News

Author Archive

Unnamed buyer found for bmibaby

Friday, February 3rd, 2012

A deal has reportedly been struck between Lufthansa and an unidentified company based in the UK for bmibaby, the budget offshoot of BMI. The Castle Donington based airline has not revealed any financial details, but has said that the transaction could be finalised before the end of the quarter. However, the deal is not exclusive which means that other parties could still become involved in the auction.

BMI said that the sale of bmibaby would involve 100 per cent of the airline. The carrier added that the buyer has said that it intends to keep staff on at Belfast City, Birmingham and East Midlands airports and wants to develop the company to provide low cost fares across Europe.

BMI said that bmibaby would continue operating under the banner for the time being and that it was pleasing that the business will continue as an independent carrier. Bmibaby currently operates two Boeing 737-500s and 12 Boeing 737-300s. Figures published by Credit Suisse show that the airline made a 120 million euro loss last year.

Last month, Germany’s Intro Aviation said that it might be interested in making an offer for bmibaby. Although it is not the company currently involved in the deal with Lufthansa and BMI, a spokeswoman for the firm said that she could not comment on whether it was still interested or not.

Last December, Lufthansa agreed to sell BMI to British Airways owner International Airlines Group in a deal worth £172.5 million.

Son of senior US official banned from leaving Egypt

Friday, January 27th, 2012

The son of the US Transport Secretary is not being permitted to leave Egypt. Sam LaHood, son of Ray LaHood, was prevented from boarding a flight following a raid by the authorities on the offices of International Republican Institute, the non-profit pro-democracy organisation he works for.

The military government in Egypt has said that it will be investigating the funding of all such human rights and pro-democracy organisations currently operating within its borders. The authorities have said that foreign interference into how Egypt conducts its affairs will not be tolerated. The government has so far conducted raids on another 17 organisations.

Mr LaHood was stopped by an official in Cairo on Saturday as he tried to pass through the airport. He said that he asked her why he was not being allowed to fly, to which she replied that she did not know. The 36-year-old was then given back his passport and told he would be allowed to leave the airport.

According to Mr LaHood, 300 NGOs are currently being investigated by the authorities. Michael Posner, a US State Department human rights official, said that the move by the Egyptian government raised questions over its intention to move towards democracy following last February’s uprising against Hosni Mubarak.

Mr Posner said that if the issue was not addressed, future aid to Egypt could be compromised. Although the list of those not allowed to leave Egypt has not yet been made available, other NGO officials believe the move is directly related to the recent raids.

Festive season sees rise in drink drive arrests

Friday, January 20th, 2012

December’s crackdown on drink and drug drivers resulted in over 7,200 arrests. The AA said it was disappointed by the figures which were up on the past couple of years. However, the organisation conceded that better weather last month meant that more people were choosing to get behind the wheel.

Last year the poor weather meant that more people decided to stay at home over the festive period. According to road safety campaigners, the figures show that messages about the dangers of driving after drinking alcohol are not getting across. Figures released by the Association of Chief Police Officers show that younger drivers are more likely to drink drive.

The rate of offending for people below the age of 25 is 5.7 per cent compared to a 4 per cent rate for drivers over the age of 25. Detective Chief Constable Suzette Davenport of the Northamptonshire Police said there was a definite correlation between higher accident rates and drink driving.

Routine tests find that 4.1 per cent of drivers are over the limit, but tests conducted after an accident show that 7 per cent of motorists have had too much to drink. DCC Davenport said that driving while under the influence puts at risk more than just a driver’s safety.

She explained that being arrested can result in the loss of a licence, a prison term and being sacked from work. She added that even one drink can affect the way in which someone drives and advised that people who have drunk should stay away from the car.

Hammersmith flyover safe for light traffic

Friday, January 13th, 2012

London’s mayor, Boris Johnson, has announced that the Hammersmith flyover in west London is to be reopened to light traffic. The road has been closed since before Christmas after it was found that some of the steel cables supporting the concrete had been damaged by the gradual seepage of salt water.

The route-way was originally designed to have its own heating system so that grit and salt would not be needed in the event of ice and snow. However, the system appears not to have worked, and the structure is now decaying.

On the average day around 90,000 vehicles utilise the route which is half-a-mile long. Although Transport for London was not specific about the opening times for the road, it will still be closed to larger vehicles such as coaches and HGVs.

In the coming months, engineers will work at strengthening the structure, but the authorities are still advising drivers to avoid the route if possible. TfL has assured that the route will be running as usual, once new cables have been fitted, well ahead of this summer’s Olympic Games.

COO for surface transport, Garrett Emmerson, said the reopening of the flyover would greatly reduce the congestion motorists have been experiencing in the west of London over the past weeks.

Thomas Cook announces board departures

Friday, January 6th, 2012

Thomas Cook’s boardroom is to be radically revamped as three of its non-executive directors announce their departures. Stena Line’s former chief executive Bo Lerenius is due to announce his retirement when the company meets for its annual general meeting next month. Mr Lerenius last year stepped down as chairman of Mouchel after the firm issued profit warnings.

Joining Mr Lerenius will be Peter Middleton, who is a former CEO of Thomas Cook, and David Allvey. In a statement, Frank Meysman, the travel group’s chairman, said the move would allow him to push forward with redevelopment plans and give him more flexibility in the boardroom.

He added that he wished those who were departing luck for the future and thanked them for all they had done during an extremely difficult period. Interim chief executive Sam Weihagen is looking at selling off some parts of the business as part of a far reaching strategic review. He took over from former CEO Manny Fontenla-Novoa in August who left the group after several profit warnings had been issued.

Thomas Cook is looking to wipe £500 million from its debt of £891 million. At the end of last year, the company announced plans to close 200 of its outlets and cut as many as 1,000 jobs in the UK. The firm said it wants to make savings of around £110 every year and also said it will be reducing its fleet of planes from 41 to 35.

In the last financial year Thomas Cook was forced to publish losses of £398 million, and announce a cash shortfall of £100 million.

Airline chiefs again calling for APD abolition

Friday, December 30th, 2011

The bosses of Ryanair, easyJet, Virgin Atlantic and British Airways parent International Airlines Group, have once again come together to put pressure on the government to abolish Air Passenger Duty. The demand is being made ahead of the introduction of the European emissions trading scheme which will begin on 1 January.

In a joint statement IAG’s Willie Walsh, Carolyn McCall from easyJet, Michael O’Leary from Ryanair, and Virgin Atlantic CEO Steve Ridgway explain that APD is no longer necessary as ETS will make European airlines carbon neutral. APD was originally introduced as a way of getting UK airlines to offset the amount of CO2 they were producing.

The statement points out that the £2.5 billion per year raised by APD is going into the government’s coffers rather than towards helping the environment. Ministers have said they would like to see the revenue created by APD increase to £3.6 billion by the year 2016.

The airline chiefs also point out that by the end of the decade, UK carriers will be paying 400 million euros annually under ETS. The statement also says that airlines are already doing their bit to reduce the environmental impact of aircraft and that APD actually hampers those efforts.

When ETS is introduced it will apply to all carriers flying in and out of European airports. A number of foreign governments have said that the scheme is contrary to international law and are threatening retaliation. Any airline refusing to conform will be heavily fined and could be banned from European countries.

IAG buys BMI from Lufthansa

Friday, December 23rd, 2011

Virgin Group boss Sir Richard Branson has said he intends to fight a deal between Lufthansa and British Airways owner International Airlines group for the control of BMI. The agreement, which is worth £172.5 million, would see IAG increase its share of the take-off and landing slots at Heathrow significantly exceed the 50 per cent mark.

Virgin claims that a monopoly at the airport would be damaging for business, the consumer and Britain. Before IAG takes control of BMI, the competition regulators will have to examine whether or not this is the case. In the past, the European Commission has denied tie-ups between airlines, but this is usually because of lessened competition on particular routes, rather than dominance at airports.

Lufthansa and IAG are hoping that the sale will be completed within three months. IAG chief executive Willie Walsh said that there will be a significant restructuring of the loss-making BMI, and admitted that there would be a loss of some jobs. However, he said that in the future more jobs would be created.

In 2010, Lufthansa said that BMI had made losses of £153 million. The carrier currently employs some 3,600 staff and primarily flies to destinations in the Middle East, Africa and Asia.

BMI Regional and BMI Baby are currently not part of the deal. Lufthansa will attempt to sell these entities off separately before it finalises the deal with IAG. If BMI Baby is not sold in this time, IAG will have the option to purchase it at a reduced price.

Phase out of paper driving licence announced

Friday, December 16th, 2011

The UK government has said that it will be cutting some of the red tape for drivers by getting rid of the paper driving licence. The phase out will take place in 2015, and the authorities have also said that motorists will no longer be required to hold an insurance certificate.

Justine Greening, the transport secretary said that digital technology meant that insurance and driving license details could now be kept on computers. Information on databases, such as driving convictions, will be made available to vehicle rental firms and to the authorities in other countries.

From 2015 motorists will only have to carry a photocard, but until then, drivers will be required to produce the old paper licence if they are stopped by the police. A date is still to be set for the phasing out of insurance documents, but it will soon be easier to get a tax disc from the post office because insurance details will be held on computers.

Greening said that getting rid of the paper licence and insurance papers would free people from unnecessary regulations, and also remove barriers to economic recovery. She added that the statute books were due for a spring clean as many of the regulations had become out dated.

The phasing out of the insurance documents is currently something that is being discussed with the industry. Details will be stored on a database which will be accessed by the Driver and Vehicle Licensing Agency.

New volcanic ash detector developed for airlines

Friday, December 9th, 2011

Airlines will be keen to see the successful tests of a new piece of equipment, designed to be fitted to aircraft, which is capable of detecting volcanic ash clouds and predict in which direction they are travelling. The Airborne Volcanic Object Imaging Detector, or AVOID, was recently taken up on a test plane over Sicily’s Mount Etna. The device uses thermal cameras to identify silicates in the atmosphere. It then combines this information with atmospheric modelling and satellite data to allow pilots to plot a course around the ash.

AVOID has been designed by Dr Fred Prata of Britain. He explained that it was able to identify clouds of ash from more than 100km away. It is also operational to over 50,000ft. Dr Prata said that his device would avoid airspace having to be closed.

Last year, airlines across Europe lost millions of pounds as airspace was closed for just under a week following the eruption of Eyjafjallajokull volcano in Iceland. Safety experts warned that large particles of ash entering jet engines could cause them to fail with disastrous results.

As scientists warn that the much larger Katla volcano may be about to erupt, the successful testing of the AVOID system becomes more urgent. The funding has been provided by budget airline easyJet, a company which claims to have lost around £50 million in 2010 after Eyjafjallajokull spewed ash into the atmosphere.

Dr Prata points out that only around two per cent of the airspace over Europe had dangerous levels of ash, and that his device would now be able to show pilots where the dangerous levels are.

Air France probes missing screws

Friday, December 2nd, 2011

Air France is conducting an investigation into why one of its jets was missing 30 screws after passing through maintenance in China. Xiamen-based company Taeco conducted a full service on the Airbus 340 aircraft, but failed to notice that the screws were missing from a protective panel. The firm said that it was also going to investigate the matter.

The service company counts airlines including JAL, Emirates, American Airlines, British Airways and Lufthansa among its clients. The missing screws were discovered last month. Chief executive of Air France, Alexandre de Juniac, confirmed that for the time being, the company would be suspending operations with the Chinese firm.

Juniac said that Taeco had been servicing the airline’s Boeing 747s for more than four years, and that this represented around 10 per cent of the carrier’s long-haul aircraft. According to a spokesman for Air France, passenger jets are sent for a full service every six years, and that the process takes about a month, costing millions of dollars.

Last year, after undergoing a service, an Air France 747-400 was found to have been repainted in areas with paint which could possibly catch fire. The jet had been carrying passenger for three weeks before the mistake was discovered.

Juniac said that Taeco was in charge of conducting a full service on between five and seven planes annually. In a previous statement, the figure was put at less than five every year. The results of the investigation are expected at some point in the next few days.