Thai Airways To Raise Fuel Surcharges

Thai Airways International will raise its fuel surcharge by 20-25 percent on Monday to offset rising energy costs, a senior executive said on Wednesday.

Oil prices held above USD$118 a barrel on Wednesday after briefly hitting an all time peak of USD$119.90 on Tuesday.

"We will raise fuel surcharges on all routes by 20-25 percent on average due to rising oil prices," Thai Airways Executive Vice President Pandit Chanapai told reporters.

The carrier's cabin factor was more than 80 percent in the January-March quarter, up from 78 percent at the end of 2007, he said.

Its cabin factor averaged 77 percent in the 2007 fiscal year to September, he said.

(Reuters)

Malaysia Airlines Eyeing Merger Partners

Malaysia Airlines is considering possible mergers, as the industry struggles to cope with soaring fuel prices and softer demand, Chief Executive Idris Jala said on Thursday.

The company would look at possible partners world-wide but Idris stressed he was only looking at opportunities and was not in any talks.

"It's very, very early days. We are just only looking at the landscape. We haven't identified (anyone). We have looked at all those airlines that we're working with today. They're probably looking at us too."

Crude oil is trading at record highs near USD$120 a barrel, hitting airlines and prompting mergers, including the planned union of Delta Air Lines and Northwest Airlines and the search for a partner for troubled Alitalia.

The International Air Transport Association, in downgrading its 2008 industry profit forecast recently for a second time in four months, called for more mergers saying the sector was overcrowded.

Idris said the industry in Asia would be plagued by overcapacity in five years' time and that state-controlled Malaysia Airlines would prefer a partner that helped raise revenues rather than just lowering costs.

"If you take a look at the orders of aircraft today -- the orders of aircraft against demand -- it will show in the next five years, there will be a period of overcapacity," he told reporters.

He ruled out any interest in code share partner Alitalia but said he planned to continue the code share arrangement.

"I prefer to look for someone that is not like us," he told an airline conference.

Mergers between airlines are traditionally difficult because many are controlled by governments who wish to keep them as national carriers.

Malaysian state funds control a combined 90.4 percent in the airline.

Malaysia Airlines had hedged about 43 percent of its fuel needs at around USD$89 a barrel and was reviewing its current level of fuel surcharge, Idris said.

(Reuters)

AIRPORT NEWS

Ukraine plans Boryspil expansion

Right: Boryspil is one of eastern Europe's largest airports with more than five million passengers passing through it per year

Ukraine's prime minister, Yulia Tymoshenko and her cabinet have affirmed plans to upgrade facilities at Kiev's Boryspil Airport ahead of the European Football Championship finals, which will be held in both the Ukraine and Poland in 2012.

The opening match of the Euro 2012 finals will be held in Warsaw and the final in Kiev.

Both president Viktor Yuschenko and Yulia Tymoshenko have put their political weight behind the refurbishment, which will see Terminals D and E built to cope with the increased traffic.

Terminal D is due to be finished by the third quarter of 2010. Terminal E was originally scheduled for completion between 2010 and 2020, but planning for the project is to be accelerated to enable it to open in time for the soccer tournament.

Further terminals, F and G, are planned to allow the airport to handle Airbus A380 services in future. A refurbishment of Terminal B is also underway with the first stage due to open in late January next year.

Radisson and Hilton hotels also form part of the expansion plans.

Boryspil International Airport is one of three airports serving Kiev, with Zhulyany Airport serving domestic flights and Gostomel dedicated to cargo operations. Boryspil is one of eastern Europe's largest airports with more than five million passengers passing through it in a year, accounting for 60% of Ukraine's commercial air traffic.

Bush passengers face US$3 surcharge

Right: Surcharge will help to pay for expansion of Terminal B at George Bush Intercontinental Airport

Passengers flying from George Bush Intercontinental Airport will soon pay a US$3 surcharge per ticket to help pay for the planned US$1.1 billion expansion of Terminal B. Houston City Council approved the “passenger facility charge” on Wednesday 23 April.

The total amount raised could be almost US$400 million by 2015, say Houston officials.

Construction is set to begin by the third quarter this year and end in 2014. The US$3 surcharge could be levied as soon as 1 December. The fee will apply to outbound flights only. Passengers who redeem their frequent flier miles for a ticket will not pay the fee.

More than 330 US airports collect such fees, including 95 of the top 100 airports, according to the Federal Aviation Administration.

Houston City Council also voted on Wednesday to approve a preliminary agreement with Continental Airlines, under which Continental will pay for a new central area, a new federal inspection building to provide customs and immigration processing for international arrivals, and two new concourses with up to 65 gates. Terminal B currently has 40 gates.

The city will pay for new parking, a new underground fuel system and other road and utility improvements, including an extension to the above-ground train, “the automated people mover,” to Terminal A.

Airport officials estimate that the airline’s share will be US$674 million, while the city’s US$458 million share will be funded through airport revenue bonds and the US$3 fee.

Budapest to launch terminal service team

On Monday 28 April Budapest Airport (BA) will introduce a Terminal Service Team to guarantee service quality on the forecourts and inside the terminal buildings.

The tasks of the Terminal Service Team include filtering out unauthorised traders, transporters and other persons performing commercial activities of an unverifiable standard. The team will also monitor traffic on the forecourts, and check compliance with traffic regulations and Airport Rules.

Budapest Airport, CEO Jost Lammers says, “Budapest Airport provides the first and the last impression of Hungary for the millions of people who arrive in the country by aircraft. Thus, the airport has to receive visitors in a manner that is worthy of Hungary. One of our key tasks is to increase service quality at the airport and to maintain the high standards.”

Runway hole causes chaos at Edinburgh

Flights to Edinburgh Airport were diverted yesterday (Wednesday 23 April) after a hole was found in the main runway. The hole was discovered at around 2pm and airport operator BAA says repair work was completed by 4.45pm.

Four flights bound for Edinburgh were diverted to other airports in Scotland, while the majority of flights in and out of Edinburgh faced delays throughout the evening.

A £16 million (US$32 million), eight-month resurfacing programme of the airport’s main runway began two weeks ago.

Bordeaux budget terminal to open in 2009

Right: Bordeaux Airport is building what it claims is Europe's first purpose-built budget airline terminal

France’s Bordeaux Airport, which claims to be creating the first purpose-built budget terminal in Europe, has received early expressions of interest from low-cost carriers including EasyJet and Ryanair.

The new 4,000m² terminal, which represents a US$8.7 million (Euro 5.5 million) investment, will have an annual capacity of around two million passengers.

Construction work is due to begin around February 2009, with completion scheduled for November 2009.

Bordeaux Airport’s development director, Jean-Luc Poiroux, says, “Two or three airlines have reacted so far. EasyJet says it is interested. Ryanair wants to speak with us. We know that Germanwings and BMIbaby would be interested and we haven’t had contact with the others.”

Poiroux says it is a “basic” terminal design and passengers will have to use manual check-in systems, take their luggage to a central point and will not have the luxury of air bridges.

Bordeaux’s existing budget carriers include Aer Arann, Easyjet, Aer Lingus, BMIbaby, Flybe, Germanwings, MyAir, Atlas Blue, FlyNordic and Norwegian.

Poiroux says, “All of them have the potential to use this terminal building. The airlines that are already present on the airport in the summer of 2009 will have an advantage to be transferred into the terminal when it opens.”

He adds, “Marseille and Lyon [which also have budget terminals] were refurbished from existing terminals. In Bordeaux it will be something totally new, from scratch. It is the first time a big airport in Europe is building something [for this purpose] from scratch. This is new in France, but also in Europe.”
Left: The new terminal will require passengers to do all the leg-work when checking in for flights

Louisville gets US$10 million relocation grant

The US Federal Department of Transportation has awarded a US$10 million grant to the Louisville International Airport's voluntary relocation programme, which allows officials to buy the homes of families living in neighbourhoods so close to the airport that federal officials say the noise level is too high.

Since 1994, when the programme began, US$240 million has been spent on relocating residents living near the Kentucky airport. The money pays for the homes, as well as moving costs and other associated expenses, such as title searches.

Those not eligible for the relocation programme may be eligible for a sound insulation programme starting once the relocations are complete.

Boeing, Biman Bangladesh Airlines Sign Deal for 777s, 787s

DHAKA, Bangladesh,Biman Bangladesh Airlines and Boeing [NYSE: BA] today announced the airline’s order for four 777-300ER (Extended Range) and four 787-8 Dreamliner airplanes at a signing ceremony in Dhaka, the capital of Bangladesh.

Biman Bangladesh Airlines, which began as a government-owned national carrier in 1972, became Bangladesh’s largest public limited company in 2007. The order for new Boeing airplanes represents a major step forward in the airline’s reorganization and growth plans. The airline also has purchase rights for four 777s and four 787s.

“Clearly, Biman needs modern, fuel-efficient and reliable airplanes to move forward with our expansion and better serve our country’s growing travel needs,” said Dr. M. A. Momen, Biman’s managing director. “Our competitive assessment of both the 777-300ER and the 787-8 Dreamliner was extensive and has led to our making the very best decision based on our own defined operational parameters. We have selected the best airplanes to fulfill our mission requirements - and that mission is the continued growth and success of Biman Bangladesh Airlines.”

Biman currently connects Bangladesh with 18 countries around the world, and has agreements in place that will allow it to serve a total of 42 countries as it implements its growth plan.

“It’s always rewarding for us to work directly with an airline on a plan for success,” said Marty Bentrott, Boeing Commercial Airplanes vice president of Sales for the Middle East and Africa. “The 777-300ER and 787-8 provide seamless operational compatibility that will offer Biman greater flexibility and more opportunity to institute route planning and fleet operations that have a positive impact to its bottom line.”

Non-stop Lufthansa Business Jet service to Pune, India

Lufthansa is further expanding its services to key Indian cities for business and leisure travellers alike. From 1 July 2008, Germany’s largest airline will launch a new route from Frankfurt to Pune in western India. In all comfort passengers will be able to reach Pune non-stop, six times a week in an Airbus A319 which has been refitted as a Business Jet. “The Lufthansa services are increasing in line with the ongoing, very dynamic economic development in India,” said Dr. Karl-Rudolf Rupprecht, Senior Vice President Hub Management Frankfurt. “With seven non-stop destinations and 55 flights per week, Lufthansa remains the leading European airline in India. We have almost quadrupled our flights to India since 2001, when we operated 15 flights per week to three destinations.”

Lufthansa will operate services to Pune as all-Business Class flights. The Airbus A319 has been refitted as a Business Jet and is operated by PrivatAir, a VIP and business aviation specialist.

The aircraft has 48 modern lie-flat seats which, when fully reclined, provide an almost horizontal sleeping surface measuring two metres (6’6”) in length. Bigger seat pitches, more generous table-top areas, power ports for notebooks as well as a reading lamp that is integrated into the seat provide ideal conditions for business travellers to work during the flight.

Thanks to the spacious layout of the cabin, passengers travel in an extremely quiet and relaxed atmosphere and can enjoy individualised inflight service.

Pune lies about 200 kilometres south-east of Mumbai (formerly Bombay) and is one of the most up-and-coming industrial cities in India. The greater Pune metropolitan area has a population of just under five million. Pune is home to many large international firms in the IT, biotechnology and biochemistry sectors. The region is also regarded as the centre of the automotive industry and a key manufacturing base for numerous international car manufacturing companies in India. European carmakers like Mercedes, Volkswagen, Renault, Fiat, Skoda and Audi as well as the large Indian automobile companies Tata Motors and Bajaj Auto manufacture cars in their plants in Pune mainly for the Asian market.

Pune, which is twinned with Bremen, has become an important location for German companies.

About 200 German companies are currently represented there. This, the second-largest city in the state of Maharashtra is also a major cultural centre for the region and home to the reputed Film and Television Institute of India. Pune has several universities and is a key centre of education. The hilly city, which used to be called Poona, has many historic sites and in the 1970s became a place of pilgrimage for thousands of people from all over the world.

The return fare in the Lufthansa Business Jet from Frankfurt to Pune can be booked at the special introductory fare of 2,199 euros from 24 April until the end of June 2008. This includes all taxes, fees and the Lufthansa Ticket Service Charge of 15 euros for bookings made online at www.lufthansa.com. Special fare conditions apply. Miles & More members can accumulate miles on these flights. For more information or to make a reservation, please visit our website or contact the Lufthansa Call Center on 0180 – LUFTHANSA (0180 5 83 84 26), Lufthansa designated travel agencies or Lufthansa sales counters at airports.

The new service at a glance: Frankfurt – Pune (India)

Airports/ Three-letter-code/ Time zone (summer):
Frankfurt, Terminal 1 (FRA); UTC + 2 hours
Pune International Airport (PNQ); UTC + 5½ hours

Schedule (all times are local times)
NEW from 1 July 2008 (inaugural flight)
LH 768 Frankfurt 16:15 hrs –Pune 04:00 hrs (next day) daily except for Saturdays
LH 769 Pune 05:29 hrs – Frankfurt 10:50 hrs daily except for Sundays

Flight time (average):
Frankfurt – Pune: 8 hours 15 minutes
Pune – Frankfurt: 8 hours 50 minutes

Distance:
6,673 kilometres / 4,146 miles

Aircraft type:
Airbus A319LR (Lufthansa Business Jet, operated by PrivatAir)

Seating capacity:
48 seats (Business Class)

Source : Lufthansa

Abu Dhabi International Airport welcomes nasair's inaugural flight to the UAE capital

In only the airline's second international destination outside Saudi Arabia, Abu Dhabi International Airport has welcomed the Kingdom's first low-cost carrier, nasair, on its inaugural flight to the UAE capital. Welcoming nasair's Managing Director of Scheduled Airlines Husain Nalkhanday, who was on board the inaugural flight from Riyadh, Mohammed Al Bulooki, Director of Marketing & Communications at the Abu Dhabi Airports Company (ADAC), said: 'The GCC is a natural growth area for low-cost aviation growth and we expect traffic flow between Abu Dhabi, Riyadh and Jeddah to grow significantly going forward.'

Also present to welcome nasair were Mohammed Irfan Siddiqui, UAE & Oman Country Manager - nasair, Ismail Juha, Sales Manager of Safar Travel & Tourism and Khaled Al Fahim, CEO of Products & Services of Al Fahim Group.

'We hope that with the addition of this new destination we will be able to boost ties between the two capital cities of Abu Dhabi and Riyadh,' said Nalkhanday.

Commenting on the four-times a week Abu Dhabi-Jeddah route which also saw its first flight into Abu Dhabi two-hours after the airline's inaugural flight, Nalkhanday mentioned he expected that this route would mainly cater to pilgrimage traffic.

The two inaugural flights from Riyadh and Jeddah that arrived at 19:10h and 21:10h respectively on Sunday will initially be part of four flights per week to and from Abu Dhabi from each destination; however, the frequency might later increase to 12.

Mohammed Al Amiri, General Manager of Safar Travel & Tourism added: 'Safar Travel & Tourism, a member of Al Fahim Group, will represent the airline in Abu Dhabi and Al Ain, and will ensure feasibility of travel between both countries and assure our customers receive the best quality of services.'

'In addition, our agreement with nasair is to further develop travel and tourism and support Abu Dhabi International Airport's plans of expansion.'

To mark the occasion of its inaugural flights, nasair is offering introductory prices. As part of Abu Dhabi International Airport's expansion plans and commitment to quality passenger services, the airport has now succeeded in attracting 36 international airline operators.

IATA signs historic commitment to tackle climate change

GENEVA – The International Air Transport Association (IATA) has signed a global declaration on aviation and climate change.

“IATA’s four-pillar strategy on climate change is now an industry commitment. This commitment will drive us forward - first to our 25-percent fuel efficiency improvement target, and more importantly towards our vision of carbon neutral growth leading to a carbon emission free industry,” IATA director general and CEO Giovanni Bisignani said.

“Environmental responsibility is a core promise of the aviation industry, alongside safety and security. All the industry partners have a common goal - to keep aviation as a benchmark of environmental responsibility for others to follow. But governments must play their part if we are truly to succeed. And they need to match our efforts at efficiency - such as implementing next generation traffic management systems globally. A Single European Sky could save 12 million tonnes of CO2 at a stroke.”

Thailand expects boost to cruise-generated arrivals

BANGKOK – Five major cruise line companies have notified the Tourism Authority of Thailand (TAT) that they plan to include Phuket and Laem Chabang in their regional itineraries by 2009.

The feedback from Holland American, Seabourn Cruise Line, Star Clipper, Oceania Cruises and Residen Sea was conveyed to representatives of the TAT New York Office at the Seatrade Cruise Shipping Convention held between 10-13 March 2008 in Miami, Florida.

The cruise-stops will generate over 5,000 tourists.

The TAT sees cruise-ship travellers as a high-end market group with high spending power. At present, about 7,000 tourists visit Thailand aboard 12 cruise-ship stops per year.