Showing posts with label Thomas Cook Airlines. Show all posts
Showing posts with label Thomas Cook Airlines. Show all posts

Tuesday, 11 October 2011

UK aviation policy, a royal mess



http://uk-airlines-news.aerosoftseo.com/
http://uk-airlines-news.blogspot.com/



For those who have been befuddled by the ongoing assaults on aviation in the UK, there has been some validation of their misgivings, but little cause for optimism.

A letter dated August 12 to Olivier Jankovec, director general of the Brussels-based Airports Council International has been leaked to the press. In it Chancellor of the Exchequer, George Osborne, has admitted that “APD is fundamentally a revenue raising duty and currently raises around GBP2.5 billion per year.” This puts to rest any notion that the levy was somehow connected to environmental concerns, revealing the real purpose behind the scheme, which imposes the world’s steepest taxes on travelers.

Also in recent statements, Osborne has indicated that additional APD increases will be implemented in the near future. Critics of the tax cite a 50-70% drop in traffic at many regional airports and attribute that decline to the current APD levels. They note that not only does it hurt the regional airports, but it also drives those determined to travel to the already overtaxed London area airports.

Heathwick?
Additionally, the proposal of a high-speed rail connection between Heathrow and Gatwick—immediately dubbed Heathwick—has drawn criticism across the board. The plan, ostensibly designed to create a virtual “mega-hub”, envisions a joining of the runway capacity at the two airports as an alternative to the politically unpopular construction of additional runways.

Supporters of the concept have noted that an expansion of mainline flights at Gatwick will push up the price of LGW operations and eventually force LCCs and charter operators to the underused and generally unpopular Stanstead.

“No thanks” from operators
The proposal has drawn universal condemnation from airlines, the BAA and many others who see the GBP5-8 billion project as bringing little improvement to the core problem, lack of adequate runway capacity in Southeast England.

IAG Chairman Willy Walsh commented that,“It is not an efficient way of doing things. The cost would clearly be significantly greater than the previous options that have been rejected. I struggle to see how it would be funded. The airports are not owned by the same owner.”

And in a rather mildly stated response, Ryanair’s Michael O’Leary said, “There is no way of moving the budget airlines out of Gatwick.”

A report that will be DOA?
A report is due to be published next spring with further details on possible solutions to the capacity problem but given the cost, delay and solid opposition to the plan, it appears unlikely that it will gain much traction when released.

Observers contend that these policies, taken together, pose a significant risk to the future of British tourism, according to the tourist organization, Visit Britain. In 2010 over 70% of the UK’s visitors arrived by air and were therefore subject to the APD.
If you charge it, they will not come
However, more troubling is the gradual decline of tourists from key markets, especially North America, whose visitors have brought the highest spend whilst in the UK, a number that is also declining.

While the past three years have provided ample reasons for visitor declines, many believe that increasing taxes on travelers at a time of economic contraction is certain to exacerbate an already difficult situation. Further APD increases are seen as contributing to a continued decline.

Change in annual number of inbound visits by region of world
APD cost/benefit questioned
While the APD may have raised GBP2.5billion, research “shows that the size of the [UK’s] heritage-tourism sector is in excess of GBP12.4 billion a year and supports an estimated 195,000 full-time jobs – this makes the sector bigger than the advertising, car or film industries.” Whether or not increased APD amounts will permanently alter the precarious balance of traveler cost/benefit is still a matter of conjecture, but many in the tourism industry are becoming ever more wary that it is a bad bargain for the nation.

The quixotic nature of multiple UK policies stands in contrast to much of the rest of Europe, where visitor numbers continue to climb. France continues to be the world’s most popular destination and has posted year-on-year increases. In 2010, Germany had a record year for tourist arrivals.


Centre for Asia Pacific Aviation
For those who have been befuddled by the ongoing assaults on aviation in the UK, there has been some validation of their misgivings, but little cause for optimism. A letter dated August 12 to Olivier Jankovec, director general of the Brussels-based ...
Aviation International News
The UK proposal to extend airlinepassenger duty to business aircraft is a prime example of this trend. At the same time Gamba argued that there is a need for more proactive regulation in some areas, such as clamping down on illegal charter flights....
BBC News
A group of US and Canadian-based airlines and airlineassociations had challenged UKmeasures to implement the scheme at the High Court in London, which in turn asked the ECJ to deliberate.UK Energy and Climate Change Minister Greg Barker welcomed the ...
Aviation International News
It was only last year that Starlink Aviationsigned a licensing agreement that made the Montreal facility a Signature location. “We have outperformed the local market every month since joining the Signature family,” said Glen Lynch, president and CEO ...

Monday, 10 October 2011

Willie Walsh attacks 'Heathwick' plan



Mr Walsh said that the Government's lack of a coherentaviation policy was a "scandal" and that theUK was in danger of losing out on economic development opportunties by failing to connect with overseas markets. Congestion at Heathrow, which is 98pc ...

A group of US and Canadian-based airlines and airlineassociations had challenged UKmeasures to implement the scheme at the High Court in London, which in turn asked the ECJ to deliberate.UK Energy and Climate Change Minister Greg Barker welcomed the ...

-signature of a MOU between BAE Systems and DASSAULT AVIATIONin order to prepare a joint proposal for a MALE (Medium Altitude Long Endurance UAV). The project, named TELEMOS, will be proposed to French and UK MoDs. BAE Systems will be the prime ...
Huffington Post
UK-based Thomson Airways is getting in on the alternative fuels trend. It became the first UK airline to fly passengers using biofuel Thursday with a flight from Birmingham, England to Arrecife in the Canary Islands. The trip was made by 232 passengers ...

Monday, 26 September 2011

What Sir Stelios did next: set up a rival airline to easyJet


What Sir Stelios did next: set up a rival airline to easyJet


The most dysfunctional business relationship in aviation took another bizarre turn yesterday when it emerged that Sir Stelios Haji-Ioannou, the billionaire founder of easyJet, is proposing to set up another airline, called Fastjet.

The news broke when easyJet issued an angry statement insisting that its agreement with Sir Stelios restricted his options for establishing potential competition for the low-cost airline, saying that it would "take necessary action" to protect the brand.

The rift between the UK's biggest carrier by passenger numbers and its largest shareholder has dogged the airline for years. Recently it has centred on the rate of expansion of the airline and the terms by which Sir Stelios's easyGroup licences the name to easyJet. But at the root appears to be the self-styled entrepreneur's unhappiness at ceding control of the airline that transformed European aviation.

Stelios Haji-Ioannou was young, gifted and rich when he decided to set up a no-frills airline in 1995. As an industry outsider, he proved the ideal pioneer: questioning every aspect of conventional airline operations, from travel-agents' commission to inflight catering. From an airline with a questionable livery painted on two borrowed Boeings, it has grown to a fleet of almost 250 Airbus jets – and in the process dramatically cut the cost of flying for the mass market.

So successful they have been that it is difficult to see what space there might be for another start-up airline. The only clues yesterday were two websites, e-jet.com and Fastjet.com, both registered to easyGroup, Sir Stelios's holding company. Both have a deep red background and the message "By Stelios. Coming soon!"

Speculation has included the possibility that the entrepreneur may emulate his mentor Sir Richard Branson, and start researching supersonic travel – or at least revive the idea of Boeing's "Sonic Cruiser", flying close to the speed of sound. But the most likely model is an innovation based on more efficient usage of executive jets – in a sense, the opposite of democratic, mass-market easyJet. At present business aviation is a thoroughly inefficient industry, involving many "empty legs" – planes flying with no passengers. It is conceivable that an entrepreneur with vision and cash can come up with a web-based system that turns the business on its head, as easyJet did.

This would put him in opposition to established aviation interests, particularly the conventional airlines with business cabins, such as BAA, Air France and Lufthansa. But it is also possible that he will simply aim to emulate easyJet, despite the constraints on slots at conventional airports – and the legal threats from the airline.

His easy empire

easyRentacar (Launched April 2001)

A brilliant idea that was ahead of its time. Stelios procured a fleet of A-class Mercedes and rented them out for as short as time as one hour. It mutated into easyCar – a standard car-rental broker.

easyCinema (Launched May 2003)

Could film fans be lured to the cinema by the promise of a 20p film? Not in sufficient numbers. Stelios abandoned the "bricks and mortar" strategy in 2006 – now runs mainly as a DVD rental and cinema booking service.

easyBus (Launched August 2004)

The most enduring terrestrial transportation venture is easyBus, which has mutated into a frequent, low-cost airport bus link.

easyEverything (Launched June 1999)

A chain of city centre internet cafes. The high rents made it unprofitable. Rebranded as easyInternetCafe after a £15m cash injection from Stelios, and devolved to franchisees by 2009.
The Independent
The rift between theUK's biggest carrier by passenger numbers and its largest shareholder has dogged the airline for years. Recently it has centred on the rate of expansion of theairline and the terms by which Sir Stelios's easyGroup licences the ...
Centre for Asia Pacific Aviation
As Boeing's B787 Dreamliner transitions from development and certification to airlineoperation, airlines are so far proving the type to be more utilitarian, replacing less-efficient predecessors, than network changing. Even if the B787 does not come ...
Financial Times
By Andrew Parker The UK is at serious risk of missing out on trade with emerging markets worth £14bn during the next decade because of inadequate aviationlinks, according to a report. The inability of London's overstretched Heathrow airport to support ...
Evening Standard
The Government's consultation on UK aviation strategy closes at the end of this week. It urgently needs to set out a clear, sustainable policy framework that meets the challenges of the future. London needs extra capacity now - even if that requires ...

Wednesday, 21 September 2011

IATA warns of 'brittle' aviation industry



http://uk-airlines-news.aerosoftseo.com/
http://uk-airlines-news.blogspot.com/


The world’s airlines face a more difficult year in 2012 despite an upgrading in profit expectations for 2011 from $4 billion to $6.9 billion.

The warning came from IATA which described profitability as still “exceptionally weak” at a net margin of just 1.2% on total revenues of $594 billion, despite the improvement in forecast figures.

IATA is projecting profits to fall to $4.9 billion on revenues of $632 billion on a net margin of just 0.8%, with European carriers predicted to struggle the most.

The airline body called on the UK government to rethink plans to further tax the industry. IATA’s forecast is built around global projected GDP growth of 2.5% in 2011 dropping to 2.4% in 2012.

Airline financial performance is closely linked to the health of world economies. Whenever GDP growth has slowed below 2.0% the airline industry has lost money, according to IATA.

“We will be perilously close to that level at least through 2012. The industry is brittle. Any shock has the potential to put us in the red,” said director general and chief executive Tony Tyler.

“Airlines are going to make a little more money in 2011 than we thought. That is good news. Given the strong headwinds of high oil prices and economic uncertainty, remaining in the black is a great achievement.

“But we should keep the improvement in perspective. The $2.9 billion bottom line improvement is equal to about a half a percent of revenue. And the margin is a paltry 1.2%. Airlines are competing in a very tough environment. And 2012 will be even more difficult.”

The fourth quarter of 2011 and the first half of 2012 may well see the weakest point for air transport markets, IATA believes.

Tyler added: “It looks like we are headed for another year in the doldrums. With business confidence declining, it is difficult to see any potential for significant profitable growth.

“Relatively stronger economic growth and some rebound in cargo will help Asia Pacific airlines to maintain their 2012 profits close to 2011 levels at $2.3 billion.

“The rest of the industry will see declining profitability. And the worst hit is expected to be Europe where the economic crisis means the industry is only expected to return a combined profit of $300 million. A long slow struggle lies ahead,” warned Tyler.

“As governments seek to re-start troubled economies, a strategic approach to aviation policy would deliver broad economic benefits. Every plane that takes off is a catalyst for economic growth and prosperity.

“Governments must carefully evaluate the negative impact of the current high levels of taxation, absolutely resist increases or new taxes, and develop policies that support aviation’s growth with efficient infrastructure.

“Time and again aviation has shown its resilience. People need and want to travel. Now is the time to harness the economic possibilities that this presents,” said Tyler.

Travel Weekly UK
The airline body called on the UKgovernment to rethink plans to further tax the industry. IATA's forecast is built around global projected GDP growth of 2.5% in 2011 dropping to 2.4% in 2012. Airline financial performance is closely linked to the ...
Belfast Telegraph
... years ago - and it comes at a time when the airline industry's global body is claiming billions are being wasted on unnecessary security checks for travellers. The International Air Transport Association (IATA) has warned that the main UKairports, ...
Antigua Observer
The United Kingdom's flag carrier airline has called on the British government to scrap the APD and said thatUK tourism industry is suffering from the “heaviest tax burden in global aviation.” While cutting its flights to the region, the airline ...
Telegraph.co.uk
Speaking at The Telegraph Festival of Business in Manchester he said that his was a Government ready to back British business and ensure that theUK economy would soon bounce back. This week, as we reveal today, the Government's "no expansion" aviation ...