Kuwait Air Scraps USD$3 Bln Aircraft Order

Kuwait Airways has scrapped a USD$3 billion deal to buy 19 planes from Aviation Lease and Finance Co (Alafco) after the government refused to approve the loss-making state carrier's plan, Alafco said on Tuesday.

Kuwait Airways said it would buy 12 Boeing 787s and seven single-aisle Airbus A320 aircraft under an initial agreement signed in June. Subject to government approval, the aircraft would be delivered between 2009 and 2014.

"The letter of intent signed with Kuwait Airways for the supply of 19 aircraft is considered cancelled," Alafco said in a statement.

"Alafco received a letter from Kuwait Airways saying it has not obtained the necessary government approval to sign a final deal with Alafco," it added.

Kuwait Airways officials said in June the order would be worth around USD$3 billion and that the airline placed the order with Alafco rather then manufacturers because it wanted to get them earlier.

ALAFCO, majority owned by Islamic bank Kuwait Finance House, ordered 12 Boeing 787s and six 737-800s in March valued at USD$2.26 billion at list prices. In November, it ordered six Airbus A320s. (Reuters)

IATA Sees End Of Paper Tickets In 2008

The global airlines body IATA said on Monday it had placed its last order for paper tickets, clearing the way for air travel to be based entirely on electronic ticketing from June 1 next year.

"In just 278 more days, the paper ticket will become a collector's item," said Giovanni Bisignani, director general of the International Air Transport Association.

The changeover from paper would not only cut airlines' costs by USD$9 for every traveller but would also mean the industry - criticized by environmentalists for its part in global warming - would save 50,000 mature trees a year, he added.

Bisignani did not say whether the USD$9 in cost savings would or should be passed on to passengers.

Based in Geneva, IATA represents more than 240 airlines which operate 94 percent of scheduled international flights.

Non-IATA airlines, mainly low-cost carriers such as Ireland's Ryanair and Britain's easyJet, already have a paper-free ticket system where travelers are registered in computers and present only an identity document at check-in.

IATA launched its drive for so called "e-ticketing" just over three years ago and now 84 percent of travelers on IATA carriers fly without paper tickets.

The airlines body says China, one of the fastest-growing markets for air travel and host to next year's Olympic Games, is heading to be the first country in the world to operate an entirely paper-free ticketing system by the end of this year. (Reuters)

China Eastern, Singapore Air Deal Approved

China Eastern Airlines has won Chinese government approval to sell a stake to Singapore Airlines, two sources familiar with the situation said on Monday.

"The government has in principle given the go-ahead to the China Eastern and Singapore Air deal. The two sides will sign an agreement over the weekend," one source close to the talks between the two companies said.

A second source confirmed that China Eastern had won approval for the long-expected tie-up, adding the Chinese carrier's shares, which have been suspended from trading since May 23, would resume trading next month.

The deal would be the first acquisition of a large stake in one of the big three Chinese airlines by a foreign carrier.

Neither source provided details of the deal.

China Eastern chairman Li Fenghua said in June that China Eastern planned to sell Hong Kong-listed H shares, equivalent to a nearly 25 percent stake, to Singapore Airlines and its majority owner Temasek.

Chinese media reports have valued the deal at roughly USD$1 billion.

China Eastern and Singapore Airlines declined to comment.

Industry analysts say the tie-up could give China Eastern financial backing and access to its partner's extensive global network, while Singapore Airlines could expand its foothold in the fast-growing China market.

Li said in June that China Eastern expected to return to the black for the first half of this year, helped by strong traffic growth and new accounting rules, after posting a year-earlier net loss of CNY1.46 billion yuan (USD$193 million).

(Reuters)

Cargo Plane Crashes In Congo, 13 Killed

An Antonov plane carrying tin ore crashed and burst into flames shortly after takeoff in eastern Congo on Sunday, killing 13 people on board, but a young man and a baby boy survived, officials and residents said.

The Russian pilot tried to return to Kongolo in Congo's mineral-rich Katanga province after developing engine problems, but the plane crashed short of the runway, Jean-Claude Kapange, the local head of the Interior Ministry's national information agency said.

The pilot and two more Russian crew were among the dead, Kapange said.

He said the plane had been on its way to Goma, the main city in North Kivu province, with around 9 tonnes of cassiterite (tin oxide) and other minerals. Goma is a transit point for many mineral exports from eastern Congo.

"A small child and another passenger in his 20s were rescued before the plane caught fire," Faustin Lwamba, a resident of Kongolo who helped in the rescue said, adding that both were being treated in a local hospital.

He said a search was continuing in the forest to locate the bodies of the pilot and a woman.

Congo's mineral riches were a catalyst in the country's devastating 1998-2003 war, which drew in half a dozen African armies and spawned a host of local rebel groups and ethnic militias, some of whom still terrorize villagers in the east.

Campaigners say mining for cassiterite and other valuable minerals exploits desperately poor local people who work in treacherous mines for low pay and can fuel instability and violence as businessmen and militias vie for control of resources and revenues.

Mineral flights have also sparked safety concerns.

Local authorities suspended cassiterite flights to Goma from another mining area in North Kivu, Walikale, in June due to safety concerns for the planes, which land and take off on a stretch of road while a proper air strip is being built.

Air travel is notoriously dangerous in Africa, where large swathes of airspace are not covered by radar and aging planes suffer from lack of maintenance and spare parts.

The continent accounted for 18.5 percent of fatal airliner accidents last year, despite having only 3 percent of global flight departures, according to the Dutch-based Aviation Safety Network.

(Reuters)

ARINC launches new solution for airlines` on-board sales

ARINC, working with Abanco, announced the on-board sales management and inventory tracking solution for airlines. According to ARINC, the full-service wireless sales solution promises to reduce airline service costs and paperwork while cutting inventory losses—a big headache for carriers.

ARINC and Abanco will demonstrate the new sales system September 8-10 at IFSA 2007, the International Flight Services Association Exposition in Houston, Texas.

“This is the first comprehensive Buy-on-Board solution ever offered,” stated Andrew Kemmetmueller, ARINC’s Service Director. “At major airlines, sales inventory losses can reach $10 million or more a year. Our solution streamlines the on-board sales process by fully addressing both the logistical and inventory problems involved.”

“Airlines will discover new potential for all types of passenger sales—from duty-free items, to onboard catalog companies and other vendors,” stated Abanco President Tracy Metzger. “This sales system has endless possibilities for airlines throughout the world.”

The system uses the new ARINC Mobile Communications Gateway (MCG) to support on-board sales and credit card transactions. It provides wireless connectivity and power to recharge in-flight electronic devices, and may be used for other airline data delivery applications as well.

The MCG system uses secure wireless connectivity to report detailed sales data and upload new inventory data after each flight. As part of a turnkey solution, ARINC will offer technical support, management and maintenance of the MCG at airports through its wholly-owned airport IT services subsidiary, ARINC Managed Services, LLC.

The International Flight Services Association (IFSA) 2007 Conference and Exhibition is scheduled September 8-10 at the Hilton Americas-Houston, in Houston, Texas.

Vicky Karantzavelou - Monday, August 27, 2007

Royal Bengal Airline signs contract with BIS

Bird Information Systems (BIS), technology provider of automated aviation and travel related software solutions, announced another strategic partnership with Royal Bengal Airline, for the use of its Airline Inventory and Reservations System (AIRS).

Mohammed Shalim Rahman, Managing Director of Royal Bengal Airline and Mr. Ankur Bhatia, Executive Director, Bird Information Systems signed the contract.

Under the terms of this contract signed between the two companies, Bird Information Systems will provide the booking technology for the Airlines’ Inventory Hosting, Reservation at City & Airport Offices and Internet Booking Engine. Besides, for Airport operations, a departure control system would be in use by the airline.

Ankur Bhatia, Executive Director, Bird Information Systems mentioned, “We always emphasize on service and use of technology to ensure complete customer satisfaction. This strategic partnership gives us yet another opportunity to empower the new breed airlines of the Indian subcontinent with the latest technology solutions, enhancing their overall efficiency.”

Expressing his excitement on the partnership, Mohammed Shalim Rahman, Managing Director, Royal Bengal Airline stated, “We are delighted to have an online booking reservation system that will give opportunity to passengers in Bangladesh for the first time to book their tickets online. We will encourage online bookings by offering cheap fares and discounts exclusively for online customers and frequent flyers.”

Vicky Karantzavelou - Tuesday, August 28, 2007

Avian Influenza: Highly pathogenic H5N1 virus confirmed in Bavaria

The European Commission was informed by the German authorities on Saturday (25 August) of an outbreak of highly pathogenic avian influenza on a duck farm in Bavaria, in a region where infected wild birds were detected in July and early August.

Upon suspicion of the virus, the German authorities immediately applied the necessary control measures laid down under EU legislation, and the Commission will adopt a Decision later today to confirm the risk areas set up around the outbreak.

Avian influenza was suspected on the Bavarian farm when an abnormally high mortality rate was reported in a flock of almost 170 000 ducks. Diagnostic tests carried out by Germany’s national laboratory confirmed the virus to be the highly pathogenic H5N1 strain. The German authorities immediately began culling the ducks on the holding and applied the measures laid down in the Avian Influenza Directive 2005/94/EC. This entails the establishment of a protection zone of 3 km radius and a surveillance zone of 10 km around the infected holding.

The area covered by the protection zone and the surveillance zone is classified as a high risk area (area A) which is surrounded by a low risk area (area B) acting as a buffer zone to the disease free parts of the country. Strict movement controls are in place, poultry must be kept indoors, gatherings of poultry and other birds are banned, and on-farm bio security measures will be strengthened. The Commission will adopt a Decision today confirming the A and B areas set up in Germany and the disease situation will be reviewed by the Standing Committee on the Food Chain and Animal Health in early September.

Michael Verikios - Tuesday, August 28, 2007

ASTA and ATA working together again

ASTA and the Africa Travel Association (ATA) have again joined forces in 2007. As a result of the agreement, ATA has become an official supporter of THETRADESHOW in 2007 and ASTA’s International Destination Expo in 2008, which will be held in Lyon, France, April 12-16.

"We are excited to have ATA as a supporter for THETRADESHOW because it will allow exhibitors as well as attendees to broaden their areas of expertise and knowledge," said William A. Maloney, CTC, ASTA executive vice president and COO. "We hope that the participation of ATA will open doors for our members as well as for ATA members and that the partnership will go further than ASTA. Having ATA at THETRADESHOW and International Destination Expo will raise awareness and start communication about travel and tourism developments in Africa as well as bring more international members and agents with more diverse expertise into the ASTA community."

ATA is a non-profit association of tourism professionals from government, industry, tour operators, travel agencies and media and has been the principal international travel association to promote tourism in and to Africa since 1975. In partnering with ASTA, ATA will be a prominent participant of THETRADESHOW with multiple vendors from Africa present, and will campaign African agents to attend the show so that myriad experience and expertise will be available for all attendees. THETRADESHOW will give travel agents and suppliers from around the world a unique chance to meet in a central location. In addition, ATA members will receive an ASTA member rate for attending ASTA’s International Destination Expo in 2008.

"ATA and ASTA have reinvigorated their relationship," said Edward Bergman, ATA executive director. "Under the new arrangement ATA and ASTA will be taking on more marketing initiatives and developing an objective purposeful relationship, one that should promote the front-line travel agency concept and sustainable worldwide tourism development, plus provide direct access to Africa destination product knowledge and information for ASTA membership. ATA is pleased to join our travel industry colleagues and associations in partnering with THETRADESHOW and promoting the exciting and diverse tourism product that the African continent has to offer."

Theodore Koumelis - Tuesday, August 28, 2007