Archive for August, 2012
Friday, August 31st, 2012
Although the majority of motorists managed to obey the rules of the Olympic Games Lanes, Transport for London has said that £845,000 was collected from around 6,500 drivers who were fined for straying onto the Olympic Route Network when the lanes were closed to the general public.
Nearly 30 miles of road was cordoned off for use by officials, athletes and dignitaries during the event. Motorists driving in the route while it was closed off faced being fined up to £130. The Lanes came into operation on 25 July, but for the first six days of operations drivers were handed a warning instead of a financial penalty.
Transport for London said that the fines were being issued to deter people from blocking the lanes rather than as a method of raising cash. The body said that there had been a compliance rate of 98 per cent and that an effort was made to open roads when they were not being used.
The fine will now apply to drivers who venture onto the Paralympic Route Network, although the stretch of road being used has been reduced for the sporting event. The rules have been in place since Wednesday and drivers are being warned when the lanes are in operation by information delivered over mobile digital signs.
A spokesman for TfL said although fines were being issued, the enforcement of the rules was sensible and proportionate.
Tags: Games Lanes, motorists, Olympic Route Network, Paralympic Route Network, Transport for London
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Thursday, August 30th, 2012
Flag carrier Japan Airlines has announced that it aims to raise more than 660 billion yen in a share sale. The figure is nearly double the amount that was paid from public funds to keep the airline afloat after it filed for bankruptcy in 2010.
When it goes ahead the sale will be the second largest of the year following Facebook’s floatation on the US stock exchange earlier this year. Japan Airlines declared bankruptcy in January 2010 and a month later withdrew from the Tokyo Stock Exchange. It is due to refloat on 19 September.
For the quarter ending in June the airline declared a 26.9 billion yen profit which is double what it declared for the three months a year earlier. Following its bankruptcy the carrier implemented a wide range of cost cutting strategies including getting rid of unprofitable routes and drastically slashing staff numbers.
Japan Airlines has credited much of its recovery to a strong yen which has encouraged more travellers to buy tickets to international destinations.
The carrier has said that it aims to sell 175 million shares at between 3,500 and 3,790 yen. The recent financial results and the floatation on the stock market mark a dramatic turnaround for the airline.
Tags: airline, bankruptcy, facebook, Japan Airlines, Tokyo Stock Exchange
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Wednesday, August 29th, 2012
Virgin Australia is crediting strong demand from corporate passengers for the airline’s return to profit. Australia’s number two carrier has reported a net profit for the year ending in June of $22.8 million. This is up from a $67.8 million loss recorded for the year earlier. However, no financial guidance has been given by Virgin for the coming year. John Borghetti, the carrier’s chief executive, explained that the economic environment was simply too uncertain.
In a statement Borghetti said the improvement in Virgin’s profitability had been driven by the ability to attract corporate fliers and higher paying government workers. He added that these customers were now contributing more than 20 per cent of the airline’s revenue.
Virgin has also managed to more than double the revenues which come from code sharing through agreements with Delta Air Lines, Air New Zealand and Singapore Airlines. Borghetti said that code share and interline travel should add around $150 million to revenues by 2014.
Through the second half of this year Virgin is expecting to be able to report that capacity in the domestic market has grown by as much as nine percent.
The carrier reported that during the financial year 2011-12 capacity on domestic services had increased by 9.6 per cent. During the period Virgin replaced a number of its Boeing 737s with larger Airbus A330s on routes between the east and west coast.
Tags: Air New Zealand, airbus, boeing, Delta Air Lines, John Borghetti, Singapore Airlines, Virgin Australia
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Tuesday, August 28th, 2012
As the European Commission prepares to launch an investigation into Ryanair’s third bid to takeover rival Irish carrier Aer Lingus the budget airline is trying to persuade rivals to put up competition on routes in and out of Ireland. Ryanair was refused permission to control Aer Lingus back in 2007 when the commission said there were too few competitors on the Aer Lingus routes which would mean handing Ryanair a virtual monopoly.
Ryanair has reportedly had a mixed reaction from the carriers it is asking to put up a challenge. The airline has approached Virgin Atlantic, International Airlines Group, easyJet, Air France-KLM, Flybe and Etihad.
Etihad has a three per cent stake in Aer Lingus and has already said it is opposed to a Ryanair takeover. British Airways owner IAG and Virgin Atlantic may be interested in establishing services between Dublin and Heathrow, but those with knowledge of the situation have said this is unlikely to extend to other European destinations.
Flybe is reportedly interested in looking at introducing flights on some of the routes where Aer Lingus and Ryanair are dominant, but easyJet has said that it has no interest. Air France-KLM is also said not to be interested.
Ryanair already owns a 29.8 per cent in the Irish flag-carrier and in June said it would pay €1.30 per share to stockholders. The Irish government is looking to get rid of its 25 per cent share in the airline and has said it is considering the offer being made by Ryanair.
Tags: aer lingus, Air France-KLM, easyjet, etihad, Flybe, International Airlines Group, Ryanair, virgin atlantic
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Monday, August 27th, 2012
Airlines in the US have been cancelling services as Tropical Storm Isaac lashes Florida. The hardest hit airports on Sunday were Fort Lauderdale and Miami where services are unlikely to resume until later on Monday. Isaac, which is crossing the Keys, is already creating winds of more than 60mph. As it crosses the warm Gulf waters before Wednesday the storm is expected to gain strength.
It is then likely that it will make landfall as a Category 2 hurricane between the Florida Panhandle and New Orleans. A state of emergency has already been declared in Louisiana where Governor Bobby Jindle has asked people to evacuate low lying coastal areas.
Isaac has caused American Airlines and American Eagle to cancel 486 flights according to FlightAware, the flight-tracking service. American Airlines flies passengers out of Miami to Latin America and the Caribbean.
United Airlines and United Express decided to cancel 26 services as the storm hit the Keys and Delta Airlines was forced to drop three flights between Atlanta and Key West. On Sunday afternoon Morgan Durrant, a spokesman for Delta said the carrier was planning on operating all of its services with the exception of Key West.
Poor weather in Tampa meant the cancellation of 26 flights yesterday and four on Monday. All carriers have said that passengers who have had their travel plans disrupted by the storm will not be charged for changing flights.
Tags: airlines, american airlines, American Eagle, Delta, FlightAware, Miami, New Orleans, Tropical Storm Isaac, United Express
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Friday, August 24th, 2012
As the forecasters warn residents in the UK that they face yet another washout of a bank holiday weekend, it is estimated that some 1.8 million will be taking off in search of some foreign sun.
Around 400,000 people are likely to do this from Heathrow and 250,000 are expected to board a plane at Gatwick. Manchester Airport is also expected to busy with around 150,000 passengers passing through. Other forms of travel proving to be popular are the Eurostar, which has estimated that it will carry 60,000 people out of the UK this weekend and ferries departing British shores for the continent.
According to Abta, Spain is once again the most popular destination for those seeking some sun followed by Greece and Turkey. Mark Tanza, the association’s chief executive, explained that countries such as Greece and Spain are a great option because the pound is currently the strongest it has been for around four years. He added that the cost of food and drink has also come down.
Those staying at home for the long weekend may need to remember an umbrella if they venture out. However, the railways are expecting to operate as normal and the Highways Agency said it would be completing 194 miles of road works and suspending a further 59 miles before the start of the holiday.
Network Rail said it expected more than six million passengers on trains over the weekend and the Highways Agency said the busiest time on the roads would probably be Monday afternoon.
Tags: abta, Eurostar, ferries, Gatwick, Greece, Heathrow, Highways Agency, manchester airport, Network Rail, Spain
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Thursday, August 23rd, 2012
Australia’s flying kangaroo, Qantas, has announced that an order with US planemaker Boeing has been cancelled as the airline announces its first annual loss since privatisation 17 years ago. The airline said that an uncertain global market meant that it would now not be taking delivery of 35 new Dreamliner aircraft from Boeing.
At a list price, before discounts, this will save Qantas $US8.5 billion. The airline will receive liquidated damages worth $430 million because of rights it is permitted to exercise because the 787 project ran into lengthy delays. This will help to give a lift to Qantas’ finances for the fast half of the current financial year.
For the 12 months ending in June, Qantas reported a loss of $245 million compared to the previous year’s $250 million profit. The losses have been considerably higher than analyst’s expectations of a slump of $224 million.
Qantas is blaming a number of factors for the disappointing results. Last year saw the airline engaged in a bitter and long running dispute with unions representing its ground staff, pilots and cabin crews. The carrier is also fighting to make its international arm profitable again and is facing stiff competition in the domestic market from smaller rival Virgin Australia.
As with nearly all airlines, Qantas is also contending with the high price of jet fuel which it said cost $4.33 billion last year, an increase of 18 per cent. The airline is currently trying to reduce spending through job cuts and by trimming loss making routes from its schedule.
Tags: 787, boeing, Dreamliner, Qantas, Virgin Australia
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Wednesday, August 22nd, 2012
Struggling Indian carrier Kingfisher Airlines has told the Directorate General of Civil Aviation that it has further reduced services after grounding six more planes out of its current fleet of 17 aircraft. The airline reported that losses in the last quarter had risen by 147 per cent. A continuing strike by pilots has also forced the carrier to cut back its operations.
Kingfisher’s chief executive, Sanjay Agarwal, has reportedly met with Arun Mishra, head of the DGCA to discuss the performance of the airline and its ongoing financial woes. He has apparently told the authority that pilots who have been walking out regularly in protest of not being paid their salaries are now being paid for March.
Since the middle of August Kingfisher has been operating around 85 flights per day with a fleet of 11 aircraft. However, the company earlier said that it was aiming to run 17 planes on 120 flights per day during the summer months.
Mr Argawal confirmed to the DGCA that Kingfisher is currently flying five turboprop ATRs and six Airbus A320s after grounding three ATRs and three A320s.
He explained that the airline had been forced to cut back on services because of the grounding of the planes and because of ongoing disruptions caused by walkouts by its pilots. The DGCA is currently carrying out an investigation into the airline’s safety because of its financial problems.
Tags: airbus, airline, DGCA, kingfisher airlines, pilots, safety, Sanjay Argawal
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Tuesday, August 21st, 2012
As Qantas continues to struggle with it international business, as well as face increased competition in the domestic market, the airline’s chief executive, Alan Joyce, has announced that it would be inappropriate for him to accept a rise in pay or an annual bonus. The Qantas boss told the Australian Financial Review that his earnings should reflect what has been a turbulent year for shareholders.
Mr Joyce added that executive pay should drop at a time when company returns are continuing to drop. Qantas is due to announce its earnings for the year to June on 23 August. The airline said it expects to see profits down by around 90 per cent.
The international division is also expected to see a growth in losses of some £300 million. Qantas has been struggling to revive its international arm and has already announced that domestic business and international activities are to be separated.
The airline has been suffering over the last year because of factors including the high cost of fuelling its fleet, problems with the unions and disputes with staff and a lack of demand on international services. Since April, Qantas stock has lost around 35 per cent of its value.
Chief market strategist at Sydney-based CMC Markets, Michael McCarthy, said that although it was admirable that Mr Joyce was foregoing his personal gains, the announcement was likely to be followed by confirmation that Qantas will be slashing its workforce further in order to cut costs.
Tags: airline, Alan Joyce, Australian Financial Review, Qantas
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Monday, August 20th, 2012
Orkney Ferries has announced that it is undertaking a major refit of its Hoy Head ship which will be equipped with two thrusters from Rolls-Royce. Vehicle capacity will also be improved as the vessel is going to be lengthened. The re-fit is taking place in Birkenhead at the Cammell Laird yard.
Western Ferries has also said that it will be putting the Rolls-Royce thrusters onto two new vessels it is having built, also at the Cammell Laird yard. When completed, the ferries will operate on the Firth of Clyde between Gourock and Dunoon.
Both companies said that they had chosen the Rolls-Royce engines to speed the services up. Western Ferries said the vessels being built were 50 metres in length and were double-ended making it easier for cars to get on and off.
There will be a pair of the new engines on each of the ferries which can rotate through 360 degrees meaning that turn around times at ports will be improved. Western Ferries also said that the new vessels will be quicker and more fuel efficient than the boats they will be replacing.
The Hoy Head is due to go back into operation next year and will continue to carry passengers between Flota and Hoy and the Orkney mainland.
Tags: Cammell Laird, Hoy Head, Orkney Ferries, Rolls Royce, Western Ferries
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