ebookers News

BA to acquire stake in GoAir?

Thu, 08 Jan 2009 05:07:30 +0000

A recent media report has revealed that British Airways is considering buying a stake in GoAir. In a recent article, The Economic Times has stated that BA is debating whether or not to take up a 25 per cent stake in the low-cost Indian carrier.

Citing sources close to the potential deal, the newspaper said that a meeting is scheduled to take place between the two airlines in London somewhere during next month.

Asked about the media speculation, BA declined to comment. However, GoAir said that it "does not have any agreement with any other foreign carrier at the moment".

On the other hand, a knowledgable source hinted that BA"s interest in GoAir followed changes introduced by the Indian government to the rules pertaining to the investment in domestic airlines.

The newspaper quoted the source as saying, "The interest in buying equity stake in GoAir comes in the wake of the development that the Indian government is considering a proposal to allow foreign airlines to pick up stake in domestic carriers.â

Industry circles say that BA was involved in merger talks with Qantas during the recent past, but the discussions did not yield any results.

Flight numbers down at major UK airports

Thu, 08 Jan 2009 05:06:23 +0000

New figures have revealed that the number of flight arrivals and departures at major UK airports has dropped by about 10 percent. The implication of this situation for the residents of Suffolk is a decrease in the number of noisy planes zooming overhead. However, campaigners claim that the decline noticed at present is temporary.

Forecasts state that traffic will rise once again in the spring, besides growing more rapidly over the coming years on account of expansion projects to be launched at both Heathrow and Stansted airports, in addition to a range of other regional airports.

Industry circles indicate that the current fall in air traffic is due to winter service reductions, in addition to attempts by airlines to deal with financial difficulties besides a significant decrease in the number of air passengers.

November figures published by NATS are pointing to a drop in traffic by about 10 per cent. It is said that this was the fifth consecutive month of decrease with respect to flight numbers.

A spokesman for the company said, "All centres and airports where NATS provides a service saw a reduction in traffic this month with the domestic market down by 13.5 per cent, transatlantic arrivals and departures by 10.3 per cent and other arrivals and departures by 9.5 per cent.â

He added, "Figures show a total of 169,539 flights, against 188,015 in 2007 - a reduction of 9.8 per cent.â

Huge losses predicted for European airlines in 2009

Thu, 08 Jan 2009 05:04:37 +0000

Industry forecasts state that this year will see a continued decline in air passenger numbers leading to enormous losses for airlines in Europe.

A recent report published by the International Air Transport Association (IATA), has predicted that the total value of European airline losses would probably reach about $1 billion in 2009.

According to the prediction published by the industry group, it appears falling passenger demand combined with a weakening euro might result in losses that would be ten times the amount witnessed in 2008.

The losses anticipated have been predicted despite the fall in the price of oil which touched a bottom low of about $40 per barrel during last week after touching a sky high of $147 in July. The situation indicates that the carriers across Europe are undergoing a particularly difficult year.

Lorne Riley, a spokesman for the IATA said, "Airlines are under pressure due to falling revenue and decreasing passenger and cargo traffic. The global recession is having an impact on the way we travel, and despite the welcome fall in oil prices, airlines will suffer.â

Figures published by the IATA during last week revealed that that air passenger traffic across the globe had declined by 4.6 per cent in November, when compared with the same month a year earlier. Also, international cargo witnessed a sharper fall by up to 13.5 per cent. The IATA has added that the declines might be expected to stretch further into 2009 making it the first instance of a full year decline since 2001.

EU Extends Review Of Lufthansa Bid For Brussels Air

Thu, 08 Jan 2009 05:00:51 +0000

In a statement made on Tuesday, EU"s competition watchdog said the European Commission has decided to extend its review of a bid by Lufthansa to take over smaller Belgian rival Brussels Airlines.

The Commission confirmed that the deadline for its review of the deal was extended to 26th January from 12th January, with the total worth of the deal estimated at EUR250 million euros (USD$337 million). The commission said the move followed its interest to examine commitments targeted at remedying the concerns that the transaction might be anti-competitive.

The announcement was part of a daily list of mergers presently under review by the Commission, which supervises competition in the 27-country European Union. However, it declined to give any further details.

Announced in September, the acquisition would enable the German carrier to expand its flight network and add premium travellers.

Brussels Airlines would get logistics experience and a wide network in addition to a prime location where the European Union and NATO are based with the inclusion of many flights operated to and from Africa.

Lufthansa has revealed its plans to buy a 45 percent stake in the Belgian airline worth up to EUR65 million, with an option to buy the remaining from 2011.

The carrier said while the deal was announced that the total price would depend on performance-related factors and on 2010 results to start with.

US Planes Full In December Despite Economic Woes

Thu, 08 Jan 2009 04:57:10 +0000

Data has revealed despite slumping demand for travel, US Airlines saw their planes flying full due to downsizing their operations. Capacity cuts resulted in an upsurge in unit revenue at Continental Airlines in addition to reflecting a rare stability for its business that was seen under crucial financial crisis a year ago.

Morningstar analyst Basili Alukos observed, "I can"t see any of the airlines filing for bankruptcy unless you see demand drop like 30 percent. I think they"re in a lot stronger shape. Prices have come up across the whole spectrum.â

Clawing their way out of a downturn due to high fuel prices during the first half of 2008, most airlines were compelled to reduce the number of seats for sale during the second half in an effort to improve efficiency and support fares. However, plummeting oil prices from July insulated the carriers from the economic difficulties that challenged other industries.

The data reported by Continental showed a 6.7 percent year-over-year drop in December traffic due to a capacity reduction of 8.1 percent. The carrier said that its December unit revenue increased between 4 percent and 5 percent for its mainline operations. Continental is the only carrier among major airlines to publish monthly unit revenue figures.

Also, United Airlines and American Airlines said though their traffic fell in December due to decline in capacity, their planes were fuller when compared to a year ago.

UK holiday destinations benefiting from strengthened euro

Wed, 07 Jan 2009 04:36:44 +0000

A recent report compiled for the budget hotel chain Travelodge reveals that more than half of UK holidaymakers confirm they had decided to take their breaks closer to home this summer. In addition, the report has listed Blackpool and the West Country among the top destinations.

The survey involved about 3,500 Britons, and has discovered that about 54 per cent of them have planned to take their summer holidays in the UK. Most of them said that they would prefer heading to the coast, with around 13 per cent said they would prefer visiting Blackpool. On the other hand, fifteen per cent stated they would be going for their holidays in the south-west.

Commenting on the survey data, Guy Parsons, the managing director of Travelodge, said this was great news for the country"s domestic tourism industry. However, he stressed that Britain was not doing its best to attract foreign tourists, who are most likely to visit to take advantage of the strength of the euro against the pound.

Official statistics point out that the number of foreign tourists arrivals fell by 4.5 per cent in October 2008, when compared with the same month in 2007.

He said, "If marketed correctly the UK has the chance to position itself as the top value destination in 2009. With the strong dollar and euro, a trip to London can become an affordable luxury.â

Already several tour operators have cut back on the number of holidays offered by them abroad for summer 2009 because of a fall in demand.

Taiwan to China charters to exceed 108 weekly target

Wed, 07 Jan 2009 04:35:43 +0000

A report published by Taiwan"s Civil Aeronautics Administration (CAA) states that the original target of 108 weekly flights offering direct connections between Taiwan and mainland China will be exceeded by 5 January.

CAA said with every consecutive week, applications made by aviation companies for destinations and flight numbers have been increasing which has helped achieve a rate of 108 return weekly flights by the time it was four weeks from the inception of the programme.

The terms of an accord signed by China and Taiwan in November permitted a maximum of 108 weekly charters on the basis of a framework that had been set up in July during when weekend non-stop charters were launched.

Taiwan has opened eight of its airports to both China and Taiwan-based airlines to operate their charter flights across the routes. For these routes, the most popular airports are the Taiwan Taoyuan International Airport, the Taipei Songshan Airport in northern Taiwan, the Taichung Chingchuankang Airport in central Taiwan and the Kaohsiung International Airport located in the south of the country.

With the direct flights increasing in frequency from weekly to daily operations, the number of destinations in China served by these connections has also undergone an increase from five to 21.

EU rules airlines must pay out for delays

Wed, 07 Jan 2009 04:34:56 +0000

The European Court of Justice has issued a new ruling that would not allow airlines to avoid paying compensation for delayed or cancelled flights on claims of technical problems. The new ruling has at last closed the legal loophole and would potentially cost airlines millions in terms of compensation claims.

Before the ruling was issued, passengers were not able to claim any compensation on grounds of flights delays or cancellations attributed to "extreme circumstances." This was because there was no clear definition of such circumstances and a loophole enabled technical faults to be treated under this exemption.

However the judges have now ruled that faults "which come to light during maintenance of aircraft or on account of failure to carry out such maintenance do not constitute, in themselves, extraordinary circumstances." The court has added that problems ensuing from lack of maintenance should be regarded as "inherent in the normal exercise of an air carrier"s activity.

The ruling was necessitated when a legal action was brought against Alitalia after it refused to pay the necessary compensation for an Austrian family for a last minute cancellation. Friederike Wallentin-Hermann had filed a civil case against the Italian carrier after it cancelled her family"s flight between Vienna and Brindisi five minutes before the departure.

Alitalia had appealed against the ruling by the Austrian court, refusing to make a compensation of 250 and 10 for telephone charges, which has prompted the decision by the European Court.

New oneworld moves at Heathrow

Wed, 07 Jan 2009 04:33:38 +0000

Following the successful completion of British Airways" move to Terminal 5 base, the airport operator has now confirmed the dates for the next round of oneworld relocations at Heathrow Airport.

Finnair, which offers 4 daily round-trips connecting Heathrow and its Helsinki hub, will shift its operations from Terminal 1 to Terminal 3 on 27 January. Iberia will shift its operations on 25 February from Terminal 2 to Terminal 3. The Spanish airline offers about eight daily services from Heathrow to Madrid in addition to four daily flights to Barcelona.

Four weeks later on 25th February, BA will complete its shifting out of Terminal 1, with its final flights offered to destinations including Barcelona, Madrid, Lisbon, Nice and Helsinki moving to Terminal 3. Following this, on 29th March, BA will transfer its routes serving Malaga and Vienna from Terminal 5 to Terminal 3. Also, BA"s Executive Club lounge in Terminal 1 is scheduled to close on 27th January.

Four among the five remaining oneworld airlines operating from Heathrow including American Airlines, Cathay Pacific, Japan Airlines and Royal Jordanian are already based in Terminal 3. The only other oneworld on-line carrier, Qantas, will shift its operations there later in 2009, transferring from Terminal 4. British Airways" flights operated to Bangkok, Singapore and Sydney will be shifted from Terminal 4 to Terminal 3 at the same time, in addition to Qantas.

The oneworld airlines shifting to Terminal 3 will use the adjacent check-in desks in Zones F and G. Excepting those flights moved into Terminal 3, BA"s entire operation at its home base are housed in Terminal 5.

Air Southwest launches ski flights from Plymouth and Newquay

Wed, 07 Jan 2009 04:31:52 +0000

Cheap flights airline Air Southwest has announced the launch of its first ski flights from Plymouth and Newquay to Grenoble, the most popular ski destination. The first flight operated by the carrier in the route took to the skies on 20th December. The carrier has stated that its services in this route would run throughout the ski season until 28th March.

Commenting on the strategic importance of introducing flights on this new route, Mike Coombes, Air Southwest"s deputy chief executive, stated that Grenoble represented an excellent winter ski destination.

Talking about the benefits offered by this service to skiers in the region, he said, "Air Southwest is delighted that it can offer ski breaks for people from across the region right on their doorstep, without having to take a long road journey to fly from a distant airport. Our new flights direct from Plymouth and Newquay have been extremely well received and this new service further demonstrates Air Southwest"s commitment to Devon and Cornwall.â

Bookings can be made through the airline"s online portal, with the price of one-way tickets in the route starting from as low as £39.

In another announcement made last month, Air Southwest has announced that it had flied its first air service from the newly re-opened Newquay Airport.