Flying in the face of convention

Article Abstract:

British Midland Airways Ltd's (BM) competitive thrust into the UK airline industry has made it the second largest airline in the country, breaking the long standing monopoly enjoyed by British Airways PLC. BM's managing director Austin Reid talks about the company's strategies in acquiring a significant share of the UK market. Its continuing progress now hangs on its lobbying efforts for Heathrow airport's expansion. As a young airline, it has been the victim of an unfair system of take-off and landing slot allocation at Heathrow. A historical basis of allocation gives older and larger airlines the edge over BM. The expansion of Heathrow is essential to BM's operations since its most profitable routes are tied to Heathrow. Options for Heathrow's expansion are presented in a semi-public report prepared by BM.

Airports, flying fields, & services, Laws, regulations and rules, Airports, British Midland Airways Ltd., Heathrow Airport, Reid, Austin

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Success in a nutshell

Article Abstract:

Southwest Airlines has successfully outperformed bigger competitors and is now the fifth largest airline in the US. It is also remarkable in that it has been generating profit for 25 of its 27 years in existence. In addition, the Dallas, TX-based carrier has been cited by Fortune magazine as the number one company to work for in the country. Southwest's tremendous success can be attributed to a number of factors, including its pricing structure, its 'work is fun' philosophy and its commitment to recruiting 'people people.' More importantly, the airline implements three highly successful business strategies: it flies only the low-maintenance Boeing 737s, operates a 'point-to-point' schedule rather than the more investment-intensive hub-and-spoke system, and prefers smaller airports.

Scheduled Passenger Air Transportation, Domestic Air Passenger Svc, Domestic airlines, Southwest Airlines Co., LUV

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The unfriendly skies

Article Abstract:

Air New Zealand (ANZ) is one of the world's most liquid and profitable airlines even though it operates under very difficult conditions. In 1995, only six years after its privatization, the company posted earnings of NZ$2.9 billion and a record-breaking profit of NZ$260 million. This despite the fact that New Zealand has a population of only 3.5 million and has an airline industry that is totally open to foreign competition. In addition, the country has come into conflict with Australia over the latter's unilateral withdrawal from a 1992 agreement that gave the two air rights to each other's territories. ANZ CFO Bob Nazarian attributes his company's success in overcoming these problems to its efforts in obtaining refinancing, improving productivity and reducing costs.

Scheduled Airlines, Scheduled Air Transportation, Air Transportation, Scheduled, And Air Courier Services, Corporations, New Zealand, Transportation, Company Profile, Air New Zealand Ltd., Corporations, New Zealand

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