Misplaced Pages

#77922

118-681: Air France–KLM S.A. , also known as Air France–KLM Group , is a French-Dutch multinational airline holding company with its headquarters in the rue du Cirque, Paris , France . The group’s three major brands are Air France , KLM and Transavia . Air France-KLM is the result of the merger in 2004 between Air France and KLM . Both Air France and KLM are members of the SkyTeam airline alliance . The group's main hubs are Paris–Charles de Gaulle Airport , Paris Orly Airport and Amsterdam Airport Schiphol . Air France-KLM Airlines transported 83 million passengers in 2022. On 5 May 2004, Air France-KLM

236-498: A minority interest : [REDACTED] Media related to Air France-KLM at Wikimedia Commons Multinational corporation Most of the current largest and most influential companies are publicly traded multinational corporations, including Forbes Global 2000 companies. The history of multinational corporations began with the history of colonialism . The first multi-national corporations were founded to set up colonial "factories" or port cities. The two main examples were

354-535: A SkyTeam member, was also in talks with JAL. Air France, Alitalia, China Airlines , China Southern Airlines , Korean Air, and Vietnam Airlines are SkyTeam members that currently have code-sharing with JAL. On 7 February 2010 several news outlets reported that JAL decided to keep its alliance with American Airlines and end talks with Delta. According to reports, new JAL CEO Inamori and ETIC officials, decided that switching alliances (from Oneworld to SkyTeam) would be too risky and could hinder JAL's ability to turn around

472-624: A Union Flag design on the winglets of its aircraft and changed the red dress on the Scarlet Lady on the nose of aircraft to the union flag with the tag line "Britain's Flag Carrier ". This was a tongue-in-cheek challenge to BA's traditional role as the UK's flag carrier. In June 2006, US and UK competition authorities investigated alleged price fixing between Virgin Atlantic and British Airways over passenger fuel surcharges. In August 2007, BA

590-443: A badge indicating their preferred pronoun of address. The new uniforms are for crew, pilots and ground staff. At the same time, the company is making changes to its ticketing systems to allow those holding passports which indicate gender-neutrality to be entered as “U” or “X”, as well as offering a new title of address, “Mx”, on their reservations. At this time, not all countries offer this option on passports; those that do include

708-766: A basis in a national ethos , being ultimate without a specific nationhood, and that this lack of an ethos appears in their ways of operating as they enter into contracts with countries that have low human rights or environmental standards . In the world economy facilitated by multinational corporations, capital will increasingly be able to play workers, communities, and nations off against one another as they demand tax, regulation and wage concessions while threatening to move. In other words, increased mobility of multinational corporations benefits capital while workers and communities lose. Some negative outcomes generated by multinational corporations include increased inequality , unemployment , and wage stagnation . Raymond Vernon presents

826-447: A bid for Virgin Atlantic as Richard Branson had a 51 percent stake and the rest is held by Delta. In August 2011, Air France-KLM was categorized as one of World's 10 safest airlines. In December 2013, Air France-KLM sold its subsidiary CityJet to Intro Aviation. In early April 2016, Alexandre de Juniac , Chairman and CEO since 1 July 2013 resigned and was replaced by Jean-Marc Janaillac on 4 July 2016. In January 2018, before

944-533: A choice to wear trousers rather than a skirt. In September 2019, it was announced Virgin Atlantic had outlined plans to expand. A key part of these plans would have been acquiring Flybe , with a plan to rebrand it as "Virgin Connect" from early 2020; however, the plans fell through when Flybe filed for administration and ceased operations in March 2020. In December 2019, Branson announced that he would be scrapping

1062-593: A company. As of June 2024, the shareholding structure of the group is: Air France-KLM's head office is located in the Roissypôle complex on the grounds of Charles de Gaulle Airport and in Tremblay-en-France , near Paris. The 130,000-square-metre (1,400,000 sq ft) complex was completed in December 1995. The French firm Groupement d'Etudes et de Méthodes d'Ordonnancement (GEMO) managed

1180-508: A corporation invests in a country in which it is not domiciled, it is called foreign direct investment (FDI). Countries may place restrictions on direct investment; for example, China has historically required partnerships with local firms or special approval for certain types of investments by foreigners, although some of these restrictions were eased in 2019. Similarly, the United States Committee on Foreign Investment in

1298-517: A difficult 2018 with rising jet fuel prices and competition from Gulf carriers, Turkish Airlines , Chinese and Asian airlines, and low-cost carriers , either easyJet , Volotea , Ryanair or long haul . At the end of 2018, Air France-KLM will select its medium-haul fleet replacement for Air France , HOP! , KLM and Transavia , operating 120 Boeing 737 NG , 118 Airbus A320ceo family , 64 Embraer E-Jets , 25 Bombardier CRJ700 series and 13 Embraer 145 . After renewing its long-haul fleet with

SECTION 10

#1732772574078

1416-787: A domestic service on 31 March 2013, under the Little Red brand, operating a total of 12 daily services from London to Aberdeen (three), Edinburgh (six), and Manchester (three). The airline wet-leased four Airbus Airbus A320-200s from Aer Lingus , operating with Virgin Atlantic livery, under a three-year contract. In September 2014, it was reported that Virgin Atlantic was considering closing its domestic brand after suffering heavy losses, with Civil Aviation Authority figures confirming an average seat occupancy level of just 37.6% in 2013. The 12 daily pairs of take-off and landing slots at Heathrow cannot be sold to be used for long-haul routes. On 6 October 2014, Virgin Atlantic confirmed that

1534-429: A free market system where there is little government interference. As a result, international wealth is maximized with free exchange of goods and services. To many economic liberals, multinational corporations are the vanguard of the liberal order. They are the embodiment par excellence of the liberal ideal of an interdependent world economy. They have taken the integration of national economies beyond trade and money to

1652-668: A joint venture with Air France-KLM , but in December 2019, it was announced that the joint venture would not include a stake in the company. On 5 May 2020, it was announced that due to the COVID-19 pandemic , the airline would lay off 3,000 staff, reduce the fleet size to 35 by the summer of 2022, retire the Boeing 747-400s and would not resume operations from Gatwick following the pandemic. Virgin Atlantic filed for Chapter 15 bankruptcy protection in New York on 4 August 2020 as part of

1770-646: A large office in Swansea , Wales , which is a base for reservations, sales, baggage claims and tracing, 'live chat' web support and a customer relations department. International offices are located at Atlanta , Barbados, Greater Delhi, Johannesburg, Lagos and Shanghai. Virgin Group sold a 49% stake in the airline to Singapore Airlines in 1999 for £600 million. On 14 May 2008, Singapore Airlines formally announced an invitation for offers for its Virgin Atlantic stake, and publicly acknowledged that its stake in

1888-490: A million troops to help, and by February 1991, Iraqi forces were expelled from Kuwait. Due to the oil boycott from Kuwait and Iran, oil prices rose and quickly recovered. Saudi Arabia once again led OPEC, and thanks to assistance in defending Kuwait, new relations emerged between the USA and OPEC. Operation "Desert Storm" brought mutual dependence among the main oil producers. OPEC continued to influence global oil prices but recognized

2006-664: A mixed fleet of Airbus and Boeing wide-body aircraft and operates to destinations in North America, the Caribbean , Africa, the Middle East and Asia from its main hub at London–Heathrow and its secondary hub at Manchester . The airline also operates seasonal services from Edinburgh . Virgin Atlantic aircraft consist of three cabins: Economy, Premium (formerly Premium economy ) and Upper Class (business). In July 2017, Virgin Atlantic announced its intention to form

2124-535: A pack of Love Hearts at the end of every flight. British Midland International provided domestic and European feeder traffic into Heathrow Airport in partnership with Virgin until it was purchased by British Airways' parent company International Airlines Group in 2011. The Lufthansa -owned airline had faced heavy annual losses of more than £100 million. Under the terms of the takeover, IAG had to relinquish some former BMI domestic slots at Heathrow. Virgin Atlantic purchased enough slots in 2012 to enable it to launch

2242-477: A part of SkyTeam on March 2, 2023. In November 2023, the airlines announced plans to resume its flights to Dubai after four years of ceasing operations in the emirate. Also in November 2023, the airline announced plans to operate a flight on November 28 between London Heathrow and New York City using 100 percent sustainable aviation fuel . The flight will be operated on the airlines' Boeing 787-9 . The flight

2360-455: A party in London during which he proposed a business partnership. After protracted and testy negotiations, Fields agreed to a reduced stake of 25% in the airline (which was renamed Virgin Atlantic ) and became its first chairman. Following disagreements over operations, Fields agreed to be bought out for an initial sum of £1 million with further payment on Virgin Atlantic's first dividend. As

2478-399: A publicity stunt. Branson sued British Airways for libel, using the services of George Carman QC . BA settled out of court when its lawyers discovered the lengths to which the company had gone in trying to kill off Virgin Atlantic. British Airways had to pay a legal bill of up to £3 million, damages to Branson of £500,000, and a further £110,000 to his airline. Branson reportedly donated

SECTION 20

#1732772574078

2596-645: A result of a High Court action, this additional payment was received shortly before Fields' death in 1997. On 22 June 1984, Virgin Atlantic operated its inaugural scheduled service, flown between Gatwick and Newark using a leased Boeing 747-200 (registration G-VIRG ), christened Maiden Voyager , which had been formerly operated by Aerolíneas Argentinas . From the onset, its activities were augmented by leveraging existing Virgin Group resources, such as tickets being sold at Virgin Megastores record shops. Part of Richard Branson's declared approach to business

2714-486: A service between Luton and Dublin using secondhand Vickers Viscount turboprop aircraft, but this route was withdrawn around 1990. The airline also operated a Viscount service between Maastricht and London Luton Airport in 1989. During 1988, Club Air operated two Boeing 727 jet aircraft on behalf of Virgin Atlantic; these served the Luton-to-Dublin route until about 1990. In 1991, Virgin Atlantic

2832-625: A successor. Reportedly, Fields had formed a concept for an airline that would operate between London and the Falkland Islands during June 1982, when the Falklands War had just finished. Seeking out expertise in the field, Fields made contact with Hellary, who had already been considering options for establishing a regular commercial service to the Falklands. In turn, Hellary was in contact with several out-of-work colleagues from

2950-581: A takeover bid for Flybe . The deal would see the consortium combine Flybe and Stobart Air with Virgin Atlantic to create an integrated carrier operating under the Virgin Atlantic brand. Flybe and Stobart Air would however retain their own Air Operator Certificates . On 15 January 2019, Connect Airways announced an increased offer, which Flybe's board accepted. On 21 February 2019, the Flybe Group confirmed that its operating assets, including

3068-590: A three-class cabin configuration: Economy , Premium (formerly Premium Economy ), and Upper Class - the business class product. Premium has a separate check-in area, priority boarding and a wider seat with more legroom. Upper Class features a seat that converts into a fully flat bed and access to a private check in area (called the Upper Class Wing at London Heathrow). Virgin Atlantic was the first airline to offer personal entertainment for all passengers in all classes. The airline's frequent-flyer program

3186-554: A three-day inquiry was conducted, which chose to reject the application following objections from British Airways , British Caledonian and BAA . Hellary and Fields then applied for a licence between Gatwick and Newark , New Jersey , using a 380-seat McDonnell Douglas DC-10 . However, faced with the prospect of direct competition from rival operator PEOPLExpress , a post- deregulation "no frills" discount airline based at Newark, they decided to secure more funding before proceeding. Fields met British entrepreneur Richard Branson at

3304-524: A transatlantic joint venture. Regulatory approval from the United States and European Union was granted on 20 June 2013, and the purchase was completed on 24 June. In December 2012, International Airlines Group CEO, Willie Walsh, suggested that the loss-making company would be history within five years. "I can't see Delta wanting to operate the Virgin brand because if they do what does that say about

3422-452: A £1.2 billion private refinancing package. The airline joined the SkyTeam airline alliance in March 2023. Virgin Atlantic has its origins in a joint endeavour by Randolph Fields , an American-born lawyer, and Alan Hellary , a former chief pilot for British private airline Laker Airways . Following the collapse of Laker Airways in 1982, Fields and Hellary decided to establish a new company, initially named British Atlantic Airways , as

3540-523: A £100 million loan. In September 2022, Virgin Atlantic announced the introduction of two new sets of uniforms, designed by Vivienne Westwood , as well as a new policy to embrace the concept of gender neutrality . She worked closely with Richard Branson to design a uniform comprises a bright red skirt suit and high-heeled shoes , and the other a burgundy -coloured trouser suit with a grey waistcoat , red tie and flat black shoes. Staff will be allowed to choose either uniform, and may also choose to wear

3658-651: Is administratively separate from other Virgin-branded airlines. Virgin Atlantic Airways Limited and Virgin Atlantic International Limited both hold Civil Aviation Authority (CAA) Type A Operating Licences ( AOC numbers 534 and 2435 respectively), both of which permit these airlines, operating as Virgin Atlantic Airways, to carry passengers, cargo and mail on aircraft with 20 or more seats. Virgin Atlantic uses

Air France–KLM - Misplaced Pages Continue

3776-410: Is often handled through international arbitration . The actions of multinational corporations are strongly supported by economic liberalism and free market system in a globalized international society. According to the economic realist view, individuals act in rational ways to maximize their self-interest and therefore, when individuals act rationally, markets are created and they function best in

3894-490: Is one of the largest airline companies in Europe, with 204.7 billion passenger-km in the year ending 31 March 2011. Private shareholders own 81.4% of the company with 37% held by former Air France shareholders and 21% held by former KLM shareholders. The Government of France owns the remaining 15.9%. In June 2008, Air France-KLM agreed to pay $ 350 million to settle charges of cargo price fixing in an investigation conducted by

4012-924: Is styled 'the Flying Club'. Virgin Atlantic operate five airport lounges branded as 'Clubhouses' at London Heathrow , John F. Kennedy International Airport in New York, Dulles International Airport in Washington, D.C., San Francisco International Airport and O. R. Tambo International Airport in Johannesburg. It also operates a 'Revivals' arrival lounge in London Heathrow. They are accessible for passengers travelling in Upper Class and Flying Club Gold tier members. Where applicable, Upper Class passengers are also welcome to use Delta Sky Clubs prior to departure. Virgin Atlantic gives passengers

4130-527: Is the parent company of CMA CGM Air Cargo which was founded in 2021. As part of the agreement CMA CGM acquired a 9% stake in AF-KLM; however, this agreement was terminated by mutual agreement in January 2024 without change in the capital structure of the group. On 12 July 2023, Air France-KLM announced a 10-for-1 reverse stock split and an ISIN change on 31 August 2023. In October 2023, Air France-KLM,

4248-495: Is to either succeed within the first year or exit the market; this ethos includes a one-year limit being expressed upon everything associated with starting up operations. Virgin Atlantic became profitable within the first 12 months, aided by sister company Virgin Records ' ability to finance the lease of a secondhand Boeing 747. The firm had timed its operations to take advantage of a full summer, from June to September, which

4366-865: Is usually a large corporation incorporated in one country that produces or sells goods or services in various countries. Two common characteristics shared by MNCs are their large size and centrally controlled worldwide activities. MNCs may gain from their global presence in a variety of ways. First of all, MNCs can benefit from the economy of scale by spreading R&D expenditures and advertising costs over their global sales, pooling global purchasing power over suppliers, and utilizing their technological and managerial experience globally with minimal additional costs. Furthermore, MNCs can use their global presence to take advantage of underpriced labor services available in certain developing countries and gain access to special R&D capabilities residing in advanced foreign countries. The problem of moral and legal constraints upon

4484-464: The 787 Dreamliner and the A350 XWB from 2019, specifications will be released in the first trimester, seeking proposals from Airbus , Boeing , Bombardier Aerospace and Embraer , aiming for lower aircraft noise and biofuel usage. On 4 May 2018, Jean-Marc Janaillac announced that he will be resigning as CEO of Air France-KLM, after employees rejected new salary package. On 16 August 2018,

4602-980: The British East India Company founded in 1600 and the Dutch East India Company (VOC) founded in 1602. In addition to carrying on trade between Great Britain and its colonies, the British East India Company became a quasi-government in its own right, with local government officials and its own army in India. Other examples include the Swedish Africa Company founded in 1649 and the Hudson's Bay Company founded in 1670. These early corporations engaged in international trade and exploration and set up trading posts. The Dutch government took over

4720-618: The Falkland Islands . Soon after changing the name to Virgin Atlantic Airways, Fields sold his shares in the company to Richard Branson in return for unlimited free travel. The maiden flight from London–Gatwick to Newark took place on 22 June 1984. The airline along with Virgin Holidays is controlled by a holding company, Virgin Atlantic Limited, which is 51% owned by the Virgin Group and 49% by Delta Air Lines . It

4838-477: The French Senate , Jean-Marc Janaillac reported for 2017 a higher revenue due to a rising fleet utilisation and a faster growth to come, and a better operating profit with 6% for the group (Air France 4%, KLM 9%) but lagging the 9% of Lufthansa and 10 to 12% of British Airways , while he deplored Paris-Charles de Gaulle luggage handling and safety waiting lines, obstructing connections, and anticipating

Air France–KLM - Misplaced Pages Continue

4956-544: The U.S. Justice Department . Cathay Pacific , Martinair Holland , and SAS Cargo Group also agreed to fines bringing the total to $ 504 million. In November 2010, the European Commission fined Air France-KLM €310 million following another price-fixing investigation. The company spends about a third of its revenue on staff, its biggest expense, while Lufthansa only spends around a quarter, so to save around 800 million euros (app. 1.04 billion US$ ) annually over

5074-617: The 19th century, such as the Rio Tinto company founded in 1873, which started with the purchase of sulfur and copper mines from the Spanish government. Rio Tinto, now based in London and Melbourne , Australia, has made many acquisitions and expanded globally to mine aluminum , iron ore , copper , uranium , and diamonds . European mines in South Africa began opening in the late 19th century, producing gold and other minerals for

5192-688: The Board of Directors of Air France-KLM announced the appointment of Benjamin Smith as new CEO. He took up his duties at Air France-KLM on 30 September 2018. On 26 February 2019, the Dutch government announced that it had "purchased 12.68 percent of shares in Air France-KLM" and "plans to build up its stake to around 14 percent". In May 2022, Air France-KLM signed a strategic partnership with CMA CGM to develop their air cargo capacities together. CMA CGM

5310-754: The CAA's decision, which the government had endorsed, "a confiscation of his company's property". In the year to October 1993, Virgin Atlantic declared a loss of £9.3 million. The decision to abolish the London TDRs and to let Virgin Atlantic operate at Heathrow, in competition with British Airways, became the trigger for BA's so-called "dirty tricks" campaign against the company. During 1993, BA's public relations director, David Burnside , published an article in BA News , British Airways' internal magazine, which argued that Branson's protests against British Airways were

5428-616: The Danish state and two investment firms (Castlelake and Lind Invest) announced plans to invest in Scandinavian Airlines (SAS) following the airline's ongoing Chapter 11 process in the United States, with the carrier taking 19.9% stake (and plans to increase in the future). In March 2024, the US Bankruptcy Court approved the restructuring plan that would allow SAS to exit Chapter 11 proceedings with approval from

5546-669: The Delta brand? I just don't see that the guy [Branson] has anything that stands out in terms of what he has achieved in the industry." In July 2017, Virgin Group agreed to sell a 31% stake in the airline to Air France-KLM for £220 million, leaving it with a 20% holding. The deal fell through in late 2019. The key trends for Virgin Atlantic are shown below (from 2014 onwards, figures are for year ending December; earlier figures are for year ending February, and exclude Virgin Nigeria operations 2005–2008): Virgin Atlantic aircraft operate with

5664-551: The English language. Senior officials, although mostly still Swedish, all learned English and all major internal documents were in English, the lingua franca of multinational corporations. After the war, the number of businesses having at least one foreign country operation rose drastically from a few thousand to 78,411 in 2007. Meanwhile, 74% of parent companies are located in economically advanced countries. Developing and former communist countries such as China, India, and Brazil are

5782-422: The European Commission following on 28 June 2024. Following the approval for the investment, SAS exited Star Alliance on 31 August 2024, and joined SkyTeam on 1 September 2024 In May 2010, Air France-KLM announced increased losses (€1.56 billion for the year to 31 March 2010), and warned that the 2010 eruptions of Eyjafjallajökull had caused a further €160 million loss in the current financial year. Air France-KLM

5900-575: The International Energy Agency (IEA), enabling states to coordinate policy, gather data, and monitor global oil reserves. In the 1970s, OPEC gradually nationalized the Seven Sisters. The Kingdom of Saudi Arabia, as the only largest world oil producer, could leverage this. However, Saudi Arabia opted for the correct approach and maintained consistent oil prices throughout the 1970s. In 1979, the "second oil shock" came from

6018-705: The Little Red service would cease; flights to Manchester ended on 28 March 2015 and flights to Edinburgh and Aberdeen ended on 26 September 2015. On 13 April 2015, Virgin Atlantic incorporated a new subsidiary – Virgin Atlantic International Limited. In November 2015, the subsidiary obtained its own Air Operators Certificate and Operating Licence, and commenced operations with two former Virgin Atlantic Airways Limited operated Airbus A330-300 aircraft taking over routes previously operated by Virgin Atlantic Limited between London Gatwick and Barbados, St Lucia, Antigua, Grenada and Tobago. These flights are operated on behalf of Virgin Atlantic. Upon incorporation as an AOC holder,

SECTION 50

#1732772574078

6136-511: The Netherlands has become a popular choice, as its company laws have fewer requirements for meetings, compensation, and audit committees, and Great Britain had advantages due to laws on withholding dividends and a double-taxation treaty with the United States. Corporations can legally engage in tax avoidance through their choice of jurisdiction but must be careful to avoid illegal tax evasion . Corporations that are broadly active across

6254-558: The OLI framework. The other theoretical dimension of the role of multinational corporations concerns the relationship between the globalization of economic engagement and the culture of national and local responses. This has a history of self-conscious cultural management going back at least to the 60s. For example: Ernest Dichter, architect, of Exxon's international campaign, writing in the Harvard Business Review in 1963,

6372-464: The Third World colonies. That changed dramatically after 1945 as investors turned to industrialized countries and invested in manufacturing (especially high-tech electronics, chemicals, drugs, and vehicles) as well as trade. Sweden's leading manufacturing concern was SKF , a leading maker of bearings for machinery. In order to expand its international business, it decided in 1966 it needed to use

6490-636: The U.S. applies its corporate taxation "extraterritorially", which has motivated tax inversions to change the home state. By 2019, most OECD nations, with the notable exception of the U.S., had moved to territorial tax in which only revenue inside the border was taxed; however, these nations typically scrutinize foreign income with controlled foreign corporation (CFC) rules to avoid base erosion and profit shifting . In practice, even under an extraterritorial system, taxes may be deferred until remittance, with possible repatriation tax holidays , and subject to foreign tax credits . Countries generally cannot tax

6608-399: The UK and India and Pakistan. On 27 September 2022, Virgin Atlantic announced that the airline would join SkyTeam airline alliance in early 2023. It was first time that a British airline joined an airline alliance since British Midland International joined Star Alliance in 2002 and British Airways of Oneworld in 1999. In February 2023, the airline stated that it would officially be

6726-414: The UK and an imminent end to operations at Gatwick Airport . On June 7, Virgin Atlantic commenced cargo-only flights between Brussels Airport and London Heathrow, feeding the high demand for European cargo into its network via LHR. As of 2022 the flights still continue on a daily basis, using all aircraft types within the fleet. On 4 August, Virgin Atlantic filed for bankruptcy protection from creditors in

6844-495: The UK government, and the Secretary of State for Transport , granted permission. The Civil Aviation Authority also transferred two pairs of unused landing slots that British Airways held at Tokyo's Narita Airport to Virgin Atlantic, allowing it to increase frequency between Heathrow and Tokyo from four to six weekly round trips, making it easier to compete against British Airways. The then-chairman of BA, Lord King , called

6962-529: The US as part of a recapitalisation and debt restructuring plan. On August 25, 2020, creditors approved the £1.2bn (€1.3bn) rescue package and debt restructuring. On September 4, 2020, Virgin Atlantic announced a second round of job cuts, totalling 1,150 across all departments. Since the start of 2020, the company halved its workforce due to the COVID-19 pandemic. Chief executive Shai Weiss said that "further reducing

7080-541: The United States sanctions against Iran ; European companies faced with the possibility of losing access to the U.S. market by trading with Iran. International investment agreements also facilitate direct investment between two countries, such as the North American Free Trade Agreement and most favored nation status. Raymond Vernon reported in 1977 that of the largest multinationals focused on manufacturing, 250 were headquartered in

7198-506: The United States scrutinizes foreign investments. In addition, corporations may be prohibited from various business transactions by international sanctions or domestic laws. For example, Chinese domestic corporations or citizens have limitations on their ability to make foreign investments outside China, in part to reduce capital outflow . Countries can impose extraterritorial sanctions on foreign corporations even for doing business with other foreign corporations, which occurred in 2019 with

SECTION 60

#1732772574078

7316-614: The United States as the largest consumer and guarantor of the existing oil security order. Since the Iraq War, OPEC has had only a minor influence on oil prices, but it has expanded to 11 members, accounting for about 40 percent of total global oil production, although this is a decline from nearly 50 percent in 1974. Oil has practically become a common commodity, leading to much more volatile prices. Most OPEC members are wealthy, and most remain dependent on oil revenues, which has serious consequences, such as when OPEC members were pressured by

7434-461: The United States from 2010. The USA became the leading oil producer, creating tension with OPEC. In 2014, Saudi Arabia increased production to push new American producers out of the market, leading to lower prices. OPEC then reduced production in 2016 to raise prices, further worsening relations with the United States. By 2012, only 7% of the world's known oil reserves were in countries that allowed private international companies free rein; 65% were in

7552-576: The United States, 115 in Western Europe, 70 in Japan, and 20 in the rest of the world. The multinationals in banking numbered 20 headquartered in the United States, 13 in Europe, nine in Japan and three in Canada. Today multinationals can select from a variety of jurisdictions for various subsidiaries, but the ultimate parent company can select a single legal domicile ; The Economist suggests that

7670-766: The VOC in 1799, and during the 19th century, other governments increasingly took over private companies, most notably in British India. During the process of decolonization , the European colonial charter companies were disbanded, with the final colonial corporation, the Mozambique Company , dissolving in 1972. Mining of gold, silver, copper, and oil was a major activity early on and remains so today. International mining companies became prominent in Britain in

7788-507: The West to the post-colonial South and invest either in foreign expenditures or ostentatious economic development projects. After 1974, most of the money from OPEC members ceased as payments for goods and services or investments in Western industry. In February 1974, the first Washington Energy Conference was convened. The most significant contribution of this conference was the establishment of

7906-452: The aforementioned deal with Delta to survive, after losses of £233 million between 2010 and 2013. In the same month, the airline announced it would cut 500 jobs to establish a more efficient management structure. In July 2017, Air France-KLM nearly acquired a 31% stake in Virgin Atlantic for £220 million. This deal however never went through. In 2019, Virgin Atlantic began to allow its female flight attendants to not wear makeup and have

8024-410: The airline and the website, had indeed been transferred to Connect Airways, despite a last-minute rival bid. However, despite the investment of £135 million from Connect Airways into Flybe, the airline filed for administration and ceased operations with immediate effect in March 2020, following reduced demand that Virgin Atlantic attributed to the COVID-19 pandemic and the UK government failing to grant

8142-518: The airline for over 20 years. This was despite CEO Shai Weis taking the biggest bonus of any airline CEO in Europe. Virgin Atlantic's head office, known as The VHQ , is located on a business park in Crawley , England, near Gatwick Airport and also houses the corporate offices of Virgin Holidays . The company operates several offices and call centres around the United Kingdom, including

8260-452: The airline had "underperformed". In November 2010, it was reported that Virgin Atlantic had appointed Deutsche Bank to begin a strategic review of options for the airline following the tie-up between British Airways and American Airlines. By February 2011, it was confirmed that SkyTeam members Air France–KLM and Delta Air Lines had appointed Goldman Sachs to advise them on a joint potential approach for Virgin Atlantic. Etihad Airways

8378-462: The airline quickly. On 9 February 2010, JAL officially announced their decision to strengthen its partnership with American, which included the joint application of antitrust immunity approval on transpacific routes. The airline also planned to fortify its relationship with other partners in the Oneworld alliance. In February 2011, Air France-KLM and Delta Air Lines were working together to examine

8496-469: The behavior of multinational corporations, given that they are effectively "stateless" actors, is one of several urgent global socioeconomic problems that has emerged during the late twentieth century. Potentially, the best concept for analyzing society's governance limitations over modern corporations is the concept of "stateless corporations". Coined at least as early as 1991 in Business Week ,

8614-521: The collapse of Laker Airways; as such, the pair decided to refine their ambitions. However, it was soon determined that the short runway at Port Stanley Airport , and the time it would take to improve it, would render a route to the Falklands commercially unviable; thus, the idea of such a service was dropped. In its place, Hellary and Fields commenced efforts to secure a licence to operate a route between Gatwick Airport , London and John F. Kennedy International Airport , New York City . During May 1983,

8732-742: The collapse of the Shah's regime in Iran. Iran became a regional power due to oil money and American weapons. The Shah eventually abdicated and fled the country. This prompted a strike by thousands of Iranian oil workers, significantly reducing oil production in Iran. Saudi Arabia tried to cope with the crisis by increasing production, but oil prices still soared, leading to the "second oil shock." Saudi Arabia significantly reduced oil production, losing most of its revenues. In 1986, Riyadh changed course, and oil production in Saudi Arabia sharply increased, flooding

8850-654: The companies. This occurred in 1960. Prior to the 1973 oil crisis , the Seven Sisters controlled around 85 percent of the world's petroleum reserves . In the 1970s, most countries with large reserves nationalized their reserves that had been owned by major oil companies. Since then, industry dominance has shifted to the OPEC cartel and state-owned oil and gas companies, such as Saudi Aramco , Gazprom (Russia), China National Petroleum Corporation , National Iranian Oil Company , PDVSA (Venezuela), Petrobras (Brazil), and Petronas (Malaysia). A unilateral increase in oil prices

8968-695: The company was also reported to be considering axing its new Little Red domestic airline after suffering heavy losses. On 6 October 2014, Virgin Atlantic confirmed that Little Red services between London and Manchester would end in March 2015, and that the Scottish routes would be terminated in September 2015. Passengers used the routes from point to point as opposed to using it as a connection for longer haul Virgin Atlantic flights. The former BMI routes continued with rival airline British Airways. In June 2015, Richard Branson stated that Virgin Atlantic had needed

9086-510: The conception was theoretically clarified in 1993: that an empirical strategy for defining a stateless corporation is with analytical tools at the intersection between demographic analysis and transportation research. This intersection is known as logistics management , and it describes the importance of rapidly increasing global mobility of resources. In a long history of analysis of multinational corporations, we are some quarter-century into an era of stateless corporations—corporations that meet

9204-643: The creation of a "world customer". The idea of a global corporate village entailed the management and reconstitution of parochial attachments to one's nation. It involved not a denial of the naturalness of national attachments, but an internationalization of the way a nation defines itself. "Multinational enterprise" (MNE) is the term used by international economist and similarly defined with the multinational corporation (MNC) as an enterprise that controls and manages production establishments, known as plants located in at least two countries. The multinational enterprise (MNE) will engage in foreign direct investment (FDI) as

9322-683: The debate from a neo-liberal perspective in Storm over the Multinationals (1977). Virgin Atlantic Virgin Atlantic , a trading name of Virgin Atlantic Airways Limited and Virgin Atlantic International Limited , is a British airline with its head office in Crawley , West Sussex , England. The airline was established in 1984 as British Atlantic Airways , and was originally planned by its co-founders Randolph Fields and Alan Hellary to fly between London and

9440-425: The financially struggling carrier, which is Asia's largest airline by revenue. The Ministry of Land, Infrastructure, Transport and Tourism of Japan had recommended Air France-KLM and/or Delta for partners because of their "healthy" financial status, compared to AMR Corporation. Delta was also recommended because of its extensive Asian network, acquired through the acquisition of Northwest Airlines . Korean Air , also

9558-481: The firm makes direct investments in host country plants for equity ownership and managerial control to avoid some transaction costs . Sanjaya Lall in 1974 proposed a spectrum of scholarly analysis of multinational corporations, from the political right to the left. He put the business school how-to-do-it writers at the extreme right, followed by the liberal laissez-faire economists, and the neoliberals (they remain right of center but do allow for occasional mistakes of

9676-416: The hands of state-owned companies that operated in one country and sold oil to multinationals such as BP, Shell, ExxonMobil and Chevron. Down through the 1930s, about 80% of the international investments by multinational corporations were concentrated in the primary sector, especially mining (especially oil) and agriculture (rubber, tobacco, sugar, palm oil , coffee, cocoa, and tropical fruits). Most went to

9794-434: The immunity it had earlier negotiated with the regulators. In April 2010, a tip-off from Cathay Pacific led to an Office of Fair Trading (OFT) investigation of alleged price-fixing between Virgin Atlantic and Cathay Pacific on flights to Hong Kong between 2002 and 2006. Cathay Pacific received immunity from prosecution for reporting the alleged offence. A maximum fine, if found guilty, was 10% of turnover, which, based on

9912-576: The international oil market. Iran was unable to sell any of its oil. In August 1953, the then-prime minister was overthrown by a pro-American dictatorship led by the Shah, and in October 1954, the Iranian industry was denationalized. Worldwide oil consumption increased rapidly between 1949 and 1970, a period known as the 'golden age of oil'. This increase in consumption was caused not only by the growth of production by multinational oil companies but also by

10030-415: The internationalization of production. For the first time in history, production, marketing, and investment are being organized on a global scale rather than in terms of isolated national economies. International business is also a specialist field of academic research. Economic theories of the multinational corporation include internalization theory and the eclectic paradigm . The latter is also known as

10148-460: The largest recipients. However, 70% of foreign direct investment went into developed countries in the form of stocks and cash flows. The rise in the number of multinational companies could be due to a stable political environment that encourages cooperation, advances in technology that enable management of faraway regions, and favorable organizational development that encourages business expansion into other countries. A multinational corporation (MNC)

10266-474: The laws and regulations of both their domicile and the additional jurisdictions where they are engaged in business. In some cases, the jurisdiction can help to avoid burdensome laws, but regulatory statutes often target the "enterprise" with statutory language around "control". As of 1992 , the United States and most OECD countries have the donot legal authority to tax a domiciled parent corporation on its worldwide revenue, including subsidiaries. As of 2019 ,

10384-464: The majority of Virgin Atlantic's landing slots at London Heathrow Airport were transferred to Virgin Atlantic International Limited, allowing Virgin Atlantic to access the value of the carriers' slots by ' mortgaging ' them through open investment from capital markets. On 11 January 2019, Virgin Atlantic formed the Connect Airways consortium with Stobart Aviation and Cyrus Capital, to make

10502-434: The market with cheap oil. This caused a worldwide drop in oil prices, hence the "third oil shock" or "counter-shock." However, this shock represented something much bigger—the end of OPEC's dominance and its control over oil prices. Iraqi President Saddam Hussein decided to attack Kuwait. The invasion sparked a crisis in the Middle East, prompting Saudi Arabia to request assistance from the United States. The United States sent

10620-543: The marketplace such as externalities). Moving to the left side of the line are nationalists, who prioritize national interests over corporate profits, then the "dependencia" school in Latin America that focuses on the evils of imperialism, and on the far left the Marxists. The range is so broad that scholarly consensus is hard to discern. Anti-corporate advocates criticize multinational corporations for being without

10738-674: The next three years, the company will make a recruitment freeze which will lead to 2,000 job cuts in 2012. In February 2014, Air-France KLM invested $ 100 million in Brazilian airline Gol Linhas Aéreas Inteligentes in advance of the 2014 football World Cup. During 2015, Air France went through a severe business crisis and a pilot's strike, which made the French airline cut almost 3,000 jobs, KLM defer some of its pending 787 deliveries, KLM's cargo subsidiary Martinair to retire six McDonnell-Douglas MD-11 airplanes, and Air France-KLM to suffer as

10856-558: The number of people we employ is heartbreaking but essential." As of February 2022, during Russia 's invasion of Ukraine , Virgin Atlantic, along with the other UK carriers, observed a ban from travelling in Russian airspace that was a retaliatory measure for the UK's ban on Russia's main carrier , Aeroflot and all other Russian private jets and carriers from using UK airspace. Virgin Atlantic said that avoiding Russia would add between 15 minutes and an hour to flight journeys between

10974-560: The price collapse in 1998–1999. The United States still maintains close relations with Saudi Arabia. In 2003, U.S. forces invaded Iraq with the aim of removing the dictatorship and gaining access to Iraqi oil reserves, giving the United States greater strategic importance from 2000 to 2008. During this period, there was a constant shortage of oil, but its consumption continued to rise, maintaining high prices and leading to concerns about "peak oil". From 2005 to 2012, there were advances in oil and gas extraction, leading to increased production in

11092-462: The proceeds from the case to Virgin Atlantic staff. During the late 1990s, Virgin Atlantic jets were painted with "No Way BA/AA" as a declaration of its opposition to the attempted merger between British Airways and American Airlines . In 1997, following British Airways' announcement that it was to remove the Union Flag from its tailfins in favour of world images , Virgin Atlantic introduced

11210-482: The project. The architect was Valode & Pistre and the design consultants were Sechaud-Boyssut and Trouvin. The project amounted to a cost of 137,000,000 euros. As of November 2024, the Air France-KLM Group operates the following aircraft in its passenger fleet: Wholly owned subsidiaries of Air France-KLM include: Until January 2017, Air France-KLM also fully owned Cobalt Ground Solutions

11328-611: The realities of the needs of source materials on a worldwide basis and to produce and customize products for individual countries. One of the first multinational business organizations, the East India Company , was established in 1601. After the East India Company came the Dutch East India Company , founded on March 20, 1603, which would become the largest company in the world for nearly 200 years. The main characteristics of multinational companies are: When

11446-431: The sale of a 31% stake in the airline to Air France-KLM and that Virgin Group would retain its 51% shareholding. In the same year, Virgin Atlantic stopped flying to Dubai, a major aviation and tourism hub owing to COVID and issues related to competition. In March 2020, during the COVID-19 pandemic , Richard Branson and Virgin Atlantic attracted criticism by asking employees to take eight weeks' unpaid leave. However, this

11564-501: The strong influence of the United States on the global oil market. In 1959, companies lowered the price of oil due to a surplus in the market. This reduction dealt a significant blow to the finances of producers. Saudi oil minister Abdullah Tariki and Venezuela’s Juan Perez Alfonso entered into a secret agreement (the Mahdi Pact), promising that if the price of oil was lowered a second time, they would take collective action against

11682-438: The third largest ground handling company based at London Heathrow Airport . The company was formed on 1 April 2009 by merging the two ground services subsidiaries of Air France and KLM in the UK – formerly Air France Services Ltd (AFSL) and KLM Ground Services Ltd (KGS). Cobalt Ground Solutions was sold to Groupe CRIT, who purchased 100% of the company through its subsidiary Groupe Europe Handling. Air France Services Ltd (AFSL)

11800-496: The world market, jobs for locals, and business and profits for companies. Cecil Rhodes (1853–1902) was one of the few businessmen in the era who became Prime Minister (of South Africa 1890–1896). His mining enterprises included the British South Africa Company and De Beers . The latter company practically controlled the global diamond market from its base in southern Africa. In 1945, the United States

11918-573: The world without a concentration in one area have been called stateless or "transnational" (although "transnational corporation" is also used synonymously with "multinational corporation" ), but as of 1992, a corporation must be legally domiciled in a particular country and engage in other countries through foreign direct investment and the creation of foreign subsidiaries. Geographic diversification can be measured across various domains, including ownership and control, workforce, sales, and regulation and taxation. Multinational corporations may be subject to

12036-426: The world. In the year ending 21 March 2003, the two companies combined transported 66.3 million passengers. In October 2005, Air France Cargo and KLM Cargo, the two freight subsidiaries of the group, merged their commercial activities. The Joint Cargo Management Team now operates the organisation worldwide from the Netherlands. In a 2007 opening for a majority takeover of the loss-generating Alitalia , Air France-KLM

12154-503: The worldwide revenue of a foreign subsidiary, and taxation is complicated by transfer pricing arrangements with parent corporations. For small corporations, registering a foreign subsidiary can be expensive and complex, involving fees, signatures, and forms; a professional employer organization (PEO) is sometimes advertised as a cheaper and simpler alternative, but not all jurisdictions have laws accepting these types of arrangements. Disputes between corporations in different nations

12272-582: The £2.5 billion in sales for the year to February 2009, would have been £250 million. At the time, the OFT stressed that it should not be assumed that the parties involved had broken the law. The OFT cleared both airlines in December 2012, concluding there were "no grounds for action". In May 2014, Virgin Atlantic ended flights to Sydney. In September 2014, Virgin Atlantic announced plans to scrap flights to Tokyo, Mumbai, Vancouver, and Cape Town, and to codeshare transatlantic flights with Delta Air Lines ;

12390-407: Was also reported to be considering a deal, and Willie Walsh , chief executive of International Airlines Group , stated that they would be interested in the airline, but only for the lucrative take-off and landing slots it holds at Heathrow Airport. On 11 December 2012, Delta Air Lines confirmed the purchase of Singapore Airlines' 49% stake in Virgin Atlantic for £224 million, with plans to develop

12508-759: Was before the UK Government announced the Coronavirus Job Retention Scheme , and employees were subsequently furloughed instead. Whilst furloughed, many staff volunteered with the NHS, answering 999 calls, and at NHS Trusts in London and the South East. On 27 March, it was reported that Virgin Atlantic was expected to seek a government bailout, which was on 1 April reportedly backed by Rolls-Royce , Airbus and Heathrow . In May 2020, Virgin Atlantic announced over 3,000 jobs losses in

12626-458: Was created by the mutually agreed merger between Air France and Netherlands-based KLM. As a result of the deal, the French government's share of Air France was reduced from 54.4% (of the former Air France) to 44% (of the combined airline). Its share was subsequently reduced to 25%, and later to 17.6%. At the time of the merger in May 2004, Air France and KLM combined offered flights to 225 destinations in

12744-438: Was enabled by multinational corporations known as the 'Seven Sisters'. The "Seven Sisters" was a common term for the seven multinational companies that dominated the global petroleum industry from the mid-1940s to the mid-1970s. The nationalization of the Iranian oil industry in 1951 by Iranian Prime Minister Mohammad Mosaddegh and the subsequent boycott of Iranian oil by all companies had dramatic consequences for Iran and

12862-606: Was fined £271 million by the UK Office of Fair Trading (OFT) and the US ; Department of Justice . However, the Chief Executive of Virgin Atlantic, Steve Ridgway, was forced to admit that the company had been a party to the agreement, had been aware of the price-fixing and had taken no steps whatsoever to stop the price-fixing. The company escaped a similar fine to that levied on British Airways only by virtue of

12980-448: Was fully aware that the means to overcoming cultural resistance depended on an "understanding" of the countries in which a corporation operated. He observed that companies with "foresight to capitalize on international opportunities" must recognize that " cultural anthropology will be an important tool for competitive marketing". However, the projected outcome of this was not the assimilation of international firms into national cultures, but

13098-677: Was given permission to operate from Heathrow following the abolition of the London Air Traffic Distribution Rules (TDRs), which had governed the distribution of traffic between Heathrow and Gatwick airports since 1978, primarily to bolster the profitability of Gatwick. Airlines without an international scheduled service from Heathrow prior to 1 April 1977 were obliged to operate from Gatwick. However, airlines that did not already operate at Heathrow were still able to begin domestic scheduled services there provided BAA, which then ran both Heathrow and Gatwick on behalf of

13216-546: Was labeled as "the largest nonviolent transfer of wealth in human history." The OPEC sought immediate discussions regarding participation in national oil industries. Companies were not inclined to object as the price hike benefited both them and OPEC members. In 1980, the Seven Sisters were entirely displaced and replaced by national oil companies (NOCs). The rise in oil prices burdened developing countries with balance of payments deficits, leading to an energy crisis. OPEC members had to abandon their plan of redistributing wealth from

13334-634: Was one of the major ground handling companies at Heathrow airport. AFSL was created on 15 January 1997 and was in the beginning a partnership between Air France and Servisair Ltd. Servisair then decided to pull out. The group also owns Cygnific which is one of the biggest Sales & Service Centres of Air France-KLM. Cygnific is a full subsidiary of KLM Royal Dutch Airlines, operating as an independent company with its own business strategy, operational processes and human resources policy. Cygnific serves passengers and travel agents on behalf of KLM, Air France and Delta Air Lines. Airlines in which Air France-KLM owns

13452-448: Was one of three bidders, and was favoured by the board of Alitalia. However, on 2 April 2008, it was reported that negotiations have been abandoned. After the acquisition of Alitalia and Air One by Compagnia Aerea Italiana on 12 December 2008, Air France-KLM was interested once again in purchasing a participation in the new merged company. On 12 January 2009, Air France-KLM bought a 25% share in this company for €323 million. In 2008, it

13570-493: Was successful and made it to New York from London on November 28, 2023. Because it was a test flight, there were no fare-paying passengers. On May 19 it was reported that approximately 200 ex cabin crew were suing Virgin Atlantic for unfair dismissal during the redundancy process following COVID-19 pandemic . It was reported that they protected over 350 new hires who has only completed approximately 1 weeks training out of 6 rather than keep experienced older staff who had been with

13688-596: Was the largest airline company in the world in terms of total operating revenues, and also the largest in the world in terms of international passenger-kilometres . Air France-KLM, along with its partner Delta Air Lines , were in talks about investing with Japan Airlines , which is part of the Oneworld alliance (rival to SkyTeam) but was experiencing financial problems. Air France-KLM, along with Delta and Delta's rival, American Airlines ( AMR Corporation , part of Oneworld), discussed investments of $ 200–300 million to help

13806-513: Was the world's largest oil producer. However, their reserves were declining due to high demand. Therefore, the United States turned to foreign oil sources, which had a significant impact on the recovery of the West after World War II. Most of the world's oil was found in Latin America and the Middle East, particularly in the Arab states of the Persian Gulf. This increase in non-American production

13924-573: Was typically the most profitable period of the year. In November 1984 the airline launched a service between Gatwick Airport and Maastricht Aachen Airport in the Netherlands using a chartered BAC One-Eleven . In 1986 the airline added another Boeing 747 to its fleet and started a scheduled route from Gatwick to Miami . Additional aircraft were quickly acquired and new routes launched from Gatwick, such as to New York JFK in 1988, Tokyo Narita in 1989, Los Angeles in 1990, Boston in 1991, and Orlando in 1992. In 1987, Virgin Atlantic launched

#77922