ITB Berlin 2008 adds new section

A new trend is driving growth in the global tourism industry. Tourists and young business travellers who prefer budget accommodation on their travels are setting one of the major global travel trends of the future. Next year the ITB Berlin will be responding to this demand with a new section at the show – Economy Accommodation.

The leading travel trade show is the first to devote a platform to this booming segment of the market. Budget hotel chains, hostels, budget design hotels, youth hostels, internet portals and associations will be presenting their products and services in Hall 4.1 from 5 to 9 March 2008. A special event which takes place on Friday, 7 March 2008 at 2 p.m. in Hall 4.1 will also be focusing on the topic of budget hotels.

According to the latest survey by the US-based youth organisation STAY WYSE, 1.6 billion overnights are registered annually worldwide among travellers under thirty. Between 2005 and 2020 this market segment is expected to expand by 70 per cent. Travellers from China and India in particular will be responsible for worldwide growth. Price-conscious travel is thus becoming one of the most dynamic forces stimulating growth in the tourism industry – regardless whether travellers under thirty are on holiday, business trips or on their way to meetings and conferences.

Dnata Travel strenghtens regional expansion with presence in Qatar

Dnata Travel Services announced plans to expand into Qatar at the Dubai Air Show 2007. Dnata Travel Services signed a joint venture agreement with the Al Hashemi Group to establish a travel management organisation in the state of Qatar. This new partnership is part of Dnata’s strategic expansion plan to establish a strong regional network within the Gulf and Middle East.

The agreement was signed by HH Sheikh Ahmed bin Saeed Al-Maktoum, Chairman and Chief Executive, Emirates Airline and Group, for Dnata Travel Services and Abdulla A.M. Al Hashemi, Chairman of Al Hashemi Group. Also present at the signing were: Gary Chapman, President Group Services and Dnata; and Iain Andrew, Divisional Senior Vice President, Dnata Travel Services.

Iain Andrew, Divisional Senior Vice President said: “Dnata has firmly established itself as the leading agency in the UAE for travel management services. Over the past few years we have been looking to grow our network in the region. Dnata launched travel services in Kuwait and Afghanistan in 2004, and this was followed by Saudi Arabia in 2005. Our first Dnata Travel outlet in Abu Dhabi was inaugurated last week and we also have representation in Oman with the integration of MMI Travel with Dnata Travel Services.”

“We already have a blueprint to establish and grow Dnata's presence in Qatar, and we look forward to progressing these plans with our partners at Al Hashemi Group. Our aim will be to provide customers in Qatar with top-class professional travel management services, and a broad range of travel products through our various specialist divisions,” Andrew added.

Mr Abdulla Al Hashemi, Chairman Al Hashemi group said: “We are very pleased to be a part of Dnata’s network; through this partnership we can now offer a broad spectrum of travel products and services to both retail and corporate customers in Qatar. We look forward to serving our clients with a high level of professionalism and service.”

Dubai to get Mid East`s first aviation safety training academy

Dubai World Central Aviation City, which will be home to the world’s largest maintenance, repair and overhaul (MRO) centre in Jebel Ali, United Arab Emirates, has signed a land lease agreement with a Dubai company to set up the Middle East’s first independent aviation safety training academy.

Spatial Aviation Safety Training Academy (SASTA), a specialist provider of aircrew training solutions, will build the US$ 37 million (AED 136 million), 14,000 square metre facility to cater to commercial airlines, private and corporate jet operators, helicopter and light fixed wing crew.

The academy will also provide customised training for airport ground staff and management.

“This regional ‘first’ will significantly add to DWC’s proposition as a totally comprehensive aviation hub and provide a vital service to the industry within the Middle East who will be able to access world-class training without the costs of sending staff overseas,” said Abdulla Al Qurashi, CEO, DWC Aviation City.

“Aviation City will be a hub for global aviation training institutions who meet all international regulatory standards in order to bridge the gap between demand and supply to the full gambit of aviation providers regionally.”

SASTA’s safety training programme is compliant with ICAO (International Civil Aviation Organisation), JAR-OPS (Joint Aviation Regulations) and UAE’s GCAA (General Civil Aviation Authority) standards.

“Our vision is to establish SASTA as an exemplar provider of world class safety training programmes for the aviation industry, at Dubai World Central. We are excited and fully committed to play our part in the success of this truly historical project,” said Joseph McKeever, CEO, Spatial Training Solutions.

“The academy’s 40-strong staff managed by aviation industry experts will operate from a fully-equipped facility complete with an Airbus A300/310 and B777 full cabin simulator, real fire fighting trainer, ditching and water survival pool, a G500/550 Gulfstream, Hawker, Fokker and Airbus A318/A319/A320/ ,A321 and B737 door trainers. We anticipate its appeal will extend beyond the Middle East, to also service the rapidly-developing aviation sector within the Indian Sub-continent.”

The academy’s syllabus includes crew resources management, leadership courses, ‘Train The Trainer’ and aircrew safety and emergency procedures compliant with Civil Aviation Regulations.

The academy is to be operational by January 2009 when first flights will serve DWC’s Al Maktoum International Airport – set to be the world’s largest.

The US$1.4 billion (AED 5 billion) DWC Aviation City is a strategic aviation project launched within Dubai World Central (DWC) - the 140 square kilometre urban aviation, multi-phased development in Jebel Ali and will feature the MRO centre, repair and test as well as aircraft system and components installation facilities.

Emirates partners with Oemservices for A380 fleet

Emirates Airline and OEMServices have signed a 15-year co-operation agreement, securing the total support services of Diehl Aerospace, Liebherr-Aerospace, Thales and Zodiac for aircraft components fitted to Emirates’ fleet of Airbus A380 aircraft.

Under this agreement, OEMServices will be Emirates’ single point of contact for the supply of components and maintenance services for about 650 different rotable, repairable and expendable aircraft components.

Emirates will grant OEMServices exclusive access to its A380 component repair business, while OEMServices will guarantee just in time availability from its pool of A380 components to Emirates at its main base and its outstations - which reduces the need for Emirates to keep a large A380 inventory of its own.

The supply of components and maintenance services will be provided by OEMServices' founding partners: Diehl Aerospace, Liebherr-Aerospace, Thales and Zodiac (acting through IN-Services).HH Sheikh Ahmed bin Saeed Al-Maktoum, Emirates’ Chairman and Chief Executive, and Jean-Noel Barrere, President of OEMServices, formalized the multi-million dollar contract at the 10th Dubai Airshow.

Sheikh Ahmed said: “Emirates will have the largest A380 fleet in the industry, with 58 firm orders for this aircraft. The contract we are signing with OEMServices is an optimal arrangement that ensures the supply of components and maintenance services for Emirates’ A380 fleet in Dubai and around the world. We are confident that OEMServices has the expertise and commitment to deliver the results for Emirates, and we look forward to a long and fruitful partnership.”

Jean-Noel Barrere, President of OEMServices: “OEMServices and its founding partners are very proud of being selected by Emirates to provide a tailor-made full support solution for its A380 fleet.”

“By harmonizing the relevant processes and logistics and building on the strength, resources and assets provided by our partners Diehl Aerospace, Liebherr-Aerospace, Thales and Zodiac, OEMServices provides a superior customized solution which meets Emirates’ A380 support expectation. Our next challenge will be to expand our partnership with other OEMs so we may enhance our A380 product and services.”

EU Sees Boeing-Airbus Row Running Into 2009

A major transatlantic row over subsidies paid to Boeing of the United States and rival European planemaker Airbus could drag into 2009, the European Commission said on Tuesday.

"Only a few weeks ago, Boeing publicly rejected Airbus's latest olive branch," the European Union executive said in a statement to the European Parliament, drawn up by European Trade Commissioner Peter Mandelson.

"We are therefore skeptical whether this dispute can be resolved at the negotiating table any time soon," it said, adding a settlement remained the EU's favored option.

In the biggest trade dispute ever filed at the World Trade Organization, the United States and the EU three years ago swapped complaints over tens of billions of euros and dollars in government support for each other's aircraft industries.

In Washington, a spokeswoman for the US Trade Representative's office said the United States also preferred a negotiated settlement but was prepared to fight on.

"We continue to believe that a negotiated settlement that brings an end to WTO-inconsistent subsidies would be best. Meanwhile, we remain confident in a favorable outcome through litigation," USTR spokeswoman Gretchen Hamel said.

Tim Neale, a spokesman for Boeing, took issue with the commission's statement that Boeing had rejected an Airbus proposal for resolving the dispute.

"We are not aware of any EC or Airbus offers to resolve this dispute that would address the most market-distorting subsidies, namely launch aid," Neale said in a statement.

"Continuing launch aid is the biggest impediment to a 'fair and balanced' resolution of the dispute."

The commission said the WTO was likely to decide on the cases in 2008 but appeals could stretch the process into 2009.

"We would think that once the WTO will have decided in the two cases, it would make sense to sit together with the US to manage the resulting implications. Whether this might expand into proper negotiations, we are not sure," the statement said.

Although Boeing was waging a "damaging" campaign, including an attempt to block funds for improving US airports to accommodate Airbus's new superjumbo A380, the commission said that so far the row had not damaged EU-US trade relations.

"We intend to keep it that way. And we trust that the US will do the same, for example by ensuring that the Airbus-Boeing disputes are not allowed to affect either company's ability to compete fairly in public procurement competitions," it said.

"Notably, there should be no anti-competitive actions in legislation or executive policy that would improperly restrict the ability of EU companies to compete in the current US aerial tanker recapitalization program."

Boeing is competing against Northrop Grumman and its partner EADS, the parent company of Airbus, to build a new fleet of mid-air refueling planes in a USD$40 billion Air Force competition.

"Boeing has welcomed the competition Airbus and Northrop have brought to the tanker program. Competition makes everyone stronger," Neale said.

EU Body Adopts Strict Rules For Airline Emissions

Airlines flying in and out of the European Union should join the bloc's emissions trading system in 2011 and submit to strict caps on their output of greenhouse gases, the European Parliament has voted on Tuesday.

The EU assembly, in its first reading on a bill that has drawn ire from the United States and other nations, voted to set a tighter limit on aviation's carbon dioxide (CO2) emissions than first proposed by the European Commission.

It also set one date, 2011, for inclusion of internal EU and intercontinental flights and increased the number of carbon permits -- certificates that essentially assign rights to pollute -- that airlines would have to buy up front from EU governments instead of getting them for free.

The trading scheme is the 27 nation EU's key instrument to fight global warming. It sets limits on the amount of CO2 that industry may emit. Companies buy or sell permits based on whether they overshoot or undershoot their targets.

Airlines are not currently included and the EU wants to add them, to show world leadership on climate change and help meet an internal goal to reduce greenhouse gas emissions by at least 20 percent by 2020 compared to 1990 levels.

"We are ten years late," in tackling emissions from international aviation, said Peter Liese, the German conservative deputy who steered the bill through the assembly. "I don't think it's over ambitious. It's high time to do something."

Airlines attacked the vote as damaging to economic growth while environmentalists said it did not go far enough to fight climate change.

The Association of European Airlines, which represents carriers such as British Airways and Lufthansa, said it was "a massive blow to the viability and competitiveness of the European airline industry (and) a barely measurable step for the environment."

But environmental group WWF said the parliament "missed the opportunity to really curb the emissions of the fastest growing sector in Europe in terms of greenhouse gases."

The plan must now go to EU governments for potential changes. It must be approved by parliament and EU ministers before it can become law.

The parliament tightened the Commission's proposals across the board, though EU governments are unlikely to support many of the new requirements.

Lawmakers voted to increase the amount of permits that airlines must buy upfront at auction to 25 percent from 2011 and said the sector's cap should be set at 90 percent of average emissions from the period 2004-2006, tighter than the 100 percent proposed by Brussels.

The parliament set limits on the amount of permits airlines could buy from other sectors in the trading scheme and under the Kyoto Protocol while adding a "multiplier" that would take into account the effects of gases other than CO2.

It also voted to include government flights in the scheme while excluding all military flights.

Lawmakers rejected the Commission's proposal that intra-EU flights join the scheme in 2011 and all intercontinental flights from 2012, saying that adopting one date would ensure no airlines were at a competitive disadvantage.

Environment Commissioner Stavros Dimas had said the Commission believed a two-step approach would help convince other nations that the EU scheme was workable.

Qantas to buy up to 188 aircraft

QANTAS will buy up to 188 narrow body aircraft for short haul flights, growing its brands in Australia and Asia. The airline said the funding of the purchases won't affect its investment grade credit rating.

The new aircraft will be used to defend Qantas' minimum 65 per cent share of the Australian domestic market and to expand low cost services to South East Asia.

The plan also involves Jetstar opening new regional aviation bases in both Darwin and Perth over the next two years to serve fast growing Asian markets.

Most of the new aircraft will be Boeing 737-800s and Airbus A320s.

The order also includes larger A321 aircraft, which will have up to 213 seats, compared with 177 on an A320 in a Jetstar single-class configuration.

The first aircraft to arrive in February will be an A321.

"We expect to take at least 17 of those aircraft to expand Jetstar's opportunities in its fastest growing markets,'' chief executive Geoff Dixon said.

Qantas will acquire 68 A320/A321 aircraft and has 40 options and purchase rights.

It will also buy 31 B737-800 aircraft, and has 49 options and purchase rights.

"The firm aircraft will be delivered over a six year period, while options secured additional delivery slots through to 2017,'' Qantas said.

Mr Dixon said: "This decision, together with existing A380 and B787 fleet commitments, secures an order stream for next generation aircraft that will allow the group to meet long term demand growth and replace older aircraft over the next decade.

"The plan provides maximum flexibility to respond to changes in the market and competitive situation.

"In an environment where our customers have more options than ever before, this investment will ensure that Qantas and Jetstar continue to provide customers with superior network reach, choice and product.''

He said some of the Airbus aircraft would also be used to supply capacity to the group's Asian associates.

Qantas is preparing to receive its first superjumbo A380 aircraft in August 2008.

Jetstar will later launch the B787 Dreamliner to underpin the expansion of its low cost international services.

"We are confident that the orders we have placed provide the right aircraft, with the right product and right economics to ensure the continued success of Qantas and Jetstar both domestically and internationally,'' Mr Dixon said.

Saudi Prince buys A380 as private jet

Dubai: Luxury got a new dimension and a new name - A380 'Flying Palace' - as Saudi billionaire Prince Al Waleed Bin Talal on Monday signed a deal to buy the world's first end-to-end double-decker corporate jet, a deal valued at $319 million at list prices.

When delivered in 2010 with the latest amenities to ensure maximum comfort and luxury - Al Waleed will probably rewrite the best-known fairy tales that could depict the latest version of luxury - perhaps the best that money can buy.

Al Waleed, billed as the world's fifth richest Arab, on Monday stopped by Dubai International Airport for half an hour to sign the deal with Airbus chief executive Tom Enders, flanked by a battery of crew - all dressed in golden coloured outfits.

Al Waleed descended from his Boeing 747 corporate jet just before 1pm on Monday, flanked by his entourage and crew members.

"This is the first corporate jet for the Airbus A380 to be sold and we are all proud of the first of its kind deal," John Leahy, Airbus chief operating officer, told Gulf News minutes after the signing ceremony.

"The value of the deal is about $319 million including the engines, however, excluding the interiors, which have not been decided yet."

Al Waleed toured the aircraft and came out smiling, accompanied by the officials of his Kingdom Holdings, before boarding his Boeing 747 corporate jet around 1:30pm.

The A380 will be powered by Rolls-Royce Trent 900 engines. It will undergo a cabin outfitting at a yet to be chosen completion centre.

"Prince Al Waleed's order means that Airbus' sales success in the corporate jet market now extends from its smallest aircraft, the A318 Elite - all the way up to its largest, the A380 Flying Palace," Leahy said.

He expects to sell about 20 A380 Flying Palaces in the coming years, including a sizeable number from the Gulf.

AIRPORT NEWS

Thousands attend Changi Terminal 3’s open house

The first public opening of Singapore Changhi Airport’s Terminal 3 (right) yesterday attracted more than 2,000 visitors.

The airport operator has arranged an open house at the terminal, which is due to open for commercial flights on 9 January next year.

The airport is expecting some half a million people to attend its open house over the next four weeks.

Changi’s winter season launches with record flights

Right: An extra 100 flights per week have been added to Changhi's winter season

Singapore Changi Airport launched its northern winter season on 28 October with a record 4,300 weekly scheduled flights. This represents an increase of more than 100 weekly flights compared with the northern summer season between 25 March and 27 October 2007.

Lim Kim Choon, director general and chief operating officer of the Civil Aviation Authority of Singapore (CAAS), says, “Leading this growth is increases in flights to south Asia and north Asia, in particular the Indian sub-continent. This is not surprising, given that India and China are Singapore’s fastest growing markets for business and tourism.”

Brunei commissions airport master plan

The Government of Brunei has commissioned a master plan for Brunei International Airport that could herald a major programme of improvement work.

The Department of Civil Aviation says the master plan, which is expected to be ready by July next year, will look at infrastructural development strategies and terminal needs, emphasising priority improvement needs.

Brunei’s director of civil aviation, Pengiran Abdul Rahman Ismail, says it has not yet been decided whether to expand the existing airport terminal or build a new one. “We need to wait for the consultancy study to be completed to consider the number of options that will be short-listed to be implemented for the development of the airport.”

Touch-screen check-in to dominate at T5

Right: Increasing numbers of Heathrow passengers are opting to use self-service check-in facilities in preference to queuing

British Airways predicts that around 80% of its passengers travelling via Heathrow’s Terminal 5 will check-in online or using touch-screen check-in machines.

The high predicted level of self-service take-up at the new terminal, which opens next March, reflects a growing trend at the airport, says operator BAA.

A spokesman for BAA says British Airways, Virgin and United already operate touch-screen check-in machines at the airport and other major airlines with a large presence at Heathrow are now following suit.

“The feedback we’re getting from these airlines is that significant numbers of people are using the machines,” he adds.

Heathrow to offer state-of-the-art parking

Right: New car park promises to reduce congestion and pollution at Heathrow


Heathrow is about to unveil a high technology car park at Terminal 5, which is due to open next March. The automated system will take a photo of each car’s license plate as it enters, and direct the driver to a vacant space using illuminated arrows and an infrared camera tracking system. The car park ticket retains details of the parking space, so when the user returns to the pay kiosk, a digital display directs him or her to the car. Heathrow officials claim the system will reduce traffic and cut carbon emissions by 397 tonnes per year.

"Third Screen" Revolutionising Travel Marketing in Asia

LONDON, UNITED KINGDOM- Mobile phones are becoming one of the most important communication tools between the travel industry and Asian consumers according to the World Travel Market Global Trends Report 2007 released today in partnership with market intelligence firm Euromonitor International.

The report identified mobile phones as a highly influential marketing tool, calling it the "third" screen following television and the internet. Penetration rates are particularly high in Hong Kong, Singapore and Taiwan which reached 124%, 103% and 102% respectively and are expected to continue to grow by 3-4 percentage points each year until 2009.

Several regional travel and tourism players have already responded to the importance of SMS as a communication tool. Philippine Airlines and Cebu Air provide SMS ticketing and Singapore Airlines sends SMS ticket confirmation services to local travellers. Australian based online travel operator, zuji.com has divisions in Singapore, Hong Kong, Taiwan, South Korea and Australia and sends out tailored SMS promotions to subscribers.

Clement Wong, Euromonitor's International's Global Travel and Tourism account manager comments: "Asians love their phones and as the world's leading region of users, we expect they will become the new way of doing business for the travel industry in that part of the world.

"The mobile phone revolution in Asia presents a dynamic and convenient channel, especially with SMS messaging, mobile TV and internet and recently, mobile blogging. With information sharing in the palm of their hands we expect marketing opportunities for tourism to grow nearly 200 per cent over the next five years."

Halal Tourism: Untapped potential for Middle East

REPORT - LONDON - WTM 2007: Despite vastly differing requirements, Middle East tourism is missing out by targeting Muslims and non-Muslims in exactly the same way, according to the World Travel Market Global Trend Reports 2007 released Monday 12 November 2007, published in partnership with market intelligence company Euromonitor International.

“This represents an important, untapped potential and a business opportunity for Halal tourism which is a form of religious tourism defined as activities permissible under Islamic law”, said Fiona Jeffery, Chairman of World Travel Market.

The report, released on the opening day of the leading industry business-to-business event in London, forecasts the number of inbound tourists to the Middle East will grow by 66%, reaching 55 million visitors by 2011.

“A large proportion of these will be intra-regional, boosted by increased transport connectivity between cities and better infrastructure”, said Jeffery.

Ms Parita Chitakasem, Asia Pacific and Australasia Travel and Tourism Manager said: “As witnessed by the continued number of religious tourists visiting the Iraq, Halal Tourism has the potential to develop into one of the most resilient forms of tourism.”

“The Vatican set up its own budget airline to transport pilgrims to holy sites in 2007 and there is potential for the development of a Halal to start up its own airline. Such an airline could provide Halal food, calls for prayer, Korans in seat pockets, religious programmes on the inflight entertainment system and separate sections for male and female passengers.”

“Another potential option is to explore women only hotels to overcome Muslim women being unable to book hotel rooms without a male guarantor, which is the case in Saudi Arabia.”

Tourism revenue in the Middle East is expected to grow by 108% to almost $51 billion and domestic tourism by 82% to reach $24 billion in 2011.

Most of this expansion stems from inbound travellers, underlining the need for tailored Halal tourism products and services that are developed within the region to cater to this dynamic market.

India plans to create a splash in the cruise market

India is gearing up to relaunch itself as a major cruise destination. Ports selected for upgraded cruise facilities include Mumbai, Mormugao (the port city of Goa); Cochin in Kerala, New Mangalore on the southwest coast and Chennai on the east coast.

Speaking at World Travel Market, Leena Nandan, Joint Secretary to the Government of India, Ministry of Tourism, said: “Cruise operators are more than ever searching for new destinations and itineraries and India’s reputation as an enchanting, exotic and historical destination lends itself ideally to becoming a major port of call.”

Ms Nandan said India was well-located to create and expand regional cruise itineraries. The country’s rapidly-expanding tourism figures (both overseas and domestic traffic) meant that India could support a burgeoning cruise market.

Outlining the Government of India’s proposed cruise shipping policy, Ms Nandan said: “Our aim will be to try and tempt cruise passengers into returning to India for a longer stay.

“We aim to ensure that India’s cruise industry is competitive with other international destinations – and that as well as developing existing ports, we also explore other possible anchoring sites around the Indian coast.”

Ms Nandan said the government had set a target of attracting 100,000 cruise passenger landings a year by the end of 2010.

There are also plans for more aggressive marketing of river cruises which are currently available on the Mandovi and Zuari rivers in Goa, the Brahmaputra in Assam, the Hooghly River in West Bengal and the backwaters of Kerala.

India's newest tourist region is on the doorstep of Delhi

The north Indian state of Haryana has set its sights on becoming one of the country’s most popular tourist regions. Stretching from the outskirts of Delhi to the borders of four other states including Punjab and Rajasthan, the Haryana border is just six kilometres from the Indira Ghandi International Airport, India’s busiest gateway.

Only a separate state since 1966 when the Punjab was divided in two, Haryana is a historic and prosperous region of green fields and small resorts; ideal for a relaxing day trip from Delhi – or a longer break.

Golf, farmhouse holidays and cultural tourism are among the niche markets Haryana is hoping to cultivate.

Speaking at World Travel Market, Haryana’s tourism minister Mrs Kiran Choudhry said the state’s tourism infrastructure was developing very quickly - helped enormously by the Indian Government’s decision two years ago to massively reduce bureaucracy. This had simplified many rules and regulations which had enabled greater foreign investment and actively encouraged privatization.

“Haryana has also been pioneering the concept of Highway Tourism which has seen beautiful tourist complexes being constructed close to some of the major roads passing through the state,” she said. “Each resort includes hotels, motels, bars, fast food centres, health clubs and conference halls.”

Mrs Choudhry highlighted a two-day tour known as the North India Circuit which starts in Delhi and includes the heritage city of Kurukshetra, regarded as the birthplace of the Vedic civilization – the earliest civilization in Indian history - where there are no fewer than 860 places of pilgrimage. Mrs Choudhry said Kurukshetra was now being promoted as an international tourist destination.

The plans will be outlined at a World Travel Market press conference on Tuesday November 13, 2007 at 15.00. The press conference is being held in Rooms 14 & 15, North Gallery at the ExCeL exhibition centre.

Kuoni continues to grow

The Kuoni Group’s total turnover for the first nine months of 2007 was a 14.8% improvement on the same period last year as the company announced. Organic growth accounted for 4.9 percentage points of this turnover increase. EBIT for the period showed even greater growth of 17.2%. Free cash flow stood at a record CHF 218.1 million.

Strategic Business Units Asia & Destination Management and Scandinavia posted excellent results for the period, while Strategic Business Unit Europe delivered an encouraging performance. Kuoni Switzerland saw the launch of a restructuring programme to raise its currently-weak margin performance. At Kuoni UK, the new management is now in place and is currently devising the actions required to bring the unit back onto a successful track.

The Kuoni Group further expanded its strong position in the specialist segment through the acquisitions of CV Travel (UK), Les Ateliers du Voyage (France) and UTE Megapolus (Russia), while the acquisition of Denmark - based tour operator Falk Lauritsen Rejser A/S strengthened Kuoni’s position in the Danish travel market.

The structural adjustments announced under the present corporate transformation are proceeding according to plan.

From its current perspective, the Kuoni Group expects to post turnover of more than CHF 4.5 billion and an EBIT of more than CHF 130 million for 2007 as a whole.

January to September 2007

In a market environment characterised by further industry consolidation and substantial pressure on margins, the Kuoni Group raised its total turnover by a sizeable 14.8% in the first nine months of 2007, from the CHF 3 062 million of the prior-year period to CHF 3 515 million. Organic growth accounted for 4.9 percentage points of the turnover improvement, the net impact of acquisitions and divestments accounted for 7.2 percentage points and currency movements had a net positive impact of 2.7 percentage points.

Gross profit for the period stood at CHF 756.6 million, a 16.5% improvement on the CHF 649.6 million of January-to-September 2006. Gross profit margin rose from 21.2% to 21.5%. Earnings before interest and taxes (EBIT) were increased 17.2%, from the CHF 88.3 million of the prior-year period to CHF 103.5 million. The EBIT result includes investment of CHF 4.9 million in expanding the activities of online distributor Shoestring, CHF 4.6 million of expenditure to date on the ongoing corporate transformation and around CHF 9 million (prior year: CHF 2 million) of acquisition-related amortisations of intangible assets in accordance with IFRS 3.

The balance sheet on September 30, 2007 showed equity of CHF 600.8 million (unchanged from December 31, 2006). The balance sheet equity ratio declined from the 33.5% of the end of 2006 to 28.4%, as a result of seasonal variations in the balance sheet total. Cash flow from operating activities amounted to CHF 242.5 million (which compares with CHF 205.1 million for January-September 2006), while free cash flow stood at a record CHF 218.1 million (compared to CHF 177.4 million for the prior-year period).

Third-quarter results

Kuoni Travel Holding Ltd. generated total turnover of CHF 1 488 million for the third quarter of 2007, an increase of 13.7% on the prior-year period. Of the overall increase, 4.6 percentage points were attributable to organic growth, 6.3 percentage points to the net impact of acquisitions and divestments and 2.8 percentage points to the net positive impact of currency movements. Gross profit totalled CHF 330.0 million, an 18.7% increase on the CHF 278.0 million of the prior-year period. Third-quarter gross profit margin rose accordingly from 21.2% to 22.2%.

The EBIT margin of 6.6% was a slight decline on the 6.7% of the third quarter of 2006. EBIT itself was increased 11.4%, from the CHF 87.8 million of the prior-year period to CHF 97.8 million. The net result for the period amounted to CHF 95.7 million, a substantial 21.8% improvement on the third quarter of last year. The results were buoyed in particular by highly encouraging developments at Strategic Business Units Asia & Destination Management and Scandinavia. As was expected, the favourable overall Group results were depressed to some extent by performances in the Swiss and UK markets.

In Switzerland, where the market is currently proving very difficult, the problems have already been identified and reported on. A restructuring programme has now been launched to improve the unit’s currently-weak margin performance. Strategic Business Unit Switzerland posted turnover of CHF 323 million for the third quarter of 2007, broadly unchanged from its prior-year level, but raised its EBIT result for the quarter by 6.5%, from CHF 19.9 million to CHF 21.2 million. Kuoni Switzerland again earned several “best Swiss tour operator” awards and distinctions during the third-quarter period.

Strategic Business Unit United Kingdom is also still short of its objectives, as was outlined in connection with the Kuoni Group’s first-half results. Third-quarter turnover was increased 23.8% from the CHF 172 million of 2006 to CHF 213 million; but EBIT declined 43.8%, from CHF 14.6 million to CHF 8.2 million. The new management installed in summer is currently devising the actions required to bring the unit back onto a successful track.

Strategic Business Unit Scandinavia posted exceptionally good third-quarter results. The CHF 338 million turnover for the period was a 17.8% improvement on the CHF 287 million of July-to-September 2006, while EBIT for the quarter was raised by an outstanding 50.8%. Strategic Business Unit Asia & Destination Management also showed highly favourable third-quarter developments, raising its turnover 21.3% from CHF 314 million to CHF 381 million and achieving a 36.4% improvement in its EBIT result. Strategic Business Unit Europe increased its third-quarter turnover 12%, from CHF 234 million to CHF 262 million.

Outlook for the year

Booking levels as of November 11, 2007 for the Kuoni Group’s tour operating business were 14% above their 2006 equivalents. Bookings are especially encouraging for the Christmas period, with travel arrangements to the Maldives, Thailand and Egypt proving particularly popular.

The implementation of the present corporate transformation is proceeding according to plan. The new structure will put brand management – which is so crucial to Kuoni’s success – clearly centrestage in all future Group development.

Kuoni expects to record total turnover of more than CHF 4.5 billion and an EBIT of more than CHF 130 million for 2007 as a whole.

Qatar Airways Orders 60 Boeing 787-8 Dreamliners And 32 Boeing 777s

His Excellency Sheikh Hamad bin Jassim Bin Jabor Al Thani, Prime Minister and Foreign Minister of the State of Qatar, is pictured second left after the official signing ceremony of the Boeing and GE engine order at the Dubai Air Show. With him from left are: General Aviation President and CEO Scott Donnelly, Qatar Airways Chief Executive Officer Akbar Al Baker and Boeing President and CEO Scott Carson

Dubai, UNITED ARAB EMIRATES - Qatar Airways today announced an order for 30 firm and 30 option Boeing 787-8 Dreamliners, together with confirmed orders for 27 Boeing 777s and an additional five options.

Guest of honour, His Excellency Sheikh Hamad bin Jassim Bin Jabor Al Thani, Prime Minister and Foreign Minister of the State of Qatar, presided over the official signing ceremony and announcement at the Dubai Air Show.

Details of the order were unveiled during a press conference attended by senior executives of both companies together with GE Aviation, which will supply engines for the aircraft.

Addressing media in Dubai this afternoon, Qatar Airways Chief Executive Officer Akbar Al Baker said: "We are proud to join the growing list of Boeing 787 customers. With deliveries from mid-2010 through to 2014, the 787 will form the core of Qatar Airways regional and medium-haul fleet from the next decade and its optimum size and outstanding fuel efficiency and economics will underpin the airline's profitability and competitiveness as it builds its hub at Doha's new international airport."

Pictured at the official signing ceremony of the Boeing order at the Dubai Air Show today are from left; General Aviation President and CEO Scott Donnelly, Qatar Airways Chief Executive Officer Akbar Al Baker and Boeing President and CEO Scott Carson

Al Baker said the decision to opt for the Boeing 787 was taken following a detailed analysis of the airline's future aircraft needs over a period of three years, including significant inputs to the 787's original definition and specification. The Boeing 787 order is for the 787-8 version with options to convert to the 787-9 variant.

"Later this month, Qatar Airways takes delivery of the first of its 27 firm Boeing 777s, which signals our first move to induct Boeing aircraft into our fleet," he said.

Qatar Airways has confirmed orders for 14 777-300ERs, 6 777-200LRs and 7 777-200Fs, with deliveries beginning later this month and running until mid-2010. The two passenger 777 variants will facilitate a major expansion in the airline's long haul passenger network. The 777-200 freighters, which will be delivered from 2009, provide outstanding economics enabling Qatar Airways to build up an efficient cargo hub linking Europe and Asia, supplemented by its regional widebody freighters and belly capacity.

Qatar Airways CEO Akbar Al Baker is pictured, left with Boeing President and CEO Scott Carson exchanging gifts after the aircraft order announcement.

Added Al Baker: "I am pleased to say that the Boeing 787s and 777s will strengthen our partnership with Boeing for years to come. Our passenger fleet is among the youngest and eco-friendly in the world with a projected average age of just over three years by next year."

The aggregate value of the 30 Boeing 787s and 27 Boeing 777 firm aircraft is estimated at US$13.5 billion at catalogue prices.

All of the aircraft acquired by Qatar Airways from Boeing will be equipped with General Electric engines. Al Baker added: "The choice of the GEnx and GE90 powerplants to power the airline's new Boeings will further cement the excellent working relationship already established with General Electric on its CF6 programme."

Air Arabia Sees Mideast Traffic Growing

Air Arabia, the Middle East's only publicly listed carrier, said it expects regional passenger traffic to grow by an average 7.1 percent per year during the next eight years, faster than the global average.

Sharjah, United Arab Emirates-based Air Arabia, the region's largest low-cost carrier, said on Tuesday it would benefit from "strong air traffic growth projected in our target regions" and "highly favorable home and regional market dynamics."

The airline, which this year raised USD$700 million in an initial public offering, on Monday ordered 34 aircraft from Airbus, with options for 15 more, in a contract worth up to USD$3.5 billion. These will replace the 11 aircraft it leases now.

Middle East cargo traffic should grow 5.3 percent per year during the decade to 2015, compared with 6 percent globally, the carrier said in a presentation that it will give to investors in New York during the next three days.

The presentation was posted on the web site of the Dubai Financial Market, which is organizing the meeting with 13 Dubai-listed companies.

Air Arabia carried 1.76 million passengers last year, and 1.96 million in the nine months to September 30, with the Indian subcontinent its biggest market, followed by other Gulf Arab states, according to the presentation.

Shares of Air Arabia have almost doubled in value since they listed in July. The company started in 2003.

Singapore Airlines And China Eastern Airlines Launch Interline E-Ticketing

Customers travelling on Singapore Airlines and China Eastern Airlines can now enjoy the benefits and convenience of requiring just one electronic ticket (e-ticket) for the entire journey.

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

“Singapore Airlines is pleased to announce the launch of interline e-ticketing with China Eastern Airlines which allows all our customers to enjoy the benefits of paperless travel,” said Mr Huang Cheng Eng, Singapore Airlines’ Executive Vice President Marketing and the Regions.

“With interline e-ticketing, travel processes are streamlined and check-in procedures are made simpler and more convenient. We are especially delighted to initiate e-ticket cooperation with China Eastern so quickly and this is one sign of the partnership being built between both airlines.”

This interline e-ticketing arrangement is Singapore Airlines’ 100th e-ticketing cutover. Singapore Airlines first offered e-tickets to passengers in 1997 and now e-tickets are available to customers travelling to any of its 65 destinations.

The Airline has also established interline e-ticketing arrangements with all of its Star Alliance partners and plans to conclude interline e-ticketing arrangements with all 156 interline partners in the coming months. With this arrangement customers can benefit from the e-ticketing facility when they travel on any itinerary involving a connection onto another airline.

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.