Lauda's stormy passage
Article Abstract:
Former race car driver Nikki Lauda's skill as a businessman is being put to the test as various factors threaten the survival of his Austria-based airline. Lauda Air reported a net loss of 11.1 million Austrian schillings for 1990-1991. Some of Lauda Air's problems are due to the fierce competition coming from the state-controlled carrier Austria Airlines and from other large airlines that can afford to reduce fares to attract passengers. The airline's performance was also undermined by such events as the 1991 crash of a Lauda Boeing 767 in Thailand, which caused a significant reduction in passenger numbers on that route, and the Persian Gulf war which resulted in soaring oil prices. Analysts say that Lauda Air's best hope for survival is to team up with a large international carrier. Nikki Lauda, remains unfazed by the many challenges facing his firm and is actually looking forward to increased profit in 1992.
Publication Name: International Management
Subject: Business, international
ISSN: 0020-7888
Year: 1992
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Carve-up at Aeroflot
Article Abstract:
Aeroflot has been disbanded into several independent divisions. After the 1991 coup, the state airline's international commercial division, the MKU, merged with the Moscow fleet at the Sheremetyevo airport to form PKO Aeroflot. Later known as Aeroflot-RIA, the company is the legal inheritor of the old airline's international landing and servicing agreements. Aeroflot-RIA has promised an improved range and standard of service. The former Aeroflot's divisions in other republics have been nationalized, but these need to route their international flights through Aeroflot-RIA. This monopoly is likely to persist until convertibility of currency is resolved. Nevertheless, some other independent airlines have sprung up to provide inter-state services. One of these is the Moscow-based Korsar, a chartering outfit operating from Vnukovo airport.
Publication Name: International Management
Subject: Business, international
ISSN: 0020-7888
Year: 1992
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When sell-offs took off
Article Abstract:
The privatization of British Airways PLC is frequently cited as an example of how poorly-managed state-owned companies can be transformed into profitable privately-run enterprises. The airline, which was technically insolvent in 1982, was successfully privatized in 1987. However, an examination of the airline's experience shows that British Airways' success was as much attributable to skillful management and a booming travel market as to a change in its ownership. Indeed, a key factor in British Airways' return to profitability was the British government's readiness to allow top management to run the airline without interference. The mandated privatization merely added a deep sense of urgency to the airline's restructuring.
Publication Name: International Management
Subject: Business, international
ISSN: 0020-7888
Year: 1991
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