News

Archive for September, 2009

Sixt car rental optimistic over increase in revenue

Wednesday, September 2nd, 2009

Major UK Car company Sixt, has reported a high level of demand for both business rentals and vehicle hire for the second quarter of 2009, recording an increase of revenue, up 7.8% in comparison to the first quarter.

Sixt says the increase in revenue is due to cost cutting measures implemented at the end of last year, including a reduction in rental fleet.

The chairman of the managing board, Erich Sixt, said: “Sixt has successfully adapted to the change in the market environment. The second quarter has shown that our cost-cutting and efficiency-enhancing measures are starting to take effect. A cautious fleet policy, price increases, customer-focused product innovations and cost awareness are the key factors for continued success in this environment.”

Sixt’s managing director says that he’s pleased with the results considering the current difficulties in the market.

He went on to say that the 7.8 increase would keep the company feeling upbeat about the remainder of the financial year.

Readers of Travel + Leisure magazine name the rated the company as the World’s Best Car Hire Agency in a survey earlier this year.

Travel agents riled by United move

Wednesday, September 2nd, 2009

US travel agents are up in arms over United Airlines shifting the cost of credit-card fees to travel agents, beginning next month.

The move by UAL Corporations has alarmed the American Society of Travel Agents, which is concerned other airlines may follow suit, potentially increasing the cost for agents and consumers by more than $2 billion per year.

Although no other airlines have followed United’s moves, travel agents fear the change could spread across the industry, potentially raising the cost of tickets.

The move targets just 28 travel agents that don’t do much business with the carrier, with the charges to be implemented from September 28.  Once the changes take effect, United will no longer pick up the merchants fees for tickets purchased at travel agents, usually at two or 3 percent of the ticket price.

However a United spokeswoman said the change follows a cost-benefit analysis that will affect less than 1 percent of travel agents that do business with the airline.

She went on to say tat the agreements were implemented by the need to improve travel agent performance and to adjust costs associated with travel agency profits against the profits they generate.

Agents could avoid the fees if they stop booking United fares of or the customers pay cash.

Aer Lingus to keep long haul services

Tuesday, September 1st, 2009

Ireland’s flagship airline Aer Lingus announced on Sunday that it doesn’t plan to cull its long haul services as part of plans to reverse increasing losses.

A newspaper report said senior management believed cutting back routes to the US was a possibility in the medium term, however an airline spokesman said the former state carrier would remain in the sector.

“We’re not getting out of long-haul but we have to make long-haul work,” the spokesman said.

The report also said the airline was contemplating shifting its focus away from major European hubs and moving towards using “secondary” airports, a key strategy for major competitor Ryanair in order reduce costs.

“That has yet to be decided,” the Aer Lingus spokesman said in response, without elaborating.

The article in The Sunday Tribune says plans were being considered by management would still include keeping routes from London Heathrow and Paris Charles de Gaulle, but move out of other expensive airports in smaller cities.

Aer Lingus recorded a first-half operating loss last Thursday and said that no bank was prepared to lend the money for the airline to order new aircraft because of its cash burn rate, pledging a massive cost-cutting scheme to make the business profitable again.

Parts replacement deadline looms for Southwest

Tuesday, September 1st, 2009

Major US carrier Southwest Airlines faces a deadline on Tuesday to reach an agreement with the Federal Aviation Administration (FAA) over the replacement of parts on 82 Boeing 737 aircraft, and failure could result in jets being grounded.

Talks between both the airline and the FAA continued yesterday as the sides try to set up a schedule to replace the hinges on the back of wings for the jets.  Southwest grounded 46 planes late last before the FAA granted a 10-day waiver.

The parts in question were installed by a third-party maintenance contractor that didn’t have proper permission to install the parts.

The parts, installed by a third-party maintenance contractor and not by Southwest’s own aircraft mechanics, didn’t have proper permission to install the parts in question.

Southwest has since suspended the vendor, D-Velco, which was subcontracted to rplace the parts.

The replacement of parts undertaken by an approved vendor could take up to three months.

“We are still in talks with the FAA to allow us to continue replacing these good parts in a timely manner for minimal disruption to air service for customers,” Southwest spokeswoman Beth Harbin said Monday.

The FAA said Friday that talks were still ongoing.

Air France crash inquiry needs more money

Tuesday, September 1st, 2009

Investigators searching for the Air France plane that disappeared over the Atlantic Ocean in June are still searching for answers and require more money and resources to search for the aircraft’s flight data recorder.

Paul-Louis Arslanian, head of France’s Bureau of Investigation and Analysis (BEA) said “At the moment, we can’t explain the accident”.

He said that a further search for the plane and debris in order to locate the flight recorders could cost tens of millions of euros.

“We are making progress and will make progress and I’m optimistic, but this will take time,” he told journalists in Paris. “It takes a year and a half, being responsible and reasonable, in order to make progress and ensure that we’ve run through all of the questions.”

Investigators still cannot pinpoint the location of the Airbus A330 that was enroute from Rio De Janeiro to Paris when it disappeared from radar screens into the ocean, killing all on board.

So far, the search has failed to locate the aircraft’s data recorders, which could mean the cause of the crash may never be fully known.

Arslanian said Airbus has offered to help fund the investigation but more commitments are needed.

“We have to mobilize resources. It’s not only having promises for money, we need to know who will contribute financially and how,” he said.

The aircraft went down more than 900 miles off the coast of Brazil and hit the ocean belly first at a high speed.

Garuda Indonesia infiltrated by terrorist

Tuesday, September 1st, 2009

A suspect wanted in connection to the Jakarta hotel bombings earlier this year infiltrated the nations flagship carrier in a plot to carry out a “bigger” attack, Indonesian police officials said yesterday.

The suspect, identified only as Syahrir, was recruited by a militant Islamic network and had worked as a technician with Garuda, General Bambang Hendarso Danuri, the National Police Chief said.

Police uncovered documents that included plans to strike Indonesia’s airline sector, he said without providing details on how or when the attacks were to have taken place.

The suspect has resigned from the airline and remains wanted by the police.

Authorities are also still searching for perpetrators involved in the recent hotel bombings, including the alleged mastermind Noordin Muhammed Top, who is said to run Jemaah Islamiyah, which is believed to have close links with al Qaeda.

The discovery of the terrorist plot comes after blasts at the J.W Marriot and Ritz-Carlton hotels on July 17, which killed seven people and injured more than 50.

The recent bombings end Indonesia’s four-years with the absence of terrorist attacks after a spate of bombings between 2002 and 2005 that killed more than 240, mostly foreign tourists on the resort island of Bali.

US Car hire company sells cars without airbags

Tuesday, September 1st, 2009

A leading US car rental company has recently ordered thousands of cars minus side impact airbags in a bid to save money, and then later sold the vehicles to buyers without the safety feature.

Enterprise Rent-A-Car ordered a fleet of Chevy Impalas without the standard side impact protection, choosing not to purchase the optional standard.

Following the rental of the vehicles, the US based Enterprise sold their vehicles on their website, but failed to point out that the vehicles were missing air bags.

The company defended their decision to opt out of the safety device, noting that airbags are not yet required by the government.

It was estimated that the decision to leave out the airbags saved Enterprise approximately $11.5 million on 66,000 cars.

According to the Insurance Institute for Highway Safety, studies show that side impact airbags can reduce highway deaths by up to 45 percent, and 8,000 motorists were killed in side-impact collisions in 2007 alone.

A company spokesperson said:  “In some circumstances a software glitch caused us to describe them incorrectly as having air bags [on our Web site]. When we found out, we immediately fixed the problem.”