News

Archive for July, 2012

Officials investigate deadly train fire in India

Tuesday, July 31st, 2012

Officials are investigating a fire on a train in India which claimed the lives of 32 passengers. A carriage on the Tamil Nadu Express caught fire in the early hours of Monday morning in the state of Andhra Pradesh. The train was on its way from Delhi to Chennai.

It is thought that the fire may have been caused by some sort of electrical short circuit. The ministry of railways said that the blaze began as the train was passing through Nellore station, which is 310 miles to the south of the state capital of Hyderabad.

The town’s district administration chief B Sridhar said it would have been likely that most of the passengers would have been asleep when the fire started. According to reports, a number were able to get off the train while it was still in motion. However, 25 of those travelling in the coach needed hospital treatment for their injuries.

It was initially reported that 47 passengers had perished in the fire, but the figure was reduced later by officials. This latest incident follows a train crash in the same state in May that claimed the lives of 24 people.

According to official figures, some 1,220 people have been killed on India’s state-run railways in just five years. Every day, 18 million passengers are carried to all corners of the country on 9,000 passenger trains.

 

Aer Lingus to code share with Etihad Airways

Monday, July 30th, 2012

Aer Lingus and Etihad Airways are expected to announce a code share agreement following three months of negotiations. The deal will allow both carriers to sell flights to each other’s customers and will give the Abu Dhabi-based carrier greater access to transatlantic routes out of Dublin.

Earlier this year, Etihad purchased a 2.98 per cent share in the Irish airline and the code share deal is being seen by many as an indication that the carrier wants to increase its stake. However, European legislation means that Etihad will not be allowed to take a majority share.

The airline’s chief executive James Hogan said last week that he would be interested in setting up a meeting with Irish ministers to discuss buying the government’s 25 per cent share. Aer Lingus rival Ryanair has also expressed an interest in the shares and has even offered to pay €1.30 for each.

However, any deal between Ryanair and Aer Lingus would have to gain the approval of Europe’s competition regulators because of the pair’s dominance in Ireland. Etihad already has shares in airlines including Air Seychelles, Air Berlin and Virgin Australia, which it claims are yielding benefits.

Air Berlin said that it had managed to save around €100 million in costs through its relationship with Etihad. The German carrier has saved money by sending its pilots to Etihad for Boeing 787 simulator training rather than having to invest in the technology itself.

 

Qantas in code share talks with Emirates

Friday, July 27th, 2012

News that Qantas might be close to signing a code-share deal with Emirates has seen shares in the flying kangaroo rise by around 10 per cent from an almost all time low. Qantas has been in talks with a number of other carriers about possible tie ups as it battles to revive its loss making international business. However, some are worried that a relationship with a powerhouse like Emirates will just mean Qantas giving up a significant portion of its international fliers.

Alan Joyce is under some pressure from investors to announce a headline grabbing deal after attempts to set up a premium airline in Asia floundered. Qantas is battling against increased competition from Middle Eastern and Chinese carriers for international business and from Virgin Australia for domestic ticket sales.

A source close to Qantas said a code share deal would benefit Emirates far more than it would the Australian flag carrier. He added that Mr Joyce was looking desperate and wanted to sign a deal just for the sake of signing a deal.

Emirates boss Tim Clarke has already confirmed that his airline has been in discussions with Qantas about a code share agreement. He has also said that taking an equity share was not something that was on the table.

Another potential partner for Qantas is China Eastern. The pair are already connected through Jetstar Hong Kong and access to the rapidly growing Chinese market is something that is likely to be extremely attractive to Mr Joyce.

 

Hitachi to build 600 new train carriages in Britain

Thursday, July 26th, 2012

A deal has been finalised between the government and Hitachi for the supply of 596 new rail carriages. The agreement includes the construction of a new factory in County Durham which will help to preserve thousands of manufacturing jobs and create 900 new ones. The Newton Aycliffe site will also become the home of Hitachi’s research and development centre for rail which should help to secure future contracts.

The new rolling stock is due to be completed for the east coast by 2018 and will be introduced onto the Great Western mainline a year earlier. Agility Trains was told that it was likely to win the train building contract worth £4.5 billion in 2009, but there have since been numerous delays to its finalisation.

Justine Greening, the UK’s Transport Secretary, said the news that a new train factory is to be built in Britain would be welcomed across the manufacturing sector. She added that the contract for new intercity trains meant that passengers could look forward to faster journey times in more comfort.

Ms Greening went on to say that Hitachi was the latest international firm to decide to invest in the UK and hoped that the new factory would be as successful as Sunderland’s Nissan car plant.

The new intercity express trains will replace the 125s and will provide passengers with more space and greater comfort. They will also be able to accelerate faster than existing high speed trains meaning that journey times should become significantly shorter.

 

Airline ancillary fees cost passengers £14 billion last year

Wednesday, July 25th, 2012

An annual study of how much airlines charge passengers for extras including checked baggage and credit card bookings has shown that in just two years they have risen by 66 per cent. The research is conducted by aviation consultant IdeaWorksCompany and Amadeus, a provider of travel technology.

In 2009, ancillary services accounted for revenues of £8.6 billion. This rose to £11.7 billion in 2010, and last year increased to £14.23 billion. IdeaWorksCompany president, Jay Sorensen, said that in the past it was budget carriers who were known for adding extras to the basic price of a ticket. Now it is an important stream of revenue for airlines around the world.

Sorensen explained that when the first report was published in 2007, €1.72 billion from ancillary earnings was being filed into the financial statements of just 23 airlines. Within four years this amount had risen to €18.23 billion with 50 airlines admitting to adding extras to the price of tickets.

Last year, budget carrier easyJet collected £695 million from charges including a booking admin fee of £9, a credit card processing charge of £7.50 and baggage charges for a return flight of up to £31.

Rival Ryanair collected £692 million through charges for extras including up to £40 for checking baggage, £12 for checking-in via the web and a £6 admin fee. A Global Business Travel Association spokesman said there needed to be more transparency across the industry so that passengers know exactly what they are paying for, and how much they will have to pay, when they begin searching for an airline ticket.

 

Track problems mean services suspended on the Central Line

Tuesday, July 24th, 2012

Transport for London has blamed a section of faulty track for severe delays on the Central Line. Services were suspended on a busy section of the track after the problem was discovered at around 7pm on Monday at St Paul’s station.

All services had to be halted between White City and Liverpool Street stations as engineers worked during the night to rectify the problem.

A total of 15 stations were affected in the West End and delays were experienced by passengers on other parts of the line. The latest problems are likely to raise more questions as to whether the already crowded London Underground if fully prepared for the extra visitors arriving for the Olympic Games.

As well as delays on the Tube, passengers travelling on the Overground have been forced to endure delays of several hours.

Services between Stratford and Canonbury began to be disrupted in the early evening and were not restored until 9.30pm. Even so commuters were faced with delays for an hour longer.

 

ANA grounds Dreamliners after engine fault reported

Monday, July 23rd, 2012

All Nippon Airways has announced a decision to ground five of its fleet of 11 Boeing 787 Dreamliners after a fault which causes corrosion was discovered in a gear box. However, since the decision was made, three of the jets have been allowed to take to the skies again while two remain on the ground waiting for spare parts.

The replacement engine parts are being supplied by UK manufacturer Rolls-Royce. The fresh problems with the Dreamliner saw Boeing’s shares drop by three percent. Shares in Rolls-Royce also lost three per cent following the grounding.

Boeing suffered a number of delays and testing problems which pushed back delivery of the first of its flagship aircraft. ANA was the first airline to fly a passenger service, but just weeks after it took delivery of the first Dreamliner it reported a problem with the landing gear.

According to person with knowledge of the situation the corrosion was discovered during an endurance test of a Rolls-Royce Trent 1000. The problem was discovered in a gearbox and linked by investigators to a manufacturing fault. The process has since been reversed.

In a statement ANA said that it had not seen the problem manifest itself in any of its 11 Dreamliners but that five currently carry the component and needed to be checked. The airline said other aircraft would replace the grounded planes and that it did not expect any passenger disruption.

FCO report shows more Brits getting into trouble on holiday

Friday, July 20th, 2012

A new report published by the Foreign and Commonwealth Office shows a marked rise in the number of British citizens abroad calling upon its staff to provide assistance. For the year ending 31 March 2012, 19,874 cases were handled, which is a three per cent increase on a year earlier.

The British Behaviour Abroad report, which is published annually, highlighted an increase in the number of people being admitted to hospital while travelling overseas. Around 70 Brits needed hospital treatment every week. Over 30 per cent of cases were recorded in Spain and half of these were on the popular tourist islands of Ibiza and Majorca.

A survey of more than 2,000 Brits found that 48 per cent were unaware that they are liable for all medical expenses if taken ill in a foreign country without adequate insurance. Last year saw a number of cases where families in the UK had to raise large sums of money to pay for a loved one’s hospital bills and repatriation costs to the UK.

Jeremy Browne, Minister for Consular Services, urged people going on holiday to make sure that they are fully insured before stepping onto a plane. He said: “Whilst the prospect of ending up in a foreign hospital may be the last thing on your mind as you head overseas for a summer break, sometimes things do go wrong on holiday and many people deeply regret not taking out comprehensive travel insurance.

“We witness many cases where people have invalidated their policy – perhaps by not declaring a pre-existing medical condition or not checking their policy covers a particular activity, such as hiring a moped. Unfortunately, they are then surprised that the Foreign Office cannot pay for their bills and flight home.”

 

London bus drivers accept Olympic pay deal

Thursday, July 19th, 2012

Possible strike action by bus workers in London during the Olympic Games has been averted as a bonus deal is agreed. Members of the Unite union have voted in favour of an extra £577 for working during the event. The last minute deal follows earlier bonus agreements with staff working on the London Underground, London Overground, Docklands Light Railway, Network Rail and Heathrow Express.

Commuters in the capital had their travel plans disrupted last month when bus workers staged a 24-hour walkout. Another strike scheduled for 5 July was called off as talks between Unite, Transport for London and London’s 20 private bus firms continued at Acas. A strike pencilled for the 24 July has now been cancelled.

Peter Kavanagh, London’s regional secretary for the Unite union, said that after a year of negotiations a fair deal had finally been settled on. He added that if the bus companies and TfL had accepted the agreement at the start then international embarrassment and widespread disruption could have been avoided.

Transport for London has consistently pointed out that any pay deal was a matter for bus workers and the private companies employing them. TfL has since made the unprecedented move of agreeing to split the extra revenue it expects to make over the Olympics with the bus companies, provided it is passed on to staff.

Leon Daniels, surface transport managing director at TfL, said he was pleased that the pay deal had been accepted by Unite and its members.

 

London cab drivers want access to London Games Lanes

Wednesday, July 18th, 2012

According to the Metropolitan Police a planned demonstration in central London by black cab drivers has caused disruption in Parliament Square, Trafalgar Square and Whitehall. The workers are angry that Transport for London has essentially banned them from using the special lanes which are being reserved for Olympic officials, athletes and the press.

The protest stared with around 200 vehicles driving into Parliament Square sounding their horns. Peter Hendy, head of transport for TfL, has already condemned that action. He said it was trumped up and that he had no sympathy with the taxi drivers.

John Mason, London Taxi and Private Hire chief, described the protest as irresponsible. He called on those who had taken part to avoid any further action and concentrate on showing the millions of visitors expected to come to the capital for the Games why London cabbies are the best in the world.

Jonathan Myers, spokesman for the United Cabbies Group union, said all traffic which was not part of the Olympic family was being excluded from using the Games Lanes. He argued that the rest of London continued to work and that taxi drivers should be afforded the same privilege and given access to the lanes.

A Transport for London spokesman said conversations had been going on with cab drivers since as far back as 2009 and that they were allowed access to some of the lanes in order to pick up fares.