Ryanair closing Manchester routes

Good example on the power of the suppliers./customers. Airlines can be seen as suppliers or customers for Airports. It is interesting to note the fact that Ryannair was negotiating the airport taxes.

Ryanair closing Manchester routes

Ryanair is to switch or close nine of the 10 routes it currently operates from Manchester Airport, blaming the airport's refusal to lower its charges.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/8205445.stm

BA scraps the short-haul sandwich

Cost-cutting practices in company that does not compete on price.

BA scraps the short-haul sandwich

British Airways is to scrap all meals, except breakfast, on its short-haul flights in a bid to save £22m a year.
Passengers on flights after 10am, which last less than two-and-half hours, will only be served drinks and snacks. They will not have the option to buy food.


Read the whole article at: http://news.bbc.co.uk/1/hi/business/8174009.stm

Mobile phones take to the skies

Does this make sense? A low-frills, cost leader company to differentiate in such as a great scale that even the likes of BA do not... Interesting to note how the company uses customer feedback (you can read and compare with this commentary on the US automotive industry http://www.businessweek.com/magazine/content/09_06/b4118032619547.htm?chan=innovation_auto+design_top+stories)

By Colette Hume BBC News

Picture the scene - you're on the plane on your way to a dream holiday destination. Take-off was smooth and the drinks trolley is on its way down the aisle.
The mood is complete - then a mobile phone rings.
For some that sound spells heaven, for others hell, but from now on it's a reality for thousands of Ryanair passengers

Read the whole article at: http://news.bbc.co.uk/1/hi/uk/7900802.stm

Virgin Atlantic plans Gatwick bid

That's a good example of a strategic alliance in the form of a consurtium to bid for Gatwick. It is interesting how the potential synergies developed are described as a 'marriage made in Heaven'; they might have experienced marriages made in Hell in the past!

Virgin Atlantic plans Gatwick bid

Virgin Atlantic and Easyjet are planning a joint bid for Gatwick airport, which has been put up for sale by its owner, BAA.
Virgin is talking to a group of interested parties about a bid for the airport, valued by analysts at up to £2.5bn.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7728863.stm

Ryanair set for £8 flights to US

This is one of the few cases that the company will expand operations and businesses to overcome recession.


Ryanair set for £8 flights to US

Budget airline Ryanair is to offer flights to the US for eight pounds, by buying planes from struggling rivals.
The plan will be revealed when chief executive Michael O'Leary announces the firm's quarterly results on Monday.


Read the whole article: http://news.bbc.co.uk/1/hi/business/7705169.stm

BMI being taken over by Lufthansa

Here is a good example how one network level strategy (strategic alliance) has changed to another (M&A). The point of interest in this story is the fact that it is not a deliberate strategic option by Lufthansa but an emergent strategy.

BMI being taken over by Lufthansa

UK airline BMI is being taken over by Germany's Lufthansa.
Lufthansa is buying the 50% of firm owned by BMI chairman Sir Michael Bishop, who forced the purchase under a long-standing agreement.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7697261.stm

Ryanair to close base in Valencia

Considering that Ryanair is the 'supplier' for the Valencia Airport and/or the local Authorities; then this serves as a very good example of the 'suppliers' power.

Ryanair to close base in Valencia

Budget airline Ryanair is to close its base at Valencia in Spain with the loss of 70 weekly flights, it has announced.
The move will affect 750,000 passengers a year and 750 jobs in the region could be lost, according to the airline.

Read the whole article at: http://news.bbc.co.uk/1/hi/uk/7688509.stm

Tougher climate target unveiled

That's an interesting announcement. In theory, tougher climate targets have significant effects on UK business; in practice though, this target is very long term, hence until this target is 'operationalised' with shorter term targets, the effects will be so visible.

It is also useful to note that the aviation and shipping emissions are not included. Could this be interpreted that these industries are not ready for such radical measures? Is this an opportunity for any companies?

Tougher climate target unveiled

The government has committed the UK to cut greenhouse gas emissions by 80% by middle of this century.
Climate change and energy secretary Ed Miliband said the current 60% target would be replaced by a higher goal.

Read the whole article at: http://news.bbc.co.uk/1/hi/uk_politics/7673748.stm

BMI's no comment on merger rumour

Entry through a merger

BMI's no comment on merger rumour
UK airline BMI has declined to comment on newspaper speculation that it has been approached by Abu Dhabi carrier Etihad over a possible merger.
Etihad first went to BMI in the summer over a potential deal which values BMI at £600m, the Sunday Times reported.

Read the whole article: http://news.bbc.co.uk/1/hi/business/7615507.stm

GKN buys Airbus plant for £136m

Stronger links for the UK economy with Airbus

GKN buys Airbus plant for £136m
Part of the Airbus factory in south Gloucestershire is being sold to engineering company GKN for £136m.
The firm is to buy the manufacturing operation at the Filton site, which makes wing components for Airbus.

Read the whole article at: http://news.bbc.co.uk/1/hi/england/bristol/7616110.stm

Business travellers boost Virgin

Business travellers boost Virgin

Virgin Atlantic boss Steve Ridgway

Record numbers of business travellers have boosted profits at Virgin Atlantic despite sky-high fuel prices.

The airline, 51% owned by Sir Richard Branson, saw pre-tax profits hit £34.8m ($64m) in the 2007/2008 financial year, up from £6m the year before.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7581576.stm

BAA 'should sell three airports'

BAA 'should sell three airports'
BAA may have to sell three of its seven UK airports because of concerns about its market dominance, the Competition Commission has said.

The watchdog is recommending that the airport operator should have to sell two of its three airports in the South East - Heathrow, Gatwick and Stansted.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7571613.stm

BA seals alliance with American

BA seals alliance with American
British Airways says it has sealed an alliance with American Airlines that will allow the two carriers to fix fares, routes and schedules together.

The move will also include Spain's Iberia, which is merging with BA.

With aviation fuel prices near record levels and spending on air travel slowing, airlines are looking at ways to cut costs.

To read more:
http://news.bbc.co.uk/1/hi/business/7560790.stm