Pinnacle Airlines announced (24-Jan-2013) plans to move its Memphis headquarters to Minnesota as part of its restructuring plan. CEO John Spanjers said, "We had the responsibility to explore every aspect of our business to find opportunities to reduce costs, including evaluating our property leases, to find the most economical options for Pinnacle. Our analysis covered everything from the available labour pool and operational alignment to economic incentives. Both Memphis and the State of Minnesota presented very strong cases. In the end, it was an economic decision." [more - original PR]
Pinnacle Airlines to move Memphis HQ to Minnesota
You may also be interested in the following articles...
Australia and New Zealand hit highs in 2016, but 2017 will lose a little lustre
Australia and New Zealand enter 2017 on a different level from 12 months previously. The biggest change, not just compared to 2016 but since the global financial crisis, is that Qantas is revelling in a successful turnaround. After the lows of 2011 and a domestic competitive bloodbath, the Qantas Group has seemingly become a solid and sustainable story, now looking forward to a new future marked by Boeing 787s, arriving later in 2017.
Air New Zealand has continued along its thoroughly profitable path, while Virgin Australia and its Tigerair Australia subsidiary have struggled to achieve profitability in the new environment – now with a more settled share registry and emerging strategy.
After a mineral boom that carried Australia through the difficult years of 2008-2010, the country’s GDP growth has since slipped to 1.8% in 3Q2016 calendar year, with an outlook for 3.0% for the full FY2017. By contrast, New Zealand’s Treasury expects GDP growth of 3.6% for 2016 and has forecast a 3.5% increase in 2017.
Vueling NEXT Part 2: new CEO to lead IAG's LCC in restructuring bid to achieve IAG targets
Vueling's new CEO, Javier Sanchez-Prieto, is leading a programme ('Vueling NEXT') to improve its profitability, both through revenue enhancement and cost efficiency gains. Among other aims this hopes to reduce Vueling's high levels of seasonality, to raise aircraft utilisation and to improve labour productivity. Given ambitious financial targets by IAG – action is needed.
Part 1 of CAPA's analysis of Vueling examined its capacity growth and profitability trends since its acquisition by IAG in 2013. Vueling's operating margin and return on invested capital are on a downward trend, hence the new initiative to reverse these trends.
This second part of CAPA's analysis considers the profit improvement programme. During this programme Vueling's fleet will remain broadly flat to 2018, before resuming growth thereafter. Focus markets for Vueling are domestic Spain and Spain-Europe. It has strengths in these markets but faces growing competition from its lower-cost rival Ryanair, which has also been raising its service quality – closing the gap to Vueling's more premium positioning on the LCC spectrum.