Airline Business articles from September 2004

Airline Business archives from September 2004

LAB looks cross-border for growth.(Lloyd Aereo Boliviano)(Brief Article)
September 1, 2004... Now that Ernesto Asbun has resolved ownership and pension issues at Lloyd Aereo Boliviano (LAB), he plans to grow the airline by taking over route rights of grounded Ecuatoriana de Aviacion. A decade ago, Brazil's VASP owned Bolivia's LAB and...

In brief.(Airlines)(Brief Article)
September 1, 2004... Canadian refund policy A Canadian passenger who cancels a flight may be entitled to a refund of taxes and surcharges even on a non-refundable ticket, according to Canada's transport agency. It reached this conclusion on a complaint against...

Chicago traffic cuts forced through.(Brief Article)
September 1, 2004... US airlines have bowed to federal pressure to lower their Chicago O'Hare airport peak-hour arrivals as a temporary step to reduce congestion at the nation's most-delayed hub. The new arrival rates - 88 an hour between 07:00 and 20:00 local...

Website feud could spread.(Brief Article)
September 1, 2004... A major hotel group has pulled its inventory of rooms from two aggressive third-party websites, in a move that foreshadows a possible conflict between airlines and internet distribution channels. InterContinental Hotels Group is to drop...

In brief.(Airlines)
September 1, 2004... Alaska cuts manager numbers Alaska Air Group, parent of Alaska Airlines, plans to cut about 9% of its management positions by spring 2005 to reduce costs. Reducing the payroll by 150 employees would save between $5 million and $10 million a...

In brief.
September 1, 2004... Independence keeps growing Independence Air, the low-cost, low-fares reincarnation of United Express carrier Atlantic Coast, grew to 32 destinations in its all-regional jet system by the end of its first full month of standalone operation...

All change for Peruvian carriers.(Brief Article)
September 1, 2004... Peru's domestic aviation industry has undergone major change as AeroContinente emerges from a 10-day grounding with new owners and a new name, while Lima ponders privatising its military-owned carrier TANS. AeroContinente, the leading...

Guangzhou opens for business.(Brief Article)
September 1, 2004... The New Baiyun international airport opened for business on 5 August, serving the southern Chinese city of Guangzhou and intended as a major hub in the booming Pearl River delta. The airport opened more than six months later than intended...

Chinese carriers bound for Europe.
September 1, 2004... Hainan Airlines has launched its first long-haul services, to the Hungarian capital Budapest, and is seeking US operating rights as part of its long-standing goal to become a major international player. Hainan Airlines, which is based at...

Origin struggles to find its niche.(Brief Article)
September 1, 2004... New Zealand's second carrier, Origin Pacific, faces hard decisions about what kind of airline it should be as it tries to resolve its future. Since April, when Qantas Airways dropped a codeshare deal on domestic New Zealand routes, Origin...

JetStar makes an impact.
September 1, 2004... Australians are debating how much a 22% drop in Virgin Blue's net profit for the June quarter is due to the influence of Qantas low-cost start-up, JetStar. Analysts generally blame JetStar, which launched in late May and already claims to...

Hard labour cost issues.
September 1, 2004... There have already been signs of how airline recovery is being accompanied by fresh wage demands. In reality, labour costs are still too high, writes Chris Tarry of CTAIRA. No sooner have the first tentative shoots of recovery begun to...

Price premium.
September 1, 2004... The competitive gap between network and low-cost carriers has shown a few early signs of narrowing of late, raising questions over the premium that full service can command and indeed of market convergence as budget airlines seek it out too ...

SAS routes Cimber to Copenhagen.(SAS Scandinavian Airlines)(Cimber Air)(Brief Article)
September 1, 2004... Cimber Air is to operate eight routes from Copenhagen on behalf of SAS Scandinavian Airlines, less than a year after SAS sold its minority stake in the Danish regional, citing strategic difficulties. Cimber will operate routes on a...

Aer Lingus to cut a third of staff.(Aer Lingus Group PLC)
September 1, 2004... Irish flag carrier Aer Lingus has unveiled a new business plan to carry it through to 2007, with a further drive on costs. The plan, which is designed to cement its turnaround, includes another 33%reduction in the workforce. Chief...

In brief.(Airlines)
September 1, 2004... Limited options for Alitalia Alitalia chief executive Giancarlo Cimoli has warned unions that the financially struggling carrier has little room for manoeuvre over its restructuring plans, which include job losses and outsourcing. Falling...

Integrated.(Airlines)
September 1, 2004... strategy Europe's leisure travel giants are having to adapt to a rapidly changing marketplace The problems that beset the European package holiday industry are all familiar enough:global recession, the threat of terrorism; SARS and...

Team.
September 1, 2004... spirit Alliances have again been making their presence felt over the last year or so with a spate of new members, a couple of defections and talk of new projects ahead Although they may have taken something of a back seat during the...

Caribbean push for USopen skies.(Brief Article)
September 1, 2004... Caribbean countries have taken a major step towards a multilateral accord with the US as a group of states under the Caribbean Community and Common Market (Caricom) umbrella close on a new open skies deal. The states discussed the accord, the...

Paper airline may take off in Argentina.
September 1, 2004... Argentina could knock its airline industry out of kilter with the March sale of government-owned Lafsa, creating a third carrier to stand alongside Aerolineas Argentinas and Southern Winds. Lafsa, which has a workforce but no aircraft, was...

Fuel price keeps climbing.
September 1, 2004... Airlines will need to adjust to an era of higher fuel prices, and work more on fuel efficiency, even if tariffs descend from their current record levels, according to leading industry organisations. With prices approaching $50 a barrel in...

Barrot gets transport post.
September 1, 2004... The post of European transport commissioner has gone to Frenchman Jacques Barrot, after a frantic round of political wheeler dealing as the new European Commission (EC)takes shape. Barrot is a close ally of French president Jacques Chirac,...

USAirways at the edge.
September 1, 2004... A return to bankruptcy is a distinct possibility for USAirways as some unions resist further cost-cutting measures and the main financier rules out further investment. This is a cruel month for US Airways. A key union, representing...

Shanghai Airlines buys China United.(China United Airlines)
September 1, 2004... The final elements of China's long-running airline consolidation effort are in place, with Shanghai Airlines agreeing to acquire Beijing-based China United Airlines. Observers see it as a strategic move aimed at giving Shanghai Airlines a...

Virgin aims to double size.(Virgin Atlantic Airways Ltd.)
September 1, 2004... As it places another major order with Airbus, Virgin Atlantic Airways is talking about doubling in size and taking on British Airways across more of its most profitable long-haul markets. Announcing an order for 13 more Airbus A340-600s and...

United targets pensions.
September 1, 2004... As it struggle to emerge from bankruptcy, United Airlines has brought to centre stage the most burdensome legacy affecting the major US airlines: their pensions liabilities. United has told the bankruptcy court that has overseen its...

Berlin airport to go ahead.
September 1, 2004... After years of delay and wrangling, German authorities have finally given the all clear for a new airport to be constructed in Berlin at the site of the existing Schonefeld airfield. The new airport will open in late 2010. The project to...

Centrair gives Japan room to grow.
September 1, 2004... Japan's two main airlines are gearing up for the opening of the Central Japan international airport (Centrair) which they expect will provide greater opportunities for international expansion in a market where growth has been constrained for...

Cost convergence.
September 1, 2004... As low-fare airlines struggle to absorb rising labour costs, the deep cuts made by the major US carriers is making them increasingly competitive If the quarter, and indeed the half, ended on a gloomy note for the US majors, it has hardly...

Alliances.(Brief Article)
September 1, 2004... The global alliances have been back in the headlines over the past year, adding new members and looking to plug key network gaps. Across the whole industry, alliance activity shows no sign of slowing, as evidenced by the number of new links...

Allied.
September 1, 2004... survival Success in Latin America means finding a way around the region's obstacles to growth by reaching out across borders The facts speak for themselves. Half of Latin America's airlines are technically bankrupt, around 70% are...

Siberian.
September 1, 2004... tiger Far from facing extinction, Sibir Airlines is on the prowl, looking to maintain domestic supremacy and deliver a powerful challenge to rival Aeroflot The decision by Sibir Airlines to acquire Sukhoi's new Russian Regional Jet...

A grand.
September 1, 2004... plan All Nippon Airways president and chief executive Yoji Ohashi feels good about his carrier's restructuring strategy, with its return to profitability and dividend payments - but he still faces a threat from the enlarged JALGroup ...

Insurance liability.
September 1, 2004... European Union member states may become de facto insurers as a result of new rules due to come into force next year, writes Anthony Fitzsimmons, partner at Ince & Co law firm in London. From May next year, all air carriers and aircraft...

Executive appointments.
September 1, 2004... Swiss Swiss modifies roles in executive revamp As it restructures every aspect of its business in its struggle to return to profitability, Swiss is bringing in a leaner management structure too. The management board will be made...