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.”

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.

In the year 2007, number of incoming tourists and spending showed very little change from the previous year, but for 2008, VisitBritain is expecting that tourist arrivals will fall by 2.7 per cent, down to 31.9 million, with total spending showing an increase of 2.5 per cent, up to £16.4 billion.

For 2009, the tourism organisation has predicted an internationally competitive environment. The organisation has warned that the most significant effect will be due to the global economic slump, which might prolong or worsen further. In addition, there is also likelihood that the UK government would extend visa requirements to the nationals of other countries early during this year including Brazil, Malaysia and South Africa. It is said the price of a UK visa might go up which would highlight the difference in pricing between a Schengen visa and the one to enter the UK.

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.

A price war is breaking out in the airline industry with several major airlines slashing their fares to their lowest levels since the Eighties. Several leading carriers afeel compelled to implement a cut of about 25% in their ticket charges amidst mounting fears that the economic downturn might give way to a post-Christmas slump in the demand for air travel.

British Airways has already announced its New Year sale featuring a significant reduction in ticket price to over 75 destinations. Now, a return flight to New York is priced only at £259. Following BA"s announcement, Virgin Atlantic has attempted to hit back by undercutting BA by £1 on fares to a number of destinations including New York, Los Angeles and Chicago.

Following last month"s terror attacks in Mumbai, return tickets to India have also come down with BA reducing its prices to Delhi by £121 to £359, Mumbai by £91 to £329 and Calcutta by £71 to £359.

Anti-government protesters caused chaos in the terminal triggering assumptions of impending military intervention after tightening their grip over Bangkok"s Suvarnabhumi Airport on Wednesday.

It was stated that army chief Anupong Paochinda would hold a news conference after discussing protests by the People"s Alliance for Democracy (PAD) with security officials and business leaders.

Several times Anupong had insisted he would not launch a coup after the military"s removal of Thaksin Shinawatra as prime minister, although he had publicly urged Prime Minister Somchai Wongsawat to step down.

New figures released recently state that the number of foreign visitors to Britain dropped during the peak summer season in addition to the amount of tourist spending. The number of foreign visitors came down by three percent, down to about 9.3 million, compared with the figures reported for the July - September period last year. In addition, overall visitor spending was down by two percent to £5.1 billion.

The figures reveal that for the first nine months of 2008, the country could not attract foreign visitors, says VisitBritain, the national tourism organisation. During the period, about 24.9 million overseas visitors travelled to Britain. There was no growth in the number of arrivals when compared to the same period in 2007. However, the total visitor-spend for the period was £12.5 billion, up by four per cent.

During the first nine months of the year, visitors from North America came down by nine percent down to 3.2 million. Analysts attribute this to the tough economic scenario in the US in addition to low consumer confidence and the rising cost of air travel. Until early summer months, the weakness of the dollar was a factor. However, Britain has not yet seen the benefits from the strengthening of the dollar against the pound, observes Visit Britain.

If new proposals are approved, the terminal at Bristol Airport could nearly double in size. The airport said recently that it has planned to submit a planning application in March seeking permission to expand the terminal to enable it handle about 10 million passengers by the year 2016. The extension with a glass-front would be located to the east and west of the present terminal. Further developments would be on the north side of the airport site.

New facilities for parking cars would feature spaces for about 3,600 cars. The plans also include establishing an overflow car park on the land to the east of the A38. This land is located under the flight path and would be in use for 13 weeks in a year during the peak season and would remain grassed. There is likelihood that a developer would submit a separate planning application for constructing a new airport hotel. The size and the brand of this hotel are yet to be confirmed.

The aircraft stands at the site would go up by 9, taking the total number of stands to 33. The other proposals for the extension include enhancing the aircraft parking areas connected to the enlarged terminal building by constructing walkways, which will eliminate the use of airside buses for boarding the majority of flights. There will also be an exclusively dedicated zone for passenger pick-up and drop besides a new fuel storage facility and new office accommodation.

Boeing said recently that it was confident of offering a final work contract to its white-collar engineers union by the end of this week, well before the existing contract terminates. The move by the plane maker follows in an attempt to avoid a second crippling strike at its Seattle-area plants. Industry sources have said that the present three-year works contract for about 20,000 members of Professional Engineering Employees in Aerospace (SPEEA) will expire on 1st December.

Late on Wednesday, Boeing said that it had already reached a tentative agreement with the union over all the non-economic issues forming part of a new four-year contract. It also conveyed its hopes of wrapping up negotiations during this week.

However, the firm said "substantial differences remain" over the economic issues, stating that the two sides would hammer them out on Thursday.

In a significant recent move, both Morrisons and ASDA have reduced the price of unleaded petrol to 99.9p at the 457 outlets operated by them. Over the next few days, it is very likely that other UK retailers would follow this lead. Therefore, motorists are set to experience great relief as the price of oil has hit US$70 per barrel, which is about 50 percent less than what was recorded in July when the prices peaked.

BP made an announcement recently that it would reduce the price of petrol by about 5 pence per litre thereby enabling about 100 of its 350 petrol stations sell the fuel at 99.9p. So far, Tesco has not responded to the drop in oil prices. As per the information given by the spokesperson of the firm, it appears that the unleaded petrol sold by the firm at its outlets would be over £1 per litre.
 
Despite ASDA charging less than one pound per litre in January this year, most of the retailers have been selling it at more than a pound since 5th November 2007. These reductions in prices are the latest developments that have come to benefit the travelling public of the UK. The announcement of these price reductions came within a few hours of Virgin Atlantic and BA lowering their fuel surcharges on flights. The lowering cost of petrol is also likely to witness the cost of deliveries thereby significantly reducing the prices of products sold by supermarkets.

On Wednesday, American Airlines ordered 42 Boeing 787 Dreamliners. As per list prices, the deal is worth around USD$8 billion. The deal has given a crucially required boost for the plane maker amidst a five-week strike by assembly workers and an uncertain economy. This is the first order made by American Airlines since 2001 for the wide body aircraft. The move by the airline follows the need to overhaul its existing fleet in addition to the airline being optimistic about the future of air travel.

The carbon-composite and titanium of the 787 is built to carry between 200 to 300 passengers on long-haul routes. The aircraft is known to be 20% more fuel efficient than its predecessors. American Airlines is at present purchasing the larger version of 787-9 planes, which according to the company would help in expanding the network of its international routes under its proposed agreement with Spanish Carrier Iberia and British Airways.

American is the biggest airline across the globe in terms of traffic. The airline has confirmed that between 2012 and 2018, it would take delivery of 42 787-9s. In addition, the carrier also took purchase rights for 58 more 787s to be delivered between 2015 and 2020. Following its rivals Northwest Airlines and Continental Airlines, American is just the third major carrier based in the US to order for 787s.

Recently, the company responsible for scanning luggage at Stansted Airport has withdrawn the contract. The move follows a series of strikes over pay rises during the recent past. In an announcement, Gate Aviation Services has stated its decision to end the baggage-screening contract on 10th October. The firm has however added that the 34 staff of the company would be able to keep their jobs if a new contractor assuming the responsibility.

About thirty-four GMB union members employed with Gate triggered off a strike action during summer after rejecting the 2% increase over the pay offer announced by the company. A spokesman for Gate noted at that time that the strike was called by disappointed staff who wanted "to reject the company"s improved pay offer of 2% and a further 2.2% in January 2009".

A spokesperson for the company stated further that the workers would keep their jobs under the rules of continuation of employment even if Gate Aviation terminated the contract after a given period of notice since it was "untenable". It appears that a new contractor will assume the responsibility of scanning luggage after 10th October when Gate Aviation Services has decided to withdraw. Welcoming this development, the GMB has stated that it looked forward to work with the new contractor to settle the row. The employees feel that the present arrangement would provide a positive way out of the issue.

In a prediction made on Thursday, an industry analyst has noted that the parent company of Air Canada is well poised to buy back the 25 percent of the country"s biggest airline for a sum of CAD$215 million (USD$209 million).

Remaining significantly down for more than 12 months on the Toronto Stock Exchange, the shares of Air Canada have recently surged by more than 15 percent or 65 Canadian cents to CAD$4.85. 

According to Jacques Kavafian, the Research Capital analyst, it appears that ACE Aviation will pay about CAD$8.50 a share for the stake, which is nearly double the closing price recorded on Wednesday.

With DHL, the German parcel carrier planning to stop using the services of Air Transport Services Group, the group said on Wednesday that it will have to force its main air cargo operator ABX Air shed about 6,000 or more jobs, if DHL does so. Most notably, the number noted by the airline works out to not less than 75 percent of the total staff forming part of the unit.On the other hand, DHL, the firm owned by German mail group Deutsche Post, has decided to make use of the services of United Parcel Service, one of the main rivals of Air Transport Services Group. The move from DHL comes forth as part of a USD$2 billion restructuring of its business that is making a loss in the United States.

The company has said recently that the carrying cargo for DHL provided not less than 73 percent of the revenue ensuing from the Air Transport Services for the first six months of this year. In the month of May, DHL noted that it had decided to terminate the services of 55 DC-9 aircraft operated by ABX on behalf of DHL during the course of the next 12 months.

After a long delay, the much-awaited public offering of Poland's public carrier will take place in late 2009, with the airline restructuring itself to return to profitability. The chief executive confirmed this on Wednesday. Earlier during this month, LOT warned that the state-controlled airline was in dire need of restructuring in order to avoid an impending cash crunch amidst the soaring prices of fuel and mounting competition from no frills carriers, Ryanair for instance.

Commenting in this regard, the recently appointed CEO of LOT, Dariusz Nowak noted, "After the third quarter of 2009, if we find the level of restructuring as satisfactory, it will allow us to move to other strategic targets, including an IPO (initial public offering). I wouldn't see it before the end of the second quarter of 2009.”

He too noted that the new management would decide on this matter within a year to affirm if LOT is "floatable".

Posting a first-half loss on Wednesday, Macquarie Airports (MAP), a fund managed by Australian investment bank Macquarie has said that it will significantly reduce its stakes in two airports to cut debt. If implemented, this move is expected to send up the shares up nearly 10 percent.

According to MAP, the said plan would assist in funding a share buyback of up to AUD$1 billion (USD$872 million) and considerably help the firm further boost up its share price, which had miserably fallen so far by around one-third during this year.

The present initiatives by the firm simply meant MAP is not after chasing any upcoming privatization efforts pertaining to airports in the short term. The company cited the examples of the lease of Chicago's Midway Airport and Prague Airport in this regard.

In a surprising move, the three biggest airports of Scotland have posted significantly falling passenger numbers for the month of July. According to a recent statement made by their owner BAA, the said condition is a symptom of soaring fuel prices and pressing credit crunch. Across the globe, factors like the economic slowdown and an alarming rise in the price of oil have been wrecking havoc, leading to capacity cuts, suspension of routes and termination of employees, in addition to the breaking up of several airlines.

Most notably when compared to the passenger numbers recorded during the same month last year, the figures for this year showed a 2.3 percent drop. During the month of July, not less than 2.2 million passengers passed through Edinburgh, Glasgow and Aberdeen Airport. Considering that July is the peak month for summer getaways, the figures noted prove to be remarkably lower than the actual figures expected. For the month of July, the international traffic was up by 2.3 percent. However, the domestic business was down by about 6.8 percent.

According to the opinion of experts, the above said numbers go in to suggest that among several other problems haunting the industry at present, BAA and its airline customers are facing new and really tough competition from the passengers of rail that travel within Britain.

With a long standing experience in the field of bio diesel jet fuels, Robert Dunn, a chemical engineer with the US Department of Agriculture observes that the main concern of every one flying in the airplane is that they do not want their fuel to get solidified. Robert Dunn notes that for long, the airline industry has been seeking to find homegrown alternatives to the petroleum based traditional fuel used in aircrafts. For quite sometime, there had been several studies undertaken in this regard, with tests involving a range of alternative fuels. However, still the aircraft manufacturers hold the idea that the right choice has not been discovered so far.

For instance, there are two great disadvantages associated with tests involving hydrogen as a potential alternative fuel. If the aircraft needs to be operated with hydrogen, then jet engines will have to be retrofitted. Though this might not be a challenging issue, the main concern in using hydrogen for flying is that it does not provide the same amount of power supplied by the traditional fuels based on petroleum. Over and above, aircrafts will have to be designed with gigantic tanks to carry hydrogen.

Interestingly, the industry experts note that the best bet for this time is a non-conventional fuel that is being used in South Africa. Most importantly, the country has been flying its aircrafts using a coal-based fuel blend during the past ten years. Sasol, the petrochemical group has developed this fuel. Since this is a synthetic fuel, it does not require altering the engines or equipment.

In a highly welcomed move, Boingo Wireless has just landed at two of Washington, DC airports. Interestingly, flyers with Reagan Washington National (DCA) and Washington Dulles International (IAD) can now log on through Boingo - for a fee.

It is interesting to note that the hourly rate for this service is not more than $4.95, or $7.95 for 24 hours of Wi-Fi access offered to over 100,000 hotspots, thereby ensuring a wider reach. Over and above, just for $21.95 per month, the company offers connections to several thousands of hotspots located across North and South America. In addition, a deal named Boingo Global costing $39 per-month offers access to the company's global partner network. In fact, according to the provider of the Wi-Fi service, "The present move into DCA and IAD now gives its users, "access to every major airport on the Eastern Seaboard.”

On the other hand, there is an interesting debate prevailing among airport executives across the country just now that centers on the real time benefits of offering free Wi-Fi for passengers. Certain airports, such as New Orleans (MSY) and Birmingham (BHM), already provide this facility. However, others like Reagan National and Dulles do not offer this convenience. In these airports, passengers need to pay for availing this facility. The reaction of the passengers to this scenario is still to be understood by industry analysts before it could be decided by most airports whether the facility is an appealing one.

Recently, the governments of Switzerland and Ireland have warned their citizens to avoid all non-essential travel to the Republic of Georgia that is being torn by war. The warning from these governments ensues just two days after the government of United Kingdom issued such warning advisory for the holders of British passport. At present Switzerland is asking all the citizens of Swiss presently residing in Georgia to leave the country for their homes as soon as possible?

In fact, the officials of Switzerland have even extended their assurance for financial help to those Swiss citizens who are unable to leave the country for want of funds to bear the expenses of their departure. Those seeking such a financial aid are required to contact the Swiss Embassy in the Georgian capital city of Tbilisi. The media reports observe that not less than one bus full of Swiss nationals had already left Georgia and the bus has arrived safely in Armenia.

In the lines similar to that of the Swiss, the republic of Ireland is also enjoining its citizens not to make any travels to Georgia in addition to asking those already staying in the country to leave the troubled country. The officials of the Irish Foreign Ministry have issued a warning with several factors positively pointing out the possibility of an impending war between Russia and Georgia. In fact, the media reports say that the troops of Russia have already invaded Georgia proper after gaining control over two of the breakaway territories.

With a phenomenal rise in oil prices haunting all sectors of the economy, one of the most potential impacts of this appears to be threatening the expansion of one of the busiest airports of the world namely the Chicago's O'Hare.

Most notably, Chicago commenced expanding on its largest airport a few years back and is highly eager to complete the work at the O'Hare International by the year 2014. The schedule for completion is contemplated thus to prepare the city for the Summer Olympics that follows two years later. However, the main issue here is that the expansion is primarily dependent on the income of the airlines that are presently pressed hard for cash.

Under the severe economic crunch triggered by the rise of oil prices, the airlines are highly reluctant to contribute funds for the expansion of the airport as they are struck amidst managing their survival and operations. In fact to manage the increasing operational costs and decreasing revenues, they have been forced to raise the airfare besides cutting flights and laying off workers to compensate for the crushing economic conditions.

In a significant move on Wednesday, Ferrovial, the Spanish construction and airport company won the support of bondholder for a key step in a complex refinancing of more than GBP10 billion pounds (USD$19.5 billion) of debt on Wednesday. The firm also said that it is highly hopeful of sewing up the deal during this month. Notably, the company has been trying very hard for more than a year to renegotiate the debt linked to BAA, which was bought earlier by the firm in July 2006. However, this move was hampered by the liquidity crisis that struck the major part of the globe.

In a statement made on Wednesday, Ferrovial observed, "The outcome represents a significant step in the re-financing process. A London-based BAA bondholder agreed. It's removed the greatest uncertainty. The refinancing is largely done and dusted. Holders voted to accept BAA's proposal to move existing bonds into a new financial structure, backed by income from London airports Heathrow, Gatwick and Stansted and the Heathrow Express train service."

He too added, "There are loose ends to be tied up, including the arrangement of banking facilities for the airports group which are not regulated by Britain's aviation watchdog, such as Glasgow, Edinburgh, Aberdeen and Southampton."

According to a report published in the Telegraph, it appears that BAA is holding urgent talks with a hedge fund client of investment bank UBS that is threatening to scupper the proposed £7.65bn refinancing for the operator of the airport. According to the report, it appears that with the approach of yesterday's deadline for bondholders to vote through a highly crucial part of the deal, the hedge fund was not ready to accept the terms proposed by BAA for transferring not less than £225m of bonds into creating a new and sound financing structure.

From the holders of £4.7bn bonds, BAA is requesting an agreement in order to 'migrate' the debt into a new investment-grade or a ring-fenced structure adequately backed by Heathrow, Gatwick and Stansted airports. Provided the bondholders agree for the 'migration' proposal, BAA can start drawing from the £7.65bn of fresh loans sanctioned by a nine-strong banking syndicate.

During last week, Colin Matthews,  the chief executive of BAA noted that it had received clear indications of the 'overwhelming' support from the holders of 90% of the bonds that they would certainly vote favouring the 'migration'. According to the operator of the airport, eight among the nine series of bonds would secure the necessary 75% approval on this basis. However, detailing the crux of the situation, BAA also observed that a client of UBS held just more than 25% of the 2031-dated bonds while its voting intentions were not clear.

In a highly welcomed move, the Leeds Bradford Airport has decided to launch the upgrading programme to improve the car parking facilities outside the main terminal. Notably, this move represents the commencement of the airline's £70m overhaul. John Parkin, chief executive, and Tony Hallwood, commercial and aviation development director, spared a good amount of their time to oversee the starting of work during the implementation of the airport's multi million pound redevelopment scheme.

Phase 1, is expected to be completed during the autumn. This phase includes improving the access for the bus and airport shuttle, establishing a fully designated Arrow taxi zone and the shifting of the Yorkshire Executive Club car park. Over and above, Phase 2 of the project will see the enhancement of the rapid pick up and drop off zone, besides the redevelopment of the short stay car park. Besides this, the airport has also plans to improve the pedestrian walkways. 

Mr Parkin observed, "We are delighted that development has commenced and are very confident that these works will ensure the continued success of Leeds Bradford Airport and provide the people of the region with an airport of which they can be proud. We are determined to improve the quality of services we provide to our passengers. This investment will deliver a significant enhancement to our car parking and public transport facilities."

Recently, the Air Travel Insolvency Protection Advisory Committee (ATIPAC) has highly appreciated the Government as it has decided to introduce the ATOL Protection Contribution (APC). In addition, the committee is also highly happy that the Civil Aviation Authority has worked with the travel industry in order to ensure that it is successfully introduced.

In the Annual Report of the committee published today, the Committee has stressed the importance of this commendable reform and the benefits that this reform shall bring to the industry.

Chairman of ATIPAC, John Cox, noted, "The Committee has been calling for this reform since its inception in 2000. Over the past year we have been carefully monitoring and advising the CAA and have been reassured by the work they have done with industry to make the introduction of the APC seamless and trouble free. The introduction of the £1 per passenger APC simplifies the regulatory process and in most cases eliminates the need for ATOL holders to provide a bond."

In a statement made on Tuesday, Malaysia Airlines announced its decision to launch an innovative and flexible employment plan. This move is aimed at cutting costs during the crucial time when the soaring oil prices and economic slow down are haunting the airline industry.

According to the statement made by the national carrier, the employees of the company will be provided with a flexible choice of choosing to go on voluntary leave or work part-time.

Commenting on this idea, the airline said, "This is a win-win situation at a time when airlines around the world are retrenching employees to cope with the skyrocketing fuel price. Although we want to reduce manpower in the short term to manage our costs as we are similarly affected by the fuel price, our approach is different as we will grow in the medium to long term."

Even amidst the hard challenges of high fuel costs, the biggest budget carrier of Middle East, Air Arabia cherishes a strong determination to boost its annual profits by more than 14.7 percent in 2008, clearly bucking the global downtrend.

Chief Executive Adel Ali noted, "Our target is to do better than 14.7 percent in 2008, compared with 71.7 million dirhams a year ago, an increase of 14.4 percent. Continued soaring oil prices will remain a pressure on the bottom line, but we hope oil prices will stabilize."

Most notably, during present times, most airlines across the world are facing a highly challenging time due to oil prices that have risen more than six times since 2002. The condition has given way to even some big players posting steep falls in their profits and many even facing a downslide towards heavy losses. However, the carriers of Gulf Arab countries have tackled the issue of surging oil prices with the help of the economic benefit ensuing from a economic boom in the region in addition to an increased passenger traffic in the largest oil-exporting region on the globe.

Across 20 regional airports in the country, the Civil Aviation Department of Thailand has cut the landing and parking fees by half. In addition, it has also completely waived the fees for two airports in the far south of Thailand. This move is aimed at helping the airlines manage the crisis haunting the industry.

Santi Prompat, the Transport Minister has reported recently that he has approved the said reductions, and that the reductions that came into effect yesterday will last for six months. According to him, the reductions are said to help the airlines reduce their operating costs in addition to managing the tough situation of the times. He too added that there are several other measures in line to assist the airlines. For instance, the Aeronautical Radio of Thailand Co (Aerothai) is to slightly reduce its traffic control fees.

Also, Air traffic management procedures are to be improved by way of minimizing the amount of time that planes spend in waiting for taking off and landing, which will in turn help conserve on jet fuel. Over and above, the minister has requested that the Airports of Thailand (AoT) has cut the landing and parking fee for airlines at Don Mueang and Suvarnabhumi airports in Bangkok.

With the dramatic rise of oil prices battering all its rivals across the globe, All Nippon Airways reported a 10.5 percent rise in the quarterly operating profit on Thursday. The performance of the airline amidst the soaring oil prices and an economic slowdown has come as a surprise to the airline industry.

Notably, ANA is the second largest airline in the whole of Japan. The company maintained a full-year operating profit forecast of JPY80 billion yen. During the period between April and June, the operating income came to JPY14.6 billion (USD$135 million).

During this quarter, the alarming rise of oil prices proved to be the worst enemy for the airline challenging its performance. Most notably, several carriers across the globe had to shed thousands of jobs besides axing even many of their popular routes. With mounting losses, many of the airlines were even threatened with insolvency. Shockingly, the total loss faced by the airlines across the globe was the worst in the industry during the quarter. Over and above, the International Transport Association has recently estimated that the total loss of the airlines across the globe amounts to over USD$6 billion for this year if the fuel price remains at about USD$135.

Recently, Continental Airlines has released the complete details of the brand new lie-flat seating facility introduced for the comfort of the airline's business class passengers. At the National Business Travel Association show held on July 28in Los Angeles, the airline demonstrated the 180 degree angle seat as the highlight of its business class cabins.

When completely extended, the seat features two metres of sleeping space with plugs for a headset, laptop and devices with facilities for connecting USB plugs and iPod besides providing a video monitor and personal storage space. Most notably, the airline has announced that it will be installing the new seat the Business First cabins in the Boeing 757, 777 and 787 aircrafts of the airline's fleet. The airline has described the new feature as "the extra space and fine amenities of traditional international first class at a business class price".

With effect from the fall of 2009, the new seats will first appear for the use of passengers in the new business class seats of the Boeing 777s that are employed by the Continental in the transatlantic and trans-pacific routes.

Most possibly in the near future, the passengers passing through the Australian airports might find their iPods and laptops being searched by officials for illegally downloaded music.

The expectation follows under a scenario where the officials are said to be considering whether they can implement the proposals outlined by the members of the G8 geopolitical community under a new international directive that hints at checking the media storage devices of passengers in this regard.

During the initial stages of implementation, it is said that the measure would primarily be targeted at commercial suppliers. However, fears are round the corner that once implemented, the crackdown could even affect several hapless music fans who have shared files with their friends.

In a statement made on Wednesday, EADS, the European aerospace group announced an extension to its Power8 restructuring at plane maker Airbus. In addition, the group has also announced the measures to tackle a weak dollar after reporting a remarkable increase in the first-half year profits.

Most notably, the Airbus parent company reconfirmed the details regarding the operating and cash saving targets for the Power8 plan, which is scheduled to run between 2007 and 2010. Over and above, the company also said that the brand new Power8 Plus program would take into account the delivery of a further annual EUR1 billion euros in 2011-12 at the level of operating income.

According to the statement made by EADS, it appears that triggered by the Power8 charges, the earnings of the company before interest and tax significantly rose to EUR1.16 billion from EUR358 million during the first half last year. Also, the net profit of the firm rose up to EUR403 million from EUR71 million that was reported earlier.

According to a recent statement made by the head of Boeing Japan, it appears that Boing will be involved in Mitsubishi Heavy Industries' regional jet. However, the main focus of the company will continue to rest on larger aircrafts.

Recently, Nicole Piasecki, Boeing's Japan president noted that the firm is presently holding talks with Japan's largest heavy machinery maker regarding the program. However, she did not make any comments regarding the contents of their discussion.

The JPY150 billion yen (USD$1.39 billion) project by Mitsubishi Heavy, dubbed the Mitsubishi Regional Jet (MRJ), will carry between 70 to 90 passengers and fly head to head with similar planes constructed by Canada's Bombardier and Brazil's Embraer.

On Tuesday, El Al Israel Airlines and American Airlines have announced that they shall sign a code-sharing agreement to be implemented from 2nd September. Most notably, North America is a significant part of the international market of El Al. The firm has ended yet another code-share agreement with Delta Air Lines late in 2007 at a point when Delta started offering non-stop flights connecting Tel Aviv and New York earlier during this year.

According to Haim Romano, the El Al president and chief executive, the initial part of the agreement with American is to commence with about 25 destinations from Tel Aviv, which will include Boston, Washington DC, Chicago, Dallas, San Francisco and Miami. He too added that most of these routes would begin to operate in the month of September, with the rest coming to force in October.

Also, the Miami code-share is to replace El Al's direct flights there that are due to end on 1st September. According to Romano, El Al gave up the popular but costly route since it was under compulsion to use older Boeing 767s.

Several harsh economic realities are haunting several American communities including those like higher costs of food and fuel. Notably, the rising prices of oil have forced a greater number of Americans to resort to train travel.

On the other hand, the gas prices at the US are still low when compared to the rest of the world. But, this does not stop the Americans getting dismayed, since the average price of unleaded gas per gallon has reached up to $4, which is actually a steep increase of about $1 a gallon since January.

Most interestingly, in Stockton of California, the number of passengers traveling on the Altamont Commuter Express has seen a sharp jump of about 15 percent. Due to this fact, the operator of the said service has enthusiastically placed order for extra rail cars. Thomas Reeves, a spokesperson for the railway noted, "We've seen a huge increase in the last couple of weeks because of the price of gas." At the outset, the Altamont Commuter Express connects Stockton and San Jose, in the Silicon Valley located in California.

The recent discovery of an unexploded 500 kilogram bomb from World War II has totally paralyzed a greater part of the 9th district of Budapest besides wrecking a great havoc disrupting the transportation network of the city. Shortly after the bomb was discovered, a huge section of Budapest's downtown core was completely shut down to traffic in addition to evacuating the zone within one kilometer. Over and above, the residents had to leave their apartments and all stores were closed down. As a result of all this, all roads were cordoned off in this area, with more than 16,000 locals evacuated from the region.

'Ferencváros' as the evacuation procedure was entitled; the operation involved the suspension of all the public transportation in the area in addition to the shutting of electricity, water and gas. The corporation suspended one of the commuter train (HÉV) lines and the crucial 4-6 tramline forming the backbone of Budapest's tramway system did not stop at all stations. This left those using the public transportation system provided by the BKV Zrt-Budapest's transit authority, left out without any luck. However, the one consoling factor was that the BKV officials notably increased the service in one of the metro lines (M3-blue), to ensure that the commuters affected by the cancellation of ground transportation and delays could still rely on the underground of the city.  Most notably, those travelling by cars too were bothered down by major traffic jams, especially due to the closure of the Lágymányosi Bridge.

With most provinces enjoying the civic holiday over the next weekend except Quebec, Canadians who have planned a travel to Newfoundland and Nunavut might find their travel arrangements disturbed due to a possible walkout of the disgruntled employees of Air Canada. Recently, the flight attendants staged a protest and rally in several cities across the country by way of voicing their opinion against the decision of the carrier to lay-off hundreds of employees in addition to closing the flight attendant bases in Halifax and Winnipeg.

A recent report published in the Montreal Gazette states that a significant number of flight attendants are planning to host a possible strike independent of the leadership of their unions. This strike has been most possibly scheduled over the forthcoming long weekend. However, Katherine Thompson, which represents the Air Canada wing of CUPE said while addressing the journalists that the organization has no plans to host any strike during the long weekend. It said that their decision has got nothing to do with the planned action contemplated by some segments of employees. According to Thomson, some unhappy employees might employ the internet technology to mobilize support to their strike in order to find more participants.

With the threat of walk-outs looming large, the airline is already into taking the necessary precautions to minimize any disruption during the holiday weekend. In this connection, the airline has advised its regional managers to get ready with substitutes lined up so that the condition is managed if there is unusual number of attendants found phoning in sick later this week.

In a highly welcomed move, Durham Tees Valley Airport has launched an interesting range of car parking facilities for travellers to help them remove a significant amount of their stress out of flying. The handy online booking feature recently introduced by the airline enables the travellers to pre-book a space for their car parking before they fly. This scheme offers an attractive discount of up to 35 percent when compared to the standard tariff. 

With the underlying principle being that no two travellers are the same, Durham Tees Valley has recently launched a wide variety of options for booking their car parking. Most interestingly, those who are booking online not less than 10 days in advance shall receive the full discount of about 35 percent. Those people who plan trips something like a short getaway shall find this scheme highly beneficial. Also online bookings made between two to nine days before the scheduled departure can also avail some great savings. However, a booking fee of £2.50 booking fee is applied for online bookings.

Over and above, the designing of the Durham Tees Valley Airport car park has very well taken into account giving a piece of mind to the travelers. The car park here is surrounded by high security fencing and is continuously monitored by CCTV, with a convenient location in front of the terminal building. Also, the car park features special bays for disabled access. Seasoned travelers can avail the benefits of purchasing a season ticket for a minimum six month period offering a round the clock, seamless unlimited access to the car park.

In a significant move, Brazil based Embraer, the third-biggest commercial jet maker of the world said on Saturday that it would invest EUR148 million euros in two new plants in Portugal. Most notably, these two units shall be the first industrial units of the company in Europe that will manufacture wings and tailpieces for exporting.

It appears that the two above said plants will be based in Evora, located in the south of the country. With an investment of EUR100 million, one of the units will build large metallic parts for aircrafts, such as wings, On the other hand, the other will work with composite materials used for tailpieces.

In a statement, Embraer said that the investment plan would span the next six years. With the construction starting during this year, the wings unit will start the production in 2011. in addition, the second plant will start the production in 2012.

According to a statement issued by its chief executive to a German weekly, it is expected that Air Berlin, the German carrier might ground more number of its aircrafts than what was previously announced. In addition, the airline is also looking forward to raise the prices for especially its business customers. According to Joachim Hunold, the carrier's earlier plan proposed to remove about 14 planes or 10 percent of its fleet from service from the commencement of winter schedule might be just the beginning. This was confirmed by him during an interview to the newspaper that was published by WirtschaftsWoche on Saturday.

He noted, "We are looking at our portfolio of routes on a daily basis."

The second biggest carrier of Germany has decided to save not less than EUR150 million euros USD$235.5 million) by withdrawing several of its non-profitable routes and improving the marketing and fleet management procedures of the airline. According to Hunold, the company has already been able to lower the costs this year by around EUR35 million.

Pointing out to the revelations of the new Post Office survey, a post office spokesperson has told that France has emerged as one of the most costly holiday destination in the whole of Europe. He notes that among the 'Big Four' European destinations that are popular with the summer holidaymakers of Britain, France is the most expensive. By far, it is reported that when compared to the other three principal destinations for the Brits namely Greece, Spain and Turkey, the cost of visiting France is the highest. The survey employed about 11 key categories to note the cost of holidays. Among these categories, France ranked highest in not less than seven. According to the research department of the Post Office, some of the categories noted include meals, beer, mineral water, and car hire, for example.

Over and above, it is also noted that France marks the highest percentage increase on unleaded fuel over the year 2007. The average price rise is around 32 percent, which is the equivalent of £1.24 per litre. Most notably, the entry fee charged by the top heritage attractions in France is also the highest. Some of the tourist favorites at France charging high include the Arc de Triomphe, the Eiffel Tower and the Palace of Versailles. Such factors render France "significantly less family-friendly than Italy, Greece or Spain when it comes to a day out" - as noted by the report.

While commenting on the report, a post office spokeswoman observed that she was "surprised to find such a marked difference in France this year."

Across Asia, most airlines are struggling to lower down the cost of operation with the rising cost of fuel and decrease in passenger demand create a sort of uncertainty that even sees several carriers go out of business. 

For the month of June, the International Air Transport Association (IATA) has released a depressing forecast revealing a loss of $6.1 billion in the year 2008 across the airline industry on the globe. Most notably, this situation comes as a sharp contrast to the $4.5 billion in profit reported during April. The main aspect to be blamed in this regard is the sky-rocking fuel prices haunting the industry.

Earlyt this July, Cathay Pacific, the third most valuable airline across Asia has issued a profit warning. In addition, Australia's Qantas has decided to cut about 1,500 jobs in addition to suspending its growth plans.

In a significant move, Oakland, California's Board of Port Commissioners has approved the purchase of around 26 new CNG-powered shuttle buses for the use of AirBART and for the purpose of rental car shuttle at the Oakland International Airport. Commencing in 2009, these vehicles known for their clean fuel efficiency will start replacing the older diesel power models that are presently employed for the purpose.

Six numbers of CNG buses will be employed into service with AirBART to offer transportation connecting the Bay Area Rapid Transit (BART) Station near Oakland Airport with the passenger terminals located at Oakland International Airport. The other 20 CNG buses will be utilised to offer shuttle service for passengers to the Rental Car Center of the airport.

Steve Grossman, the director of aviation for the Port of Oakland observed, "Customers will soon enjoy a more comfortable and environmentally-friendly ride between Oakland International's terminals, the airport's Rental Car Center and BART's Coliseum station. The new buses will be deployed in 2009 and will complement the improvements to the airport's roadways and terminals."

In a significant move, implementing border checks are being considered for crossings at the border between British and the Irish Republic. The main purpose of this move is to crack down on illegal immigrants. The plans do not establish fixed checkpoints at the border between Northern Ireland and the republic of Ireland.

Once issued, a Home Office consultation document will propose the initiatives and the necessary formalities for carrying out more formal checks in between these two countries. The main purpose of the immigration crackdown is to mainly focus on those traveling by air and sea. However, eventually the procedure might expand to some other forms of immigration check in between Northern Ireland and its adjacent neighbour to the south.

It is very unlikely that domestic travellers would be affected by these procedures. The new arrangements would primarily take into account passport inspections. The primary technique that would be enforced for this purpose will include electronic border management systems that can count people in and out of the country. Most notably, Northern Ireland is the only country in the whole of the United Kingdom that shares its land border with a foreign nation.

Though the US dollar is getting weaker against several world currencies on one side, this factor does not appear to deter the Americans from travelling abroad during this year. However, a new survey published by Visa Inc. has revealed that more number of Americans is heading to different destinations that are closer to home.

Over two thirds of the respondents to the survey noted that their willingness to travel has not come down a bit when compared to the condition last year. Over and above, not less than half of the respondents noted that they would most probably make a journey abroad during next year too. Among the latter group, two-thirds of them noted that they were giving a thought about going to destinations that are closer to the US than they had in the past.

The US travellers deemed Canada as the most popular international destination, with Mexico ranking second. Apart from this, the other notable destinations included Britain, France, Italy, the Bahamas and the U.S. Virgin Islands. The survey too revealed that the rankings for the year 2008 with respect to the spending habits of Visa card holders, which were quite similar to that of last year with Canada topping the list of international destinations with not less than $2.9 billion in Visa card spending, followed by Mexico, with $1.7 billion.

With the airline contemplating on cut backs of over 2,000 jobs in connection with the rising fuel prices, the Canadian government ruled on Friday that Air Canada must live up to its employment code. However, Air Canada, the biggest airline of the country said that the present ruling would not affect the plans of the airline proposed in terms of cuts planned for 1st November.

Labor Minister Jean-Pierre Blackburn observed recently, "I have instructed labor program officials to monitor the situation to ensure that any affected employees receive their entitlements under the Canada Labor Code."

Air Canada spokeswoman Angela Mah noted, "Our objective was to proceed with mitigation discussions as quickly as possible for the sake of the affected employees so that everyone knows what their options are. The only question was whether those talks take place within the framework of the collective agreement or the Canada Labor Code."

Recently, IACA expressed its strong dismay over the fact that there is a further 9% increase in the airport charges at Larnaca and Paphos in Cyprus for the year 2009. Notably, this is a 4% hike over the average yearly rate of inflation for Cyprus. Over and above, this present increase comes in addition to an outright increase of 77% in the charges made last year by Hermes, the management company governing both the airports. Last week, the new increase was announced to all the airlines through a letter.

At the outset, IACA represents 39 airlines serving the leisure industry in addition to 30% of the airline market in Cyprus. IACA has been repeatedly challenging the recent increases in the airport charges besides warning that the present move exercises a heavy pressure on leisure airlines in addition to making Cyprus a thoroughly uncompetitive market when compared with other leisure-based airports of the Mediterranean region.  With Cyprus already being 150% more expensive than other airports in the region, this additional increase is expected to further add up to this percentage.

Luc Geens, Manager Ground Operations, IACA, observed, "These further increases send a wrong signal to airlines and their passengers that Cyprus is serious about encouraging tourism to Cyprus. Our airlines need more incentives to come to Cyprus not further charges. There is no justification for an increase in airport charges at a time when tourism is suffering and ground handling services at Larnaca and Paphos airports are more chaotic than ever."

A recent study has revealed that several UK-based airlines are doing extremely well than their traditional rivals. To this end, the present crisis in the airline industry and the resulting struggles has contributed to a great extent. The data obtained from the Official Airline Guide (OAG) proves that the difficult economic conditions combined with the rising fuel costs have highly paralyzed the industry. As a result, the annual capacity growth has slowed down to not more than one percent.

However, the data obtained from the low cost sector is quite encouraging. Even as the soaring oil prices are nearly ravaging the industry as a whole, the growth figures are remarkably higher than those found in the traditional airline sector, valuing up to 13 percent when compared with July last year.

Even in the US market, the growth percentage in the no-frills sector is about four percent that stands in clear contrast to the two percent growth in the overall domestic capacity with more than 21,500 flights being axed.

The proliferation of a number of low-cost airlines during this decade came as a threat to the survival of several traditional US carriers, pushing many of them into bankruptcy. However, with most low-cost airlines struggling and failing to keep up their promises under the mounting oil crisis, the present times have given a little relief for the bigger rivals who had been troubled.

Major airlines have been cutting their services to stay aloft. Therefore, besides the increase of fares in select markets, it is rather doubtful how the major airlines would react to the additional weakness and unwinding seen in the low-cost segment.

According to airline consultant Robert Mann, those smaller airlines that depend on discretionary travel are the ones that are most likely to fail. He too said that the market has rather no appeal for large network carriers courting business travelers. He noted, "I don't think (legacy airlines) are seeking those customers. So I don't think it affects them directly."

In a statement released recently, Holidaybreak, the travel company based in Norwich has confirmed that it is persistently performing quite well financially, even under the highly troubled and difficult environment. It has also said that the prospects of the company for the balance of this present financial year remain highly satisfactory.

Recently, the firm released a statement to the stock exchange, noting that all of the divisions of Holidaybreak are performing quite well and are demonstrating a remarkable growth even with respect to the current-year revenues that were booked as of July. Over and above, it is evident that the company has booked not less than 93 per cent of its targeted sales to date. The company has added that the firm's year-to-date sales have increased by four per cent over the figures noted last year. Though the forthcoming years are said to be highly challenging to retain this growth, the company is positive that the present developments have bestowed enough resilience to assure bright prospects.

Carl Michel, Holidaybreak's chief executive commented, "To date, the current financial year is broadly in line with our expectations, though we still have some key selling weeks remaining."

In a highly significant and strategic move, Continental Airlines has sought the formal permission from the US government on Wednesday to enable the firm join the Star Alliance. However, by way of fulfilling the requirements in this regard, the affirm was also needed to make an appeal to the Transportation Department to offer immunity from the antitrust restrictions with respect to issues like scheduling, fares and service. This was done with other procedures of filing the request with the authorities.

Most notably, joining the Star Alliance is considered to bestow tremendous benefits to the carrier. In addition to joining the alliance, the airline shall also execute a code share agreement with United. This move is expected to strengthen the presence of the airline in the East Coast with US Airways in Philadelphia, Washington Reagan National, and Charlotte, United at Washington Dulles and Continental in Newark.

The present move by the airline to seek an alliance comes forth after Continental opted against a merger with United during this spring. Over and above, Continental also eventually decided not to merge with US Airways. These moves significantly fastened the process of the airline seeking to join the Star Alliance recently.