British Airways Ditches 747 For Airbus A380

LONDON - British Airways ended decades of loyalty to Boeing's 747 jumbo with a switch to Airbus's new A380 superjumbo on Thursday as it announced a mixed plane order worth up to USD$8.2 billion.

The order for 12 superjumbos from Airbus and 24 787 Dreamliners from Boeing will replace 34 of the airline's older long-haul planes.

BA Chief Executive Willie Walsh told reporters the airline would use the superjumbo to make best use of its limited take-off slots at London's crowded Heathrow Airport.

He denied the company had experienced political pressure to buy the superjumbo, the wings and engines of which will be built in Britain.

"There was absolutely none," he told reporters. "There was no contact, be it formal or informal. The decision was made in the best interest of British Airways. In the engines, the choice of Rolls-Royce was because British is best."

The A380 is the biggest airliner in production, and its first delivery due next month, to Singapore Airlines, comes after wiring troubles triggered a costly two-year delay and management upheaval at Airbus.

The double-decker has a maximum seating capacity of 853 passengers, though most airlines plan to use configurations of fewer than 650, which is still a jump from Boeing's jumbo, which BA currently flies with a maximum of 351 seats.

BA took delivery of its first jumbo on April 22, 1970, becoming just the fifth airline to get one.

"It's an excellent boost for UK manufacturing, with Airbus and Rolls-Royce plants benefiting," said Tony Woodley of Britain's biggest union, Unite. "This order will secure many thousands of jobs."

Analysts said BA had probably received significant discounts as Boeing and Airbus battled for the high-profile orders.

"With the A380 likely to have been heavily discounted, and a reasonable discount on 24 787s also applied, we'd estimate the real value of the order at around GBP3 billion pounds (USD$6 billion)," said analyst Andrew Fitchie at Collins Stewart.

Walsh declined to discuss discounts, which are common in the industry, but said: "I'm very pleased with the way Boeing and Airbus approached this."

The superjumbo will fly on routes from London to Hong Kong, Singapore, South Africa and the west coast of the United States.

The 24 mid-sized 787 Dreamliners, a model whose rapid sales have revived Boeing's fortunes, will be used to open up new routes and increase the frequency of flights on existing ones.

The 787 breaks new ground with a fuselage made of light-weight carbon composite, and is due to enter service next year.

The two types of new aircraft will be delivered between 2010 and 2014, and BA said it had also taken options for a further seven Airbus superjumbos and 18 of Boeing's Dreamliners.

The airline said both aircraft types would be powered by engines from Rolls-Royce, which said it could make up to USD$5 billion from the deal if all options become firm orders.

BA said it was considering aircraft to replace a further 37 Boeing 747s and is examining the Boeing 777-300 ER, the Airbus A350XWB, as well as a stretched version of Boeing's 787, the 787-10, which the planemaker has yet to launch.

"This puts big pressure on Boeing to actually launch the 787-10," said one London-based brokerage analyst.

Another said that while Airbus had scored a major victory in selling the superjumbo to BA, it had missed a key opportunity to secure a deal for its newest plane, the A350 XWB, and selling it to BA would remain a priority for the planemaker.

BA has arranged for a group of banks to provide USD$1.5 billion of debt financing to cover its firm orders to the end of 2011.

THAI MICE industry projecting huge growth

REPORT - BALI - PATA TRAVEL MART: Thailand’s Meetings, Incentives, Conventions and Exhibitions (MICE) sector is doing well. In the first six months of 2006, Thailand saw a growth of 70.54% in visitor arrivals for conventions and a 27.95% increase in business travellers.

The highest numbers for convention delegates were from the ASEAN region, led by Malaysia followed by Singapore and Indonesia. Delegates from Japan were up by 112.44% and Korea 358.50%.

According to the estimated figures for 2007 conducted by the Thailand Conventional and Exhibition Bureau (TCEB), Thailand will receive a total of 814,000 MICE delegates, generating about 56 billion baht foreign exchange revenue for the Thai economy.

TCEB plans to build itself into an agile and professional organisation that will harness the power of marketing intelligence and databases and bolster industry knowledge and skills development.

TCEB also has profiled the local trade and industry associations, especially the medical fraternity which holds the biggest annual conventions. In the field of exhibitions, particular attention will be paid to the top global industries: jewellery, automotive, agriculture and fashion.

Facilities for international incentive travel, meetings, conferences, and exhibitions are being strongly promoted.

Currently, Thailand offers five high-class convention and exhibition centres including the Queen Sirikit National Convention Centre (QSNCC), Bangkok International Trade and Exhibition Centre (BITEC), Impact Muang Thong Thani, Bangkok Convention Centre (BCC) at Central Plaza, and Pattaya Exhibition and Convention Hall (PEACH).

Medium-sized convention halls are also available at the Siam Paragon complex and the Central World Trade Centre right in downtown Bangkok, surrounded by dozens of hotel facilities all within walking distance.

In addition, new centres are emerging in regional destinations like Chiang Mai and Phuket.

Several major events are to be held in Thailand this year, such as the World International Islamic Conference & Exhibition Thailand 2007, IT&CMA / CTW Asia-Pacific, ICCA 2007, Media Asia Expo 2007, Proud Asia 2007, and Worlddidac Asia 2007.

Gulf Air and Tourism Malaysia join hands

Gulf Air and Tourism Malaysia signed an agreement to jointly promote Malaysia’s 50 years of nationhood. The agreement, signed by Gulf Air and Tourism Malaysia, comes after last year’s Memorandum of Understanding (MOU) between the two sides to set up a task force to seek ways to jointly promote “Visit Malaysia”.

"Malaysia is an extremely popular destination for tourists from the Middle East and over the years the country has been witnessing a steady increase in the number of tourists’ arrivals from the region," says Gulf Air General Manager Bahrain Abdulmalik Al Saei.

Malaysia received as many as 12,404,377 tourists between Jan and July 2007, a 24 % jump over the same period last year.

Around 130, 000 tourists from the Middle East and Iran visited Malaysia in the first half this year, up nearly 42 percent when compared with the same period last year.

Visitors from Bahrain alone jumped 24.4 percent higher to 3,246 in the first seven months this year up from 2,610 during the same period in 2006.

Gulf Air’s Head of Marketing Peter Rothel says the airline is eager to tap into the influx.

"Gulf Air has been flying to Kuala Lumpur for years and with the strongest network in the Middle East, the airline is best positioned to cooperate with Tourism Malaysia," says Gulf Air Head of Marketing Peter Rothel adding that "the airline has lined up very attractive offers as part of the campaign."

Gulf Air, which operates daily flights to Malaysia, has slashed prices to 149 BHD for a roundtrip (Bahrain-Kuala Lumpur-Bahrain) starting October and until the end of the year.

"The campaign is timely as it gives visitors the opportunity to attend world-class events and festivals taking place in Malaysia over the next three months," adds Mr. Rothel.

Malaysian officials have welcomed the tie up with Gulf Air, which is the most established carrier in the region, and the Kingdom of Bahrain.

Events coming up during the next three months are the Malaysian Motorcycle Grand Prix (19 October-21 October) featuring the world’s greatest riders, Malaysian International Gourmet Festival (2 November- 29 November) which is the country’s premier gastronomic event featuring the world’s best chefs and the Malaysia Year End Sale Carnival (1 December 2007 to 1 January 2008) offering great bargains.

Airport News

Birmingham: third terminal yes, second runway no

Officials at Birmingham International Airport in the UK have unveiled a £1 billion (US$2 billion) vision for the facility, which involves the building of a third passenger terminal and the extension of the existing runway.

Plans to build an extra runway have been scrapped however, because officials believe projected increases in passenger numbers to about 27 million a year by 2030 can be accommodated by these extra services.

The latest plans will be submitted later this year and should be completed in time for the 2012 London Olympics.

Birmingham's acting managing director Joe Kelly says the £120 million (US$240 million) 400m runway extension will allow the airport to handle non-stop, long-haul flights to China, the Far East and the west coast of America.

A tunnel will be created as part of the extension project, to allow the A45 highway to pass under the runway.

The vision for Birmingham Airport is contained within an interim master plan published today, which has been approved by Australia's Victorian Funds Management Corp and Canada's Ontario Teachers Pension Plan, which last week together bought a 48.25% stake in the airport from Macquarie Airports Group and Ireland's Dublin Airport Authority.

Plans to produce a full master plan, as required by the UK Department for Transport, have been delayed pending the outcome of Coventry Airport’s appeal against the refusal of planning consent for a new terminal building.

Manchester to track passengers for retail boost

Manchester Airport is to begin trials of inexpensive UHF tags to track passenger movements in order to boost retail sales.

The UK’s third largest airport tried tracking passenger movements last year to understand passengers’ behaviour as they travel through the airport, but decided the RFID technology was too expensive to justify full rollout.

Yemmi Agbebi, head of business development at the airport, says the investment in more affordable UHF tags to track passenger movements around retail areas is likely to provide a better return than employing the technology to maximise supply chain efficiency.

The system will be used to maximise the amount of time spent by passengers in the retail area, by highlighting occasions when passengers are delayed in security, for example. It will also alert staff to prevent passengers from accessing restricted areas, and improve staff identification and border security.

The recent introduction of a global UHF standard has brought down the cost of RFID tags, but the technology presents challenges in airport environments because UHF is affected by water in the human body and metal in luggage.

PATA Travel Mart strength reflects Asia Pacific growth

REPORT - BALI - PATA TRAVEL MART: PATA Travel Mart 2007 (PTM07) opened in Bali today (26 September) with a total built-up floor space of 4,294 square metres (sq m). PATA President and CEO Mr Peter de Jong said: “Going from strength to strength, the Mart is again setting records in 2007.”

“In today’s highly competitive marketplace, this strong sustained growth is a truly remarkable performance.”

Mr de Jong attributed strong member support and increased seller representations from South Asia, Northeast Asia and the Pacific as reasons for the Mart being recognised as one of the biggest travel contracting and networking shows in Asia Pacific.

“In many ways, the success of the Mart is a reflection of the dynamism and the strength of the Asia Pacific region.”

Helping to drive this growth is the strong performance of Asia Pacific travel and tourism, which last year came close to 356 million international arrivals for the first time.

Travel to Asia Pacific destinations will continue to outperform long-term average global growth rates, expanding by around 6% per annum to 2009, according to the ‘PATA Annual Statistical Report 2006’, which was launched yesterday (25 September) at the Mart.

“In 2007, Asia Pacific has so far added an additional 13.8 million international arrivals and expanded volumes by 7.1% year-on-year,” said PATA Director - Strategic Intelligence Centre Mr John Koldowski.

“Flows between China (PRC), Hong Kong SAR and Macau SAR continue to dominate the numbers, adding 3.8 million additional arrivals and expanding 6% in the first six months of 2007,” he added.

Mr de Jong confirmed the official delegate numbers for PTM07. A total of 423 buyers representing 343 organisations from 49 source markets have arrived at Bali International Convention Centre for PTM07.

Buyers have come to negotiate with 830 seller delegates representing 376 travel organisations from 38 destinations.

Mr de Jong described the global nature of Asia Pacific’s source markets: “We are pleased to welcome buyers from emerging source markets such as Cyprus, Fiji, Malta, Slovakia and Turkey.”

Mr de Jong said: “From a seller perspective, we have a good cross-section of inbound operators, hotels, national and regional tourism offices, cruise operators, airlines and airports. Seller representation which has also grown strongly over the last few years has this year extended to include Canada.”

He added: “Not surprisingly, we are still seeing a presence from mainland China, with 14 seller organisations, taking 144 sq m of floor space.”

Mr de Jong reaffirmed PATA’s commitment to growing its activities in the “critical market” of China (PRC).

Highlighting some of the features at this year’s Mart, Mr de Jong talked about the outbound workshops organised by PATA’s Strategic Intelligence Centre which will offer essential insights into the source markets of China and the USA; both collectively generated more than 90 million international arrivals to Asia Pacific destinations last year.

For the first time, the annual PATA Foundation Silent Auction and the PATA Gold Awards presentation ceremony is being held in conjunction with the Mart.

“The awards presentation lunch on Friday is dedicated to honouring our 2007 Grand and Gold awards winners for their exceptional achievements,” said Mr de Jong.

Mr de Jong cited PATA’s continued successful repositioning of the Mart and strong strategic support from the Ministry of Culture and Tourism – Republic of Indonesia, official airline Garuda Indonesia, the Bali Government Tourism Office, and PATA Indonesia and Bali & Nusa Tenggara chapters, as major contributors to the success of PTM07.

DOT opens US - China aviation routes

Flying from the United States to China will be more convenient, thanks to new direct routes from Atlanta and San Francisco announced by U.S. Transportation Secretary Mary E. Peters. The Secretary also announced proposed awards for service from Chicago, Newark, Detroit and Philadelphia.

“By bringing China and the U.S. one step closer, we increase our ability to compete, boost our success in the global marketplace, and make international travel for all passengers easier and more affordable,” Secretary Peters said.

Secretary Peters announced that Delta Airlines had been awarded a new direct route from Atlanta to Shanghai, making them the first airline to fly that route. The Secretary also announced that United Airlines was awarded a direct route from San Francisco to Guangzhou, to begin flying in 2008. Both the Delta and United awards represent final decisions by the Department.

Peters also proposed awards for four new daily flights to begin in 2009: American Airlines for Chicago-Beijing service, Continental Airlines for Newark-Shanghai service, Northwest Airlines for Detroit-Shanghai service, and US Airways for Philadelphia-Beijing service. Final decisions of these proposed awards will be made in the near future after further public comment.

Secretary Peters said the announcement is the result of an agreement signed in July with the Chinese government to open up airways between the two countries and double the number of daily flights allowed between the U.S. and China over the next five years. The agreement also allows for new cargo flights operating to and from the U.S. and China.

By increasing competition, allowing more flight options, and reducing costly stops and layovers, these new direct routes are expected to lower fares and increase convenience for both business and leisure passengers to travel to China, Secretary Peters said.

Russia Aims To Sell 1,000 Superjet Airliners

Reuters - Russia plans to sell at least 1,000 of its new Superjet regional airliners, with 70 percent destined for export, manufacturer Sukhoi said on Tuesday.

The ambitious target exceeds the total number of comparable models on the backlog of the Canadian and Brazilian firms who currently dominate the market for planes under 100 seats.

The 78-98 seat Superjet will be unveiled on Wednesday at a Sukhoi jet fighter factory in Russia's Far East. It is the country's first significant civil aviation project since the end of the Soviet Union.

Sukhoi Chief Executive Mikhail Pogosyan said the state-owned company plans to reach a peak production rate of five or six aircraft a month in 2010 and would break-even after 300 planes.

So far it has sold 73 Superjets, mainly to Russian airlines for delivery starting in 2008. It aims to get the planes certified for use in Europe and the United States next year.

By the end of 2007 it plans to make the first test flight and bring the order book up to 100 jets valued at USD$2.8 billion.

Contractors said there were no signs of a further sale to coincide with Wednesday's roll-out, which is instead being presented as a symbol of Russia's industrial revival.

"This is a very serious step for the company and one of the most important steps towards the renaissance of the Russian aerospace industry," Pogosyan said.

About 1,000 visitors are expected in Komsomolsk for the roll-out, straining the resources of a town once forbidden to travelers as a nerve centre of Soviet submarine and military aircraft production.

Pogosyan, a charismatic engineer credited with selling his Superjet ambition to the Kremlin and foreign investors, gave journalists and suppliers a tour of the massive KnAAPO plant.

Guests were kept well clear of its 15,000 military workers or hardware from Russia's biggest war plane maker, apart from an occasional glimpse of a Sukhoi "Flanker" -- a legendary fighter designed to combat the McDonnell Douglas/Boeing F-15 Eagle.

Boeing is now advising Sukhoi on the Superjet but has not invested any cash, Pogosyan said.

"We have a serious past but the world has changed and we could not continue without a strong civil base," he said.

Russian aviation collapsed after the fall of the Soviet Union but President Vladimir Putin has promised to breathe new life into the sector in a move to reassert Moscow's clout.

Russian aerospace ambitions have caused some unease in Europe after a state-controlled bank grabbed a 5 percent stake in Airbus parent EADS last year. Nerves were also rattled when Moscow recently restored strategic bomber patrols.

In Sukhoi's workshops, traces of the Cold War remain as welding sparks fly under giant paintings depicting the strength of the Soviet worker. But Western industrialists were left with few doubts that Sukhoi is retooling for a commercial battle.

"They are moving forwards and bringing in the resources. When this gets going it will really get going," said Philippe Petitcolin, head of French engine firm Snecma.

Snecma, part of French conglomerate Safran, teamed up with Russia's NPO Saturn to build the Superjet's engines. French firm Thales is providing avionics.

Key to the project's success or failure, according to analysts, is Italian firm Alenia Aeronautica, which took a 25 percent stake in Sukhoi's civil division. Its task is to coordinate after-sales service, seen as crucial for winning airline contracts.

Asked whether Sukhoi might open its civil subsidiary to other investors or a stock market flotation, Pogosyan said: "Everything is possible."

Giant ads planned for airport flight paths

Giant advert billboards the size of three football fields could be in place along the flight paths of some of the world’s busiest airports. UK advertising agency Ad-Air is hoping to kick off the initiative next month at Abu Dhabi, and similar installations are planned near airports in London, Paris, Geneva, Los Angeles, Tokyo and Los Angeles from early next year.

Ad-Air spokesperson Kate Rosser says the 20,000m² ads will be on private property and will easily be visible to passengers on flights approaching the airport. They will be printed on a fabric mesh-type material that will be suspended above the ground, facing skyward.

“This record breaking new medium delivers a captive audience of millions of premium international passengers,” she adds, though she refuses to say which companies will be advertising.

Officials at Hartsfield-Jackson, the world’s busiest airport, say they have not heard about the giant ads

Qatar Airways Launches Flights To Nagpur

Qatar Airways Flight QR288 from Doha arrives on its maiden journey to Nagpur to a firemen's salute welcome ceremony.

Nagpur, INDIA (24 September 2007) - Qatar Airways today celebrated the launch of scheduled flights to the central Indian city of Nagpur marking the airline's seventh destination in India.

The Civil Aviation Minister of India, the Honourable Praful Patel, was among the guests at Dr. Ambedkar International Airport in Nagpur to welcome the first flight and the airline's Chief Executive Officer Akbar Al Baker who flew on the inaugural from Doha.

Flight QR288 touched down at the city's airport this morning to a welcome ceremony, which included Indian dancing and the symbolic traditional lighting of the lamp, seen as an auspicious occasion to herald launches.

Qatar Airways is the only full-service scheduled international airline from the Middle East flying to Nagpur. The launch of twice-weekly flights between Doha, capital of the State of Qatar, and Nagpur takes the airline's burgeoning network across India to 44 services a week.

The Nagpur route is being operated with an Airbus A320 aircraft in a two-class configuration of 12 seats in Business Class and 132 in Economy.

Lighting the symbolic diya at the official airport ceremony following the arrival of Qatar Airways' inaugural flight to Nagpur are from left: Maharashtra State Minister, Anil Deshmukh; Qatar Airways Regional Manager India, Naveen Chawla; Qatar Airways Chief Executive Officer, Akbar Al Baker; Honourable Minister of Civil Aviation of India, Praful Patel; Air India Chairman and Managing Director, Vasudevan Thulasidas.

Qatar Airways is today one of the largest foreign airlines serving India with flights to seven cities - Nagpur, Mumbai, Delhi, Chennai, Trivandrum, Cochin and Hyderabad. With the launch of daily flights between Doha and Gujarat state's largest city of Ahmedabad in western India starting on December 12, Qatar Airways will reach a milestone 51 services a week linking Qatar with India.

Speaking on arrival in Nagpur, Qatar Airways Chief Executive Officer Akbar Al Baker said the city was a welcome addition to the airline's family of destinations across India.

"Following on from our highly successful daily Mumbai flights, Nagpur will become Qatar Airways' second gateway city in Maharashtra, giving our passengers greater choice," he said.

"From Europe, Middle East, Africa and North America - Nagpurians have an ample number of cities on these Continents to choose from and I look forward to welcoming our new passengers on our award-winning Five Star service to Doha and beyond.

"We are proud to put Qatar Airways firmly across the Indian map and delighted to say that India has the largest number of routes for Qatar Airways than any other country we currently serve."

Traditional rose petals are laid in front of Qatar Airways' official delegation headed by Chief Executive Officer Akbar Al Baker, accompanied by the Honourable Minister of Civil Aviation of India, Praful Patel, during the airport arrival ceremony and press briefing in Nagpur

Al Baker applauded Praful Patel, India's Civil Aviation Minister, for his drive, commitment and personal endeavours over the years to open up the Indian aviation industry to greater competition, which he said was good for the travelling consumer.

Bilateral relations between Qatar and India, he explained, were strengthening and the additional routes only reinforced the commitment between both countries to strengthen their ties.

Located in the State of Maharashtra, Nagpur has a population of over two million people, has a rich farming belt and is India's orange-growing centre. International companies have begun looking at Nagpur as India's next base of technological excellence.

Nagpur is an extremely resource-rich region of Maharashtra offering tremendous business opportunities as it is also one of India's largest inland container transport hubs. A new economic zone and airport are being planned in the city.

Added Al Baker: "2007 has been a fantastic year for Qatar Airways with the launch of nine new destinations so far, including two Indian routes of Chennai earlier this year, and now, Nagpur. With Ahmedabad coming on line in December, Qatar Airways will further strengthen its position in the Indian market."

Pictured left to right: Qatar Airways' Chief Executive Officer Akbar Al Baker, the Honourable Minister of Civil Aviation of India, Praful Patel and Maharashtra State Minister, Anil Deshmukh.

With the growth of the Indian economy into a potential global powerhouse and Qatar's drive to spread its economic wings, increasing air links between the two countries is of paramount importance to boost trade and commerce. Bilateral trade between India and Qatar has an estimated value of just US$1 billion, the majority represented by the export of $690m worth of Qatari liquid natural gas (LNG) to India.

Qatar Airways currently operates a modern fleet of 58 all-Airbus aircraft to 79 destinations across Europe, Middle East, Africa, Far East, Indian subcontinent and North America. The highlight of this year's expansion has been the launch of flights to New York (Newark) and Washington DC - the airline's first move into the North American market.

With a growing international network, more travellers have an opportunity to use Qatar Airways' Premium Terminal at Doha International Airport, exclusively for departing First and Business Class passengers.

The Premium Terminal features facilities including a spa, jacuzzi, exclusive duty free shopping, business centre and fine dining restaurants. Built in just nine months, the US$90 million terminal is the world's first commercial passenger building dedicated to First and Business Class passengers and offers departing and transit passengers an excellent opportunity to relax and unwind prior to their flight.

DOHA - NAGPUR Schedules:

Route	Days	Flight Number	Departure	Arrival
Doha - Nagpur	Wed, Sun	QR288	2200	0430*
Nagpur - Doha	Mon, Thur	QR289	0535	0705

* Arrival the following day

Munich gets green light for Maglev link

Munich gets green light for Maglev link Munich Airport is set to be linked to its city by a high speed magnetic-levitation train service provided by Transrapid International, a consortium which includes ThyssenKrupp and Siemens.

The long-awaited go-ahead for the project follows yesterday’s agreement between the Bavarian state government, Germany’s rail operator Deutsche Bahn and Transrapid International.

The Transrapid service will be the first to operate commercially in Germany – though the system is already in regular service in Shanghai, China. When it opens in 2014, the Euro 1.85 billion project will provide a 10-minute link for the 37km journey between the city of Munich and its airport, which is one of the fastest growing in Europe.

Speaking last year, Dr. Michael Kerkloh, CEO of Munich Airport, said that Transrapid would eliminate the biggest shortcoming of the airport. “Our airport is poorly situated in terms of good connections. Due to the airport’s geographical location, there is no chance of getting a direct high-speed intercity rail link, the nearby highways are hopelessly congested and the commuter rail system is already stretched to capacity.”

Sri Lanka commits funds to Weerawila

Progress in the development of Weerawila International Airport in Sri Lanka has received a boost with the news that the government plans to finance the construction project from its own funds until an investor is found in the US$125 million project.

"Around 1,100 hectares of land at Weerawila has been earmarked for the project. However, we have permitted persons residing in the outskirts of the proposed airport to remain in their houses until the work begins," says Deputy Ports and Aviation Minister Sarath Kumara Gunaratne.

State-owned Airport and Aviation Services (AASL) will provide US$44 million towards the US$110 million cost of the first phase of the airport project, which will include a modern terminal, a 4,000m runway and parking spaces for up to eight aircraft, including the giant Airbus A380.

Weerawila International Airport is due to open in 2009, and is expected to function mainly as a hub for planes flying to Europe via Southeast Asia.

A second phase in which the capacity of the airport will be increased to 14 aircraft is expected to be completed by 2011.

Frankfurt terminals to go non-smoking

The State of Hesse Non-smoker Protection Act will also apply to Frankfurt Airport with effect from 1 October. Both passenger terminals will become non-smoking facilities and the “smoking islands” currently located in the departure and arrival halls will be removed.

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

Airport operator Fraport is considering installing five glass-enclosed smoking cubicles with ventilation and carbon-filter systems in the transit areas of Terminals 1 and 2.

Swissport’s Tanzania monopoly set to end

Tanzania’s Civil Aviation Authority will this December liberalise the country’s airport services, including the passenger handling, cargo and aircraft services currently handled by Swissport Tanzania.

Swissport Tanzania is listed on the Dar es Salaam Stock Exchange and has operated an exclusive contract in the country since 1984. In the past six months, Swissport handled 8,100 flights and 11,609 tonnes of cargo.

TCAA says, “A general agreement emerged that the liberalisation of ground handling services is desirable and in line with existing policies.”

TCAA is expected to spend the next few months assessing and identifying key infrastructure facilities that prospective airport operators would be required to install within a year.

Air India approached for land deal in Mumbai

Air India approached for land deal in MumbaiAir India approached for land deal in Mumbai Mumbai International Airport (MIAL), the joint venture between the GVK-South African airports and Airports Authority of India (AAI), has approached Air India to acquire land for the proposed integrated terminal at the Mumbai airport. This latest move follows MIAL’s decision to cancel plans for a second runway at the airport, as set out in the airport master plan, due to difficulties in acquiring land around the existing airport.

“It makes sense to have an integrated terminal,” says an MIAL spokesperson. “It’ll be convenient for transit passengers as they won’t have to go from one end to another end of the airport. Hence, we are talking with Air India for land. In fact, that land belongs to the airport, but is in the possession of the airline.”

MIAL previously planned to have two terminals, one at Sahar for international traffic and the other at Santa Cruz for domestic passengers. The new plan calls for an integral terminal for both international as well as domestic passengers, while Santa Cruz would be used for dedicated cargo handling. The proposed terminal would have an annual capacity of 40 million passengers.

The new plan forms part of the airport’s US$1.7 billion master plan prepared by Netherlands Airport Consultants due to be rolled out in phases over the next 10 years. It must be approved by India’s civil aviation ministry before work can proceed.

British top EU airports complaints league

British airline passengers are the unhappiest in the European Union, according to a new study by the European Commission. The research looked at the number of complaints made to regulators in the union’s member states. Over a third of the 18,000 complaints recorded came from people flying through British airports.

A total of 6,080 complaints were made to the Airport Users Transport Council by British-based travellers in a 12-month period ending in 2006. That compares with 2,700 complaints made to the regulator in France and only 1,589 complaints made in Germany.

The reports authors predict that the British regulator is likely to attract more complaints in the current year following well-documented increases in flight delays and baggage losses at the country’s airports.

The most frequent causes for complaint in Europe were flight delays and flight cancellations. However, there was a preponderance of complaints from British passengers demanding compensation for being booked onto over-booked flights.

US Could Limit Flights At New York's JFK

Reuters - The US government has taken the first step toward possibly limiting flights as early as next summer at New York's John F. Kennedy Airport, one of the busiest and one of the worst for delays and congestion.

The Federal Aviation Administration has taken the rare early step of asking major carriers for their JFK scheduling information for next spring and summer, according to a regulatory notice obtained by Reuters.

A similar request also was sent to airlines at New Jersey's Newark Airport, another location hit hard by delays this year.

Airlines must respond to both requests by October 11.

The FAA only reviews schedule information this far in advance at a handful of airports nationally, and only controls flight operations at two, New York LaGuardia and Chicago O'Hare.

"We want to determine if there will be periods where scheduling exceeds capacity," said FAA spokeswoman Laura Brown.

The scheduling request, Brown said, does not mean the agency has decided to limit flight operations.

But the FAA said in its notice to airlines: "This could result in operational limits during peak hours."

JetBlue Airways is based at JFK and Delta Air Lines operates two terminals there. In a statement, JetBlue said it supported FAA efforts aimed at "getting ahead of congestion" and encouraged the agency to immediately convene a meeting of airlines to discuss scheduling.

"We look to their leadership to help resolve congestion issues," JetBlue said.

American Airlines operates international and some domestic service at Kennedy. United Airlines has significantly reduced its presence at JFK.

The International Air Transport Association, which represents international carriers, said the status quo of delays was not acceptable, noting that airlines waste fuel and emit more emissions if arrival and departure times are extended. About 100 international carriers serve JFK.

"By reviewing schedules in advance, we hope this will help FAA and Port Authority improve efficiency and better plan for the peak operations next summer," an IATA spokesman said.

Flight delays and departures are on a record pace for 2007, prompting consumer dissatisfaction and congressional attention to airline service.

Airlines are trying to maximize revenues to keep their modest recovery on track and would not welcome government interference. Carriers argue they are just meeting demand and that other aviation operations, like corporate jets, play a role in congestion, especially in New York.

Major airlines nationally operated more than 4.3 million flights for the first seven months of 2007, and reported 1.08 million delays. More than 106,000 flights have been canceled. In July alone, airlines scheduled a record number of flights, more than 647,000.

Airline operations at JFK jumped 23 percent between October 2006 and July 2007 compared to the same period a year earlier, Transportation Department figures show.

Average daily arrivals with delays greater than one hour at JFK increased 114 percent and the airport's on-time arrival rate fell from 69.7 percent to 61.2 percent. JFK's arrival rate in July alone was the worst of any major airport, 57 percent.

Marion Blakey, whose term as FAA administrator ended earlier this month, said in a speech before she left office that airlines needed to "take a step back" on scheduling, especially in the East, or the FAA could intervene.

According to the notice, the FAA wants to review scheduling between March and November 2008, particularly during the 7 a.m. to 10 a.m. and the 2 p.m. to 10 p.m. slots. Those periods are peak times for business travel.

SAS Q400s Grounded For At Least Another Week

Reuters - Scandinavian airline SAS said on Tuesday it expected its fleet of Dash 8-400 aircraft to remain grounded for at least another week after crash landings earlier this month due to undercarriage failures.

"We estimate that the required inspections and replacements of components will keep our Q400 (aircraft) on the ground for at least another week," SAS said in a statement.

SAS, which has cancelled hundreds of flights since September 12, has said grounding the 27 planes, made by Canadian firm Bombardier, costs up to SEK15 million kronor per day.

Last week, the Danish Civil Aviation Administration (CAA) said the flight ban on SAS's Dash 8-400 aircraft would be lifted gradually as each plane is inspected.

The CAA currently holds the rotating chairmanship of Scandinavian aviation authorities, which also include Sweden and Norway. Half of SAS is owned by the governments of Sweden, Denmark and Norway.

Cathay Says China Eastern Deal Halted

Reuters - Cathay Pacific Airways said on Monday it had wanted to enlist the parent of Air China to buy a slice of rival China Eastern but the deal would no longer go ahead.

Cathay, Asia's No. 3 carrier, said it had planned to team up with China National Aviation Holding Co to buy into China Eastern, which would have scuppered an agreed USD$918 million joint acquisition by Singapore Airlines and Temasek Holdings.

Analysts said Cathay feared competition from Singapore Airlines on its lucrative Chinese network.

Cathay did not explain why it had withdrawn its proposal, and did not give details of the intended purchase, which it said never got to the stage where it had to submit a proposal to China Eastern.

Executives were not available for comment.

Cathay said its shares, which were halted from Friday, would resume trading on Tuesday. They had gained 12.4 percent over the past week before the trading halt.

Singapore Air's shares ended Monday 0.53 percent higher.

Speculation of a Cathay-Air China investment in China Eastern had been spurred by newspaper reports and analysts' comments, which had buoyed stock in Cathay and the Chinese airlines involved.

China Eastern's shares, following a 50 percent gain last week, did a Monday afternoon about-turn as analysts cast doubt on the probability of a deal. The shares fell 10.5 percent after an 8 percent rally to a record earlier on Monday.

"It seems investors estimated the Cathay deal was only a rumour," said Castor Pang, a strategist with SHK Financial. "The rumour pushed the stock price up too high."

Air China confirmed Cathay's proposed deal, and also said it would not go ahead, at least in the next three months. It did not elaborate. Its shares, suspended from last Friday, would also resume trading on Tuesday.

Talk of a deal had ranged from a bidding war between Cathay and SIA to a government-led takeover of China Eastern.

Newspapers, including the South China Morning Post and the Wall Street Journal, cited sources as saying a concrete investment was imminent.

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

The sector had been devoid of major foreign investment until Cathay and SIA both engineered deals.

Singapore Airlines and government-run Temasek, a keen investor in China with a USD$108 billion global portfolio, this year proposed buying a combined 24 percent of China Eastern for USD$918 million. The deal awaits regulatory approval.

Cathay led an acquisition of mainland-focused Dragonair.

"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. Other Chinese airline stocks have also gained in the past week amid talk of consolidation or overhaul of the sector.

Aeroflot Not Considering Buying Alitalia

Reuters - Aeroflot is not considering buying Italian airline Alitalia at the moment and is inclined to drop the idea entirely, Deputy General Director Lev Koshlyakov said on Tuesday.

Aeroflot has said it wanted to see new, more attractive terms before deciding whether to bid for the Italian company.

Companies and associations call on Congress to strengthen America's economy and image abroad

More than 70 leading American companies and business organizations urged Congress to pass the "Travel Promotion Act of 2007" (S. 1661 and H.R. 3232). In a letter to all Members of Congress, an extraordinarily diverse group of organizations highlighted the economic and public diplomacy benefits of better communicating America's travel policies and competing for international visitors. "Support for travel promotion is vast and growing," said Geoff Freeman, executive director of the Discover America Partnership. "At no cost to the American taxpayer, the Travel Promotion Act of 2007 creates a true public-private partnership that can position the United States to welcome millions of additional visitors each year."

Since September 11, 2001, the United States has experienced a 17 percent decline in overseas travel, costing America $94 billion in lost visitor spending, nearly 200,000 jobs and $16 billion in lost tax revenue. The "Travel Promotion Act" would help reverse travel declines by placing the United States on a level playing field with its global competitors who often spend tens of millions of dollars recruiting visitors.

Oxford Economics projects that a $100 million promotion program would result in at least 1.6 million new overseas visitors per year, $8 billion in new visitor spending and $850 million in new federal tax revenue, at no cost to the America taxpayer.

ARINC introduces flight planning for mobile devices

ARINC DirectSM announced the addition of wireless mobile flight planning to its portfolio of services for business jet operators. According to the company, the new service, ARINC Direct MobileTM, is designed for pilots and flight departments who want to create and submit flight plans using portable BlackberriesTM or other personal wireless devices.

ARINC Direct Mobile service is available immediately, and offers most of the features of ARINC’s standard web-enabled flight planning service. Customers using the mobile interface can create and file flight plans, view their planned route of flight with weather radar overlays, update a departure time, retrieve text weather, or view the status of flight plans in their account. They can also create, and fax or e-mail a trip kit.

“Our Web interface only requires an Internet connection and access to a computer, and we process thousands of plans a day. But many customers have been asking for a wireless device option, to make last-minute changes or check on status when they cannot get to a computer,” stated Bob Richard, ARINC Direct Senior Director. “We wanted to be responsive to our customers’ needs and decided to dedicate a development team to accelerate our implementation schedule. Our beta version has just completed several weeks of successful testing with a select group of customers, and this feature is now available to everyone.”

Swiss names regional jet under local city in Switzerland

Swiss's Avro RJ100 HB-IXR has been named "Lufingen", coinciding with the town's current 850th anniversary celebrations. Lufingen is the first airport community to have its name and coat of arms borne by an aircraft of Swiss's European fleet. With the actual aircraft required for revenue-earning service, Rudolf Schumacher, Swiss's Head of Sales Switzerland, presented a model of the Avro RJ100 which will now bear the Lufingen name and crest to Jurg Badertscher, the present mayor, as part of the local Zurich Airport community's 850th anniversary celebrations. The Avro is the first aircraft of the Swiss European fleet to acquire the name of a local community around one of Switzerland's main airports under Swiss's new aircraft naming concept. Six of the company's long-haul jets have so far been named after Swiss cantonal capitals. Having previously given them names of Swiss mountains, the carrier has now adopted a policy of naming its long-haul aircraft after the capitals of the country's cantons. Under the same policy, the company's European aircraft are to bear the names of local communities around Switzerland's three main airports of Zurich, Basel and Geneva, along with those of selected Swiss tourist destinations.

Cathay Pacific to try and block Singapore Airlines

HONG KONG (AFP)- Hong Kong carrier Cathay Pacific will launch a four-billion-dollar attempt to block Singapore Airlines’ bid to gain a foothold in the booming Chinese aviation market, reports said Saturday.

Citing unnamed sources, Hong Kong’s South China Morning Post said Cathay Pacific would seek to buy a significant stake in China Eastern Airlines. That stake would be worth four billion dollars, Britain’s Daily Telegraph said.

The shareholding would then be used to try and scupper the Singaporean carrier’s own plan to acquire a key stake in China Eastern, the Post said.

Cathay would use it alliance with Air China, China’s largest airline which holds 11 percent of China Eastern, to block Singapore Airlines’ plan at a December shareholder meeting.

Singapore Airlines and the city-state’s Temasek Holdings said earlier this month that they planned to buy a combined 24 percent stake in struggling China Eastern for 923 million US dollars.

Analysts have said the deal would offer Singapore Airlines, among the world’s most profitable carriers, a foothold in the Chinese aviation market.

The deal requires the support of two-thirds of minority shareholders, the Post said.

China Eastern was based in Shanghai, which could have a growing role as an international aviation hub, and flew between Hong Kong and Shanghai, it added.

Cathay’s proposal was still be worked on, the Daily Telegraph said citing unnamed sources.

‘There are still a lot of moving parts,’ one person close to the situation was quoted as saying.

Cathay Pacific is expected to make a statement as early as Monday to the Hong Kong stock exchange after its shares were suspended Friday pending a price-sensitive proposed transaction.

The airline’s stock hit an all-time high of 23.05 Hong Kong dollars (3.0 US dollars) on Friday. China Eastern’s shares closed up 12.4 percent.

Fuselage fracture holds up China Airlines jet

Tokyo: Airport workers in western Japan found a 70-centimetre fracture in the fuselage of a China Airlines Boeing 737-800, an official said yesterday, weeks after a similar plane flown by the company exploded at another Japanese airport.

China Airlines maintenance workers discovered the hairline crack near the tail of the jet during a routine post-flight inspection on Thursday afternoon at Saga Airport, on the southern Japanese island of Kyushu, Transport Ministry official Rui Mitsuma said.

Incident-free flight

No anomalies were detected during the plane's flight from Taipei, Mitsuma said.

The fracture was found about 30 minutes before the plane's scheduled departure for a return trip to Taiwan's capital, a China Airlines spokeswoman said on condition of anonymity, citing company policy.

---

---

The airline sent another plane from Taipei to pick up the flight's 49 passengers, who left nearly 5 1/2-hours behind schedule on Thursday evening, she said.

A team of inspectors and maintenance workers had been dispatched from Taiwan yesterday, she said.

Japanese aviation officials launched an investigation, Mitsuma said.

On August 20, a China Airlines Boeing 737-800 that landed at Okinawa's Naha airport exploded in a fireball at a gate seconds after all 157 passengers and eight crew safely evacuated.

Investigators found a bolt on the right wing slat had come loose and pierced a fuel tank, causing fuel to gush out and catch fire.

The incident was a blow to the Taiwanese airline, which has been struggling to shake off its reputation for having a poor safety record. Boeing officials could not immediately be reached for comment.

The fracture was found about 30 minutes before the plane's scheduled departure for a return trip to Taiwan's capital.

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.