Monday 28 May 2018

Why airliners in Cuba and Iran crash so much


Full article on economist.com

When the dream of a smooth flight turns into the nightmare of an airliner crash, understanding what went wrong is sometimes straightforward. That was the case with a Malaysia Airlines flight which crashed in the summer of 2014, killing 298. This week Dutch and Australian investigators conclusively showed that it was shot down by a missile fired by Russian armed forces. But in other cases it is much harder to apportion blame. Such is the complexity of civil aviation that investigators spend years sifting through wreckage, recordings and data logs to work out what went wrong. Often technological, human and environmental faults are the main culprits. Yet another factor can be argued to have caused many of the world’s deadliest air disasters so far this year: economic sanctions...

Thursday 17 May 2018

Zimbabwe Airways: Flights of fancy


Full article on economist.com

Having one loss-making state-owned airline is bad enough. What, then, of a government that wants two?

Earlier this year Zimbabweans were startled to learn that the government had concluded a secret $70m deal to buy four second-hand Boeing jets from Malaysia to form the core of a new national airline, Zimbabwe Airways. This venture is supposed to compete with Air Zimbabwe, the flag carrier, which ran up huge debts thanks to poor management and ex-President Robert Mugabe’s habit of commandeering its planes so his wife could shop abroad...

Tuesday 1 May 2018

Interview: Jann Tamm, Nordica CEO


Full article in PDF format

When Estonian Air was ordered by the European Commission to pay back more than €85 million of illegal state aid in November 2015, its government owner was immediately resigned to the need to shut down the underperforming flag-carrier.

Had the Commission ruled differently, Tallink, Estonia’s main ferry operator, was waiting in the wings as an investor. But there was no prospect of privatising the airline once the EU had saddled it with such huge debts.

Fortunately for Estonian travellers, the government anticipated the ruling and had already set up a new flag-carrier by the time of the Commission’s decision. This contingency planning allowed the new company, Nordic Aviation Group, to launch operations on the very same day that Estonian Air was grounded – initially as a virtual airline under contract with Slovenia’s Adria Airways.

It has taken just two years for the new flag-carrier, operating as Nordica, to become an independent company with its own Air Operator’s Certificate (AOC), a fleet of 18 aircraft and a positive financial outlook...

Interview: Krešimir Kučko, Gulf Air CEO


Full article in PDF format

Ferrari’s Sebastian Vettel may have emerged victorious from the Bahrain Grand Prix in April, but for many spectators the star of the show was nowhere to be seen on the Formula One track.

Before the race even got under way, Gulf Air, Bahrain’s flag-carrier, had stolen the limelight with a flyover by its first Boeing 787-9 Dreamliner – a brand new aircraft type for the kingdom and an emblem of the ambitious plan being led by chief executive Krešimir Kučko, who was appointed last year with a mandate to revitalise the airline’s long-waning influence in the region...

Interview: Bilal Ekşi, Turkish Airlines CEO


Full article in PDF format

Bilal Ekşi knew he was in for a rough ride when he took on the role of Turkish Airlines (THY) chief executive in October 2016.

His predecessor, Temel Kotil, had won countless accolades during his time in office, presiding over a decade of rapid expansion and rising prestige for the super-connector airline. By the time of Kotil’s departure, however, events were conspiring against both the flag-carrier and its home nation.

A failed coup d'état, a wave of terror attacks by Daesh, and a regional slowdown in demand were setting the scene for THY’s first annual loss in recent memory...

The great foreign exchange rip-off is coming to an end


Full article on economist.com

Some years ago, when Gulliver was a wide-eyed reporter on his first business trip, he sidled up to a bureau de change in London’s Heathrow Airport to buy some foreign currency. His nervous excitement quickly turned to dismay when the teller gouged 12% from the transaction, justifying the theft by tapping on a display-screen of ruinous exchange rates. Today, Gulliver knows better than to buy foreign currency at an airport. But many do not: in 2016 Heathrow raked in £50m ($68m) by renting retail space to bureaux de change. New technology and startups could soon change that...