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Archive for October, 2011

Air France still flying despite cabin crew strike

Monday, October 31st, 2011

Air France is claiming that although there has been some disruption to services caused by a walk out by cabin crew, the result has not been as damaging as was expected. The airline had said it was aiming to keep 80 per cent of services in the air over Saturday and Sunday. In the end, the carrier claimed it had managed to keep that figure closer to 90 per cent.

Today, it said it expected to cancel around 15 per cent of scheduled services. The strike, which has come about after a row over working conditions, is set to last until Wednesday.

Air France has said that it is disappointed that unions have chosen such a busy period to call members out on strike. As well as being the middle of the school holidays, Tuesday is a national holiday. Many therefore will have taken today off to give themselves a mini break.

Air France-KLM, the mega-airline formed in 2004 when the French flag carrier joined up with Dutch giant KLM, is the largest European airline in terms of revenues generated. The strike action is only currently affecting the French arm of the company.

Minister for the government, Nathalie Kosciusko-Morizet, said the timing of the cabin crew strike was inexcusable, and came at a time when the airline is in a fragile position. Next week, Air France will deliver its latest financial results. Although the carrier is being tight-lipped, there are rumours that the results will include a warning about end of year profits.

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Bangkok faces threat of increased flooding

Friday, October 28th, 2011

An already inundated Bangkok may have to contend with increased flooding as its main river threatens to burst its banks. High tides could result in the Chao Phraya spilling over, which would be devastating. The government is desperately trying to come up with solutions to ease the situation. Yingluck Shinawatra, Thailand’s prime minister, has said that channels could be dug along roads in eastern districts so that water could better flow out to sea.

Unusually heavy rains have meant flooding in many parts of Thailand in the last few weeks. The floods have already claimed the lives of more than 370 people, and millions have been displaced.

Roads leading out of the capital are currently jammed with traffic. A five day holiday has been declared by the authorities so that residents have a chance to get out of the parts of the city most at risk. Many are heading south, and popular tourist spots such as Pattaya and Hua Hin are preparing for an influx.

The situation means that many governments around the world are advising people not to travel to Bangkok. The city has a population of around 12 million people, and is responsible for more than 40 per cent of the country’s economy. In the north of Bangkok, several massive industrial estates have been forced to shut down.

Kittirat Na-Ranong, the deputy prime minister, said job losses in the affected areas should not exceed 10 per cent, adding that when the recovery work began, there would be more than enough for people to do.

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Fears for tourism in Thailand as Bangkok floods

Thursday, October 27th, 2011

Severe flooding in many parts of Thailand over the past two months is beginning to take its toll on the country’s tourism industry, according to officials. The crisis has worsened as the flood waters encroach on the capital, Bangkok. Don Muang, the city’s second airport, has had to close its doors because water levels have risen to a point where passengers and staff have been unable to reach the terminals.

The airport was being used as a shelter for citizens trying to escape the floods, and the government had set up its crisis centre there. Officials will now have to find somewhere drier, as will around 4,000 refugees.

The closure will not significantly affect the ability of foreign tourists to fly into Thailand as the airport deals mostly with budget airlines and regional services. Suvarnabhumi International airport is currently functioning as normal, and is the hub into which most foreign visitors fly.

Head of the Association of Thai Travel Agents, Sisdivachr Cheewarattanporn, said that if the situation gets any worse, the country could see a drop in visitor numbers of around 20 per cent. He added that tour operators were already receiving cancellations from some markets.

He went on to say that European visitors appeared to be staying away, but that people were still arriving from countries such as Russia, India and China. Thailand relies on tourism to make up around six per cent of its GDP. About 15 per cent of the country’s workforce is involved in the industry.

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US to fight EU airline carbon emission charge

Wednesday, October 26th, 2011

US lawmakers have objected strongly to European legislation that will make American airlines subject to a new carbon emissions charge.  Under the European Union’s emissions trading scheme, all airlines flying in and out of Europe will have to pay for permits. The money raised by this will be used to offset the greenhouse gasses being produced by the carriers.

However, John Mica, chairman of the House Transportation Committee, said imposing the rules on US cargo and passenger carriers did not conform to trade treaties already in place or international law. He added that he had met with officials from the EU to explain that he considered the charge an unfair tax, and that the US would continue to pursue the issue.

Henry Waxman, of the House Energy and Commerce Committee, did not agree. He lauded the EU’s initiative to do something to combat global warming and said America should respect the laws of Europe.

The Obama administration has said that it does not think the EU has looked carefully at the legal aspect of the new rules, and the State Department has objected to US carriers being subject to the legislation. The EU has made it clear that any carriers not in compliance will be fined.

One US carrier not keen to be subject to European legislation on the matter is American Airlines because of the presence it has at Heathrow. Other countries have already made objections, including China. Beijing said that orders for aircraft manufactured by Europe’s Airbus could be put on hold if the rules extended beyond European based airlines.

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RMT slams TfL for dangerous proposals in leaked paper

Tuesday, October 25th, 2011

The country’s largest transport union has condemned a leaked paper, drawn up by Transport for London, which suggests new technology could replace staff on the London Underground. The RMT claims that ideas such as closing ticket offices at stations and introducing driverless trains across the network are irresponsible and dangerous.

The authors of the document make the point that the introduction of such measures could reduce the workforce on the Tube by 1,500. The outlined plans include shutting all but 30 of the ticket offices in favour of introducing more ‘wave and pay’ machines. The 30 remaining offices would then be turned into information centres.

The RMT is appalled at proposals to make all the trains on the network fully automated. It pointed out that a remote controlled train was not much use to passengers stranded in a tunnel. Union boss, Bob Crow, also said that reducing staff at stations would create a paradise for vandals and muggers.

However, TfL has been quick to point out that the document was only being used to create discussion. Managing director of the London Underground, Mike Brown, said that nothing had been agreed to by the mayor, TfL or the Tube’s board. He added that LU was still very much committed to keeping stations fully staffed at all times.

The paper suggests that, by the end of the decade, all trains on the network will be controlled remotely. However, experts believe this may be an unrealistic target because of the amount of testing which would be involved.

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Travel companies continue to feel the squeeze

Monday, October 24th, 2011

Tour operator Thomas Cook has managed to secure funding which it hopes will help it survive the difficult trading period before Christmas. This year has been a difficult one for the firm which has issued three profit warnings. Thomas Cook has seen its share value drop by 80 per cent, and also been forced to part company with its chief executive.

According to the company, the latest bailout was originally agreed last year. However, factors including the disruption in North Africa and the Middle East, the volcanic ash cloud and a dismal performance in the UK market have severely harmed underlying profits.

Paul Hollingworth, the firm’s finance boss, said it was encouraging to have the support of the banks. He added that the extra cash would help the company to cope with the traditionally slow period in the travel industry at the end of December.

In a new report, experts are warning that trouble with finances could see a number of high street travel agents go under. Begbies Traynor, a corporate administration firm, is warning that the economic downturn meant that holiday bookings have dwindled to the point where many firms are currently struggling to stay above water.

Julie Palmer, a Begbies Traynor spokeswoman, said the fourth quarter was traditionally a period where the cash flow was most strained for tourism and travel operators. She added that many were feeling distress in the third quarter, which was not a good sign for the next few months. She went on to say that as household budgets continued to feel the squeeze, discretionary spending was being put on hold.

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Virgin Australia close to partnership with Singapore Airlines

Friday, October 21st, 2011

Virgin Australia has come one step closer to a tie-up with Asian giant Singapore Airways after regulators gave a green light. Last week, the Australian Competition and Consumer Commission announced a draft ruling that a deal could go ahead, and this week the Singapore Competition Commission said it had no objection to a partnership which would see both carriers cooperate on scheduling, pricing, sales and marketing.

The airlines would also be able to codeshare on routes and offer customers deals on each other’s frequent flyer packages. Virgin Australia’s chief executive John Borghetti has been aggressively pursuing tie-ups with other airlines as one of his key strategies to reposition the carrier.

Virgin has already managed to secure regulatory approval for partnerships with Air New Zealand, Middle Eastern carrier Etihad Airways, and Delta Airlines in the US. The tie up with Singapore would give Virgin greater access to the extremely lucrative Asian market, currently the worlds fastest growing in the airline industry. It will also help Virgin increase its share of corporate business, a market currently dominated by Qantas in Australia.

The Virgin Australia boss has also been awarded the prize for being CEO of the year by the CAPA Centre for Aviation. The ceremony took place in Singapore, and Peter Harbison, the body’s executive chairman, said Mr Borghetti had been chosen because of his vision and innovation.

He added that Mr Borghetti had managed to reposition and expand the airline while influencing the way in which the airline industry would move forward in the future.

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Bolivian road protesters greeted on the streets of La Paz

Thursday, October 20th, 2011

Thousands of supporters have turned out on the streets of La Paz, Bolivia’s main city, to greet anti-road protesters who have marched from the Amazon. The demonstrators have been marching for two months on a journey of 500 miles. As they approached the city, President Evo Morales sent a message inviting them for talks.

Mr Morales had previously refused to go out on the road and talk to the group, who have said they will not be returning home until the government puts a stop to plans to build the highway through their homeland.

Outrage swept Bolivia after riot police were sent in to disperse the 1,000 strong group of men, women and children with truncheons and tear gas. The incident resulted in two ministers resigning from their positions.

The government claims that the Brazilian funded project will help to boost the Bolivian economy and provide better links between the regions. The people of Tipnis say that a road will result in deforestation and result in illegal settlers moving onto their land. Following the failed attempt to disperse the marchers, Mr Morales said plans would be put on hold until the results of a referendum were in.

If the government continues with the scheme, it is likely that other groups will join the protest. However, if the project does not go ahead, then supporters of Mr Morales could begin to stage their own demonstrations. This all comes at a time when Mr Morales is seeing his popularity with the people plummet.

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Premier Inn announces rise in profits

Wednesday, October 19th, 2011

Whitbread’s budget hotel chain, Premier Inn, is continuing to perform well, especially in London. The leisure group has managed to declare a jump of 15 per cent in half-year profits. However, Whitbread’s finance director Chris Rogers warned that the consumer spending environment in the UK was extremely volatile. He added that it was almost impossible to figure out a trend because there were huge variations each week and each month.

Revenue per available room was up by 11.4 per cent in the capital for the six months compared to a year earlier. However, ‘revpar’ for the regions had increased by just three per cent on the same period last year.

The company said that increased numbers of domestic visitors and tourists to London had helped overall revpar increase by 4.4 per cent over the six months. Premier Inn now has 607 hotels after the opening of five in the Middle East and 11 new Inns in the UK. Revenues for the chain are £393.4 million, a jump of 10.6 per cent.

Mr Rogers said that growth was occurring during the week and at the weekends, meaning that there was a marked increase in both business and leisure guests.

Looking forward to next year’s Olympic Games in the capital, Mr Rogers said he did not think the event would have a significant impact because only 15 hotels in the centre of the capital would be directly affected. He added that the Games would be positive, but not particularly material.

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Man dies after falling from Eurostar train

Tuesday, October 18th, 2011

Eurostar passengers were delayed for several hours after a man fell from a train shortly before it would have entered the Channel Tunnel in Kent. According to a British Transport Police spokesman, the man is believed to be a 22-year-old Albanian who had crossed into the UK from Brussels. Having been denied entry, he was apparently returning to the continent of his own volition.

The incident occurred just after 17:00 as the train was travelling through Cheriton. The police said they had managed to recover the body and transport it to Ashford’s William Harvey Hospital. The train on which the man was travelling was removed from service just after 22:00 so that the line could go back into service.

Although the man is yet to be officially identified, the UK Border Agency said that its staff were not deporting him. According to Richard Ashworth, a Conservative MEP who was travelling to Brussels on the train, there was a delay of around three hours following the incident, after it was announced that the service would be going back to Ashford.

Mr Ashworth said that passengers understood that a migrant denied entry to the UK had managed to get off the train while it was moving. He added that he couldn’t understand how the man had managed to do this.

He went on to say that passengers got off the train at Ashford and were asked to wait for the next London bound service. The train apparently got back into Waterloo at around 22.30.

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