September 05, 2007

Can Airbus make it big in Asia?

By Sharanjit Leyl
Business reporter, BBC News, Hong Kong

Just before dawn earlier this week, Hong Kong residents scaled the heights of one of the city's tallest peaks to await a spectacle.

Airbus A380 flying over Hong Kong's Victoria Harbour
Airbus wants to drum up more Asian business

After an hour or two of anticipation, they were rewarded by the sight of something they had never seen before: the biggest passenger aeroplane in the world, flying above Hong Kong's Victoria Harbour on Monday morning.

It was all part of a publicity ploy from European manufacturer Airbus, which makes the A380.

The flight follows more than a year of bad publicity brought on by production delays.

There was more embarrassment just two days before the aircraft's arrival for Asia's largest airshow in Hong Kong. The plane that made Monday morning's flight had scraped its wing in Bangkok and had to have its wingtips removed.

John Leahy, Airbus's chief operating officer for customers, admits it has not been a smooth ride.

"Every plane is difficult to build - the bigger the more difficult," he says.

"It's been a manufacturing nightmare to build it. Now we've got the production process solved. It took a two year delay, though."

Rivalry

Still, the plane has been a hit with locals. Despite several security barriers and long lines, many of the delegates at the Hong Kong Asian Aerospace show turned up to see just how big it was, both inside and outside.

But some critics say that the A380's sheer size and pulling power have not stopped it from lagging behind Boeing in Asia.

In China alone, for instance, 60% of the commercial planes are made by Boeing.

The American manufacturer did not fly down any of its planes to Hong Kong for display; instead, visitors to the airshow had to make do with plastic models at the manufacturer's exhibition booth.

arry Dickenson, a senior vice-president at Boeing, says he is confident of his company's lead over Airbus in Asia.

"They have a lot of ground... to recover," he says. "They are in a different situation from us, driven by different motivations.

"We have our plans. We have our planes. We have the products that the airlines and the world prefer."

Home-grown talent

But even as the two giants in plane manufacturing slug it out for a slice of Asia, one Chinese manufacturer already has lofty ambitions of its own.

Just a few steps from the Boeing booth at the show, China Aviation Industry Corporation 1 - otherwise known as Avic1 - has a display of its own aeroplane.

The ARJ21 is one of China's first passenger jets, capable of carrying nearly a hundred people.

Backed by the Chinese government, the manufacturer hopes to take on its western rivals.

Jim Eckes, an aviation analyst from IndoSwiss Aviation, thinks they may have a good chance.

"China is going after Boeing and Airbus's low-end market," he says. "They're displaying here on a par not quite as big as Boeing or Airbus - but they're here."


Air Malta to provides operational support to Etihad Airways

Air Malta has successfully concluded an agreement with Abu Dhabi-based Etihad Airways by which it will be wet-leasing two Airbus aircraft for the winter period starting September 1st 2007. The Maltese airline has also concluded another agreement to provide operational support on another Airbus A320 aircraft owned by Etihad.

The two Air Malta A320 aircraft with registration 9H-AEP and 9H-AEQ will be wet-leased and will be operated by Air Malta cockpit and cabin crew. They are expected to fly on Etihad’s routes from Abu Dhabi to Beirut, Dammam, Karachi, Muscat, Bahrain, Cairo, Doha, Kuwait, Amman, Damascus and Tehran.

Following another agreement reached between the two airlines, another A320 aircraft recently purchased by Etihad will also be maintained by Air Malta engineers and flown by Air Malta pilots.

In a statement issued by Etihad, the airline said that it is adding the first narrow-bodied aircraft to its fleet as it expands regional flights with the aim of developing its regional network.

Commenting on these agreements Air Malta Chief Executive Joe Cappello said, “We are looking forward to this operation. This is more good news for Air Malta as through these agreements with Etihad we managed to lease our excess winter capacity whilst generating additional revenue for the airline. This lease has also created new opportunities for our pilots and engineers to work abroad and we believe that in the course of these wet-leases our employees will continue garnering further experience in their professional careers. Last winter we had also managed to wet-lease two other Airbus aircraft to two foreign operators; an Air Malta aircraft operated from Santiago in Chile while another aircraft operated from Tripoli.”

“These agreements are a further confirmation of the high standards we enjoy amongst our staff, operations and equipment. We wish to thank all our employees and management who have worked hard on finalising these leases and to all our crew who will be operating them,” added Cappello.

Etihad currently has a fleet of 27 wide-body aircraft and it placed a US$2.2 billion order with Airbus for 12 new wide-body aircraft in June. The order includes four A340-600s, five A330 passenger aircraft and three A330 freighters.

Vicky Karantzavelou - Wednesday, September 05, 2007

DUBAI TO HOST FIFA BEACH SOCCER WORLD CUP


DUBAI, U.A.E., 27th August 2007 - FIFA announced on Sunday that the United Arab Emirates will host the FIFA Beach Soccer World Cup 2009 in Dubai. The city has quickly become the sporting capital of the Middle East and the announcement further underlines that fact.

At the same occasion FIFA General Secretary Jérôme Valcke presented that France will stage the 2008 competition in the city of Marseille, the first time in the event’s history that it will be held outside of its birthplace of Brazil.

Emirates, the Dubai-based award winning international airline, is an Official FIFA Partner and fully supported the bidding of the UAE and Dubai for the FIFA Beach Soccer World Cup 2009

His Highness Sheikh Ahmed bin Saeed Al-Maktoum, Chairman and Chief Executive, Emirates Airline & Group, said: “Dubai is the perfect choice as the venue for the FIFA Beach Soccer World Cup 2009, it is through the vision of His Highness Sheikh Mohammed bin Rashid Al-Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, that the infrastructure is in place for the city to be able to hold an event of this magnitude. Emirates is very pleased that the FIFA Beach Soccer World Cup will take place on our home soil in 2009 and will provide any support necessary to make this a unique experience for all football fans from all over the world."

“What's happened in the last three years since the integration of beach soccer in the FIFA family has been fantastic. I don't know if any other sport has ever made such rapid progress in such a short space of time – both on the pitch and in running the game. It is now a fascinating combination of organised football and lifestyle. By moving the event first to Marseilles and then to Dubai, we are convinced that we will be taking yet another giant step in the dynamic world of beach soccer, ” explained FIFA General Secretary Jérôme Valcke during the announcement at the occasion of the draw for the 2007 edition of the FIFA Beach Soccer World Cup in Marseille."

Emirates is an Official Partner of the FIFA World Cup™ with close links to FIFA and all its projects in the 2007–2014 period. At the 2006 FIFA World Cup™ Emirates became the first airline to be an Official Partner of the world's premier football tournament.

In 2004, Emirates and Arsenal Football Club signed the biggest club sponsorship in English football history - in addition to the Fly Emirates logo on the players' shirts, Emirates also has the naming rights of their new home, the Emirates Stadium. Emirates also sponsors Paris Saint Germain Football Club and Hamburger SV.

Emirates' longest range aircraft touches down


Emirates recently welcomed the first of its 10 Boeing 777-200LRs on order, bringing the fast-expanding airline`s fleet count to 108. This new aircraft also represents the 50th Boeing 777 to have joined the fleet of the airline. The technically-advanced Boeing 777-200LR will make its debut for Emirates on the airline`s non-stop Dubai to Sao Paulo route which will be launched on 1st October 2007, representing the first non-stop air link between the Middle East and South America. The same aircraft type will also be used on the Dubai – Houston service which begins on 3rd December. The Emirates` Boeing 777-200LR is equipped with eight luxurious private suites in First Class, 42 of its latest lie-flat seats in Business, and generous space for 216 passengers in Economy.

Banyan Tree to operate first resort in Mauritius

Banyan Tree has signed a new management contract in the Republic of Mauritius, to operate a new resort located in the Indian Ocean off the coast of Africa. This will be the first project for the Group in Mauritius. This follows on earlier announcements in the year on management deals in China and Mexico and its recently announced management deal in Bodrum, Turkey.

“Banyan Tree has always enjoyed a strong presence in the Indian Ocean as a premier operator of top end resorts and residences. This project further entrenches our pole position in the region and enhances our ability to continue to provide our guests with exclusive getaways in the most exotic surroundings,” said Executive Chairman, Mr Ho Kwon Ping.

Banyan Tree will manage its first luxury resort property in Mauritius in collaboration with Tatorio Holdings Limited, a subsidiary of Greenoak Holdings Limited. The first phase of the project will be launched with the start of the sales of the branded residences this October. The resort is projected to be completed in 2010.

This new development is not expected to have any material financial impact on the Group’s earnings and its net tangible assets for 2007.

Rania Deimezi - Wednesday, September 05, 2007

September 04, 2007

Swiss air crash verdict expected

The wreckages of a Russian plane in 2002
The Russian children on board were going on holiday to Spain
By Imogen Foulkes
BBC News, Berne

A court in Switzerland is due to deliver a verdict in the trial of eight employees of the air traffic control company Skyguide.

The eight are charged with manslaughter and negligence over a midair collision in 2002, in which 71 people died.

The prosecution wants prison sentences of up to 15 months for the accused.

Two investigations have already found what are described as organisational deficiencies within Skyguide, claimed to have contributed to the accident.

All eight men on trial maintain their innocence - seven still work for Skyguide.

Seventy-one people died when the Russian charter flight carrying children on holiday collided with a cargo plane in Swiss airspace on 1 July 2002 - the wreckage came down in Germany.

Controller stabbed

The trial revealed that minutes before the crash a single air traffic controller was in charge of 15 planes, he made 118 radio contacts with them, and he was guiding a plane into land.

Apartment building where the air traffic controller was stabbed to death
The controller was stabbed to death in front of his wife at his home

Technical repairs were being carried out and some radar systems were not working.

That air traffic controller was later stabbed and killed by the father of two of the children who died.

At the time Skyguide insisted that having just one air traffic controller on duty was normal - but it has since outlawed the practice, and provided financial compensation to some of the bereaved families.

What many Russian relatives say they want from this verdict, however, is an official admission of responsibility for the crash.

Deals take off at Hong Kong airshow

By Sharanjit Leyl
Business reporter, BBC News, Hong Kong

From the manufacture of wing tips to the upholstery that goes on to the seats, planes mean big business - and it is getting even bigger.

Visitors look at models of the Airbus A380 at the Asian Aerospace show in Hong Kong
Asia's biggest airshow is a newcomer to Hong Kong

Five hundred companies from more than 20 countries, as well as 10,000 trade visitors, are at Hong Kong's Asian Aerospace show this week to strike deals that will shape the future of Asia's aviation industry.

And much of it seems to be focused on China. One of the mainland's big three carriers is already celebrating a $1bn deal with Singapore Airlines inked earlier in the week.

It will bring finance and know-how to China Eastern Airlines, which is based in Shanghai. It also shows the direction the industry's big players are looking.

According to Vincent Liu, the manager of service standards at China Eastern, there is increasing demand for travel within China and more foreigners are flocking to the mainland.

It means the airline business is "increasing vastly, especially for China Eastern", he says.

One of the supporting organisers of this year's Asian Aerospace is also keeping a keen eye on the mainland.

Martin J Craigs, president of Aerospace Forum Asia, says: "The centre of gravity has moved north over the last 20 years.

"China is a big market that's growing - 180 million passengers right now and 780 million in 20 years. That's a new aircraft delivered every two-and-a-half days for 20 years."

Eastern gateway

But the market is not without risks. Already the Chinese government is placing limits on the number of flights over the mainland, because of fears that too much demand could overwhelm the existing infrastructure.

That is perhaps partly why Asia's biggest airshow has chosen to move to the relatively new surroundings of Hong Kong's international airport, after having spent nearly two decades in Singapore.

Tony Tyler - the newly-installed chief executive of Hong Kong's biggest airline, Cathay Pacific - is trying to turn Hong Kong into a stronger hub and gateway to China.

Cathay Pacific notice board
Cathay Pacific has been extending its routes in mainland China

He contends there are still challenges to rival Shanghai, which is quickly becoming a vital business destination.

"Shanghai's a huge city, it's clearly going to be a major city," he says.

"But as an aviation hub, it has disadvantages, as the domestic and international operations operate out of essentially two different airports. That prevents it from being an effective hub for mainland China."

Still, many of the plane manufacturers and suppliers who have come from countries as far afield as Romania and Canada have one thing on their minds - courting China.

Hong Kong, in its role as gateway to the world's fastest-growing economy, may provide an essential link now.

But critics predict that the Asian Aerospace show may well move again, to Beijing or possibly even Shanghai.

First outing for faster Eurostar

Eurostar is making its inaugural journey from Paris to London via Britain's new high-speed line.

The train - carrying members of the media - will arrive at St Pancras International station, instead of Waterloo, for the first time.

The 186mph (300km/h) line is expected to cut journey times from Paris to London by 20 minutes to 2hr 15min. It will open to the public on 14 November.

Construction of the line and revamping St Pancras cost £5.8bn in public funds.

The high cost of the project is partly due to some major engineering challenges, including laying track to pass over the River Medway, under the River Thames and through 11 miles of tunnels beneath London.

PROJECTED JURNEYIMES
London-Paris 2 hrs 15 mins
London-Brussels 1hr 51 mins
London-Lille 1hr 20 mins



The 306-mile (490km) test-run is expected to set a new record for the journey time between Paris and London.

The train was due to leave Paris at 0944 BST and is expected to reach speeds of up to 186mph - 50% faster than domestic rail services.

It will join the new 68-mile (110km) line, known as High Speed 1, at the Channel Tunnel near Folkestone, before arriving at St Pancras at about midday.

The train will pass through the new £100m Ebbsfleet International station near Dartford, in Kent.

Seven services to Paris and five to Brussels will start running from Ebbsfleet from 19 November and a ticket office has been opened at Bluewater Shopping Centre two miles from the station.

It's as quick and more frequent and we will be matching airline prices
Richard Brown
Eurostar chief executive

Trains have always travelled along the French section of the route at high speeds, but were forced to slow down on the British side because they shared a track with commuter services in and out of London.

Richard Brown, chief executive of Eurostar, said he hoped that by 2010 10m people would travel by Eurostar each year.

"Today marks Britain's entry into the European high-speed rail club," he added.

"We can now run trains at high speed all the way from the Channel Tunnel to London, making journeys between cities quicker, more convenient and far greener than flying."

He said journey times to Paris, even for people travelling from Yorkshire, would be broadly the same as for those flying due to lengthier check-in times at airports.

"It's as quick and more frequent... and we will be matching airline prices."

Nigel Harris, managing editor of Rail Magazine, said he was thrilled to be among the first passengers to travel on the new high-speed line.

St Pancras International
Trains will run from the new St Pancras from November

He said it would mean hundreds of thousands of people from the North would be able to travel to Paris without facing the drag of travelling across London on bus, Tube or train to get to Waterloo.

London and Continental Railways (LCR), the company behind the construction of the new line, said it was the first new railway for 100 years and Britain's largest single construction in history.

A spokesman for LCR said it would be a "very powerful catalyst" for regeneration.

He said LCR had a commitment to repay some of the £5.8bn in government money from profits generated from large areas of land bought around the track.

St Pancras station, which has undergone an £800m refurbishment, will eventually be linked to the site of the 2012 Olympics at Stratford, east London. (BBC News)

Virgin's Branson To Shun Thirsty 4-Engined Planes

Virgin Group boss Richard Branson said he would aim to avoid buying fuel-thirsty four-engined planes in future to curb fuel costs and the environmental impact of his fast-growing airlines.

Fears that CO2 emissions from airlines are fueling climate change will not reduce demand for air travel, he added, but innovation in biofuels could provide a solution in the next decade.

Virgin Atlantic's fleet of 38 planes all have four engines, and it has six four-engined Airbus A380 superjumbos on order.

But in April the airline said it was buying 15 of Boeing's new fuel-efficient carbon-composite 787 jets with two engines, which burn 27 percent less fuel than the Airbus A340s they will replace.

"Global warming has become a priority, but it also makes good economic sense to be eco-friendly," Branson told reporters, adding he favored two-engined jets for the future. "We've just announced the 787, which has two engines."

In the past Branson favored four-engined planes because he said passengers, staff and pilots preferred them.

But aviation's impact on the environment has become a hot topic in Britain this summer, with climate change protesters camping at London's Heathrow Airport to protest against the industry's rapid expansion.

From 3 percent of mankind's total contribution to global warming in 2005, aviation's emissions are set to rise by a factor of two to five by 2050, the UN's Intergovernmental Panel on Climate Change (IPCC) said in a major report this year.

Branson, who was in London to promote the PICNIC environmental innovation competition, doubted travelers would be deterred by the figures and called on politicians to act.

"Realistically, flying is something people need to do and will do," he said. "I don't think people will change their habits if it affects their lifestyle."

"It's up to business leaders and politicians to come up with ways of reducing emissions," he added. "I suspect governments should make sure fuel prices don't drop."

Virgin is developing biofuels for aircraft alongside Boeing and engine-maker GE Aviation and plans to test them next year.

"We've said we will fly a jet engine on a 747 using biofuels sometime next year, people say the end of next year," said Branson. "But I believe we'll be able to bring that forward. We have to make sure it's economically viable to roll out across the Virgin fleet."

"Hopefully, ten years from now our planes can be carbon neutral," he added. "It's not just charitable. We've got to come up with a fuel that knocks oil for six."

Branson has pledged that for the next 10 years all profits from his 51 percent stakes in Virgin Atlantic and Virgin Trains will be invested in renewable energy.

"I've got a dirty business with my planes... Let's put some money into doing something about it," he said.

Branson also holds smaller stakes in Australian airline Virgin Blue, Malaysia's AirAsia X, US low-cost airline Virgin America and Virgin Nigeria. (Reuters)

Airbus Sees Booming Chinese Jet Demand

European plane-maker Airbus expects Chinese airlines will need up to 150 of its jets a year over the next five years, including its giant A380s, as Chinese carriers expand to serve a domestic and international travel boom.

Airbus foresees local carriers needing 113 of its A380s -- the world's largest passenger aircraft -- over the next two decades.

Asia and China are a pivotal battleground between Airbus and Boeing, both of whom are battling to sell airliners to the country's three top carriers: China Southern, China Eastern and Air China.

"Over the next year we will see incremental orders from China for A380," John Leahy, chief operating officer, customers, told reporters on the first day of the Asian Aerospace forum.

"The demand in the Chinese market will see, for us, around 100-150 aircraft each year for the foreseeable future (of around 5 years), which is one of the reasons that we decided to put our own assembly line in China."

Travel to and from China, the world's fourth-largest economy, is expected to continue climbing alongside its double-digit economic growth, dwindling restrictions and increasingly open skies.

Morgan Stanley estimates that global airline seat capacity will expand 3.8 percent in 2007 and 5.2 percent in 2008 -- driven largely by Asia. For Asia alone, those estimates rise to 8-9 percent for 2008-09, versus 5 percent in 2007.

Leahy did not say how Airbus had arrived at its forecasts.

Airbus, which this year is edging out Boeing in the annual race to sell planes globally after losing in 2006, expects its first assembled-in-China jet to be delivered in 2009. The assembly line in Tianjin should hit full capacity -- four planes a month -- in 2011, Leahy said.

China Southern Air, the country's largest carrier by fleet size, has placed five orders for the A380, on which Airbus has spent more than USD$10 billion developing. (Reuters)

Banyan Tree to operate first resort in Bodrum

Banyan Tree enters the Turkish market with the signing of a new management contract in Turkey. This follows on earlier announcements in the year on management deals in China and Mexico and furthers Banyan Tree’s continued expansion into new destinations around the world.


“This project exemplifies Banyan Tree’s ability to continually lead the markets by tapping into what we see as Bodrum’s yet unrealized potential as a high-end resort and vacation home ownership destination. Banyan Tree Bodrum is another key step in the Group’s diversification into key regions globally,” said Executive Chairman, Mr Ho Kwon Ping.

In its first foray into Turkey, Banyan Tree will manage a boutique resort and residential development located in the northern coast of the Bodrum peninsula. Developed by Osmanli Yapi 1 Insaat Turizm Sanayi ve Tic. A.S., a subsidiary of the London listed Ottoman Fund, the resort will also include a 4,000 square meter spa facility featuring Banyan Tree’s spa treatments.

These new developments are not expected to have any material financial impact on the Group’s earnings and its net tangible assets for 2007.

Rania Deimezi - Tuesday, September 04, 2007

W Hotels to open first property in Indonesia

W Hotels will open its first property in Indonesia in 2009 as Starwood Hotels & Resorts Worldwide revealed. W Retreat & Spa-Bali will be the brand`s fourth retreat in the world, following the W Retreat & Spa-Maldives, which opened in September 2006, and the impending openings of W Retreat & Spa-Vieques, scheduled to open in late 2008, and W Retreat & Residences-Koh Samui, scheduled to open in 2009.

The newly built W Retreat & Spa-Bali will be located in the Seminyak area on the paradise isle of Bali, featuring 232 rooms, including 80 villas.

"Following the success of our first W Retreat & Spa, the award-winning W Maldives, W Retreat & Spa-Bali is a terrific extension of our brand`s growth in the Asia Pacific region," said Ross Klein, President, Starwood`s Luxury Brands Group. "The rich and deeply spiritual culture of Bali, combined with the cosmopolitan style and energy of Seminyak, provides a perfect setting for the newest edition to our Retreat & Spa product offering. With the announcement of W Retreat & Spa-Bali, the W brand continues to extend beyond the boundaries of everyday travel, offering a magical mix of sexy destinations and sublime design."

"We are thrilled with the signing of W Retreat & Spa-Bali, marking the entry of the W brand into Bali, undeniably one of the top-rated resort destinations in the world," said Miguel Ko, President, Starwood Hotels & Resorts, Asia Pacific.

"The W Retreat & Spa - Bali will be a unique alternative to the more traditional Bali resorts. Located on a seven hectare absolute beachfront site in Seminyak, the resort will be within walking distance to Bali`s most trendy boutiques, galleries, restaurants and clubs. This addition of this retreat, coupled with The Luxury Collection, Le Meridien and Westin properties will certainly strengthen our presence in Bali," added Ko.

"We are thrilled that we will open W Retreat & Spa- Bali, the first W resort in Indonesia, and to start our partnership with Starwood Hotels & Resorts," said Magda Hutagalung, President Director of PT Dua Cahaya Anugrah. "Given the energy and style of the island, Bali, known as the most popular island destinations in the world, is certainly the most appropriate fit for the W brand," added Magda.

Fiona Jeffery appointed Chairman of WTM

Fiona Jeffery, Managing Director of World Travel Market, part of Reed Travel Exhibitions (RTE), has been appointed to the role of Chairman. She will be concentrating on the event’s strategic development, as well as building and developing Just a Drop and WTM’s World Responsible Tourism Day. Jeffery continues to report to Richard Mortimore, Managing Director of Reed Travel Exhibitions.


The day to day running of the global business event in London is to be undertaken by Craig Moyes, recently appointed Exhibition Director. He has spent 15 years in the exhibition industry, including experience in travel and tourism sectors.

In announcing the management changes, Richard Mortimore, Managing Director of RTE said: “Many congratulations to Fiona, who has been responsible for driving and developing the World Travel Market brand for 20 years. Her contribution to the evolvement and growth of the event has been exemplary. Craig Moyes appointment means that she will have more time to concentrate on key aspects of the business, including the development of partnerships. She will also continue her role as spokesperson for World Travel Market.”

Jeffery was instrumental in helping take these issues up the industry agenda. She has also increased the internationalism of World Travel Market and ensured its leading role as a major global business forum for the travel and tourism industry.

She founded Just a Drop on behalf of the international industry nine years ago, highlighting the importance of clean water, particularly for children under the age of five whose immune systems are unable to cope with dirty water. The charity, of which she is Chairman, has raised nearly $1.6m and helped over 800,000 children and their families living mostly in remote areas in 24 countries.

Moyes says he is looking forward to the new challenges of World Travel Market. He added: “There is no other business event on earth like World Travel Market and I feel privileged and delighted to be involved”.

In 1993, Moyes and his business partner successfully launched China International Boat Show in Shanghai, managing the event until 1996.

Michael Verikios - Monday, September 03, 2007

Kuoni concludes acquisition of Russia-based UTE Megapolus Group



Following approval of the transaction by the Russian competition authorities, Kuoni Travel Holding Ltd. formally acquired a majority shareholding in Russia-based tour operator UTE Megapolus. Kuoni has acquired 80% of share capital under the transaction; the remaining 20% remain in the possession of the company’s founding shareholders.

UTE Megapolus specialises in providing high-quality leisure travel products for a more affluent clientele. Its product portfolio includes ski vacations in the Alpine region, beach holidays in Greece and Croatia, and India and China travel itineraries. The Moscow-based company has four sales outlets in the capital and one in Nizhny Novgorod, and generated total turnover of CHF 51 million last year with a workforce of around 200 personnel.

“I am delighted that we have now received formal approval of our acquisition from the Russian competition authorities,” says Armin Meier, CEO of the Kuoni Group. “The Russian tour operating market has seen annual growth of 10 to 15 per cent in the last few years. And it has massive further potential, especially in the field of providing high-quality travel products for more affluent customers. Our acquisition also fits exactly into our strategy of achieving further business growth in expanding markets and the specialist segment.” UTE Megapolus has won several awards within the Russian leisure travel sector for its branding and the high quality of its services over the past few years. The company distributes its products via its own sales offices and through independent travel agencies.

Eduard Kuznetsov, the company’s founder and former majority shareholder, will remain as CEO. He will report to Fons Brusselmans, Head of Business Unit Spirit, within the Kuoni organisation. All the present UTE Megapolus employees will also be retained. The parties agreed not to divulge the purchase price involved.

Singapore attracts highest numbers of business visitors




In total, close to 25,000 foreign delegates, contributing at least £13 million (SGD 40 million) to Singapore’s total Tourism Receipts, visited Singapore to attend various business events including the 27th International Epilepsy Congress, Herbalife Asia Pacific Extravaganza 2007 and the World Glaucoma Congress 2007. The events encompassed all four segments of the MICE industry including Meetings, Incentive Travel, Conferences and Exhibitions.

“The high concentration of business events in the month of July reaffirms Singapore’s position as a premier destination for high-level intellectual exchange and networking opportunities. Our strategic location and extensive connectivity, professional MICE industry, excellent infrastructure and strong knowledge-based economy all combine to make Singapore an ideal destination for MICE event organisers and visitors from all over the world,” said Mr Aloysius Arlando, Assistant Chief Executive, Business Travel and MICE Group, Singapore Tourism Board (STB).

“Leveraging STB’s Strategic Cluster Approach*, we will continue to build on the momentum of working with Singapore Inc government agencies and private sector industry partners to create, develop and attract more business events which will provide the platform for intellectual exchange and collaboration thus adding impetus to drive Singapore’s key economic sectors.”

Business Travel and MICE is identified as one of the key drivers of tourism in Singapore, with visitor arrivals constituting approximately 28 per cent of total visitor arrivals and 35 per cent of total tourism receipts (TR) or £1.3 billion (SGD 4 billion) in 2006. The STB aims to raise the contribution of the BTMICE sector to £3.5 billion (SGD 10.5 billion) while maintaining its overall proportionate share of total TR.

The increase in business events taking place in Singapore follows the launch in 2006 of the “BE in Singapore or Business Events in Singapore” Incentive Scheme, a £56.6 million (SGD170 million) initiative by the Singapore Exhibition and Convention Bureau (SECB) to finance the development of high calibre business events to be staged in Singapore over next five years (2006-2010).

One of the first recipients of the scheme was Herbalife Asia Pacific Extravaganza 2007 (18 – 22 July), the largest corporate meeting that Singapore has ever hosted with close to 16,000 delegates from 14 countries.

The 27th International Epilepsy Congress (8 – 12 July) was one of the largest medical conventions in the world dedicated to epilepsy. It was jointly hosted by the Singapore Epilepsy Society (SEC) and the Singapore Epilepsy Foundation (SEF), and organised by the International League Against Epilepsy (ILAE) and the International Bureau for Epilepsy (IBE). Both ILAE and IBE are non-profit organisations with official links to the World Health Organization.

“Singapore is an ideal venue for international congresses as it’s easily accessible with a state-of-the-art telecommunications network and an excellent infrastructure. There are countless hotels to suit all budgets and cosmopolitan cuisine to suit all tastes thanks to its international makeup. It is a welcoming, clean, and above all, safe place, something that is of paramount importance to today’s international business traveller,” said Mr Richard Holmes, International Director of Meetings, ILAE and IBE.

The Congress brought together clinicians and researchers from different continents, facilitating the exchange of knowledge about this medical condition. Participants shared scientific and educational programmes that covered clinical updates and treatments. The programme also catered to clinicians who are non-epileptologists and allied health professionals who provide epilepsy care.

Amidst intensifying competition, Singapore is keenly aware of the need to continually re-invent itself to remain a relevant, compelling and appealing MICE destination. Mr Arlando said: “Singapore is moving beyond being merely an efficient and effective venue. We strive to be a catalyst for business success and an exchange capital of the world where people, technology and ideas converge to create value for both business events and visitors.”

With new developments such as the Marina Bay Sands Integrated Resort and the redevelopment of the Marina Bay area into a vibrant MICE hub that will offer up to 200,000 sqm of convention and exhibition space, as well as exciting and enriching leisure and entertainment options, the stage is set for the SECB to partner the industry to attract, create and grow even more strategic business events.

Theodore Koumelis - Monday, September 03, 2007

Revenues from ancillary services an underdeveloped area in Indian aviation market

76% of Full Service Carrier(FSC) passengers and just under 79% of Low Cost Carrier (LCC) passengers in the Indian domestic aviation market were extremely, perhaps surprisingly, prepared to pay for in-flight catering if traveling on an LCC according to a new survey by the Centre for Asia Pacific Aviation. Only 29% of FSC and 21% of LCC passengers expressed a willingness to pay for LCC in-flight entertainment.

In regard to accommodation services, less than 7% of surveyed FSC and LCC passengers had arranged accommodation using the airline’s website.

Nearly 63% of FSC buyers used a travel agent to arrange accommodation, virtually the same as LCC buyers (nearly 64%).

These responses would draw to the conclusion that non-ticket revenues represent a largely untapped revenue potential for Indian airlines. Furthermore, as retail opportunities definitely exist in the Indian aviation sector (see Part 4 of this survey), it is logical to assume that airlines could also look at in-flight sales as an additional source of ancillary revenue.

These areas of activity could forseeably play a role in returning some LCCs to profitability earlier than expected.

Vicky Karantzavelou - Monday, September 03, 2007

Aviation industry registers record traffic volumes

Year-on-year passenger demand was up 5.9% for July 2007 over July 2006 while passenger demand grew 6.2% during the January-July period over the same period in 2006 according to traffic results released by the International Air Transport Association (IATA) for July 2007 .


Other highlights are:

  • Much of this growth is facilitating economic development as business traffic is growing faster than economy traffic on long-haul routes.
  • The average passenger load factor hit a record 81% in July, up 0.3% from the previous high in July 2006.


  • With the exception of April 2007, monthly load factors have risen every month during the past two years.


  • The average load factor during January-July 2007 was 76.5%, up from 76% recorded during the same period in 2006.
  • Airlines in the Middle East continued the double-digit growth seen over the last three years with demand growth of 18.8% in July. Improved demand growth in Asia Pacific (5.5%) and Europe (4.5%), which together comprise almost two-thirds of total international traffic, boosted overall July results.
“Efficiency is the story of the summer. More people are travelling than ever before with airlines registering a monthly record of over 220 billion revenue passenger kilometres in July with record load factors. Combine that with a 10.5% improvement in fuel efficiency and a 56% increase in labour productivity since 2002 and it’s clear industry efficiencies have hit an all-time high,” said Giovanni Bisignani, Director General and CEO of IATA. “But there are risks. If the volatility in global stock markets begins to affect the wider economy, the spin-off effect could put a drag on demand. Airlines will have to maintain a prudent approach to adding new capacity.”

From 18 to 28 September the International Civil Aviation Organization (ICAO) will meet in Montreal. Aviation and the environment will be the number one issue discussed.

“Industry efficiency translates into improved environmental performance. Airlines contribute 2% of manmade C02. IATA’s vision is to do even better. We are targeting carbon neutral growth in the near term. And in the longer-term our goal is nothing less than to become carbon-free. The challenge for the 190 contracting States of ICAO is to deliver the global political leadership needed to bring this vision to reality,” said Bisignani.

Industry Registers Record Traffic Volumes, Load Factors in July

July 2007 vs July 2006 RPK Growth ASK Growth PLF
Africa 5.9% 6.1% 71.7
Asia/Pacific 5.5% 4.9% 78.5
Europe 4.5% 4.2% 82.1
Latin America 6.7% 8.2% 79.5
Middle East 18.8% 14.4% 80.2
North America 3.7% 4.2% 85.6
Industry 5.9% 5.5% 81.0

Jan-July 2007 vs Jan-July 2006 RPK Growth ASK Growth PLF
Africa 9.6% 7.6% 68.4
Asia/Pacific 6.1% 5.2% 75.0
Europe 4.9% 4.2% 77.2
Latin America 2.0% 2.6% 72.7
Middle East 16.8% 13.7% 75.3
North America 4.9% 4.8% 81.1
Industry 6.2% 5.5% 76.5

RPK: Revenue Passenger Kilometres measures actual passenger traffic ASK: Available Seat Kilometres measures available passenger capacity PLF: Passenger Load Factor is % of ASKs used. In comparison of 2007 to 2006, PLF indicates point differential between the periods compared.

Vicky Karantzavelou - Monday, September 03, 2007

September 01, 2007

Yemenia opts for global IT-services of Aviareps

Avianet, a wholly owned Aviareps’ subsidiary in the IT-sector is to handle Yemenia airline’s CRS connectivity in 17 locations worldwide. Under this contract, the acknowledged IT service provider sets up, supports and maintains Yemenia’s reservation system access via AVIANET’s global VPN network.

"The IT solution offered by Avianet is extremely cost effective and enables the customer to focus on his core business. Further clients such as Ethiopian Airlines, Air Madagascar and Air Namibia already rely on the professional IT-services of the company," said the company.

Yemenia is the official carrier of the state of Yemen. The airline, founded in 1961 under the name of Yemen Airways Company, initially served three domestic and two regional destinations with two air planes. Today, the fleet consists of nine modern Airbus and Boeing aircraft. Building on its good reputation in service and safety, Yemenia currently flies to 23 destinations in Asia, Africa and Europe.

Viva Macau expects high growth in traffic from Sydney to Macau

A significant growth in Australians traveling to the fast-growing Las Vegas of the East is expected following commencement of direct flights between Sydney and Macau launched by Viva Macau, Asia’s newest international low-fare airline.

At the “Welcome to Viva Macau” service launch commemoration held at Sydney International Airport, Viva Macau’s CEO, Con Korfiatis said that there has never been a better time for Australians to discover Macau particularly following the opening of the world’s largest integrated resort in Macau this week.

Korfiatis said, “The opening of Venetian Macao introduces an additional 3,000 suites, world class leisure and entertainment offerings, as well as the largest conference and exhibition facilities providing venues for international events in Macau, a vibrant city that has already attracted the world’s attention with its own charm of mixed culture.”

“We are the only airline that flies between Australia and Macau,” he added.

Korfiatis also announced a special promotion offering return ticket and three-night accommodation in a 72 square meter suite at the Venetian Macao.

At the event, Korfiatis was joined by the Honorable John Aquilina MP, Leader of the House, Parliament of New South Wales, Mr. Zhu Xiaochuan, Counselor of Consulate-General of the People`s Republic of China in Sydney, Mr. Liu Cheng, Director of China National Tourism Office in Sydney, Mr. Rod Gilmour, General Manager Corporate Affairs of Sydney Airport Corporation Limited, Mr. Marcus Gutierrez, Vice President of Casa de Macau.

Eng. Joao Manuel Costa Antunes, Director of Macau Government Tourist Office (MGTO), who also sent his representative, Ms. Helen Wong, General Manager of MGTO Sydney, to attend the event, said, “We are very happy to see Viva Macau flying to Australia, contributing this way to the diversification of our tourism markets, specially now when Macau enters a new era of the conference and exhibition facilities.”

Viva Macau flies three times a week between Sydney and Macau, operated by Boeing 767 wide-body aircraft with twin-class seating: Premium and Economy Class.

August 30, 2007

BAA Says No Airport Sale Plans

BAA, the owner of Britain's three biggest airports, is not planning to sell any airports and has not decided on any job cuts, the firm said on Thursday after a newspaper said it was planning 2,000 job cuts.

However, BAA, the airport unit of Spanish infrastructure and construction firm Ferrovial, said it was undertaking a review of back-office functions, which did not involve security or customer service staff at its airports.

"No conclusions have yet been reached, and the review is ongoing," BAA said.

The Times newspaper reported on Thursday that BAA, whose airports include London's Heathrow, Gatwick and Stansted, was looking to cut up to 2,000 jobs and may be preparing to sell one or more of its airports.

"Ferrovial have a huge debt burden, and they can't sustain that," The Times quoted a BAA source as saying. "They are really drilling down costs, and there is going to be a complete restructuring of the business, with a couple of thousand of jobs going. It cannot be the security staff, but every other element of the business is up for review."

Stephen Nelson, CEO of BAA, hit back on Thursday, calling the report exaggerated and misleading.

"No decisions have been taken around the loss of support jobs, and we do not recognize the specific number used by The Times," he said.

Ferrovial declined to comment on the matter on Thursday.

BAA has come under criticism for delays and ageing infrastructure at Heathrow and Gatwick. The British airport operator was bought by Ferrovial in a GBP10.1 billion pound (USD$20.4 billion), debt-fueled takeover last year. (Reuters)

Young management trainees run Gulf Air for a day

Young Bahraini management trainees will be given an opportunity of a lifetime by Gulf Air, allowing them to run the airline for a day. “The key ingredient for a successful organization is its people and these young Bahrainis are going to be the leaders who will fly Gulf Air into a promising future,” says Acting President and Chief Executive Bjorn Naf.

“Aviation is a very complex business and there is nothing better than letting them experience what it’s like being a CEO for a day for their national carrier so they can experience what its like to lead in such a challenging work environment,” says Mr. Naf, who devised the idea.

As part of the deal, young management trainees will spend a full day with the CEO of the company, including shadowing him at meetings with senior management and staff.

The move is part of Gulf Air’s commitment to providing a nurturing and supportive environment in which these individuals are recruited, trained and empowered to take up positions of leadership in the airline while fulfilling their personal aspirations.

The management trainees are part of Gulf Air’s 24-month Graduate Entry Management programme, which rotates young graduates through the business giving them an insight into complexity of the aviation industry. During this period, they are exposed and trained to acquire functional and management skills through performance management and formal training intervention. On completion, graduates are placed in junior management roles as the first step on a structured career track.

Norwegian to purchase great number of next-generation

42 new Boeing 737-800 airplanes have been ordered by Norwegian Air Shuttle ASA with Blended Winglets as the carrier revealed. The airplanes have a list price of USD 3.1 billion or just over NOK 18 billion. Parallel to this, Norwegian Air Shuttle ASA has ensured purchase rights for an additional 42 airplanes of the same model from Boeing. These cost-efficient airplanes with leading-edge technology are significantly more environment-friendly than the existing airfleet.

This is the largest order in Europe received by Boeing for the company’s 737 series thus far in 2007. The new airplanes will supplement the 11 Boeing 737-800 airplanes Norwegian ordered from Boeing in May this year. The Boeing 737-800 model is a next-generation airplane, with a reduction in fuel consumption up to 33 per cent and reduction in NOx up to 43 per cent, compared with the oldest airplanes in Norwegian’s current airplanes fleet. The 737-800 has 189 seats, while the current 737-300 has 148 seats.

“The new airplanes will strengthen Norwegian’s competitive position in the Norwegian, Nordic and European aviation markets. Also, the airplanes are significantly more environment-friendly than the ones we use today. These airplanes will reduce Norwegian’s CO2 emissions and bring down fuel costs, while noise levels are considerably lower than for other airplanes,” says Bjorn Kjos, CEO of Norwegian Air Shuttle ASA.

“We have explored different ways of financing, hereunder US ex-im financing of 85 per cent of the purchase price. These purchases will open up new opportunities, enabling us to fly longer distances and thus consider new, interesting routes,” says Bjorn Kjos, adding that the purchases will ensure greater flexibility when phasing out older airplanes and adapting to market trends.

The 42 airplanes will be delivered over a five-year period from 2009 through 2014, with around 10 airplanes each year. The company has entered into hedging agreements to cover a large part of the NOK/USD exposure in connection with the purchases.

August 29, 2007

Air China Open To Mergers With Rival Carriers

Air China, now the world's most valuable carrier, will consider the option of merging with other Chinese airlines, including China Southern Airlines, if the opportunity arises.

Air China is examining a possible restructuring of the sector as competition from foreign airlines and newly arisen local carriers is growing following the opening of China's civil aviation market, President Cai Jianjiang told reporters.

"Air China will not exclude the possibility of a group restructuring with sister companies, including China Southern," Cai said, responding to market speculation that the airline would merge with China Southern.

Beijing is restructuring state-owned companies and the number of central government-controlled firms will fall sharply in coming years as they adapt to market changes and fend off competition, he added.

Air China's rivals include Shanghai Airlines, Shenzhen Airlines and Hainan Airlines.

The airline reported late on Tuesday a more than three-fold surge in first-half net profit to CNY1.57 billion yuan on strong demand and an CNY868 million foreign exchange gain on the appreciation of the yuan during the reported period.

Shares of Air China fell 4 percent on Wednesday but have gained 98 percent this year, beating a 29 percent gain on the index of Chinese companies listed in Hong Kong in the same period.

According to an IATA electronic-ticketing implementation status report issued 13 August 2007, Singapore Airlines is ranked first outside of the US region, and third in the overall industry, in terms of interline e-ticketing implementation.

Singapore Airlines customers whose journeys involve connections with any of the Airline’s 84 airline e-ticketing partners require only a single interline electronic-ticket.

The Airline expects to implement interline e-ticketing facility with all STAR Alliance partner carriers by October 2007 and plans to conclude interline e-ticketing arrangements with all 155 interline partners by end of 2007.

Mr Huang Cheng Eng, Singapore Airlines Executive Vice-President, Marketing and the Regions said, “Singapore Airlines is a front-runner in adopting technology in our business model, and we have embraced e-ticketing as a means to simplify air travel for our customers.”

“With more than 95 percent of our interline traffic enabled on the e-ticketing platform, customers can now enjoy the convenience of using just one interline e-ticket to connect from our flights to our partner carriers.”

With e-tickets, travel itinerary and passenger information are maintained electronically in the airlines’ reservations systems. As a result, any amendments to bookings can be made easily and customers do not have to worry about misplaced paper tickets.

The Airline targets complete issuing of e-tickets by end-2007; ahead of the IATA guideline of end-May 2008. Currently, e-tickets make up more than 90 per cent of Singapore Airlines tickets issued in countries such as Singapore, Australia, Hong Kong, Philippines, Indonesia, Thailand and the UK.

The interline e-ticket arrangement is available online at Singapore Airlines` website and at all Singapore Airlines sales offices in cities where e-ticketing is available. They are also available at selected travel agencies.

Singapore aims for new record in visitor numbers

Officials from the Singapore Tourism Board (STB) and Singapore Airlines (SIA) have revealed their plans to build on the impressive number of Middle East tourists visiting the South East Asian nation. The region has made an important contribution to Singapore’s record-breaking tourism performance so far in 2007, with 4.9 million visitor arrivals recorded from January to June. Total visitor arrivals from the Middle East have grown 23 percent year-on-year, with key markets like the UAE, Saudi Arabia, Qatar and Kuwait all showing high double-digit growth.

Plans are in place to continue this strong performance throughout 2007 and into 2008, with a particular focus on attracting visitors to cultural and religious festivals like Hari Raya Puasa or Hari Raya Aidilfitri, which celebrates the end of Ramadan.

Other upcoming highlights include the inaugural flight of the double-decker A380, the world`s largest passenger plane, on October 25 this year. Singapore is hoping to attract Middle East-based aviation enthusiasts to be among the ‘first to fly’ the pioneering aircraft.

An online auction for seats on the first commercial flight of the super jumbo Airbus A380, between Singapore and Sydney, started this week, with proceeds going to a number of charities. “We have a packed series of events lined up for 2007 and 2008, and our research demonstrates how receptive Middle East travellers are to the message that Singapore has something to offer for everyone,” said Siew-Kheng Kang, Regional Director, South Asia, Middle East & Africa, Singapore Tourism Board.

“The Middle East region is a priority market for Singapore, particularly given our deepening bonds with countries in this area,” she added.

Research carried out for Singapore by global agency Millward Brown shows that Singapore – along with Malaysia, India and Dubai – is the in the top four destinations for Middle East residents considering future travel options.

The study, which surveyed over 400 residents in the region, revealed that a key perception of the destination was that it had “strong word of mouth” and a good variety of attractions. “One of the main reasons why Singapore is very popular among Middle East travellers is because the city offers an unforgettable experience to every type of visitor, whether they come as a family, with friends, or on business,” Kang added.

Singapore is also planning ahead to 2008 for the first F1 Singapore Grand Prix, which will bring thousands of motor-sport enthusiasts to the Lion City. It will be the first night race on the F1 circuit. The date of the first F1 Singapore Grand Prix has been set for 28 September 2008.

Qantas introduces bigger planes and more services to the West

Qantas would move to an all wide-body, twin-aisle aircraft on all of its services from Perth to Sydney and Melbourne within the next two years as the carrier announced. Qantas Executive General Manager John Borghetti said the move, which would see Airbus A330 and Boeing 767 aircraft exclusively used on these services, would provide more than 61,000 seats - an increase of more than 11,700 seats on these routes.


"This decision is a sign of our commitment to Western Australia, which is one of the biggest growth markets in Australia," Mr Borghetti said.

"We believe our all wide-body service on these key trans-continental business routes will ensure Qantas is offering the capacity, frequency, and comfort appropriate for the market," he said.

Mr Borghetti said Qantas was equally committed to intrastate markets, with 5,000 additional seats coming on line by June 2008.

"In the year ahead, we will continue to grow capacity within the state, operating larger aircraft and increasing frequencies," Mr Borghetti said.

He said that from June 2008, Qantas and QantasLink would add:

  • five additional B737 services a week between Perth and Karratha;
  • five new B737 services a week between Perth and Port Hedland, replacing the current B717 services;
  • three additional B717 services a week between Perth and Broome;
  • two additional B717 services a week between Perth and Newman.
"This follows our announcement earlier in the year about new QantasLink services between Perth and Karratha, Kalgoorlie and Broome, all of which commence in November 2007. Together these new services will take the total number of seats on our intrastate WA services to 34,380 seats a week."

Mr Borghetti said Qantas was also making changes to its international services out of Perth.

"We will introduce Airbus A330 services between Perth and Hong Kong from January 2008, replacing the current B767s operating on the route and providing customers with Skybed in Business Class and our Audio Visual on Demand (AVOD) inflight entertainment system in both Business and Economy class cabins," he said.

Mr Borghetti said the international B767 fleet currently operating these services would be deployed on domestic Perth services.

He said Qantas` $50 million development at Perth Airport, announced last week, would improve the airport experience for Qantas passengers as the airline continued to grow its Western Australia services.

"The airport development, which will commence by the end of 2007, will be a two year project and ensure we have better facilities for passengers, aircraft and baggage for our current operations as well as meeting the growth demand of the future."

In Western Australia, The Qantas Group currently operates: 47 return services per week to Melbourne, 37 return services per week to Sydney from Perth; seven return Perth-Melbourne (Avalon) services operated by Jetstar, and 109 return services weekly to Karratha, Port Hedland, Paraburdoo, Newman, Broome and Kalgoorlie by QantasLink and Qantas.

Airline executives predict more fees for services

Today’s consumers might be reminded of inflight turbulence when contemplating the fees they might be asked to pay in the future for assigned seats, checked baggage, and paying by credit card. Most airlines currently don’t charge extra for these benefits. But survey results by IdeaWorks suggest airline executives will charge for these, and other services, in the future. While frequent travelers may consider extra fees a major annoyance, airline executives call these fees ancillary revenue.

How far has this practice spread among airlines? What new fees are airline executives planning for the future? To answer these questions, IdeaWorks surveyed airline executives all over the globe. Here is a sampling of observations from the analysis:

  • 63% of airline executives predict unbundling (charging for amenities) is becoming more prevalent.

  • 39% indicate their airlines now sell meals and sandwiches on board aircraft.

  • 80% indicate fees are currently charged for call center bookings or are anticipated to be charged in the future.
Buckle Your Seat Belts - Airline Executives Predict More Fees and Plan to Sell More Services via Their Web Sites was released as a 8-page Industry Analysis.

Click here to view the report.

Egypt to place more regions on its tourism map

Known for being candid about issues tackling tourism, Egypt`s Tourism Minister Zuhair Garranah, has expressed concern about Taba and Nuweiba- two Sinai Peninsula tourist regions with a potentially high levels of tourism levels.

Garranah has given the Egyptian Tourism Federation (ETF) full responsibility for compiling a full Strategic Market Planning Report in order to turn the two areas into Economic or Investment Regions, which are expected to boost the nation`s tourism income.

Following this, ETF Chairman Ahmed El-Nahas, Board Member Alaa Hafez, Director General Ayman Altaranissi, and Chairman`s Executive Consultant Ahmed Yousri, met with Dr. Samir Makari, Economic Consultant to the ETF, to highlight main focal points in order to post the Strategic Market Planning Report within the coming weeks.

Makari had compiled a similar such economic report in 2005. Highly successful, it was presented to the General Authority for Investment and Free Zones (GAFI), headed by Minster of Investment Dr. Mahmoud Mohieldin.

August 28, 2007

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