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Wednesday, May 11th, 2011
Dubai-based Emirates continues to cause concern for other international airlines as it announces a 14 per cent increase in passenger numbers and a 52 per cent jump in profits. While other carriers are being hammered by rising fuel prices, the Middle Eastern carrier appears to be weathering the storm remarkably well.
Competitors have been accusing Emirates and its neighbouring UAE airlines of effectively being subsidised for some time now and are also worried that fleets of superjumbos based in the Gulf will draw traffic away from their hubs. Emirates currently has an order for 90 additional Airbus A380s with the European manufacturer. Airline experts are warning that once in service this fleet will force a radical restructuring of the industry.
Sheikh Ahmed bin Saeed al-Maktoum, the airline’s chairman, admitted that the carrier’s growth was likely to upset the competition. He added that the market was there and that Emirates would continue to grab its share because it had the right product with which to do so. He went on to say that the airline intended to concentrate on Asia and the Americas.
A number of European and North American airlines have already voiced their concerns about Emirates’ rapid expansion. Germany’s Lufthansa has requested that landing slots are denied to the Dubai giant when a new airport opens in Berlin. Last year, Canada refused to grant permission for greater access to Emirates and Etihad.
Tim Clarke, Emirates’ president, has shrugged of complaints from competitors pointing out that if they used the energy they were putting into attacking his airline into running their own companies, they would probably make some money.
Tags: Airbus A380, airlines, Emirates, etihad, fuel prices, Lufthansa, superjumbos, Tim Clarke
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Wednesday, May 4th, 2011
The International Air Transport Association has released figures which suggest that the international demand for air travel dipped significantly in March. Passenger growth dropped from 5.8 per cent in February to just 3.8 per cent the following month. IATA claims that the situation is a direct result of the political and social unrest in the Middle East and the devastating earthquake and tsunami which hit Japan.
According to the association’s statistics, the situation in Japan caused a one per cent drop in international air traffic. In Japan, demand fell by 22 per cent. The problems in the Middle East had a similar effect and demand to popular tourist destinations like Tunisia and Egypt has still not recovered. Travel to Libya is currently at a virtual standstill.
Leisure travellers are also being put off by the increasing surcharges being placed on the price of tickets by a number of airlines to combat the rising price of oil.
Latin American airlines saw a 22 per cent rise in demand compared to March last year, partly because of last March’s earthquake in Chile. Middle Eastern carriers saw year-on traffic increase by 5.6 per cent.
Even though there has been rapid growth in Asia, figures for airlines across the Asia-Pacific were essentially flat compared to March last year. Demand in Europe was up by 5.3 per cent and the US saw an improvement of 3.7 per cent. However, this figure was down three per cent on February. Demand in Africa was down seven per cent on last year.
Tags: airlines, earthquake, IATA, japan, surcharges, travel, tsunami
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Wednesday, April 27th, 2011
A Chicago federal grand jury has indicted two former Air France-KLM executives for their alleged involvement in price fixing in the airline’s cargo division. Former executive vice president, Marc Boudier, and Jean Charles Foucault, formerly the division’s vice president sales and marketing, have been accused by the Justice Department of conspiring to fix air cargo rates and coordinate surcharges with other airlines.
If they are convicted, both could face a million dollar fine and up to a decade behind bars. The pair’s cartel activity is alleged to have occurred between the middle of 2004 and early 2006. A US investigation spanning a number of years and conducted on both sides of the Atlantic has resulted in 21 executives and 21 companies being accused of participating in fixing prices.
Air France-KLM was one of four airlines which admitted being involved in cartel activity to the US in 2008. The admission saw the airline faced with one of the largest ever fines handed out after an investigation by the anti-trust authorities.
The same offences meant that KLM, Air France and the group’s Martinair Holland have had to pay Canada $10 million in fines. Air France-KLM has launched an appeal against a fine totalling nearly €350 million which has been handed down for price fixing by the European Commission.
In addition, the airline is trying to fend off compensation claims being made by a large number of European companies. The firms include Ericsson and Philips which are looking for some €500 million in damages because of illegal freight pricing.
Tags: air france, Air France-KLM, airlines, Ericsson, European Commission, Jean Charles Foucault, klm, Marc Boudier, Martinair Holland, Philips
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Wednesday, April 20th, 2011
The European Union has introduced proposals which could see high-speed rail replace short-haul flights. Transport commissioner for the EU, Siim Kallas, said the removal of the need for air travel across Europe would tackle a number of problems and was necessary if the 2050 goal of reducing carbon emissions by 60 per cent was to be achieved.
He added that the problem of congestion at Heathrow would be removed and there would no longer be the need for expansion or the building of extra runways. He went on to say that airlines would begin to reap the benefits as they could concentrate on expanding their long-haul itineraries.
Kallas pointed to the high-speed rail service which runs between Barcelona and Madrid. He explained that demand for flights between the two Spanish cities had been drastically reduced and that many passengers were finding train travel a much more comfortable alternative to travelling by air.
The transport commissioner also said there was a need for EU countries to cut the reliance on conventional cars in the centre of cities. He explained that it was important for motorists to stop relying on diesel and petrol powered cars for making short journeys. He went on to say that even the introduction of electric cars would not help the current problems associated with congestion.
Kallas said he would also like to see major airports and ports served by high-speed trains thus removing the need for freight to travel by road. Another proposal was to introduce a congestion charge similar to London’s to other European cities.
Tags: air travel, carbon emissions, electric cars, european union, flights, high speed rail, train, travel
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Wednesday, April 13th, 2011
Airlines and airports are bracing themselves for possible chaos when the European Union partially relaxes the rules on carrying liquid into aircraft cabins. On 29 April passengers will be permitted to buy liquids in duty-free shops and, as long as they are visible in clear plastic bags, take those liquids onto long haul flights as part of their hand luggage.
However, some countries across the EU are not so keen to see the no-liquids law repealed. Italy and France are unlikely to conform at the end of this month and it still isn’t clear how passengers flying to the US will be affected. One major problem is that scanners designed to spot suspect liquids are still being developed. This could mean that officials will be forced to check all liquids manually.
This is unlikely to go down well with someone who has purchased an expensive bottle of champagne in duty-free. There are also concerns that tempers could be lost as security queues grow.
European Regions Airline Association spokesman, Nick Mower, said there are likely to be delays and some confusion when the rules are changed. He added that the EU may be being a little premature in its rule change. However, there is little chance of Brussels moving the deadline.
The Department of Transport has not yet confirmed whether the lifting of the ban will apply to all airline passengers at the end of April, but has said it will be working closely with airports to make sure that the transition is as smooth as possible.
Tags: airlines, airports, Department of Transport, duty-free, EU, european union, flights, liquids, security
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Wednesday, April 6th, 2011
Chairman of Abta, John McEwan, has hit out against the level of Air Passenger Duty being charged to customers in the UK. He said he welcomed the decision in the budget to defer any increase until 2012 but that more had to be done to make sure that the charge was fair.
Mr McEwan was speaking at a travel conference when he also demanded that more was done to make sure that customers booking a holiday felt that they were adequately protected against something going wrong.
He said that no matter how the holiday was booked, customers should have the guarantee of financial protection and that it was the responsibility of the entire travel industry to make sure that this was the case. He added that at present only around half of those booking a trip abroad were fully protected.
He also said that the government was being short sighted in not agreeing to airport expansion plans for the south-east. He explained that by not increasing capacity, the UK could find itself becoming uncompetitive within the global market. Ministers have turned down plans for an additional runway at Heathrow and have also denied similar plans for Luton and Gatwick.
British Airways boss, Keith Williams, also addressed the travel conference. He said that even though APD had been put off, airlines in Britain were being taxed more severely than any of their international competitors. He added that the airline industry had a responsibility to make itself greener, and that BA was currently working towards becoming more environmentally friendly.
Tags: abta, air passenger duty, airline, airport, APD, BA, British Airways, Gatwick, Heathrow, holiday, Keith Williams, Luton, travel
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Wednesday, March 30th, 2011
Travel operator Thomas Cook has reported a significant slowdown in the number of Brits booking their annual summer holiday. The travel agent has attributed the loss of business to the UK’s continued economic instability and a tightening of the purse strings. As a result, the firm has announced that instead of increasing capacity it will be reducing the number of package deals available.
Earlier this year Thomas Cook said it planned to add three per cent to the number of holidays it was offering in the UK. However, because of the lack of demand it has decided to reduce this offering by slimming capacity by one per cent. Fortunately for the operator it does not carry a heavy portfolio of aircraft or hotels and can make reductions to the number of deals it offers without harming profits significantly.
According to chief executive, Manny Fontenla-Novoa, there has been growth across most of the group’s segments with airlines and operators recording particularly strong performance in the German market. However, the same cannot be said for the UK where consumer sentiment remains weak.
In February, the operator announced an increase of six per cent in bookings. However, this has slowed to just a one per cent year-on rise. Mr Fontenla-Novoa has attributed some of the slow down to a regulatory delay in the company’s merger with the Co-operative Group. The deal is currently being investigated by the Competition Commission.
Thomas Cook expects t lose around £20 million because of the recent troubles in Egypt and Tunisia.
Tags: airlines, Co-operative Group, Competition Commission, egypt, hotels, package deals, summer holiday, thomas cook, travel agent, tunisia
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Wednesday, March 23rd, 2011
As Japan continues to try and avert a possible nuclear crisis, Singapore Airlines has announced that it will be suspending a number of services to Tokyo’s Haneda Airport. A spokesman for the airline said the decision had been made because of a fall in customer demand. The carrier’s website has a notice saying that flights SQ636 and SQ635 will be suspended as of 27 March.
Singapore Airlines has confirmed that, for the time being, it will continue to operate its four daily services to Tokyo’s main international airport, Narita. Demand for airline seats has slowed as Japan tries to come to terms with the aftermath of a massive earthquake and devastating tsunami.
The wall of water smashed into the Fukushima nuclear power plant causing damage to the facilities cooling systems. Hundreds of workers have been battling to get water into the plant and restore power supplies. However, according to Japanese news reports, two of the reactors appear to be emitting steam and smoke again.
Other international airlines are also reviewing their schedules to Japan. Qantas offshoot Jetstar has announced that it will be reducing its services to the capital as demand for seats drops.
There are increasing concerns that the fall out from Fukushima is producing dangerous levels of radiation in water supplies and food. The authorities have already banned the supply of spinach from farms located near the reactor and higher than normal levels of radiation have been detected in milk. Although Tokyo’s tap water is also registering some contamination, health experts claim it is still safe to drink.
Tags: airline, earthquake, Fukushima, Haneda, japan, jetstar, Narita, nuclear crisis, Qantas, radiation, reactors, Singapore Airlines, tokyo, tsunami
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Wednesday, March 16th, 2011
As Japan struggles to come to terms with devastation caused by one of the largest earthquakes ever to be recorded, international airlines say they are continuing to monitor the situation. One of the biggest concerns surrounds the damage caused to one of the country’s nuclear reactors which resulted in serious failure and a series of explosions.
European carriers including Swiss, Alitalia, Air France and British Airways have said they will continue flying as scheduled but asked passengers to check the situation before leaving home. Most have also offered customers the option of changing their tickets to Japan without incurring an additional charge.
Lufthansa said because of major delays at Tokyo’s main international hub, it would be diverting its services to other cities in the country. The German airline has also said it will be reducing capacity out of Frankfurt by replacing an A380 with a smaller Airbus A340-600. The aircraft carries around 120 less passengers than the superjumbo.
Thomas Jachnow, a spokesman for Lufthansa, said avoiding the logistical problems and delays at Narita airport would mean passengers are guaranteed a more reliable flight schedule and that the move was purely a preventative measure. Narita, the capital’s main hub, is situated close to one of the areas devastated by the tsunami which hit Japan after the earthquake.
Lufthansa said it had also checked aircraft flying back from Japan for radiation. The airline declared that nothing out of the ordinary had been found. British Airways has told customers that they can either change the date on their tickets to Tokyo or select a new destination on bookings before 19 March.
Tags: air france, airbus, airline, Alitalia, British Airways, japan, Lufthansa, Swiss, tokyo
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Wednesday, March 9th, 2011
Transport unions are warning London Underground that it could face a fight over levels of overtime pay if it goes ahead with plans to run the tube 24 hours a day during next year’s Olympic Games. Transport chiefs have set up a committee to look at how to staff the scheme if it goes ahead.
The network already handles some three million passengers on a daily basis and can expect to see a million more every day during the Summer Olympic Games. Bob Crow, the RMT’s general secretary, said the tube was likely to feel the extra strain, especially as maintenance issues, breakdowns and job cuts are already taking their toll.
He pointed out that the unions have no agreement in place with the Underground over the number of services which will be put in place during the Games, levels of pay or operating hours. He signed off by saying that if the Mayor couldn’t manage to keep transport in London moving at the moment he was going to be faced with quite a task after the Games begin.
A Transport for London spokesman said improvements to services across the transport network were being made and were currently ahead of schedule. He added that he was confident that London would be able to offer a fantastic experience to those coming to the UK for the event.
He went on to say that detailed plans for how to keep the capital moving were currently being finalised but admitted that no final decision had been made on the hours the tube would be running during the Games.
Tags: Bob Crow, London Underground, Olympic Games, rmt, Transport for London, tube, unions
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