Airline Business articles from October 2003

Airline Business archives from October 2003

Backers emerge for ACA low-fare plan.
October 1, 2003... Atlantic Coast Airlines (ACA)is moving slowly towards its target of becoming an independent low-fare carrier, and its plan is gaining support in various quarters. While widespread scepticism about the plan continues, backers have emerged...

Carriers act to fill ACES gap.(Brief Article)
October 1, 2003... Four foreign routes and 16% of Colombia's domestic market are up for grabs after the sudden liquidation of ACES, which with Avianca and SAM made up Alianza Summa. AeroCivil plans to reallocate those routes shortly, with several local...

In brief.(Brief Article)
October 1, 2003... American adds to Latin lead American Airlines has gained new routes to Argentina and Brazil, widening the gap between its Latin services and those of Continental, Delta, and United Airlines. On 1 November, American will launch its first...

Bethune defiant as Continental plugs pensions gap.
October 1, 2003... Continental Airlines has highlighted the long-simmering issue of pension shortfalls. As the airline boosted its pension reserves, it sent a message to Congress, where lawmakers from US states that have been hit hard by airline, automotive and...

In brief.(Brief Article)
October 1, 2003... Canada should join talks The upcoming negotiations between the USA and European Union on aviation liberalisation, which are scheduled to begin this autumn, should include Canadian aviation interests, according to Canadian Airports Council...

Airports dismiss airline fee rhetoric.(Brief Article)
October 1, 2003... So consumed are US airports with the looming short-term budget crisis that they will not accept the recently begun airline assault on airports fees and hit back with more than a dismissive remark or two of their own. David Plavin, president of...

Southern Winds to fly for Argentina.(Brief Article)
October 1, 2003... Argentina's government has avoided spending the $20 million start-up capital required to launch Federal Airlines (LAFSA) by contracting Southern Winds to do it instead. Under an ingenious deal, the government will subsidise Southern Wind's...

Fuelling the cost line.
October 1, 2003... Fuel prices have been on the rise again this year and carriers are unlikely to be able to pass on the burden, cautions Chris Tarry of CTAIRA While there may be a hint of traffic recovery in the air, already scented by labour unions,...

India sees first low-cost airline.(Brief Article)
October 1, 2003... A new airline has been launched in India for the first time in years, with backers calling it the country's first low-cost carrier. Air Deccan, owned by India's largest charter operator Deccan Aviation, launched scheduled passenger...

Fiji dampens pacific market proposal.(Brief Article)
October 1, 2003... A proposed single aviation market between Pacific island nations and Australia and New Zealand has received a setback by Fiji's decision to opt out of it. The Pacific Islands Air Services Agreement (PIASA), drafted on behalf of governments...

In brief.(Brief Article)
October 1, 2003... Shanghai boosts 757 China's Shanghai Airlines has given a boost to Boeing's ailing 757 line with an order for five 757-200s. The order comprises three aircraft for delivery in the first half of next year and two for delivery in spring...

Vietnam puts expansion back on course.
October 1, 2003... With SARS firmly behind it, Vietnam Airlines has revived expansion plans and is aggressively adding new routes while looking to boost capacity. In September, new services were launched between Ho Chi Minh City and Fukuoka in Japan,...

Joint purchase doubts aired.(Brief Article)
October 1, 2003... Regional carriers affiliated to the SkyTeam alliance, led by Air France and Delta Air Lines, have poured cold water on the idea that they were looking into the possibility of joint aircraft purchasing. Senior regional airline executives said...

EU enlargement could add to costs.(Brief Article)
October 1, 2003... The addition next year of 10 new member states to the European Union'sexisting 15 threatens to exacerbate severe problems arising from the lack of legal uniformity across Europe, warns leading regional airline figure, Antonis Simigdalas, chief...

In brief.(Brief Article)
October 1, 2003... SAS buys into Estonian Air The SASGroup has purchased Maersk Air's 49% stake in flag-carrier Estonian Air, and may later acquire the 17% share in the airline held by Estonian investment bank Cresco. The purchase, which totalled SKr180...

In brief.
October 1, 2003... Austrian revamps image Austrian Airlines is the latest carrier to engage Landor Associates to update its brand image. The rejuvenated brand presence will include Austrian dropping the 'Airlines' tag, regional Tyrolean becoming Austrian...

ANZ/Qantas merger stalls.(Brief Article)
October 1, 2003... Australia's Competition and Consumer Commission (ACCC) has turned down a proposed alliance between Air New Zealand (ANZ) and Qantas (see Insight page 28). Although New Zealand's Commerce Commission has not made its final ruling on the...

In brief.(Brief Article)
October 1, 2003... China backs Galileo China has moved to back Galileo, the European Union's civil satellite navigation system, and the rival to the Pentagon-supported Global Positioning System (GPS). The decision, which is accompanied by an investment of...

Ready for.
October 1, 2003... the upturn The huge global maintenance market is struggling to find any reasons for optimism, but is seeing the first signs of an albeit fragile recovery. After a positive start to 2003, the war in Iraq and the SARS epidemic soon...

Flight.
October 1, 2003... support Regional governments and airports have gone to great lengths to attract new air service in Europe - but have they gone too far? Since November 2002, when Scotland first established its three-year [pounds sterling]6.8 million...

Travel.
October 1, 2003... troubles Tour operators are taking a close look at the way in which they carry out business after a tumultuous couple of years After decades of largely profitable growth, the last few years have been something of a reality check for...

Flexible.
October 1, 2003... fleets The current down cycle has exposed the need for carriers to find a new level of flexibility in managing fleets. Lessors and global alliances could both hold parts of the solution The present downturn has highlighted, like no...

Slow.
October 1, 2003... exchange The promised e-commerce revolution has been a long time coming. So is the dream of online collaboration on parts sourcing for airline maintenance still alive? From boom to bust in just three years? On one level the story of...

Latin American markets urged to re-regulate.(Brief Article)
October 1, 2003... Tough times for local airlines have prompted moves in Latin America's two largest markets to limit competition, regulate domestic fares and revise airfare bands for local routes. In Brazil, the national development bank, BNDES, which has...

Swiss buys into oneworld.(Brief Article)
October 1, 2003... Swiss has finally secured its long-sought link with British Airways, and therefore the oneworld alliance, agreeing to sell slots at London Heathrow and merge its frequent-flyer programme. After months of negotiations with both BA and Star...

Star Alliance examines joint jet deal.(Brief Article)
October 1, 2003... Air Canada, under the Canadian version of bankruptcy re-organisation, is leading the way for Star Alliance allies Austrian Airlines, Lufthansa and SAS Scandinavian Airlines in defining their requirements to jointly buy regional jets. Air...

Shandong courted by Air China as it seeks funding.(Brief Article)
October 1, 2003... The consolidation of China's crowded airline sector seems to be moving into a new phase, in which the big three - Air China, China Eastern and China Southern - will take stakes in smaller independent carriers that fear for their survival. ...

Spotlight on Ryanair deals.
October 1, 2003... The number of investigations under way into the support deals struck between Irish low-cost carrier Ryanair and secondary European airports has started to grow. In addition to investigations into the airline's deals at Belgium's Brussels...

Qantas announces cost-cutting plans.
October 1, 2003... Qantas has set a controversial goal to cut costs by A$1 billion ($663 million) over the next two years. Part of this restructuring could be the launch of a low-cost domestic carrier. Prompted by concerns over the cost of capital, growing...

ERA sees signs of recovery.(European Regions Airline Association)
October 1, 2003... Despite a tough first half, carriers attending the annual general meeting of the European Regions Airline Association (ERA) in Dublin were hopeful that an economic corner has been turned. The ERA says its airlines saw a return to growth in...

Air China signs with Star partner.
October 1, 2003... Having finalised its merger with China Southwest Airlines and China National Aviation Corporation (CNAC), Air China is looking to make its mark on the world stage by forging partnerships with more international carriers. The Chinese flag...

Speed of recovery catches Asian carriers by surprise.
October 1, 2003... Demand for air travel has continued to return far more quickly than expected following the containment of SARS, and major Asian carriers are now reporting a return to normal or near-normal pricing levels. Hong Kong's Cathay Pacific Airways,...

Majors see losses mount as the year progresses.
October 1, 2003... Europe's mainline carriers produced a grim set of financial results in the second quarter to June, with operating margins more than halved from last year's levels. Results suffered as the war in Iraq, SARS, the stronger euro, higher...

Airports and ATCface budget crisis.
October 1, 2003... USairport and air traffic control(ATC) officials fear that delays in agreeing federal budgets will cause problems for the smooth operation of security and ATC functions later this year. Security snarls at US airports will get worse before...

Maintaining.
October 1, 2003... boom The young but booming regional jet fleet remains on course for further robust expansion, raising the issue of who will come to dominate maintenance in this growing sector? Last year was a watershed for the regional jet aircraft...

Uncertain merger.
October 1, 2003... Qantas and Air new Zealand have failed to convince Australia's competition watchdog over their merger. So what happens next? Australia's rejection of their proposed equity alliance is forcing Qantas Airways and Air New Zealand (ANZ) to...

Back on.
October 1, 2003... holiday The US leisure market appears to be taking up some of the slack left by the collapse in business traffic, and the majors are in hot pursuit The summer season finally appears to have brought some welcome glimmers of hope for...

Special report.(Brief Article)
October 1, 2003... Maintenance The major maintenance players already have their growth strategies in place - now all they need is a market recovery. Airline outsourcing is due to drive new third-party business from both majors and regionals, while the last...

A fresh.
October 1, 2003... approach Like most maintenance providers, Air France Industries has had to seek new ways to win the work it needs to fill its hangars. Efforts with its alliance partners and, uniquely, technology transfer, are both part of the answer ...

Support network.
October 1, 2003... Europe's low-cost carriers have secured some mouthwatering support packages from small airports keen to join have their share of the low-cost revolution. But with a string of Ryanair deals now under competition scrutiny it may be time to firm...

Northern.
October 1, 2003... niche Finnair chief Keijo Suila knows his carrier's financial health and independence will depend on finding a sustainable competitive edge and keeping costs low If any European flag carrier has good cause to fear the drive towards...

Executive appointments.
October 1, 2003... CSA Czech Airlines Kula out at CSA The supervisory board of state-owned CSA Czech Airlines has sacked the airline's president, Miroslav Kula, replacing him with a former Defence Minister. The new president, Jaroslav Tvrdik, has no...

Feedback.
October 1, 2003... Charter for success Looking at industry restructuring and the dramatic changes to the business plans of traditional scheduled airlines, a vital question emerges over the future role of the charter airline, says Awni Shalash Many...