September 24, 2007

Etihad set to begin Brisbane flights

Dubai: Etihad Airways, the UAE's national carrier, will launch services to Brisbane, its second destination in Australia.

Etihad is to increase its flying programme from Australia following the success of its Sydney service, the carrier said.

The airline will move in March 2008 from seven flights to 11 a week from Sydney to Abu Dhabi. The rise in flight frequency is a result of Etihad's Sydney service performing well since its launch in March.

More than 40,000 passengers have flown on the Sydney-Abu Dhabi route with a 68 per cent seat factor in economy, 85 per cent in business and 78 per cent in first class.

James Hogan, Etihad Airways chief executive, said: "Sydney has been Etihad's most successful launch since the airline began in 2003, which has resulted in us expanding our Australian operation with the launch of Brisbane at the end of September and the increase of our Sydney services next year."

The airline carried more than 1.9 million passengers in the first six months of 2007, compared to 900,000 for the same period in 2006, an increase of 111 per cent.

Positive contribution

Average seat factors of 65 per cent were experienced for the January to June period throughout the airline's global network.

Sydney Airport CEO Russell Balding congratulated Etihad on the additional services. "Since it commenced flying to Sydney Airport, Etihad has proven to be popular with passengers. Etihad has made a positive contribution to the development of the Australian aviation market. The extra flights confirm Sydney Airport as the national gateway and emphasise again the importance of Sydney Airport to the economic performance of Sydney and NSW.

"The success of Etihad, and its commitment to build its presence in Sydney, is very good news for the tourism industry and for the increasing number of Australians who want to travel internationally."

Thai Air boss slates Don Muang proposal

Proposals to reinstate Bangkok's former Don Muang Airport as an international airport have been criticised by the president of Thai Airways, Apinan Sumanaserani.

Caption: Thai Airways boss rejects proposals to reinstate Don Muang airport for international flights

Don Muang has been used only for domestic services in Thailand since the opening of Suvarnabhumi International Airport in 2006, but the popularity of Suvarnabhumi has encouraged Thai authorities to consider reinstating Don Muang as an international airport to ease congestion.

Projections suggest that passenger numbers will soon reach 45 million a year at Suvarnabhumi, but Apinan says the airport is busy during heavy traffic only and could easily cater to some 60-70 million passengers annually without problems.

He claims the number of passengers using Suvarnabhumi would not change if Don Muang was redesignated as an international airport, and passengers and airlines would face additional costs and complexities to support transfers between the two airports.

Volunteers test out Heathrow T5

Heathrow Airport is calling for 15,000 volunteers to help test facilities at Terminal 5 ahead of its opening next March. Airport operator BAA has arranged six months of tests to ensure the terminal runs smoothly when it opens. A free lunch and goodie bag are on offer to those who take part in the six-and-a-half-hour dress rehearsals, which begin today (Monday).

Caption: Construction workers handed control of the building to BAA and British Airways (BA) last week

BAA says the trials have been designed in light of the lessons learned from the security and baggage delays faced by passengers at other terminals over the past few months. A spokeswoman said: "We've been learning from the experience over the summer. We want to make sure the terminal is safe, secure and runs like clockwork before we open, and we need volunteers to help us do that."

The first four weeks, which according to the website are booked up, involve groups of 30 to 100 people being marshalled through the airport. But leading up to the building's opening, BAA will be looking for groups of up to 2,250 people to try out the facilities as if they were operating live. Each participant will be allocated an imaginary flight and then required to act out their particular passenger role.

Earlier this week, BA chief executive Willie Walsh said: "Terminal 5 is a fantastic opportunity for British Airways and will transform our operations, with less queuing, faster baggage systems and better punctuality."

Storm in a foot wash

Airport officials in Indianapolis are at the eye of a storm about the provision of washing facilities for Muslim taxi drivers in a new terminal's design. The foot sinks would be used for cleansing before daily prayers, which take place up to five times a day, but some local residents, led by a Baptist minister are objecting to the provision of such facilities on public property.

The special floor level foot sinks cost less than US$600 each and would be funded from airline revenues. They were specified because they are far easier to use for foot washing than conventional sinks, solve a potential safety hazard from wet floors and help to make the restrooms more sanitary.

Special floor-level sinks that would make it easier for Muslims to wash their feet before prayer are part of the current plans for restrooms that would serve taxi drivers in a new airport terminal due for completion next year.

Local Baptist pastor Rev. Jerry Hillenburg, who lost a son in Iraq two years ago, says he doubts whether the authority would ever install a baptistery or basins for holy water.

"I don't hate Muslims. I don't hate people who follow Islam, but I am at odds with anyone who threatens America and its citizenry, and I am at odds with anyone, period, who wants to destroy Christianity," he adds.




Beijing set for prayers

Beijing’s mighty new Terminal 3 building, which is due to open in January, will be the first in mainland China to feature prayer rooms for passengers. The prayer rooms are one of a wide range of customer services unveiled by Beijing Capital International Airport, to promote its ‘people-first’ aims for the terminal.

Besides rest rooms for mothers and infants, changing rooms, smoking rooms, first-aid rooms fitted with automated external defibrillators and the latest barrier-free security equipment, the airport will provide two prayer rooms for passengers who feel the need to pray before their flight.

The prayer rooms are located at T3B and T3C and will feature carpets, chairs and a supply of holy water.

Woman with fake bomb arrested at Logan International

BOSTON — A Massachusetts Institute of Technology student with a fake bomb strapped to her chest was arrested at gunpoint on Friday at Logan International Airport. Star Simpson, a sophomore from Hawaii, had a computer circuit board, wiring and a plastic-explosive-like substance in plain view on the front of her sweatshirt. A full-scale security operation was undertaken, revealing that the substance was in fact Play-Doh. The arrest took place at about 8 am outside Terminal C, home to United Airlines, Jet Blue and other carriers.

A Massachusetts Port Authority staffer manning an information booth in the terminal became suspicious when Simpson, wearing the device, approached to ask about an incoming flight. Simpson then walked outside, and the information booth attendant notified a nearby trooper. The trooper, joined by others with submachine guns, confronted her at a traffic island in front of the terminal.

State Police major Scott Pare, the commanding officer at the airport, said authorities had not determined a motive. Simpson was charged with disturbing the peace and possessing a hoax device. Later the student told security officials that her outfit was an art project meant to entertain career-day visitors at MIT.

"She's extremely lucky she followed police commands or deadly force would have been used," said Pare.

SITA wins third Abu Dhabi commission

SITA has been chosen to provide the check-in and baggage reconciliation system at Abu Dhabi International Airport’s new Terminal 3. The company’s equipment is already in use at the airport’s Terminals 1 and 2.

Georges Hannouche, CEO, data processing systems, Abu Dhabi, says, “We look forward to working again with SITA to complete this exciting project that will enable passengers, airport management, airlines and other partners using Terminal 3 to enjoy the benefits of the highest international standards in IT and communications infrastructure.”

SITA will install and maintain its AirportConnect CUTE (Common Use Terminal Equipment) check-in service, Baggage Reconciliation System (BRS) and Departure Control System as part of the Special Airport Systems’ package that DPS will be providing to Terminal 3, as a subcontractor to the Murray Roberts/Al Habtoor joint venture.

SITA’s AirportConnect CUTE platform, based on industry standards, will operate on 75 workstations based in Terminal 3. The shared common use check-in platform will enable every desk in the new terminal to be connected to each airline’s departure control system, helping to maximise the use of the airport’s resources.

Hani El-Assaad, SITA regional vice-president, Middle East and Turkey, says: “We are delighted to be working again with DPS on this project at Abu Dhabi International Airport and to be contributing to the development of the UAE’s transport infrastructure. We look forward to supporting Abu Dhabi International Airport in its goal of offering travellers a state-of-the-art facility that will simplify and speed up their journey.”

Maharashtra plans seven regional airports

Maharashtra’s state government is inviting proposals for the development of seven regional airports in the state and the establishment of an international airport in Pune.

The Maharashtra Industrial Development Corporation (MIDC) wants companies to present proposals for developing regional airports in Latur, Baramati, Yavatmal, Nanded, Osmanabad, Kolhapur and Amaravati.

Tender documents posted on the state government’s website call for an expression of interest from consultants to conduct the techno-economic feasibility study for the projects.

While all seven of the regional airports are operational, most are restricted to flights of government aircraft.

Cochin airport issues TV tender

Cochin International Airport (CIAL) authorities in Mumbai, India, are inviting applications from television broadcasters to display channels at 10 different locations in the airport's passenger terminals. Tender documents are available from CIAL, and cost around US$6.50 (Rupees 260).

China Eastern Shares Jolted By Bidding War Talk

Cathay Pacific Airways is set to address on Monday mounting speculation it is teaming up with Air China to buy shares in China Eastern Airlines.

Analysts and media say Cathay and Air China hope to scupper Singapore Airlines' and parent Temasek's acquisition of a near-USD$1 billion stake in China Eastern.

"China Eastern hasn't received any proposal from Cathay Pacific to date," the carrier's executive director, Luo Zhuping said.

A Cathay spokeswoman said the firm would make a statement after Monday's market close, but declined to comment on newspaper reports about a possible investment in Shanghai-based Eastern.

Cathay's CEO Anthony Tyler said he would not comment on the reports.

China Eastern has gained more than 50 percent in the past week, climbing alongside its peers as rumors flew about an impending consolidation or overhaul of the ailing Chinese aviation sector, in the run-up to an important Communist Party Congress in mid-October.

"Chinese carriers are under pressure amid a rapid open-sky policy taken by the authorities, and investors can help them speed up reform and improve standards," said an analyst at a European bank.

Speculation has ranged from a potential bidding war between the Cathay and SIA camps or a government-sanctioned takeover of China Eastern, to a mere share- and asset-swap between Air China and Cathay that would not involve China Eastern.

Air China owns 10.14 percent of Cathay, which in turn holds 17.3 percent of Air China. Shares in Cathay, which helmed an acquisition of mainland-focused DragonAir last year to gain access to the Chinese market, have risen 12.4 percent over the past week.

Analysts said a stake purchase could benefit Cathay by blocking SIA from grabbing market share on lucrative routes across the world's fourth-largest economy.

Foreign companies can have a combined maximum of 49 percent of a Chinese airline firm, while a single foreign company can have no more than 25 percent, according to government policy.

Air travel is booming in China, fueled by double-digit economic growth, growing international tourist and business travel and Beijing's hosting of next year's Olympic Games.

Cathay was looking to invest in China Eastern, the UK's Daily Telegraph reported without specifics. The Asian Wall Street Journal reported similar.

"Cathay has been overlooked by the market but has a role in the consolidation end-game," Cazenove said in a research note.

"What Cathay can offer is very similar to what Singapore Airlines can offer," said an analyst at another European bank.

Singapore Airlines and Temasek proposed this year to buy a combined 24 percent of China Eastern for USD$918 million to tap a booming air travel market. The deal awaits shareholder and regulatory approval.

"We're not commenting on speculation," said Stephen Forshaw, spokesperson of Singapore Airlines. (Reuters)

Record Business Jet Deliveries Forecast

Deliveries of business jets could hit an all-time high this year as strong corporate demand offsets concern about rising fuel costs, according to the industry's most closely watched forecast.

Overall deliveries of more than 1,000 business jets are expected this year, up from the previous record of 861 in 2006, according to the forecast by Honeywell International, based on interviews with corporate buyers.

Honeywell expects more than 1,300 new business jet deliveries in 2008.

The sharp rise in deliveries reflects a surge in sales for business jet makers over the past three years, benefiting companies such as Gulfstream, Cessna, Canada's Bombardier and France's Dassault Aviation.

"Order intake across most business jet categories remains very strong, with little discernable effect from recent stock market fluctuations and with backlogs exceeding two and one half years worth of deliveries, 2008 will likely be another banner year for the industry," Rob Wilson, head of business and general aviation at Honeywell's aerospace unit, said in a statement.

Honeywell is one of the main sellers of cockpit electronics, engines and power units to the business jet market.

Its forecast is derived from interviews with 1,400 flight departments at companies around the world, mixed with information from plane makers and an assessment of general economic conditions.

(Reuters)

Oman Air To Rent Six Boeing 787s

Oman Air, the country's national carrier, agreed in principle to rent six Boeing 787 aircraft for 12 years, Kuwaiti aircraft lessor Aviation Lease and Finance Co (Alafco) said on Sunday.

The first plane will be delivered in 2012, Alafco said in a statement, without giving a value for the agreement.

Alafco last month lost a USD$3 billion initial contract to sell state-owned Kuwait Airways 19 Airbus and Boeing passenger planes because the Kuwait government refused to approve the spending. (Reuters)

IATA signs agreement with Nigeria to open first office in Lagos

The International Air Transport Association (IATA) signed a Memorandum of Understanding (MOU) with the Government of Nigeria to facilitate the opening of the Association’s first office in the nation’s largest city, Lagos. The MOU was signed in Montreal, Canada on 20 September 2007 by Giovanni Bisignani, IATA’s Director General and CEO and the Honourable Diezani Alison Madueke, Nigeria’s Minister of Transportation. Both were attending the 36th Assembly of the International Civil Aviation Organization (ICAO).

The Nigeria office is targeted to open by the end of 2007 and will assist IATA’s Africa Regional Office (Johannesburg) in delivering IATA’s programmes throughout the six English-speaking countries of West Africa: Nigeria, Ghana, Sierra-Leone, Gambia, Liberia and Cape Verde.

“This MoU is an important step in the development of civil aviation in West Africa, particularly Nigeria which is the region’s largest market,” said Bisignani. “We have invested significant resources in Africa with our Johannesburg regional office. Today’s agreement gives us a valuable local presence to deliver our many programmes—from safety to industry solutions and our settlement system.”

IATA has been working closely with the Nigerian government on several issues, particularly safety. “Safety is our top priority,” said Bisignani. “The Nigerian government has taken major steps forward to build a solid foundation for safety improvement. Today’s MoU takes IATA’s commitment one step further. I look forward to the continued great cooperation from the Director General of Civil Aviation, Harold Demuren and Minister of Transport Mudueke to continue to foster the development of civil aviation in Nigeria and West Africa.”

OAG reveals world`s busiest routes

The route between Barcelona and Madrid has retained top spot on the list of 'world's busiest routes' with the highest number of flight operations (971 per week), closely followed by Sao Paulo Congonhas/Rio de Janeiro (894 per week), Jeju/Seoul Gimpo (858 per week) and Melbourne/Sydney (851 per week). These statistics have been compiled by OAG BACK Aviation Solutions, a division of flight information and data solutions company Official Airline Guide (OAG), by tracking frequency (volume of flights) on its renowned schedules database.

Europe

Analysis of European routes shows that Amsterdam/London Heathrow is the busiest international route (ranked 8th overall in the region with 350 flight operations per week), with all others in the Top 10 being domestic routes. Norway has 2 routes in the Top 10 (Bergen/Oslo and Trondheim Vaernes/Oslo.). Paris Orly features twice for its routes to Toulouse and to Nice.

North America

Topping the North American region for having the most flights per week is the route between Honolulu and Kahului, with 639 flight operations per week. The major trunk route of Las Vegas/Los Angeles is in second place with 553 per week, followed by San Diego/Los Angeles with 514 flights. New York La Guardia appears twice for the Boston and Washington Ronald Reagan routes.

Asia

Korea takes top spot in the Asia Pacific region for its route between Jeju and Seoul Gimpo (858 flights per week), very closely followed by the Melbourne/Sydney route with 851. Mumbai/Delhi takes 3rd place with 742 flights per week, and there are three routes to/from China in the Asia top 10.

Latin America

The route between Sao Paulo Congonhas and Rio de Janeiro Santos Dumont has significantly more flights than any other route in Latin America, with almost 900 per week. All routes in the `top 10 busiest` list for this region are domestic, with 3 each for Brazil and Mexico, 2 for Colombia, and 1 each for Ecuador and Belize.

Middle East

This region has the most international routes in its 'Top 10 busiest' list, with just 5 of them being domestic. The route between Bahrain and Dubai is the busiest international sector with 184 flight operations per week, although this is ranked 4th overall in the region behind Jeddah/Riyadh in Saudi Arabia (324 flights); Mashad/Tehran Mehrabad in Iran (199 flights); and Dammam/Riyadh in Saudi Arabia (184 flights).

Africa

South Africa dominates the African list with 6 of the top 10 busiest routes in the region, reflecting the highly competitive market there. Leading the way is Cape Town/Johannesburg with 831 weekly flights followed by Durban/Johannesburg with 588.

Flights & Capacity continue to increase year-on-year

The world's airlines will operate 2.47 million flights and offer a total of 295.1 million seats in September 2007 according to the latest statistics from OAG BACK Aviation Solutions, a division of flight information and data solutions company Official Airline Guide (OAG). This represents an increase of 4% and 6%, respectively, compared to the same month last year.

The number of operations within Europe will grow by 6% year-on-year and capacity will increase by 9%. As a result there will be 619,000 flights available within the European market in September with a total seat capacity of 73.5 million.

International traffic to-and-from Europe will also experience a significant increase of 8%, while capacity is expected to rise by 7%. Significantly growth to-and-from Eastern Europe will be 9% and 14%, respectively. In September 2007, airlines will operate 62,000 flights and offer 7.3 million seats to-and-from this growing market. Equally significant is the 9% increase in the number of flights and the 12% increase in available seat capacity within the European Union (EU27).

Transatlantic traffic is expected to grow by 9% in September 2007 with airlines planning to offer a total of 7.4 million seats, 655,000 more than the same period last year. London Gatwick (LGW), Madrid (MAD), Rome Fiumicino (FCO) and New York Kennedy (JFK) are among the major airports that will contribute to this growth. London Gatwick in particular will experience a 14% rise in the number of its transatlantic operations and a 9% increase in the number of seats offered to-and-from the US and Canada.

Nick Salter, Sales Director OAG BACK Aviation Solutions, commented: "Although growth between Asia/Pacific and Western Europe is more modest than other routes at just 2% overall, some hubs serving this route such as Hong Kong and Seoul show a much higher than average growth at 13% and 23% respectively. The same is true between Asia/Pacific and the US and Canada where Shanghai Pu Dong, Beijing and San Francisco are helping to drive growth in transpacific operations."

Growth in low cost sector continues to soar

Capacity on low cost airlines has more than doubled in just four years, according to latest figures released from OAG BACK Aviation Solutions. This month, budget airlines plan to offer more than 58 million seats on over 392,000 flights worldwide, compared with 47 million seats on over 326,000 flights in September 2006. This represents more than 11 million extra seats on over 66,000 more flights operated by the low cost sector - a year-on-year increase of 24% and 20% respectively.

Low cost flights now account for 16% of all flights and 20% of all seats worldwide, compared to 14% and 17% a year ago.

The figures are revealed in a special report conducted by OAG BACK Aviation Solutions in advance of the Routes Development Forum in Stockholm and the World Low Cost Airlines Congress in London this week. OAG collates data from more than 1000 airlines, on a daily basis, and tracks around 28 million departures a year.

Europe

Within Europe, low cost flights account for 22% of the total flight activity within this region for September 2007, up from 18% year on year. Low cost capacity represents 30% of the total seats available within the market, a jump of 6% compared with September 2006. Low cost carriers will offer 133,000 flights and 21.8 million seats within Europe in September 2007.

Intra-regional growth figures show that the European low cost industry is growing at a faster pace than the rest of the world by a significant margin. There are just under 31,000 additional no frills flights offering 5.6 million seats within the region this month than in September 2006, a rise of 30% and 35% respectively.

North America

Within North America, low cost flights account for 18% of the total flight activity within this market (164,000 flights), up from 17% last year. Low cost capacity represents a similarly modest rise of 1% to 27% of the total number of seats available in this region (22 million seats).

The US domestic market, although still the busiest in this sector, has shown a 7% growth in both frequency and capacity (10,700 more low cost flights and 1.3 million more seats).

Asia/Pacific

More dramatic is the growth shown by the low cost sector in Asia/Pacific, which has risen from 3,900 flights and 600,000 seats six years ago, to an impressive 61,000 flights and 9.2 million seats in September this year. As a result, the low cost market now accounts for 12% of all flights and all seats within Asia/Pacific.

Asia continues its upward trend, with 12,500 more flights (up 26%) year on year, with 2.2 million more seats (up 32%). India is making a significant contribution to this growth. The latest figures for September 2007 reveal there is a 44% growth in the number of domestic low cost flights (5,700 more flights) and 75% growth in capacity of over 1.1 million seats.

Middle East

Although comparatively small in actual numbers, the Middle East low cost sector is still booming, with a doubling of no-frills flights within the region to 2,200 offering more than 350,000 seats.

Busiest Low Cost Routes

Analysis of the busiest routes worldwide operated by low cost airlines this month, reveals no change in the top three routes with the highest number of no-frills flight operations per week compared to the rankings in September 2006. They are Dallas Love Field/Houston (372 low cost flights per week), Melbourne/Sydney (366 flights) and Denver/Las Vegas (319 flights).

There are just two 'new entry' routes in the Top 10 compared with a year ago. They are Mumbai/Delhi (in at number 4 with 318 low cost flights per week), reflecting the dynamics of the rapidly expanding Indian market, and Cape Town/Johannesburg (in at number 10 with 266 low cost flights per week). Interestingly, there are no European routes within the top ten with the highest weekly frequencies.

ASTA testifies before TSA on proposed secure flight rules

ASTA testified on Thursday (20 September) at a public meeting held by the Transportation Security Administration (TSA) on the proposed new rules for the Secure Flight Program. In his testimony, ASTA Senior Vice President of Legal and Industry Affairs Paul Ruden told Kip Hawley, administrator of TSA, and a panel of TSA officials that while ASTA supports the shift of security responsibility from airlines to the government, it is essential that the new rules be as consistent as possible with existing business practices in order to minimize retail industry costs of compliance.

Most importantly, Ruden expressed ASTA’s concern that travel agencies will not be given adequate time to comply once the details of the final rule are announced. Under proposed procedures that period will be 60 days. Ruden testified that travel agencies who maintain profiles for their clients to promote efficient booking and travel management cannot change the programming and update all the profiles for millions of customers in 60 days. He said this process may take six to 12 months.

Additionally, Ruden expressed concerns about how the Global Distribution Systems would provide specific fields and formats so travel agents could efficiently and accurately enter the information necessary to help their clients avoid screening delays at the airport. He went on to raise the issue of the rules’ impact on the use of online advance check-in by air travelers. ASTA’s specific suggestions on Secure Flight will be included in its formal written comments to be filed by the deadline of Oct. 22, 2007.

The Secure Flight Program will shift responsibility for matching air traveler names to the terrorist watch lists from the airlines to the government. To do this, additional information will be requested from the airlines, and therefore from travel agents, in each reservation.

Dubai`s road show in Korea to bring more tourists to the emirate

The successful conclusion of the first ever Dubai Road Show in Seoul, Korea held in conjunction with 12 co-participants drawn from the emirate’s booming tourism and hotel industries has been announced by the Dubai Department of Tourism and Commerce Marketing (DTCM).

Mr Saleh Al Geziry, DTCM Deputy Director, Overseas Promotions, represented the Department at the road show held at Seoul’s Westin Chosun Hotel which attracted over 150 travel trade decision-makers.

The co-sponsors of the road show were Net Group of Companies and Chelsea Hotels and Hotel Apartments, while the other co-participants were Alpha Tours, Whites Sands Tours & Travels, Oasis Adventures, Travco Travel Dubai, Bin Majid Tours, Desert Adventures Tourism, 1001 Events, Gullivers Travel Associates, Dubai For Destination Tourism and Destinations of World.

Mr Saleh Al Geziry, Deputy Director Overseas Promotions, who gave a presentation on Dubai’s new projects was quite upbeat about the response to the road show citing the overwhelming attendance of the travel trade decision-makers and media professionals at these events.

The DTCM Head Office will soon announce the Best Co-Participant Workshop Presentation Award based on the professional approach to the workshop table, its creativity, display and tidiness as well as the participant’s interaction with clients and co-participants.

Last year alone, Korea registered 11,609,879 of its citizens travelling abroad which is just a quarter of its population of 47,041,434. The UAE is expecting a larger number of Koreans in the age groups of 20s and 40s to visit Dubai in the near future.

Toronto looks forward to Emirates' arrival

Nigel Page, Senior Vice President, Commercial Operations, The Americas (left) sits with Peter Sedgley, Emirates Cargo Commercial Operations to share plans around the upcoming Toronto service at a press briefing at the Carlu in Toronto. The briefing was a scheduled part of the airline’s roadshow sales presentation hosted for hundreds of local travel and cargo agents from the area

In preparation for its anticipated arrival in Toronto, Emirates Airline hosted its roadshow event to introduce its products and services to travel and cargo agents. Emirates begins flying non-stop between Toronto and Dubai on 29th October operating its Boeing 777 -300ER aircraft on the route.

The event, which was attended by about 700 travel and cargo agents, introduced the audience to the airline’s various product and service offerings, its growing route network, tourism in Dubai, as well Emirates’ commitment to promoting Toronto as its first Canadian gateway.

“Not only do we see a great many travellers moving between Toronto and the Far and regional Middle East, we also see more and more Canadians choosing Dubai as a leisure destination,” said Nigel Page, Emirates Senior Vice President, Commerical Operations The Americas. “In addition, we expect to see more leisure travellers from our global network choosing Toronto for their vacation plans with the introduction of services.”

“Toronto looks forward to welcoming Emirates. The Toronto roadshow, hosting travel agents from across the region demonstrates a substantial commitment to the city. We look forward to working together through our promotional initiatives to enhance both inbound and outbound travel,” commented Roseanne Longo, Vice President, Leisure Trade Sales, Tourism Toronto.

The roadshow featured a multi-media presentation about Dubai and Emirates and a viewing gallery where guests have an opportunity to view a model of the Emirates’ world renowned Al Maha Desert Resort and Spa.

Emirates will fly its Boeing 777-300ER on the Toronto-Dubai three-times-weekly route, offering 12 First Class, 42 Business Class and 304 Economy Class seats: a total of 358 Seats in a three-class configuration.

Emirates currently employs more than 8,000 cabin crew representing more than 100 nationalities, including more than 100 crew members from North America. In total Emirates employs over 350 Canadians within the entire group with 168 flight deck crew and 90 cabin crew members.

Toronto will be one of six new Emirates destinations in 2007. Earlier this year, Emirates began service to Venice in July, Newcastle in September, Sao Paulo and Ahmedabad are planned in October and Houston in December.

Air Canada introduces paperless boarding pass for PDA users in Canada and overseas flights

Air Canada has introduced paperless boarding passes for its customers who check in using their PDA (personal digital assistant such as Blackberry or Treo) or cell phone. Air Canada’s mobile check-in service, has been enhanced to now offer customers the option of receiving an electronic boarding pass in the form of SMS text messages that the customer simply shows to airport security screening personnel and Air Canada gate agents, in lieu of a paper boarding pass.

Passengers with baggage to check proceed as usual to baggage drop off points prior to security screening. Air Canada’s new mobile service is currently available for boarding domestic Canada flights and departures to international (non-U.S.) destinations, including connecting flights, from 60 airports across Canada served by Air Canada and Jazz.

“Introduction of the mobile boarding pass is a key element in Air Canada’s initiatives to use the most recent and secure mobile and 2-D barcode technologies to simplify our customers’ travel experience,” said Lise Fournel, Senior Vice President E-Commerce and CIO. “In addition to the simplification of travel and business processes made possible by the replacement of paper with electronic documents, we’re particularly excited about the expanded application of 2-D barcode technology that gives our employees better tools to serve our customers more efficiently.”

Fraport`s passenger terminals go non-smoking

The State of Hesse Non-smoker Protection Act will also apply to Frankfurt Airport (FRA) effective October 1. Both passenger terminals will become non-smoking facilties and the “smoking islands” currently located in the departures and arrivals halls will be removed.

Passengers and visitors in the public areas will have to go outside the terminal if they want to smoke. Smoking areas with ashtrays will be available at all entrances and exits to the terminals.

In the transit areas of Terminals 1 and 2, Fraport AG will initially test five glass-enclosed smoking cubicles with ventilation and carbon-filter systems – which will probably be installed in the first quarter of 2008.

Gulf Air streamlines management structure

Gulf Air is streamlining its management structure to put in place a smooth chain of command and enhance operational efficiency as the airline continues with its ongoing alignment programme. “We are well under way in implementing our plans as we continue building a successful team to see Bahrain’s flag carrier soar to new heights,” says Acting President and Chief Executive Bjorn Naf.

“It is important to have the right team in place for our plans to succeed and we are making the necessary alignments as we continue on our way forward.”

“We have some very seasoned people joining us both locally and from outside the Kingdom of Bahrain to take over certain crucial areas of the business.”

Seasoned Bahraini lawyer Nabeel Mohammed Saeed joins Gulf Air as Executive Vice President Legal and Corporate Affairs.

Another Bahraini, Ahmed Al Banna, a senior Labour Ministry official, will soon be assuming the position of Vice President Human Resources.

Gulf Air also welcomed highly seasoned executives from regional carriers, who have recently assumed responsibilities or are in the process of joining the airline’s team. These include, Mr. Christopher Cain as Vice President Flight Operations (from Emirates) and Mr. Paolo Fitze as Vice President Safety (from Etihad).

Meanwhile, Gulf Air bids farewell to its Executive Vice President Marketing Lee Shave who has the left the company.

Menzies Aviation partners with Viva Macau in Sydney

Menzies Aviation has being awarded the Viva Macau’s ground services and cargo handling contract at Sydney International Airport in Australia as the company announced. The three year contract signed on 13th August, 2007 is for services commencing on the last week of August. Viva Macau’s fleet of B767 aircraft will operate three flights a week from Sydney to Macau direct with the possibility of extending the frequency to daily towards the end of the year.

Viva Macau partners Menzies Aviation at their home base airport of Macau and with the tagline of “Simply Different” is the first international low cost carrier connecting the world with Macau. The contract in Sydney is a great extension of the current relationship enjoyed with Viva Macau within the Asia Pacific region.

Alistair Reid, Managing Director, Menzies Aviation Australia, said: “We are delighted to see new carriers coming to the Australian market and even more pleased when they partner Menzies Aviation in Sydney. The contract with Viva Macau demonstrates the great relationship established between Viva Macau and Menzies Aviation. We wish Viva Macau every success and growth in Australia.”

Banyan Tree`s first city club in Asia to launch in Seoul

Banyan Tree has signed a management contract for its first Banyan Tree branded city club development in Asia in vibrant and cosmopolitan Seoul, South Korea. Situated in Namsan, a popular tourist spot right in the heart of the city that offers a panoramic view of Seoul, Banyan Tree Club & Spa is the first branded private membership club in Korea according to the hotel operator.

“Korea has always been an important market for Banyan Tree and bringing the brand here is a significant step that we have had to be very careful about. We are delighted that with the Banyan Tree Club & Spa, Seoul, we are entering Korea in a manner that allows us to deliver the standards that have come to be expected of us to our member and guests in Korea and from around the world,” said Executive Chairman, Mr Ho Kwon Ping.

Developed by Urban Oasis Inc, the project will also include a 59-suite Banyan Tree city hotel featuring full fledged hotel facilities and F&B amenities. This will be the seventh addition to Banyan Tree’s city hotel portfolio which currently comprises of properties which are spread across various key cities in different regions such as Bangkok, Beijing, Shanghai and Dubai.

September 21, 2007

Malaysia Airlines invites submission for website development

Subang- Malaysia Airlines invites online creative agencies to submit their proposals for the development and redesign of the national carrier’s website.

The website review is in line with changes in Malaysia Airlines as it enters into the 2nd phase of its Business Turnaround Plan (BTP). The airline is moving towards becoming a Five-star airline@LCC cost, and will launch its Malaysian Hospitality brand positioning in 2008.

There will be two rounds of review. In the first round, creative agencies are invited to submit their credentials and 1 (one) case study by 25 September 2007. They should not be working with any competing full service carrier currently.

Into the second round, 3 agency partners will be short-listed. They will be required to present the proven case study based on their past experience with an international brand. The short-listed agencies will be announced at the end of September with presentations taking place in mid October.

Malaysia Airlines Senior General Manager, Communications, Ms Indira Nair said, “Customers want to do their online transactions speedily and promptly. The new website must deliver this easy-to-use experience which is critical to support our BTP goals of increasing online sales, and reducing operating costs.

“Look and feel wise, the site must reflect the currently being developed Malaysian Hospitality brand positioning in 2008. It has to be fresh, vibrant and reflects the multi-cultural facets of Malaysia and its national carrier.”

The final selection of the agency is expected to be announced in late October.

EMIRATES ACQUIRES SHARE IN ALPHA FLIGHT SERVICES AUSTRALIA

Enters In-flight Catering Partnership in Australia
DUBAI, U.A.E., – Emirates, the Dubai-based airline and travel services provider has reached an agreement to acquire a 49 per cent interest in Alpha Flight Services Australia – a leading provider of in-flight catering services in Australia.

As part of the agreement, Alpha Flight Services will provide in-flight catering for Emirates flights from Australia starting January 2008. This investment will be Emirates’ second joint venture operation for in-flight catering services. Its first, Emirates Flight Catering in Dubai, recently opened the world’s largest in-flight catering facility in terms of throughput capacity which could reach 115,000 meals per day.

Stewart Angus, Divisional Senior Vice President for Emirates Group Associated Companies said: “We are delighted to enter into a partnership with Alpha Flight Services in Australia. Alpha is a high quality provider of in-flight catering and has a strong future in the Australian market.

“Alpha has a strong and talented management team, and we look forward to working with them to expand the business and further enhance services to customer airlines.”

Peter Smith, Managing Director of Alpha Flight Services Australia said: “We are glad to welcome Emirates as a partner. They have extensive experience in flight catering and an established reputation in the aviation services arena. We believe their expertise will help us raise the bar in the market for quality services while adding value to our customers and operations.”

Alpha Flight Services Australia provides in-flight catering at nine airports in Australia, including all major international gateways, serving 16 customer airlines with over four million meals per annum. It is a 100% owned subsidiary of Alpha Airports Group Plc, a UK based company which provides in-flight catering and duty free services in 12 countries worldwide.

Iguana seized in Blackpool bra incident

Blackpool Airport- Officials at Blackpool Airport today confiscated a pet Iguana that a woman traveler attempted to smuggle through security.

Suspicions were aroused when a police officer noticed something moving under the woman's dress. She was stopped for questioning after a security guard noticed the iguana peeking out of her bra.

Police have decided not to prosecute the woman, who has agreed that her pet should go to a new home at Blackpool Zoo.

Airport spokeswoman Sue Kendrick, says, "Due to the security measures in place at the airport, we are used to confiscating many items. But we never expected to see an iguana."

Iguanas live in the wild in Central and South America and the West Indies.

Dubai World plans to develop resort in Zanzibar

Dubai, UAE- Istithmar, a Dubai World company, announced plans to invest US$ 150 million in developing a new luxury resort in Zanzibar, following a major strategic agreement between the company and the Zanzibar government. The 76-hectare site at Muyuni Beach will contain a 50-room residence and spa retreat, and a 150-room luxury hotel. Both of the developments will be operated by major international luxury hotel brands.

In addition, private luxury beach villas will be developed for sale at the resort, as well as a fisherman’s village and water-sports centre, a sports club and children’s centre. All developments will make the most of the access to the three kilometre length of Muyuni Beach.

Sultan Bin Sulayem, Chairman of Dubai World, the parent company of Istithmar, said: “Our strategy is to develop a balanced portfolio of properties across the world in markets that will deliver the returns that we and our partners seek. Zanzibar is one of the world’s upcoming destinations and we believe that this resort will become a major contributor not just to the Istithmar portfolio, but also to the local economy and local people.”

“This is the second Indian Ocean development deal completed by Dubai World this month – following our recently cemented partnership with the government of Comoros. It marks another clear step forward in our growing relationship with Africa, which is fast becoming a major focus of our investment strategy. We expect to make further announcement of acquisitions in the near future.”

Abdul Wahid A. Rahim Al Ulama, Dubai World Group Chief Legal Officer, who negotiated the deal with the Zanzibar Government, said: “A strong working relationship with the Zanzibar Government and clear shared goals have been crucial factors in Istithmar’s investment in this development. Muyuni Beach is a truly stunning location. It is our vision to create a world-renowned eco resort, with luxury facilities to match the natural beauty of the area.”

Work on the US$ 150 million project will start immediately, with completion targeted for 2009.

The announcement of the plans for Zanzibar follows an announcement earlier this month of a partnership with the government of Comoros which will see the development of a luxury Indian Ocean island beach resort. Last year, Istithmar purchased the V&A Waterfront in Cape Town, South Africa, and is also behind the development of the Djibouti Kempinski Palace Hotel in Djibouti City.

CAA steps in after collapse of Perfect Choice

Civil Aviation Authority of UK- The Civil Aviation Authority (CAA) in the United Kingdom has stepped in to protect customers booked with Perfect Choice after the company ceased trading. Perfect Choice was based in Kingston-Upon-Thames, Surrey, and operated flights and package holidays to Turkey from major UK airports.

The firm held Air Travel Organiser`s Licence (ATOL) number 6048 issued by the CAA and provided a £486,283 bond. The CAA is currently making arrangements for customers abroad to complete their holidays and return to the UK, and to refund fully those with forward bookings.

There are an estimated 500 holidaymakers currently abroad and a further 1,250 with bookings who are yet to travel.

The CAA is currently issuing the following advice to customers of Perfect Choice:

Customers due to travel

  • If you are due to travel on a Perfect Choice flight or air holiday you should submit a claim to the CAA. Claim forms are available on the ATOL website at atol.org.uk. Do not go to your departure airport as all holidays have been cancelled.
Customers currently abroad on holiday
  • The CAA will be making arrangements to ensure customers with Perfect Choice remain in their holiday accommodation and fly home as planned.

  • Information will be made available to representatives in resort, but if you have a query please contact the CAA during office hours on +44 (0)20 7453 6350.

Travel agents urged to capitalise as Asia-Pacific`s aviation market booms

Abacus International-The Asia-Pacific region is set to become the largest regional aviation market in the world within the next three years powered by rising incomes and Asia’s unique demographics, according to travel facilitator, Abacus International. Speaking at the sixth bi-annual Abacus International Conference 2007 underway in Kota Kinabalu, Sabah, Mr. Don Birch, President and CEO, Abacus International said the current period of profound change and growth in the industry was a clarion call for travel agents.

“Changing airline models including the emergence of long-distance/low-cost models and the growing markets of India and China, supported by a resurgent Vietnam, are driving unprecedented levels of investment in aircraft, airports, hotels and will require ever higher levels of professionalism from all who work in the travel and tourism industry,” Mr Birch said.

“Powered by unique demographics and the rising incomes of its 3.4 billion people, Asia-Pacific is on course to become the largest regional aviation market in the world within the next three years following a 30% increase in outbound leisure air travel in recent years.”

Boeing’s predictions through to 2025 put Asia-Pacific’s regional growth at 6.4%, second only to Latin America at 6.9%, while major carriers such as Singapore Airlines, Cathay Pacific, and many Chinese and Middle East carriers have all made substantial aircraft purchases which will come on line in the next five years, capping the 8% increase in seat capacity in Asia Pacific added during 2006 alone.

Asia’s hotels also enjoyed a stellar year in 2006, with a total of US$5.25 billion invested in new hotel developments, half of which were located in Macau, Beijing and Hong Kong. The bulging pipeline of hotel projects across Asia has spurred both governments and industry to provide diploma and tertiary courses in hospitality as the industry scrambles to find and develop enough skilled staff to manage to meet projected demand.

“Airports and governments stand to gain the most from this boom as airlines, both full-service and low-cost compete to offer more services to more passengers and connect new destinations. While the market is still prone to shocks from natural and political events, it displays an underlying resilience and relentless energy to grow which travel agents must also position themselves to capitalise on,” Mr Birch said.

Despite a positive growth outlook, Asia’s travel agents are experiencing pressure from intense price competition among themselves as well as from competing purchasing channels such as online and supplier-direct options.

Mr Birch said an Abacus survey of more than 1,000 Asian travel agents indicated that more than 20% intended to focus on high-margin, low volume customers to minimise their exposure to price wars. “While some travel agencies have adopted new competitive strategies, travel agents ultimately need to align more closely with the traveller and partner with their GDS provider to target those sectors that provide the best yields and best prospects for growth,” Mr Birch said.

Over the past year Abacus has highlighted the rise of ‘outcome based’ travel – the increase in travelling ‘to achieve something’. This has given rise to immense opportunities among sectors as varied as medical tourism, ‘grey travel’, women travellers, Chinese travellers, corporate travel, and the SMERFS – a more budget-conscious cousin to MICE travellers who travel for social, military, education, religious and fraternity reasons.

Mr Birch continued, “As these travel trends demonstrate, the future belongs to travel agents who are willing to embrace the changes and differentiate themselves whether by brand, the products they specialise in or through the unique channels used to reach out to consumers.”

“In essence, this means that in the changing travel landscape, the travel agent has to ‘own the customer’ and be his/her advocate. This means managing complexities and travel spend for companies and leisure travellers, building confidence by securing the best deals for every occasion, mining the rich customer data already available on-hand and above all, being nimble, innovative and entrepreneurial,” added Mr Birch.

Growing environmental awareness and concerns about sustainability are expected to be a major challenge for the industry going forward.

“The move towards more sustainable travel models is an area requiring discussion and collaboration within the industry, allowing us to adequately address both regulator and consumer concerns before they become a constraint on growth. The travel and tourism industry has traditionally been a major catalyst of economic growth. Alongside growth we have the responsibility to ensure that we build, and not damage, the communities that we develop.”

Looking ahead, Mr Birch expects Asia’s travel industry to continue registering strong growth in the years ahead, fuelled by LCC expansion, rising incomes, and the advent of an ever-more ‘tech-connected’ traveller.

“More of Asia will also go online in the coming years, giving rise to the information-savvy and resourceful traveller with a wealth of information and choices at their fingertips. In such an environment, travel agents need to have foresight and be agile enough to succeed, leveraging the full benefits of current and emerging tools to reach out to more customers in more locations with more content.”

IATA optimistic for 2007

A revised financial forecast for the world’s airlines have been announced by the International Air Transport Association. Globally, airlines are expected to post a US$5.6 billion net profit for 2007, up from the US$5.1 billion forecast in June. The average oil price for 2007 was revised upwards to US$67 per barrel (previously US$63). However, higher oil prices were more than offset by stronger than expected demand for passenger traffic and a general improvement in airline financial performance.

“While we are more optimistic for 2007, the continuing high price of oil combined with turmoil in credit markets is a cause for concern in 2008,” said IATA Director General and CEO, Giovanni Bisignani. The industry net profit for 2008 is forecast at US$7.8 billion, down from the US$9.6 billion predicted in June.

“The impact of the credit crunch puts some question marks over the industry’s performance next year and the continuing high price of fuel will become more difficult to mitigate with efficiency gains,” said Bisignani.

Underlying the forecast is a substantial shift in relative regional performance, primarily driven by capacity increases. Since 2001, Asia-Pacific based carriers, preparing to serve the massive opportunities in China and India, added 42% to their capacity and improved load factors by 2 percentage points. By contrast, North American carriers have added 11% to capacity and improved load factors by 6 percentage points. European carriers expanded capacity 29% with load factors showing a 5 percentage point increase.

These factors led to an increase in North American carriers’ unit revenues driving expected net profits to US$2.7 billion - the highest among the major regions. Conversely, poorer yields from Asia-Pacific carriers combined with sluggishness in cargo markets saw a decline in absolute profits from US$1.2 billion in 2005 to an expected US$700 million in 2007. Europe’s carriers continued to benefit from buoyant long-haul markets, improving profitability continually from US$1.6 billion in 2005 to an expected US$2.1 billion this year.

“We are clearly seeing the benefits of hard-won efficiency gains from restructuring. Labour productivity is up 56% since 2001 and non-fuel unit costs are down 15%. The drive for 100% e-ticketing by June 2008 as part of the IATA Simplifying the Business initiative will deliver US$3 billion in cost savings. Balance sheets are improving, but the US$200 billion mountain of accumulated debt continues to make civil aviation a fragile industry. Commercial freedom is a critical missing link. In the coming months, carriers will start taking advantage of opportunities created by the US-EU open skies agreement. We must now be looking forward to even broader liberalisation, including ownership. Only when we have the same freedoms as other industries to run our businesses as businesses will we be fully able to meet both investor and customer expectations,” said Bisignani.

“Our partners and governments must also get more serious about efficiency and the environment. For example, the UN estimates that inefficient infrastructure and air traffic management adds 12% or US$14 billion to our fuel bill. And it unnecessarily adds 73 million tonnes of CO2 to the environment. This must change - urgently,” said Bisignani.

LTU swiftly integrates to Air Berlin

Even after its integration into the Air Berlin Group, LTU has continued to fly under its traditional logo on long-haul flights. However, in the near future, LTU’s medium- and long-haul business flights will be operated under the Air Berlin brand. Although LTU will remain a legally independent company under the Air Berlin PLC umbrella, it will be marketed entirely via Air Berlin.

As Joachim Hunold, Air Berlin’s CEO, who will shortly become Chairman of the Supervisory Board of LTU, stated at a press conference in Dusseldorf on Thursday (20 September): "Even though there were several reasons for giving up the LTU name, we decided on a partial solution in the end. We will continue to fly under the LTU logo on traditional long-haul leisure flights, for example to South Africa, Cuba, Thailand and the Dominican Republic. However, this will not apply to our medium-haul flights and our new long-haul business flights."

"In recent years, Air Berlin has become increasingly competitive in its European destinations, whereas LTU has continued to lose market share on these routes. Moreover, since Air Berlin has acquired a high percentage of business passengers in the meantime, it makes sense to operate our business flights to the US and China under the Air Berlin brand. Outside of Germany, hardly anyone knows what exactly the three letters `LTU` mean. Conversely, the name `Air Berlin` is self-explanatory. `Air` stands for airline and `Berlin` stands for the capital of Germany. We also aim to make flight routes profitable by winning over passengers from our flight destinations."

Upgrades in Business Class

Air Berlin wants to significantly upgrade the Business Class on its long-haul flights to New York, Los Angeles, Miami, Fort Myers, Beijing and Shanghai. While a considerably improved "Relax Class" will replace the former Business Class on leisure travel flights, 30 "contoured" seats will be installed in the "Premium Business Class". This type of seat can be adjusted to a fully horizontal position. The upgrade is due to start in October and enhanced Business Class seats will be installed until the operation reaches completion. "The new Premium Business Class will make us stand out against our competitors," stated Joachim Hunold.

"Without Air Berlin, we could never have offered our passengers this kind of luxury," explained Jurgen Marbach, Managing Director of LTU. Mr. Marbach also announced that as of 1 November, a one-way flight in Economy Class from Dusseldorf to New York will be available.

Teaming up with a Chinese airline

Air Berlin has secured a partner for its flights to China, namely Hainan Airlines, the fourth-largest airline company in China. With its fleet of 125 aircraft, Hainan Airlines operates flights from Beijing to 50 cities within China. Passengers travelling from Dusseldorf to Beijing on Air Berlin will soon have flight connections on arrival in China (as soon as the flight plans have been harmonized). In return, Hainan Airlines is planning to operate a flight between Beijing and Berlin, and Air Berlin will be in charge of organizing the connecting flights within Germany and Europe.

As Joachim Hunold stated: "This partnership puts our business in China on a solid footing." Hainan Airlines is a quality carrier, comparable to Air Berlin, and is a member of the `HNA Group` which is also active in the fields of Airport Management, Hotel Management and Tourist Services.

A uniform Top Bonus program

Air Berlin and LTU aircraft will share the same layout in the near future. A uniform Top Bonus program, with which frequent-flyer miles can be collected for free travel, will be available for the entire Air Berlin Group. Passengers will be able to accumulate miles with and redeem miles for all of the companies belonging to the Air Berlin Group.

Sharjah offers free Iftar meals

SHARJAH —Sharjah International Airport has announced it will provide free Iftar meals to passengers in the transit area throughout the holy month of Ramadan. Meals will be served 15 minutes before the Maqrib prayer for the convenience of passengers.

Airport staff have been trained to welcome and guide passengers to the Iftar reception, and special signs and boards have been placed at strategic areas in the transit lounge to keep passengers informed.

“Sharjah International Airport is always keen to communicate with its passengers in different religious and social activities and to always share special moments with them,” says Ali Salem Al Midfa, director of the Sharjah Airport Authority.

Nepal plans second international airport

The Nepal government has announced plans to build the state’s second international airport, located at Neejgadh, in the Bara district, 80km south of the capital, Kathmandu.

Madhav Ghimire, secretary at Nepal’s Ministry of Culture, Tourism and Civil Aviation, says the US Trade and Development Office has been asked to do a feasibility study and prepare a detailed proposal.

"The American Trade and Development Office has responded very positively in this regard," he adds. "With a credible proposal, we expect international investors to come in for its construction."

Foreign governments have shown an increased interest in recent months in supporting airport developments in Nepal. China is interested in constructing a regional airport in Pokhara, 140km west of Kathmandu, and Korea has pledged US$3 million for infrastructure improvements at the Gautam Buddha International Airport in Bhairahawa, 200km south west of Kathmandu.

Asian Budget Airlines To Rise Above Safety Fears

Asia's budget airlines are poised for huge growth, despite recent damaging crashes, as cheap fares and new planes lure millions of passengers who have more money to spend on travel and leisure.

The latest budget airline disaster, a crash landing on the Thai resort island of Phuket this week killing 89 people, follows an Indonesian crash in January that raised safety fears for a cost-cutting sector facing high fuel prices and a shortage of pilots.

But experts say maintenance standards are as strictly regulated for budget airlines as for mainstream carriers, while Asia is a global centre for outsourcing major repairs.

"It makes for a great media story to say that another budget airline has crashed, but it's probably not fair. It's up to the governments to regulate their airlines and they should get no less stringent treatment than the full service airlines," said Nicholas Ionides, Asia Editor for Flight Magazine.

Budget flights have proliferated in the region, following a similar trend in the United States and Europe, as firms such as Malaysia's AirAsia, Australia's Virgin Blue and Singapore's Tiger Airways aim to tap Asia's growing wealth.

Such carriers undercut prices at major airlines by using aircraft more frequently, removing the widely spaced first-class compartments and packing in more seats, selling tickets directly via web sites rather than travel agents, cutting in-flight services such as free drinks and by buying older planes.

"They focus on the cost line like a laser," said Richard Pinkham, of the consultancy Centre for Asia Pacific Aviation. "More and more budget airlines are buying new planes for fuel and maintenance reasons."

Older planes such as One-Two-Go's McDonnell Douglas MD-82 that crashed near Phuket are cheaper to buy, but are fuel inefficient and have higher repair bills.

International rules mean a plane has to undergo maintenance based on flight hours and the number of take-offs and landings, so a more heavily used budget plane would undergo more regular maintenance. And there is no lack of technical expertise in Asia.

International airlines are sending planes for maintenance work such as co-called D-checks, which test the plane's systems and structure, to Asian firms such as Singapore's SIA Engineering and Hong Kong Aircraft Engineering Company.

Passenger traffic in Asia-Pacific climbed over 6 percent this year to July, with the region now accounting for 32 percent of the global market, according to industry body IATA.

According to IATA forecasts, Asia passenger growth of nearly 6 percent in 2006-10 will comfortably beat total global growth of below 5 percent, though will lag the Middle East.

However, there are plenty of strains on budget airlines and perceptions of poor service may still put off some customers.

"I may not fly with budget carriers -- it's not worth the risk. I'd rather pay for safety, service and comfort," said Lynn Cha, a schoolteacher in Singapore.

One cost pressure is a shortage of trained pilots, leading to a bidding war even at major airlines where pilots are being poached, but harder to bear for budget carriers. China said this month it faces a shortfall of 2,000 pilots in the next few years.

The Indonesian pilot on the ill-fated One-Two-Go flight tried to land despite being warned of windshear threats, a senior Thai aviation official has said. There are international rules on how often a pilot can fly, though rules on planes vary.

Indonesia, whose airlines are banned from European airspace due to safety concerns, issued a law in 2006 that new airlines must not use planes older than 20 years. It considered cutting this to 10 years after January's Adam Air crash that killed 102.

The civil aviation department in Thailand, which relies on tourism for about 7 percent of its GDP, said it is not considering age limits for commercial airliners, and experts said other Asian governments are unlikely to follow Indonesia.

Airline shares in the region have been hammered after the latest crash, and with jet fuel prices surging to record highs over USD$93 a barrel this week. But Adam Air said this month its passenger numbers have rebounded after slumping by a third.

"No-frill carriers could face the heat from record fuel prices, but the growth in demand is so strong and that is enough to keep such airlines flying," said Tony Regan at consultancy Nexant. "People are migrating from coaches to airlines."

(Reuters)

Air Berlin To Buy Condor From Thomas Cook

Air Berlin announced plans on Thursday to buy charter carrier Condor in a two-stage deal that could land Thomas Cook a near 30 percent stake in Air Berlin.

The deal would see Air Berlin expand its fleet to around 160 planes, become Germany's second and Europe's fifth-biggest airline and give it a similar scale to low-cost rivals Ryanair and easyJet.

Thomas Cook, Europe's second-largest travel firm, will sell Condor to Air Berlin in two stages: 75.1 percent in February 2009, and the remainder in February 2010 after Thomas Cook has exercised an option to buy Lufthansa's stake in Condor.

It is also subject to Lufthansa not exercising a pre-emption right to buy the Condor shares that Air Berlin is buying.

In return Thomas Cook will take up to a 29.9 percent stake in Air Berlin worth between EUR380 million and EUR475 million, gain three seats on the airline's board and receive around EUR120 million in cash.

Thomas Cook joint chief executive, Manny Fontenla-Novoa, told reporters that the structure of the deal meant he did not expect it to trigger Lufthansa's right to buy the Condor shares, but a Lufthansa spokeswoman said she expected it would.

Thomas Cook's majority owner Arcandor demanded that Lufthansa decide within a week whether it would exercise its option but Lufthansa said it would not be rushed, adding it had until 2009 to decide.

The firms said they would save around EUR70 million a year by putting the two airlines together, adding they expected very few job losses.

It would be Air Berlin's third acquisition within a year, having already bought domestic rivals DBA and LTU.

Keeping Thomas Cook's stake just below 30 percent would allow it to avoid making a mandatory takeover offer for Air Berlin.

The UK-based firm said it expected the deal to be earnings enhancing in two years time.

(Reuters)

EC proposes global alliance to help developing countries most affected by climate change

The European Commission is proposing to build a new alliance on climate change between the European Union and the poor developing countries that are most affected and that have the least capacity to deal with climate change. Through this Global Climate Change Alliance (GCCA), the EU and these countries will work jointly to integrate climate change into poverty reduction strategies.

The EU will provide substantial resources to address climate change in these countries. Measures will include better preparedness for natural disasters which are expected to become more frequent and intense through global warming. The GCCA renews the commitment of the EU Action Plan on Climate Change and Development to systematically integrate climate change into development cooperation.

Developing countries will be the hardest hit by the effects of climate change and therefore need our help to mitigate climate change and to adapt to the changes already occuring. New technology is only one way of developing towards a sustainable society without hampering development and quality of life. This communication, presented by Development and Humanitarian Aid Commissioner Louis Michel in association with Environment Commissioner Stavros Dimas and External Relations Commissioner Benita Ferrero-Waldner, aims to provide for a broader range of actions through dialogue and exchange as well as practical cooperation between EU and the developing countries.

The Intergovernmental Panel on Climate Change (IPCC) predicts that most regions in the world, and especially those in the developing world, will be increasingly affected by climate change. Poor developing countries, and in particular the Least Developed Countries (LDCs) and the Small Island Developing States (SIDS) will be among the countries hit earliest and hardest.

The EU has a leadership role in promoting international action to tackle climate change. The Spring Council 2007 put forward concrete proposals for a post-2012 international climate change agreement, and committed to significant cuts in the EU`s greenhouse gas emissions. The Global Climate Change Alliance will be an important pillar of the EU`s external action on climate change, reaching out to the countries least responsible for, but most affected by global warming.

Assistance provided under the Global Climate Change Alliance is proposed to focus on five areas: implementing concrete adaptation measures; reducing emissions from deforestation; helping poor countries take advantage from the global carbon market; helping poor countries to be better prepared for natural disasters, and integrating climate change into development cooperation and poverty reduction strategies. As Climate change affects many sectors, it needs to be integrated into poverty reduction efforts in order to ensure sustainability. Systematic climate risk assessment and mainstreaming of climate change into development strategies and programmes (“climate proofing”) are imperative in this regard.

The Commission already earmarked €50 million to the GCCA over the period 2008-10. But substantially more resources are needed to provide a response that adequately responds to the needs. Therefore an appeal is made to the EU Member States to dedicate part of their agreed commitments to increase Official Development Assistance over the coming years to the cause of coping with climate change in the most vulnerable countries.

The first occasion to discuss the Alliance with developing country partners will be the European Development Days held in Lisbon from 7th to 9th November and focusing on climate change and development.

Over the past years the link between climate change and the frequency and intensity of extreme weather events became amply clear. Seven of the ten deadliest disasters of the last 20 years have occurred between 2000 and 2006. Only since July 2007, the European Commission has provided €24.5 million to the victims of natural disasters in Colombia, Caribbean, Peru, Kenya, India, Bangladesh, Nepal, North Korea and the Sudan. The Global Climate Change Alliance aims to assist the most vulnerable countries in the prevention of and their preparedness for natural disasters.

Philippines promotes dive sites

In an effort to raise global awareness for its dive offerings, the Philippine Department of Tourism (PDOT) is working with Ocean Environment Australia to stage the 6th annual Celebrate the Sea Marine Imagery Festival (CSMIF) in Manila this upcoming weekend (Sept. 21 – 23).

Conducted in association with the World Festival of Underwater Pictures, Antibes – also known as the “Cannes of Underwater Film Festival,” the CSMIF is the biggest imaging event of the sea in the Asia Pacific. Since 2002, the annual festival has attracted entries from over 38 countries and a loyal following of dive enthusiasts scoping out potential dive sites for future vacations.

This year’s CSMIF includes an international prints competition featuring $30,000 worth of prizes, an exhibit on marine environmental issues, a children’s painting competition, and the Underwater Film Festival, where 15 award-winning documentary features will be brought for screening throughout the three days.

In addition, the event will feature seminars led by a panel of world renowned image makers and marine scientists such as David Doubilet of National Geographic, whale shark scientist Brad Norman, “Celebrate the Sea” author Michael Aw, and Daniel Mercier, founder of the World Underwater Picture Festival, among others.

“We are pleased that the country has been chosen as the venue of this prestigious event, adding further emphasis to the Philippines’ place on the map of top international dive sites,” said Cynthia Carrion, PDOT Assistant Secretary and Executive Director of the Philippine Commission on Sports and Scuba Diving.

“The festival has evolved to be one of the most important international events of the sea as it raises public awareness and inspires people to protect and preserve our natural environment,” added Carrion.

Vernie Morales, Director of the Philippine Department of Tourism in Chicago, offered similar sentiments, adding that “many divers visiting Manila for the festival will take the opportunity to venture outside of the city and explore some of the world-class dive sites in and around the 7,107 islands that comprise our beautiful country.”

The CSMIF will remain in Manila for the three years.

Lufthansa orders 41 new aircraft

The Lufthansa Supervisory Board has approved at today`s (20 September) meeting orders for 41 aircraft. 30 of the new aircraft from the A320 family are destined for service with Lufthansa in European traffic. Nine others of the Airbus 330-300 long-range type and two continental Airbus A320s will be joining the Swiss fleet.

Wolfgang Mayrhuber, Lufthansa Chairman and CEO said: "Our strong brand, our strong team and strong cashflow are making investments today into perspectives for tomorrow. That is good for our shareholders, customers, staff and system partners."

Successively from 2011, the Lufthansa fleet will be expanded and renewed with 30 short and mediumhaul aircraft. Of the total, 20 of the aircraft are Airbus A321s, four are Airbus A320s and six Airbus A319 jets. Mayrhuber emphasised: "We are modernising our continental fleet with the new aircraft and expanding our leading position in our European home market."

"For Swiss, this investment is the reward for the successful turnaround, for courageous strategic measures, for an excellent performance by the team and successful integration in the Lufthansa fold. With the aircraft orders, the Swiss airline is underscoring its capability to compete", Mayrhuber observed. The new Airbus A330-300s will replace the existing Airbus A330-200 aircraft in the Swiss fleet - deliveries are scheduled to begin in early 2009; the two Airbus A320s destined for Swiss will be joining the fleet from 2011.

The aircraft on order are noted for their high fuel efficiency as well as low-emission and noise levels. They will ensure that Lufthansa and Swiss continue their environment and climate-friendly growth. For the renewal and planned capacity expansion of the existing Group fleet, numbering around 500 aircraft, Lufthansa now has approximately 170 new aircraft, valued at over 14 billion euros (list price), on order.

Indian Finance Minister inaugurates first Boeing 777 flight from Delhi to Brussels: Brussels Airport, Jet Airways and Brussels Airlines present close

The Indian Finance Minister, Mr. Chidambaram, arrived in Brussels. He flew with the first Jet Airways Boeing 777-300 ER flight from Delhi to Brussels and experienced at first hand the efficiency and comfort of the European hub of Jet Airways. The Chairman of Jet Airways, Mr. Naresh Goyal, welcomed Minister Chidambaram to Brussels Airport, together with Mr. Wilfried Van Assche, CEO of Brussels Airport and Mr. Philippe Vander Putten, CEO of Brussels Airlines. Mr. Chidambaram also unveiled a plaque commemorating this first Boeing 777-300ER from Delhi to Brussels.Brussels Airport as a unique transfer experience


Brussels Airport, Jet Airways and Brussels Airlines took the opportunity to present their close mutual cooperation to the Indian and Belgian media. Jet Airways, the leading Indian private sector carrier, Brussels Airport and Brussels Airlines jointly offer a unique travel experience to India, with its unequalled service and quality level.

Jet Airways is the largest and finest private sector airline in India. Jet Airways chose Brussels Airport as its European hub because of the efficiency of this hub, the central location of Brussels and the available expansion options from Brussels Airport. Jet Airways opens up India from Brussels, with flights to Delhi and Mumbai, and even more Indian destinations are in the pipeline. The airline is setting new quality and service standards in the sector.

Brussels Airport guarantees the most efficient, seamless transfer experience in Europe. Individual passenger care is taken to a higher level and the airport will be investing in advanced design infrastructure.

Brussels Airlines guarantees punctual and daily flights from and to 55 European cities, of which a major part connects well with the Jet Airways flights. Moreover, the departure times of Brussels Airlines’ flights to 14 African destinations connect perfectly with the flight schedules of Jet Airways, thus allowing also efficient and comfortable connections to these destinations. As such Brussels Airlines and Jet Airways, who are code share partners for the flights to India, are effectively opening ‘the gates’ to India.

A unique transfer product
Brussels Airport, Brussels Airlines and Jet Airways have created a unique transfer product. Brussels Airport will increasingly become a major European hub for flights to India, Africa, Canada and the United States, thus linking up large parts of the world.

The cooperation between the three partners entails commitments such as absolute dedication on the transfer flights, in service and assistance, quality, comfort and efficiency. Jet Airways and Brussels Airlines have also entered into a code share agreement for the flights to India, which will be extended with more destinations in the short term. This agreement renders the frequent flyer programmes of Jet Airways and Brussels Airlines compatible.

As the airport of the capital of Europe, Brussels Airport aims to offer more direct connections to the rest of the world. The new cooperation helps strengthen the airport’s international position.
The airport currently welcomes 17 million passengers per year. Jet Airways will contribute a further 1 million passengers per year, with additionally the transfer passengers travelling through Brussels Airport with Brussels Airlines and Jet Airways.

Swiss to invest over one billion CHF in fleet renewal activities

Swiss is to invest substantially more than CHF 1 billion in renewing its intercontinental aircraft fleet, replacing nine Airbus A330-200s with bigger and more advanced A330-300s. With the service entry of the new aircraft, Swiss will provide First Class cabins throughout its long-haul fleet.

According to the carrier, it will also be the only airline in the world to offer First Class to all its long-haul destinations. With the Airbus A330-300s accommodating more seats than the aircraft they replace, the fleet renewal will also increase Swiss`s long-haul seating capacity. Swiss can thus benefit from the present market growth while simultaneously achieving a 13-per-cent reduction in the specific CO2 emissions of its A330 fleet. Swiss will also be adding four more Airbus A320 aircraft to its European operations over the next few years. Swiss is investing substantially more than CHF 1 billion in its long-haul aircraft fleet, replacing nine of its eleven Airbus A330-200 aircraft with new A330-300s. The resulting capacity increase will allow Swiss to secure its share of the projected market growth. The additional seats also enable the company to further reduce its costs per seat and thereby sharpen its competitive edge.

"Swiss is investing in modernising and enlarging its fleet," says CEO Christoph Franz. "And it`s our improved profitability that has given us this scope to ensure that we remain wholly competitive in the longer term. Swiss is growing steadily and sustainably."

Lufthansa is also supporting Swiss in its forward-looking strategy, which will further strengthen the role and position of the Zurich hub. By purchasing the nine new aircraft, Swiss will also substantially increase the proportion of owned aircraft in its long-haul fleet. The new transports will also enable the company to reduce the specific CO2 emissions of its Airbus A330 contingent by a further 13 per cent. The Swiss fleet already consumes only 3.8 litres of fuel per 100 passenger-kilometres, a 16-per-cent reduction on the 4.5 litres of five years ago. First Class to all intercontinental destinations

After replacing its Airbus A330-200s with the larger A330-300, Swiss will feature First Class cabins throughout its long-haul fleet. The investment will thus make Swiss the only airline in the world to offer First Class to all its intercontinental destinations, further enhancing its credentials as a top quality airline. Swiss`s Airbus A330-200s will be gradually and seamlessly phased out in favour of the more advanced A330-300s. The first four A330-300s will enter service in 2009, with the remaining five following in 2010 and 2011. Two of the present eleven-member A330-200 fleet will be replaced next year with the previously-announced arrival of two further Airbus A340s, which will also be equipped with First Class cabins. An expanded European fleet

Swiss will also take delivery of two more Airbus A320s for its European fleet at the beginning of next year. And the company is purchasing two new A320s for delivery in 2011 and 2012. The four additional A320s will enable Swiss to benefit from the present growth in the European air transport market and to further expand its network in response to demand. The above capacity increases will also provide more jobs at Swiss: a further 165 positions will be created in the company`s flying corps alone.