Subject category:
Strategy and General Management
Published in:
1993
Length: 25 pages
Data source: Field research
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Abstract
Aer Rianta, the state owned Irish Airports Authority, has successfully negotiated several new ventures with the world''s largest airline, Aeroflot. Because of a decline in transit traffic through Ireland''s Atlantic gateway, Shannon Airport, Co Clare, from the mid 1960s Aer Rianta devised a ''new business'' programme. Instead of turning westward to the USA as was customary, it looked eastward making Aeroflot ''an offer it couldn''t refuse''. It promised to establish a designated fuel farm at Shannon to service the Russian airline''s transatlantic fleet. Aeroflot transferred its stopover centre from Gander, Newfoundland, with up to 30% cost savings. Resulting from innovative bartering arrangements (Aer Rianta, being paid for landing charges in aviation fuel shipped direct by tanker from the USSR), Irish/Soviet business linkages were consolidated, gradually. With ''perestroika'', aircraft refurbishing/repainting contracts were negotiated, dutyfree shops opened at three locations; and airport management projects were undertaken in the USSR.
Location:
Industry:
Size:
500 people
Other setting(s):
1978-1989
About
Abstract
Aer Rianta, the state owned Irish Airports Authority, has successfully negotiated several new ventures with the world''s largest airline, Aeroflot. Because of a decline in transit traffic through Ireland''s Atlantic gateway, Shannon Airport, Co Clare, from the mid 1960s Aer Rianta devised a ''new business'' programme. Instead of turning westward to the USA as was customary, it looked eastward making Aeroflot ''an offer it couldn''t refuse''. It promised to establish a designated fuel farm at Shannon to service the Russian airline''s transatlantic fleet. Aeroflot transferred its stopover centre from Gander, Newfoundland, with up to 30% cost savings. Resulting from innovative bartering arrangements (Aer Rianta, being paid for landing charges in aviation fuel shipped direct by tanker from the USSR), Irish/Soviet business linkages were consolidated, gradually. With ''perestroika'', aircraft refurbishing/repainting contracts were negotiated, dutyfree shops opened at three locations; and airport management projects were undertaken in the USSR.
Settings
Location:
Industry:
Size:
500 people
Other setting(s):
1978-1989