Airline Business articles from March 2004

Airline Business archives from March 2004

Life after low cost.
March 1, 2004... The low-cost revolution has changed air transport forever. As the market matures, the range of low-cost products is increasing and the legacy network carriers are finding they can still justify a price premium if they offer value for money too...

Atlas Air finally enters bankruptcy.(Atlas Air Worldwide Holdings Inc.)
March 1, 2004... Troubled air cargo lessor Atlas Air Worldwide Holdings is confident of an early recovery after deals with its creditors finally enabled it to enter Chapter 11 bankruptcy protection on 30 January. The group includes its cargo divisions Atlas Air...

Caribbean open skies pact.(Association of Caribbean States members sign pact to liberalise aviation)(Brief Article)
March 1, 2004... Twenty-four of the 25 nations in the Caribbean basin are ready to a sign a multilateral pact to liberalise aviation. The signatories, all members of the Association of Caribbean States (ACS), include the 12 independent island nations of the...

More cuts to ease Chicago delays.(Chicago-O'Hare International Airport)(Brief Article)
March 1, 2004... American Airlines and United Airlines voluntarily agreed to trim their Chicago O'Hare International Airport schedules by about 5% during peak hours, with effect from March, adding to efforts by both carriers to cut congestion with de-peaking...

In brief.(LanPeru Airlines investigated)(Brief Article)
March 1, 2004... Rivals attack LanPeru AeroContinente and Taca Peru are asking Lima authorities to revoke LanPeru's licence on the grounds that it fails to meet caps on foreign ownership and control. They objected when LanPeru sought new Latin American...

In brief.(Brief Article)
March 1, 2004... Alaska makes it simple Alaska Airlines made a sweeping fare simplification and rationalisation that tightened the spread between high- and low-end fares, and also reduced first class and coach fares, eliminated maximum-stay rules and fare...

WestJet lays down Toronto gauntlet.(Brief Article)
March 1, 2004... In a bold move, WestJet is shifting its eastern Canada hub from Hamilton to Canada's biggest metropolis and busiest hub in Toronto. On 18 April, WestJet is dropping 85 weekly Hamilton flights and adding 78 at Toronto, including all flights to...

SIA's long hop to Los Angeles.(Singapore Airlines Ltd.)(Brief Article)
March 1, 2004... Singapore Airlines (SIA) has opened the world's longest non-stop commercial air route, between Singapore and Los Angeles. Daily services were launched on 3 February and the flights are operated with Airbus A340-500s seating 181 passengers in...

ANA focuses the brand as domestic competition rises.(All Nippon Airways Company Ltd.)(Brief Article)
March 1, 2004... All Nippon Airways (ANA) Group is doing away with two of its domestic brands as it seeks to strengthen the core flagship carrier, which must now compete with a post-merger Japan Airlines. The ANA Group is currently made up of All Nippon...

Air Pacific faces low-fare invasion.(Brief Article)
March 1, 2004... Air Pacific, Fiji's flag carrier, faces the imminent prospect of fare discounting in markets that are inelastic due to Fiji's hotel room shortage. Flight Centre, New Zealand's largest travel agency, is launching charters to Fiji in March...

JAL streamlines its domestic service.(Japan Airlines)(Brief Article)
March 1, 2004... Japan Airlines (JAL) is following the lead of airlines in other mature markets by revamping its domestic business class offering through the introduction of a new lower-priced product that comes with fewer amenities. "The streamlined, more...

ANZ faces domestic war.(Air New Zealand Ltd.)
March 1, 2004... Competition is coming to New Zealand's domestic skies in a big way, signalling the likely start of what Air New Zealand (ANZ) warned competition authorities could be a "war of attrition". As this struggle heats up, it has the potential to...

In brief.(Brief Article)
March 1, 2004... CALorders more A330s Taiwan's China Airlines has firmed up options on two Airbus A330-300s. The aircraft will be delivered in 2005 and like 12 A330-300s ordered earlier, these will be powered by General Electric CF6-80E1 engines. The first...

Thai AirAsia takes off.(Brief Article)
March 1, 2004... Thai AirAsia has launched operations out of Bangkok, becoming the latest low-fare airline to challenge the incumbent carriers in Asia. The new airline, which is jointly owned by fast-growing Malaysian low-cost carrier AirAsia and Thai...

EC aims for third country mandates.
March 1, 2004... The European Commission (EC) has stepped up its bid to become the dominant player in European external aviation relations by seeking a mandate to negotiate air service agreements on behalf of the European Union (EU) with neighbouring states to...

Move to block passenger rights fails.
March 1, 2004... A last-ditch attempt by airlines to persuade Europe's transport ministers to abandon controversial passenger rights regulations has ended in failure, but this is unlikely to be the end of the story. Europe's airlines had lobbied hard to...

BA expects to break even in Europe.(British Airways PLC)(Brief Article)
March 1, 2004... British Airways is hinting at a major turnaround at its loss-making short-haul operations and that they may achieve break even for the 2003-4 financial year. BA chief executive Rod Eddington told financial analysts in a conference call...

In brief.(Brief Article)
March 1, 2004... Bmibaby starts in Gatwick Low-fare carrier bmibaby is to open a base at London Gatwick airport with daily services to Cork and Prague from the end of April. The airline, which was formed by bmi in early 2002, has bases at Nottingham East...

In brief.(Brief Article)
March 1, 2004... Low-cost consolidation Italian low-cost carrier Volareweb and German budget operator Hapag-Lloyd Express are to form a commercial partnership. This will initially cover marketing and distribution, but could extend into other areas with...

SAS plans more restructuring as it fails to halt losses.(SAS Scandinavian Airlines)
March 1, 2004... SAS Scandinavian Airlines plans deeper cuts and further restructuring measures to arrest rising losses in a tough market. Despite cutting costs by SKr3.6 billion ($500 million) in 2003, the SAS Group saw its operating loss grow threefold to...

Heated.(global warming)(airline pollution)
March 1, 2004... debate The impact of aviation on global warming may be small, but it is attracting increased attention. So what should the industry's reaction be? Airlines are hardly looking for ways to add to their costs. So it is significant indeed...

CAEP agrees emissions reduction.(Committee on Aviation Environmental Protection )(Brief Article)
March 1, 2004... The sixth meeting of ICAO's Committee on Aviation Environmental Protection (CAEP 6) has recommended a 12% cut in NOx emissions below levels agreed in 1999 for aircraft engines. This standard would come into force from 2008. The proposal...

Aeroflot bid.(Aeroflot Russian International Airlines)(SkyTeam Alliance)(Brief Article)
March 1, 2004... Aeroflot has made a formal bid for membership of the SkyTeam Alliance. The Russian flag carrier has long indicated the AirFrance/Delta Air Lines-led alliance was its preferred choice, although it did explore the possible advantages of a tie-up...

United brands.(Brief Article)
March 1, 2004... United Airlines is moving to tie together its growing portfolio of operations under a new "reinvigorated" brand accompanied by a global media campaign. The new livery (above) will establish a consistent look across United mainline, United...

Playing by the rules .(Ryanair Holdings PLC)
March 1, 2004... the rules The European Commission's ruling on Ryanair's agreement with Charleroi airport has set clearer guidelines for airport-airline relationships - however much it has annoyed Ryanair Ryanair chief executive Michael O'Leary must...

On the mend.(U.S. airlines)
March 1, 2004... As expected, the USmajors emerged from last year showing signs of a slow progress toward recovery but it is not yet there The year-end numbers tell their own tale: the US majors did much better in 2003, if only because they had to, given...

Brand.
March 1, 2004... extensions Mainline carriers are offering low fares through a variety of different branding channels With United's Ted making its debut in Denver in February; Qantas set to bring Jetstar to market in May; and Singapore Airlines...

PIA reveals long-haul ambitions.(Pakistan International Airlines Corp.)(Brief Article)
March 1, 2004... Pakistan International Airlines (PIA) is looking to expand its long-haul network, while also studying the possibility of replacing its Boeing 737-300 narrowbodies with turboprops. The carrier plans to start its first codeshares this year, with...

Mexicans change partners.
March 1, 2004... The global alliances are watching as Aeromexico and Mexicana take new partners in the shape of Continental and American Airlines respectively. From March, Aeromexico and Continental started codesharing on US-Mexico routes, with reciprocal...

US majors raise pressure on feeders.(airlines)
March 1, 2004... Push has come to a sharp-elbowed shove as major airlines flex their muscles to wring costs out of their regional airline feeders. As it is usually the majors that provide the aircraft and set the routes and schedules for their regional...

Dedicated services start to fill niches.(Premium Airways)
March 1, 2004... Two experiments in market segmentation are gearing up in France, while another in the UK is trying to raise the cash to begin operating. In late January, Air France launched a service specifically to connect Paris with destinations that are...

Delta raises labour stakes.(Delta Air Lines Inc)
March 1, 2004... Delta Air Lines is taking a more aggressive stance on lowering labour costs while cutting others by selling aircraft and slowing the expansion of its low-fare Song unit. Delta is now in the front rank trenches of the long-running battle by...

Wizz leads eastern low-cost explosion.(Wizz Air)
March 1, 2004... Eastern Europe will witness a surge in low-cost airline activity from May as eight states in the region join the European Union. There are already five eastern European low-cost carriers operating or about to start flying in the summer...

The race is on to win Chinese rights.(airlines)
March 1, 2004... More countries are queuing up for talks with Chinese authorities aimed at securing additional operating rights for their airlines, amid promises from China of a more liberal air services regime. Traditionally protectionist China has been...

Value proposition.
March 1, 2004... Online travel is a real success for the airlines but care is needed to ensure it continues to deliver It is hardly an understatement to say that online travel distribution has changed the face of the industry. In part, this is due to the...

Wherenext for the GDS?(global distribution systems )(airline ticketing)
March 1, 2004... next for the GDS? In a world where none of the old assumptions about booking behaviour seem to apply, the global distribution systems are seeking new strategies to ensure they remain relevant Conventional wisdom has it that the global...

Sunset for GDS rules.(global distribution systems )
March 1, 2004... The last of the US Department of Transportation (DoT) rules on global distribution systems end later this year, but their sunset may be bright news for the distributors. Dismantling two decades of regulation, the bulk of the rules were...

Special report.(Brief Article)
March 1, 2004... Marketing Our first ever Special Report dedicated to airline marketing is inevitably dominated by the changes being wrought by the whirlwind arrival of low-cost carriers and internet sales. Their influence is helping to reshape industry...

Starting to pick up.
March 1, 2004... While the traffic figures for 2003 were nothing to write home about, there were clear signs towards the end of the year of better times ahead, and the recovery from the SARS crisis shows the industry can bounce back from sudden shocks. The...

Resisting the growth temptation.(Column)
March 1, 2004... Last year ended with traffic finally showing signs of firmer growth, but the pressure on fares has not disappeared and so neither should the restraint of capacity, writes Chris Tarry of CTAIRA. Over the last few months, we have observed how...

Reworking.
March 1, 2004... the model Low-fare carriers in both North America and Europe are adopting a wider variety of service options to ensure their product stands out from the crowd According to airline folk wisdom, the low-cost carriers have all based...

Executive appointments.(Airlines)(Brief Article)
March 1, 2004... JetBLue Harvey returns to JetBlue JetBlue Airways has recruited its former financial specialist John Harvey as vice-president corporate finance and treasurer. Harvey rejoins jetBlue after serving as senior vice-president at...

A new.
March 1, 2004... vision Under chief executive Willie Walsh, Aer Lingus has taken a long, hard look at its business model and re-emerged with a highly profitable low-fares operation It has been a remarkable turnaround by any reckoning. Only a couple of...

Feedback.
March 1, 2004... The cost of 11 September How much did the attacks of 11 September 2001 really cost the USA? Dr Bill Swan, Boeing Marketing's chief economist, has been doing his best to find out, and concludes that the price is huge both in terms of...