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Emirates wants more super jumbos

Wednesday, October 13th, 2010

Emirates, the Dubai based airline giant, is continuing to put pressure on European rivals as it announces the only restriction on the amount of Airbus A380 super jumbos it can order, is the limited space in which to park them. The airline upped its order for the Airbus goliath in June to 90 aircraft.

Tim Clarke, Emirates’ president said he was keen to order more A380’s, but was aware that available space was limited. Talking from his office in the airline’s hub, Clarke added that the initial plan was to buy 120 aircraft, but space issues meant a compromise of 90 was agreed. He was quick to add that when additional space becomes available at Dubai, he would be ordering more.

Despite recent financial problems experienced by some of Dubai’s government run operations, Emirates has continued to grow at an astonishing rate. According to Clarke, the airline adds 20 per cent to the number of passengers it serves every year. He added that he forecast this would continue for at least the next half-decade.

If Clarke goes through with his plans to order an additional 30 planes, Emirates will have by far the largest fleet of A320’s in the world and would be Airbus’ biggest customer. Analysts say this would give Emirates a significant position in Europe where the manufacturer is based.

The rapid expansion of Middle Eastern airlines is worrying European and US carriers who believe traffic could start to be drawn away from them. European airlines have accused Emirates of having its fuel bills subsidised. Clarke consistently denies this saying if the accusation is proven, he will pack up his desk.

Singapore Airlines announces in-flight WiFi service

Wednesday, October 6th, 2010

As of next year, passengers taking their seats on long-distance flights with Singapore Airlines will have the opportunity of staying connected via the carrier’s WiFi service. Those with internet enabled mobile phones or laptops will be able to send and receive emails as well as gain access to the web. GSM-compatible phone users will be able to send and receive texts as well as make and receive calls.

Singapore Airlines’ senior vice president for products and services, Yap Kim Wah, said the scheme, which is the first to be launched by a major Asian carrier, is being offered at a time when customers are placing increasing importance on remaining connected while in the air. He added that new technology and greater usage was driving the price of supplying such a service down to acceptable levels.

Singapore plans to start providing in-flight connectivity during the first half of 2011 on its Airbus A340-500, Airbus A380 and Boeing 777-300 aircraft. The service will be available to all classes of passenger and will involve an additional fee, which is to be announced nearer the launch.

OnAir is the company Singapore will be using to look after its onboard communications. The airline said that when the new service is introduced it will not be the same as a recent trial introduction of a WiFi service, but a fully integrated part of the carrier’s in-flight entertainment programme.

Mr Wah said passengers will soon have the option of keeping up with sporting events, live news coverage, the latest developments on their social networking sites and some great offers from Singapore Airlines’ in-flight shopping service.

BA, AA and Iberia finalise transatlantic deal

Wednesday, September 29th, 2010

British Airways, American Airlines and Iberia have received final approval for their plans to enter into an agreement to share revenues on transatlantic flights. The three airlines, whose combined annual business across the Atlantic is estimated to be £4.4 billion, could start sharing those revenues as early as next week.

Approval for the agreement will also put the Oneworld alliance, of which all three are members, into a much stronger position against rival airline alliances Star and SkyTeam. Although neither has ever obtained approval from regulators in Europe, both alliances have been operating transatlantic consortiums for years with the blessing of the US Department of Transport.

The alliance between BA, Iberia and AA was approved by US regulators in February and competition bodies in Europe agreed to the tie-up in July. BA said, now the final hurdle had been jumped, the agreement would be put into effect in October, but has yet to specify a date.

The revenue-sharing agreement will mean each airline will get a percentage of any ticket it sells on transatlantic routes, regardless of the carrier the passenger travels with. The deal is on all routes between the US, Mexico and Canada and countries within the European Union as well as Switzerland and Norway.

The approval for the revenue-sharing agreement came at the same time as European competition watchdogs gave their permission for British Airways and Iberia to complete an outright merger. The new airline will be called International Airlines Group, but both carriers will retain their liveries.

Hertz dedicated to electric vehicle technology

Wednesday, September 22nd, 2010

Car hire leaders Hertz has announced it is making a firm commitment to providing its customers with access to the very latest in electric vehicle and hybrid electric vehicle technology. The commitment to action was made at this year’s meeting of the Clinton Global Initiative, where global leaders gathered to discuss the world’s most pressing problems.

Hertz said it was in the perfect position to introduce the benefits of electric power to its diverse groups of customers: students, corporations, commuters, travellers and tourists. Hertz also believes that, as it leads the initiative to provide electric vehicles to all, it will encourage its partners in cities around the world to develop and provide the infrastructure required.

Hertz is planning to roll out the first electric and hybrid electric vehicles in the autumn with a view to implementing full-scale deployment of the technology next year. In February, Hertz announced it would be introducing the Nissan LEAF, a 100 per cent electric powered vehicle, to specific rental outlets in the US and Europe.

Mark P Frissora, Hertz’s chief executive officer, said the Hertz Global Electric Vehicle programme was poised to begin changing travel solutions forever. He added that as it continued to develop the programme would galvanise support from industries which would make the infrastructure necessary for the running of electric vehicles in cities and towns around the globe.

Fred Krupp, president of the Environmental Defence Fund, said he looked forward to working closely with Hertz and showing people the benefits of the new technology, not just to themselves but also to the environment.

Hotel room rates on the rise

Wednesday, September 15th, 2010

Increasing levels of corporate and leisure travel means that hotel room rates around the world are beginning to climb again after dropping to all-time lows during the global recession. Hotels.com, a website based in Dallas, has issued a report showing the first year-on-year gain since the end of 2007.

Big names in the hotel business including Marriott International and Starwood Hotels & Resorts are reporting an increase in demand and higher earnings, especially at properties in the cities.

According to Hotels.com the price of a room in Reno, Nevada has risen by around 16 percent. The second sharpest rise is in New York where prices are up by 14 per cent this quarter; an average room now costs $224, according to the website.

Vice president of marketing for Hotels.com in North America, Victor Owens, said the biggest surprise was just how quickly bookings and group meetings were increasing. He added that he hoped pricing had finally bottomed out and went on to say that in cities like New Orleans, Las Vegas and New York meeting planners were coming back, which is a good sign.

When the global economic recession hit, the worst affected places in the US, in terms of declining demand for lodging, were Ohio, Toledo, Virginia and Norfolk where rates dropped as much as 17 per cent. According to Hotels.com rates in Europe are also on the rise. Both Oslo and London are up by around 14 per cent and hotels on the island of Capri, off Italy, are now the most expensive in the region. An average room costs $267, according to the report.

Hertz announces partnership with ExpertFlyer.com

Wednesday, September 8th, 2010

Hertz has announced a new partnership with ExpertFlyer.com which it hopes will enhance the current Hertz Business Account Programme by providing customers with more travel options. Small businesses will now have access to greater savings on membership of ExpertFlyer.com, Hertz rental vehicles and a range of services provided by other participants in the corporate programme.

Hertz’s chief marketing officer, Michael Senackerib, said he was delighted to be able to announce that ExpertFlyer.com is now a partner. He added that the Hertz Business Account Programme was all about offering customers value propositions which would maximise their budgets, especially in the current global economic climate.

Small businesses making use of the Hertz programme currently enjoy discounts on Hertz rental of up to 20 per cent. Hertz #1 Gold Club membership is also offered as complimentary for up to a year and customers are able to earn rental credits which go towards the price of renting Hertz vehicles as well as Free Rental Days.

Other benefits are provided by the schemes partners’ which includes FedEx, American Express and now ExpertFlyer.com. President and co-founder of ExpertFlyer.com, Chris Lopinto, said his company provided travellers with the tools to make the most up-to-date and informed decisions about their business travel. He added that by entering into collaboration with such a well respected brand as Hertz, ExpertFlyer was able to provide its customers with enhanced value.

Lopinto went on to say that he hoped the partnership would offer business travellers’ the opportunity to strengthen their buying power.

New Zealand car hire bosses fined

Wednesday, September 1st, 2010

New Zealand’s Commerce Commission has announced that it will be keeping an especially close eye on the country’s tourism sector ahead of next year’s Rugby World Cup. The warning comes after two car hire company bosses were fined for scamming foreign visitors. The Directors of Euro Car Rental New Zealand in Christchurch and Affinity Car Rental New Zealand, also in Christchurch, have pleaded guilty to several counts of breaching the Fair Trading Act.

Among their crimes were: adding charges to customers’ bills which had never been discussed; telling customers’ that repairs had been done to cars when they had not; telling customers they had caused damage to vehicles when it was not the case; advertising the companies as being supported by ‘Qalmark’ while having no such endorsement and promising the newest car models, but providing vehicles which had been in the fleet for years.

The Commerce Commission’s general manager of enforcement, Kate Morrison, said this was exactly the sort of behaviour which can put tourists off from coming to New Zealand. She added the country needed to keep its reputation in tact, especially with the Rugby World Cup fast approaching.

Morrison explained that the car rental industry is an extremely important part of New Zealand’s travel infrastructure, especially for tourists. She said it was vital that businesses competed fairly and provided the most up to date information possible.

Morrison added that many overseas visitors have to book their car hire well in advance of their travels and so companies really ought to keep their websites accurate.

Emirates confirms capacity growth over next 12 years

Wednesday, August 25th, 2010

Dubai based Emirates has confirmed that it intends to grow its fleet by two passenger planes every month over the next 12 years as its struggles to keep up with the demand for seats. Sir Maurice Flanagan, the carrier’s executive vice-chairman said the coming years would see the airline grow substantially.

At recent major air shows, Emirates has made the announcement that it has placed orders with Airbus for 32 of its A380 super jumbos and with Boeing for 30 of its 777-300ERs. The orders have a combined list price of more than $20 billion. Emirates also has orders worth a combined $48 billion for 18 more Boeing 777s, 70 A350s and 48 A380s as well as 7 Boeing air freighters.

For the fiscal year ending 30 March, Emirates announced a profit increase of 416 per cent on a year earlier of $964 million. In October the airline will turn 25 and this year is the 22nd in which it has been able to announce a profit.

Flanagan told reporters at the airline’s headquarters in Dubai that even with the increased capacity two new aircraft per month will introduce; the carrier would struggle to meet passenger demand. He explained that territories such as the US and Australia still offered tremendous opportunities for growth. Flanagan added that cities such as St Petersburg, Chicago and Kiev would be better served by the airline, if only it had more aircraft.

Flanagan went on to say the only thing theoretically in the way of continual growth was the capacity of the airline’s hub, Dubai International.

Holiday Autos advises holidaymakers to cut back on luggage

Wednesday, August 18th, 2010

New research by car hire firm, Holiday Autos, suggests a quarter of all couples will end up having an argument about the best way of packing their belongings into the holiday rental vehicle, before the holiday even begins. According to the study, men tend to pack more than their partners when travelling to the beach. Nearly one third admitted they have had to leave some of their luggage behind at the airport because it would not fit into the rental car. Only 17 per cent of women admitted to having been in the same situation.

When booking a car for the holiday, 82 per cent of men felt it was their job. However, according to Holiday Autos, many males prefer to concentrate on the make of vehicle and the size of its engine, rather than how much luggage space it provided.

Managing director of Holiday Autos, Stuart Nassos, said many people seem to ignore the fact that when booking a vehicle for their holiday it is likely to be smaller than the car they use when they are at home and therefore tend to bring more luggage than will safely fit.

Nassos advised all customers to check the Holiday Autos Car Features Guide before deciding on which model to book. He added that the car should either be big enough to accommodate a holidaymaker’s luggage or the amount of luggage should be reduced to fit in the car.

According to the research 18 per cent of men admit that they have returned to the car hire desk in order to upgrade to a larger vehicle to accommodate their luggage.

Zipcar investigated by Competition Commission

Wednesday, August 11th, 2010

The Competition Commission is to investigate the acquisition of Streetcar by US rivals Zipcar after the Office of Fair Trading said it was concerned that the deal may breach competition rules. The deal was sealed earlier this year and saw Zipcar grow its fleet of short-term rental vehicles by 1,400. Initially the US based car club had 370 cars in the UK.

Amelia Fletcher, senior director of mergers at the OFT, said that it had been established that the two companies, as well as being the largest in London, were also the most competitive with each other. The acquisition of Streetcar by Zipcar means that competition will now be gone.

Fletcher added that because the car club phenomenon was so new to the car rental scene, it is important that it is protected in its infancy, especially as the potential for growth is so huge. Because of the deal Zipcar is now far larger than its nearest London competitor, City Car Club.

Chairman and chief executive of Zipcar, Scott Griffith, said he was sorry the Commission felt it had to launch an investigation into the acquisition of Streetcar, but added that he was sure the result would be positive for the company. He went on to say that it was a shame that a delay would now be imposed on a transaction that would benefit consumers as well as the environment.

Zipcar purchased Streetcar for £32 million in April. The Competition Commission is due to announce its findings in the New Year.