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February 16, 2007
It is time for the annual rumor joining BA with AA
Analysis of: Premarket Movers - American Takeout? | www.forbes.com
Author: GLG Expert Contributor
Analysis of: Premarket Movers - American Takeout? | www.forbes.com
Author: GLG Expert Contributor
• Rumors indicate a buyout group led by Goldman Sachs and British Airways will go after American Airlines• These types of rumors have surfaced before - to no avail. The carriers already benefit from oneworld alliance partnership - a takeover or additional equity investment would not...
February 15, 2007
More Chinese Visas Will Produce More Chinese Flights for U.S. Carriers
Analysis of: U.S. Seeks More China Flights | www.thestreet.com
Author: GLG Expert Contributor
Analysis of: U.S. Seeks More China Flights | www.thestreet.com
Author: GLG Expert Contributor
Absent any concession from the U.S. negotiators, China is unlikely to expand the number of U.S. carrier flights to China any faster than the currently agreed additional daily flight for each of the next three years.While the market between the U.S. and China remains weighted towards American citizens...
February 15, 2007
A Design Center with Factory Options
Analysis of: High Design:Boeing Lets Airlines Browse | online.wsj.com
Author: GLG Expert Contributor
Analysis of: High Design:Boeing Lets Airlines Browse | online.wsj.com
Author: GLG Expert Contributor
• Boeing's New Showroom is Changing Airline Interior Purchasing Process• The Key: Boeing is Limiting Options and Reducing Costs• Airbus and Boeing Continue to Leapfrog Each Other in their Marketing Sophistication
February 14, 2007
Airbus' Failure and Boeing's Success with Project Life Cycle Management Software
Analysis of: The Promise and Peril of PLM | www.baselinemag.com
Author: GLG Expert Contributor
Analysis of: The Promise and Peril of PLM | www.baselinemag.com
Author: GLG Expert Contributor
• The use of Project Life Cycle Management Software has high risk and high reward• Airbus experienced the high risk and lost more than $3 billion due to software incompatabilities on the A380 program• Boeing's highly regimented approach, including strict software version control, is...
February 12, 2007
Loss of Simplicity May Undermine Results
Analysis of: World's first low-cost airline alliance | www.smh.com.au
Author: GLG Expert Contributor
Analysis of: World's first low-cost airline alliance | www.smh.com.au
Author: GLG Expert Contributor
JetBlue's alliance with Aer Lingus certainly broadens the reach of both carriers, but will also place pressure on their low cost business models.Similar combinations are certain to follow and will place additional pressure on the same yields for economy class travellers that many network carriers had...
February 12, 2007
Big Brother Will be Watching You!
Analysis of: The tiny airline spy that spots bombers in the blink of an eye | www.thisislondon.co.uk
Author: GLG Expert Contributor
Analysis of: The tiny airline spy that spots bombers in the blink of an eye | www.thisislondon.co.uk
Author: GLG Expert Contributor
• Where does technology to find terrorists and invasion of privacy begin?• Will this technology also uncover drug smugglers, and people trying to bring in a bit more cash or merchandise than declared on their customs forms?• The good news is that it is too expensive to retrofit, and...
February 9, 2007
New Competition for Legacy Carriers
Analysis of: World's first low-cost airline alliance | www.smh.com.au
Author: GLG Expert Contributor
Analysis of: World's first low-cost airline alliance | www.smh.com.au
Author: GLG Expert Contributor
• The alliance of JetBlue and Aer Lingus provides low cost connections and interline ticketing and baggage service to expand markets for each carriers customers• Rather than mask relationships with code-sharing flight numbers, this alliance refreshingly identifies each carrier, who maintain...
February 9, 2007
Consolidation on Hold - For Now
Analysis of: US Airways CEO: Won't Pursue Northwest | www.nytimes.com
Author: GLG Expert Contributor
Analysis of: US Airways CEO: Won't Pursue Northwest | www.nytimes.com
Author: GLG Expert Contributor
USAirways was rebuffed in its hostile takeover of Delta, and does not plan to pursue Northwest.While Continental and United have been in discussions, the pressure for consolidation and "critical mass" has diminishedWhile Doug Parker's comments were qualified if some other carrier were to pursue Northwest,...
February 7, 2007
Airbus Needs A380 Sales
Analysis of: Airbus Expects to Sell 20 More A380s | www.chron.com
Author: GLG Expert Contributor
Analysis of: Airbus Expects to Sell 20 More A380s | www.chron.com
Author: GLG Expert Contributor
• The beleagured A380 program order book has been stagnant for the last two years• With the first aircraft scheduled to enter service late this year, orders would normally pick-up• Airbus now needs to sell 450 A380s to break even, rather than 250• 20 orders from India would help...
February 6, 2007
Labor may Limit Airbus Financial Recovery in Power 8 Program
Analysis of: Airbus Germany Workers Warn Against Cutbacks | online.wsj.com
Author: GLG Expert Contributor
Analysis of: Airbus Germany Workers Warn Against Cutbacks | online.wsj.com
Author: GLG Expert Contributor
• Airbus has targeted 5 billion euro savings over the next 5 years in its Power 8 restructuring program• This will likely require job cuts, and consolidation of assembly and component manufacturing facilities• Labor Unions could throw a wrench in the works with work stoppages and protests...
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