. Chris Tarry analyst at Commerzbank asks where the market is likely to go from here?(Industry Overview)(Statistical Data Included)
June 4, 2001... Stock markets are often described as expectational. While history may be interesting, it is what comes next that really matters in terms of influencing share prices. (Or more accurately the expectation of what is is likely to come next) So...

USmajors hit the red ink: The major USairline groups posted their first quarterly loss for over five years. Jane Levere reports on the outlook from Wall Street.(Brief Article)(Statistical Data Included)(Industry Overview)
June 4, 2001... After all the warnings it came as little surprise that the first quarter spelled serious trouble for the major US carriers. They collectively posted the first quarterly net loss since emerging from the last recession over five years ago. And...

Sino-US tensions may hit Boeing.(Brief Article)
June 4, 2001... China is threatening to punish the USA over recent political disputes by favouring Airbus over Boeing when approving new purchases for the country's airlines. State-run media reported in May that Airbus "faces tremendous business...

Five sign up to Asia-Pacific multilateral agreement: Brunei, Chile, New Zealand, Singapore and the USA have signed the first multilateral air services agreement, promising to ease restrictions on flights between and beyond the member countries, as well as on airline ownership provisions.(Brief Article)
June 4, 2001... The agreement, promoted by the USA, was first initialled late last year during the Asia-Pacific Economic Co-operation (APEC) meeting in Brunei. However, details were only firmed up in Washing-ton in May after frantic negotiations on ownership...

Australasian failures leave a scramble to fill the gap : The collapse of domestic airlines in both New Zealand and Australia has sparked a war of acquisition among the major survivors.(Brief Article)
June 4, 2001... Qantas New Zealand has entered receivership, whileEAustralia's Impulse Airlines, under threat of collapse, has agreed to be taken over by Qantas Airways. The reasons for these failures differ, but their consequences intertwine. Qantas NZ...

China firms up airline merger plans: Action is finally being taken on long-planned consolidation of China's airlines, with the Civil Aviation Administration of China (CAAC) confirming the make-up of mergers among the 10 airlines under its direct control.(Brief Article)
June 4, 2001... The plan had been under consideration for nearly a year but was publicly revealed in April, allowing formal merger talks to begin. As expected, Air China will take over China Southwest Airlines and China National Aviation Corp (CNAC), which...

Prices cut to attract KLIA services.(Kuala Lumpur International Airport)(Brief Article)
June 4, 2001... Landing and parking charges will be waived for new passenger services at Kuala Lumpur International Airport (KLIA) under an incentive programme launched by the Malaysian Government to boost flights to the struggling airport. The incentives...

In brief.(airline news briefs)(Brief Article)
June 4, 2001... Domestic link in China Air China and Shanghai Airlines have agreed to codeshare on 21 domestic routes. The deal covers routes linking Beijing, Guangzhou and Shanghai with other major Chinese cities. Garuda restarts London service ...

Fleets.(includes, China Southern Airlines orders Boeing freighters)(Brief Article)
June 4, 2001... China Southern orders 747Fs China Southern Airlines has ordered two Boeing 747-400 freighters to boost its year-old dedicated cargo operation. The aircraft will be delivered in 2002. China Southern currently operates a single 747-400F on...

New chief aims to revive troubled PIA.(Ahmed Saeed to manage Pakistan International Airlines Corp.)(Brief Article)
June 4, 2001... New management has been installed at state-owned Pakistan International Airlines (PIA) following a damaging campaign of working to rule by pilots angry over stalled contract talks. Former banker Ahmed Saeed has replaced Sher Afghan Malek as...

Go-ahead for Sydney price hike.(Sydney Airports Corp. gets okay for price hike at Sydney - Kingsford Smit International Airport)(Brief Article)(Statistical Data Included)
June 4, 2001... Remaining uncertainty over the privatisation of Sydney's Kingsford Smith International Airport has been eased with regulatory authorities approving a 97% increase in aeronautical charges. Although operator Sydney Airports Corp had sought...

Fair game?: A recent series of failures around the world has once again highlighted the precarious nature of life as a small independent carrier. As the majors buy up or shut down their would-be challengers should competition authorities acttough?The answer is: not necessarily.(Brief Article)(Editorial)
June 4, 2001... These are apparently risky times to be an independent carrier. Witness the failure of Canada's Roots Air, Australia's Impulse Airlines and Qantas New Zealand. All were fighting against their local major network carrier and lost out. At the same...

Blue Fox plans all-business London-New York service.(Blue Fox Executive Airlines, Newlines Airways)(Brief Article)
June 4, 2001... Blue Fox, a new all-business start-up on the London-New York route, plans to launch next March, confident of heading off any economic downturn. However, it may also have to contend with another new start-up on the route if Newlines Airlines...

SAS to buy troubled Braathens.(Scandinavian Airlines System to acquire Braathens S.A.F.E. A/S)(Brief Article)
June 4, 2001... In a move which effectively completes the process of consolidation in the Scandinavian market in recent years, SAS has agreed to buy Norway's Braathens. Presuming that clearance is given to the deal from Oslo and Brussels, SASwill purchase...

Gibraltar issue hinders EU business.(dispute between United Kingdom and Spain over Gibraltar's airport could hamper discussions at European Union summit meeting)(Brief Article)
June 4, 2001... The race is on to reach a compromise in the dispute between Spain and the UKover Gibraltar Airport before the European Union's Gothenburg Council of Ministers summit on 15-16 June. Otherwise, key Brussels initiatives, including air traffic...

Iberia and BApursue closer links.(Iberia Lineas Aereas de Espana S.A., British Airways PLC)(Brief Article)
June 4, 2001... Oneworld alliance partners British Airways and Iberia have notified the European Union (EU) of plans to intensify their co-operation. The carriers, which have so far mainly concentrated on expanding code-sharing ties between the UK and Spain...

Labour strife hits Lufthansa: Lufthansa is sticking to its ambitious target of posting an operating profit for 2001 on a par with that of last year - provided it is able to reach an acceptable pay deal with its pilots.(Deutsche Lufthansa AG)(Brief Article)
June 4, 2001... However Lufthansa, which made an operating profit of c1 billion ($1.1 billion) last year and has been the most profitable European carrier for four years, has warned that uncertainties due to the economic slowdown in the US and the pilots...

[0] In brief.(includes, Abbey National acquires International Equipment Management)(Brief Article)
June 4, 2001... Austro-German deal in question The European Commission (EC) has warned Austrian Airlines that its co-operation agreement with Star Alliance partner Lufthansa on several routes between Austria and Germany threatens competition. It says it...

All together : The European aerospace industry that will present at this year's Paris air show has completely transformed itself over the last decade.
June 4, 2001... All industries undergo change, but in the aerospace sector the last five years have seen revolution replace evolution. A frenzy of merger activity has witnessed old rivals combining forces, familiar names being swept away and established...

Jumping the: Co-operation between the air and rail industries is set to grow as air space becomes an ever scarcer commodity.
June 4, 2001... Europe's airlines have had little cause to welcome their region's heavily-subsidised rail industry. However, after years of suspicion, co-operation appears to be breaking out. Even for the USA, where rail is far more marginal, there are some...

Getting a: Menzies Aviation Group has come from nowhere to emerge as the world's largest independent handler. Where does it go from here?(Brief Article)
June 4, 2001... The opening of Seoul's Incheon International Airport was a nail-biting time for a whole raft of people. Airport management at South Korea's new flagship hub wrestled with the headline grabbing problems of a semi-functioning baggage system and...

Atlantic: Sleeper seats and premium economy are just two of the trends, as the stakes continue to rise in the battle for high-fare passengers across the North Atlantic.(Statistical Data Included)
June 4, 2001... What is next in the fiercely contested race to attract high-yield business passengers on transatlantic flights? On-board showers? A fully equipped health club?Massage and beauty treatments? Access to e-mail and the Internet? Business centres...

Power broker : Strengthened by its partnership with Singapore Airlines, Virgin Atlantic under Steve Ridgway, remains every bit the independent player, determined to innovate wherever it can.
June 4, 2001... It was on the high seas, rather than in the air, that Steve Ridgway first got to know Sir Richard Branson. He did not know it then, but as co-pilots on two remarkable powerboat crossings of the Atlantic, Ridgway so impressed the Virgin boss...

Network announcement.
June 4, 2001... The Network route planning forum is heading for Florida, with Fort Lauderdale- Hollywood International Airport signed up as host for the next event in March 2002. Network was launched by Airline Business earlier this year with a highly...

A Latin lament: Latin America's airlines are becoming increasingly vocal in criticising the way that aviation is treated by their own national governments.(Statistical Data Included)
June 4, 2001... The woes of Latin America's airlines continue, but for the first time the carriers have openly acknowledged that their own governments are a big part of the problem.EDelegates at the ninth International Airline CEO Conference, a respected Latin...

Carriers toy with business jet options : Airline interest in executive jet services appears to be on the rise, with United Airlines the latest to outline plans.(Brief Article)
June 4, 2001... United has said that it will set up a separate standalone subsidiary to run the business jets on a fractional ownership basis. Chief executive James Goodwin notes that the the corporate aviation industry has seen "dramatic growth" over the past...

Hushkit breakthrough expected.(International Civil Aviation Organization mediates US/Europe conflict over aircraft noise regulation)(Brief Article)
June 4, 2001... A breakthrough in the protracted row between the USA and Europe over hushkitted aircraft could be imminent following several months of quiet mediation by International Civil Aviation Organisation (ICAO) President Assad Kotaite. A Brussels...

In brief.(two airline industry briefs)(Brief Article)(Statistical Data Included)
June 4, 2001... Boeing breezes into Windy City Boeing is to move its headquarters from its birthplace in Seattle to take up residence in Chicago. The world's largest aerospace group chose Chicago in a three-way contest which included Denver and Dallas....

Movement : Airport traffic grew at a dizzy rate last year, as is clear from analysis of this year's top 100 rankings, but the issues of congestion and economic downturn continue to loom.(Brief Article)(Statistical Data Included)
June 4, 2001... On the face of it, the world's airports could hardly have wished for better performance last year. Traffic levels hit new records and growth was back at the buoyant rates that it has not seen for years. However, there are clouds on the horizon....

Battle : As the majors gear up to renew their battle in Boston, the industry wonders if this type of market is one in which an outright victory is possible.(Delta, United, American fight for market share in Boston, Massachusetts)(Statistical Data Included)
June 4, 2001... Boston cherishes its history as the site of some of the Revolutionary War's most important skirmishes, notably including the Battle of Bunker Hill and the Boston Tea Party. Today, with a population of 5.8 million and 27.4 million air passengers...

Pressure: Airport capacity is high on the agenda as US congestion continues to squeeze. Peak-hour pricing is now among the solutions.(Statistical Data Included)
June 4, 2001... Airports, rather than airlines or air traffic control, are now the centre of the US flying public's focus and fixation with airline delays. The question of airport capacity and expansion is high on the list of answers in the big multiple-choice...

Regionals feel the squeeze.(commuter airlines face capacity pricing from airports)(Brief Article)
June 4, 2001... Nowhere was the Federal Aviation Administration's capacity benchmark study taken more seriously than in Tampa Bay, 800 miles from Washington and the site of the Regional Airline Association's annual general meeting. For the RAA, the report...

Growing pains.(airport expansion plans, listed by number of delays)(Brief Article)(Statistical Data Included)
June 4, 2001... The expansion plans - if any - of the dozen US airports that the FAA states suffered the most delays in 2000 are shown below ranked in order of delays. 1ENew York LaGuardia: No new runways are proposed to be added because of geographic...

Making : Large airline mergers loom on the horizon, yet past transactions have often not paid off. So what are the rules for making them work?(Brief Article)
June 4, 2001... The track record for merger and acquisition deals in the airline sector is hardly encouraging. The evidence says that even those deals that have gone through have yielded little or no real value. Take just one classic statistic. There have been...

Tailoring the right approach.(airline mergers and acquisitions)(Brief Article)
June 4, 2001... The complexity and high failure rate of airline mergers make it critical to choose the right approach to the entire undertaking. An air carrier can zero in on the appropriate approach by considering the following five key questions. ...

Turning : Air New Zealand's new chief executive knows his airline's future is linked to its Australian subsidiary.(Gary Toomey)(Brief Article)(Statistical Data Included)
June 4, 2001... It is a sign of the times that Gary Toomey, the new chief executive at Air New Zealand (ANZ), is not receiving visitors at the carrier's Auckland head office, but at the Sydney branch office of Ansett Airlines. Wholly owned Ansett is bigger...

Slot machines: Brussels' latest proposals on slot reform have caused consternation within the industry and the European Commission itself.(airport slots)
June 4, 2001... Few issues in the European aviation industry have proved as contentious or as long-running as that of slot reform. This is perhaps not surprising given the scarcity of capacity at most of the region's airports. New entrants regularly complain...

Airlines volunteer service charter: European airlines, airports and consumer groups have developed a voluntary code of practice which they hope will head off the threat of legislation from Brussels.(Brief Article)
June 4, 2001... The Association of European Airlines (AEA) has teamed with the European Regions Airline Association, the International Air Carriers Association (representing charter airlines), ACIEurope representing the region's airports, as well as consumer...