Emirates to invest huge amounts in inflight products and services

On the second day of the Dubai Airshow 2007, Emirates entered into long-term agreements with B/E Aerospace, Panasonic Avionics Corporation, and JAMCO Corporation, in a move indicative of its commitment to continuous product enhancements through innovation and cutting-edge technologies.

The contracts for top-of-the-range, custom-built cabin interior products and next generation inflight entertainment and communication systems were signed by HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline & Group, and are applicable to the airline’s new aircraft purchases as well as retrofits to its existing fleet.

Sheikh Ahmed said: “Yesterday (11 November 2007) we placed orders for the latest and most modern passenger jets and today (12 November 2007) we have signed three back-to-back onboard product agreements, clearly signalling our resolve to provide passengers with a world-class product. In the fiercely-contested premium air travel segment, seat comfort and inflight entertainment are the key differentiators, and we intend to stay ahead of the game with our ground-breaking entertainment system, ice, and the corporate jet quality of our premium classes.”

B/E Aerospace

In a deal worth US$ 120 million, Emirates has selected B/E Aerospace, the leading manufacturer of aircraft cabin interior products to retrofit its existing B777-300ER and A340-500 fleet, and equip its new B777 aircraft with the airline’s signature First Class private suites and lie-flat Business Class seats. In addition, the contract includes

First Class private suites installation for the airline’s new A380 aircraft purchases. It does not cover optional aircraft.

Panasonic Avionics Corporation (PAC)

Emirates has also inked a massive US$ 500 million deal with PAC for the eX2 inflight digital entertainment system, which includes interactive audio, video, games, communication and connectivity support, for the airline’s existing fleet and new aircraft purchases.

Panasonic’s eX2 system powers Emirates’ signature ice (information, communication, entertainment) system which offers programming choice together with seatback sms and email services, and live text news updates throughout the flight.

At present almost 60 percent of Emirates’ fleet is ice equipped, and by December 2008 the airline would have increased the system’s presence to cover about 70 percent of its fleet.

An enhanced version of ice, called the ice Digital Widescreen featuring the wide-screen TVs measuring 23” in First Class, 17” in Business and 10.6” in Economy, even more programming choices, as well as innovative features such as My USB and My Playlist is already being introduced as part of a continual upgrade programme.

JAMCO Corporation

Emirates has selected Jamco America, a subsidiary of JAMCO Corporation, the industry’s pre-eminent aircraft interior monument supplier and leader in lavatories and galleys throughout the world, to design and modify the cabin interiors of 33 of its B777-300ER and B777-200 aircraft.

The Jamco Group will manufacture structural components, electrical harnesses, closets, class dividers, and lavatory units for this extensive programme.

Engineering design is to start immediately with the first aircraft to be certified in September 2008.

Airbus set for deals in euros due to weak dollar

His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, at the Airport Expo on the opening day of the Dubai Airshow.

Dubai: The weak dollar is posing a big challenge for Airbus and the company is open to aircraft deals in euros or in a basket of currencies to offset the impact of the declining greenback on the European aircraft manufacturer's profits, a company official said on Sunday.

"The weak dollar is a huge challenge for us as the aviation industry trades in dollars and a lot of the world's manufacturers are based in the US," Airbus spokesman David Velupillai told Dow Jones Newswires at the Dubai air show.

A weak US dollar does not make the planes more expensive, but it does lower the company's profits since half of Airbus' costs are in euros, he said.

"We're open to selling our aircraft in euros or in a basket of currencies," Velupillai said. "We're also trying to cut down costs by placing our work force in dollar zones."

Embraer Signs USD$811 Mln Virgin Nigeria Deal

Brazil's Embraer has agreed to sell 10 aircraft to Virgin Nigeria in a deal that could be worth USD$811 million, the planemaker said on Sunday.

Virgin Nigeria agreed to buy seven Embraer 170 aircraft and three 190s, it said in a statement at the Dubai Airshow.

The deal gives the airline the option to buy six more 190s and purchase rights for eight 190 and 195 aircraft, it said.

Embraer also announced that it had signed deals for 19 business jets from Globalia of Spain and Falcon Aviation.

The aircraft include Embraer's Lineage 1000, Legacy and Phenom models, a spokesman said.

The deals were announced on the first day of the Dubai Air Show, which runs until Thursday.

Emirates Picks Airbus A350 In USD$35 Bln Deal

Dubai-based airline Emirates picked the Airbus A350 airliner over Boeing's 787 in orders potentially worth up to USD$35 billion on the first day of the Dubai Air Show.

Deals this week could make 2007 the biggest year in history for planemakers as soaring crude oil prices drive orders for new, more fuel efficient airliners such as the A380 superjumbo and Boeing's mid-sized 787 Dreamliner.

The Gulf's biggest airline ordered 70 A350s and took options on 50 more while extending its lead as the biggest buyer of the Airbus A380 superjumbo by adding another 11.

Emirates' orders included 12 long-range 777-300ERs from Boeing worth USD$3.2 billion.

The industry is in the third year of a record level of demand spurred by new aircraft as well as the spread of budget airlines.

Boeing's biggest deal came from Qatar Airways, which ordered 30 787s and options to buy 30 more. It also bought 27 777s and took five options.

Boeing entered the air show leading Airbus in their annual race for orders but the gap narrowed on Sunday.

While the 787 is already the fastest-selling new Boeing in history, the Emirates order for the A350 XWB (Xtra Wide Body) is a major boost for the new Airbus plane, which has been the subject of fitful design changes over the last two years.

The battle between the 787 and A350 for sales to industry heavyweight Emirates was being closely watched by industry analysts.

"The 787-9 is a smaller aircraft with fewer seats," said Tim Clark, Emirates airline president, explaining the decision to go with the Airbus.

"The 10 is just not being offered," he said, referring to a stretched version of the 787 which some airlines have urged Boeing to launch.

Separately Rolls-Royce said it would supply engines for the A350s in a deal that could be worth USD$8.4 billion if Emirates firms all options.

Industry sources said Dubai Aerospace Enterprise (DAE), Saudi Arabian Airlines and Air Arabia are among those expected to announce orders this week. The air show runs until Thursday.

Gulf airlines face challenges

A massive infrastructure boom at airports in Dubai, Abu Dhabi and Doha will create capacity for more than 300 million passengers a year in 2017.

By Ivan Gale,

Dubai: There are 16.7 million reasons why Emirates continues to rise among the ranks of international air carriers.

One of them is Marcos Herrmann. A vice-president of a Brazilian paint and timber company, Herrmann used to fly to Vietnam, where he has clients, via Frankfurt on Lufthansa. But with Emirates now flying to Sao Paulo, he can cut his travel time by several hours by going through Dubai.

Providing better connections on newer aircraft and offering high standards of service, Gulf airlines have been the most prominent success story in the post-9/11 airline industry. Experts are, however, quick to point out the challenges. Among them: a lack of slots at major air hubs worldwide, the slow pace of liberalisation in some countries, and new long-range aircraft that can bypass the Gulf hubs.

Richard Aboulafia, an aviation analyst at the Teal Group, attributes Gulf airlines' success to the trailblazing of Singapore Airlines, which years earlier began with a small local population but developed itself as a transit hub between long-haul routes. "Emirates is basically following Singapore. Etihad is following Emirates, and Qatar is following those guys," says Aboulafia.

All three have leveraged their unique geographical location. But they can only succeed if they continue to receive slots at major air hubs and governments continue to grant traffic rights.

James Hogan, CEO of Etihad Airways, says this year his airline has seen "exceptional growth" on long-haul routes to Australia, the UK and Canada. But it cannot add more frequencies without obtaining approval first from foreign governments. "It's a bilateral issue," he adds.

A massive infrastructure boom at airports in Dubai, Abu Dhabi and Doha will create capacity for more than 300 million passengers a year in 2017, according to the International Air Transport Association (IATA). But these gleaming new terminals could remain empty if Gulf airlines aren't allowed to fly to all of their planned routes.

Foreign governments sometimes protect their home carriers by limiting access by foreign carriers. In the last year, both Australia and Germany reportedly considered blocking more flights from Emirates.

"The UAE is very liberalised, but we will need to see further liberalisation in other markets," says Brian Pearce, chief economist at IATA. Etihad, for example, says it wants more air rights to India, Saudi Arabia and Egypt.

Accommodation

Then there is the issue of receiving slots at major airports. Many hubs in Europe are full and cannot accommodate new airlines. "At Paris, the issue is slots," says Etihad's Hogan.

"These challenges we face in Europe will affect the ambitions of Middle East airlines to serve the Europe-to-Asia market," says IATA spokesman Lorne Riley.

But perhaps the greatest wildcard is the effect of new aircraft technologies, and how Asian and European rivals will use them.

Ali Al Rais, general commercial manager at Qatar Airways, called the new generation aircraft from Airbus and Boeing a "double-edged sword." Flying up to 19 hours and 17,500 kilometres, the Boeing 777-200 LR represents how Gulf airlines now have unprecedented access to faraway destinations. But the same goes for their competitors. With new energy-sipping planes, airlines are now considering point-to-point routes that fly over the Gulf that were until now unprofitable. Gulf carriers currently offer the shortest routes between many European and Australasian cities. As aircraft becomes more sophisticated, the advantage of a Dubai stopover may lose its lustre. "The ground is shifting from Europe to the Middle East and Asia, and this is no surprise to industry followers," Al Rais said. "But new long range aircraft can now bypass Middle East hubs, if we are not ready with our infrastructure."

Thanks to an open skies agreement between the US and EU, airlines are looking to set up point-to-point services from secondary or other cities that haven't been flown in the past, says Pearce of the IATA. "That is due to new liberalised environments but also new technology in the aircraft," he said.

One day, travellers like Marcos Hermann may be able to fly from Sao Paulo to Ho Chi Minh City directly. No one is projecting a major slowdown for Gulf carriers. But in the $450 billion airline industry, they can be sure no one will make it easy for them.

Boeing Helps Condor Streamline Its Maintenance Operations

MILAN, Italy, - Condor has adopted Boeing's Web-based maintenance solution, Maintenance Performance Toolbox (Toolbox), to help improve the maintenance of its fleet of 22 757 and 767s.

Condor will use Toolbox modules Library and Authoring. These modules will help the airline streamline an array of maintenance activities including managing technical publications and training and customizing online maintenance manuals.

"Boeing's Toolbox is ideal for us. With the introduction of this latest maintenance technology we are going to be able now to distribute the necessary maintenance information to all technicians involved worldwide, just with a mouse click," said Klaus Reymer, technical director at Condor. "This will enhance our already lean processes one additional step forward."

The innovative suite of aircraft maintenance software solutions is the industry's first set of productivity tools designed to unify an airline's maintenance and engineering operations from start to finish.

"Maintenance Performance Toolbox is one of the key Boeing solutions to help airlines manage critical maintenance tasks," said Dan da Silva, vice president of Sales and Marketing for Boeing Commercial Aviation Services. "We're happy that Condor has endorsed Boeing as a partner to help it manage complex maintenance practices in a competitive environment that demands efficiency and first-rate service."

Accessible via an Internet browser as a secured, hosted service, Toolbox is a key component within Boeing's evolving portfolio of performance-enhancing solutions for aircraft maintenance. Boeing will provide reliable access to the Toolbox tools for Condor through its secure Internet portal, MyBoeingFleet. Only an Internet connection, password and computer - a laptop, desktop or pen tablet - are necessary to access the system.

Boeing, Thomsonfly.com Establish Partnership to Reduce Cost and Delivery Time for Spare Parts

MILAN, Italy, - Boeing and Thomsonfly.com, the UK-based carrier of TUI Travel PLC, today said they have signed an agreement in which the airline will become part of Boeing's Component Services Program (CSP). The program is a parts-provisioning effort that significantly reduces an airline's up-front investment in spare parts and offers a quick and reliable supply of critical parts from a pool shared by 30 participating operators.

"The Component Services Programs are one of the key Boeing solutions to help airlines manage critical spares operations," said Dan da Silva, vice president of Sales and Marketing for Boeing Commercial Aviation Services. "Thomsonfly.com has endorsed Boeing as a partner to help it manage complex spares operations in a competitive environment that demands efficiency and first-rate service."

The agreement applies to Thomsonfly.com's Next-Generation 737 fleet. The Component Services Program will allow Thomsonfly.com to outsource the cost and logistical trouble of keeping important parts on hand. By doing so, CSP helps reduce inventory and component repair and administration costs. Under the CSP, Boeing commits to providing parts covered under the agreement within 24 hours of a request.

"We are looking forward to Boeing being our reliable partner to ensure on-time performance." said Ian Ludlow, technical director of Thomsonfly.com.

Thomsonfly.com has signed up for a long-term commitment on the CSP, paying a rate that covers a potential exchange of more than 475 LRUs, or line replaceable units. LRUs are typically high-value items such as avionics boxes and precision mechanical assemblies, which are time-consuming and costly for an airline to repair and keep in inventory. Thomsonfly.com becomes the 30th airline in the CSP program.

Indian cabinet considers second airport for Delhi

India’s cabinet is considering a plan from the Uttar Pradesh state government to build a second international airport for Delhi at Greater Noida.

The plan has attracted opposition from GMR, which operates Delhi International Airport, because the proposed site for the Uttar Pradesh facility is only 72km away. “The GMR group has been protesting against this move, but all global cities have more than one airport and there’s no reason why Delhi shouldn’t,” says a senior official within the Indian aviation ministry.

Delhi International Airport claims its development plan is sufficient to meet Delhi’s needs for the next 20 years.

Geneva introduces baggage trolley charges

Geneva International is introducing a deposit scheme for its 1,700 baggage trolleys to dissuade passengers from removing them from the airport.

From next Tuesday, passengers will have to pay two Swiss Francs or two Euros (roughly US$1.70) to release the trolleys, say airport officials. The deposit is reclaimed when the trolleys are returned to collection points.

“We find them abandoned all over the place, even if we ultimately lose only a dozen per year,” says airport spokesman Philippe Roy.

Dubai Airshow to break records

Dubai: The 10th biannual Dubai Airshow, kicking off on Sunday, will break all previous sales records, Shaikh Ahmad Bin Saeed Al Maktoum, Chairman of Dubai City of Aviation Establishment and Chairman and Chief Executive of Emirates airline and group, said yesterday.

The 2005 edition of the third largest airshow in the world saw roughly $21.3 billion in new aircraft purchases from Gulf airlines.

"We're expecting more [orders] this time, for sure," Shaikh Ahmad said, who may have been hinting of his airline's plans.

Emirates has said for months it may announce a blockbuster order of next-generation mid-ranged aircraft at the airshow, running from November 11 to 15. Other announcements are expected from Air Arabia, Yemenia, Qatar Airways and others.

The 10th edition of the Dubai Airshow, featuring commercial, military and private aircraft, is completely sold out, thanks to the arrival of several major homegrown exhibitors. Dubai Aerospace Enterprise is the host sponsor this year. Mubadala, the Abu Dhabi government's investment arm, will also exhibit and several announcements are planned on the company's budding aviation interests.

In addition, this year will see a detailed unveiling of Dubai World Central, the $33 billion, 14-square kilometre aviation hub currently under construction.

"The scale of growth in the show over the past two years - which amounts to some 40 per cent in booked floor space, reflects the growth the Middle East's aviation industry is experiencing across all segments," Shaikh Ahmad said.

Organisers say when the airshow moves into its new grounds at Dubai World Central in 2009, it could grow into the world's largest airshow ahead of Le Bourget in Paris and the Farnborough Airshow in the UK.

He also noted that the aviation service sector was attracting a considerable influx in foreign direct investment and that the training and development of the workforce that will drive the region forward was "moving forward at rapid pace."

This year, the Dubai Airshow has grown by 17 per cent from 2005 in terms of exhibitors, due in part to the 130 newcomers from 24 countries that are showing.

New delegations will be seen from the Cayman Islands, the Philippines, Ethiopia, Afghanistan and Luxembourg. There are 11 national pavilions, 91 chalets and 15 outdoor pavilions - up from five in 2005.

National pavilions

National pavilions at the show will represent Austria, Canada, France, Germany, India, Jordan, the Netherlands, Sweden, Ukraine, the UK and US.

Some of the 140 aircraft on static display will include several new-to-market models, according to organisers. They range from strike fighters to trainers, from VIP business jets to heavy cargo carriers and the latest in the very light jet (VLJ) range.

Other well-known models run the full spectrum of airplane size and agility, from the Airbus A380 superjumbo to the Russian MiG 29 multi-role fighter aircraft.

AIRPORT NEWS

Muscat plans for growth as Oman Air takes off

Right: Gulf Air's domination of Oman’s Seeb International Airport is set to diminish with the development of Oman Air

Oman’s Seeb International Airport (MCT) in Muscat is facing dramatic changes to its flight schedules as the country severs its historical financial ties with Gulf Air in favour of national carrier Oman Air.

George Bellew, CEO of Oman Airports Management Company (OAMC), says that while international Gulf Air flights from the airport will inevitably diminish, there is likely to be a corresponding increase in international Oman Air flights.

The airport is nearing its five million passengers a year capacity, with 4.7 million people passing through the terminal last year, up 26% on the year before.

“You have to put it in a regional context,” says Bellew. “Aviation in the Gulf region has been growing fast and there are spin-off benefits from the strong emergence of new hubs such as Dubai.”

Bellew is planning a second terminal and a second (parallel) runway for the airport, which will increase capacity to 12 million passengers a year by 2010. Further expansions planned in three subsequent phases could boost capacity to 48 million passengers by 2050.

Korea’s Muan opens with few flights

Right: Muan International Airport has opened with only nine scheduled international flights per week

Korea’s Muan International Airport this week opened following eight years of construction, but it will not be able to operate a full schedule of international flights for about six months until restaurants and shops are installed and highway access is improved.

The airport terminal is designed to accommodate up to 5.19 million passengers annually, and the Ministry of Construction and Transportation predicts the airport will be used by around 1.8 million passengers in 2008.

At present, the airport is handling only nine international flights per week by two Chinese carriers and seven domestic flights. The two national flag carriers, Korean Air and Asiana Airlines, have decided to continue to operate four weekly flights to China from Gwangju Airport until next June.

The Korea Airports Corporation says 10 out of the nation’s 14 airports operate at a loss, with Yangyang Airport in Gangwon Province having US$13 million in losses. There are fears that Muan will follow suit. Only Jeju, Gimpo, Gimhae and Gwangju airports trade profitably.

The number of domestic airline passengers in the country has dropped significantly since the opening of the KTX bullet train in 2004.

Jiangxi Ganzhou completes runway

Above: A new 5,000m² terminal is planned for Jiangxi Ganzhou Airport

This Wednesday saw completion of the 2,600m long runway at Jiangxi Ganzhou Airport, one of the key projects in the construction of the US$56 million (Yuan 420 million) airport, which began in September 2005.

The airport is located 16km from downtown Ganzhou city, in the southern part of Jiangxi province. The project includes construction of a new 5,000m² terminal, a 2,600m long and 45m wide runway and 1,500m² ATC tower.

Once complete, Ganzhou will be the second largest airport in Jiangxi province after Nanchang International Airport in the provincial capital. It is designed to handle 200,000 passengers and 1,200 tonnes of cargo annually by 2015, and will be able to serve aircraft the size of the Boeing 737.

Hangzhou hits milestone ahead of US$933 million upgrade

Above: Work has now begun on the US$933 million second phase of expansion at Hangzhou Xiaoshan International

Yesterday (Thursday 8 November) marked an important milestone in the operation of Hangzhou Xiaoshan International airport in China’s Yangtse River delta, with the arrival of its 10 millionth passenger since the airport was opened six years ago.

The airport, China’s eighth largest, has experienced average annual growth in passenger numbers of 27% each year since it opened in 2000.

The 10 millionth passenger, Pan Jingjing, flew into Hangzhou from Chongqing at noon.

Sheng Jifang, chairman of Hangzhou Xiaoshan International airport, says the second phase of expansion work at the facility has now begun. The US$933 million (Yuan 7 billion) second phase will include a new 96,000m² international terminal designed by engineering consultants Atkins, due for completion by 2010, a second runway and a second domestic terminal by 2011.

By 2015, the airport will be able to handle 25.6 million passengers and 500,000 tonnes of cargo per year.

Commissioners call for costly mitigation at Fort Lauderdale

Right: Fort Lauderdale-Hollywood International Airport

Broward County Commissioners in Fort Lauderdale, Florida have proposed a series of mitigation actions relating to the proposed construction of a 2.43km elevated runway at Fort Lauderdale-Hollywood International Airport.

Aviation experts suggest that if the Federal Aviation Administration (FAA) accepts the actions, they could add US$500 million to the cost of the project.

The commissioners say that residents near the runway at Fort Lauderdale-Hollywood International Airport should get the choice to have their homes soundproofed or bought at market value.

The FAA is in the final stages of reviewing the plans and is expected to decide whether to approve construction early next year.

County commissioners made the following proposals:

• Buying out mobile home parks in the areas with the greatest noise.
• Offering to soundproof homes and pay owners for the loss of quiet outside.
• Buying homes from those who don't want to take the soundproofing option.
• Acquiring vacant land that is zoned for residential use.
• Offering assistance to entire neighborhoods rather than only those homes in high-noise zones.

Aviation consultants estimate currently proposed mitigation measures would cost US$200 million, based on current federal standards and if two-thirds of homeowners chose to have the county soundproof their homes rather than buy them out.

Estimates put the cost as high as US$700 million if the FAA decided to accept all the county’s proposals.

Training Grounds offers youth employment at Oakland Airport

A new youth-run gourmet coffee shop, Training Grounds, has opened at Oakland International Airport’s Terminal 2, to help participating Oakland students and young adults develop job and vocational skills.

The US$298,000 shop is a joint initiative between HMSHost and the Port of Oakland, which owns and operates the airport and the Youth Employment Partnership (YEP).

“Kids have a greater chance of success, and believing they are successful, when they are given responsibility,” says Michele Clark, executive director of YEP. “By putting Training Grounds in the hands of local youths, we are empowering them to learn more, do more, and expect more from themselves.”

HMSHost designed, funded and built Training Grounds and local HMSHost managers will provide mentoring and support to the high school and young adult workers, including procurement services, scheduling guidance and management training.

A second Training Grounds will open in the airport’s Terminal 1 in 2008.

Retail specialist prepares London City for the Olympics

Retail consultancy Milligan is advising London City Airport on how to prepare for growth ahead of the 2012 London Olympic Games


Airport has appointed retail specialist Milligan to produce a strategic growth plan as it prepares for the Olympic Games in 2012.

The company will perform a six-month strategic review to help the airport determine how best to meet future increases in passenger demand.

“The building is now 20 years old and needs modification to cope with the increased demand that has resulted from the success of London as a world financial centre and, in particular, from the growth of Canary Wharf,” says a Milligan spokesman.

Milligan has previously advised Manchester International Airport in north west England.

DTCM signs MoU with UHK of Germany to market tourist attractions

The Dubai Department of Tourism and Commerce Marketing (DTCM) and Landkreis Unstrut-Hainich (UHK), a district in the north of Thuringia, Germany, have signed a Memorandum of Understanding (MoU) to support each other in marketing promoting tourist attractions, products and services of both the destinations and stimulate tourism and business between both the regions.

The MoU was signed by the DTCM Director General, Mr. Khalid A bin Sulayem, and Mr. Harald Zanker, UHK District Governor, at a ceremony held at the DTCM Head Office.

Mr. bin Sulayem said Germany continues to be a major source market for Dubai’s booming tourism industry and business between the two destinations have been growing at a fast pace. This agreement, he said, would go a long way in benefiting both the DTCM and UHK in the long term.

The MoU will facilitate marketing of products and services of companies located in Unstrut-Hainich district and also those from the emirate. Both parties will nominate their representatives to define the scope of the cooperation.

The UHK and DTCM will identify projects that are suitable to promote as tourism projects and will consider joint promotions. Both parties agree to meet on a regular basis in Dubai and Muehlhausen to define next steps for their joint activities and assess the work that took place.

The DTCM will also assist UHK in the promotion of UHK and its National Park Hainich – which became the 13th national park of Germany in 1997 - after studying the appropriate aspects of the project that will be amenable to the Dubai market. The UHK undertakes to assist in the promotion of the various appropriate Dubai projects at their destination by disseminating all relevant DTCM promotional materials. Both parties agree to sign a definitive agreement detailing the scope of their joint promotional activities within six month of signing this MOU.

US lodging industry continues its strong pace

The U.S. lodging industry recorded its best year ever in 2006, posting pretax profits of $26.6 billion, up from $22.6 billion in 2005, based on the American Hotel & Lodging Association (AH&LA) Lodging Industry Profile (LIP), a statistical analysis of the lodging industry for year-end 2006.

The lodging industry’s overall profitability grossed $133.4 billion in total sales—compared to $122.7 billion in 2005. This increase is attributed to a variety of sources, including the industry’s ability to raise room rates due to an increase in demand from both leisure and business travelers. The LIP’s other indicators — promotional spending, average occupancy rate, and revenue per available room — also point to strong lodging industry performance in the future.

Other facts found in the LIP:

• There are 47,135 properties consisting of nearly 4.4 million guestrooms.
• The lodging industry directly supports more than 7.5 million jobs.
• The tourism industry is currently the third largest retail industry, behind automotive and food stores. In 30 states, tourism ranks as the first, second, or third largest employer.
• Tourism generated $700 billion in domestic sales.

The LIP provides a quick list of significant facts about the lodging, travel, and tourism industries, including employment impact; international travel statistics; and property and room breakdowns by location, rate, and size.

US online leisure travel market growth outstrips overall travel market expansion

The U.S. online leisure/unmanaged business travel market continues to grow at a pace that far exceeds the overall travel market's rate of growth, according to the new report, PhoCusWright's U.S. Online Travel Overview Seventh Edition.

PhoCusWright finds that the online leisure/unmanaged business travel market will surpass US$94 billion in 2007, to comprise more than one-third of the total travel market. The total travel market encompasses offline leisure/unmanaged business and on- and offline corporate travel.

"It's interesting to note that while online travel's growth continues to exceed that of the market as a whole, that growth has slowed compared to recent years," notes Lorraine Sileo, vice president, research at PhoCusWright. "This is especially true for online travel agencies, which have seen their packaging sales slow considerably."

Among the findings about the trends and competitive efforts that are driving change in the industry are:

• While suppliers are gaining share in most segments (air, car, hotel), online travel agencies are competing via packaging and add-ons, corporate tools, distressed inventory, international expansion in Europe and Asia, independent hotel properties, U.S. chains, and cross-product and -provider customer service initiatives.
• Search and metasearch continue to work in favor of suppliers as they drive traffic to their Web sites to book after their comparative shopping experience.
• All travel companies must embrace the consumer desire to shift among online and offline channels. As each channel varies in distribution costs, suppliers must execute unique strategies for each channel based on their yield/value.

The report also analyzes distribution shifts in each travel supplier segment (airline, hotel, car rental, vacation packages, rail and cruise), online travel agency developments and the outlook for this channel, evolving technologies and consumer behaviors, and more. It includes historical and projected segment gross bookings and growth trends, as well as channel sales analysis.

Passenger service standards high on the agenda for airports

Kuala Lumpur International Airport was the first to be presented an Airport Service Quality (ASQ) Assured certificate following a successful audit of its airport passenger service quality management system. In presenting the certification, Airports Council International Director General Robert J Aaronson said, “We are confident that customer service remains a high priority for airports and are encouraged that over 100 airports – including some of the world’s busiest – are already part of the ASQ programme

“This new extension of ASQ will provide real incentive for those airports committed to best practice service quality management techniques. We are proud to be able to present Kuala Lumpur with the first ASQ Assured certificate in the world and believe that this will be an opportunity taken up by a great number of airports.”

Airports Council International has established customer service as a priority area to focus on and believes that the quality of service an airport provides to its passengers is integral to the enjoyment of travelling. In order for airports to effectively understand passenger needs and manage and raise customer service levels, for the last two years ACI has provided the ASQ programme to its members. ASQ is the premier benchmarking tool for airports wishing to measure and commit to improving customer service.

Now, in a further development of the already existing ASQ Survey programme, which assesses passenger perceptions of the service they get at an airport, ACI has announced the establishment of ASQ Assured. This new programme is a certification scheme, specifically designed and operated for airports by ACI, which measures and endorses the service quality management systems in place at an airport.

“As airports grow more competitive and the industry tries to bring back some of the enjoyment of travelling, these tools can really help in raising service levels. It is part of ACI’s encouragement to the industry to develop an improved experience at airports.”

ASQ Assured certifies the commitment of the airport to continual improvement in the quality of services to passengers. It benchmarks an airport’s passenger service quality management system and processes to airport industry best practice. The ASQ Assured scheme uses a self assessment approach followed by an ACI on-site audit. “With time, the ACI Service Quality Assured logo will be recognised as a hallmark of airport service quality excellence.”

Port Authority of NY/NJ takes control of Stewart International Airport

In a ceremony on 1 November officials from the Port Authority and Hudson Valley communities commemorated the first day of Port Authority control of Stewart International Airport in Newburgh, N.Y. Officials vowed to develop the underutilised facility into a strong regional airport serving the travel and business needs of the Hudson Valley while also helping alleviate congestion and ease delays at the New York-New Jersey metropolitan- area airports.

New York Governor Eliot Spitzer said, "The Port Authority has the resources and expertise to help Stewart Airport realise its potential as a major transportation hub for this vastly expanding region. As I stated in my inaugural address, the expansion of Stewart Airport will help to stimulate economic development in the Hudson Valley and beyond. Additional air capacity at Stewart will also help ease congestion currently afflicting our increasingly stressed metropolitan airports as we near their capacity and plan for future population and passenger growth."

Port Authority Chairman Anthony R. Coscia said, "As airport stewards since the first half of the last century, the Port Authority's record is unrivalled. We have enjoyed great success and growth at our airports, which has driven robust economic development. Today we take another bold step, helping to grow the economy while providing relief for travellers at JFK, Newark and LaGuardia."

Skybus CEO Bill Diffenderffer, whose airline today announced new service at the airport, said, "Stewart International Airport is a growing factor in the New York metropolitan area transportation picture. Today's takeover of the airport by the Port Authority will only accelerate Stewart's importance as a regional airport. We think our service from Columbus and from North Carolina's Piedmont Triad International Airport beginning in early 2008 will contribute to that growth and give Skybus customers an exciting new destination."

In addition to Skybus, the Port Authority has been in active discussions with air carriers seeking to provide new services at Stewart, which currently offers scheduled flights to several cities in Florida, as well as Atlanta, Detroit and Philadelphia. The agency also is creating a community advisory board comprising a broad spectrum of Hudson Valley residents, and business and civic leaders. The board is expected to convene by the end of the year.

The airport is owned by the State of New York. The Port Authority Board of Commissioners in January authorized the purchase of the operating lease from a private firm for $78.5 million, and in September approved more than $17 million for parking and roadway improvements. The lease runs through 2099.

Stewart Airport covers 2,400 acres and features two parallel runways that can handle major jet service outside of the crowded airspace over Kennedy International, Newark Liberty International, LaGuardia and Teterboro airports. In 2006, Stewart Airport handled 300,000 passengers, and is expected to handle more than 800,000 this year. By comparison, LaGuardia handled about 26 million passengers last year and sits on only 680 acres on land.

Emirates welcomes 100 passenger Aircraft

Emirates Airline has received its 100th passenger aircraft, a long-range Boeing 777-300ER which brings its all wide-body fleet to a total of 111 aircraft, including 11 freighters.

Emirates’ fast-expanding fleet, which has added one new aircraft per month on average, now comprises 53 Boeing 777s: two Boeing 777-200LRs, nine 777-200s, 12 777-300s, and 30 777-300ERs. The airline is set to become the largest Boeing 777 operator in the world with another 45 of this aircraft type on order.

Emirates’ latest Boeing 777-300ER has been designed to provide customers with the greatest travel comforts on long-range journeys. It offers eight luxurious private suites in First Class, 42 lie-flat massage seats in Business, intelligent space and ergonomic comfort for 304 Economy class passengers, and ice Digital Widescreen in all classes of

travel with more than 1,000 channels of on-demand entertainment delivered on personal digital TV screens.

The airline is investing hundreds of millions of dollars to introduce the latest in-flight products across its existing and future long-haul fleet.

Emirates has 111 aircraft pending delivery, worth over US$ 30 billion. Its order book includes: 55 Airbus A380s, 45 Boeing 777s and 11 Boeing 747 freighters.

Menzies Aviation continues expansion in Europe

Menzies Aviation announced the purchase of Northport Norway AS and Finnhandling AB from Northport Oy, a wholly owned subsidiary of Finnair. The businesses offer full passenger and ramp handling services at Stockholm and Oslo international airports.

As part of the agreement Menzies will provide the ground handling services for all Finnair flights and will also offer a full handling service to international airlines at both airports. The companies have a total of 25 staff which will transfer to Menzies.

Craig Smyth, Managing Director, Menzies Aviation said: “I am delighted that we have acquired these businesses. This represents further expansion in Scandinavia which we believe to be an attractive market. We are also pleased to be able to develop our relationship with Finnair that we hope to expand. This acquisition represents another significant step in the rapid expansion of Menzies Aviation.”

Jukka Hämäläinen, Managing Director, Northport Oy, said: “The sale is a part of Northport’s restructuring programme. It does not have an immediate effect on Helsinki ground handling activities, but our work to turn the company around continues.”

Facebook's travel application teams with CBS TV Series

Where I’ve Been (WIB), the most popular travel application on the Facebook platform, launched of Where I’ve Been – “The Amazing Race” Edition. This co-branded launch by WIB and CBS comes on the heels of Facebook’s announcement that businesses and organizations will now be able to create profiles, interact and affiliate with Facebook users.

“The Amazing Race” is a reality television show in which pairs of people compete against each other in a race around the world. For CBS, WIB created a map displaying the destinations visited in the 11 previous seasons of “The Amazing Race,” as well as the current locations of this week’s episode.

“International travel and adventure are key brand values for Where I’ve Been, so creating an application for ‘The Amazing Race’s’ Facebook page made synergistic and strategic sense for us,” said Michael Dalesandro, CEO for WIB.
“We see this endeavor as a fantastic example of a co-branded, user-friendly application.”

Users can add “The Amazing Race” Edition map to their Facebook profile, which will appear as a color-coded world map. By clicking on the map within their profile, users will be able to receive up-to-date information on the location of “The Amazing Race” contestants. The free, downloadable map is available today in the application menu on Facebook and on “The Amazing Race’s” Facebook page.

Two new Movenpick luxury cruisers embark on maiden voyage in Egypt

At the beginning of November, the new Movenpick M/S Royal Lily and the refurbished Movenpick M/S Prince Abbas have set to sea. Movenpick’s fleet in Egypt now consists of five luxury cruisers. Like its companions, the Movenpick M/S Royal Lily will sail between Aswan and Luxor, while the Movenpick M/S Prince Abbas will ply the waters of Lake Nasser to cruise between Aswan and Abu Simbel.Nile Exploration Corporation is the owner of both the two new ships and the Movenpick M/S Royal Lotus, which was named the best Nile cruiser by the Egyptian Ministry of Tourism in 2006.

"We are honoured that, thanks to our strong partner Nile Exploration Corporation, we are able to offer our guests new cruise ship opportunities of the very highest standard," says Josef Kufer, Senior Vice President Africa Movenpick Hotels & Resorts. "Our floating boutique hotels are equipped with fewer cabins than usual, thereby allowing our guests to enjoy very spacious rooms, extensive public areas and additional amenities."

"It is a unique experience to discover the enchanting landscape between Aswan and Luxor by a Nile cruiser, and to visit the magnificent temples and tombs of the ancient world," adds Josef Kufer. "Incidentally, certain places of interest can only be reached by ship."

Having been comprehensively refurbished, the historical Movenpick M/S Prince Abbas is also ready to return to water under Movenpick Hotels & Resorts management.

"In Lake Nasser, we are pleased to offer another exceptional destination within Egypt," explains Hubert Klemenz, Vice President Operations & Human Resources Africa. "Our guests can now discover the historical treasures of the Nubians – among them the mighty temple of Abu Simbel with its colossal statue of King Ramses II."

Hospitality eBusiness Strategies Wins Three W3 Awards

NEW YORK, NY, Hospitality eBusiness Strategies, (HeBS), NYC today announced receipt of three W3 Silver Awards for outstanding achievement in website development. The W3 awards are sanctioned and judged by the International Academy of the Visual Arts, consisting of top-tier professionals from media, advertising and marketing firms. The 2007 awards were chosen from a pool of 2,700 entries worldwide.

Silver Winners
• Keys Caribbean Residences, Real Estate Category www.KeysCaribbeanResidences.com
• Keys Caribbean Luxury Home Rentals, Hotel & Lodging Category
www.KeysCaribbean.com
• New Harmony Inn, Hotel & Lodging Category
www.NewHarmonyInn.com

Max Starkov, HeBS president and CEO, “These awards show how important a creative, informative, and visually pleasing website is to a hotel’s marketing and distribution efforts. The award winners and our client hoteliers understand the competitive advantages of a comprehensive, well executed Internet marketing strategy. A powerful web presence enables them to reach out directly to their customers, resulting in increased revenues and above industry average ROIs.”

The hotel website has become the first point of contact with past, present and future customers. In the case of hotel websites that are not developed according to industry’s best practices, this is often the last point of contact with the customer. The above W3 Silver Award winners understand it is no longer sufficient to have just any hotel website. Today’s online travel consumers demand that a hotel website have honest and truthful content, rich media, and interactive features and functionality that guarantee an impeccable user experience.

The W3 Awards honor superior creativity on the web and recognize the individuals behind award winning web sites, web advertising and web marketing programs. W3 is the first major web competition to be accessible to a wide range of agencies from the biggest agencies to the smallest firms.

Jazeera Airways launches flights to the Maldives

Kuwait and Dubai based Jazeera Airways announced today the launch of their non-stop route from Dubai to the Maldives. Attending the media launch event in the Maldives were Jazeera Airways senior officials, members of the Kuwait Civil Aviation Authority, officials from the Maldives Tourism Promotion Board, the Maldives Minister of Tourism and travel agents from Kuwait and Dubai.

Jazeera Airways who operate a fleet of new Airbus A320s, all fitted with signature leather seats, are only the second carrier

to operate non-stop flights to the Maldives from Dubai, which will fly every Sunday and Tuesday.

Low-fares to the Maldives can be booked online at jazeeraairways.com, and customers can also reserve their preferred seats at the time of booking.

AIRPORT NEWS

Belfast City receives Ryanair runway warning

Less than a month after it began operations at George Best Belfast City Airport, low-cost airline Ryanair has warned that it could pull out unless the runway is extended.

Deputy chief executive Michael Cawley says the company’s Belfast flights are contingent on the airport improving its runway so that it is able to land full aeroplanes. At present, Ryanair’s 189-seater planes cannot take-off from the runway at Belfast with more than 140 passengers.

Ryanair operates flights from Belfast to East Midlands, Glasgow, Stansted and Liverpool.

Belfast’s chief executive Brian Ambrose says “We would have room within the existing perimeter of the airfield to extend our existing 1,829m runway by 600m at the Holywood end.”

Greek airport police in cocaine bust

Police at Athens International Airport in Greece have arrested two people, both in their 20s, who were apprehended with 7kg of cocaine in their luggage following a tip-off by Interpol. The man and woman were arrested shortly after arriving on a flight from Amsterdam. The police say the drugs were covered by coffee to mask the smell from sniffer dogs.

BAA sells its Australian airport holdings

Above: Melbourne Airport - BAA has sold its near 20% stake

Australian investment company Hastings Fund Management has acquired BAA's interests in six Australian airports for a consideration of US$725 million (A$775 million).

The sale includes a 19.8% interest in Melbourne and Launceston, a 15% stake in Perth, and 10% of shares in three Northern Territory airports.

BAA says the sale represents a continuation of its strategy to dispose of non-core international assets following its acquisition last year by Grupo Ferrovial.

Proceeds of the sale will be used to repay debt.

Union threatens Christmas chaos for BAA

Unite, the union that represents around 6,000 BAA security, administrative and maintenance staff at BAA’s seven airports in the UK, is threatening industrial action in the weeks leading up to the Christmas holiday period. The union is opposed to BAA’s decision to close its final salary pension scheme to new employees from the beginning of December.

Unite has formed a committee to oppose the move and has called for a vote on industrial action, which is likely to take place at the end of the month.

Christmas is traditionally one of the busiest periods for BAA’s UK airports, but the airport operator has refused to comment on the matter until the ballot results are known.

If union members vote in favour of strike action, Unite will have 28 days time in which to take industrial action.

China to be first with 100% electronic ticketing?

Above: Receipt for electronic flight ticket - an increasingly familiar sight in China

China is expected to become the first country to use only electronic air tickets on both domestic and international routes by the end of this year.

Paper airline tickets will soon be phased out of the Chinese domestic market, and the International Air Transport Association will stop offering paper tickets for international routes to Chinese travel agencies this coming Monday (12 November).

The China Air Transport Association (CATA) stopped providing paper flight tickets in October 2006, as a response to a call by the IATA to popularise e-tickets.

While most passengers have yet to become accustomed to e-tickets, some says they had already benefited from it.

“I like e-tickets because they save the trouble of having to wait for the tickets to be delivered to me, because I travel a lot,” says Li Yi, 28, a software salesman. “And I won’t worry even if I lose it.”

According to IATA’s plan, all airlines around the world will stop using paper tickets by 1 June 2008, which will save the industry about US$2.5 billion annually.

IATA launched its drive for e-ticketing more than three years ago, and now 84% of travellers on IATA carriers fly without paper tickets.

Silver Diner plans airport restaurant programme

Silver Diner is planning a series of restaurant installations at US airports


Restaurant chain Silver Diner will open its first airport outlet at Baltimore/Washington International Thurgood Marshall Airport next week.

The diner chain will open a 560m² restaurant in BWI’s Southwest A/B terminal, one of the largest airport restaurants in the US. The 18-year-old company will offer guaranteed 10-minute service, electronic flight screens in the restaurant, prepared meals and the ability to pre-order a meal online or at airport kiosks.

Silver Diner says the US$3.5 million BWI location will serve as a prototype for its plans to introduce restaurants at other airports in 2008, including Philadelphia International and Pittsburgh International Airport.

Tbilisi opens rail link to city

Georgian officials have opened a new railway station at Tbilisi International Airport, which connects the airport to the city’s central railway station. The 100-passenger capacity electric train will take 20 minutes to complete the journey, and will operate at 40-minute intervals.

Officials claim the rail link will halve the journey time from the centre of Tbilisi.

The railway line was constructed by Transmsheni, following a tender and was designed by Delta-Project - 2000

Rostock-Laage expands to 24-hour service

German regional Rostock-Laage Airport has gone into 24-hour service. Expanded service will benefit both civil and charter flights, while airlines will be able to station their aircraft as well as personnel at the airport.

Qatar Airways Prepares For Dubai Air Show And World Travel Market

Doha-Based Airline Participates At Two Leading Travel Industry Events

Dubai Air Show Attracts Global Aviation Industry Figures

London Show Welcomes Travel Industry Elite From Around The World

Doha, QATAR - Qatar Airways is gearing up for two key travel industry events next week by participating at the prestigious Dubai Air Show and World Travel Market being staged in London.

Chairman of Qatar's Civil Aviation Authority, Abdul Aziz Al Nuaimi, will head a delegation, including Qatar Airways Chief Executive Officer, Akbar Al Baker, from Doha to the Dubai Air Show, where the airline will have a dedicated chalet together with a stand in the exhibition hall.

The Dubai Air Show, now in its 10th year, takes place at Dubai International Airport between November 11 - 15 and will feature static displays of commercial and military aircraft, together with aerial displays. Tens of thousands of visitors from around the world are expected at the five-day event, one of the most prestigious in the aviation industry calendar.

The airline will showcase its fine hospitality with a luxurious chalet draped in its burgundy corporate colours. The airline's award-winning lie-flat First Class seat-cum-bed and two Business Class seats will be on display at Qatar Airways' exhibition stand.

World Travel Market is one of the industry's premier travel trade events bringing together airlines, hotels, car rental companies, tourist boards and cruise lines for four days of business.

Qatar Airways Airbus A340-600

Qatar Airways will be showcasing a mock-up of its unique First Class lounge which is fitted onboard the carrier's long-range Airbus A340-600 aircraft, currently used on flights between Doha and both London Heathrow and Washington DC.

Al Baker said both events were highly important for Qatar Airways to maintain its high profile across the travel industry.

"Dubai Air Show and World Travel Market are key events where we have traditionally enjoyed our participation - and this year is no exception as we are again privileged to be taking part in such prestigious shows," he said.

"We look forward to a highly productive week to build and renew business partnerships, welcoming visitors to our chalet and exhibition stands at both events."

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.

Brits consider their partner the most essential travel item

Cheapflights.co.uk poll results are out for their latest probe of the British public psyche – asking travellers ‘What’s your most essential travel item?’. 33% of respondents cited that they couldn’t travel without their partner, preferring to find a familiar face next to them when they wake up in hotel rooms abroad.

Intellect was not far behind romance, with just over a quarter of respondents, 27%, making sure they pack a good book with them before embarking on their travels. Taking condoms abroad rolls in at third place with 18% of people safely preparing themselves in the event of joining the mile high club en-route.

Cleanliness and tools for barricading out unnecessary noises make up the final three items – wash kits (10%), iPods (8%) and sleeping pills (4%) are must haves for a total of 22% of those polled. It can only be hoped that the 4% who take sleeping pills only need them on the flight and not when they arrive at their destination!

Francesca Ecsery, General Manager of Cheapflights.co.uk, comments “In an era when technology is at the forefront of daily life, it is good to see that iPods are taking a back seat to romance and good books when Brits go abroad”.

Second European Development Days focus on climate change

The second edition of "European Development Days" has opened in Lisbon with the impact of climate change on developing countries top of the agenda. Around 1000 decision-makers and stakeholders on development issues are set to attend the 3-day event in the Portuguese capital. This year’s forum aims to focus on climate change issues and how to respond to the needs of already vulnerable countries hardest hit by the impacts of climate change. On Thursday, speakers and participants will address the linkage between climate change, poverty and migration and examine how developing nations can best adapt.

President of the European Commission Jose Manuel Barroso said: "Climate change is the greatest challenge of our generation. Developed countries have a special responsibility to take the lead in cutting emissions and pushing a comprehensive, global agreement on future climate action, in the UN framework. Last week in Lisbon, we launched the International Carbon Action Partnership, an initiative of pioneers from around the world to develop a global carbon market. Focusing the second edition of the European Development Days on climate change stresses this sense of global responsibility in tackling this issue. We are determined to help developing countries to face the impact of climate change on the environment and on human and social development."

European Commissioner for Development and humanitarian aid Louis Michel will be present throughout the three-day event in Lisbon. Commissioner Michel said: "Nobody does more for developing countries than Europe. We are on track with scaling up development assistance, we are making it more effective together with the Member States and we strive to ensure other EU policies like trade and environment more coherent with development goals. All this effort could go to waste if we do not act on climate change. This is the biggest single challenge which we need to tackle together with our partners in developing countries."

In September, the European Commission proposed a Global Alliance specific to climate change. The aim is to encourage adaptation measures, reduce emissions from deforestation, take advantage of the global carbon market and help developing countries be better prepared for natural disasters.

DEVDAYs 2007 takes place in the run up to the EU-Africa Summit on 8-9 December and the United Nations Climate Change Conference in Bali from 14 December.

Cape Town welcomes the first group of Scandinavian tourists

Cape Town Routes Unlimited (CTRU) welcomes today (8 November 2007) the first group of nearly 300 Scandinavian tourists flying in on MyTravel Airways – a Scandinavian charter airline based in Copenhagen, Denmark. The inaugural charter flight lands at Cape Town International Airport on Thursday 8 November.

This inaugural flight is expected to touch down at 13:00 and marks the first of 11 charter flights scheduled every second week from November 2007 to March 2008. The flights are excellent news for Cape Town and the Western Cape with 3,500 tourists from Scandinavia expected over the next five months.

According to Calvyn Gilfellan, CTRU’s Acting CEO: “I am very excited about this venture, the result of two years’ planning with our tourism partners. It underlines our goal in growing and maximising Cape Town and the Western Cape as a winning destination brand. By boosting our region’s true economic potential, this project fits perfectly with our readiness planning for hosting the 2010 FIFA World Cup.”

The announcement follows closely on news that the Western Cape has once again proved it is a premier international tourism destination. According to SA Tourism’s 2006 full year tourism report, the Western Cape achieved 1 737 937 international arrivals representing a record-breaking 9.19% growth from the previous year. There was also a 17.2% growth in Total Foreign Direct Spend from R16.9 billion in 2005 to R19.8 billion in 2006.

Each MyTravel Airways flight will bring in an estimated 300 Scandinavian visitors who will spend two weeks experiencing Cape Town, the Cape Winelands and the Cape Garden Route. While in South Africa, the visitors will be hosted by Your Africa, a local tour operator.

Chris Iuel, general manager in charge of marketing for Your Africa says: “This charter project is an incredibly positive development out of the Scandinavian market. MyTravel Airways expects every departure to travel with 80 to 100% occupancy and does not plan projects like this as a once-off, but takes a long-term view on this venture. Their aim is to look at expanding the project in 2008 and 2009.”

New Director Raises Profile of IATA's Environment Programme

GENEVA- The International Air Transport Association (IATA) announced the appointment of Paul Steele to direct its environment initiatives effective
1 December 2007. Steele joins IATA from WWF International where he served for six years as the organisation's Chief Operating Officer.

Giovanni Bisignani, Director General and CEO of IATA welcomed the appointment, "Air transport takes its environmental responsibility seriously. Alongside safety and security it is a pillar on which we have built a great global industry. Despite our good track record, air transport's carbon footprint is growing. That is not acceptable. Our vision is for air transport to achieve carbon neutral growth in the medium-term, on the way to a carbon emission free future. I am pleased that this vision has impressed Paul Steele who comes to us with a strong track record and solid environmental credentials gained at WWF and elsewhere. He will lead our team in turning the vision into reality."

Paul Steele said, "Business must be actively engaged in building a sustainable future for our planet. Air transport faces many environmental opportunities. The combination of more effective operations, efficient infrastructure, best practices and investment in new technology can pave the way to a greener future. We can only tackle this global issue by using the effective leadership of an organisation like IATA. I look forward to my new and challenging role."

IATA's vision is based on a four-pillar strategy:

1. 1. Investment in new technology
2. 2. Environmentally efficient infrastructure
3. 3. Improved operations based on industry best practice
4. 4. Economic measures that provide effective incentives to improve environmental performance

"The US$132 billion fuel bill that airlines pay is the biggest green incentive of any industry to reduce its carbon footprint," said Bisignani. "Last year IATA's efforts to reduce this yielded up to 15 million tonnes in CO2 savings. I am counting on Paul to challenge us to produce even better results and to broaden our environmental perspective to all areas of the industry—from better ground facilities to more effective air traffic management. Green business is good business."

US Airline Execs Worry Over Oil Price

Reuters-Prospects of USD$100-a-barrel oil sent shares of US airlines tumbling on Wednesday, renewing talk in the industry of mergers and ticket price increases as a way to hold onto profit margins.

The oil spike comes as a softening US economy begins to threaten an industry only just recovering from years of cutthroat competition and a series of bankruptcies.

"I'm not certain that where we are today is a business that can handle USD$100-a-barrel oil," US Airways Group Chief Executive Doug Parker said at a Wall Street investor conference on Wednesday.

"We've been through a painful restructuring since 2001, but we're still not fixed," said Parker.

The chief financial officer of American Airlines stressed that higher ticket prices were necessary to compensate for soaring oil.

"We've got to find a way to pass on fuel expenses to our customers," CFO Tom Horton said at the same conference. "We're going to need to keep driving costs down in order to compensate for the fuel-revenue disconnect."

The price of NYMEX crude oil futures -- directly related to the price of jet fuel -- notched a record high above USD$98.50 on Wednesday.

Northwest Airlines' chief financial officer said forecasting companies were looking at oil costing anywhere between USD$70 and USD$110 per barrel next year.

"The key for us is continued capacity discipline," said Northwest CFO Dave Davis, referring to the number of seats the airline sells, as it tries to balance costs and revenue.

Fuel rivals labor costs as airlines' biggest expense. Since 2006, carriers have offset that cost by reducing the number of seats for sale and raising fares.

But if economic weakness crimps demand, airlines must consider mergers as a way to pull capacity from their systems, said Parker, the most visible advocate for industry consolidation.

Parker, who engineered the 2005 merger of US Airways and America West, failed this year in his attempt to merge US Airways with Delta Air Lines.

Delta rejected the US Airways bid, saying it had more long-term value as a stand-alone airline. But as oil prices continue to rise and the US economy shows signs of slowing, airline leaders have shown renewed interest in consolidation.

"We do believe the right transaction for Delta would add tremendous value within the industry," said Ed Bastian, Delta's chief financial officer, at the investor conference. "If there was to be a consolidating environment, Delta has the strong hand there, and views itself as a natural acquirer, not a seller."

At the same event, Continental Airlines Chief Financial Officer Jeff Misner said Continental would not likely be the one that started the merger wave.

"Continental will not be left behind," said Misner. "We just don't necessarily have the ability to start the dominoes falling."

Continental has an unusual obstacle to consolidation -- rival Northwest holds a "golden share" in Continental that gives it the right to block mergers involving the Houston-based carrier in a shareholder vote.

The unusual relationship dates back to 2001 when Northwest agreed to sell its shares in Continental after it was sued for anti-competitive behavior by the US Department of Justice.

Misner said, however, that Continental is better positioned than most to cope with expensive fuel. Continental's relatively young fleet of more fuel-efficient planes would cushion the company from the blow of higher fuel prices, Misner said.

"It's still cheaper to fly today than it is to drive," he said.

Largest convention of the global travel industry looks at the future of travel

As a think tank of the travel industry the ITB Berlin Convention Market Trends & Innovations has become an important part of the ITB Berlin. At the last ITB Berlin the leading convention of the travel industry in Europe registered a record attendance. A total of 9,000 trade visitors from around the world took part, an increase of 25 per cent over last year. From 5 to 8 March the ITB Berlin Convention Market Trends & Innovations will take place for the fifth time, with leading figures discussing the latest topics. Representatives of the worldwide travel industry will meet on the Berlin Exhibition Grounds to debate issues concerning the future of travel at this four-day convention.

ITB Future Day attended by leading figures

On Wednesday, 5 March 2008 the ITB Future Day begins, with distinguished guests discussing the latest topics. There will be leading figures taking part from the beginning, among them keynote speakers Dr. Asfa-Wossen Asserate, Prince of Ethiopia, author and management consultant for Africa and the Middle East, and Philip C. Wolf from PhoCusWright.

A panel under the same heading will devote itself to a current and much-discussed trend, “The new luxury markets”.

Guests who have registered their attendance to date include Prof. Thomas Druyen, from the Sigmund Freud Private University in Vienna, Klaus-Dieter Koch, founder and owner of Trust Brand Strategy Consultants, and Jurgen Maier from American Express. This is the first time that the ITB Berlin Convention Market Trends & Innovations will include the topic of cruises in its programme. It represents a genuine boom market, as according to a DRV survey, in 2006 the German cruise market alone grew by 11.2 per cent. The same organisation forecasts a further sales increase in 2007. The presentation by IPK International and the Pacific Asia Travel Association (PATA) of the latest data forecasting worldwide travel trends is a long-established event at the ITB Berlin, and an indispensable source of information for tourism industry decision-makers.

Environmental protection in the hotel sector

Hospitality Day on Thursday, 6 March 2008 is a firm fixture on the convention calendar at the ITB Berlin. How “brands as destinations“ are affecting the hotel business is one of the issues hotly debated by trade experts, as are the environmental concepts of this sector. Welf Ebeling, Executive Vice President and COO of The Leading Hotels will chair the discussion on “Green Hotels“. Equally controversial are the panel discussion topics “Hotel and service design“ and ”Hotels under cost pressure“. Hotel experts, management consultants and international auditors such as Deloitte will be debating the issue of “Hotel benchmarking”.

Key air transport topics

The ITB Aviation Day is recognised as the leading event for the global air transport industry. On Friday, 7 March 2008 corporate executives will discuss key air transport topics. The question of “Is air transport a climate killer?” is a highly controversial issue, as there is currently an intense debate on the role of air transport and its effects on our climate. To date Andrew Harrison, CEO easyJet and Dr. Janina Scheelhaase from the German Aerospace Center have agreed to attend. The programme item “EU-US Open Skies over the North Atlantic“ is no less fascinating. Representatives of the three large carriers have agreed to attend: Marnix Fruitema, CEO Air France-KLM Europe, Karl-Ulrich Garnadt, Area Manager Lufthansa and Pat Gaffey, Area General Manager British Airways. The discussion will be chaired by Dr. Pablo Mendes de Leon of Leiden University. A competent panel of experts will also be examining the air transport market in Russia. Finally, audiences will no doubt be awaiting the speaker of Virgin Galactic, who will be talking about space flight.

ITB Business Travel Days and PhoCusWright@ITB

The ITB Business Travel Days will also be taking place alongside the forums mentioned above. This event has firmly established itself at the ITB as a platform for business travel managers, and offers practical workshops, national forums, and a suppliers’ day. The same can be said of PhoCusWright@ITB. This leading travel technology conference organised by a leading US consultancy takes place on Thursday, 6 March 2008.

The ITB Berlin will take place from Wednesday, 5 March to Sunday, 9 March 2008, and the ITB Berlin Convention Market Trends & Innovations will be held from Wednesday, 5 March to Saturday, 8 March 2008. The period from the Wednesday to the Friday is reserved for trade visitors. Next year Messe Berlin will be celebrating a premiere by holding the ITB Asia, which debuts in Singapore from 22 to 24 October 2008.

Cathay To Buy 17 Boeings For USD$5.2 Bln

Reuters-Hong Kong carrier Cathay Pacific said on Thursday it would buy 17 Boeing jets for USD$5.2 billion at list prices.

The order includes seven 777-300 ERs and ten 747-8 freighters. The aircraft are intended to replenish and expand the fleet capacity of Cathay, which is growing with the region's booming aviation market.

Virgin Atlantic launches onboard carbon offset scheme

Air passengers will be able to offset their travel during a flight as Virgin Atlantic introduces a Gold Standard Carbon Offset Scheme. The airline has partnered with myclimate to offer the scheme which is now available onboard and online, and will benefit projects in India and Indonesia.

Endorsed by 49 Non-Governmental Organisations (NGOs) worldwide including many environmental groups, Gold Standard credits are independently validated, adhere to best practice methodology and only support renewable energy or energy efficiency technologies (no tree planting or gas flaring).

Virgin Atlantic is the only airline to commit to Gold Standard projects because it believes that this is the only offset standard that guarantees a positive additional impact on the local communities and the environment.

Virgin Atlantic has also calculated exactly how much carbon is produced for each of its flights and had this verified through Greenhouse gas verification company, CICS. The airline then calculated how much this would equate to for each passenger by taking into account the different weights of equipment and seats in each class of travel, and also the amount of cargo on each route. So Upper Class passengers pay more than Premium economy and Economy passengers because their seat and Inflight Entertainment monitors are significantly heavier.

Sir Richard Branson, President of Virgin Atlantic commented: “Virgin Atlantic is offering the world’s first ever scheme enabling passengers to offset their air travel during their flight. This effective carbon offsetting option is unique as it supports only Gold Standard projects. We hope our passengers will be keen to become members of our Gold Standard Mile High Offset Club!”

myclimate are a Swiss based charity, whose vision is to find innovative solutions to climate change and to promote clean energy solutions particularly in developing countries.

One of the projects is based in India, with the money going towards supporting a power plant that runs on farming waste, such as sugar cane husks, turning them into electricity for the local community. The other main project is a hydropower plant in Indonesia, where the money is going towards rebuilding of the plant, which will employ and provide new skills to the local community, as well as providing a source of clean and reliable electricity for them.

In addition to buying offsets onboard, passengers can buy carbon offsets for their flights on the airline website when they book their tickets or any time they choose.

Jasmine Hyman, Marketing Director of the Gold Standard added: “The Gold Standard Foundation commends Virgin Atlantic's stringent and sincere climate programme. From cradle to grave, the Virgin Atlantic approach adheres to rigorous environmental standards and a strong commitment to sustainable development.”

Emirates marks another record half-year

UBAI, U.A.E., 7th November 2007 – Emirates Airline has announced another record performance for the first six months of its current financial year 2007-08 ending 30th September 2007, with net profits of Dhs 2.36 billion (US$ 643 million) up 99 per cent compared to Dhs 1.18 billion (US$ 323 million) for the same period last year.

The results reflect a strong revenue performance largely driven by higher passenger demand, combined with higher yields. Net margin was 13.7 per cent compared to 8.7 per cent for the corresponding period last year.

H.H. Sheikh Ahmed bin Saeed Al-Maktoum, Emirates’ Chairman and Chief Executive said: "Emirates has delivered another excellent performance which reflects healthy demand for our products and services. We have expanded our route network with new large capacity, fuel-efficient aircraft, and have continued to invest in a high quality product for our customers. These investments, matched with robust global demand for air travel, are paying off.

“Looking at the next six months, fuel costs remain a serious challenge for us with the price of crude oil now heading towards US$100 per barrel. There is also continued uncertainty surrounding the impact of recent credit issues in the financial markets on passenger demand. However, I remain confident that Emirates is well positioned to address these challenges and continue our profitable growth.”

Emirates' operating revenue at Dhs 16.96 billion (US$ 4.62 billion), was up 25.8 per cent compared to Dhs 13.48 billion (US$ 3.67 billion) during the corresponding period last year.

Passenger revenue recorded a growth of 30.5 per cent at Dhs 13.1 billion (US$ 3.56 billion), with passengers carried increasing by 1.9 million or 23 per cent to 10.3 million, compared to 8.4 million for the first half-year of 2006-07. Seat factor improved to 79.7 per cent for the period, on 17 per cent higher seat capacity in terms of available seat kilometers.

Emirates SkyCargo performed well against a subdued global airfreight market, posting a revenue increase of 13 per cent to Dhs 3.0 billion (US$ 822 million), with cargo tonnage up by 10 per cent to 637,000 tonnes, compared with 577,000 tonnes for the same period last year. Cargo contributed about 19 per cent of the airline’s total transport revenue.

Operating costs were higher by 19.3 per cent whilst Airline unit cost per available tonne kilometre increased by 4.8 per cent to 134 fils. Fuel costs for the first six months remained the top expenditure item accounting for 27.8 per cent of total operating costs.

Emirates’ cash position, including held to maturity investments and capital guaranteed notes, on 30th September 2007 was healthy at Dhs 11.7 billion (US$ 3.2 billion), compared to Dhs 11.5 billion (US$ 3.1 billion) six months earlier. This was after paying dividends pertaining to the past financial year of Dhs 400 million (US$ 109 million) to the shareholder, and funding capital outflows of around Dhs 2.3 billion (US$ 621 million) that included aircraft pre-delivery payments and other capital items.

Since April 2007, Emirates has launched passenger services to five new destinations - Venice, Newcastle, Sao Paulo, Toronto and Ahmedabad, bringing its global network to 97 cities on six continents, including 10 cargo-only destinations. The airline will soon commence operations to Houston from 3rd December. In addition to new destinations, Emirates has also increased the frequency of passenger services and added capacity with larger aircraft to many of its existing destinations during the half year.

Emirates’ current fleet size is 111, comprising 29 Airbus A330-200s, 30 Boeing 777-300ERs, two Boeing 777-200LRs, 12 Boeing 777-300s, nine Boeing 777-200s, 10 Airbus 340-500s, eight Airbus A340-300s, and 11 freighters – eight Boeing 747Fs and three Airbus A310Fs.