It seems extremely likely that there will be more collapses in the commercial airline sector, and more consolidation as weaker players get weeded out, says Loizos Heracleous. Yet another airline has collapsed – this time British operation Flybmi, costing almost 400 jobs as hundreds of flights were cancelled at short notice. It is the latest in a string of recent European airline failures, including Air Berlin, Alitalia, Monarch, Primera, Azur and Cobalt. This is despite years of good growth in worldwide air passenger demand, including in Europe. So why are so many airlines going out of business? Aviation is an unattractive industry from an investor point of view at the best of times, notwithstanding the passenger growth. Aeroplanes are expensive assets with few alternative uses, which limits the ability of airlines to reduce their capacity during lean periods – compared to, say, a manufacturing business that can close a plant and lay off workers. Airlines also have to … [Read more...] about Airlines are going bust in droves, so why do so many people try to launch them?
Why do businesses fail
PUBLISHED: 16:47 19 February 2019 | UPDATED: 16:47 19 February 2019 Sarah Chambers Shirley Aldous, director, with daughter,Tarnia Robertson, director, and Tarnia's father, Colin Aldous, chairman of Ufford Park Woodbridge Hotel, Golf and Spa Picture: PAUL NIXON Paul Nixon Photography 01473430707 07904296577 Statistics suggest that as a family-run concern, it’s surviving against the odds. But four years after taking over the reins from her parents, Tarnia Robertson’s hotel business is still going strong. Ufford Park Hotel, Golf and Spa Picture: GREGG BROWNOnly a third of family-owned firms last into a second generation, figures suggest, but Tarnia’s long apprenticeship under parents Shirley and Colin Aldous have stood her in good stead: four years after she became managing director at Ufford Park Woodbridge Hotel – enabling her parents to take a back seat – she has already taken the business to new heights.MORE – Record … [Read more...] about Why do only a third of family-owned businesses survive into second generation?
“These guys are mad. Call off the invasion. Their system’s going to eat them so we won’t have to. They have these company things that they’re allowing to bust the whole place up. Let’s just sit tight and clean up once they’re done wrecking it.” That’s what an alien might very well say upon looking at the way the titans of the capitalist system have been operating. You want examples? Ten years on from the financial crisis that caused a brutal recession and a lost economic decade from which we have still to fully recover and it isn’t hard to find people who’ll tell you that the banks could easily do it again. Tech giants make money from people taking out ads that are designed to corrupt democratic elections, while other companies wreck the environment. Meanwhile, the carnival of corporate scandal adds a new float every few months. Yet according to the Nobel prize-winning economist Milton Friedman, whose influence … [Read more...] about Do businesses have ethical responsibilities as stakeholders in society?
0 Have your say The growing problems being caused by global warming show the need to curb our elaborate Western lifestyles, but politicians can’t seem to stop talking about economic growth in old-fashioned material terms, writes Joyce McMillan It has been a bad week for those who hope – or ardently believe – that climate breakdown caused by human activity is not really happening. Just a month after hurricane Florence administered a savage battering to the coast and inland areas of North Carolina, hurricane Michael slammed into the Florida panhandle on Tuesday, while in north-east India, 300,000 people have been evacuated from their homes in Odisha state because of a massive approaching cyclone. Ten people died in Majorca after unusually intense October rainstorms swept the western Mediterranean.And here in Scotland, we are bracing ourselves again, just three weeks after storm Ali, for a new storm called Callum, which is expected to wreak some … [Read more...] about Joyce McMillan: Why politicians are failing to tackle climate change
Technology is increasing the pace of change – and the risk of disruption – across all business sectors. Smart devices, internet of things applications and integrated supply chains mean decisions made by senior executives are more complex, and more subject to the law of unintended consequences, than ever before. As if the stakes weren’t high enough, Irish business leaders also have to cope with a growing range of external uncertainties, from Brexit to tariffs and trade wars, and that’s on top of the daily round of internal decision-making that drives every business. An ability to effectively navigate complex decisions is therefore one of the most valuable weapons in any senior leader’s arsenal. Navigating Complex Decisions is also the name of one of a number of new programmes being offered as part of the Irish Management Institute’s Executive Suite this autumn. Each is designed to equip leaders to be future-fit and is led by internationally … [Read more...] about Why are business decisions so difficult? Because they’re made by people