:: Airline Service ::
30 Jul 2010
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29 Jul 2010
As delegates sign up for the Network LatAm conference, taking place in Costa Rica on 5-7 December, US low-cost carriers are looking to up their activity in this relatively untapped market, writes Brendan Sobie in Washington
The 2007 expansion of Spirit Airlines into Central America was groundbreaking in many respects. Not only did Spirit bring an entire region its first taste of low-cost service, but the carrier also boldly entered four Central American markets in a four-month window.
As Spirit chief marketing officer Barry Biffle recalls, launching service to Costa Rica, Guatemala, Honduras and Nicaragua in mid-2007, followed by Panama at the beginning of 2008, was simply "pragmatic" as the region was "starving" for low fares and represented the last white spot in Spirit's network.
"Basically we were left to fly to Central America," Biffle explains. He adds that it made sense to group the new routes because they were not large eno
29 Jul 2010
As consolidation continues among network carriers, history shows the success or failure of airline mergers hinges on the actual integration process, write Max Maruna and Peter Morrell of Cranfield University
Although 82% of married couples in the USA will reach their fifth wedding anniversary, only 52% will celebrate 15 years of marriage. Likewise, across all sectors, including the aviation industry, there is plenty of courting, but it is worth noting that more than half of consummated mergers fail to achieve their objectives.
Only a few tie-ups add value, while in some cases shareholder value is actually destroyed. In the USA there were 18 major airline mergers between deregulation of the domestic market in 1978 and July 2005. Of those, only the integration of Delta Air Lines and Western Airlines in 1987 was considered successful.
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29 Jul 2010
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27 Jul 2010