United Airlines announced (19-Nov-2013) plans to reduce costs, increase revenue and enhance profitability, launching initiatives to reduce costs by USD2 billion p/a. The plan includes reducing fuel consumption, increasing productivity, improving maintenance processes, and optimising distribution methods. United aims to increase pre-tax earnings over the next four years and begin allocating capital to shareholders by 2015. The carrier plans to increase ancillary revenue by approximately USD700 million, with a goal of generating more than USD3.5 billion by 2017. United also plans to leverage its trans-Pacific and trans-Atlantic joint ventures, expecting to improve its trans-Pacific network by redeploying widebody aircraft, and commencing a second daily Houston-Tokyo service, subject to government approval, and eliminating Seattle-Tokyo service. United will also eliminate Tokyo-Bangkok Boeing 747 service and downgauge Tokyo-Seoul services, reallocating the long-haul aircraft to more profitable routes. Using aircraft previously operated on intra-Asia routes, United is building its trans-Atlantic network with Houston-Munich service and new Washington Dulles-Madrid and Chicago-Edinburgh seasonal routes, subject to government approval. [more - original PR]
United Airlines outlines path for increasing long-term shareholder value
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The CAPA airline fleet quiz: 15 challenging questions. CAPA Summit Singapore 2/3 March
Test your knowledge of the global aircraft fleet with this CAPA Quiz. If you have access to the comprehensive CAPA Fleet Database, it should be a breeeeze.
Rank your result:
15/15 = Outstanding! – you should set up your very own aircraft leasing company.
13-14/15 = Excellent – your colleagues should say the word ‘wiki…’ in front of your first name around the office.
10-12/15 = Very good – someone should shout you several drinks at the next air finance gathering.
9 or below/15 = Time to brush up – you need to sign up for CAPA's Fleet Database immediately.
Visit http://capaevents.com/AFFS17 for the answers
American Airlines and Norwegian forge new partnerships for global reach: CAPA Americas Summit
American Airlines' recent pursuit of China Southern, and Norwegian’s partnership discussions with Ryanair, reflect the multiple changing dynamics that airlines operating across all business models must face as they maximise network connectivity to remain relevant and competitive. American had to drift outside oneworld to gain an important foothold in China, while Norwegian stresses that traditional airline partnership structures are not viable for its business model.
But despite American’s attention grabbing decision to take a small equity stake in China Southern, the agreement appears to be a one off event. American has no plans to join rival Delta in pursuing stakes in airlines around the world to attain network longevity. American's position is that its current and prospective joint venture agreements provide anchors in the most important global regions.
For Norwegian, a potential tie up with other low cost airlines allows the company to offer network breadth to the pool of passengers it intends to stimulate with new narrowbody service to the US, but without the frills and expense inherent in more complex airline partnerships.