News

Author Archive

Airlines in China banned from European carbon scheme

Monday, February 6th, 2012

The European Union and China are heading for a tussle over the Emissions Trading Scheme as China bans all of its airlines from taking part. Carriers will also not be allowed to add any new charges in relation to the carbon competing scheme or bump up fares.

The scheme came into play at the beginning of January. At the time the China Air Transport Authority said that its members did not support the initiative. China is worried that having to pay the tax in Europe will mean its airlines having to come up with an extra 95 million euros per year.

The ETS has been widely criticised by countries around the planet including Russia, India, the US and Canada. The scheme applies to every airline which flies in or out of Europe, and some are complaining that the charges are contrary to international trade agreements. The EU has told those airlines that do not comply that they face fines or a ban from European airspace.

If Europe does try to prevent Chinese carriers from landing at European airports there could be some serious reprisals. At a time when airlines are already being hammered by the high cost of jet fuel, a tenuous travel industry and a weak economy, most carriers are unlikely to leap at the chance of hurting their profits further.

Some analysts predict that the situation with ETS will end up with an international body such as the World Trade Organisation.

Tags: , , , , , ,
Posted in Finance and Business | No Comments »

Hotel rooms back on the market for the Olympics

Monday, January 30th, 2012

The organisers of the London Olympic Games have put 120,000 hotel rooms back on the market after having originally booked 600,000 for Olympic officials during the bidding process in 2005. The London Organising Committee of the Olympic Games said that the rooms were no longer required, and that it had always planned on giving back the excess bookings at the beginning of 2012.

Paul Deighton, Locog’s boss, said the return of the rooms would allow hotels to plan more effectively for the summer.

The number of rooms coming back onto the market is around 20 per cent of those originally reserved by the committee. They were initially booked for International Olympic Committee members, the International Sports Federations, sponsors, media and those working at the event.

VisitBritain’s chief executive, Sandie Dawe, said the availability of the rooms was good news for those who will be travelling from abroad to enjoy the festivities this summer. He added that the sector would be boosted by the addition and that it would help the UK to showcase itself as a destination of choice.

Miles Quest, of the British Hospitality Association, said that the reintroduction of the rooms would mean that an extra 8,000 night would be available to the public. He added that there would now be around 110,000 hotel rooms available in London, and some 75,000 more in the area around the capital.

Tags: , , ,
Posted in UK News | No Comments »

Airlines told to inspect cracked superjumbo wings

Monday, January 23rd, 2012

Airlines with Airbus A380 planes in their fleets have been warned that the aircraft should be checked for cracks in the wings and initiate any repairs which may be necessary. A directive by the European Aviation Safety Agency has been issued to carriers including Emirates, Air France-KLM and Singapore Airlines.

The issue concerns a bracket which attaches the skin of the wing to its internal structure. Although Australian airline Qantas has since been told that the problem does not affect its fleet of the jet liners, the carrier’s engineers association has demanded that safety checks be made over the next few weeks.

Paul Cousins, president of the Australian Licensed Aircraft Engineers Association, said All A380s should now be inspected. He explained that any issue which could impinge on the integrity of a wing was a cause for concern.

He added that if one of the brackets begins to crack, then unnecessary pressure could be placed on other brackets which could in turn cause them to crack. Safety authorities have said that there is no immediate danger, but are concerned about the longer term problems if the issue is not dealt with.

EASA has said that the 20 planes it has focused on should be brought in for inspection over the next four days if that have flown 1800 flight cycles or more. A flight cycle is a take off and a landing. Planes which have flown less than 1800, but more than 1300, will have to be inspected within six weeks.

Tags: , , , , ,
Posted in Travel News | Comments Off

Human error caused ship to capsize say owners

Monday, January 16th, 2012

The captain of a cruise liner which has capsized in the Mediterranean has been accused of sailing too close to the shore and not obeying safety protocols. The company which operates the Costa Concordia, which slammed into rocks just off the shores of Giglio on Friday, Costa Crociere, said it was investigating the matter, but believed that the situation may have been due to errors on the part of Capt Francesco Schettino.

The commander is currently being held on suspicion of manslaughter after five people were declared dead. There are fears that the death toll could rise as 15 people are still missing. Prosecutors have said that Capt Schettino had brought the Costa Concordia dangerously close to the shore.

He claims that the charts he was using did not show the rocks, and that as far as he knew, there should have been deep water beneath the hull. Prosecutors have also said that Capt Schettino made the decision to abandon his post before all of the other crew and passengers were safely off the capsized vessel. This is something he has also denied.

The cruise liner is currently laying on its side a few metres from the island.

On Sunday, rescuers discovered the bodies of two men in a flooded section of the ship. They have been transported to the Italian mainland where they will be identified. According to officials, a Peruvian member of the crew and two French passengers have also lost their lives. The vessel was carrying 1,000 crew and 3,200 passengers.

Tags: , , , ,
Posted in Travel News | Comments Off

2011 record year for Rolls Royce sales

Monday, January 9th, 2012

Rolls-Royce has said that 2011 was a record year for sales reporting that it managed to sell 3,538 units, an increase of 31 per cent. The figures, which build on last year’s 150 per cent increase, are mainly due to the success of the Ghost model. The car is cheaper than the more ostentations Phantom models which retail at around £235,000. The Ghost costs £165,000 and has been particularly popular with wealthy younger professionals and women.

Bentley also had a good year in 2011, selling 7,003 cars. This is a 37 per cent increase and means that the Volkswagen marque has returned to sales levels not seen since before the global downturn.

Rolls-Royce said that last years figures beat the company’s previous record which was set in 1978 when 3,347 cars were sold. At this time Rolls-Royce and Bentley were being built by the same firm but split a decade ago after Volkswagen took control. Rolls-Royce is now managed by BMW.

According to Torsten Muller-Otvos, chief executive of Rolls-Royce, the company’s success is down to its ability to deliver more subtlety in its design at a time when consumers are looking to appear less ostentatious. Mr Muller-Otvos said the firm was increasingly moving towards more substance and less bling.

Rolls-Royce said that China and the US remained its most important markets, although it is still to release sales figures for the regions. In The Middle East sales rose by 23 per cent, in the Asia Pacific the figure was up by 47 per cent. In the UK, sales increased by 30 per cent.

Tags: , , , , ,
Posted in Finance and Business | Comments Off

Passenger groups condemn rise in train fares

Monday, January 2nd, 2012

Commuters using the train network to return to their jobs tomorrow face fare increases of as much as 11 per cent according to rail watchdog Passenger Focus. The average regulated fare hike is six per cent. The Association of Train Operating Companies said that the rise was necessary so that firms could offer customers an improvement in services.

Passenger Focus said that routes including Bristol to Edinburgh and Birmingham to Edinburgh have risen in price by eight per cent and services between London and cities like Plymouth, Exeter and Cardiff would increase in price by nine per cent.

Chief executive of the consumer group, Anthony Smith, described the UK rail industry as inefficient. He said it was not fair that commuters were being hammered by price rises while train companies remained fractured. He added that passengers could not be expected to continue to pay for an industry which is so expensive to run.

Although Mr Smith congratulated the rail firms which were allowing passengers to spread the cost of an annual season ticket through direct debit, he pointed out that increases in the cost of parking would further hurt the wallets of commuters.

The charity Campaign for Better Transport is urging passengers to protest against the increased fares on Tuesday by calling, texting or tweeting the Treasury. Atoc’s chief executive, Michael Roberts, said a rise in prices was necessary if train companies and operators were going to be able to improve conditions by adding new rolling stock and investing in stations.

Tags: , , ,
Posted in Travel News | Comments Off

Reduced rail services cause Boxing Day travel disruption

Monday, December 26th, 2011

A reduction in the number of rail services running on Boxing day, and a 24-hour walkout by Underground workers in London, has forced passengers to make alternate travel arrangements. Although London Underground attempted to legally block the industrial action in the High Court, the judge declared that the strike was legal.

Mick Whelan, general secretary at Aslef, the union which called for the action, said the issue of getting workers enough quality time off over the festive period had now been going on for two years. Aslef wants workers to receive triple time, as well as an extra day off, if they choose to work on Boxing Day.

Further strikes have been planned for 16 January and 3 and 13 February. Aslef claims that 92.3 per cent of members who turned out to vote had done so in favour of the action. The union has already said that it has no intention of calling workers out during the London Olympic Games later in the year.

London Underground’s COO, Howard Collins, has accused Aslef of ignoring the long-standing agreements which the company has with its unions. He added that every effort was being made to keep the number of drivers who need to turn up to run Boxing Day services to a minimum.

According to the London Chamber of Commerce, the strikes will damage retailers at a time when they are struggling against poor sales due to high unemployment and a continued lack of consumer confidence. The body said that Aslef was literally holding firms to ransom.

Tags: , , , , , ,
Posted in Travel News | Comments Off

Spending on transport unfairly concentrated in London

Monday, December 19th, 2011

A new report suggests that the balance of spending on transport projects is unfairly weighted by the government in London and the south-east. The Institute for Public Policy Research North claims that in London, the average spent per person is £2,700, whereas in the north-east the figure works out at just £5 per head.

According to the government, the level of expenditure on travel is worked out in ways which represent the greatest economic benefits for the whole of the UK. IPPR North director, Ed Cox, said he didn’t expect anyone to be surprised that there was disparity between the north and the south, but that he did expect people to be shocked at the sheer range of that disparity.

The report claims that the level of the divide between the south and the north is damaging to the economy. According to the think tank, of the 20 largest products in the UK, around half are based in the south-east and London.

Mr Cox said that he was aware that many of the projects were in place to support the 2012 Olympic Games. However, he added that if the government continued to spend in the south, then the region would suffer from increased congestion, as the north would suffer from a lack of growth.

The Department for Transport has defended its spending strategy by saying that London is a major capital city, and that it has to support the needs of a large number of commuters. The coalition said that it had already promised investment £1.4 billion in transport projects which are outside London.

Tags: , , , ,
Posted in Finance and Business | Comments Off

Virgin Money could open branches at railway stations

Monday, December 12th, 2011

If Sir Richard Branson manages to retain the contract to run the west coast railway line, then it is likely that banks will be opened in a number of stations along the route. The plans follow Virgin Money’s agreement to pay £747 million to acquire Northern Rock. Following a meeting in which the entrepreneur outlined his rail strategy, he said that opening bank branches at stations was something he would definitely be looking into.

Virgin Trains will be competing against France’s SNCF, and Dutch firm NV Nederlandse Spoorwegan for control of the route. FirstGroup Plc, based in Scotland, is also tendering a bid. Sir Richard has warned that in choosing the company to operate the service the government needs to look closely at what is being offered. He said it was no good choosing the highest bidder only to find that the service suffers.

Sir Richard promised dramatic changes if he wins the contract. If however he looses out to a rival, Sir Richard hinted that Virgin could pull out of the UK’s railways. Virgin Trains has been operating the west coast route for the past 14 years.

The company lost out on the east coast after it was out bid by National Express. Less than two years later the company was forced to hand the lease back to the government because it could not afford the contractual obligations.

Although he did not elaborate, Sir Richard said that he had been approached to build networks in other countries including the US and Australia.

Tags: , , , , , ,
Posted in Finance and Business | Comments Off

TUI remains on financial track as Thomas Cook flounders

Monday, December 5th, 2011

Europe’s largest travel operator TUI is preparing to publish its latest set of financial results. The figures will be revealed as number two tour company, Thomas Cook, fights for its own survival. According to Charles Stanley analyst, Douglas McNeil, TUI tends to be far better at coping with periods of weakened demand than its rival. He added, however, that the firm was not capable of ignoring the current situation completely.

Travel companies have had a difficult year. Thomas Cook has suffered particularly badly from the events of the Arab Spring which saw bookings in key markets such as Egypt and Tunisia plummet. So far, the firm has issued three profit warnings in 2011, and parted company with its chief executive.

A recent announcement that it would be borrowing £200 million sent share values through the floor. Industry experts will be keen to see if TUI is suffering in a similar way, or whether the troubles being experienced by its rival is having a positive effect.

Numis Securities analyst Wyn Ellis predicts that the results will be good. He even went as far as to say that as customers get concerned about the state of Thomas Cook they could be driven into the arms of rivals, meaning a potential bumper summer for TUI in 2012.

In September, the company said that it was on track to deliver predicted financial results. RBS said that earnings could in fact exceed those expected by the city and has forecast an announcement of around £480 million.

Tags: , , , ,
Posted in Finance and Business | Comments Off

« Older Entries