EMIRATES’ A380s TO WING THEIR WAY EAST AND WEST

DUBAI, U.A.E., 2nd March 2008 – Emirates’ giant Airbus A380s will spread their wings to some of the furthest points on the airline’s network – New York, London Heathrow, Sydney and Auckland – reinforcing the airline’s extensive reach and span.

Emirates is scheduled to operate its new A380s non-stop from Dubai to New York on 1st October, London Heathrow on 1st December, and Sydney-Auckland on 1st February 2009. The aircraft on these routes will offer 489 seats – 14 in First Class, 76 in Business and 399 in Economy.

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Emirates’ giant Airbus A380s will spread their wings to some of the furthest points on the airline’s network – New York, London Heathrow, Sydney and Auckland – and by the end of the decade become a familiar sight to millions of travellers worldwide.

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Tim Clark, President Emirates Airline said: “Our A380s will take to the skies in late summer, signalling an end to our long wait and ushering in a new era for Emirates. We have played an integral role during the design and development stage to tow the aircraft from the drawing board to the production line, and we look forward to bringing them into commercial service.”

"While we are still debating our first commercial A380 route, it has always been our intention to fly the aircraft on capacity-constrained trunk routes. The cities that we have now scheduled for A380 services, starting this autumn, bring our plans to fruition."

He added: “Our customers can rightly anticipate an exhilarating experience on the state-of-the-art aircraft, which will be especially appointed and equipped to Emirates’ exacting standards. We will unveil our exciting inflight features and facilities shortly.”

Emirates, the first, and by a large margin, the leading customer for the A380s with 58 on order, will take delivery of five of the double-decker aircraft this year. Other configurations in the A380 fleet will feature a medium-range three-class 517-seater; and a medium-range two-class aircraft with 604 seats.

The arrival of the first Emirates A380 will prove to be a major milestone for the airline as it takes the first step in the gradual build-up towards becoming the world’s largest operator of the super-jumbo. By the end of the decade, Emirates' distinctive livery colours on the A380 will have become a familiar sight to millions of travellers worldwide.

With a route network that currently spans over 90 destinations in 62 countries, Emirates will launch services to Cape Town on 30th March. The airline has also announced services to Kozhikode (Calicut) from 1st July.

Biman Bangladesh Airlines considers fleet order

Biman Bangladesh Airlines confirmed it is considering bids from Boeing and Airbus for a total of 12 aircraft. A decision is expected by 15-Mar-08.

According to Reuters, Biman's Managing Director M. A. Moman stated, “we will evaluate both the offers soon and will make a decision, as we badly need aircraft to maintain flight schedules”.

A shortage of funds and aircraft forced Biman to suspend services to New York, Paris, Tokyo, Frankfurt, Brussels, Yangon and Mumbai in 2006.

The carrier reported a USD100 million net loss in the 12 months ended 30-Jun-07, due to rising fuel prices and weak passenger demand. The government has since launched an emergency rescue plan, which included transforming the carrier as a public company in Jul-07 and retrenching a large number of staff.

Biman currently operates to 19 international destinations with a fleet of 12 aircraft.

SpiceJet to launch international operations by 2010

SpiceJet confirmed it was keen to launch international operations within the next three years, and is reportedly considering destinations with large migrant populations, such as the Gulf, Southeast Asia and Central Asia region.

Executive Chairman, Mr Siddhanta Sharma, confirms, “if the government relaxes the present rules, then we would fly even earlier, otherwise we plan to fly overseas by June 2010”.

India’s current policy stipulates Indian carriers must have five years’ operating experience in the domestic market before gaining rights to launch international routes.

SpiceJet plans to deploy a fleet of ten aircraft on initial international operations, and from 2013 will consider expanding this fleet, depending on the future environment.

Meanwhile, SpiceJet announced plans to launch operations from Visakhapatnam on 30-Mar-08. The carrier plans to launch daily services to Mumbai and New Delhi, and twice daily services to Hyderabad, using new B737 equipment

Visakhapatnam becomes the carrier’s 19th domestic destination in India.

Jazeera Airways to fly to Istanbul

Jazeera Airways announced plans to operate a three times weekly, non-stop service from Kuwait to Istanbul, commencing from 29-Mar-08.

Jazeera Airways currently operates a fleet of six A320s and will increase its fleet size to 40 by 2014. The carrier now operates 26 non-stop services to destinations throughout the Middle East, North Africa, Europe, Iran and the Maldives from hubs in Kuwait and Dubai.

AirAsia X Gets Two New Investors

Japanese leasing firm Orix and Bahrain-based Manara Consortium have taken a 20 percent stake in Malaysian budget long-haul carrier AirAsia X for MYR250 million ringgit (USD$77.26 million), the airline said on Thursday.

The airline, which counts British billionaire Richard Branson as a shareholder, said Manara, comprising four Saudi investment groups and Orix, would each receive 16.7 million new shares of AirAsia X.

"The share placement represents an important phase of AirAsia X's growth plans with proceeds raised from the transaction allowing the airline to fund aircraft orders already placed with Airbus and further fleet expansion," AirAsia X said in a statement.

The airline, 16 percent owned by Malaysian budget carrier AirAsia, has ordered 25 Airbus A350 planes.

Following the share placement, Aero Ventures, which is owned by AirAsia Chief Executive Tony Fernandes and his business associates, would hold 48 percent of AirAsia X and Britain's Virgin Group, controlled by Branson, a 16 percent stake.

AirAsia X, which currently flies from Kuala Lumpur to Australia's Gold Coast and Hangzhou in China, aims to fly 10 million passengers a year within five years and expects to list its shares on the Malaysian stock exchange by 2010. (Reuters)

Korean Air To Buy 3 More Airbus A380s

Korean Air will purchase an additional three A380 superjumbo jets from Airbus on top of five jets it had earlier agreed to buy, a company official said on Wednesday.

The additional purchase by South Korea's largest carrier came through exercising an option contained in the original contract, the official added, but declined to give the value of the deal.

Delivery of the planes in the contract will start in 2010. (Reuters)

Tourism acting on climate and poverty imperatives

The tourism sector has the potential to act effectively on the evolving common agenda of climate change response and the fight against poverty. UNWTO put forward this message during the thematic debate "Addressing Climate Change: The United Nations and the World at Work", at UN Headquarters in New York.

“This is the message that we took to the UN Conference on Climate Change in Bali. It fits into the road map laid out by Secretary-General Ban Ki-moon for the broader UN System Agenda. UNWTO’s position has evolved through a comprehensive preparation which started back in 2003 with a shared vision of three Agencies - UNWTO representing tourism, the United Nations Environment Programme representing environment and the World Metereological Organization representing science that we will need to act comprehensively on this issue. Throughout last year we brought together all the key Tourism players to draw up guidelines for a more climate conscious future and to support the MDGs”, said UNWTO’s Secretary-General, Francesco Frangialli. “The resultant “Davos Declaration Framework” gives us both principles and new directions for the task ahead.”

Throughout 2008 UNWTO will campaign for a constructive approach by the tourism industry – public, private and civil society – calling on them to work together to support the Davos Declaration Framework to help transform the sector to meet the climate and poverty imperatives. “Tourism Responding to the Challenges of Climate Change” has been designated as the theme for this year’s World Tourism Day, celebrated every September 27 around the world.

Tourism is one of the main services exports with a strong comparative advantage in the world’s poorest and emerging countries. These are markets that are growing at twice the rate of industrialized countries. At the same time our product is tied to climate and like other sectors we are green house gas contributors. Responsible growth patterns must now address economic, social, environmental and climate sustainability.

“This is the quadruple bottom line challenge which is at the heart of our campaign” according to UNWTO Assistant Secretary-General Professor Geoffrey Lipman who addressed the Assembly Session. “UNWTO will mobilize its more than 150 Member States and its Affiliate Members in the private, academic and destination communities, representing a network of thousands around the world in an effort to raise awareness of the magnitude of the challenge and contribute to the global response.”

Airport privatisation and environment: two leadership challenges for Japan

The International Air Transport Association (IATA) delivered two leadership challenges to Japan: (1) to make the privatisation of Japan’s airports an example of global best practice and (2) to champion efforts towards a zero carbon emission industry at the upcoming G-8 Summit to be held in Japan.

Giovanni Bisignani, IATA’s Director General and CEO raised the challenges in a keynote speech hosted by the international business community in Japan.

Airport Privatisation

Amid the debate in Japan on caps for foreign ownership of Japan’s privatised airport assets, Bisignani said, “I don’t care who owns the airport. That is for politicians to decide. For the economy, an airport is important for what it delivers.”

Bisignani noted that airport performance is measured in three key areas. “Airports must deliver adequate capacity to ensure that markets are well served. They must ensure service levels that meet customer expectations. And they must do that at prices that reflect efficiency. It is not rocket science. It is just good business,” said Bisignani.

“Providing the right incentives is the most critical part of the privatisation process. We have seen too many privatisations fail because governments sold the crown jewels without appropriate guidance and incentives for the new owners. Effective and transparent economic regulation is in the interest of everybody, including the potential new owners. They will want to clearly understand what they are buying and what the expectations are. I look forward to working with the MLIT and the airports to ensure that the world’s largest airport privatisation to date will also be the most successful,” said Bisignani.

Environment

Aviation is 2% of global carbon emissions. IATA has aligned the industry with a four pillar strategy to address climate change: (1) invest in new technology, (2) fly planes effectively, (3) build and operate efficient infrastructure and (4) call for positive economic incentives to encourage improved fuel efficiency and a reduction in CO2 emissions. This strategy, along with a target to improve fuel efficiency 25% by 2020, was endorsed by the States of the International Civil Aviation Organization at their Assembly in September 2007.

“Now it is time for results,” said Bisignani. “Japan’s plans to implement performance based navigation systems at its top 20 airports by 2012 will reduce fuel burn by 2% and save 162,000 tonnes of CO2 annually. This is a great example of our strategy at work.”

In June 2007, IATA put forward a vision for air transport to achieve carbon neutral growth, leading to a zero carbon emission industry. “As the host of this year’s G-8 Summit, Japan must take a leadership role in the climate change debate. I encourage the Japanese government to push the G-8 leaders to aim high and build the political will to achieve a zero emission industry. We went from the Wright Brothers to the jet age in 50 years. If government and industry are aligned, I am convinced that together we can turn dreams into reality,” said Bisignani.

Thomas Cook trading for winter and summer 08 continues steady growth

Thomas Cook trading for winter 07/08 and summer 08 continues to be encouraging and "we are in a strong position for the rest of the year", as the tour operator stated. The Board continues to look to the future with confidence. In the short term, the company is encouraged by the business’s performance since the year end and ongoing current trading.

"In the longer term, merger synergies of at least €200m provide a sound platform for the achievement of our target of at least €620m operating profit in 2009/10," said Thomas Cook.

Financial Performance

The unaudited Group operating loss before exceptional items and amortisation of business combination intangibles in the two months to December 2007 was reduced by €39.6m, or 27%, to €106.8m (2006 pro forma loss: €146.4m). The result for this period is in line with the company's expectations and reflects the seasonality of its business.

The improved Group operating result reflects costs savings and improvements in underlying margins, partially offset by increased costs of fuel. Significant year on year improvements were seen in the UK and Continental Europe with smaller improvements reported in Airlines Germany and North America. Northern Europe continued to perform strongly, in line with the prior year. Corporate costs were broadly flat year on year.

The improvement in the UK reflects cost savings achieved through the integration process. In Continental Europe, the company has seen a strong start to the year in Germany, with improvements in margins achieved and lower overhead costs than in the prior year.

In Airlines Germany, increased volumes in third party and seat only business have resulted in improved margins year on year. In North America, Thomas Cook has also achieved improved margins despite the continuing difficult trading conditions in Canada.

Operating exceptional items in the period were €9.9m, and largely reflect the continued integration of the UK businesses. Amortisation of business combination intangibles amounted to €14.9m.

Acquisition of hotels4U.com

The Group also announced that it has agreed to acquire the entire issued share capital of hotels4U.com Limited from Centurion Holiday Group Limited. The initial consideration, net of amounts to be reinvested by Haim Perry, MD of hotels4U and Jacky Bedlow, Finance Director, is £21.8 million payable in cash from internal resources. The management’s reinvestment is subject to earn out arrangements based on the profitability of hotels4U up to 2013.

Austrian resumes service to Erbil

Three flights a week to Iraq from 2 April onwards, four flights a week from June.

For Austrian Airlines, the highest priority at all times is the safety of the passengers and employees of the company. Additional improvements for more security have been implemented during the last months together with the local authorities.

Having conducted a detailed examination of conditions in Iraq, and based on the security situation as it stands at present, Austrian Airlines will resume flights to Erbil from 2 April 2008 onwards. The situation in the region is still being continuously monitored in cooperation with the security authorities, enabling the company to act without delay in the event of any irregularities or changes in the situation.

Three flights a week (on Mondays, Wednesdays and Fridays) are planned for April and May and four a week (including Sunday) from June onwards. As a result, a direct service to Erbil will be reincorporated into the Austrian route network, opening up numerous new connecting flights for passengers.

Austrian Airlines was the first European airline to receive landing rights in Iraq. The route to Erbil, which was opened up on 11 December 2006, developed extremely positively.

Due to the strong demand at the time, it proved possible to expand the service from two connections a week at first to four connections a week. The flights had to be temporarily removed from the schedule from 24 August 2007 onwards following a reevaluation of the security situation.

From end-September 2008 onwards, the new Premium Service, in which the Business Class sections of four Airbus A320 will be equipped with 24 Business Sleeper Seats by Recaro, will also begin operating on the route to Erbil.

Features of the new service including 116 cm of legroom between seats, a pleasant angle of recline, electronically adjustable back- and footrests and an integrated massage function are guaranteed to provide relaxing travel conditions.

CAAS awards contract for upgrading of Changi Airport T1

The Civil Aviation Authority of Singapore (CAAS) has awarded the tender for the project to upgrade Singapore Changi Airport’s Terminal 1 to Takenaka Corporation. The upgrading works will commence in May 2008 and are scheduled to be completed in 2011. The works, at an estimated project cost of about $500 million, will rejuvenate the 27-yearold terminal and enhance the passenger experience at Changi Airport.

The concept for Terminal 1’s face lift is “Tropical City”. Works will refurbish the terminal’s interior design and finishes, as well as improve passenger flow at key areas. Areas to be upgraded include the exterior façade, Departure Kerbside, Departure Checkin Hall, Departure Transit Mall and Arrival Hall.

In line with the theme, the architectural and interior design will create a warm and familiar feeling for travellers. Landscaping will be integrated with the interior design to maintain the original warmth and welcoming ambience of the terminal.

On top of enhancing the aesthetics of the terminal, the processing capacity of key areas, such as the Departure Check-in Hall, will be improved. Older sections of the finger piers will be expanded and seating in the gate holdrooms enhanced.

As part of Terminal 1’s upgrading works, services and facilities offered will be improved. The building will also be expanded to allow for the provision of new passenger facilities while expanding the retail and F&B offering.

Director-General and Chief Executive Officer, CAAS, Mr Lim Kim Choon, said, “Many of us have fond memories of Terminal 1, which is synonymous with the birth of Changi Airport in 1981. It is timely for our grand old dame to get a refreshing makeover.”

He added, “Terminal 1’s upgrading is part of our infrastructure upgrade plans. With the recently renovated Terminal 2 and newly opened Terminal 3, Terminal 1’s face lift will ensure that all passengers at Changi Airport can enjoy the same exciting, vibrant and enjoyable Changi Experience.”

Changi Airport started operations with Terminal 1 in 1981.

ITB Berlin focuses on travel e-business

Following the successful launch of Travdex@ITB in 2006 and PhoCusWright@ITB in 2007, Messe Berlin will offer, for the third year running, another information-packed technology programme in the context of the ITB Convention from the renowned market research and travel intelligence company, PhoCusWright Inc.

“The ongoing potential and impact of technology on global travel distribution is so significant,” says Michaela Papenhoff, Managing Director PhoCusWright in Europe, “that this year’s PhoCusWright@ITB is being dedicated to a confluence of forces: technology and business.”

A collection of keynotes, talkback round tables, case studies, executive interviews, ‘Five Minutes of Fame’ presentations, and points/counterpoints will cover essential trends and in-depth insights that surround the theme ‘Success in Travel E-Business’. “Getting technology right is mission critical to travel, tourism and hospitality success,” says Papenhoff.

With this novel, highly focused concept, PhoCusWright@ITB will take place from 5-6 March in Hall 7.1b, Auditorium London 3. The first ever PhoCusWright Bloggers Summit is scheduled for 5 March, while Thursday 6 March will be devoted entirely to the Success in Travel E-Business programme, from 10.15-18.15.

Online Travel Agency (OTA) leaders speak out

The conference kicks off with a candid Executive Roundtable involving the CEOs or similar high-level executives of some of the world’s leading OTAs – such as Opodo, Expedia, ebookers.com, eDreams and lastminute.com – moderated by Philip C. Wolf, President and CEO of PhoCusWright.

Discussions are focused on changing OTA business models, as well as transaction commissions and merchant fees, which are being challenged by a recently introduced ‘pay per click’ model. Industry leaders will share their points of view on these and other critical issues.

Another conference highlight will be Philip Wolf’s one-on-one interview with industry veteran, José Antonio Tazón, President and CEO of the global distribution system (GDS), Amadeus IT Group S.A. Tazón will share his two decades of experience at the helm of Amadeus, and his vision for the future, as well as talking about the success strategies adopted by Amadeus through changing times to ensure that the GDS maintains its former success in the global travel marketplace.

Re-inventing the holiday booking

Also generating widespread interest is the session on holiday travel, which will be preceded by a keynote presentation by John Kohlsaat, Regional General Manager, easyJet Airline Company. The low-cost carrier has entered the holiday market with easyJet Holidays, so the group’s strategies will be of particular relevance to other tour operators, representing industry peers such as TUI Travel, which will be participating in the ensuing panel discussions.

Among the other conference highlights, delegates will be able to compare and contrast travel strategies of Google and Yahoo, learn more about the evolution of metasearch and how it can influence their businesses, listen to experts talking about the implications of Travel 2.0 and 3.0, and gain insight about next-generation mobile travel applications. Travel industry start-up CEOs will also present executive summaries of their compelling business cases in sessions entitled: Five Minutes of Fame.

“The importance of this rich programme is that it calls for speakers to explain travel technology in business terms, for business people,” says Papenhoff. “Sales, marketing and business development professionals in the travel, tourism and hospitality industry will learn how to leverage technology developments for revenue gains, margin improvements and operational efficiencies.”

“The conference theme, Success in Travel E-Business, makes travel technology relevant for everybody!” says Papenhoff.

AIRPORT NEWS

More drugs seized at Dublin

Irish customs officers at Dublin Airport yesterday (Thursday 14 February) seized 1kg of cocaine valued at US$100,000 (Euro 70,000) in a freight consignment from Canada. The drugs were reportedly concealed in a child’s toy house.

This latest seizure at the airport follows just one day after a 24 year-old UK national was arrested for trying to pass through the airport with 5.5kgs of cannabis, valued at US$97,000 (Euro 66,000). The passenger was remanded in custody.

Mysore upgrade in progress

The first phase of work to turn Mysore airport in India into an international facility will be completed by December this year, paving the way for international flights soon after. Civil works on the runways have already been completed and tenders have been invited for construction of the car parking area and terminal building.

The Karnataka state government has agreed to provide free electricity and water to the airport for the next five years, worth an estimated US$7.5million for the water supply and US$3.6million for the electricity.

The state will also provide the necessary 125-hectare of additional land required for the expansion and upgrading of the airport.

HKIA prepares gold depository

Right: Professor K. C. Chan

A gold depository being built at HongKong International airport will open later this year. According to Professor K. C. Chan, secretary for Financial Services and the Treasury Of HongKong Special Administration Region, the facility will be the third major gold depository in the world following the ones in USA and the UK, and will serve to boost Hong Kong’s status as a financial hub.

The precious metals depository will provide a central, secure storage facility for traders, institutional investors, gold producers and refineries, and will serve as a physical settlement platform for trades made on the Chinese Gold and Silver Exchange and other Asian markets. The depository will also minimise risk, and reduce settlement time, transportation and insurance costs for the industry.

The depository will initially be a wholly-owned subsidiary of the HongKong Airport Authority (AA), but the authority aims long-term to divest its holding to major users of the depository. To ensure that the depository’s services and physical infrastructure meet industry needs, the AA has established an advisory committee, which is chaired by AA finance director Raymond Lai.

HKIA officials claim the airport is well suited to the establishment of a precious metals depository because it has state-of-the-art security, handles a wide range of high-value cargo and serves 150 destinations worldwide, including 40 cities in mainland China, where demand for gold is expanding rapidly.

Left: A gold depository being built at HongKong International airport

Penang chooses SITA check-in

Penang International, Malaysia’s second largest airport has chosen SITA’s AirportConnect Open system for its passenger check-in service.

Dato’ Sri Chan Kong Choy, Malaysia’s transport minister says, “This agreement with SITA will ensure that our international airport in Penang – the pearl of the orient – will provide the highest levels of services not only to the passengers but to all the international airlines that use the airport.”

The installation at Penang International follows the introduction of advanced self-service facilities by SITA earlier this year at Kuala Lumpur International Airport.

Malaysia welcomed a record figure of close to 20 million overseas visitors during 2007.

AirportConnect Open is SITA's latest generation IATA CUTE-compliant common use passenger-processing system, which supports CUTE, proprietary and web applications on common use check-in and boarding gate workstations, with shared peripherals.

Elyes M’Rad, regional vice president SITA, says, “The adoption of AirportConnect Open at Penang International Airport will provide not only the airport, but its airline partners, greater operational flexibility and cost reductions because it is a solution that is both cost-effective and scalable. It is the perfect choice for this growing airport.”

In 2007, Penang airport handled more than 3.1 million passengers.

Frankfurt makes good start to year

Frankfurt Airport (FRA) reports a good start to the 2008, with passenger traffic rising by 3.7% in January. A total of 3,957,951 passengers used the FRA international air transportation hub last month.

A 4.6% rise in European traffic proved to be the major force driving growth in FRA’s passenger figures.

The Fraport Group’s six majority-owned airports (Frankfurt, Frankfurt-Hahn, Antalya, Lima, Burgas and Varna) served a total of 5,190,131 passengers in January 2008 - 3.9% more than in the same month last year.

Fraport to take over Bulgarian JV

BM Star, Fraport’s Bulgarian partner in the concession for the Black Sea airports of Varna and Bourgas, has decided to withdraw from the consortium.

The company transferred its shares to majority shareholder Fraport yesterday (14 February 2008) and Tihomir Trifonov, the executive director of the Fraport Twin Star airport management consortium, has stood down from the role.

The consortium won the concession for the Bourgas and Varna airports’ in September 2006, and last month announced a record-breaking 323.2% growth in the number of passengers serviced at Bourgas Airport, compared to the same month of last year.

The increase was caused mainly by the fog problems at Sofia Airport and the re-direction of flights to Bourgas. Varna Airport registered a 3% increase.

Kuwait Airways provides Ground Handling services for Royal Aviation

Kuwait Airways signed an agreement to provide ground handling services for Royal Aviation at Kuwait International Airport, such as passenger and ramp services, engineering services, in addition to cargo handling services.

Kuwait Airways has also renewed some services at Kuwait International Airport, such as "Marahib" service, which provides a special service to travelers and starting from the arrival of the passenger to the airport, both during departures and arrivals.

Emirates invests in RFID trials at three airports

Emirates Airline announced it is partnering with London Heathrow, Dubai International and Hong Kong International airports, to trial the latest RFID (radio-frequency identification) technology in baggage handling. Emirates will be investing close to AED 2 million, to test the effectiveness and benefits of RFID against the existing barcode tracking system.

The largest-ever trial of its kind for the airline industry, some half a million bags on Emirates flights will be tagged with RFID chips over the 6-month duration of the trial.

The Dubai-based airline hopes its investment will help revolutionise the way bags are tracked and monitored, and present innovative solutions to handle the increasing volumes of baggage every year as more people around the world use air travel more frequently.

Dale Griffith, Emirates’ Divisional Senior Vice President Airport Services said: "This is about embracing the latest technology for the benefit of our customers, and we are very glad to be able to embark on this extensive trial together with our airport partners. Our investment in this project is a small price to pay to give our customers greater peace of mind.

"Previous RFID trials by other parties on a smaller scale have shown that the technology almost eliminates scanner ‘misreads’, significantly improving the efficiency of the baggage system and customer experience. We are now applying this on a much larger scale at three major airport hubs, including Emirates’ Dubai home-base, thus allowing the trials to include most possible baggage handling scenarios, including international transit."

With 58 of the double-decked A380 aircraft entering Emirates’ service, each doubling the number of bags handled per aircraft, the airline is keen to find innovative technologies and new ways to improve baggage handling infrastructure and safeguard the level of trust of its customers.

Mr. Griffith added: "We look forward to sharing the results of this trial with IATA, who we know will be following developments closely. If this trial is as successful as we expect, Emirates will be encouraging airports across its network to embrace this technology. This could become a new industry standard for baggage handling."

RFID equipment has been installed at some of Emirates’ check-in desks at the three participating airports. During the trial, trained staff will apply tags containing RFID chips to bags as part of the normal check-in process. The chips contain stored information including the bag unique ID number and route. In addition to the embedded RFID chips, these tags will also continue to display the traditional bar code.

The chips are read as they pass through the airport’s baggage system, enabling effective sorting, security screening and delivery to the aircraft. Arriving bags are read on entry to the baggage system and receipted into the system for effective tracking. Essentially, the chips will enable bags to be tracked at every stage of their journey, and minimise the possibilities for mishandling baggage.

In the future, RFID technology could also make it possible for airlines to send a text-message alert to notify passengers the moment that their luggage has arrived on the baggage carousel - meaning customers will have one less thing to worry about as they begin their holiday or business trip.

Air India and Jet Airways in talks with Boeing for widebody aircraft orders

(XFN-ASIA) US aircraft maker Boeing Co is in talks with India's Jet Airways and Air India over the sale of 60 wide-bodied aircraft, the Business Standard reported quoting company officials. The deals is expected to be valued at USD15 billion.

Dinesh Keskar, Boeing's senior vice-president (sales), told Business Standard, Jet Airways and Air India have firm orders with Boeing for deliveries until 2011 and they are planning beyond that because of expected market growth.

Air India is studying how many aircraft it requires and Jet Airways plans to acquire more wide-bodied aircraft as its international network expands, Business Standard said.

S Venkat, executive director (finance), Air India, told Business Standard the carrier will finalise orders in the next three months.
Jet Airways executive director, Saroj Datta, said the company will take a decision on the number of aircraft it will buy after studying the market situation.

Australia and United States reaches historical “open skies” agreement

The Minister for Infrastructure, Transport, Regional Development and Local Government, Anthony Albanese, announced that Australia and the United States have settled the terms of a new “open skies” air transport agreement.

Australian and US carriers will now be able to operate unlimited services between the two countries, via other countries and beyond to other countries without government interference.

Previously, new entrants to the route were only guaranteed four services weekly, making it difficult for new carriers to start services.

The new agreement will be effective immediately, pending formal approval of the new treaty by the respective Governments.

Key Features of the Agreement:
• Allow carriers unlimited number of services between any city in the two countries and beyond to other countries;
• Facilitate V-Australia’s plans to launch services on the route from late-08, subject to regulatory approvals. It will also make it easier for US carriers, or new Australian carriers, to enter the route, further building competition, and for Qantas and Jetstar to securely plan for future growth;
• Allow cargo only services to exercise seventh freedom rights, operating from the other country to a third country, without the need to pass through that carrier’s home country;
• Provide new opportunities for Australian carriers to transport US government travellers on certain categories of flights after Oct-08.

UK cuts visa price for Chinese tourists

BEIJING – British Ambassador to China, Sir William Ehrman, made a parallel announcement here yesterday as Immigration Minister Liam Byrne announced in London that the UK is to substantially lower the price of its group tourist visa in China. It will be reduce from GBP63 (US$123.60) to GBP44 (RMB660 or US$91.70) for a pilot period of three months from March 3, 2008.

“Our growing relationship with China is of critical importance to UK. Outbound Chinese tourism is growing rapidly and we want the UK to be the destination of choice,” Byrne said.

'The visas system has rigorous controls but we also want to make it as easy as possible for people to visit the UK legally. We are developing a new group tourist visa and it is fitting that we are trialling the lower cost aspects of this in China,' he added.

Air India and Kingfisher to launch non-stop Bangalore-San Francisco services

Air India and Kingfisher to launch non-stop Bangalore-San Francisco services
Air India announced plans to launch non-stop Bangalore-San Francisco service in Aug-08, using B777-300ER equipment. Kingfisher Airlines plans to launch international services on the same route on 27-Aug-08, with A340-500 equipment. Jet Airways is also reportedly considering launching Mumbai-San Francisco service via Shanghai. According to media reports, Executive Director Commercial, Jitender Bhargava, statedthe Bangalore-San Francisco route, “would connect India's silicon valley with the Silicon Valley of the US, which has a sizeable population of Indians.”

Kingfisher is yet to comment on Air India’s competitive move.

Air India currently operates one-stop services from India to Newark, Chicago, Los Angeles and New York JFK. The carrier also plans to offer more non-stop services to the US in the future, having expressed interest in launching services to Chicago, Newark, Boston, Dallas/Fort Worth and Delhi-Washington DC.

The carrier forecasts revenues from the India-US sector to grow 26% year-on-year to USD832 million for the 12 months ending 31-Mar-08.

However, according to CMD, V. Thulasidas, load factors on new non-stop US services are still quite low, especially in economy class. He earlier stated, “It is doing well in business class, reasonably well in first class, but it has not done very well in economy class”. He added, "perhaps it was because the economy segment looks for a better price, and we had priced it higher than our normal economy fares”.

UAE Company to launch regional Indian carrier in October 2008

Emirates Trading Agency-Associated Construction (ETA-Ascon), a diversified UAE-based company, confirmed plans to launch a regional Indian based carrier in Oct-08, under a JV agreement. Local partner(s) were not disclosed.

According to IANS, ETA-Ascon’s Managing Director, Syed Salahuddin stated, “we have already got the license to start the airline. We are preparing for commercial launch around October 2008. It will be a regional airline… India provides the biggest opportunity for us and we see so much scope for growth”.

The upcoming carrier reportedly plans to establish a based in Chennai and/or Bangalore, and will launch services to South Indian destinations, including Madurai, Thiruvananthapuram, Kochi and Vizag.

The company is also currently in discussions with Embraer, Bombardier and ATR to acquire 70-90-seat regional jets to launch the carrier’s operations.

ETA-Ascon recently launched leasing company, Star Aviation, with a portfolio of eight aircraft.

ETA-Ascon was established in 1973, and is jointly owned by Dubai's Al Ghurair Group and a group of non-resident Indian business men. The company has a diverse range of business operations including, real estate, hospitality, cement production, steel manufacturing, retail, jewellery and food services.