November 05, 2007

AIRPORT NEWS

Narita upgrades transit facilities


Above: New security arrangements are designed to improve Narita's attractiveness as a transit destination

From next spring transit times at Tokyo Narita Airport will be cut by up to 55 minutes following the introduction of a new security check and passport control facility for passengers transferring from domestic to international flights.

Approximately 400,000 passengers on domestic flights change planes to international flights at Narita Airport each year. But recently, increasing numbers of passengers have been taking flights from Kansai Airport, Chubu Airport and other airports regarded as more user-friendly than Narita.

Narita International Airport Corporation (NIAC), which operates the airport, expects the new facilities will boost airport usage by transit passengers by 30%. The facilities will only be available to passengers who have completed boarding procedures at other airports and are transferring to international flights at Narita.

At present, transit passengers arriving at Narita’s domestic hall must go through a security checkpoint and passport control in the international departure lobby before they can move to a boarding gate.

The new transit facilities will reduce the distance from the arrival hall to the departure gate from 720m to 180m in Terminal 1, and from 980m to 150m in Terminal 2.

“We built the new facilities at the request of airline companies,” says NIAC president Kosaburo Morinaka. “We hope the facilities will make the airport more convenient for passengers.”

Hargrave sets April date to leave BAA Retail

BAA’s managing director of UK Retail, Colin Hargrave, has elected to leave his post next April. His decision is timed to minimise disruption in the lead-up to the opening of Heathrow Terminal 5 in March.

Hargrave will leave BAA after nearly 11 years, during which time he has spent many years planning Heathrow Terminal 5’s retail component.

Hargrave says he has had an amazing time with BAA and that, while the continuing development of BAA’s retail proposition will come together with the opening of Heathrow Terminal 5, “this seemed an appropriate time for me to move on to new opportunities”.

Colin Hargrave has led the development of retail at Heathrow Airport for the past 10 years

Hargrave joined BAA as Heathrow Airport retail director and group specialist shops director in 1997 and was made retail director UK Airports in February 1998. He was promoted to UK airports managing director in 2004.

His responsibilities include developing the overall strategy and direction of the UK business, and managing all of the commercial activities across the company’s seven UK airports, including the important landlord/retailer relationship with World Duty Free, one of BAA’s most important revenue sources.

Hargrave’s retail portfolio comprises commercial activities, ranging from airside and landside shops, to restaurants, cafes, bars, bureau de change and car rental, with BAA’s seven UK airports now housing 105,000m² of retail space, 725 retail outlets and 130 bars and restaurants.

Hudson Group wins Vancouver retail bid

Vancouver Airport Authority (YVR) has awarded two five-year retail concessions contracts to Hudson Group for the airport’s Domestic Terminal and Transborder areas. The contracts are expected to generate upwards of US$50 million over the life of the agreements, making Vancouver one of Hudson’s largest locations.

The concessions will operate through the 2010 Winter Olympic Games, which is due to take place in Vancouver.

“We are proud and honoured to partner with Vancouver Airport Authority in the Domestic Terminal, as we have done in the Transborder area for the past five years,” says Joseph DiDomizio, executive vice-president and chief operating officer. “In addition to our existing operations, the new awards bring to 25 the number of exciting news, gift, cafe and specialty retail concessions that Hudson operates in YVR.”

Susan Stiene, YVR’s director of retail and passenger services, says, “Hudson’s blend of retail shops is designed to create excitement, allure and a real sense of place.” In the Domestic Terminal program, Hudson will create a Hudson News outlet, which will anchor the terminal’s retail concessions programme, including such shops as Discover BC, Crafthouse, and Vancouver Aquarium.

YVR also awarded Hudson an Olympic Store and temporary kiosk in the Transborder area. The Olympic Store will offer genuine Olympics apparel to travellers and sports enthusiasts.

Air New Zealand slams Auckland’s expansion plans

\"\"Air New Zealand is critical of Auckland International Airport's expansion plans


Air New Zealand has launched a strong attack on Auckland International Airport’s US$137.5 million plans to fast track its expansion in time for the 2011 Rugby World Cup (see: Rugby tournament fast-tracks Auckland development).

“Auckland International Airport is fast becoming a monument to Auckland International Airport’s greed and continued abuse of the travelling public,” says Air New Zealand deputy chief executive Norm Thompson.

He claims the cost of the terminal expansion will be covered from existing terminal charges and a rise in airport levies.

Airport chief executive Don Huse says the airline fails to understand that the expansion is essential if the airport is to address passenger congestion.

The upgrade includes a larger terminal, more shops, faster arrivals procedures and a new access pier with views of Manukau Harbour.

Continental moves to Logan’s Terminal A

Continental Airlines will move its operations from Terminal C to its new location at Terminal A at Boston’s Logan International Airport on 11 November. The airline will use 11 check-in positions and six gates in the two-year-old, US$500 million terminal, where it will join Delta Air Lines as a tenant.

The move follows the signing in May of a five-year, US$32 million lease by Houston-based Continental. The relocation has required Logan officials to amend airport roadway and terminal signage, the public address system in Logan shuttle buses, terminal directories, and the airport’s website, brochures and advertisements.

Continental handled 1.17 million passengers at Logan last year, or 4.2% of the airport’s total traffic.

Economy car park opens at Honolulu

From tomorrow (Wednesday), passengers travelling from Honolulu International Airport will be able to benefit from a new economy parking lot that will add 360 uncovered parking spaces and five handicapped spaces to the airport’s existing 4,500 spaces.

Hawaii State Department of Transportation says the economy lot will charge an introductory rate of US$5 per calendar day. It will be in service from 5 a.m. until the arrival of the last flight, and a free shuttle service will operate to and from the airport terminals. State sheriffs and airport security will monitor the area.

Travellers planning to use the new lot are advised to arrive 45 minutes earlier than usual to provide enough time to catch the shuttle and check in.

Hartsfield-Jackson sees terminal costs soar


Above: Hartsfield-Jackson International's new terminal will cost nearly double original estimates

Costs to develop a new 16-gate international terminal at Hartsfield-Jackson International, the world’s busiest airport, have doubled to US$1.5 billion.

Officials say that the latest financial figures for the terminal, which could be open by Autumn 2011, are based on very detailed costings.

“This number has a lot of information behind it,” says Ben DeCosta, Hartsfield-Jackson’s general manager. “There are things that could push it higher, but this is close.”

Mike Williams, who is responsible for the project, says the terminal itself will cost up to US$910 million, while associated infrastructure, including roads, will add a further US$450 million. Design, management and legal fees will account for the remainder.

Located near the control tower, the new terminal will replace the current international facility on Concourse E that was constructed for the 1996 Olympics – it will become a domestic facility once the new terminal is completed.

Rome grows despite Alitalia’s troubles


Above: Despite Alitalia's problems, Rome's Fiumicino Airport has seen strong growth in passenger numbers so far this year

Rome’s main airport Fiumicino handled 3.1 million passengers in September, an 11.9% increase compared with the same month in 2006. During the first nine months of the year Fiumicino’s passenger traffic rose by 8.6% to 25 million.

Ciampino, Rome’s second airport, which predominantly serves low-cost carriers, welcomed 460,000 passengers in September (up 4.4%), while passenger traffic during the first nine months of the year increased by 13% to 4.1 million.

Prospects for Aeroporti di Roma (ADR), which operates both airports, are heavily dependant on the uncertain future of Italy’s flag carrier Alitalia. The troubled state-owned airline is responsible for up to 40% of traffic at Fiumicino. Last year, Alitalia rationalised much of its Rome traffic, which contributed to Fiumicino recording a drop of 450,000 passengers in 2006.

Right: Improvements are underway at Fiumicino

While Alitalia’s problems have made it difficult for ADR to plan for future development, the airport operator has recently improved the retail area at Fiumicino. Flooring and temporary ceilings in the West Pier will be replaced soon and new restrooms will be installed in the International Terminal’s departure hall. Another terminal project on schedule is to connect pier AA with terminal A, and to improve the connection between Terminal A for domestic flights and terminal B, which is used for domestic and Schengen flights.

ADR has also doubled revenues from Fiumicino’s retail outlets following the opening of a new shop on the Mezzanine of Terminal A.

Munich steers Hyderabad’s launch preparations


Above: Hyderabad's new international airport at Shamshabad is due to open in March

Preparations for the launch on 15 March of Hyderabad’s new US$630 million airport at Shamshabad have begun under the guidance of the airport consulting wing of Munich Airport International.

GMR Hyderabad International Airport Limited (GHIAL) – which was formed to design, finance, build, operate and maintain the greenfield airport at Shamshabad – appointed Munich’s consulting arm to handle the process of launching the new facility and closing down operations at the old Hyderabad airport.

This is a familiar role for Munich Airport International, which has performed similar roles at Suvarnabhumi airport in Bangkok, Kuala Lumpur, and Singapore, and is currently also working on Terminal 5 at London Heathrow.

When complete on 15 March, Shamshabad will be able to handle 12 million passengers and 100,000 metric tonnes of cargo per year. Around 75% of the aircraft parked at the terminal will have access to passenger boarding bridges.

Among the developments planned for the new airport are a 308-room business hotel on the airport campus, check-in facilities at Begumpet and Secunderabad railway stations, and an elevated expressway offering a 30-minute journey between the city centre and the airport.

Cyclamen scans UK airport passengers for dirty bomb material

Following a top-level intelligence alert all UK airports are being fitted with hi-tech screening equipment to stop terrorists smuggling in material needed to make a nuclear ‘dirty’ bomb. The move, code-named Programme Cyclamen, reflects fears by anti-terror chiefs that suicide bombers, who have previously used substances such as fertilisers, are planning to explode a ‘dirty’ device in a UK city.

The enhanced equipment will be used to screen containers, freight, post, parcels and people for radiation using both fixed and hand-held detectors says Jane Kennedy, financial secretary at the UK Treasury. The new scanning devices are designed specifically to uncover nuclear or radiological substances, and will be used alongside more traditional screening equipment. Teams of radiation specialists will be on standby to carry out spot checks.

Kennedy says the project will include all entry points by 2009, though major airports, such as Manchester Airport, are already using the equipment.

Chifeng nears completion


Above: Chifeng Airport in Inner Mongolia is due to open on 15 November

Construction of the US$28 million (Yuan 210 million) Chifeng civil and military airport in Inner Mongolia is close to completion with only the VIP lounge still to be finished in time for the airport’s opening on 15 November.

Zhang Ruijun, head of the airport construction project, says the airport runway, terminal building and the ATC tower have all been completed, including interior decoration.

The new airport will feature a 5,000m² terminal, 5,050m² parking area and a 2,500m runway capable of serving aircraft as large as Boeing 737s.

Chifeng is the principal city in the eastern part of Inner Mongolia. Over the past two years, Inner Mongolia has invested US$333 million (Yuan 2.5 billion) on airport construction. Expansion of White Tower airport in Huhhot, the capital city of Inner Mongolia, was completed in July this year, while reconstruction and extension projects at Baotou airport and Hailaer airport are currently underway.

It is expected that by 2010, Inner Mongolia will operate 12 airports and that this figure will increase to 18 by 2020.

Three airlines opt for digital branding at Manchester

Three airlines – Thomas Cook, Monarch and Jet2.com – have signed up for flexible branding packages at Manchester Airport’s Terminal 1. Each airline is working with digital signage agency, Pixel Inspiration, to present digitally animated operator logos and video footage to passengers in the airline check-in area.

Pixel Inspiration claims the airlines will significantly increase their presence within the airport, while the integrated digital signage network on which the images are presented also serves to enlighten passengers as they wait to check-in and reduces the perceived waiting time.

Pixel installed the signage network above the check-in desks at Manchester’s Terminal 1 earlier this year.

“We’ve had a great response from the airlines who clearly see the benefits of the new dynamic, animated branding packages,” says Darren Thomason, creative director, Pixel Inspiration. “We already have the digital canvases in place at Manchester Airport and have launched this gold level service to enable operators to take advantage of this new and engaging method of digital brand enhancement.”

“It’s great to see the operators taking full advantage of this technology to communicate more effectively with passengers,” adds Jackie Neville, head of product development, Manchester Airport.

Below: One of the dynamic digital banners used by Thomas Cook in Manchester's Terminal 1

Punjab to start Mohali land acquisition

Next month, the Indian state of Punjab will start acquiring land for Mohali International Airport, which is being developed in a joint venture between the Airport Authority of India (AAI) and the Great Mohali Area Development Authority (GMADA).

The joint venture will need to acquire around 120-hectares for the project, at an estimated cost of at least US$75 million. India’s civil aviation secretary, Viswajit Khanna, says, “The state will acquire land for the project, while the AAI will build the infrastructure.”

Under the plans, the infrastructure of the existing civil and defence airport at Chandigarh will be integrated into Mohali international airport. A new international terminal is planned, the existing domestic terminal will be expanded and the runway will be extended to handle large passenger aircraft.

Mohali International will be Punjab’s second international airport after Amritsar. AAI will hold a 51% stake, while GMADA will hold 49%.

Sakal retains Eilat duty free contract

Sakal Group company Layam has retained the contract to operate the duty free store at the Ovda International Airport in Eilat, Israel, beating James Richardson Israel. Sakal, which has been operating the store for 15 years, will continue to operate it for the next five. Sakal says it will invest US$250,000 (NIS 1 million) to upgrade the store. The store serves incoming tourists from France, the UK, Russia and Scandinavia.

Pittsburgh gate closures could hit retail

Up to six retail outlets at Pittsburgh International could close from January when the airport is due to close around a quarter of its gates following the announcement by US Airways that it was cutting services (see: Job cuts at Pittsburgh as US Airways slashes services). The gate closures will be at the ends of Concourses A and B, says Jay Kruisselbrink, an executive at BAA Pittsburgh, while the bulk of the airport businesses are in the core area from which the concourses extend.

DeCosta named top airport executive

Airport Revenue News has named Ben DeCosta (pictured), general manager of Atlanta’s Hartsfield-Jackson International Airport, Best Director of the Year for large and medium-sized airports.

The title says DeCosta was chosen for the award for his successful leadership, innovation, revenue generation, marketing, customer service and charity. In his role, DeCosta has increased non-aviation revenue by more than 35% from traditional sources such as parking and emerging sources such as WiFi.

DeCosta joined the world’s busiest airport in 1998 and has overseen construction of the airport’s US$1.3 billion fifth runway and the planning for a new international terminal.

Regional name sought for Panama City’s new airport

Local businesses are pressing for a new name for
Panama City-Bay County International Airport, which is currently under construction


The US$330 million project to build a new Panama City-Bay County International Airport (see: Work begins on new Panama City-Bay County airport) has taken a new twist with news that local business leaders want the airport authority to rename the airport to reflect its projected regional impact.

Airport director Randy Curtis says he is aware of local support for a name change, but says nothing formal has been put on the authority’s agenda.

Airport spokesman Tom Slocum says that changing an airport’s name might prove challenging because of the unique, three-letter designator used in federal and international aviation databases, airline ticketing computers and on aerial navigation charts.

The Dubai government's move to set up the Dubai Civil Aviation Authority (DCAA)

Dubai: The Dubai government's move to set up the Dubai Civil Aviation Authority (DCAA) will help bring transparency to the emirate's aviation industry, analysts say, as the restructuring will separate regulatory functions of the authority from the operation of the airport.

"This has long been expected. The Department of Civil Aviation, being the government authority, has also been the operator of the airport," Robert Ziegler, principal at A.T. Kearney (UAE) Limited, told Gulf News yesterday.

The Dubai Government yesterday restructured the civil aviation sector by establishing Dubai DCAA, replacing the Department of Civil Aviation, according to a government statement.

"His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, today issued a law to establish the DCAA, replacing the Department of Civil Aviation," the e-mailed statement issued yesterday said.

"Designed to further drive the emirate's civil aviation sector, the law follows the decree issued earlier this year by Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Chairman of the Dubai Executive Council, to restructure the Department of Civil Aviation based on international best practices."

The Dubai Civil Aviation Authority will oversee conventions and the signing of agreements on the use of Dubai's air space for commercial air transport, in addition to issuing licences to new national and foreign air travel operators of regular and charter flights.

"Operation and regulation by the same entity poses a conflict of interest. However, the new move will separate those to functions and help bring in more transparency to the industry," Ziegler said.

According to the law, the DCAA is a government entity with financial and administrative independence, responsible for policy making, air traffic, and air transport and air cargo. It will also represent Dubai in negotiations related to the authority.

The law also announced the appointment of a director-general, who will be responsible for setting, implementing and monitoring the general policies of the authority.

"The DCAA will be exempted from paying taxes to the government and will assume sole authority of all the lands and facilities that were under the purview of the Department of Civil Aviation and Dubai International Airport," the statement said.

The Department of Civil Aviation, which operated the Dubai International Airport for the last 43 years and has played a pioneering role in building up the DIA as the region's biggest aviation hub, will henceforth cease to exist.

The move comes at a time when the first of the six runways of the Jebel Ali Airport becomes operational - a facility developed to cater to 130 million passengers a year - making it the world's biggest greenfield airport development.

"It will also take over the mandate of all commitments towards the Dubai City of Aviation Establishment that has been created as an umbrella organisation for the newly created Dubai City of Aviation and its subsidiaries."

Timeline: Steady progress

  • 1960: DIA opened.
  • 1997: The Department of Civil Aviation had launched a $540 million expansion programme.
  • 2000: Opening of Shaikh Rashid Terminal.
  • 2003: Dubai Government announced the development of a new airport at a 140-square kilometre site in Jebel Ali - ten times the size of the DIA site.
  • 2006: The government announces the establishment of Dubai Aerospace Enterprises - a Dh55 billion investment vehicle.
  • 2007: First runway at the Jebel Ali Airport City gets ready.

DNATA TRAVEL SERVICES AWARDED GSA CONTRACT FOR KINGFISHER

Kingfisher Airlines has appointed Dubai-based Dnata Travel Services as General Sales Agent (GSA) for Abu Dhabi, Sharjah, the Northern Emirates and Kuwait. The contract was signed between (right seated) Iain Andrew, Divisional Senior Vice President, Dnata Travel Services and (left seated) V. Raja - Global Sales Head, Kingfisher Airlines. Standing behind are George Ambooken, General Manager, Dnata Travel Abu Dhabi, Mark Turner, Head of Airline Affairs, Dnata and Ashley Correa - General Manager Dnata Travel Kuwait.

DUBAI, U.A.E., 4th November 2007 – Dnata Travel Services has been appointed as General Sales Agent for passenger sales for Kingfisher Airlines for Abu Dhabi, Sharjah, the Northern Emirates and Kuwait.

The contract was signed on October 17 2007 at the Dnata Travel Centre between Iain Andrew, Divisional Senior Vice President, Dnata Travel Services, and V. Raja, Global Sales Head, Kingfisher Airlines Limited.

The agreement offers customers an increased distribution platform with access to any Dnata Travel outlet or local travel agency in the represented territories of Abu Dhabi, Sharjah, Northern Emirates and Kuwait.

Iain Andrew said: “We are pleased to represent Kingfisher in the Gulf markets. This partnership is of significant importance; travel to and from India from this market is increasing at a tremendous rate, there is a need to grow the supply and we’re certain through this affiliation we will be able to do so.”

Mr. V. Raja, Global Sales Head , Kingfisher Airlines Limited, commented, “I am delighted that we have entered into this partnership with Dnata Travel Services and the fact that Dnata will be the General Sales Agent (GSA) for Kingfisher Airlines Limited in the United Arab Emirates (excluding Dubai) and Kuwait. The UAE market is a significant market for us and the strong reach and the leadership position of Dnata will go a long way in ensuring that we are able to reach out and better service guests of Kingfisher Airlines in this region. As the extended arms of Kingfisher Airlines, Dnata will be our partner and will help us immensely expand our reach in the UAE and the Kuwait market I look forward to a successful, mutually beneficial and long association with Dnata”

Customers can also call and book e-tickets on Kingfisher Airlines at Dnata's 24-hour contact centre, manned by skilled and multi-lingual staff trained to meet the requirements of the customers, on +971 (0)4 3166666.

Dnata Travel Services is GSA to more than 40 airlines in Dubai, Northern Emirates and the GCC region, acting as the essential link between its airline partners and local travel agents and providing more than 40 years of experience to promote and sell their services in a highly competitive and dynamic market.

Dnata Travel Services is an established travel industry innovator and market leader in the Middle East, with an extensive network of partnerships providing tailor-made solutions to meet the travel demands of its customers. Dnata Travel Services has expanded operations to Kuwait, Saudi Arabia, Oman, Afghanistan, Abu Dhabi and plans to establish more regional outlets. Recently Dnata has been awarded the ‘Middle East Leading Travel Management Company 2007’ by World Travel Awards.

Kingfisher Airlines, India’s favourite airline commenced operations with a brand new fleet of aircraft on May 9, 2005. Widely acclaimed as India’s most premium private airline, Kingfisher Airlines started with just four flights daily and today, it offers over 200 flights daily connecting 32 key Indian business and leisure destinations and has won an impressive line-up of prestigious international awards from Aviation Experts, Aviation Business Research Analysts and Travel and Tourism Writers of international repute.

For the first time in the Indian skies, Kingfisher Airlines offers world-class, in-flight entertainment with personalized video screens on every seat with 10 channels of chartbusting Kingfisher Radio and 5 channels of the trendy FUN TV. Kingfisher Airlines has been rated as India’s No. 1 airline in customer satisfaction under the CSMM survey conducted by one of the leading business magazines – Business World.

AIRPORT NEWS

Athens advances and plans upgrades


Above: Passenger numbers at Athens International are up by more than 10% this year

Greece’s capital airport Athens International (AIA) handled almost 1.7 million passengers in September, up 9.2% compared with the same month in 2006. The number of passengers in the first nine months of the year stands at 12.8 million, up 10.1% on the same period last year.

Last year Athens International handled a record 15 million passengers. Given the current growth rate, the airport hopes to handle more than 16 million passengers this year – it has a capacity for 21 million passengers annually.

Left: Further development is planned at AIA to improve services to passengers

AIA managers put a lot of emphasis on the quality of service offered to passengers. “It is our main goal to listen to our passengers. Following the trend and development of travellers’ expectations, leads us to the introduction of new passenger service elements,” says Dr Yiannis Paraschis.

In 2008, AIA is planning to invest in improvements to the security operations in the airport’s terminal areas, which should be complete by July 2009.

Right: Planned changes include an expansion of the main terminal including new retail areas and business lounges

AIA is also considering a series of changes to the airport in 2009, including an extension and refurbishment of the satellite terminal building and an expansion of the main terminal including new retail areas and business lounges.

Chennai airport award likely by February

The US$382 million contract to expand Chennai airport in India is likely to be awarded by the middle of February next year according to the Airports Authority of India (AAI). The winning bidder will be given 28 months to complete the project – by June 2010.

During the first phase, which is due to be completed by 2010, a new domestic terminal with an annual capacity of 10 million passengers will be built and two multi-level car parks constructed, each with 1,200 vehicle spaces.

The new construction will allow the airport to handle an extra four million international and 10 million domestic passengers annually, thereby taking the annual handling capacity to 16 million domestic and seven million international passengers.

There are plans for 72 check-in counters for international passengers and 62 counters for domestic passengers. The airport’s arrival hall would have four aerobridges for international passengers and six for domestic passengers.

Dalian expansion plan unveiled

New terminal planned for Dalian Zhou Shuizi International Airport in northeastern China

Xia Deren, mayor of Dalian City, yesterday announced an expansion project for Dalian Zhou Shuizi International Airport in northeastern China .

Speaking at a ceremony held to celebrate 10 years of flights by Japan Airlines to the airport, Xia says the expansion will include a new 60,000m² terminal, and expansion of the parking apron to 440,000m².

The airport’s capacity will rise from seven million passengers to 13 million annually by 2012.

Xia says Dalian is the prime Chinese airport for services to Japan, Korea and Russia and recently welcomed services from three foreign airlines – Korean Air Company, Asiana Airlines and Russia Yakut Aviation.

At present, Dalian Zhou Shuizi International Airport covers 284.46 hectares and features one 3,300m runway, a 65,000m² terminal building, a 240,000m² parking apron and 25 gate positions.

London City considers bids for BAA’s Gatwick and Southampton

London City Airport, located six miles from the UK capital’s financial district, may bid for rival terminals including BAA’s Gatwick as passenger growth exceeds forecasts.

London City’s chief executive Richard Gooding says that London City will probably attract 2.85 million people this year, 6% more than it projected, as travellers switch from BAA’s Heathrow airport 20 miles away. He will consider bidding for some of BAA’s seven UK airports if Spanish parent Grupo Ferrovial opts to sell them to placate regulators.

London City is owned by American International Group, Credit Suisse Group and the General Electric Company. These companies bought it for US$1.47 billion last year from Irish billionaire Dermot Desmond.

“There is nothing in front of us today, but we are business people and if there is some business around that’s of interest to our shareholders and us, we’ll want to have a crack at it,” says Gooding. “Gatwick and Southampton are the two we’d be most interested in.”

London City handles around 250,000 passengers a month, many of them, Gooding claims, are business travellers tired of crowds at Heathrow, Europe’s busiest airport.

Eleven seized in Geneva baggage scandal

Luggage was allegedly opened in the holds of aircraft before it was brought to luggage reclaim at Geneva Airport


Police in Geneva, Switzerland have detained 11 baggage handlers following complaints about the theft of valuables from luggage.

The workers, employed by Jet Aviation, are accused of opening and removing the valuables from luggage in the holds of aircraft at Geneva Cointrin Airport.

The suspects include Swiss nationals as well as people originating from Portugal, Serbia and Spain and range in age from 22 to 35.

Police have not released details of the goods stolen, nor their value, pending their enquiries.

Heathrow T5 wins environment award

Heathrow's Terminal 5 has won an environmental award for waste management on site during construction

Even before work on Heathrow’s Terminal 5 has been completed, BAA has already won an environmental award for its waste management programme on the terminal’s site. The Chartered Institute of Wastes Management has awarded BAA top honours for having an exceptional waste management programme.

The site’s material take-back scheme was also commended by the awards committee: a market place is open on-site to allow workers to make surplus materials available to other on-site contractors.

A spokesman for the Chartered Institute explains the decision to give BAA the award, “Over 97% of the waste generated on the project was recycled or recovered. They used pre-fabrication and modulisation to reduce the waste generated and a lot of its logistics were done using the just-in-time strategy, reducing storage on site and vehicle movements.”

Aelia expands into Poland

The Aelia Group has opened its first 70m² multi-category outlet at Poland’s fast-growing Krakow John Paul II International Airport under its new subsidiary Aelia Polska. Based in France, Aelia is the fourth largest operator of airport duty free shops.

Aelia’s international operations director, Bruno Bouchacourt says, “We are delighted to open our first Polish store at Krakow, an airport with huge potential.” Total traffic at Krakow John Paul II International airport reached 2.37 million passengers in 2006, an increase of nearly 50% over the previous year.

The group has also struck a deal with Polish Airports’ State Enterprise to run the duty free concession at Warsaw Frédéric Chopin airport’s new Terminal 2 once the facility is operational. Warsaw Airport handles more than 50% of the air passenger traffic in the country.

Warsaw Airport operates approximately 100 scheduled flights, and its charter connections are increasing. The most popular destinations are London, Frankfurt, Paris and Amsterdam. In 2006 the airport handled more than eight million passengers, a 14% increase over 2005. The forecast for 2010 is for approximately 10 million passengers annually.

Aelia CEO Jean-Baptiste Morin adds, “Strategically, Poland is a key market for Aelia Group as we develop our business beyond France, and we are confident that Krakow is only the first in a series of store openings. While we hope that Warsaw will prove to be our flagship in Poland, the creation of Aelia Polska allows us to study opportunities across the country and in Eastern Europe in general.”

Singapore injects billions to boost tourism industry

The Singaporean government has recently announced a major human capital investment worth Dh1.3 billion as part of a wider tourism strategy that has targets to achieve 17 million visitor arrivals and Dh110 billion in tourism receipts by 2015.

Through the TOurism TALent (TOTAL) Plan, the funds will train 74,000 new tourism workers within the next three years, significantly enhancing service levels in order to support the island-nation’s ambitious tourism goals.

Jointly developed by the Singapore Tourism Board and the Singapore Workforce Development Agency (WDA), the initiative will tap into local talent to meet the projected spike in demand driven by new tourism investments including two new integrated resorts – Marina Bay Sands and Resorts World at Sentosa.

The holistic three pronged approach comprises of continuing education and training for adult workers, pre-employment training for students and industry development to attract more workers to join the industry.

The WDA aims to convert 36,000 non-tourism workers to take on various service jobs such as hospitality, service and retail assistants, waiters and hotel receptionists. Apart from portable service skills, specialized skills are needed for other tourism jobs such as ride technicians, animal trainers, tour hosts and landscape technicians. This will ensure a pool of trained workers and will facilitate labour mobility across a range of sectors within the industry.

“With new and upcoming attractions like the Integrated Resorts (IR’s) and the Singapore Flyer and events like Formula 1 Singapore Grand Prix, Singapore’s tourism industry will witness a surge in demand for manpower. We are therefore investing in vital human resources in anticipation of this major visitor boost from areas such as the Middle East,” said Siew-Kheng Kang, Regional Director for South Asia, Middle East & Africa, Singapore Tourism Board.

The expanded community of tourism workers will also be supported by more resources for Middle East visitors, including a greater volume of printed and online material in Arabic to facilitate their visits to Singapore.

Fernandes keeps it simple, sees a big year for liberalisation

Tony Fernandes, CEO of AirAsia, the CAPA Airline of the Year, told the Outlook Summit in Singapore that one of biggest keys to his carrier's continuing success is keeping every level of his operation as free of complexity as possible. "We believe in the KISS principle – keep it simple, stupid," he says.

This approach, he notes, marks AirAsia as distinct from the competition. "I've never seen an industry that likes to unnecessarily complicate things as much as the airlines," the former music industry executive says, vowing that he spends 50% of his time "trying to keep bureaucracy from creeping into the system".

Looking to the future, the iconic airline's CEO sees a big year for his airline to continue expanding throughout its

"ASEAN backyard", a development he sees catalysed in large part by Malaysia's move to open up the highly symbolic Kuala Lumpur-Singapore route ahead of ASEAN's capital city liberalisation programme. "It's a watershed in aviation that it's opening," he says, adding that he hopes to initiate service between the two cities by Dec-07.

Speaking of the benefits that this newly opened market will bring for consumers, Mr Fernandes points to the current fares commanded on the Singapore-Kuala Lumpur route. "A half-hour flight that is closed has ticket prices of MYR800. That's what we're going to charge on our flights to Gold Coast," he laughed, referencing the launch of his long-haul affiliate, which will make its first flight on 2 November.

Aviation Outlook Summit 2008 is the fourth meeting of the Centre's annual review of the Asia Pacific and Middle East airline industry and its future prospects. This year's gathering is focused on the need for Asian industry participants to play a leadership role in the events that continue to shape the global aviation sector, especially as the region begins to generate the largest share of world traffic.

Aviation leaders from all segments of the industry have assembled in Singapore to discuss and debate how the regional sector can proactively assert itself in such vital fields as the environment, liberalisation and the necessary evolution of the aviation business model, for both full-service and low cost airlines.

Kingfisher-Deccan merger a seminal event for Indian industry

Dr Vijay Mallya, Chairman and CEO of Kingfisher Airlines and CAPA's Aviation Executive of the Year, explained the importance of his acquisition of low cost carrier, Air Deccan, to the Indian airline sector in the Outlook Summit's Keynote address.

Interim results show that the synergies between his carrier and Deccan have resulted in cost performance improvements that have defied popular predictions. Dr Mallya stated, however, that the biggest winner from the deal will prove to be the national airline industry.

Before the arrival of Deccan on the scene, he explained, the prevailing fare from Bangalore to Delhi, a route operated by three carriers, was INR12,000. With Deccan's emergence and the impact it had on prices, the average ticket cost only INR2,500. This, he explained, may have stimulated the market and generated a lot of excitement, but it also created "a lot of balance sheets splashed all over with red ink."

With the combining of forces, which the charismatic CEO says will allow him to offer "both the lowest fares in the market, as well as the highest", there are now three major groupings – Air Deccan/Kingfisher, Air India/Indian and Jet Airways/Sahara. Because these three groups control 83% of the domestic market, there will be a return to sustainable pricing and operations.

"I think everyone has had about enough," he says. "We are not looking to operate as cartels or exploit consumers, but we do want to make some money and insert some sanity into the industry. In a few years, I think we will see preserved business [low cost and full-service] models, but a vastly improved bottom line."

World Travel Awards` debut in India an unprecedented growth

Glamour, joy and excitement characterised the regional World Travel Awards (WTA) Ceremony at The Leela Palace Kempinski in Bangalore, India, where the winners of the Asia, Australasia & Indian Ocean Awards were announced. As many as 50 of the sought-after trophies were given out to the elite of the regional travel trade on Friday night (1 November 2007).

Cathay Pacific Airways was named “Asia’s Leading Airline”; The Leela Goa scooped “Asia’s Leading Resort”, fittingly India was presented with “Asia’s Leading Destination”, Oberoi Hotels & Resorts was named “Asia’s Leading Luxury Hotel Brand” and Huvafen Fushi took top honours as “Indian Ocean’s Leading Spa”. The Maldives Tourism Promotion Board, Avis, Air New Zealand and Changi Airport Singapore were also crowned the best of their kind in the region.

Over 200 travel professionals, VIPs and media from 16 countries across the region enjoyed an event full of surprises and Indian flavours. Hosted by model and actress Salome Narayana Polaki and stand-up comedian Sunil Grover, who stars in the TV show ‘Kaun Banega Champu’, the night saw musicians playing indigenous Jugalbandhi and dancers performing a compilation of Indian dances. Two fashion shows also cast a spell on the audience, exhibiting the silk collections of “The Royal House of Mysore”, designed by His Highness Shri Srikantadatta Narasimharaja Wadiyar and Her Highness Pramoda Devi Wadiyar.

“We are blown away by the outcome of our regional Asia, Australasia & Indian Ocean Ceremony. For us this event was undoubtedly one of the most victorious and rewarding to date,” said Graham Cooke, Founder & President of the World Travel Awards. “India, as one of the Asia-Pacific powerhouses in the global tourism arena, proved to be the perfect host for the fourth leg of our 2007 Grand Tour. The ceremony put the finishing touches to our already very auspicious world tour. Now, with only a month left to the grand final in the Turks & Caicos, the excitement is growing steadily, and we are now facing the big challenge of creating a perfect finish.”

Adding more glamour to the gala event were Bollywood stars Jimmy Shergill and Masumeh Makhija, from the new movie ‘Dus Kahaniyan’ (‘Ten Stories’) – one of White Feather Films most inimitable and ambitious creations. Akbar Khan, Neha Devi Singh and Rivi Kishan were also mingling with nominees and winners. Distinguished guests among the audience included Captain C.P Krishnan Nair, Chairman of The Leela Palaces Hotels Resorts, Hon. Dr. Mahamood Shougee, Maldivian Minister of Tourism & Civil Aviation, Mr Vijay Rekhi, President of United Spirits and member of the Board of Directors, Kingfisher Airlines, as well as Vikram Oberoi, Joint Managing Director of The Oberoi Group.

The media attendance was at an all-time high with over 30 media institutions taking part in the event, including The Economic Times, Express TravelWorld, TV Today Network, The Times of India, Bangalore Mirror, Taste & Travel, The Hindu, The New Indian Express, Asianet Suvarna and Bangalore Mirror, to name but a few. Official media partner for the event is TravTalk India, global media partner BBC World.

The winners of the Asia, Australasia & Indian Ocean Awards will automatically be put forward as nominees in their respective global categories. The world winners will be announced at the grand final, the Annual World Travel Awards Gala Ceremony in the Turks & Caicos in the Caribbean on 12th December this year.

Royal Jet to unveil expansion plans at Dubai Air Show

Royal Jet is to unveil its long-term expansion plans and deliver a state-of-the-industry report at this month’s (November) Dubai Air Show. “The overview of the Middle East’s business aviation market follows results of a report specially commissioned by Royal Jet to obtain detailed information about the existing and future scenarios for this rapidly developing aviation sector,” said Shane O’Hare, President & CEO, Royal Jet.

“The results make for exciting reading and will demonstrate the growing importance of business aviation to the UAE’s and the wider region’s overall aerospace landscape.”

Royal Jet will be out in force at the Dubai Air Show 2007, which runs at Airport Expo Dubai from November 11-15, with plans to have four aircraft on static display.

“We are planning a Royal Jet static park arena which will house the latest BBJ to join our fleet, an aircraft type which is at the core of our mid-size fleet expansion plans, a mid-range GulfstreamG300, which boasts the quietest cabin in the private jet industry, our newly-acquired Learjet 35, which is the focus of the region’s most cost-effective Learjet service, and our Learjet 55 which is the main vehicle for our Medevac operation, which provides aeromedical evacuation services,” said O’Hare.

Royal Jet recently boosted its aircraft management offering with the addition of a luxury long-range Gulfstream GIVSP which it is operating on behalf of a GCC national owner.

“Additional aircraft management negotiations are under way with a number of regional owners and talks will be progressed at the air show,” said O’Hare.

Western Denmark will be linked to Lufthansa

From the end of March 2008, western Denmark will be linked to the Lufthansa's worldwide route network with a service that will be operated for the first time by Lufthansa itself as the carrier announced. Flights will connect Billund Airport in Central Jutland to Lufthansa’s Frankfurt hub three times a day. Lufthansa Regional partner Eurowings will deploy a BAe 146-300, a modern, four-engine passenger jet on this route, which is currently operated by Cirrus Airlines on a codeshare basis with Lufthansa.

Japan Airlines' H1 Operating Profit Rises

Japan Airlines' operating profit climbed to JPY40 billion yen (USD$350 million) in April-September, making it highly likely that the company will achieve its full-year profit goal of JPY35 billion yen, the Nikkei business daily said.

Increased numbers of business passengers on its North American and Asian flights and restructuring efforts helped boost profit from JPY8.16 billion a year ago, the business daily reported at the weekend.

Early retirements and the discontinuation of money-losing domestic routes also helped, the Nikkei said.

Airbus, Boeing Vie For Air Arabia Order

Boeing or Airbus may win an order this month worth up to USD$3.95 billion from United Arab Emirates-based Air Arabia, which said it plans to buy as many as 50 planes.

The Middle East's largest low-cost carrier had previously said it was looking to purchase 34 either Boeing 737 or Airbus A320 aircraft.

A Boeing 737-800 costs USD$79 million at list prices, valuing a 50 plane order at USD$3.95 billion. An order for 50 A320s would be worth about USD$3.25 billion.

"We are planning to purchase between 34 and 50 aircraft directly from airplane makers... in November," Air Arabia Chief Executive Officer Adel Ali said.

He did not say why he might order more aircraft than previously stated.

The three-year old carrier, set up by Sharjah, the UAE's third-largest emirate, operates a fleet of nine leased Airbus A320s.

Regional airlines, such as Dubai-based Emirates and Qatar Airways, have in the past announced billion dollar plane orders at the Dubai Airshow, which starts on November 11.

Air Arabia sold a 55 percent stake in the Middle East's first airline IPO in April. The USD$700 million it raised in the share sale will go towards helping pay for the aircraft, Air Arabia spokesman Housam Raydan said in June.

The carrier plans to expand its fleet to 52 by 2016, Raydan said.

(Reuters)

Italian Bank Looks At Alitalia Deal

One of Italy's biggest banks, Intesa Sanpaolo, is looking at a plan to combine struggling national airline Alitalia with smaller Air One and take a minority stake.

Alitalia has been on the block for 10 months and is now in talks with several possible investors including Air One and three foreign airlines, after the government's efforts to sell it and keep its Italian roots collapsed in July.

Intesa, which backed Air One in the auction, has since expressed hope that the deal could be back on. Intesa's chief executive, Corrado Passera, said just last week such a move could turn the loss-making airline around.

A domestic solution would echo Intesa's deal with investors including investment bank Mediobanca and insurer Generali earlier this year to keep Telecom Italia under Italian control.

The three got together with the Benetton family and Spain's Telefonica to buy a controlling stake in the former telecoms monopoly from Pirelli and are now in the process of appointing their choice of senior managers there.

Although for Alitalia, all options are open in the latest round of talks, according to a financial source, the airline said last month that shortlisted private equity fund TPG was not able to form a sufficiently Italian-based group.

Another mostly Italian group of investors has been asked to prove it has sufficient funds to take on the airline, which loses more than EUR1 million euros a day.

That leaves Alitalia's long-time commercial partner Air France-KLM, Germany's Lufthansa and Russia's Aeroflot also on the shortlist drawn up by advisers at Citigroup for talks.

Italian newspapers have speculated Air France-KLM would be the partner of choice for Alitalia but the courtship has not yet taken off and Alitalia's chairman, Maurizio Prato, has denied any pressure to pick the French-Dutch company.

Air France-KLM has said in the past Alitalia must shape up on finances before it would be interested.

Italy's biggest bank, UniCredit, backed Aeroflot in the government's auction but has not yet shown its hand this time around. Aeroflot has said it is ready to borrow up to EUR1 billion for a bid.

Alitalia, which is worth about EUR1.24 billion (USD$1.8 billion), needs to find a partner to avoid hitting a dead end, Prato says, and he is trying to push through a survival plan that will cut flights and costs while filling more empty seats.

The airline is hoping to come up with a preferred bidder by mid-November, a trade union source said last month.

But an Italian solution for Alitalia might not be easy for Intesa to strike. It has crossed swords with Mediobanca over the investment bank's key role in Generali -- a shareholder and commercial partner -- now that Intesa's only serious domestic rival, UniCredit, tops Mediobanca's investor list.

(Reuters)