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Monday, October 25th, 2010
BMW has announced it will be following a handful of other European manufacturers into the short term leasing market. As vehicle ownership shows signs of declining in large cities around the globe manufacturers are looking at new ways to encourage drivers into their brands.
Daimler is already doing it with its Car2go scheme which offers customers short term rental of its smart cars and Peugeot has been expanding its Mu rental initiative across Europe.
BMW’s scheme will be offered to customers in Munich where the company has its headquarters. For €16 per hour, customers will be able to take a 1 Series compact away from BMW World, the events and exhibition centre next to the firm’s offices. A 7 Series sedan will cost €32 per hour. A spokesman for BMW said the idea was that customers who cannot afford to own a high-end vehicle will now be able to take one away for a special occasion.
Sarwant Singh, from the market-research company Frost & Sullivan explained that as populations grow in capital cities around the globe, the level of pollution and congestion will start to rise. He said the numbers of people deciding to own their own car in these centres of population was beginning to decline, so manufacturers find themselves having to tap into other revenue streams.
Singh added that as well as exploiting the drivers who currently do not own a car, car sharing schemes meant companies could market their vehicles to those who might, at some later date, decided to purchase.
Posted in Car Rental News | Comments Off
Monday, October 18th, 2010
Disruption to public transport services across France is continuing as unions keep up their pressure on President Sarkozy over his controversial retirement reforms. Mr Sarkozy is standing by his position and says the country cannot afford not to revise the pension rules. The unions are signalling that they are also not prepared to back down as panic buying across the country leads to fears of a fuel shortage.
Truck drivers have announced that they will continue to cause disruption by blocking roads across the country. Transport unions have said that train services will continue to be disrupted. Around half the scheduled TGV services will be cancelled today and only a third of all other train services are due to run.
Flights in and out of Charles de Gaulle airport in the capital could soon be cancelled if fuel supplies begin to run short. France’s transport minister Dominique Bussereau is playing down rumours and saying a pipeline supplying the airport is back in service and fuel will be supplied indefinitely.
In Paris, petrol stations are already displaying sold-out signs on their pumps. Total has said up to 400 of its service stations are now not being supplied adequately. Representatives of France’s oil industry, the UFIP, claim that if the government does not grant access to emergency supplies the country could be running low on fuel by the middle of the week.
Where fuel is available the temptation will be to push the price up as demand heightens. Christine Lagarde, The country’s economy minister has warned people tempted to do this that they could face prosecution.
Tags: Charles de Gaulle, flights, Paris, petrol, public transport, retirement, Sarkozy, TGV, trains, unions
Posted in Political News | Comments Off
Monday, October 11th, 2010
The UK European Consumer Centre has reported a significant rise in the number of complaints it is receiving from holidaymakers about foreign car rental companies. It said the number was up by around 30 per cent for the first half of 2010, compared to a year earlier. Complaints included being charged extra for petrol which was not used; being billed for damage which never occurred and even being charged in advance for vehicles which were not available.
Leaseurope, a body which represents car hire firms within the EU, said the figures released by the UKECC represented a tiny portion of the millions of car rentals made annually.
However, the UKECC said it was not the number of complaints which was worrying, but the rate at which they were increasing. The centre believes that the number of complaints being made is merely the very tip of the iceberg.
Manager of the UKECC, Jed Mayatt, said the majority of complaints were coming from people who had car hire issues in Ireland, France, Italy and Spain. He added that if figures continued to rise at their current rate, by the end of the year the number of disputes would be up by 400 per cent.
Mr Mayatt advised those renting a vehicle abroad to take a few sensible precautions. Most extra charges are being made after a car is returned to the renter. If there is no representative of the rental firm available to sign off on the car, he advised customers to take photos of the vehicle to prove it was returned in good condition, if a dispute arose.
Tags: car hire, car rental, EU, Leaseurope, petrol, rental firm, UKECC, vehicles
Posted in Car Rental News | Comments Off
Monday, October 4th, 2010
Dollar Thrifty’s shareholders have rejected the advice of the company’s board and voted against the latest takeover bid by rival car rental firm Hertz. Hertz said before the vote that if investors rejected their cash and stock offer worth $50.88 per share, it would walk away from the negotiating table. The way is now clear for Avis, which has made a higher offer, to concentrate its acquisition efforts.
According to car rental specialist at the research company IBISWorld, Nima Samadi, the negative vote was cast because Dollar investors felt they should be offered more money. Avis has offered a deal worth around $53 per share.
Concerns that regulators would ultimately block any tie-up between Avis and Dollar have been a concern for the company’s board and one of the main reasons it has championed Hertz’s lower offer over the past months. Up until now, Avis has also refused to offer a reverse termination fee in the event that the deal should fall through.
Mark P Frissora, chief executive of Hertz, said in a statement last Thursday that the current deal was the last that would be offered. He added that Hertz wanted to concentrate on building its non-airport business. Avis confirmed on Wednesday that its offer still stands.
Due to the back and forth nature of the dealings, it is unclear whether Hertz really means to leave the negotiating table or whether Dollar will now start fresh talks with Avis, according to Samadi. Scott Thompson, Dollar Thrifty’s chief executive, said it was time to re-evaluate the company’s options in order to get the best value for shareholders.
Tags: Avis, car rental, dollar thrifty, Hertz, IBISWorld, Scott Thompson
Posted in Car Rental News | Comments Off
Monday, September 27th, 2010
Recently published research suggests most UK motorists try hard to remain within speed limits, but often find it difficult to do so. Between August and September, the Institute of Advanced Motorists (IAM), a charity involved in road safety policy and improving driving standards, conducted an online poll. Of the 3,000 drivers who responded, 90 per cent said they make a conscious effort to comply with the rules.
However, according to the research, 60 per cent admitted that remaining within the legal speed limits was something they did not always manage to do. The most common problem with speed limits seems to be that on some roads drivers simply disagree with restrictions the authorities have imposed. This caused 57 per cent of respondents to admit they had broken the law.
It also depends on the type of road. Many admitted they were most likely to speed on a motorway (58 per cent) and 20 per cent said they were likely to go above the limit on countryside roads. Although 18 per cent claimed they would never speed on any road, four per cent said they were still likely to speed in towns.
IAM director of policy and research, Neil Greig, said although he was pleased to learn that most drivers were keen to stay within speed restrictions, it was still worrying that so many found it tricky to do so.
Mr Greig added that with further driving instruction, motorists could become more aware of the restrictions on the road as well as improve their driver perception.
Tags: drivers, driving, IAM, Institute of Advanced Motorists, motorists, police, speed cameras, speed limits
Posted in UK News | Comments Off
Monday, September 20th, 2010
There is still no end in sight for the ongoing battle between British Airways and the union representing its cabin crew, Unite. The union has now announced that it intends to take the fight back to the courts. In November, Unite failed to get an injunction against the flag-carrier after it said it would be reducing the numbers of its cabin crews flying out of Heathrow.
Unite says it will be returning to the Court of Appeal on 11 and 12 October to claim that the reduction in staff numbers was in fact a breach of contract. BA firmly denies this pointing out that in February, the High Court ruled that the small changes made to numbers were reasonable and therefore employees’ contracts remained unaffected. A spokesman for the airline said BA was prepared to defend itself.
Unite also said it will be appealing to the European Court of Human Rights over how the government deals with balloting. The union faced an injunction over strike action from BA after there was a vote by Unite members to stage a walkout. However, because some of the ballots had been spoilt, BA claimed the vote was invalid.
This week, Unite intends to appeal to the High Court over the removal of flight concessions and disciplinary action taken by the airline against those involved in the industrial action.
Since the beginning of the year there have been 22 days of walkouts. It is estimated that the strikes have cost BA in the region of £150 million.
Tags: BA, ballot, British Airways, cabin crew, Heathrow, High Court, strike, union, Unite
Posted in UK News | Comments Off
Monday, September 13th, 2010
Experts in car hire solutions, Avis UK, has announced that it will be opening its 15th London branch at Westfield shopping centre in West London. Avis says that it wants the new flagship store to be a gateway for those wishing to easily get out of the city.
The Westfield centre is extremely well positioned for customers wishing to take their car hire out of the city on the M40, M3 and M4.
The shopping complex is also just minutes from the underground stations of Shepherd’s Bush, White City and Wood Lane as well as the overland rail service at Shepherd’s Bush. Picking up a hire car from Westfield will now allow customers to avoid the busy streets of the capital and head straight for the West Country.
Avis UK’s Head of Marketing, Nick Mountfield, said: “We’re really excited about the opening of our new Avis branch at Westfield. Not only is it Europe’s largest shopping centre, its location is ideal for those looking to escape London for a weekend getaway via the M3 to the South Coast, the M4 to the West Country and Wales or the M40 for the Cotswolds and beyond.”
The new West London flagship branch is just another service Avis has offered to its London customers. The recent launch of the Avis Home Delivery service means that those short on time can arrange for a vehicle to be delivered to their front door at a time that suits them anywhere in the London Area. The vehicle can also be picked up at a pre-arranged time – all for £10 each way.
Tags: Avis, Avis Home Delivery, Avis UK, car hire, hire car, Shepherd's Bush, shopping centre, Westfield, White City
Posted in Car Rental News | Comments Off
Monday, September 6th, 2010
As councils across the country struggle to find funds for their road safety programmes, the AA warns that scrapping speed cameras will put more lives at risk as motorists increase their speeds. According to research conducted by Thames Valley Safer Roads Partnership, the number of drivers speeding past cameras has increased by 88 per cent since they were deactivated.
Residents in Oxfordshire have been voicing their concerns over a county-wide switch off of speed cameras because the council removed £600,000 worth of funding. Although the government is attempting to show that it intends to stop the so called war on motorists, some are concerned that this is happening at the expense of road safety.
President of the AA, Edmund King, said he realised that speed cameras were unpopular with many drivers but stood by them in principle saying that when they were put up in the right place they helped to reduce drivers’ speeds in an acceptable way to most motorists.
The government has stripped £38 million out of its road safety budget as it desperately tries to tackle the country’s financial deficit. This means that most councils have also had to cut back on road safety. The AA fears that the harsh financial realities could see a rise in accidents as road safety is neglected.
Since 1992 when speed cameras first started to appear on the roads around 6,000 devices have been deployed. The Department for Transport said even though many cameras were disappearing, road safety was still a number one priority for the government.
Tags: AA, Budget, Department for Transport, drivers, funding, motorists, road safety, speed cameras, speeding
Posted in Travel News | Comments Off
Monday, August 30th, 2010
Iberia, the Spanish carrier which signed a deal with British Airways to form one of the largest airline groups in the world in April, has declared a return to profit. Iberia announced a €31 million gain for the second quarter of 2010 compared to a €73 million loss for the same period a year earlier.
For the first half of this year Iberia also said it had been able to cut operating costs by almost 6 per cent. It did this by reducing capacity on some routes, establishing ways of stripping out unnecessary expenditure and reducing its fuel bill. South American destinations have also been an area of growth for the carrier.
The airline said that it had managed to increase revenues in the international market where business travel was showing signs of improvement. However, negative results were being seen in the domestic market which is still struggling.
As with many other European carriers, Iberia felt the effects of the ash cloud which settled over Europe earlier in the year grounding planes for nearly a week. Although Iberia remained active on some routes, including Madrid-New York, it claims the volcanic cloud cost it in the region of €20 million.
The proposed merger between Iberia and BA is expected to be completed by the end of the year. Although both airlines will still operate under their own liveries, the new company is to be called International Airlines Group. It will be based in London and BA shareholders are to retain 55 per cent.
Tags: airline, ash cloud, BA, British Airways, Iberia, International Airlines Group
Posted in Finance and Business | Comments Off
Monday, August 23rd, 2010
Far from ending the war on motorists, the government may be instructing councils to look at ways of increasing revenues through the country’s drivers, in particular, by introducing a new parking tax on those who use a vehicle to get into work. According to an investigation by the Daily Telegraph, city councils may be planning to impose levies of as much as £250 per year, or higher, on those using a parking space at work.
New charges could have an effect on around 10 million drivers every day. A new parking charge will be bad news for those who live in remote areas and have no other choice but to drive to their place of work.
A levy on parking has been condemned by many as yet another government stealth tax. Originally touted as a way of reducing CO2 emissions and congestion on the roads, the levy is now being seen as a way for councils to bump up their revenues.
Arup transport analyst, Hilary Holden, said the squeeze on council funding will mean that many around the country will now be pushing the idea of work place parking levies. Arup is currently helping a number of councils work out how best to implement such schemes.
A spokesman for motoring organisation, the AA, said the government did not appear to be ending its war on the motorist as had been promised. He added that the new levy on motorists who needed to park their cars at work was actually more like the government opening another battle front.
Tags: AA, drivers, emissions, government, motoring, motorists, parking space, parking tax
Posted in UK News | Comments Off
