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Archive for December, 2011

Airline chiefs again calling for APD abolition

Friday, December 30th, 2011

The bosses of Ryanair, easyJet, Virgin Atlantic and British Airways parent International Airlines Group, have once again come together to put pressure on the government to abolish Air Passenger Duty. The demand is being made ahead of the introduction of the European emissions trading scheme which will begin on 1 January.

In a joint statement IAG’s Willie Walsh, Carolyn McCall from easyJet, Michael O’Leary from Ryanair, and Virgin Atlantic CEO Steve Ridgway explain that APD is no longer necessary as ETS will make European airlines carbon neutral. APD was originally introduced as a way of getting UK airlines to offset the amount of CO2 they were producing.

The statement points out that the £2.5 billion per year raised by APD is going into the government’s coffers rather than towards helping the environment. Ministers have said they would like to see the revenue created by APD increase to £3.6 billion by the year 2016.

The airline chiefs also point out that by the end of the decade, UK carriers will be paying 400 million euros annually under ETS. The statement also says that airlines are already doing their bit to reduce the environmental impact of aircraft and that APD actually hampers those efforts.

When ETS is introduced it will apply to all carriers flying in and out of European airports. A number of foreign governments have said that the scheme is contrary to international law and are threatening retaliation. Any airline refusing to conform will be heavily fined and could be banned from European countries.

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Governments threaten retaliation over EU airline tax

Thursday, December 29th, 2011

Europe could face retaliation from foreign governments if it goes ahead with plans to introduce a carbon tax on airlines at the beginning of next year. Airlines flying to and from Europe who do not agree to the new rules will be faced with steep fines and could also find themselves banned from entering the EU.

A number of countries have already threatened various forms of retaliation. Russia said that it is considering charging European airlines for flying through its airspace; India has said it may introduce a tax of its own and China has threatened to cancel orders for aircraft with Airbus, which is based in Europe.

US Secretary of State, Hilary Clinton, said that any taxation would force Washington to take appropriate action. A joint challenge to the new rules by US and Canadian airlines last week was dismissed in the European Court of Justice.

According to the International Air Transport Association, Europe’s carbon tax could cost airlines in the region of 900 million euros over the course of next year. This figure could rise to 2.8 billion euros per year by the end of the decade. This is expensive for an industry which IATA predicts will only make 3.5 billion euros in profit as a whole in 2012.

Europe has admitted that the introduction of the carbon tax is likely to mean a hike in air fares. It also expects the demand for seats to fall. In September, a total of 21 governments got together to condemn the tax.

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HS2 project could swamp Underground stations

Wednesday, December 28th, 2011

Transport bosses are warning that if plans to build a high-speed train link between London and Birmingham go ahead, increased congestion at some of the capitals key Underground stations could cause them to have to close during the morning rush-hour.

Transport for London’s deputy chairman, Daniel Moylan, said that the High Speed Two project would mean an influx of extra passengers to Euston which the station is simply not built to cope with. He explained that unless an expansion project was undertaken, then Euston would have to close down to deal with the extra influx, which would undermine HS2’s intended time saving benefits.

The London to Birmingham line aims to slash the current journey time to 49 minutes. Mr Moylan predicted that if HS2 were to go ahead, by 2033, the number of passengers intending to get onto the Victoria Line at peak hours in the morning would increase to 8,373 from 4,353. This doubling in numbers would make the average waiting time around 30 minutes.

The number of passengers wanting to use the Northern Line would also almost double, according to Mr Moylan. Mayor of London Boris Johnson, who has been critical of some of the aspects of the HS2 scheme, admitted that there needed to be improvements in the transport system.

An HS2 spokesman said the project would only increase numbers at Euston by two per cent during the project’s initial phase. He added that redevelopments at Euston would not only be of benefit to HS2 customers, but all those who use the station.

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Air pollution in Scotland fails to meet EU targets

Tuesday, December 27th, 2011

An environmental charity has condemned the Scottish authorities for continuing to ignore the health issues caused by high levels of pollution created by traffic in many of the country’s major cities. WWF Scotland said that European Union targets were being breached in areas of Dundee, Aberdeen, Glasgow, Edinburgh and Perth.

Dan Barlow, WWF Scotland’s head of policy, described the findings as unacceptable, adding that rather than continuing to delay deadlines for improving air quality, the government should start to do something proactive. He explained that if the authorities continue to focus in investing in the roads, rather than trying to improve public transport, or get more people to walk or use a bike, then Scotland may continue to miss pollution targets until at least 2020.

Mr Barlow said that it was the failure of governments to come up with a sensible strategy of pollution reduction which has led to the current situation and that this was causing human health to suffer.

Every year, millions of tonnes of carbon monoxide, sulphur dioxide and nitrogen dioxide are pumped into the atmosphere by vehicles in the UK. According to the government’s Environmental Audit Committee, the pollution created by cars and other transport now means that residents of the UK have a life expectancy which is six months shorter than it should be.

A spokesman for the Scottish Government said that its Infrastructure Investment Plan proved that the authorities were keen to promote active travel, invest in public transport and develop greener transport alternatives.

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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.

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IAG buys BMI from Lufthansa

Friday, December 23rd, 2011

Virgin Group boss Sir Richard Branson has said he intends to fight a deal between Lufthansa and British Airways owner International Airlines group for the control of BMI. The agreement, which is worth £172.5 million, would see IAG increase its share of the take-off and landing slots at Heathrow significantly exceed the 50 per cent mark.

Virgin claims that a monopoly at the airport would be damaging for business, the consumer and Britain. Before IAG takes control of BMI, the competition regulators will have to examine whether or not this is the case. In the past, the European Commission has denied tie-ups between airlines, but this is usually because of lessened competition on particular routes, rather than dominance at airports.

Lufthansa and IAG are hoping that the sale will be completed within three months. IAG chief executive Willie Walsh said that there will be a significant restructuring of the loss-making BMI, and admitted that there would be a loss of some jobs. However, he said that in the future more jobs would be created.

In 2010, Lufthansa said that BMI had made losses of £153 million. The carrier currently employs some 3,600 staff and primarily flies to destinations in the Middle East, Africa and Asia.

BMI Regional and BMI Baby are currently not part of the deal. Lufthansa will attempt to sell these entities off separately before it finalises the deal with IAG. If BMI Baby is not sold in this time, IAG will have the option to purchase it at a reduced price.

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Avis introduces MG6 models to its fleet

Thursday, December 22nd, 2011

Leading car hire firm, Avis Rent A Car, has confirmed that customers will soon be able to book and drive away in MG Motor UK’s brand new MG6 models. The company announced that it has already taken delivery of 100 MG6 Magnette sports saloons, and MG6 GT fastbacks. Once the models are introduced to fleets around the UK they will be available for hire for journeys including leisure and business trips.

Avis Rent A Car’s commercial director, Anthony Ainsworth, said it was extremely exciting to have the classic marquee back in the fleet again. He added that he was sure that customers would be equally delighted to be able to drive away in such an iconic brand.

The vehicles are designed and engineered in Birmingham, and final assembly also takes place at the MG Motors plant. The MG6 Magnette, and the MG6 GT fastback, are designed to offer space and comfort. As many as five adults can enjoy the experience of MG’s legendary driving dynamics. Each of the models packs an impressive 1.8-litre turbo charged engine.

Sales and marketing director for MG Motor UK, Guy Jones, said the company was pleased to be able to introduce the new MG6 to motorists through such a well known name as Avis.

Those who come away from the experience wishing to own their own model will be pleased to see that, in its class, the MG6 has the lowest insurance rating. Other features are a good size boot, excellent chassis dynamics, and high standard specification levels.

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Rail fares to rise significantly next year

Wednesday, December 21st, 2011

As of next year, train journeys will cost an average of just below six per cent more than they do at the moment, with some fares topping a nine per cent hike in price. Campaign for Better Transport’s Sophie Allen described the hikes as eye watering. She added that the UK already has some of the highest rail fares on the planet, adding that by the next election they would be 24 per cent higher. She went on to say that economic growth was being hampered by the unnecessary rises in price.

RMT general secretary, Bob Crow, said that the price hike was well above inflation and that it proved that the only ones benefiting from the privatisation of the rail network were the train companies who were laughing their way to the bank.

In the south-east, commuters in cities including Eastbourne, Bedford and Hastings will be expected to hand over more than £4,000 for a season ticket. A saver return to Nuneaton from London will be 9.2 per cent more expensive come the New Year, and an off-peak return to Plymouth from the capital will be 9.6 per cent dearer.

An advance single to Glasgow from London on Virgin Trains will go up by just over eight per cent.

Maria Eagle, the oppositions transport secretary, has slammed ministers for allowing the train operators to ratchet the price rises in some areas well in excess of the six per cent average. She added that it proved the government was thoroughly out of touch with UK commuters.

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Sixt bookings up as rail disruption announced

Tuesday, December 20th, 2011

The threat of severe winter weather, Tube strikes and engineering work across the rail networks, has caused Sixt UK to experience a large increase in the number of enquires being made for cars over the festive season. In London, bookings have shot up by 38 per cent compared to the same period last year.

Boss of Sixt UK, Paul McLoughlin, said it was an extremely frustrating time of year for travellers trying to get home to be with their families for Christmas. He explained that poor weather, a raft of engineering work, and the threat of strike action meant that more people were seeking the assurance of having a car to use.

Midland, West Coast and Great Western have all announced engineering works over Christmas and the New Year. A strike by workers on the London Underground on Boxing Day will just add to the misery of those trying to get out of the capital. Travellers are being warned that a number of train lines will stop services at 5pm in Christmas Eve, and will not resume services until after Boxing Day.

Sixt said that the demand was particularly high for larger vehicles including the Volvo 350, BMW 3 Series and VW Touran as forecasters warn that severe weather could strike many areas of the UK.

McLoughlin said that although Sixt had been prepared for a spike in seasonal calls, the company had been a little surprised by the sheer number of enquires, adding that phones really were literally ringing off the hook.

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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.

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