Qantas planes collide
Two Qantas passenger jets have had an accident on the ground in near Melbourne according to reports.
Two Boeing 747's were damaged whilst being towed at the Avalon airport, which is Qantas' maintaince base which is located outside of Melbourne.
Ironically, one of the jets was the same jet that was involved in a mid-air explosion in July over the Phillipines. A major hole was ripped in the fuselage during that incident.
Local TV reports have shown footage of one of the jets with the nose caved in, allegedly after hitting the left hand wing of the other plane.
Qantas has said that maintenance staff involved have been suspended in light of the situation.
This accident is the latest in a string of unforunate events that affected Qantas, which is bringing their safety record into question.
Thursday 20 November 2008
Tuesday 18 November 2008
TV viewers’ vote BA as their favourite airline
Viewers of the BBC consumer affairs show Watchdog have voted British Airways as their favourite airline.
In a survey of the most loved and hated airlines, BA beat Easyjet, Singapore Airlines, Emirates and Virgin Atlantic into the number one spot for most loved.
Over 25,000 took part in the survey, and over half chose BA for its customer service and on-board facilities.
Over 2,300 viewers also voted BA into the least favourite carrier category.
The least favourite airline was Ryanair, with more than double the amount of votes of BA. Viewers stated that customer service and delays and cancellations were the reason Ryanair scored so low.
In a survey of the most loved and hated airlines, BA beat Easyjet, Singapore Airlines, Emirates and Virgin Atlantic into the number one spot for most loved.
Over 25,000 took part in the survey, and over half chose BA for its customer service and on-board facilities.
Over 2,300 viewers also voted BA into the least favourite carrier category.
The least favourite airline was Ryanair, with more than double the amount of votes of BA. Viewers stated that customer service and delays and cancellations were the reason Ryanair scored so low.
Sunday 16 November 2008
Iberia profits down 98 per cent
Iberia profits down 98 per cent
Iberia has reported a 98 per cent drop in half-year earnings on the back of high fuel prices and the global economic slowdown.
Operating profit at the Spanish carrier for the months of January to September dropped to 8.2 million euros ($10.35 million) and net profit fell to 51.1 million euros compared with 223 million euros a year ago.
Analysts have complimented Iberia on a strong balance sheet but say that, like other airlines, it faces strong economic headwinds and limited benefits from falling oil prices due to its hedging.
The airline also reported its traffic and capacity statistics for October, which showed an 8.6 per cent drop in passenger traffic.
Iberia has reported a 98 per cent drop in half-year earnings on the back of high fuel prices and the global economic slowdown.
Operating profit at the Spanish carrier for the months of January to September dropped to 8.2 million euros ($10.35 million) and net profit fell to 51.1 million euros compared with 223 million euros a year ago.
Analysts have complimented Iberia on a strong balance sheet but say that, like other airlines, it faces strong economic headwinds and limited benefits from falling oil prices due to its hedging.
The airline also reported its traffic and capacity statistics for October, which showed an 8.6 per cent drop in passenger traffic.
Friday 14 November 2008
Bank warns of recession into 2009
Bank warns of recession into 2009
The UK probably entered a recession in the middle of 2008 and is likely to continue to contract well into 2009, the Bank of England has said.
In its quarterly inflation report, the Bank warned that the economic landscape had changed dramatically since August.
It said that the UK economy could shrink by two per cent over the next year, much worse than its previous forecast.
Bank governor Mervyn King said: “[It is] very difficult to know precisely how long we'll be in recession. I think we probably are in recession now.
“This is a difficult and unprecedented time, but we will come through this. We will come out of recession and get back to a period of low and steady inflation and economic growth.”
Germany has also confirmed that it has entered a recession after government figures showed the country’s economy contracted by 0.5 per cent in the third quarter.
And in further bad news for the economy, BT says it expects to have cut 10,000 jobs by the end of the March.
The UK probably entered a recession in the middle of 2008 and is likely to continue to contract well into 2009, the Bank of England has said.
In its quarterly inflation report, the Bank warned that the economic landscape had changed dramatically since August.
It said that the UK economy could shrink by two per cent over the next year, much worse than its previous forecast.
Bank governor Mervyn King said: “[It is] very difficult to know precisely how long we'll be in recession. I think we probably are in recession now.
“This is a difficult and unprecedented time, but we will come through this. We will come out of recession and get back to a period of low and steady inflation and economic growth.”
Germany has also confirmed that it has entered a recession after government figures showed the country’s economy contracted by 0.5 per cent in the third quarter.
And in further bad news for the economy, BT says it expects to have cut 10,000 jobs by the end of the March.
Wednesday 12 November 2008
Cathay Pacific confirms freeze
Cathay Pacific confirms hiring freeze
Cathay Pacific Airways has confirmed a hiring freeze for the airline and its unit, Hong Kong Dragon Airlines, as part of its cost-cutting measures to deal with reduced demand.
Cathay Pacific chief executive Tony Tyler recently said in a staff newsletter the hiring suspension took effect at the end of October. He added the airline aims to adjust its operating plan for next year in anticipation of a weak market for air travel.
However, he said: “I remain unashamedly optimistic about the future of aviation in Asia – just think of the potential in China and India alone.”
The airline’s plans to cut costs include the removal of five Boeing 777-200 passenger aircraft from service over the next two years, as well as returning two of Dragonair’s Airbus A330 aircraft to their owners when the leases expire in June.
Tyler said the removal of the 777-200s, which include the first ever 777 ever built, will help Cathay Pacific simplify its fleet structure, adding “if we do manage to sell them, the cash will come in very useful.”
Cathay Pacific Airways has confirmed a hiring freeze for the airline and its unit, Hong Kong Dragon Airlines, as part of its cost-cutting measures to deal with reduced demand.
Cathay Pacific chief executive Tony Tyler recently said in a staff newsletter the hiring suspension took effect at the end of October. He added the airline aims to adjust its operating plan for next year in anticipation of a weak market for air travel.
However, he said: “I remain unashamedly optimistic about the future of aviation in Asia – just think of the potential in China and India alone.”
The airline’s plans to cut costs include the removal of five Boeing 777-200 passenger aircraft from service over the next two years, as well as returning two of Dragonair’s Airbus A330 aircraft to their owners when the leases expire in June.
Tyler said the removal of the 777-200s, which include the first ever 777 ever built, will help Cathay Pacific simplify its fleet structure, adding “if we do manage to sell them, the cash will come in very useful.”
Monday 10 November 2008
Strike delays Boeing 787 launch
Strike delays Boeing 787 launch
Boeing has delayed the first flight of its 787 aircraft until 2009, previously scheduled for the end of 2008.
It is the fifth substantial delay to the Dreamliner’s first flight, which was originally planned for summer 2007.
Boeing has blamed the delay on a 58-day machinists’ strike, which finally ended on Sunday.
It also blamed a problem with the installation of the fasteners that hold the aircraft together.
A company spokesman said that inspections had found about three per cent of the fasteners on the four test jets had been incorrectly installed by suppliers, either by being placed too far apart or too close together.
A new launch timetable will be announced once the problems have been fully assessed.
The project has been plagued by delays due to problems with supplier and shortages of parts.
Some airlines have been told they will have to wait two years longer for their aircraft than had originally been promised.
The Dreamliner is a key plank of Boeing’s strategy and is the first airliner to be made from a mixture of carbon fibre and plastic.
The materials make a lighter and more fuel-efficient than other aircraft, and allows it to travel further without refuelling.
Boeing has delayed the first flight of its 787 aircraft until 2009, previously scheduled for the end of 2008.
It is the fifth substantial delay to the Dreamliner’s first flight, which was originally planned for summer 2007.
Boeing has blamed the delay on a 58-day machinists’ strike, which finally ended on Sunday.
It also blamed a problem with the installation of the fasteners that hold the aircraft together.
A company spokesman said that inspections had found about three per cent of the fasteners on the four test jets had been incorrectly installed by suppliers, either by being placed too far apart or too close together.
A new launch timetable will be announced once the problems have been fully assessed.
The project has been plagued by delays due to problems with supplier and shortages of parts.
Some airlines have been told they will have to wait two years longer for their aircraft than had originally been promised.
The Dreamliner is a key plank of Boeing’s strategy and is the first airliner to be made from a mixture of carbon fibre and plastic.
The materials make a lighter and more fuel-efficient than other aircraft, and allows it to travel further without refuelling.
Saturday 8 November 2008
Cathay Pacific expects disappointing 2008 results
Cathay Pacific expects disappointing 2008 results
Cathay Pacific Airways has said it expects “disappointing” 2008 results from weak passenger revenue and substantial losses from fuel hedging contracts.
The Hong Kong based airline said yesterday the recent decline in fuel prices has resulted in HK$2.8 billion (£227.6m) in mark-to market losses on its fuel hedging contracts.
The loss amounts to about 40 per cent of its 2007 net profit of HK7.02 billion (£570.7m), but the actual loss for this year will depend on the movement of fuel prices.
“Corporate travel volumes in all classes are of concern as corporate clients begin to impose stricter travel polices on their employees,” Cathay Pacific said.
The company reported a first-half net loss of HK$663 million (£53.9m), its first since 2003, compared with a net profit of HK$2.58 bn (£209.7m) a year earlier.
But despite fears of a global recession next year, analysts said they expect Cathay Pacific to benefit from a sustained decrease in fuel prices and improved demand for passenger services to China.
UBS analyst Damien Horth said he believes Cathay Pacific’s acquisition of China-focused Hong Kong Dragon Airlines in 2006 has “materially improved the competitive position of the Hong Kong hub, relative to previous downturns”.
Cathay Pacific Airways has said it expects “disappointing” 2008 results from weak passenger revenue and substantial losses from fuel hedging contracts.
The Hong Kong based airline said yesterday the recent decline in fuel prices has resulted in HK$2.8 billion (£227.6m) in mark-to market losses on its fuel hedging contracts.
The loss amounts to about 40 per cent of its 2007 net profit of HK7.02 billion (£570.7m), but the actual loss for this year will depend on the movement of fuel prices.
“Corporate travel volumes in all classes are of concern as corporate clients begin to impose stricter travel polices on their employees,” Cathay Pacific said.
The company reported a first-half net loss of HK$663 million (£53.9m), its first since 2003, compared with a net profit of HK$2.58 bn (£209.7m) a year earlier.
But despite fears of a global recession next year, analysts said they expect Cathay Pacific to benefit from a sustained decrease in fuel prices and improved demand for passenger services to China.
UBS analyst Damien Horth said he believes Cathay Pacific’s acquisition of China-focused Hong Kong Dragon Airlines in 2006 has “materially improved the competitive position of the Hong Kong hub, relative to previous downturns”.
Thursday 6 November 2008
Pegasus doubles Boeing Order
Pegasus doubles Boeing Order
Turkish Low Cost carrier Pegasus has announced that it will buy 24 planes from Boeing, rather than 12 agreed under a previous deal. Boeing was scheduled to deliver the 12 planes, bought for $800 million USD by 2012, under a deal signed in 2005, Pegasus claims that its new generation Boeing 737-800 planes will make it the private airline with the largest fleet in Turkey.
www.reuters.com
Turkish Low Cost carrier Pegasus has announced that it will buy 24 planes from Boeing, rather than 12 agreed under a previous deal. Boeing was scheduled to deliver the 12 planes, bought for $800 million USD by 2012, under a deal signed in 2005, Pegasus claims that its new generation Boeing 737-800 planes will make it the private airline with the largest fleet in Turkey.
www.reuters.com
Wednesday 5 November 2008
Buenos Dias Buenos Aires
Buenos Dias Buenos Aires
British Airways is increasing the frequency of it flights from Heathrow to Buenos Aires from this winter schedule which takes affect when the clocks change. From October 26th, BA will add three additional 747 flights per week to the existing timetable, maning that flights to the Argentinian capital will now depart daily. Furthur expanding it winter schedule, the firm also plans to intordice a new three-times weekly direct service to Rio de Janeiro using a Boeing 777, with flights to both destinations via Sao Paulo.
www.ba.com
British Airways is increasing the frequency of it flights from Heathrow to Buenos Aires from this winter schedule which takes affect when the clocks change. From October 26th, BA will add three additional 747 flights per week to the existing timetable, maning that flights to the Argentinian capital will now depart daily. Furthur expanding it winter schedule, the firm also plans to intordice a new three-times weekly direct service to Rio de Janeiro using a Boeing 777, with flights to both destinations via Sao Paulo.
www.ba.com
Tuesday 4 November 2008
EU rules warning on Alitalia deal
EU rules warning on Alitalia deal
The rescue deal for the Italian airline Alitalia must not breach European Union competition rules, the carrier’s bankruptcy administrator has been warned.
An investment group, the Compagnia Aerea Italiana (CAI), made an offer of £789 million (1bn euros) on Friday, despite the lack of agreement with some unions.
About 3,000 workers will lose their jobs under the rescue plan. The CAI hopes to link Alitalia with a major European airline, but a decision is not expected for several weeks.
Air France-KLM, Lufhansa and British Airways have all been courted as possible partners for Alitalia.
The rescue offer from the CAI came after lengthy talks with Alitalia’s trade unions, which broke down on several occasions.
Alitalia’s bankruptcy administrator, Augusto Fantozzi will study the offer this week, but has said any deal must not violate EU competition rules.
The unions had accepted the CAI’s takeover of Alitalia in principle but the airline’s pilot and flight staff unions have not agreed to the CAI’s detailed terms.
Without a binding rescue offer, Alitalia would have been forced to seek new funding within weeks to keep itself going or risk bankruptcy.EU rules warning on Alitalia deal
The rescue deal for the Italian airline Alitalia must not breach European Union competition rules, the carrier’s bankruptcy administrator has been warned.
An investment group, the Compagnia Aerea Italiana (CAI), made an offer of £789 million (1bn euros) on Friday, despite the lack of agreement with some unions.
About 3,000 workers will lose their jobs under the rescue plan. The CAI hopes to link Alitalia with a major European airline, but a decision is not expected for several weeks.
Air France-KLM, Lufhansa and British Airways have all been courted as possible partners for Alitalia.
The rescue offer from the CAI came after lengthy talks with Alitalia’s trade unions, which broke down on several occasions.
Alitalia’s bankruptcy administrator, Augusto Fantozzi will study the offer this week, but has said any deal must not violate EU competition rules.
The unions had accepted the CAI’s takeover of Alitalia in principle but the airline’s pilot and flight staff unions have not agreed to the CAI’s detailed terms.
Without a binding rescue offer, Alitalia would have been forced to seek new funding within weeks to keep itself going or risk bankruptcy.
The rescue deal for the Italian airline Alitalia must not breach European Union competition rules, the carrier’s bankruptcy administrator has been warned.
An investment group, the Compagnia Aerea Italiana (CAI), made an offer of £789 million (1bn euros) on Friday, despite the lack of agreement with some unions.
About 3,000 workers will lose their jobs under the rescue plan. The CAI hopes to link Alitalia with a major European airline, but a decision is not expected for several weeks.
Air France-KLM, Lufhansa and British Airways have all been courted as possible partners for Alitalia.
The rescue offer from the CAI came after lengthy talks with Alitalia’s trade unions, which broke down on several occasions.
Alitalia’s bankruptcy administrator, Augusto Fantozzi will study the offer this week, but has said any deal must not violate EU competition rules.
The unions had accepted the CAI’s takeover of Alitalia in principle but the airline’s pilot and flight staff unions have not agreed to the CAI’s detailed terms.
Without a binding rescue offer, Alitalia would have been forced to seek new funding within weeks to keep itself going or risk bankruptcy.EU rules warning on Alitalia deal
The rescue deal for the Italian airline Alitalia must not breach European Union competition rules, the carrier’s bankruptcy administrator has been warned.
An investment group, the Compagnia Aerea Italiana (CAI), made an offer of £789 million (1bn euros) on Friday, despite the lack of agreement with some unions.
About 3,000 workers will lose their jobs under the rescue plan. The CAI hopes to link Alitalia with a major European airline, but a decision is not expected for several weeks.
Air France-KLM, Lufhansa and British Airways have all been courted as possible partners for Alitalia.
The rescue offer from the CAI came after lengthy talks with Alitalia’s trade unions, which broke down on several occasions.
Alitalia’s bankruptcy administrator, Augusto Fantozzi will study the offer this week, but has said any deal must not violate EU competition rules.
The unions had accepted the CAI’s takeover of Alitalia in principle but the airline’s pilot and flight staff unions have not agreed to the CAI’s detailed terms.
Without a binding rescue offer, Alitalia would have been forced to seek new funding within weeks to keep itself going or risk bankruptcy.
Sunday 2 November 2008
Virgin sacks 13 over Facebook use
Virgin Atlantic has sacked 13 cabin crew staff after they criticised the airline's safety standards and insulted passengers on a social networking website, it has been revealed. Skip related content
The airline said the employees' behaviour was "totally inappropriate" and "brought the company into disrepute".
In a statement, the airline said: "Virgin Atlantic can confirm that 13 members of its cabin crew will be leaving the company after breaking staff policies due to totally inappropriate behaviour.
"Following a thorough investigation, it was found that all 13 staff participated in a discussion on the networking site Facebook, which brought the company into disrepute and insulted some of our passengers.
"It is impossible for these cabin crew members to uphold the high standards of customer service that Virgin Atlantic is renowned for if they hold these views."
A spokesman for the airline said: "There is a time and a place for Facebook. But there is no justification for it to be used as a sounding board for staff of any company to criticise the very passengers who ultimately pay their salaries.
"Virgin Atlantic staff are known for their world-class customer service and there is no place in our business for anyone who behaves otherwise.
"We have numerous internal channels for our staff to feed back legitimate and appropriate issues relating to the company."
In a statement, the airline said: "Virgin Atlantic can confirm that 13 members of its cabin crew will be leaving the company after breaking staff policies due to totally inappropriate behaviour.
"Following a thorough investigation, it was found that all 13 staff participated in a discussion on the networking site Facebook, which brought the company into disrepute and insulted some of our passengers.
"It is impossible for these cabin crew members to uphold the high standards of customer service that Virgin Atlantic is renowned for if they hold these views."
A spokesman for the airline said: "There is a time and a place for Facebook. But there is no justification for it to be used as a sounding board for staff of any company to criticise the very passengers who ultimately pay their salaries.
"Virgin Atlantic staff are known for their world-class customer service and there is no place in our business for anyone who behaves otherwise.
"We have numerous internal channels for our staff to feed back legitimate and appropriate issues relating to the company."
Friday 31 October 2008
United mechanics take voluntary severance
United mechanics take voluntary severance
United Airlines has announced that 322 engineering unions reps have taken the voluntary redundancy it offered as it looks to cut costs and capacity.
In July United said it would reduce headcount at the airline by 7,000 and offer the voluntary deal to avoid compulsory redundancies.
So far, around 1,500 cabin crew, 200 pilots and 100 engineers have chosen to take the deal.
United Airlines has announced that 322 engineering unions reps have taken the voluntary redundancy it offered as it looks to cut costs and capacity.
In July United said it would reduce headcount at the airline by 7,000 and offer the voluntary deal to avoid compulsory redundancies.
So far, around 1,500 cabin crew, 200 pilots and 100 engineers have chosen to take the deal.
Thursday 30 October 2008
Singapore Airlines to cut flights to some Asian cities
Singapore Airlines to cut flights to some Asian cities
Singapore Airlines will reduce the number of flights to some Asian cities in response to falling demand.
The airline said in a statement that it would reduce the number of flights between Singapore and several cities in Asia including Penang, Ho Chi Minh City, Seoul, Osaka, Bangalore and Chennai. It will stop flights to Amritsar in India.
"Other changes will be made on an ad-hoc basis where demand requires," it said, adding capacity adjustments will be made quickly where demand falls.
Singapore Airlines will reduce the number of flights to some Asian cities in response to falling demand.
The airline said in a statement that it would reduce the number of flights between Singapore and several cities in Asia including Penang, Ho Chi Minh City, Seoul, Osaka, Bangalore and Chennai. It will stop flights to Amritsar in India.
"Other changes will be made on an ad-hoc basis where demand requires," it said, adding capacity adjustments will be made quickly where demand falls.
Wednesday 29 October 2008
BMI being taken over by Lufthansa
BMI being taken over by Lufthansa
BMI is being taken over by Germany’s Lufthansa.
Lufthansa, which already owns a 30 per cent stake in BMI minus one share, is buying the 50 per cent of the company owned by BMI chairman Sir Michael Bishop.
The deal will give Lufthansa control of more flights from Heathrow than any airline except British Airways.
The remaining 20 per cent of BMI is currently owned by Sweden-based Scandinavian Airlines (SAS).
Lufthansa said it intended to complete the deal by 16 January. Earlier this year it bought a 45 per cent stake in Brussels Airlines.
BMI is being taken over by Germany’s Lufthansa.
Lufthansa, which already owns a 30 per cent stake in BMI minus one share, is buying the 50 per cent of the company owned by BMI chairman Sir Michael Bishop.
The deal will give Lufthansa control of more flights from Heathrow than any airline except British Airways.
The remaining 20 per cent of BMI is currently owned by Sweden-based Scandinavian Airlines (SAS).
Lufthansa said it intended to complete the deal by 16 January. Earlier this year it bought a 45 per cent stake in Brussels Airlines.
Tuesday 28 October 2008
BA's Concorde moved for £1.1m hangar
BA's Concorde moved for £1.1m hangar
Manchester Airport’s retired Concorde is being moved from its base to make way for a £1.1m visitor centre.
The aircraft has been sitting at the aviation viewing park since making a final flight to the city in 2003.
But now the 97 tonne aeroplane is being moved 17m (56ft) away while engineers build its new hangar.
An education centre for school tours, corporate hospitality and a restaurant will also be part of the development, which is due to open in July 2009.
BA Airport operations director Andrew Holl said: “I am delighted that plans are getting under way to re-home this important piece of aviation history.
“Concorde is very close to our hearts here at Manchester Airport and the thousands of visitors feel passionately about her care for the future which this new hangar will offer.”
Construction work on the new hangar is to start in early spring.
Manchester Airport’s retired Concorde is being moved from its base to make way for a £1.1m visitor centre.
The aircraft has been sitting at the aviation viewing park since making a final flight to the city in 2003.
But now the 97 tonne aeroplane is being moved 17m (56ft) away while engineers build its new hangar.
An education centre for school tours, corporate hospitality and a restaurant will also be part of the development, which is due to open in July 2009.
BA Airport operations director Andrew Holl said: “I am delighted that plans are getting under way to re-home this important piece of aviation history.
“Concorde is very close to our hearts here at Manchester Airport and the thousands of visitors feel passionately about her care for the future which this new hangar will offer.”
Construction work on the new hangar is to start in early spring.
Saturday 25 October 2008
Austrian Airlines reports operating loss
Austrian Airlines reports operating loss
Austrian Airlines has reported a third-quarter operating loss and confirmed a gloomy outlook for the final quarter of the year.
Its net loss for the three months to September was 16.6 million euros, compared with a 29.1 million euros net profit during the same period a year ago. Analysts had predicted a significantly smaller loss of 6.2 million euros.
Chief executive Alfred Oetsch said: “The fourth quarter of the 2008 financial year will be characterised by an abrupt slump in demand, negative effects from fuel hedging and the increase in the value of the US dollar.
“The economic downturn has already led to a decline in flight bookings.”
Austrian state holding company OAG said on Monday it was extending a tender of the airline by two months.
Austrian Airlines has reported a third-quarter operating loss and confirmed a gloomy outlook for the final quarter of the year.
Its net loss for the three months to September was 16.6 million euros, compared with a 29.1 million euros net profit during the same period a year ago. Analysts had predicted a significantly smaller loss of 6.2 million euros.
Chief executive Alfred Oetsch said: “The fourth quarter of the 2008 financial year will be characterised by an abrupt slump in demand, negative effects from fuel hedging and the increase in the value of the US dollar.
“The economic downturn has already led to a decline in flight bookings.”
Austrian state holding company OAG said on Monday it was extending a tender of the airline by two months.
Friday 24 October 2008
Lufthansa issues profit warning
Lufthansa issues profit warning
Lufthansa has followed the lead of Air France-KLM by issuing a profits warning.
The German carrier lowered its 2008 operating profit outlook due to higher fuel costs and an uncertain market amid the global economic slowdown and financial crisis.
The company said it now expects operating profit for the year to come in at 1.1 billion euros (£800 million).
The profit warning comes three weeks after Lufthansa for the first time conceded that the financial crisis and cooling global economy have led to a noticeable decline in bookings, particularly from business travellers.
Commerzbank analyst Frank Skopzik said: “We’ve expected a profit warning in our estimates but are surprised how weak third quarter figures came in.”
Lufthansa said net profit for the first nine months of the year fell more than 65 per cent.
Lufthansa has followed the lead of Air France-KLM by issuing a profits warning.
The German carrier lowered its 2008 operating profit outlook due to higher fuel costs and an uncertain market amid the global economic slowdown and financial crisis.
The company said it now expects operating profit for the year to come in at 1.1 billion euros (£800 million).
The profit warning comes three weeks after Lufthansa for the first time conceded that the financial crisis and cooling global economy have led to a noticeable decline in bookings, particularly from business travellers.
Commerzbank analyst Frank Skopzik said: “We’ve expected a profit warning in our estimates but are surprised how weak third quarter figures came in.”
Lufthansa said net profit for the first nine months of the year fell more than 65 per cent.
Thursday 23 October 2008
Europe delays airport X-ray eye
EU lawmakers have delayed the introduction at airports of full body scanners, machines that generate images of passengers without their clothes.
MEPs voted for a further study on the implications for privacy and health. Computer pictures generated by the scanners give an outline of passengers bodies beneath their clothes.
Supporters say they detect hidden objects not picked up by traditional metal detectors. But critics say they amount to a virtual strip search.
The new scanners have already been introduced in several US airports and have been tested around the world.
The European Commission - which supports their implementation - has given assurances that the scanners will not be used routinely on all passengers.
“The Commission believes that body scanning methods can complement in a very effective and efficient way the existing security measures at airports,” said spokesman Jens Mester at EU headquarters in Brussels, Belgium.
MEPs voted for a further study on the implications for privacy and health. Computer pictures generated by the scanners give an outline of passengers bodies beneath their clothes.
Supporters say they detect hidden objects not picked up by traditional metal detectors. But critics say they amount to a virtual strip search.
The new scanners have already been introduced in several US airports and have been tested around the world.
The European Commission - which supports their implementation - has given assurances that the scanners will not be used routinely on all passengers.
“The Commission believes that body scanning methods can complement in a very effective and efficient way the existing security measures at airports,” said spokesman Jens Mester at EU headquarters in Brussels, Belgium.
Monday 20 October 2008
Mideast carriers urged to improve efficiency
Middle East carriers need to improve fuel efficiency and expand commercial freedoms to meet the rising challenges facing the industry, the International Air Transport Association (IATA) has said.
While European and US carriers have scaled back plans, Middle East airlines – buoyed by soaring oil prices – have largely avoided the turmoil hitting the industry.
But IATA director general and chief executive Giovanni Bisignani warned: “The oil price is falling but what we save in fuel we lose in revenue. This industry will lose $5.2 billion this year. Even the Middle East is not immune.”
Speaking at the AGM of the Arab Air Carriers Association, he said the combined profit of airlines based in the region would fall from £300 million in 2007 to $200 million this year.
And while traffic from the region’s carriers grew 18.1 per cent in 2007, in August this year growth dropped to just 4.3 per cent.
“Only a handful of carriers will be profitable while the majority bleed red ink,” said Giovanni. “The region’s fleet is set to double to 1,300 aircraft over the next decade. As we enter a period of global economic uncertainty, the challenge of matching capacity to demand will be difficult.”
While European and US carriers have scaled back plans, Middle East airlines – buoyed by soaring oil prices – have largely avoided the turmoil hitting the industry.
But IATA director general and chief executive Giovanni Bisignani warned: “The oil price is falling but what we save in fuel we lose in revenue. This industry will lose $5.2 billion this year. Even the Middle East is not immune.”
Speaking at the AGM of the Arab Air Carriers Association, he said the combined profit of airlines based in the region would fall from £300 million in 2007 to $200 million this year.
And while traffic from the region’s carriers grew 18.1 per cent in 2007, in August this year growth dropped to just 4.3 per cent.
“Only a handful of carriers will be profitable while the majority bleed red ink,” said Giovanni. “The region’s fleet is set to double to 1,300 aircraft over the next decade. As we enter a period of global economic uncertainty, the challenge of matching capacity to demand will be difficult.”
Saturday 18 October 2008
Aer Arann to axe quarter of workforce
Aer Arann to axe quarter of workforce
Irish budget airline Aer Arann is planning to cut 100 jobs – a quarter of its workforce – owing to the “difficult operating environment”.
The group said in a statement: “Aer Arann is committed to taking whatever steps are necessary to ensure the company’s viability and long-term development.”
The carrier employs 380 staff and operates 40 routes across Europe.
Irish budget airline Aer Arann is planning to cut 100 jobs – a quarter of its workforce – owing to the “difficult operating environment”.
The group said in a statement: “Aer Arann is committed to taking whatever steps are necessary to ensure the company’s viability and long-term development.”
The carrier employs 380 staff and operates 40 routes across Europe.
Thursday 16 October 2008
Spanair to lay off 90 pilots
Spanair to lay off 90 pilots
Spanair is to lay off 90 pilots as it looks to counter the global economic slowdown.
The airline, a Spanish subsidiary of Scandinavian airline SAS, agreed the job cuts with Spanish labour union Sepla. It is part of a plan to reduce operations in the Spanish destinations of Majorca, Tenerife, Alicante, Bilbao and Malaga and the Canary Islands.
Spanair has been hit hard by the global economic slowdown and higher fuel costs, while in August, more than 150 people died in the company’s worst air disaster in Madrid.
Spanair is to lay off 90 pilots as it looks to counter the global economic slowdown.
The airline, a Spanish subsidiary of Scandinavian airline SAS, agreed the job cuts with Spanish labour union Sepla. It is part of a plan to reduce operations in the Spanish destinations of Majorca, Tenerife, Alicante, Bilbao and Malaga and the Canary Islands.
Spanair has been hit hard by the global economic slowdown and higher fuel costs, while in August, more than 150 people died in the company’s worst air disaster in Madrid.
Tuesday 14 October 2008
Jet Airways lays off cabin crew
Jet Airways lays off cabin crew
Jet Airways has laid off 800 employees as it cuts flights amid soaring costs.
India’s largest private airline said cabin crew hired for a planned expansion programme, which had been suspended, would lose their jobs.
Jet said it expected to cut more jobs. Its announcement follows a recent cost-cutting alliance with India’s second largest private airline, Kingfisher.
The two airlines, which have nearly 60 per cent of the market in India, said the rise in the price of jet fuel by a quarter this year was a major factor in wanting to join forces in order to cut costs.
“As a first step, around 800 flight attendants, recently recruited for the planned expansion programme, which has now been suspended, have been released,” Jet Airways said in a statement.
“The other categories include probationary and unconfirmed personnel in other areas, including cockpit crew and management personnel, to reflect the lower number of flights and seats offered.”
The airline said it will be offering 15 per cent fewer flights than scheduled this winter because of “declining traffic volumes”.
Jet Airways has laid off 800 employees as it cuts flights amid soaring costs.
India’s largest private airline said cabin crew hired for a planned expansion programme, which had been suspended, would lose their jobs.
Jet said it expected to cut more jobs. Its announcement follows a recent cost-cutting alliance with India’s second largest private airline, Kingfisher.
The two airlines, which have nearly 60 per cent of the market in India, said the rise in the price of jet fuel by a quarter this year was a major factor in wanting to join forces in order to cut costs.
“As a first step, around 800 flight attendants, recently recruited for the planned expansion programme, which has now been suspended, have been released,” Jet Airways said in a statement.
“The other categories include probationary and unconfirmed personnel in other areas, including cockpit crew and management personnel, to reflect the lower number of flights and seats offered.”
The airline said it will be offering 15 per cent fewer flights than scheduled this winter because of “declining traffic volumes”.
Sunday 12 October 2008
Airline bankruptcies “to double”
Airline bankruptcies “to double”
The number of airline bankruptcies around the world this year is set to double over the winter to at least 70, a leading industry body has warned.
Mike Ambrose, director general of the European Regional Airlines industry body, said: “We are now up to around 35 (bankruptcies) this year. I see at least that number over the winter.”
He said that the current climate for airlines was “far more significant, far more far-reaching” than the period after September 11, describing 2008 as a “year from hell”.
He called for a lower regulatory burden for airlines, estimating that a European scheme to make airlines pay for carbon emissions could add six million euros a year to a typical regional airline.
The number of airline bankruptcies around the world this year is set to double over the winter to at least 70, a leading industry body has warned.
Mike Ambrose, director general of the European Regional Airlines industry body, said: “We are now up to around 35 (bankruptcies) this year. I see at least that number over the winter.”
He said that the current climate for airlines was “far more significant, far more far-reaching” than the period after September 11, describing 2008 as a “year from hell”.
He called for a lower regulatory burden for airlines, estimating that a European scheme to make airlines pay for carbon emissions could add six million euros a year to a typical regional airline.
Friday 10 October 2008
Wing flaps caused Madrid crash
Wing flaps caused Madrid crash
The Spanair jet that crashed in August had faulty wing flaps and a warning system that failed to sound, an initial report has found.
The MD-82 plane reached an altitude of just 12m (40ft) before flopping back down on to its tail and careering off the runway. It shot across 1km of scrub before falling into a ravine and bursting into flames at Madrid’s airport, killing 154 people on board.
The investigators’ preliminary report does not apportion blame, saying that the pilots carried out routine checks.
The investigators, who studied voice and flight data recorders, found no evidence of prior engine problems and concluded that the plane had caught fire only after hitting the ground.
It is unclear why the wing flaps failed to deploy, but the error was compounded by the failure of the cockpit alert system, which should have sounded a warning to the pilots.
A judge will now decide whether anyone can be held criminally responsible.
The Spanair jet that crashed in August had faulty wing flaps and a warning system that failed to sound, an initial report has found.
The MD-82 plane reached an altitude of just 12m (40ft) before flopping back down on to its tail and careering off the runway. It shot across 1km of scrub before falling into a ravine and bursting into flames at Madrid’s airport, killing 154 people on board.
The investigators’ preliminary report does not apportion blame, saying that the pilots carried out routine checks.
The investigators, who studied voice and flight data recorders, found no evidence of prior engine problems and concluded that the plane had caught fire only after hitting the ground.
It is unclear why the wing flaps failed to deploy, but the error was compounded by the failure of the cockpit alert system, which should have sounded a warning to the pilots.
A judge will now decide whether anyone can be held criminally responsible.
Wednesday 8 October 2008
BA to launch St Kitts service
BA to launch St Kitts service
British Airways has underlined its commitment to the Caribbean by launching flights to the idyllic Caribbean islands of St Kitts and Nevis this winter.
BA has more flights to the Caribbean than any other UK carrier. This will be further enhanced by weekly flights on Saturdays from Gatwick to St Kitts starting on January 10, 2009.
Adam Daniels, head of leisure sales, said: “The introduction of St Kitts as a British Airways route means we now operate to 11 destinations in the Caribbean.
“The region is performing extremely well for us. Our customers also tell us that they feel secure flying with an airline with an established heritage and longevity in the market in these turbulent times.”
Other route news from the airline also includes increasing flights to Dubai and Johannesburg next summer and moving Atlanta and Toulouse services from Gatwick to Heathrow Terminal 5. Heathrow flights to Dubai increase from 14 to 20 each week from March 29 next year, while flights from Heathrow to Johannesburg will increase from 14 to 19 each week from May 1, 2009.
Atlanta is the latest US destination that the airline is moving from Gatwick to Heathrow following the ‘open skies’ agreement. Daily flights head to Heathrow from March 29, 2009.
Toulouse flights will also move from Gatwick to Heathrow on March 29, 2009, with two flights each day to the Rose City.
British Airways has underlined its commitment to the Caribbean by launching flights to the idyllic Caribbean islands of St Kitts and Nevis this winter.
BA has more flights to the Caribbean than any other UK carrier. This will be further enhanced by weekly flights on Saturdays from Gatwick to St Kitts starting on January 10, 2009.
Adam Daniels, head of leisure sales, said: “The introduction of St Kitts as a British Airways route means we now operate to 11 destinations in the Caribbean.
“The region is performing extremely well for us. Our customers also tell us that they feel secure flying with an airline with an established heritage and longevity in the market in these turbulent times.”
Other route news from the airline also includes increasing flights to Dubai and Johannesburg next summer and moving Atlanta and Toulouse services from Gatwick to Heathrow Terminal 5. Heathrow flights to Dubai increase from 14 to 20 each week from March 29 next year, while flights from Heathrow to Johannesburg will increase from 14 to 19 each week from May 1, 2009.
Atlanta is the latest US destination that the airline is moving from Gatwick to Heathrow following the ‘open skies’ agreement. Daily flights head to Heathrow from March 29, 2009.
Toulouse flights will also move from Gatwick to Heathrow on March 29, 2009, with two flights each day to the Rose City.
Monday 6 October 2008
Forty injured in Qantas jet
Forty injured in Qantas jet
A Qantas aircraft made an emergency landing in Western Australia after 40 people were injured following a “sudden change in altitude”.
The Airbus A330-300, flying from Singapore to Perth with 313 people on board, landed at Learmonth Airport in Exmouth after making a mayday call.
Qantas, which operates the route on a code-share with BA, said there was no sign yet as to what caused the altitude change. Emergency services, including medical personnel, met the aircraft on landing.
A number of those injured suffered fractures and lacerations, Qantas said. Ten people with severe injuries were taken to hospital.
The Royal Flying Doctor Service has sent two aircraft to Exmouth to help transport the injured to the state capital Perth, around 1,100km (700 miles) south of the town, if necessary.
The police later said Qantas was sending two planes to bring the rest of the passengers to Perth.
A Qantas aircraft made an emergency landing in Western Australia after 40 people were injured following a “sudden change in altitude”.
The Airbus A330-300, flying from Singapore to Perth with 313 people on board, landed at Learmonth Airport in Exmouth after making a mayday call.
Qantas, which operates the route on a code-share with BA, said there was no sign yet as to what caused the altitude change. Emergency services, including medical personnel, met the aircraft on landing.
A number of those injured suffered fractures and lacerations, Qantas said. Ten people with severe injuries were taken to hospital.
The Royal Flying Doctor Service has sent two aircraft to Exmouth to help transport the injured to the state capital Perth, around 1,100km (700 miles) south of the town, if necessary.
The police later said Qantas was sending two planes to bring the rest of the passengers to Perth.
Saturday 4 October 2008
IATA: 20 airlines face bankruptcy
IATA: 20 airlines face bankruptcy
The International Air Transport Association (IATA) has warned that at least 20 international carriers are at risk of bankruptcy amid the worst crisis the industry has ever faced.
The International Air Transport Association (IATA) said passenger demand growth in August slowed to 1.3 per cent, following disappointing growth of 1.9 per cent in July.
Passenger load factors fell to 79.2 per cent – a sharp drop-off from the 81 per cent recorded during the same period last year as capacity growth outpaced demand.
Giovanni Bisignani, IATA’s director general and chief executive officer, said: “The global industry is in a perfect storm of high fuel costs and falling demand.
“The financial turmoil in the US is also affecting the airline industry and at least 20 airlines are at risk. The industry crisis is deepening and no region is immune.”
IATA forecasts the industry will make a loss of $5.2 billion this year and $4.1 billion in 2009.
The International Air Transport Association (IATA) has warned that at least 20 international carriers are at risk of bankruptcy amid the worst crisis the industry has ever faced.
The International Air Transport Association (IATA) said passenger demand growth in August slowed to 1.3 per cent, following disappointing growth of 1.9 per cent in July.
Passenger load factors fell to 79.2 per cent – a sharp drop-off from the 81 per cent recorded during the same period last year as capacity growth outpaced demand.
Giovanni Bisignani, IATA’s director general and chief executive officer, said: “The global industry is in a perfect storm of high fuel costs and falling demand.
“The financial turmoil in the US is also affecting the airline industry and at least 20 airlines are at risk. The industry crisis is deepening and no region is immune.”
IATA forecasts the industry will make a loss of $5.2 billion this year and $4.1 billion in 2009.
Thursday 2 October 2008
True provenance at 35,000 feet for BA
True provenance at 35,000 feet
British Airways is considering introducing TV dinners at 35,000 feet following the success of a menu created for BBC Two’s ‘The Restaurant’ series.
Three couples were challenged by top chef Raymond Blanc to create a dish for First Class BA customers.
The clear favourite was roast saddle of organic Manor Dorset lamb, served on baked turnip round, with a warm radish salad and lavender jus, created by Kent couple Lindsie and Tim Selby, who run a restaurant in the series named ‘True Provenance’.
The judges included Raymond Blanc and his two inspectors, as well as representatives from BA and catering supplier Gate Gourmet.
Catering manager Carol Conway said: “We think this dish is so good we are considering including it in our next seasonal menu. Lindsie and Tim’s restaurant concept mirrors the new focus for our food, particularly the emphasis on quality and the importance of British and seasonal ingredients.”
British Airways is considering introducing TV dinners at 35,000 feet following the success of a menu created for BBC Two’s ‘The Restaurant’ series.
Three couples were challenged by top chef Raymond Blanc to create a dish for First Class BA customers.
The clear favourite was roast saddle of organic Manor Dorset lamb, served on baked turnip round, with a warm radish salad and lavender jus, created by Kent couple Lindsie and Tim Selby, who run a restaurant in the series named ‘True Provenance’.
The judges included Raymond Blanc and his two inspectors, as well as representatives from BA and catering supplier Gate Gourmet.
Catering manager Carol Conway said: “We think this dish is so good we are considering including it in our next seasonal menu. Lindsie and Tim’s restaurant concept mirrors the new focus for our food, particularly the emphasis on quality and the importance of British and seasonal ingredients.”
Tuesday 30 September 2008
Icelandic-owned airline bankrupt
Icelandic-owned airline bankrupt
The Icelandic-owned Danish budget airline Sterling Airways is to file for bankruptcy.
The airline blamed the Icelandic financial collapse for making its owner unable to continue funding its restructuring programme.
Sterling, owned by Iceland’s Northern Travel Holdings, operated flights between Scandinavian airports and a range of other European destinations such as Alicante, Malaga and Nice.
It has cancelled all its flights, leaving passengers stranded.
“Over a three to four week period, the whole [Icelandic] financial system melted down, and that resulted in our shareholder being unable to continue his support to the company,” Sterling said in a statement on its website.
“Negotiations have been conducted with several potential investors, but it was impossible to make ends meet.”
The Icelandic-owned Danish budget airline Sterling Airways is to file for bankruptcy.
The airline blamed the Icelandic financial collapse for making its owner unable to continue funding its restructuring programme.
Sterling, owned by Iceland’s Northern Travel Holdings, operated flights between Scandinavian airports and a range of other European destinations such as Alicante, Malaga and Nice.
It has cancelled all its flights, leaving passengers stranded.
“Over a three to four week period, the whole [Icelandic] financial system melted down, and that resulted in our shareholder being unable to continue his support to the company,” Sterling said in a statement on its website.
“Negotiations have been conducted with several potential investors, but it was impossible to make ends meet.”
Sunday 28 September 2008
Luthansa starts new London-Milan service
Luthansa starts new London-Milan service
Luftansa will launch a direct flight from Heathrow to Milan next summer. The German carrier, will start flying to Italy’s business capital as part of a wider expansion of flights connecting Milan’s Milpensa airport to several major European cities.
www.lufthansa.com
Luftansa will launch a direct flight from Heathrow to Milan next summer. The German carrier, will start flying to Italy’s business capital as part of a wider expansion of flights connecting Milan’s Milpensa airport to several major European cities.
www.lufthansa.com
Friday 26 September 2008
Air Mauritius introduces a step into modern flying
Air Mauritius introduces a step into modern flying
Air Mauritius has announced the launch of its new business class product across all UK routes. This includes lie flat cocoon seats which offer passengers a 60 inch seat pitch, adn a recline capacity of 172 degrees. Also new to Air Mauritius is AVOD – Audio Video on Demand. A standard product on many of the traditional carriers, AVOD will be a feature in all cabins, allowing passengers to access digital quality, multi language videos and an extensive audio library.
www.airmauritius.com
Air Mauritius has announced the launch of its new business class product across all UK routes. This includes lie flat cocoon seats which offer passengers a 60 inch seat pitch, adn a recline capacity of 172 degrees. Also new to Air Mauritius is AVOD – Audio Video on Demand. A standard product on many of the traditional carriers, AVOD will be a feature in all cabins, allowing passengers to access digital quality, multi language videos and an extensive audio library.
www.airmauritius.com
Wednesday 24 September 2008
UK rules out scrapping liquids restrictions
UK rules out scrapping liquids restrictions
The UK government has ruled out lifting restrictions on carrying liquids and gels in hand luggage on flights, despite calls from major airlines to review them. Under current rules, passengers at UK airports cannot carry any vessel containing over 100ml of liquid through customs. The rule has provoked criticism from several airlines and airport staff, who claim it causes confusion and delays for passengers.
www.flightmapping.com
The UK government has ruled out lifting restrictions on carrying liquids and gels in hand luggage on flights, despite calls from major airlines to review them. Under current rules, passengers at UK airports cannot carry any vessel containing over 100ml of liquid through customs. The rule has provoked criticism from several airlines and airport staff, who claim it causes confusion and delays for passengers.
www.flightmapping.com
Saturday 20 September 2008
Families with young children could face segregation on flights
Families with young children could face segregation on flights
A US consumer survey has found that the majority of air passengers would like people who fly with young children to be seated in a separate area of the plane. The survey carried out by airfarewatchdog.com found that 85% of the 10,000 travellers polled thought that segregating those travelling with children from other passengers was a good idea, due to frustrations with hyperactive kids and crying babies. Even large portions of parents were in support of seating configurations that kept younger travellers separate from the rest of the cabin.
ww.flightmapping.com
A US consumer survey has found that the majority of air passengers would like people who fly with young children to be seated in a separate area of the plane. The survey carried out by airfarewatchdog.com found that 85% of the 10,000 travellers polled thought that segregating those travelling with children from other passengers was a good idea, due to frustrations with hyperactive kids and crying babies. Even large portions of parents were in support of seating configurations that kept younger travellers separate from the rest of the cabin.
ww.flightmapping.com
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