Archive for September, 2010
Thursday, September 30th, 2010
Dollar Thrifty may learn today whether or not it will be taken over by rival car hire firm Hertz. Although Dollar’s management is recommending that the company accept the Hertz deal, one of its major shareholders could still put a spanner in the works.
PAR Capital Management, which owns 7.7 per cent of the company, is not convinced Hertz’s offer, worth around $1.5 billion, will deliver sufficient returns to Dollar’s investors. PAR has therefore apparently said it will be saying no to the takeover.
Hertz will most likely walk away from the negotiating table if shareholders turn down its offer. This will clear the way for car hire giant Avis to step in. Avis has always refused to include a reverse termination fee in its offers for Dollar. However, if Dollar walks, it says it will offer a break-up fee worth $20 million.
A reverse termination fee is a lump sum put up by a company interested in purchasing another company as a form of insurance. If all stipulations of the deal are met and the deal does not happen, then the break-up fee goes to the target company. Hertz has included a reverse termination fee worth $44.6 million in its offer.
Dollar Thrifty has preferred Hertz ever since it first offered to buy the company in April. Although Avis has consistently said it will offer more for Dollar, the company believes any deal with Avis would be thwarted by the competition watchdogs. Earlier this month, Hertz upped its offer for the firm to around $50 per share.
Tags: Avis, car hire, Dollar, dollar thrifty, Hertz
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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.
Tags: AA, alliance, american airlines, BA, British Airways, Iberia, Oneworld, SkyTeam, Star, transatlantic
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Tuesday, September 28th, 2010
British Airways could face competition on its Libyan route if Bmi launches a proposed daily service to the country. Bmi plans to start running between Heathrow and Tripoli on 1 December. The new service is aimed, in part, at giving oil workers more options. The airline currently transfers oil industry professionals from Aberdeen to Heathrow from where they transfer to other carriers to continue their onward journey.
At the moment Bmi, which is owned by Lufthansa, flies to a number of countries with rich oil reserves. In the Middle East it provides services to Jeddah and Riyadh and in Eastern Europe it flies to Almaty and Moscow.
The new Tripoli service will be an additional destination for the carrier in Africa where it already flies to destinations including Freetown, Addis Ababa, Khartoum and Cairo.
A spokesman for Bmi said the decision to enter the Libyan market was to benefit both business and leisure customers. He added that relations with the North African country were continually improving and UK tour operators were now realising that, because Libya is mostly Sahara Desert, there are growing tourism opportunities in the region.
The spokesman dismissed any concerns that this might be a politically sensitive time to be adding a service from the UK to Tripoli. American politicians are accusing oil giant BP of having a hand in the repatriation of Lockerbie bomber Abdelbaset Ali Mohmet al-Megrahi. BP is saying it has never discussed al-Megrahi, and especially not when it came to being awarded an exploration contract by Gaddafi’s government worth £570 million.
Tags: bmi, BP, British Airways, Gaddafi, Heathrow, Lockerbie, oil, Sahara
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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
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Friday, September 24th, 2010
Avis South Africa has committed 21 vehicles to support the drivers and teams taking part in this year’s South African Solar Challenge. Competitors yesterday began a race around the country which will cover 4,000 miles and take 10 days to complete. All vehicles will be relying completely on the South African sun.
The event has been organised by the Advanced Energy Foundation in partnership with the Innovation Hub. As well as promoting science and technology within the country the organisers hope the event will promote sustainable and alternative methods of vehicle power to the motor industry.
Chief executive at Avis, Wayne Duvenage, said the event fitted well with the firm’s own commitment to resolving energy issues. He explained that over the last four years Avis had been investing in ways of recycling the water it uses at its car wash facilities. He said Avis was now saving 75 million litres of water every year at a cost saving of R1 million.
Among the 21 vehicles being supplied by Avis, six are Toyota Prius hybrids, known for their efficiency and low emissions.
Having left Pretoria, the teams will be making for Cape Town. From there the solar powered vehicles will turn east to the mountains of Kokstad passing through Bloemfontain and Beaufort West on the way. Then it is on to Richards Bay via Durban before a race across Mpumalanga to the finish line back in Pretoria. In 2008 a team from Tokai University, Japan were first to see the chequered flag. The same team is the favourite to win this year’s event.
Tags: Advanced Energy Foundation, Avis, Innovation Hub, low emissions, Solar Challenge, Toyota Prius
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Thursday, September 23rd, 2010
Further industrial action by French public sector workers will cause chaos for many airline passengers today as French airspace is essentially closed for business. The walkout by air traffic controllers, in protest over Nicolas Sarkozy’s attempts to raise the age of retirement from 60 to 62, means that more than 400 flights will be cancelled to and from the UK.
British Airways said it may have to cancel 20 flights and has advised those who have tickets with the airline to get in contact before setting out for the airport. Budget carrier easyJet said its passengers would face cancellations and delays and also asked customers to check services are still running before leaving the house.
Michael O’Leary, Ryanair’s boss, has been true to form and lashed out at French air traffic control. He said many of the delays caused to passengers this summer have been due to European governments’ inability to control their own air traffic services. He added that passengers and airlines were being blackmailed by strikes and the mismanagement of European airspace.
Ryanair said it had been forced to cancel more than 200 services. Those finding themselves stuck because a flight has been cancelled are entitled to claim compensation for food and accommodation if it is required. Passengers are also entitled to a seat on the next available flight at no extra charge.
Eurostar said it currently doesn’t expect any disruptions on its services and Eurotunnel said it would be running business as usual. Ferry operators P&O said channel services would be running to schedule.
Tags: air traffic control, airport, British Airways, easyjet, Eurostar, flights, Michael O'Leary, P&O, Ryanair
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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.
Tags: car hire, Clinton global Initiative, electric vehicles, Environmental Defence Fund, Hertz, Nissan LEAF
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Tuesday, September 21st, 2010
As a way of illustrating to customers and employees the technology behind electric vehicles, Enterprise Rent-A-Car has taken delivery of its first Nissan LEAF. Over the next few weeks the car hire giant aims to take this test car around the areas where it will soon be widely available to introduce people to the advantages of electric powered cars.
Lee Broughton, director of sustainability at the firm, admits that there is still a great deal of mystery associated with electric cars. He said that by unveiling the Nissan LEAF he hoped people would begin to understand the benefits of electric vehicles and be persuaded to rent them.
As of December, Enterprise hopes to start taking delivery of 500 Nissan LEAFs. The cars will be introduced into fleets where there is already the infrastructure to maintain the vehicles, as well as keep them charged. Initially the cars will be available in seven markets including Nashville, Phoenix, Los Angeles, San Diego, Portland, San Francisco and Seattle.
On a single charge the Nissan LEAF can be expected to travel 100 miles. The cars can be charged at home using a 110-volt outlet; at a public charging station through a 220-volt outlet or at a commercial 480-volt fast charging station.
Broughton said he hoped people would quickly become aware of the advantages of reserving an electric vehicle when they booked through Enterprise. He added that the addition of the Nissan LEAF to the company’s fleet meant newer, cleaner technologies now had a chance to prove themselves.
Tags: car hire, electric cars, electric vehicles, Enterprise, enterprise rent a car, Nissan LEAF
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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
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Friday, September 17th, 2010
Chinese car hire service providers, China Auto Rental, is to be taken over by investment firm, Legend Holdings. The announcement was made at a recent press conference where Legend Holdings confirmed that in exchange for more than 50 per cent of the rental giant it would be pumping 1.2 billion yuan of investment in with additional cash promised to assist with the company’s future growth.
This is the first foray into the service industry for Legend Holdings; better known for its investments in the IT sector and real estate. Legend’s executive vice president, Zhu Linan, said the goal was to make China Auto Rental the firm’s new core asset.
China Auto Rental is a car hire firm with operations stretching across the Chinese domestic market. It currently has more than 300 outlets spanning 41 cities. It has nearly 6,000 vehicles in its rental fleet and more than 500,000 private customers. It also has more than 400 corporate customers.
Zhu said that by acquiring such a well established business he hoped to be well on the way to making Legend Holdings a major listed investment company. He added that he hoped this would be achieved within the next seven years. Zhu went on to predict the vehicle rental market in China would grow to 38 billion yuan by 2014.
Zhu also predicted that across China the number of rental cars available would be in the region of 400,000 by 2014. Because of its dominance over its rivals, especially in major cities, Zhu felt that now was the perfect time to acquire China Auto Rental.
Tags: car hire, China Auto Rental, Legend Holdings, rental fleet, service industry, vehicle rental
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