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.
Friday 31 October 2008
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.”
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