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Sir Stelios attacks easyJet bonuses

Wednesday, February 1st, 2012

The founder of the low cost airline easyJet has slammed the company’s top executives for the size of their bonus. Sir Stelios Haji-Ioannou has proposed that a pay deal is stopped at next month’s AGM. However, if shareholders agree to the idea then there is the possibility that the carrier’s board will walk out en masse.

Sir Stelios said that he was more than happy to accept the board’s resignation adding that he was sure that it would not be difficult to find a group of more capable and less expensive people to replace them.

The easyJet directors stand to share around £8 million if targets are met over the next three years. Sir Stelios said that something had to be done about the people at the top who were using the firm as a piggy bank which they felt they could dip into at any point. He added that a decade which saw £180 million worth of shares issued for free now had to come to an end.

Sir Stelios and his family currently own 38 per cent of the airline. He founded the company in 1995, but stepped down from the board of directors in 2010 after a disagreement over strategy. He is currently at odds with the airline over its spending strategy and a decision to order more aircraft from European planemaker Airbus.

In her first full year as chief executive of easyJet, Carolyn McCall took home £1.5 million. £840,000 of this was in the form of bonuses.

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British Airways puts Libya back on its schedule

Wednesday, January 25th, 2012

Although the UK Foreign Office continues to advise against any travel to Libya, British Airways has said that it will be resuming a regular service to the capital Tripoli as of 1 May this year. The airline made the decision to stop carrying passengers to Libya after civil war erupted in February 2011. The conflict came to an end in October, and since then a no fly zone has been lifted by NATO.

The decision to begin operations again has been made after a close assessment of the security risks was conducted by BA. However, the fact that the FCO is still advising people not to travel to the North African country means it is unlikely that BA will be carrying tourists for the time being.

BA boss Keith Williams said that the airline was extremely pleased to once again be able to offer a vital economic link between the UK and Libya. The airline joins several other European carriers which have made the decision to resume operations since the end of the conflict including Italy’s Alitalia.

Air France has already announced that it will be resuming services as of 27 March. BA has said that it will be running three services every week to and from Tripoli.

The problems in Libya meant that many tour operators offering holidays to the country had to cancel bookings. Responsible Travel, which previously arranged visits to sights around the country including the Leptis Magna Roman ruins, said that it was unlikely that tours would resume until the FCO drastically changed its advice.

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Summer holiday costs to be kept down in 2012

Wednesday, January 18th, 2012

Recently published research shows that cost-conscious Brits intending to go on holiday this summer are looking for ways in which to save money, with many choosing the option of staying in the UK. The survey, conducted by Sainsbury’s Travel Insurance, showed that 78 per cent of people intending to take a holiday would be looking for ways of cutting costs.

In order to keep a close eye on exactly what they would be spending, 10 per cent of respondents said that they would be paying up-front for a package deal. Another 12 per cent said that they would be reigning in the costs by looking for a self-catering option. Of those who said they would be going abroad, 13 per cent said they would be keeping the cost down by staying in a property owned by friends or relatives.

However, less than half of those who replied to the survey said that travelling abroad was an option this year. Many said that they intended to leave booking their trip as late as possible in the hope that travel companies will be offering last-minute deals.

Just under a quarter will not be getting in touch with a travel agent until after March, and 10 per cent admitted that they would not be making a booking until July at the earliest, when the summer season will be in full swing.

Sainsbury’s Travel Insurance spokesman, David Barrett, said that although people were still looking for time away in the summer, they were also keen to keep a tight grip on expenditure.

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Flybe share value drops on weak sales

Wednesday, January 11th, 2012

A warning that it is unlikely to achieve revenue targets this year has sent shares in Flybe plummeting by 20 per cent. The Exeter-based airline has blamed a slump in demand from passengers in the UK. The carrier said that sales in December had been particularly slow and that the last three months of 2011 had seen sales drop by around eight per cent on the same three months in 2010.

The company said that revenues were unlikely to improve in the short-term as the domestic market in the UK continues to deteriorate. The airline’s boss, Jim French, said it was important for Flybe to concentrate on growing its share of the market and maintaining passenger volumes before attempting to increase yields.

The airline believes that it is in a good position to take advantage of the predicted rationalisation of the short-haul business in Europe. The slowdown in ticket sales saw Flybe announce a second profit warning in October last year. Since January 2011, the company has seen around 80 per cent wiped from the value of its stock.

Analysts believe that Flybe is likely to continue to suffer from a downturn in sales as consumers struggle with the current economic problems affecting the UK and much of Europe.

Douglas McNeill, Charles Stanley’s airline analyst, said that although the company was working well, and managing to keep costs to a minimum, it is suffering because passengers are shying away from airline travel or looking for cheaper tickets. He added that a swift recovery was unlikely.

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London Assembly attacks latest fare hike

Wednesday, January 4th, 2012

John Biggs, budget chairman of the London Assembly, has asked Mayor of London Boris Johnson to reduce fares on the Underground and buses. The call came the day after ticket prices went up by 5.6 per cent on average. Mr Biggs wants to see a reduction of seven per cent at a time when many families are still struggling to manage their household budgets.

He insisted that Transport for London had enough in its coffers to ensure transport improvements and hand some cash back to travellers. He said that the price hike was yet another one sanctioned by the Mayor which was above inflation.

According to Mr Biggs, TfL has a surplus of £206 million in its operating budget. He said that this could be used to fund a reduction in fare prices. Lib Dem candidate for Mayor in May’s elections, Brian Paddick, also criticised Mr Johnson’s decision to push ticket prices up. He pointed out that this is the fourth year in which fares had risen above inflation.

Caroline Pidgeon, the party’s transport spokesperson, said it was time to end the overcharging on Oyster cards and introduce cheaper morning fares and one-hour bus tickets as a way to help those who are struggling to make ends meet on low incomes.

TfL has defended the price hike saying that it could have been higher. Isabel Dedring, Transport Minister for the Mayor’s office, explained that the extra revenues were vital if London wants to improve its transport system and keep it running smoothly.

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HS2 project could swamp Underground stations

Wednesday, December 28th, 2011

Transport bosses are warning that if plans to build a high-speed train link between London and Birmingham go ahead, increased congestion at some of the capitals key Underground stations could cause them to have to close during the morning rush-hour.

Transport for London’s deputy chairman, Daniel Moylan, said that the High Speed Two project would mean an influx of extra passengers to Euston which the station is simply not built to cope with. He explained that unless an expansion project was undertaken, then Euston would have to close down to deal with the extra influx, which would undermine HS2’s intended time saving benefits.

The London to Birmingham line aims to slash the current journey time to 49 minutes. Mr Moylan predicted that if HS2 were to go ahead, by 2033, the number of passengers intending to get onto the Victoria Line at peak hours in the morning would increase to 8,373 from 4,353. This doubling in numbers would make the average waiting time around 30 minutes.

The number of passengers wanting to use the Northern Line would also almost double, according to Mr Moylan. Mayor of London Boris Johnson, who has been critical of some of the aspects of the HS2 scheme, admitted that there needed to be improvements in the transport system.

An HS2 spokesman said the project would only increase numbers at Euston by two per cent during the project’s initial phase. He added that redevelopments at Euston would not only be of benefit to HS2 customers, but all those who use the station.

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Rail fares to rise significantly next year

Wednesday, December 21st, 2011

As of next year, train journeys will cost an average of just below six per cent more than they do at the moment, with some fares topping a nine per cent hike in price. Campaign for Better Transport’s Sophie Allen described the hikes as eye watering. She added that the UK already has some of the highest rail fares on the planet, adding that by the next election they would be 24 per cent higher. She went on to say that economic growth was being hampered by the unnecessary rises in price.

RMT general secretary, Bob Crow, said that the price hike was well above inflation and that it proved that the only ones benefiting from the privatisation of the rail network were the train companies who were laughing their way to the bank.

In the south-east, commuters in cities including Eastbourne, Bedford and Hastings will be expected to hand over more than £4,000 for a season ticket. A saver return to Nuneaton from London will be 9.2 per cent more expensive come the New Year, and an off-peak return to Plymouth from the capital will be 9.6 per cent dearer.

An advance single to Glasgow from London on Virgin Trains will go up by just over eight per cent.

Maria Eagle, the oppositions transport secretary, has slammed ministers for allowing the train operators to ratchet the price rises in some areas well in excess of the six per cent average. She added that it proved the government was thoroughly out of touch with UK commuters.

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Zodiac to buy airline seat manufacture Contour

Wednesday, December 14th, 2011

Contour Aerospace Ltd, based in Cwmbran, could be taken over by a French rival, if everything goes smoothly with the competition regulators. The manufacturer of airline seats is in negotiations with Zodiac Aerospace SA, and a final announcement is expected early in the new year.

Contour opened in Wales in 2000, and employs around 1,000 workers. It also has a base in Surrey which has 250 workers. Contour bosses have said that the deal with the French should have little impact on those working in the UK, and that, for the time being, it is business as usual.

Much larger Zodiac Aerospace has offices around the globe and employs some 23,000 people. Its revenues for the 2010-2011 financial year were £2.3 billion. The company currently competes directly with Contour for airline contracts.

Contour was responsible for British Airways’ very first lie-flat seats, and has ambitions to be the top supplier of seating for the premium-class markets. Ian Plummer, Joint Managing Director at Contour, said the latest development was exciting. He added that a take-over by Zodiac Aerospace would mean Contour would be given far greater access to resources and a larger aerospace group.

He went on to say that the company would continue to operate as usual and was currently working on a number of concepts and designs. Zodiac’s chief executive, Olivier Zarrouati, said that his company admired Contour’s capabilities, and that he was looking forward to working with the firm and developing it to its full potential.

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Carrentals.co.uk supports StreetSmart with festive competition

Wednesday, December 7th, 2011

As the festive season approaches, Carrentals.co.uk, the country’s premier car hire comparison site, is launching ’12 Days of Christmas’, a competition which will see 13 lucky winners walk away with a range of quality prizes. As well as a prize a day, the website will be celebrating Christmas by conducting a prize draw for everybody who has entered on 24 December. The winner will receive an iPad 2.

Among the prizes which will be given away as of 12 December is a vineyard tasting and tour, a pair of tickets for a ride on the London Eye and Amazon vouchers. The combined cost of all the prizes is to be donated to StreetSmart, a homeless charity which helps other charities in a number of major cities across the UK.

Carrentals.co.uk’s managing director Gareth Robinson said: “We have some great Christmas gifts to give away this year – it’s up to the winners whether they keep them or give them to friends or family on Christmas Day! ”

He added: “But we also wanted to give something to help the thousands of homeless people who can find it particularly hard at this time of year.  StreetSmart helps many of the smaller homeless charities across the UK whose work is vital, and we hope our Christmas campaign will go some way in helping provide a range of support.”

Those wishing to take part in the competition need to visit the Carrentals.co.uk website where they will be given a clue to the whereabouts of a hidden snowman. Once the snowman is found, entrants can send the URL of the location for a chance to win.

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Strikes could cause long queues at airports

Wednesday, November 30th, 2011

As some 2 million public sector workers include themselves in a nationwide strike today, significant disruption is expected across most sectors. A number of airlines have already cancelled services into Heathrow as UK Border Agency staff are expected to join the industrial action. Heathrow operator BAA said it would be doing its best to implement contingency plans, but also advised passengers to expect some delays.

As many as 90 per cent of schools across the UK could be forced to close their doors today. Michael Gove, the education secretary, said it was unrealistic and unfair for the unions to expect the British tax payer to continue to pay the growing pensions bill for the public sector.

Russell Hobby, National Association of Head Teachers’ general secretary, responded to the comment by saying that any blame for union militancy should be placed on a government unwilling to engage in any real negotiations until the very last minute.

Downing Street has said it would be willing to sit down at the negotiating table again, and asked the unions to call off the action. The government said that a strike would not achieve anything.

Although Labour has condemned the walkouts, Treasury shadow chief secretary, Rachel Reeves, said more needed to be done by the government for public sector workers on a low wage who had just been told by that Chancellor that their pay over the coming two years was effectively frozen. George Osborne has just announced that it will be capped at 1 per cent.

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