New Airline Business Models Channel
Featured Articles
Revenue Window of Opportunity
By Brian StrausAirlines that aren't selling ancillary products on their websites are missing their chance at a big payout
Springing Into Success
By Katie CantleChina's most successful LCC, Spring Airlines, models itself after Southwest Airlines.
More Than A Seat
By Michele McDonaldGlobal distribution systems embrace the merchandising model to help airlines differentiate their products.
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White Papers & Speeches
- Delta's Operation Clockwork: Transforming the Fundamentals of an Airline
A decade-long commoditization trend has firmly established the operating cost structure as the real battlefield for competitive advantage. In the end, everyone will be striving for the same objective, that is, to create the lowest cost business model that will achieve the highest efficiency while growing revenues. Optimizing network design is no longer sufficient; survival in todays airline industry literally depends on excellence in network design and consistent rigor in day-to-day execution. - How to Reach New Heights of Success
Kaye Shackford - a 30 year aviation veteran and author of the book Charting A Wiser Course: How Aviation Can Address the Human Side of Change - led one of the education sessions at the recent Women in Aviation International Conference. She advised the audience members to achieve multi-dimensional career success by giving themselves permission to do what they love to do and by aligning their own objectives and behaviors with their organization's strategic objectives. And then she showed them how to do so. Air Transport World thinks this message rings true for both men and women in aviation. - Changing Airline Culture
Addressing the Behavioral Side of Change, by Joseph E. Shackford - More...
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Ryanair extends deadline as nearly all EI shareholders ignore offer
Wednesday January 7, 2009Ryanair extended to Feb. 13 the deadline for Aer Lingus shareholders to accept its takeover offer while confirming that on the initial closing date of Jan. 5 it had received acceptances totaling just 29.83% of the shares in EI, including its own stake of 29.82%. [more]
Wednesday January 7, 2009Southwest Airlines said it has completed the private placement of $400 million in senior secured notes due to mature on Dec. 15, 2011. They will bear interest at 10.5% per year and are secured by an interest in 17 737-700s.
Southwest to save $1.4 billion on reduced fuel hedges
Tuesday January 6, 2009Southwest Airlines said it reduced its fuel hedge contracts to cover just around 10% of its estimated consumption each year through 2013. This year it expects to save approximately $1.4 billion compared to the guidance provided last summer as its economic fuel cost per gal. excluding taxes is expected to be around $1.80. Its current unhedged estimate is $1.60 per gal.
Tuesday January 6, 2009Ryanair called a recent amendment to Aer Lingus CEO Dermot Mannion's employee contract awarding him €2.8 million ($3.9 million) if he resigns following a takeover as "indefensible and unprecedented." Irish media revealed the clause over the weekend. In a letter to EI Chairman Colm Barrington, Ryanair CEO Michael O'Leary argued that the contract proves that management has no faith in Aer Lingus's future as an independent airline. Ryanair owns 29.8% of EI and last month launched a €748 million cash offer for its smaller competitor (ATWOnline, Aug. 27, 2008), which the EI board has urged shareholders to reject.
AirAsia scuttles Jetstar rumors as Qantas continues search
Wednesday December 24, 2008AirAsia dismissed rumors that it is discussing a potential merger with Qantas low-cost subsidiary Jetstar Airways, although the speculation remains an interesting development for the Australian carrier, whose discussions with British Airways collapsed last week (ATWOnline, Dec. 19). First reported in Malaysia's The Star, the rumor was called "pie in the sky" by AirAsia X CEO Azran Osman-Rani. "It's the first time I have heard about it. We are just busy on our own plans," he told The Sydney Morning Herald. AirAsia CEO Tony Fernandes told The Star that his company is "always talking and looking at ways to strengthen AirAsia into a global brand," while a QF spokesperson said, "We talk to airlines all the time about possible partnerships, relationships and cooperative agreements."
Qantas had an opportunity to do a deal with AirAsia in February 2004 when then-QF CEO Geoff Dixon met with Fernandes at the ATW Airline Industry Achievement Awards dinner in Singapore. Fernandes rebuffed Dixon the next day because "Qantas wanted control," according to sources close to the discussions. QF's deal with BA reportedly fell apart over similar issues, and it also has been talking with AirAsia's archrival Malaysia Airlines about some sort of partnership (ATWOnline, Dec. 17).
Wednesday December 24, 2008Southwest Airlines reached a sale and leaseback deal with an unnamed lessor for 10 737-700s. Under the agreement's first tranche closed yesterday, SWA sold five -700s for "approximately" $175 million and immediately leased them back for 12 years. It will make monthly payments of around $7.8 million during the first six months of the leases, with the amount scheduled to reset every six months based on the six-month LIBOR rate. In the first quarter of 2009, SWA will sell the five remaining -700s and lease them back for 16 years under "similar terms."
Wednesday December 24, 2008Datalex reached agreement with Aer Lingus to provide its Travel Distribution Platform offering "flexi" fare customer pricing and service options expected to enhance ancillary and merchandising business.
Tuesday December 23, 2008Southwest Airlines said yesterday that it submitted an application to the US Dept. of Transportation for Canadian route authority, which is required in order to implement its codeshare agreement with WestJet (ATWOnline, July 9). SWA said it hoped to receive approval next quarter and that it had no intention to fly to Canada with its own aircraft "at this time."
Webinars
Leaders Forum Series: Green Skies! Solutions for Climate Challenge
Date: Wednesday January 14, 2009
Time: 10:00 AM ET (Convert to your timezone)
Sponsored by:
TROUBLED TIMES: Putting the economic environment in perspective
Date: Thursday January 22, 2009
Time: 10:00 AM ET (Convert to your timezone)
Sponsored by:
Speakers include:
- Brian Pearce, Chief Economist, IATA
- Eric Leopold, Project Manager, Bar Coded Boarding Pass Simplifying the Business, IATA
- Tania Ladic, Vice President, Marketing Travel and Lodging, NCR Corporation
Lowering Aircraft Engine Emissions: The Global Requirement
Date: Thursday January 29, 2009
Time: 11:00 AM ET (Convert to your timezone)
Sponsored by:
Speakers include:
- Dr. Ian A. Waitz, Jerome C. Hunsaker Professor and Head of the Department of Aeronautics and Astronautics, MIT
- Dr. Meyer Benzakein, Ph.D., Wright Brothers Institute Professor Chair, Aerospace Engineering, Ohio State University
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