ALLIANCE

TransWest Airlines has grown fast in the United States. To help it go

global it is entering alliance with Hong Kong-based Air Pacifica.
The two airlines have hired an external consultant to help ensure that
the alliance works.
One key area is airline catering and the two airlines have very
different approaches to this. TransWest uses outside suppliers,
whereas Air Pacifica handles all its catering in-house. TransWest uses
Omega Flight Services as its outside supplier for all its catering in the
UK and Europe. The alliance could mean much more business for
Omega, if they can cope.

TransWest Airlines
TransWest Airlines started off as a small domestic carrier, but soon
expanded, attracting many passengers with its philosophy of 'low-cost,
no frills' (very low fares and minimal service). Three years ago
TransWest began to fly to London and onto Europe. These services
have expanded further and now TransWest wants to go global and
reach right round the world. Frank Barnes, the company's CEO, thinks
the best way to do this is to form an alliance with an airline that will
give TransWest access to an important new market - the Pacific Rim.

Air Pacifica
Set up in Hong Kong in 1960, Air Pacifica quickly gained a reputation
for top quality service and reliability. Favoured by the business élite of
Hong Kong, it soon built a network in the area and began to fly to
Europe in the late 1980s. It has won many awards for its overall
excellence and especially for its outstanding catering. However, like
many other companies in the region, it was hit hard by the Asian
crisis. Its directors see that the future is in global networks and are
keen to see Air Pacifica form an alliance with a partner to give them a
way into the US.

4
 Omega Flight Services
When John Cooper bought the company five years ago it was facing
bankruptcy. But he has turned the company around through hard work
and determination. It has become a very successful in-flight services
company providing food and other services to airlines. Its biggest
client now is TransWest. Omega Flight Services has expanded and
invested heavily in making its operations as efficient as possible. John
Cooper wants the company to continue growing, but can this be
achieved without going into enormous debt?

TransWest Airlines
Frank Barnes
CEO
A resourceful entrepreneur who built TransWest Airlines up from a
small Seattle-based domestic operator into a world carrier. His
ambition now for the company is to go global.
He can be charming, but he is tough. However, he is open to
changes...
Larry Kaplan
Business Director
Holds an MBA from Harvard Business School. He learned his
management skills in the period when downsizing was current in the
US and joined Frank Barnes seven years ago. He quickly showed that
he's a man who gets things done, though he can be very direct.

Omega Flight Services

John Cooper
Managing Director
An entrepreneur, very keen to expand the business and prepared to
take risks. He's already heavily overextended financially, so can get
anxious. It is in his interests for the alliance to succeed.

5
Bob Robertson
Production Manager
A practical and efficient Scot. He sees problems with Omega's rapid
expansion and current production capacity. He is under pressure, not
least from difficulties with his Head Chef. He is constantly trying to
put a brake on John Cooper's risk-taking.

Fiona Wark
Personal Assistant to MD
She has been with John Cоореr from the start. Cool, capable and
efficient in dealing with the day-to-day problems.

Air Pacifica

Eddie Chan
On-board Services Director

Refined and cultured, Hong Kong Chinese, educated in the UK. He

has worked for Air Pacifica for fourteen years and sees his workforce
as a family. He cares deeply about Air Pacifica's reputation for high
standards of food and service.

Epstein Consulting Group

Anna Valdez
Management Consultant

Hired by TransWest Airlines and Air Pacifica to ensure that the

alliance merges harmoniously. Originally from Venezuela, she has
lived all over the world. She is experienced in helping make alliances
work. Her aim is to achieve win-win solutions.

6
PART 1 Friday June 30, Seattle, USA

Briefing

Read the articles below and answer the questions.

1. What reasons do airlines have for making alliances?

2. What problems can airline alliances face?
3. What is the economic outlook for the airline industry?
4. What are industry rumours saying about TransWest’s alliance
plans?

Huge growth in airline alliances

The growth in airline alliances has been very rapid over the past
decade. Alliances allow airlines to reach many more destinations and
often to cut costs too. To get that global reach, more and more
individual airlines are forming partnerships with others and sharing
their passengers. For passengers it means that instead of having to fly
to one destination and then get a new ticket for the next stage of the
journey, the ticket is issued all the way through even though they may
be flying on more than one airline. This makes for easier, faster
connections. However, not all passengers are happy about it. It really
depends on the standards being the same or better when a passenger
transfers from one airline to another.
High risk
For airlines the real problem is: can an alliance last? Research has
shown most airline alliances don't last - only a third survive for more
than three years. Airlines from different countries have their own
culture, history and ways of doing things. Despite the rewards, putting
them together can be a high-risk business.
Finance Review

7
 Airlines fasten safety belts!

Turbulence in the airline industry is now greater than ever. Analysts

are cutting forecasts, with traffic volume expected to grow at just 2%
this year as against 5.5% last year. The slowing down of the world
economy means that fares have fallen in some cases by as much as 30-
40%. Reports indicate some difficult times ahead.

The World Business Review

TRANSWEST SEEKING ALLIANCE PARTNER?

Frank Barnes, long-time boss of TransWest was not denying rumours

that he was seeking to enter an alliance. 'These days you can't stay
in your own backyard. The willingness to go global is crucial to long-
term success.' He would not say which airline he had in mind, but it
is believed that after having gone into Europe three years ago, he is
now looking towards Asia. This would make Air Pacifica, the Hong
Kong-based carrier, a likely partner as they too have been looking to
expand.
Airline News

A. Before you watch the video read these questions.

1. Who is Anna Valdez and where is she speaking?

2. What does she say is the most likely outcome for an alliance
between airlines?
3. Which two companies are hoping to make a new alliance and where
are they based?
4. What kind of business is Omega Flight Services?
5. Where is John Cooper going and who is he probably going to meet?
6. Does Anna Valdez say the alliance will succeed?

8
Watch the video and answer the questions above.
B. Watch the video again. Then select the correct answer.

1. Anna Valdez is a specialist in:

a) airline alliances. b) managing change. c) statistics. d) a) and b).
2. She works for a company that has been hired by:
a) TransWest Airlines. b) Air Pacifica. c) Epstein Consulting Group.
d) a) and b).
3. She gives statistics on intercontinental alliances that show:
a) only three alliances have succeeded. b) one third fail within three
years. c) two thirds survive past three years. d) one in three fails after
three years.
4. What number of airline alliances existed by 1993?
a) 20 b) 10 c) 363 d) 52
5. John Cooper is going to see his bankers because:
a) they want to give him money. b) he owes them money. c) he needs
to borrow more money. d) he wants to give them back money.
6. Bob Robertson is very busy at the moment because:
a) TransWest has scheduled more flights. b) the meeting with the bank
is crucial. c) he's put all the figures in order. d) he has enough to do
already.
7. Anna Valdez mentions two key concepts:
a) differences in culture and a willingness to change. b) a willingness
to change and managing. c) managing diversity and imposing change.
d) managing diversity and a willingness to change.
8. Anna Valdez says the alliance will fail if there is not a total
commitment to:
a) create a safe environment. b) share information. c) communicate.
d) a) b) and c).

C. Read the question then watch segment 4.15 - 4.37 again and
discuss.

John Cooper has to meet his bankers to ask to increase Omega's loan.
What impression do you think he wants to give them about himself
and Omega?
D. What is your impression of Anna Valdez?
9
Video vocabulary

A. Match the words or phrases in bold with the correct definitions

below.
'I specialise in an area of a) high risk where failure is the most likely
b) outcome.'
'One in three intercontinental alliances fails within the first three
years!... These are the c) brutal facts.'
'TransWest uses outside suppliers, whereas Air Pacifica handles all its
catering d) in-house.'
'Don't be late, then. This meeting's really e) crucial.’
'If the bank doesn't agree to this f) loan extension, we're in deep
trouble.'
'Omega's g) prospects are excellent and our h) revenue stream is
fully on target.
'Alliances fail when partners haven't analysed these differences
properly. They have failed to manage i) diversity.'
'A j) willingness to change when presented with a different way of
doing things is fundamental to success.'

Definitions

1. differences of e.g. culture, style, business practice etc.

2. result
3. something that could easily fail
4. within the company or organisation, done by company's own
employees
5. harsh, unpleasant, cruel
6. readiness to do something, without being forced to do it
7. chances of future success
8. money borrowed from a bank or financial institution
9. very important
10. regular flow of income into the company from particular activity
or source

10
В. Complete the sentences with the words or phrases (a-j)) above.

1. We now do all our basic printing ____________, using our own

computers and printers.
2. When you invest in an area of ____________, the rewards need
to be greater to compensate.
3. We have a very healthy____________ coming in every month from
all our retail outlets.
4. There's a____________ to do it, but unfortunately we have neither
the people nor the money so we can't go ahead.
5. We're waiting to hear what the____________ of their meeting is, as
it will affect our next move.
6. The vote was ____________. Everything depended on it.
7. ____________ for Internet commerce in the future look very good.
8. A multinational company has a wide ____________ of
nationalities and cultures working within it.
9. The chairman told the workers the ____________ facts. The
company was bankrupt.
10. The bank has approved our request for a ____________ of
£300,000 so now we can expand.

Functional language

1. That, ladies and gentlemen, is the central issue of my presentation

today.
2. To conclude ...
3. You have to ask yourselves two key questions: one ...two...
4. I am a specialist in / I specialise in ...
5. And now onto the second key concept
6. Let me introduce myself ...
7. So to summarise ...

11
PART 2 Sunday July 23, London

Briefing

Read the letter and article below and answer the questions.
1. Has John Cooper got the loan he was hoping for?
2. Why might the bank be concerned about lending Omega the
money?
3. Is everyone confident that the alliance between TransWest and Air
Pacifica will succeed?

Carnforth Bank City Branch

Business Centre
1-5 Highborne Street
LONDON
W14XT
Telephone:020793330
Mr John Cooper Fax: 020 792331
Managing Director
Omega Flight Services 10 July
Unit 3 Business Park Our ref: JW/ 20/7/TLR
Cranford Way
London W23 5НЕ

Dear Mr Cooper
Subject: Omega loan request
Thank you for the presentation you gave us of your company's
prospects and future strategy.
We were impressed with your plans for expansion and how you have
cut costs by rationalising. However, we are slightly concerned about
the low profit margins that you are making on certain contracts. We
are considering your request for a further loan of £450,000 and we
will let you know as soon as possible.

Yours sincerely
Peter Williams
Head of Loan Securities

12
 TRANSWEST-AIR PACIFICA ALLIANCE STILL ON GO

TransWest and Air Pacifica are currently waiting for approval

from the FAA. Industry reports are that the tie-up between the two
airlines is going ahead smoothly. Airline analysts however, have
doubts that the alliance will succeed. One said, 'Statistics show that
many alliances fail. We have two very different airlines here with very
different ideas. I think there is only a 50% chance of this working out
OK’ .
Airline News: July

Update
Are the following true or false?
1. Anna Valdez is head of TransWest.
2. TransWest is forming an alliance with Air Pacifica.
3. In her presentation Anna Valdez said that the majority of alliances
fail.
4. John Cooper is Managing Director of an airline.
5. Omega Flight Services provides all the transatlantic catering for
TransWest.

Looking Ahead

Omega needed an increase to its loan from the bank. What does this
say about its ability to expand further in the short term?

Video on
A. Before you watch the video read these questions.

1. Who is Larry Kaplan seeing tomorrow and why?

2. Who is coming over later in the week?
3. What does Frank Barnes want Larry Kaplan to do?
4. Who does the airline catering for Air Pacifica? Does TransWest
want to make any changes to this?
5. Which airline spends most on catering?
6. What is Larry Kaplan's main question for Omega?
13
Watch the video and answer the questions above.

B.Watch the video again. Then select the correct answer.

1. Frank Barnes wants the catering deal finalised:

a) after the board meeting on Monday. b) before the board meeting on
Friday. c) within five days. d) in a week's time.
2. Larry Kaplan has just visited:
a) Warsaw, Vienna and Paris. b) Paris, Berlin and Warsaw. c) Paris,
Warsaw and Sienna. d) Paris, Warsaw and Venice.
3. Omega has been providing catering for TransWest:
a) since last year. b) since TransWest added extra flights to Europe. c)
for five years. d) for three years.
4. TransWest has an average catering spend of ____________ of
operating costs.
a) 15% b) 5% c) 13% d) 50%
5. John Cooper says Omega can:
a) consolidate. b) expand. c) consolidate or expand. d) consolidate
and expand.
6. Larry Kaplan says the point of alliances is:
a) the seats you can fill and the savings you can make.
b) the seats you can save and the revenues you can make.
c) the savings you can make and the seats you can save.
d) the savings you can make on the cost of the seats.
7. When John Cooper agrees that Omega can expand even further,
Bob Robertson is:
a) pleased. b) panicking. c) worried. d) sad.

Character assessment

Read the questions then watch segment 7.56-9.34 again and

discuss.

1. What is Larry's reaction to the tight schedule?

2. How does Larry react to the suggestion that Anna Valdez could
help?
3. Does Frank think Larry can succeed on his own?
14
D. In each pair, which description best fits Larry Kaplan's
character?

decisive / hesitant confident / shy ambitious / easy-going

lazy / energetic dismissive of others' opinions / considers others'
opinions carefully

Video vocabulary

A. Match the words or phrases in bold with the correct definitions

below.
'I want you a) to wrap up Air Pacifica's catering with Omega.' (AmE
idiom)
'I know I can b) count on you, Larry.'
'She's been looking at the c) synergy between us.'
'... she's d) fixing up a joint marketing proposal.' (AmE idiom)
'You're e) coping OK with all the extra flights we scheduled this
year?'
'Our goal is to become a major f) global player.'
'... this new relationship with Air Pacific is gonna mean changes, it's
gonna mean g) rationalising...'
'TransWest has an average catering h) spend of 5% of operating
costs.'
'As you know, since the industry i) deregulated, any airline that wants
to survive has to think globally.'
'We increased market share and improved j) margins.'

Definitions
1. depend on
2. a company that operates world-wide
3. additional advantages that are produced by two companies or
parties combining their resources
4. to arrange or complete something
5. cutting costs and reducing manpower to make a business more
effective
6. the difference between the price something is sold for and the cost
of producing it
15
7. to deal with, without any major problems
8. to complete a deal, a business arrangement, a meeting
9. the amount of money spent by a company on a particular activity
10. to remove or reduce the number of controls

Complete the sentences with the words or phrases (a-j) above.

l. Many national telecommunications companies have hopes of

becoming a ____________ .
2. Can we ____________ the meeting by 5 p.m.? I have another
meeting then.
3. The airports are finding it difficult to ____________ with the
increase of traffic.
4. Delivery dates for that firm are really reliable. You can
____________ them to be on time.
5. First Class obviously has a much greater ____________ on catering
than Economy.
6. They sold a lot of tickets but the ____________ were so low they
hardly made a profit.
7. After ____________ only half the workforce remained.
8. The Internet website isn't finished yet. Our technical assistant is still
____________the links.
9. It is much easier to do business since the industry has
____________ because there are fewer restrictions.
10. When everyone in the company from the chairman to the cleaner
starts to work together it creates a tremendous ____________.

Functional language

1. Nice to see you again.

2. How're you doing? (AmE usage)
3. Where do we stand with the catering?
4. Bob, Let me answer that.
5. Can I get this clear?
6. You mean you're planning to restructure…?
7. I can't comment on that right now.
8. Let's leave that aside for a moment.
16
PART 3 Tuesday July 25

Briefing

A. Read the articles and memo below and answer the questions.

1. Who is helping to make the alliance a success?

2. Where does Frank Barnes work and why?
3. Why is Bob Robertson so pleased with his delivery staff?

FAA Approve Alliance

The FAA today approved the alliance between 'low-cost, no frills' US

airline, TransWest and Hong Kong's Air Pacifica. Anna Valdez of the
Epstein Consulting Group who has been called in to help on the
details, said, 'The two airlines have been making excellent progress on
the through-ticketing and sales arrangements'. Talks on the in-flight
catering are on-going.
New York Press World

CEO TO GO!

You might find today's CEO anywhere except at a desk. One of

the new breed of on-the-move bosses is Frank Barnes, head of
TransWest, who says he can't stand being stuck in the office. These
days, Frank prefers to ride around in a specially customised
limo and run his business on the go. 'I get more work done that way.
I'd ideally use a motorbike, but I don't think I would hear the phone if
I did', joked Frank.
Seattle Star

17
 OMEGA FLIGHT SERVICES
Memo
From: Bob Robertson 25/7
To: All Omega Delivery teams
Congratulations to all the delivery teams! You've done a great job
under all the pressure of the increased schedules. Omega's deliveries
are now - reckoned to be the fastest in the country. And for Paul
Binns, our van driver with the best record for consistency and speed,
two free tickets to New York donated by our delighted customers,
TransWest!

Update

Are the following true or false?

1. Eddie Chan will be arriving in London shortly.
2. TransWest's business goal is to become a major global player.
3. Air Pacifica is a 'low-cost, no frills' airline.
4. TransWest has a much lower catering spend than Air Pacifica.
5. John Cooper doesn't want to expand Omega any further.

Looking ahead

In his meeting with Omega, Larry Kaplan said:

'Suppose, flight traffic through London increases for us, the question
then is, can Omega expand to meet that increase?'
Bob Robertson started to answer that question. What do you think he
would have said if John Cooper had not interrupted him?

Video on

A. Before you watch the video read these questions.

1. Why is Bob Robertson worried about further expansion for Omega
at this time?
2. Is Omega making a lot of profit from the contract with TransWest?
3. What is Eddie Chan in London to do?
18
4. What does Larry Kaplan think of Omega's performance so far?
5. What does Frank Barnes ask Anna Valdez to do?

Watch the video then answer the questions above.

B. Watch the video again. Then select the correct answer.

1. Omega is running at a capacity of:

a) 95%. b) 90%. c) 80%. d)100%.
2. Omega's profit margins on the TransWest account are:
a) 12%. b) 15%. c) less than 12%. d) more than 12%.
3. Bob Robertson says the airline industry is:
a) just coming out of a downturn. b) just entering a downturn. c)
beginning to boom. d) still in the downturn.
4. Eddie Chan is:
a) Air Pacifica's Catering Manager. b) Air Pacifica's Managing
Director. c) Air Pacifica's Operations Director. d) Air Pacifica's On-
board Services Director.
5. Omega has got TransWest's costs down by an average of:
a) 50%. b) 12%. c) 15%. d) less than 12%.
6. Anna Valdez thinks the alliance between the two airlines might
have problems because:
a) one is American and one is from Hong Kong. b) they have two
different business styles. c) one airline's company language is not
English. d) they are based on different continents.
7. Before she leaves for London, Anna Valdez has to:
a) make new schedules for the airline. b) reschedule her plane ticket.
c) change the dates for some meetings. d) choose the date for the
London meeting.

Read the questions then watch segments 13.23-15.00 and 16.16-

18.03 again and discuss.

Which words below would best describe the relationships between

a) Bob Robertson and John Cooper?
b) Anna Valdez and Frank Barnes?
Friendly truthful respectful professional confrontational direct tense
19
Video vocabulary

A. Match the words or phrases in bold with the correct definitions

below.

'... we're running at 90% a) capacity now!'

'If we're not very careful, we're going to b) overextend ourselves.'
'... they've also forced us to c) cut our margins to the bone. We're
making less than 12% on the TransWest account.'
'If we d) let this opportunity slip through our fingers because we
can't deliver, TransWest will look elsewhere.'
'... the whole industry's only just recovering from the e) downturn.'
'We work to the client's f) specifications.'
'TransWest is highly erm ... g) cost-conscious ... He means cheap.'
'That's how the business is in the States. Cheap fares 'n' no h) frills.'
'I'll need to i) reschedule some meetings.'
'We were a j) wee bit busy here. ' (adj. ScotsE.)

Definitions
1. very concerned about costs
2. to change times of appointments/events
3. the amount something e.g. a factory can produce
4. little
5. to take on more than you can manage
6. to not take an opportunity
7. part of economic cycle when growth turns downwards
8. a description of how something should be done
9. services or extras above the very basic
10. to reduce something to the lowest level possible

B. Complete the sentences with the words or phrases (a-j) above.

1. These days if you aren't ____________ you find you can easily lose
money without realising it.
2. The Bargain Holiday Shop offers cheap holidays with no
____________.
3. Be careful not to ____________ yourself, or you may get into
20
 serious financial difficulties.
4. You'll have to ___________ the meeting. The chairman is getting
married on the same day.
5. I have looked at your ___________ and I can tell you now I cannot
do it for the price.
6. The boom ended and the economy went into a long ___________.
7. The factory had the ___________ to produce twice as many goods.
8. They ___________ the number of employees ___________, and as
a result the level of customer service fell badly.
9. He ___________ that once-in-a-lifetime opportunity
___________ his ___________.
10. Angus said that he'd drunk most of the whisky, but there might be
a ___________bit left if we were lucky.

Functional language

1. I'd like you to meet Eddie Chan, Air Pacifica's On-board Services
Director who's here to negotiate on their behalf.
2. Delighted to meet you, Eddie.
3. OK let's get down to business.
4. You've done a great job with the sales and the through-ticketing.
5. I'd appreciate it if you could get yourself over there.
6. I'll show you around later, if you like...
7. I'm fully aware of that, Bob.
8. Let's just wait and see what Larry comes up with.

21
PART 4 Tuesday July 25

Briefing

A. Read the extracts below and answer the questions.

1. Is the downturn in the Asian airline industry over yet?

2. How does the long-term future look for Air Pacifica?
3. What do you think helped Air Pacifica to win two awards?

IFCA CONFERENCE IN MANILA

Eddie Chan, Air Pacifica's On-board Services Director gave the

keynote speech at the conference. The downturn is coming to an end
and we are starting to recover, he told the audience of top international
airline executives. 'While our problems may not be over yet, the future
looks very positive. There are signs of significant future growth. Ours
is the fastest growing region on the planet today and Asian cuisine is
now renowned throughout the world. It's the equal to any in the world
and top class in-flight food is a great way to prove it!'
IFCA Conference Report

Economy Flight Bargains

Despite hopes that the Asian crisis has now passed, and that the
market is stabilising, large numbers of planes are flying with half-
empty seats. This has led to some significant price cuts in fares which
is good news for domestic Asian fliers. Economy fares have been
slashed in order to fill seats. Now is the time to take that trip!
Hong Kong Travel News

22
 CRYSTAL AWARDS
Congratulations to this year's winners
Once again Air Pacifica's in-house catering team have lived up to their
reputation for 'excellence and won Gold for category 1: In-flight Food
and Beverage Service. They also picked up the Silver for category 2:
In-flight Food Product of the Year, for their Chinese Squid Sauce.
Said Lo Hok who created it, 'We are all very proud; Our team has
been working together for a long time and we all want the very best.'
IFCA Yearly Review

Update

Are the following true or false?

1. Bob Robertson is worried that Omega will overextend itself.
2. Bob is happy about the profit Omega is making on the TransWest
account.
3. Anna Valdez has been asked to fly to London urgently.
4. Omega has spent a lot of money improving its performance.
5. Larry Kaplan is happy with Omega's performance to date.
6. Eddie Chan is in London to discuss ticketing and sales.

Looking ahead
1. What do you think will be Larry Kaplan's main objective in the
meeting with Eddie Chan?
2. Eddie Chan said that Air Pacifica had a very different philosophy to
TransWest. How do you think he regards the concept of 'low-cost,
no frills' airlines?

Video on

A. Before you watch the video read these questions.

1. What does Larry Kaplan think about Air Pacifica's in-house
catering spend?
2. What does Eddie Chan think about TransWest's approach?
3. Why did Air Pacifica drop the prices on Economy fares?
4. What are Eddie Chan's feelings about the future of the Asian
23
 economies?
5. Can Larry Kaplan see any advantages of keeping catering in-house
for Air Pacifica?
6. What is Frank Barnes' attitude towards the alliance? Does Larry
Kaplan share it?
Watch the video and answer the questions above.

B. Watch the video again. Then select the correct answer.

1. Larry Kaplan thinks John Cooper is running:

a) a cost-effective operation. b) a costly operation. c) a low-cost
operation. d) both a) and c).
2. Eddie Chan is proud:
a) of his own reputation. b) of TransWest's reputation. c) of Air
Pacifica's low costs. d) of Air Pacifica's reputation.
3. Air Pacifica's in-flight catering costs are higher than other Asian
airlines:
a) 200% b) at least 15% c) not less than 50% d) not more than 60%
4. Eddie Chan thinks the market:
a) is still going down. b) has begun to level out. c) is at its highest
level. d) is the same as before.
5. Eddie Chan believes keeping Air Pacifica's catering in-house is:
a) the best way to raise quality. b) the fastest way to cut costs. c) the
best way to keep the quality high. d) the best way to grow.
6. Eddie Chan says Air Pacifica invests in:
a) new equipment, training and raising Asian training standards.
b) services and training in cuisine. c) Asian training, services and
more staff. d) quality of training, raising standards of Asian cuisine,
quality of services.
7. Asian Rim air traffic has fallen by:
a) 50%. b) up to 30%. c) 60%. d) more than 30%.

Character assessment

C. Discuss these questions.

At the start of the meeting, Larry Kaplan says to Eddie Chan ' I think
we're going to get along just fine.' What is their relationship like: a) at
24
the start of the meeting? b) by the end of the meeting?
D. Read the question then watch segment 19:37-20:13 again and
discuss.
How does Eddie Chan react when Larry Kaplan implies Air Pacifica
should not keep catering in-house?

Video vocabulary

A. Match the words or phrases in bold with the correct definitions

below.
'OK, Eddie, let's get down to it. Just a kind of informal a) sounding
out.' 'He's running a pretty b) cost-effective operation.'
'So I was thinking, maybe the first thing we should look at is ways of
c) bringing Air Pacifica into line. '
'So your d) revenues are way down, right?'
'... we have all been suffering, but we believe that market has e)
stabilised now.'
'There are signs of f) significant future growth.' „ .
'TransWest seems to have taken a different route ... more g) cost-
driven, I believe?'
'When British Airways faced the downturn, it sold its catering h) arm
off altogether.' 'Listen, I've seen Eddie Chan and heard his i) angle on
Pacifica's in-house set-up.'
'Don't j) screw up on the catering.' (AmE idiom)

Definitions
1. opinion
2. fail or do badly
3. substantial, important
4. levelled out
5. part'or section of a business or organisation
6. getting other's views or opinions
7. keeping costs to a minimum
8. making someone do or think the same as you
9. making cost control the main priority
10. money that a company receives over a period of time from selling
goods or services
25
B. Complete the sentences with the words or phrases (a-j) above.

1. You have made too many mistakes already. Don't ____________

on this job, too!
2. I like your ____________ on this idea. I think we will try it.
3. We are pleased to state that ____________ improvements have
been made in revenues.
4. After some wild swings in prices, the Stock Market has now
____________ .
5. The Internet can offer retailers a ____________ alternative to actual
shops.
6. The government ordered all companies to make sure they
____________ their safety measures ____________ with the
regulations.
7. Before we have a full meeting, it might be a good idea to have a
____________ first.
8. In the 1980s IBM considered selling off its personal computer
____________ altogether believing it should concentrate on
servicing its large business computer networks.
9. Right from the start, because of its very low fares, TransWest was a
____________ company.
10. We are doing very well. The ____________ from our business are
right up this year.

Functional language

1. Let's get down to it.

2. I’ve been taking a look at the cost breakdowns you gave me.
3. From where I sit, it's not too clear where the benefits of keeping in-
house catering really are.
4. What exactly do you mean?
5. Let me remind you of one thing, Mr Kaplan.
6. Whatever.
7. I think we (all) need a break.
8. Take it easy!
9. I hear you.

26
PART 5 Wednesday July 26

Briefing

Look at the items below and answer the questions.

1. Match the areas of Omega Flight Services to the activities.

2. Bob Robertson was worried about further expansion. What
indicates he may have been right?
3. What problems do you think Bob Robertson may have with Marco,
his Head Chef?

Areas Activities
• dry store • cook food
• hot kitchen • prepare cold food
• operations room • prepare in-flight trays
• cold kitchen • load delivery trucks
• tray preparation • computerised monitoring of delivery and
• loading dock turnaround time
• store dry goods

Dear Mr Cooper
We were glad to hear from your Operations Manager, Mr Robertson,
that you are very pleased with the new Zenith Flowtrack system
recently installed by our engineers.
You will be aware, however, contract stated that the twelve
installments of £2,600 were to he paid on the 13th of each month. The
last payment does not appear to have been made. We are sure this
must be an oversight on your part and would be grateful if you could
make arrangements for immediate payment.

Yours sincerely,

F. A. Ferguson
Accounts Manager

27
 Memo
Telephone message for Bob Robertson
at 9.00 on Wednesday 27th July
Воb,
Call from Marco to say sorry but he couldn’t come in today.
Fiona
I get the feeling he may want more money!

Update

Are the following true or false?

1. Larry wants Air Pacifica to keep its present in-house catering.

2. Air Pacifica has a first-class reputation.
3. Eddie Chan thinks the downturn is here to stay.
4. Eddie Chan agrees that it is necessary to cut costs.
5. Eddie Chan wants TransWest to make some changes.
6. Frank wants the alliance to succeed at all costs.

Looking ahead

Do you think Eddie Chan will be happy to cut costs the way
TransWest has done? Has Omega got the know-how and facilities to
help Air Pacifica cut costs?

Video on

A. Before you watch the video read these questions.

1. What does Eddie Chan think about Omega's operation?
2. What are Eddie Chan's main concerns about TransWest's catering?
3. Is Bob Robertson sympathetic to Eddie Chan's concerns?
4. What is Bob Robertson's phone call about?
5. What is Fiona Wark's phone call about?
6. What does John Cooper talk about to Larry Kaplan?

Watch the video and answer the questions above.

28
B. Watch the video again. Then select the correct answer.

1. Omega significantly expanded because:

a) they wanted to get TransWest's catering. b) they took over
TransWest catering. c) TransWest increased its catering spend. d)
Omega got its costs down.
2. Omega prepares some Asian in-flight meals because:
a) they are cheaper. b) more and more people are travelling from
Asia.
c) they need to have menus that meet religious requirements. d) they
have a very wide choice.
3. Eddie Chan is worried about:
a) Larry Kaplan's attitude to him. b)TransWest's way of running an
airline.
c) the effects of the downturn. d) all of the these reasons.
4. Bob says in-flight catering is essentially about:
a) food. b) logistics. c) food and logistics. d) quality.
5. Omega has reduced TransWest's airport turnaround time per flight
by:
a) 25 minutes. b) 35 minutes. c) 45 minutes. d) 15 minutes.
6. Omega has saved money for TransWest by:
a) bulk-buying and cutting down wastage. b) cutting down on
duplicated effort. c) bulk-buying and cutting down on quality.
d) a) and b).
7. In Britain Air Pacifica buys:
a) no food at all. b) only fresh bread. c) only fresh supplies. d) only
fresh salads.
8. Bob Robertson wants to see the Head Chef's contract because:
a) he wants to give him a pay rise. b) he wants to see what it says.
c) the Head Chef is leaving. d) he wants to give him a new job.

Character assessment

Read the questions then watch the segment again and discuss.

Do you think Eddie Chan and Bob Robertson are being diplomatic
about Larry Kaplan? What do they really think of him?
29
Video vocabulary

A. Match the words or phrases in bold with the correct definitions

below.

'Cutting costs is practically an a) obsession with him ...'

'It's TransWest's whole b) philosophy that worries me.'
'In-flight catering is, as you know, essentially about two things. One is
the food, the other is the c) logistics of getting it to the aircraft.'
'It d) costs a fortune just to land here ...' (idiom)
'We've got our airport e) turnaround time down by 25 minutes per
flight.'
'As for the food itself, well, f) bulk-buying, cutting down on
duplicated effort, cutting down on the amount of g) wastage ...'
'... the only services you're using in London at the moment are for
h) restocking fresh supplies like bread and salads?'
'By the way, could you look out the Head Chef's contract for me? I
want to see what we're i) legally tied to.'

Definitions

1. contracted to in law
2. the practical arrangements necessary to make an activity succeed
3. to cost a great deal of money
4. replacing supplies that have been used with new supplies
5. when you become fixed on one aspect of something
6. business style and ideas
7. buying goods in large quantities which is cheaper than buying in
small quantities
8. the time spent on the ground between flights
9. items that are not used and have to be thrown away

B. Complete the sentences with the words or phrases (a-i) above.

1. The shops are ____________ now in time for increased sales in

the run - up to Christmas.
30
2. He was always on time - it was like an ____________.
3. Supermarkets can get lower prices by ____________ from the
manufacturers.
4. The basic ____________ of TransWest is to offer cheap fares.
5. Shortening the ____________ time at large expensive airports is an
important way of saving costs.
6. With some loans you can find yourself ____________ accepting
insurance as well to make sure you can pay it back if you lose your
job.
7. You can't afford a Rolls Royce! It ____________!
8. The ____________ of getting food to the victims of the
earthquake in the mountains were very difficult.
9. Serving in-flight food that people do not like means you end up
with a lot of ____________.

Functional language

1. I see, but more and more people from Asia are travelling now.
2. I understand your worries about quality, Eddie.
3. There are ways of significantly cutting costs without losing quality.
4. Excuse me a minute.
5. That's very interesting.
6. If I understand it correctly, Eddie, the only services you're using...
7. Actually, Bob, John was wondering whether you'd mind picking her
up from her hotel?
8. I just wanted a brief word before we meet the others.

31
PART 6 Wednesday July 26

Briefing

Read the extracts below and answer the questions.

l. What has happened to the British reputation for cooking?

2. Give some reasons why London's restaurants are so varied.
3. Does the Lawn restaurant serve traditional British food?
4. What does Bob Robertson's friend want him to do?

MOVE OVER PARIS LONDON’S THE PLACE NOW!

THE BRITISH HAVE never been renowned for their cooking.
Cuisine was a French word, but top London chefs are changing all
that. They are no longer afraid to innovate and the results are good
enough to compete with the French.
London is a truly multi-cultural capital which also makes for an
extraordinary range of food. As immigrants from all over the world
have arrived they have opened restaurants specialising in their own
cooking. Foreign travel and popular cookery programmes on TV have
also dramatically increased interest in, and demand for, good food
among the British. All this, together with year-round tourism, has
dramatically increased variety and quality of food in the capital's
restaurants.
Our recommendation this week is the Lawn restaurant for its excellent
food and friendly service.

Dear Bob,
Hope you’re OK and your job isn’t driving you mad! Why don’t you
come up here for a wee break and clean out your lungs with good
fresh Scottish air? Be great to see you. I’ve a bottle of good malt
whisky put aside to temp you.
All the best, Angus

32
Starters

Fish Soup, Crouton & Rouille £3.95

Vegetables and Mozzarella Bruschetta £6.00
Squid Nero Risotto, Spring Onions Starter £8.50 Main £11.50
Crab Linguini Starter £8.50 Main £11.50
Carpaccio of Tuna, Noodles&Watercress Salad, Italian Dressing £7.50
Smoked Salmon Platter £8.50
Thai Spiced Fish and Crab Cake, Sweet Chilli Sauce £6.50
Oyster and Shallot Vinegar each £1.25
Rocket Salad, Roasted Tomatoes, Parmesan Shavings £5.95
Creamy Salt Cod, Bacon, Poached Egg £5,50
Terrine of Foie Gras & Chicken Liver, Pickled Girolles, Brioche
£7.50

Update

Are the following true or false?

l. Bob Robertson showed Eddie Chan around the Hot kitchen and
preparation areas.
2. Eddie Chan is happy with TransWest's business style.
3. Omega has focused mainly on improving the logistics of its
operation.
4. Omega is behind with its payments on new equipment.
5. Larry Kaplan is worried that Eddie Chan may not like his attitude to
cost-cutting.

Looking ahead

Anna Valdez has now arrived. Do you think Frank Barnes will be
right - will she be helpful to the future negotiations?
How do you think she and Larry Kaplan will get on? Remember Larry
said he could handle the catering side of the alliance himself.

33
Video on

A. Before you watch the video read these questions.

1. How do Anna Valdez and Bob Robertson get on?

2. Is the atmosphere at the bar and restaurant formal or informal?
3. What has Anna Valdez already heard about Larry Kaplan?
4. How would you describe the restaurant?
5. What are their topics of conversation in the restaurant?

Watch the video and answer the questions above.

B. Watch the video again. Then select the correct answer.

l. Anna Valdez at first thinks Bob Robertson's accent is:

a) American. b) Irish. c) Scots. d) English.
2. Anna Valdez is originally from:
a) the USA. b) South America. c) Venezuela, d) b) and c).
3. Who does Anna Valdez say she thinks is charming?
a) Larry Kaplan b) Bob Robertson c) Frank Barnes d) Eddie
Chan
4. What reason does Larry give for having downsized the workforce?
a) To cut costs. b) Carrying out orders. c) Too many workers. d) The
downturn.
5. The restaurant they visit used to be a factory making:
a) tennis racquets. b) footballs. c) golf clubs, d) cricket bats.
6. What is the traditional Scottish dish that Bob Robertson mentions?
a) Duck. b) Lemon sole. c) Whisky. d) Haggis.
7. Eddie Chan's son is coming to London to study:
a) sport. b) Economics. c) Manchester. d) Business studies.
8. Anna found watching a cricket match:
a) exciting. b) calming. c) noisy. d) boring.

Character assessment

Read the questions then watch segment 28.41-29.41 again and

discuss.
34
l. What does Anna say next?
ANNA: I've also heard a lot about you, Mr Kaplan.
LARRY: Not all bad, I hope.
ANNA:_______________.

Why do you think she says that? What result might this have on
Larry's subsequent behaviour?
2. What does John Cooper try to do?
Video vocabulary

A. Match the words or phrases in bold with the correct definitions

below.
'He's a very a) charming man.'
'What do you expect, Larry, when you are always, to use the b)
fashionable word, c) downsizing the d) workforce?'
'It's a little bit e) rich for my taste. I'll take the lemon sole.'
'I don't think they serve f) haggis here - it's a bit of g) an acquired
taste.'
'I was taken to a cricket match at h) Lord's.'
'When you get one of the teams playing where they i) live and
breathe cricket, like India or the West Indies, it's not so restful, I can
assure you.'

Definitions
1. employees, staff
2. reducing the number of employees in order to save money or
increase profits
3. a sports ground in London known as the home of cricket
4. very pleasant, able to please another person
5. food containing a large amount of fat, cream, butter, eggs, etc.
6. а taste that is not always immediately liked, that needs to be tried
several times before it is appreciated
7. have a passionate interest in
8. traditional Scottish dish made from heart and other organs of a
sheep
9. in fashion, popular at the moment

35
B. Complete the sentences with the words or phrases (a-i) above.

1. Every period has ideas that become very ____________ for a time,
then slowly lose their appeal.
2. The management called it ____________ , the employees who
lost their jobs called it a disaster.
3. Each nation seems to have at least one dish that all the locals love,
but which for foreigners is at first rather unpleasant, as it is an
____________.
4. The chairman of the company said unless the whole ____________
supported the changes, they would not succeed.
5. Being ____________ to those above you never hurt anyone's
career.
6. These desserts are delicious, but unfortunately they're too
____________ for me. If I eat them, I suffer later. They don't
agree with me at all.
7. She ____________ her work. She's lucky to have found something
she really wants to do.

Functional language

1. Are you Ms Valdez by any chance?

2. You must be Larry Kaplan.
3. Very pleased to meet you.
4. Please call me Anna.
5. I’(ve) heard a lot about you from Frank.
6. Isn't it strange that all these games...
7. The funny thing is I'm the one who plays golf and it's Bob who
plays cricket.
8. Shall we go through and eat?
9. What would you recommend?
10. Sounds delicious.

36
PART 7 Thursday July 27

Briefing

Look at the charts and answer the questions.

1. John Cooper took over Omega five years ago. What was the
turnover for Omega in year 1?
2. In which year did turnover reach $4,000,000?
3. By approximately how much did Omega's turnover exceed its costs
in year 4?
4. Omega took over the TransWest account three years ago. What
percentage of total costs did food account for in the first year?
5. What is the projected change in percentage of logistical costs from
the first year to the fourth year?

37
Update

Are the following true or false?

l. Anna Valdez meets Bob Robertson at the restaurant.

2. Anna Valdez gets on very well with Bob Robertson.
3. Anna Valdez had heard a lot about Larry Kaplan.
4. They talk only about the alliance during the meal.

Looking ahead

Will Omega's improvements in logistics be enough to convince Eddie

Chan that he needs their help?

Video on

A. Before you watch the video read these questions.

1. Why has Omega had to expand its production over the past three
years?
2. What are the two main cost elements of in-flight catering?
3. In which area has Omega made the greatest cuts to costs?
4. Why is it so important for Omega and TransWest to reduce down-
time?
5. How does Larry Kaplan react to Anna Valdez's advice about
dealing with Eddie Chan?
6. What does Eddie Chan now feel about TransWest's attitude to the
alliance?

Watch the video and answer the questions above.

B. Watch the video again. Then select the correct answer.

1. Over the last three years TransWest flights have gone from four to
a) eight, b) fifteen, c) thirteen. d) twenty.
2. Three years ago logistical costs took up of total costs.
a) 35% b) 45% c) 55% d) 65%
38
3. Omega's operational success depends on:
a) total costs. b) higher turnover. c) reducing turnaround time. d)
raising revenues.
4. Omega keeps in constant radio contact with its delivery trucks so
that:
a) they can deliver the right meals. b) they can save on wastage. c)
they can deliver at the right time. d) a) and c).
5. Omega has invested in:
a) new kitchens. b) a computerised operations room. c) radio contact
for delivery trucks. d) a) b) and c).
6. Omega has cut wastage by:
a) 40%. b) 14%. c) 35%. d) 17%.
7. Omega has gained a total cost saving of:
a) $1,300,000. b) £1.3 million. c) $1,000,300. d) £1,300,000.
8. Larry Kaplan thinks that:
a) AnnaValdez should get her head out of the clouds. b) Anna Valdez
should give John Cooper advice. c) Eddie Chan has his head in the
clouds. d) Bob Robertson should give Anna Valdez advice.

Character assessment

Read the questions then watch segment 36.40-38.03 and discuss.

1. How does Larry Kaplan view Frank Barnes' real purpose in the
alliance?
2. Does Larry appreciate Anna's advice?
3. What does Anna mean by a win-win solution?
4. Why do you think John asks Eddie about his concerns?

Video vocabulary

Match the words or phrases in bold with the correct definitions

below.

'It’s been a) a challenge and I'm proud to say we've risen to it.'
'Our b) turnover has been rising rapidly over the last five years ...'
'... we c) focused mainly on logistics where the biggest costs were
39
d) incurred.'
'... but cost-efficient without e) sacrificing quality.'
'Why? Because the shorter the f) down-time, the greater the saving.'
'... this has incurred considerable g) front-end costs.'
'We've h) invested heavily in a new Operations Room.'
'... if you want to do something really useful, help Eddie i) get his
head out of the clouds.'
'We need j) a win-win solution here.'

Definitions

l. when both sides benefit or are successful

2. costs you have to pay before an investment can start making money
3. to give up one thing for the sake of another
4. a difficult task, but one you want to achieve
5. to be realistic
6. to become liable for something like a debt or costs
7. time the plane is not flying or being productive
8. to concentrate on one thing
9. to spend money on something that will be useful and will help you
make more money
10. total income before costs

B. Complete the sentences with the words or phrases (a-j) above.

l. I wish he would ____________. He's being so unrealistic about this

new project.
2. Businesses are often advised to stay ____________ on their core
activities.
3. Compared with a normal retail outlet, setting up on the Internet has
very low ____________.
4. Faced with rising Japanese car imports, US car-makers in the 1980s
faced a huge ____________.
5. To get the price that low, they must have been ____________
quality by using cheap parts.
6. In the building trade, for example, there's ____________ when the
weather is so bad it makes work impossible.
40
7. Stephen Covey uses the term 'win-lose' to indicate when one person
in a negotiation wanted to beat the other, and '____________' when
both sides could succeed.
8. The profit margins are very low so they need a huge ____________
to make money.
9. They had to build a new subway to the airport so naturally they
____________ extra costs.
10. In order to cut fuel costs, the airline ____________ in new fuel-
efficient planes.

Functional language

1. It's good to see you all this morning...

2. I'll hand it over to you, John.
3. Well, as you all know, ...
4. There are two main cost elements: one ... two
5. As a result, we've cut wastage by...
6. Let me give you some examples.
7. And let me emphasise...
8. Let me illustrate the point.
9. As you can see,...
10. If you take a look at the first year,...

41
PART 8 Thursday July 27

Briefing

Look at the menus and article below and answer the questions.

l. What are the main differences between the menus? Think about
choice and type of food.
2. What is a core competence?

air pacifica TransWest

Business Flyer Menu AIRLINES
Business Class Menu
Hors d'oeuvres
Tiger Prawn Salad and Noodles Appetizer
with Chinese Squid Sauce Prawn Cocktail
Teriaki Chicken Wings
Won Ton Soup Main course
Main Course Coq au Vin
Crispy Beijing Duck with Peppers Cold Smoked Trout with Caper
and Noodles Mayonnaise
Chinese Sea Bass roasted in Stuffed Peppers and Pasta
Walnut Oil (served with a Salad)
Beef Wellington à la Macao
Korma Badam Malai Dessert
(Chicken in Saffron Cream) Tiramasu
all served with fresh vegetables Blueberry Cheesecake
Dessert Ice-cream
Lemon Ice Parfait
Pear in Barola with Cinnamon Followed by Coffee and
Lychees Liqueurs
Chinese Honey Toasted Pancakes

Champagne and Wines

Coffee Liqueurs

42
 Core competence:
a vital business concept

Most companies define themselves in terms of what they sell, but new
management theory says they should define themselves in terms of
their unique strengths or core competence. A core competence is
something that a company does really well, that adds customer value,
and its competitors find hard to match. It can be transferred to other
areas and so open up new opportunities.

Update

Are the following true or false?

l. John Cooper gave a presentation about new items on the menu.
2. There are two main cost elements to in-flight catering: meals and
the logistics of loading the meals onto the aircraft.
3. Omega has invested heavily in new equipment.
4. Shortening turnaround time has been the key element for Omega.
5. Eddie Chan believes that Larry Kaplan does not value Air Pacifica's
unique strengths.

Looking ahead

Anna Valdez spoke of needing a win-win solution. Do you think this

will be possible given the opposing positions of Eddie Chan and Larry
Kaplan?

Video on

A. Before you watch the video read these questions.

1. Which class do Larry Kaplan and Eddie Chan discuss first?

2. Do they reach provisional agreement on this?
3. Does John Cooper agree that Air Pacifica's meals are better than
Omega's?
4. What does Anna Valdez say about standards when passengers are
43
 switched from one airline to another?
5. What is her conclusion about TransWest's catering spend?
6. What does Bob Robertson do about the chef?
Watch the video and answer the questions above.

В.Watch the video again. Then select the correct answer.

1. Anna Valdez wants each company to focus on its core

competencies and then:
a) try and harmonise them. b) cut costs. c) increase catering spend.
d) face economic realities.
2. Larry Kaplan says that TransWest's Economy fares are so low
because:
a) they fill the planes and have excellent standards of catering. b) they
keep their costs down and fly half empty planes. c) they keep costs
low and fill the seats on their planes. d) they are not concerned with
turnaround times and catering costs.
3. Eddie Chan is interested in getting Air Pacifica's:
a) menus up to TransWest's standards. b) costs equal to TransWest's.
c) turnaround times down to TransWest's. d) standards up to
TransWest's level.
4. John Cooper says that Omega has the capacity to deal with
increased traffic if:
a) Omega gets a clear proposal and keeps its own chefs. b) Omega
uses its own kitchens and gets a clear financial commitment. c)
Omega gets a clear financial commitment and uses Air Pacifica's
chefs. d) Omega gets a clear proposal and financial commitment.
5. In Economy Class Eddie Chan proposes that Air Pacifica should:
a) cut its spend, by out-sourcing to Omega, but have its own chef to
supervise meals and menus. b) cut its spend, by out-sourcing to
Omega. c) not out-source but keep catering in-house. d) not make
any changes.
6. Eddie Chan believes the real profit centre is:
a) Economy Class. b) Business Class. c) First Class. d) catering.

Character assessment
Read the questions then watch segment 38.59-39.17 and discuss.
44
Eddie Chan says there is another cost to consider. What is this? What
does this say about him?

Video vocabulary

A. Match the words or phrases in bold with the correct definitions

below.
'We do not want to a) compromise* our reputation.'
'Asian Business customers have come to expect this (quality). And we,
Mr Kaplan, will not b) compromise* on that.'
'But you'd agree your in-house catering spend is very high given your
c) fare structure.'
'Just imagine the cost savings if you d) out-sourced all your catering.'
'And you have the capacity to deal with increased traffic?'
'Certainly, if we're given a clear proposal and a clear e) financial
commitment'
'We would want our own chefs to f) supervise the meals and the
menus.'
'... Business Class - here is the real g) profit centre for both airlines.'
'But what is this alliance supposed to mean, everything down to its
h) lowest common denominator?'
'... they're only happy if the i) standards are at least as good.'
'So a j) standardisation of service, including quality of food, is
essential,'
* Note: the verb 'to compromise' has a different meaning in sentences
a) and b).

Definitions
1. part of a company's operation that is expected to produce profits
2. to employ an outside company to do work
3. the lowest level of quality
4. to reach an agreement by accepting less than you first ask for
5. to be in charge of, to oversee and ensure quality
6. levels of quality of product, service or ethics that are considered
acceptable
7. to do something which damages a good reputation
45
8. a firm agreement over costs and prices leading to a contract
9. the price and schedule of fares and the way they relate to each other
10. making the quality equal throughout

B. Complete the sentences with the words or phrases (a-j) above.

1. He's not very good. Someone needs to constantly___________ him.

2. We cannot start the work and actually start to spend money until
they give us a____________.
3. Many components of a car are not produced by the car company
itself but are ____________ to small companies specialising in
those parts.
4. The ____________ of an airline can be very complex depending on
everything from time of year to how far ahead you book.
5. ____________ means that in every hotel with that name you will
get the same size rooms, the same service and same kind of meals
all for the same price.
6. The bank will ____________ its good ____________ if it becomes
involved in a financial scandal.
7. We rarely have complaints. Our products are made to the highest
____________.
8. Each part of a business that makes money is called a ___________.
9. This is a quality product. We're not interested in appealing to the
____________.
10. It's pointless going into a negotiation without being willing to
____________ on at least some things.

Functional language

1. Let's take a look at Economy Class.

2. But you'd agree your in-house catering spend is very high?
3. Most definitely.
4. Let's see what we can agree on.
5. OK, Anna, you wanted to make a point?
6. Wouldn't you agree, Bob?
7. I think we need to focus on ...
8. So, let's say that I accept that in Economy Class we must …
46
PART 9 Thursday July 27

Briefing

A. Read the articles below and answer the questions.

1. Why are 'no frills' airlines not as popular as they were?
2. What are some of the new ideas for airlines?
3. Why hasn't the alliance been finalised yet?

NO FRILLS ON WAY OUT

CUSTOMERS WANT MORE
Customer surveys suggest that the public's love affair with 'low-cost,
no frills' airlines is coming to an end. A much smaller number of
people are now influenced by price alone: 'People want service, they
want to feel special when they fly', reported one recent survey. Now
airlines have to give added value to keep their competitive advantage
and not fall behind their rivals, so they are trying to come up with new
ideas: it's no longer about in-flight movies and larger seats, but now
there are beds for long-haul flights. And you can even get your hair
cut and a manicure or a massage to help you unwind before you go off
for a good flight's sleep.
News on Sunday

AIRLINE ALLIANCE STILL UNCERTAIN

Industry sources are still uncertain whether the new alliance between
TransWest, the US 'No frills' airline, and Air Pacifica, based in Hong
Kong is going ahead. Although it is understood that agreement has
been reached on many aspects, there are still areas of difficulty. As
one analyst said, 'Given that the two airlines are very different, it was
never going to be easy. With the history you have in this industry of
failed alliances, nobody at either airline is getting out the champagne
just yet'. A TransWest spokesman said discussions were continuing in
London and an announcement would be made soon.
Airline
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Update

Are the following true or false?

1. Eddie Chan is not worried about Air Pacifica losing its excellent
reputation.
2. Bob Robertson thinks Air Pacifica could benefit by using Omega to
cut logistics costs.
3. Eddie Chan has agreed to cut the catering spend in Economy Class,
but only if his own chefs supervise the menus and meals in London.
4. Larry Kaplan has agreed to raise the standard of TransWest's
Business Class to bring it into line with Air Pacifica's Business
Class.
5. Bob Robertson has just fired the Head Chef.

Looking ahead

Will Anna be able to bring the two sides together? If she succeeds,
what will it all mean for Omega?

Video on

A. Before you watch the video read these questions.

l. Do they reach agreement on all the catering issues?

2. Why does John Cooper think having only two classes would save
money?
3. What does Anna Valdez suggest putting in the place of First Class?
4. Will Omega supply meals for Air Pacifica flights from London?
5. What will TransWest do about Business Class?
6. Who do you think is going to Scotland with Bob Robertson?

Watch the video and answer the questions above.

B. Watch the video again. Then select the correct answer.

1. TransWest is going to:

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a) improve Air Pacifica's reputation. b) spend more money on
Business Class. c) benefit from Air Pacifica's reputation. d) b) and c).
2. Larry Kaplan is concerned that if TransWest upgrades Business
Class:
a) it will be no different from First Class. b) it will be the same as Air
Pacifica. c) it will be better than First Class. d) First Class will be
abolished.
3. The new Super Business Class that Anna suggests will:
a) be the same as the old Business Class. b) have beds instead of seats.
c) combine First and Business Class. d) be cheaper than the old
Business Class.
4. Anna suggests that private cabins would be:
a) for the new Super Business Class. b) for those who used to fly
First Class. c) for those flying to Hong Kong. d) a way of improving
Business Class.
5. The agreement means Air Pacifica:
a) will send an Air Pacifica chef to London to work with Omega. b)
will use Omega to provide its catering facilities in the UK. c) will
consider combining its First and Business Class. d) a) b) and c).
6. TransWest has agreed to:
a) put in cabins for all its Business flights. b) employ Air Pacifica
chefs.
c) spend more money on its Business Class catering. d) a) b) and c).
7. The alliance is going to:
a) immediately introduce a new sleeper service. b) introduce the new
sleeper service on flights to Hong Kong only. c) study the idea of a
new sleeper service and decide later. d) call the new sleeper service
Super Business Class.

Character assessment

Read the questions then watch the segment again and discuss.

Why do you think Anna Valdez spoke of the mutual benefits to the
two airlines? What was she trying to get both Larry Kaplan and Eddie
Chan to see?

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Video vocabulary

A. Match the words or phrases in bold with the correct definitions

below.

'So I hope we can all finally see the a) mutual benefits of this
alliance.' 'OK, but if you b) upgrade Business Class, what's gonna c)
distinguish it from First Class?'
It would give us d) added value and e) competitive advantage.'
'A sort of f) deluxe sleeper service ... yes, and make that the reason to
charge more.'
'Air Pacifica will g) subcontract catering in the UK to Omega.'
'We'll examine the h) implications of introducing a sleeper service.'
'Come on you i) miserable so-and-so!'

Definitions

1. to improve the quality of a product or service

2. the increased value or benefits provided by a product or service
3. the highest quality product or service
4. the likely results (of taking a certain action) which must be
considered
5. advantages that both sides can share
6. to make the difference clear between two things
7. a mild form of abuse against a person who is not sharing your
happiness
8. something you offer to customers that your business competitors do
not
9. to pass on part of the total job to another company

B. Complete the sentences with words or phrases (a-i) above.

1. One of the early examples of ____________ on airlines was the

introduction of free feature films for long-haul flights.
2. Computers go out of date so fast that the company is constantly
having to ____________ them.
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3. When making a film on location the production company will
usually ____________ the catering to a specialist company.
4. The biggest Internet company in Britain lost most of its
____________ when its competitor started to provide Internet
access free of charge.
5. We have three levels of service, each a little more expensive: basic,
superior and _____________, which is the highest quality.
6. Unless you take an interest in cars, these days it's hard to
____________ one from another, they all look so similar.
7. We will have to look at the ____________ of doing that. It has
never been tried before.
8. There are ____________ in this deal. Both companies will get more
customers.
9. He really is a ____________! He didn't smile even when he won
the lottery!

Functional language

1. So I hope we can all finally see the mutual benefits of this alliance?
2. Well, here's an idea we've been considering...
3. Are you seriously suggesting we say no to that?
4. You obviously have no idea what we need ...
5. We'll examine the implications of...
6. So are you all happy with the points we've agreed ...
7. Absolutely fine by me.
8. We have a deal.
9. I think we can call it a day.

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