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AIR & BUSINESS TRAVEL NEWS - 29/05/06

 
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Jim Mason
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PostPosted: Mon May 29, 2006 4:11 am    Post subject: AIR & BUSINESS TRAVEL NEWS - 29/05/06 Reply with quote



AIR & BUSINESS TRAVEL NEWS

A WEEKLY NEWS REVIEW PUBLISHED EVERY MONDAY
PO Box 1315, Potters Bar, Herts EN6 1PU, United Kingdom
Tel: +44 (0)1707 665454
All enquiries: info (AT) abtn (DOT) co.uk

In conjunction with The Times business travel on line
http://www.timesonline.co.uk/businesstravel

29 MAY 2006

This week’s issue of ABTN is brought to you by Paul Norris, journalist
and sometime news editor of Travel Weekly. In the meantime the editor
continues with his losing battle with BT and is still not back on line
with Internet after having been cut off three weeks ago, an error they
have admitted. Our advice is use someone else. If you are expecting a
reply please bear with him. Once back on line he will attempt to catch
up.


BREAKING NEWS is that Ferrovial, which leads the consortium aiming to
buy BAA, is backing an Office of Fair Trading initiative to examine
competition in the UK airports market. The Spanish giant also said it
would co-operate in any investigation if it bought BAA, a move
designed to ramp up its bid in the face of opposition from the UK
airport owner. BAA has previously resisted attempts to examine its
stranglehold on key areas of UK aviation, most notably London and
Scotland. BAA owns airports which handle 63% of passengers in the UK.
This rises dramatically in the London area, where it has 92% of the
market, and Scotland, where it has 86%. If the OFT review goes against
BAA, there could be a referral to the European Union Competition
Commission. BAA is trying to fight off Ferrovial with a £750m cashback
for investors if a takeover bid by Spain's Ferrovial fails.
Shareholders are set to receive a letter setting out the handout –
which may well have been previously set aside for investment in the
group’s seven UK airports – and how BAA will combat any renewed bid by
the consortium. The company has until today (29 May) to unveil its
official defence against Ferrovial's bid, while any takeover has been
cleared by the European Commission. It claims it is worth £10bn,
compared with the consortium’s £8.75bn bid. As well as the offer from
the Spanish construction firm, the company has also rejected an
approach from a consortium led by US bank Goldman Sachs.
http://www.oft.gov.uk http://www.baa.com

___________________________________________________________________________


AIR NEW ZEALAND – UK investment for second daily
AIRBUS – July deadline for A350 project
ALITALIA – Volare hopes dashed
AMERICAN AIRLINES – facing $1bn in cuts
ATATURK INTERNATIONAL AIRPORT – confusion of fire starters
BALTIA AIR LINES – US start-up targets Russia
BELARUS – ban on western airlines?
CHECK-IN – be on time or face a fine
EXCEL AIRWAYS – Irish launch
GALILEO INTERNATIONAL – scores with World Cup rooms
GLASGOW AIRPORT – revamp hits taxis
HOTELS – corporate spin out, authentic review in
KINGS CROSS – a hotel of class arrives
MUMBAI – privatisation benefits
NIGERIA – tackling poor safety record
ROOM RATES – on the rise across Europe
RYANAIR – adverts rapped, again
SOUTH AMERICAN CARRIERS – US softens its stance
STAR ALLIANCE – China expansion
VARIG – aircraft seized in New York

ON TOUR: Berlin, 70 years on
INCIDENTALLY: Ryanair’s bare-faced cheek


COMMENT: Blood on the tracks

It is a fact that train companies fight hard to stop any real
competition on their monopoly routes at the expense of customer
choice. That GNER has launched a legal challenge against the decision
to allow a rival operator to start services on ‘its’ East Coast Main
Line is no surprise. Sure the company says it welcomes competition
(really!), but wants the same terms as its new rival Grand Central.

GC is poised to start service from the north-east to London this
winter after winning approval from the Office of Rail Regulation. This
operation, along with the Hull Trains service from Humberside, will
give real competition on one of the key business travel stretches of
track in the UK.

But GNER wants a judicial review against the ORR decision, citing
unfair competition as GC allegedly pays reduced track charges. A judge
will hear the case in July, and let’s hope commonsense prevails. Part
of GNER’s case is questioning why GC needs to stop at York, a major
interchange already served by 61 trains a day. No prizes for guessing
whose trains those are.

GNER has enjoyed a clear run up and down the East Coast Main Line from
London for ten years. Surely, if rail operators want to regain public
trust and sympathy, competition must be widened in the rail network.
Almost all major train companies enjoy a virtual monopoly on the
long-distance routes, with the result that fares are exorbitant,
restrictions rife and choice non-existent.

Take First Great Western. It has a monopoly on long-distance routes
out of London Paddington to Wales and the West Country. And the same
applies to South West Trains out of London Waterloo.

Virgin enjoys a similar monopoly on its cross-country routes, while
around London the network is generally run by one operator.

There is some cross over for part of the journey, but for long haul
train travel in the UK, the choice is usually one rail company and its
prices.

MPs have reignited the debate over the privatised rail companies and
their drive for profits at the expense of consumer choice, cheap fares
and transparency. It is good to have that discussion. The transport
committee said tickets were unnecessarily complicated, walk-on fares
were too high and rail companies were “not giving value for money”.
Hard to argue with that. Bearing in mind the private rail companies
receive taxpayers’ cash in huge subsidies, MPs are right to question
their ‘profit before service’ approach.

Rail companies will argue they do offer cheap fares, but only if you
book way in advance and travel on a Tuesday lunchtime. And even then
the goalposts are moved at peak holiday times or the cheap tickets are
simply taken off sale. They hold commuters and passengers to ransom if
they must travel at short notice or at convenient times.

Train companies should learn from the airlines, which incidentally
regularly offer cheaper fares than the railway on the same UK routes.
It really is something when it is cheaper to fly than get the train.

BA once had a virtual monopoly from this country and complained
bitterly when the likes of Virgin Atlantic, Ryanair or easyJet came in
and offered better deals or simply choice.

But now look at BA, it is profitable and doing much better than most
of its European or global rivals. Competition has done our one-time
flag carrier some good and it should help the rail operators become
more efficient too.

Until the rail industry really does embrace competition on
long-distance routes, consumers will be hit with huge fares and no
choice. Although it had to struggle at first Virgin Trains has got
better and better in terms of fares and what it offers. It is in
competition with the airlines!

How long will the Association of Train Operating Companies have to
keep wheeling out director general George Muir to defend fare rises
and lack of competition?
___________________________________________________________________

AIR NEW ZEALAND is training 140 extra cabin crew in preparation for
its additional daily London service, via Hong Kong, to Auckland, which
will be introduced in October. The flight, which doubles capacity from
the UK to New Zealand, will be the first from a Star Alliance carrier
to Hong Kong from London. A three-class Boeing 747-400 will operate
the service, offering 46-bed seats in Business Premier. The new flight
also effectively gives the airline a round-the-world operation, as it
also flies Down Under via the US. http://www.airnewzealand.com

AIRBUS’ plans for the A350 long haul aircraft will be much clearer in
time for the start of the Farnborough Air Show in July. Transport
ministers of the four countries involved with Airbus will decide
before 17 July on any loans for the A350. Ministers are currently
discussing the project and will meet imminently to consider a major
re-vamp of the project. This follows calls for changes from potential
customers who say that the aircraft is not competitive with Boeing’s
all new 787. Qatar Airways is apparently poised to re-think a £5.3bn
deal to buy 60 A350s from Airbus. http://www.airbus.com

ALITALIA’s E38m bid for collapsed Volare has been thrown out by an
Italian court. Rival Air One has instead been given the go-ahead to
purchase the airline, which has prized slots at Milan's Linate
Airport. Alitalia, which wanted Volare to boost its domestic business,
has estimated it would lose E125m in revenues by 2008 if Volare went
to Air One. Volare collapsed last year. http://www.alitalia.com

AMERICAN AIRLINES is facing $1bn in cuts over the next year to stay
viable, according to chief executive Gerard Arprey. He told
shareholders that the key to profitability is to be on the lookout for
cost-cutting measures and to aggressively change business plans when
needed. American lost $92m in its first quarter. No details were given
of how the cost-cutting would be implemented, but better fuel
efficiency will be one of the keys. http://www.aa.com

ATATURK INTERNATIONAL AIRPORT officials in Istanbul are playing down
claims that Kurdish freedom fighters started the blaze which destroyed
the cargo area last week. Commercial flights were delayed as
firefighting aircraft dropped water on the fire, which officials say
was started by an electrical fault. The airport, which handles 60,000
daily passengers, was only opened in 2000 and serves as the country’s
major aviation hub. Investigations and rebuilding are ongoing, but
commercial flights operate as normal. http://www.ataturkairport.com

BALTIA AIR LINES is set to launch flights from New York JFK to St
Petersburg in Russia. Using a Boeing 747, the start-up hopes to break
the monopoly enjoyed by Delta Air Lines, which is the only other US
carrier offering service to Russia. Baltia is traded on Nasdaq and in
Frankfurt. After JFK – St. Petersburg, other New York routes will
include Moscow, Riga, Kiev and Minsk. Baltia Air Lines' mission is to
be the number one airline between the US and eastern Europe.
http://www.baltia.com

BELARUS, the former Soviet country between Poland and Russia, is
threatening to ban overflights by western airlines. President
Alexander Lukashenko said he might ban the flights in response to
sanctions against Belarus in connection with his disputed re-election.
He suggested airlines could go over neighbouring Baltic states or the
Ukraine to the south. The United States and European Union have barred
Lukashenko in response to claims of rigging in his March re-election.

CHECK-IN rules have been highlighted by a judge in Bradford. He
dismissed a prosecution brought by a family against Jet2.com after not
making their flight due to arriving late at check-in. They had already
missed a train from Yorkshire causing the delay. The judge ruled that
the family had not allowed enough time to check-in for the flight. The
family were forced to pay court costs and the airline’s costs of £300.
http://www.jet2.com

EXCEL AIRWAYS is launching in Ireland to offer long haul and short
haul charter flights to major European, north African and US holiday
destinations. The operation is being run by Bill Smith and Carol Anne
O'Neill, who were both senior executives at Irish holiday group
FalconHolidays/JWT. Services start in May 2007 with routes including
Florida, mainland Spain, the Balearics, Canary Islands, Portugal,
Greece, Bulgaria, Turkey, Cyprus and Egypt. The company says it
expects to carry in excess of 65,000 passengers in the first year.
http://www.xl.com

GALILEO INTERNATIONAL is offering comprehensive hotel accommodation
during the Germany 2006 World Cup using sister company Gullivers
Travel Associates. GTA has secured rooms in all cities where matches
are being played, allowing fans to book via their Galileo-equipped
travel agency. As well as host cities, agents also have access to a
large number of rooms in nearby centres close to stadiums where the
teams are playing. http://www.galileo.com

GLASGOW AIRPORT has told private taxi owners and customers arriving by
car that they can no longer pull up outside the terminal building.
From June, the designation of the inner and outer lanes outside the
airport will be redesignated to only give buses and licensed cabs the
right to drop off closest to the terminal. Private cars and private
taxis will only be allowed to drop-off passengers at the outer lane.
And the airport will be using Automatic Number Plate Recognition
technology together with drop-down barriers to ensure the new rules
are adhered to. More than 1,400 vehicles access the forecourt every
hour during peak periods and the airport says the changes are for
safety reasons. http://www.glasgowairport.com

HOTELS have been warned to expect an increasing number of guests
relying on word-of-mouth, personal websites and real-life experiences,
before booking their room. Slick marketing and brand value is being
ignored as travellers turn to the web for authentic reviews rather
than relying on what hoteliers tell them. The headache for the chains
was highlighted at the Hotel Electronic Distribution Network
Association’s conference and underlines the move to independent
booking, based on word-of-mouth rather than any brand loyalty.
http://www.hedna.org

KINGS CROSS is once again to be the home of one of London’s finest
hotels. The former Midland Grand at St Pancras Station (and the St
Pancras Chambers in more recent times) is to re-open as the
Renaissance St Pancras Hotel in early 2009 after a £100m makeover. The
Grade 1 English Heritage-listed Victorian building adjoins the new
Eurostar terminal. The top floors will consist of 67 residential
apartments ranging in price from £450,000 to £3m for a penthouse
suite. The property includes a ballroom and conference services
offering 52 rooms in the main Gothic structure and 193 in a brand new
extension at the rear. Full business facilities are being
incorporated. http://www.marriott.com

MUMBAI, easily the most popular Indian international gateway from the
UK, served by Air India, bmi, British Airways, Jet Airways and Virgin
Atlantic, is quickly benefiting from its recent privatisation. There
is now an airside shuttle between the international and domestic
terminals which dramatically cuts down transfer times making it the
preferred connecting point to and from regional points. Jet Airways
luggage check-in is straight after customs, a boom for passengers
linking on to other flights. BA has a new check-in area for its First
Class and Club World passengers away from the very busy terminal
(which incidentally bans non-flying visitors). In the domestic
terminal a major new very modern landside facility will open
imminently. Jet benefits most with its own dedicated check in area and
also a large and well provided executive lounge the other side of
security. Jet has also completed its first full service maintenance
hangar, all 21st century including a large classroom element hidden
away in the roof structure. http://www.mumbaiairport.com

NIGERIA, infamous for poor aviation safety, has taken steps to tighten
up its airline industry by raising the capital needed to operate in
the country. The move follows two crashes last year which killed 223
people. Domestic, regional and international carriers will need to
show they have capital between $4m to $16m to gain agreements with the
Nigerian government to fly. The new amounts are up to 100 times more
than previously demanded.

ROOM RATES are going up in the UK, France, Germany, the Netherlands,
Spain and Italy. Average rates, according to online reservation
company Active Hotels, were up 5% to reach E96 (£66) in the first
quarter of 2006, compared to 2005. Germany and the Netherlands were
highest at 9%, France increased by 8% and Spain and Italy 7%. UK room
rates remained level with a growth rate of 0.4%. Italy has the highest
average room rate at E118, followed by the Netherlands at E100 (£69)
and the UK at E98 (£6Cool. Germany is at E95 (£66), Spain at E89 (£61)
and France on E77 (£53). US hotels have also reported their best ever
year in 2005. http://www.activehotels.com

RYANAIR has again been criticised by advertising watchdogs over claims
made in its adverts. A national press campaign stating "3 million £0
tickets just pay your taxes & charges!" was deemed misleading as it
did not include Fridays or certain times. The Advertising Standards
Authority upheld a complaint, despite the carrier saying it had made
clear that travel for major sporting events and holiday periods were
exempt. Ryanair was told to make all exemptions clearer in the future.
http://www.asa.org.uk

SOUTH AMERICAN CARRIERS are becoming freed up in their desire to fly
to the US after Washington softened its stance on two countries which
were previously restricted on services. Ecuador has now been rated as
category 1 for safety instead of category 2, which made it hard for
the country’s airlines to fly to US cities. The decision follows a
similar move over Venezuelan airlines. A Category 2 status meant those
countries had to lease aircraft off category 1 nations to fly to the
US. http://www.faa.gov

STAR ALLIANCE has formally invited Air China to join its club. The
pair have signed a memorandum of understanding for cooperation, and
the airline will now be the subject of checks and procedures to ensure
its place in the alliance. The global network has also extended an
invitation to Shanghai Airlines to join. This dual-hub approach will
allow the alliance to offer a unique network from Beijing and
Shanghai. Once Air China and Shanghai Airlines become full members of
the alliance, the Star Alliance network will grow to 20 members,
offering more than 16,500 daily fights to 912 destinations in 160
countries. http://www.staralliance.com

VARIG has confirmed one of its Boeing 777s has been seized by lessors
in JFK in New York due to non-payment. The airline said
representatives of the leasing firm seized the plane after presenting
themselves to airport authorities as the owner of the aircraft. The
Brazilian carrier has run up millions of dollars of debt and sought
bankruptcy protection last year. Most foreign embassies in Brazil are
recommending to their nationals not to use Varig. http://www.varig.com


FORTHCOMING EVENTS THAT MIGHT BE OF INTEREST TO READERS:

Travel Distribution Summit Europe at the Business Design Centre in
Islington, London, 5-6 June. Organised by EyeforTravel, the event
brings airlines, hoteliers, technology companies and others to discuss
burning issues surrounding ticketing, bookings, systems and
information. http://www.eyefortravel.com/tds2006/conference

And from a leisure point of view next weekend Saturday and Sunday, 3 &
4 June sees once again The Air Fair at Biggin Hill, this year
dedicated to the memory Ray Hanna, display pilot par excellence, whose
first appearance at the Kent flying extravaganza was in 1965 putting
on a fantastic show in a Red Arrows Folland Gnat. Visitors will
actually be able to fly in a Douglas Dakota, and also other vintage
aircraft. Our advice is to go early. You can even book on-line.
http://www.bigginhillairfair.co.uk



PETER ILAND, an aviation veteran of many years, has sadly passed away.
The BWIA director of sales and marketing for the UK and Europe worked
for the airline for 18 years and was a popular and well-known
character on the air travel scene. Peter was also involved with Sir
Freddie Laker when he attempted to restart operations from the UK in
the 1990s and also worked for Pan Am.
___________________________________________________________________________

ON TOUR: Berlin

The last time the eyes of the sporting world were on Berlin was 70
years ago. And it still ranks as one of the most eye-catching moments
in history, as Jesse Owens won his gold and Hitler squirmed during the
1936 Olympics.

Fast forward 70 years and the eyes of the world are yet again on the
German capital as it prepares for the football World Cup.

The city hosts a number of matches, and has been given pride of place
by welcoming world champions Brazil for their first game, 13 June,
against Croatia, and staging the final on 9 July. England, hopefully,
will make their only appearance at the Olympiastadion in the final.
The Olympic stadium has undergone a £165m renovation to make the
76,000-capacity facility ready for this year’s tournament and is a far
cry from when Hitler used it for propaganda for his Germany.

But it is not just the stadium which has been improved, the city,
which has been neglected by tourists, now boasts fine restaurants,
bars, cafes and attractions for visitors. With budget airlines and
regular carriers putting the city back on schedules since it was
reinstated as the capital seven years ago, Berlin is easy and cheap to
get to. And most of the major hotel chains are now there.

Top attractions, apart from the football, include Checkpoint Charlie,
the Norman Foster-designed Reichstag parliament building, Brandenburg
Gate, sections of the Berlin Wall, and the memorial to Jewish victims
of the Nazi era.

Gendarmenmarkt is one of the most beautiful squares in Europe,
surrounded by the Deutscher Dom, the Französischer Dom and the
Konzerthaus. It is ideal for quick coffee or a longer linger over
lunch. There are a huge number of galleries, museums and other
cultural attractions for visitors, including sites dedicated to art,
film, photography and fashion. The city prides itself on its
forward-looking culture and the modern is tied in with old Berlin.
Shopping is king on the Unter den Linden, Friedrichstrasse and
Kurfürstendamm, while fine restaurants are all over the city offering
traditional German fare, like the ubiquitous meatball, and
international dishes.

Travelling around the city is easy and considerably cheaper than
London. The U-Bahn underground, S-Bahn suburban services and trams
whisk sightseers around the city for around £4 a day. Deals on tickets
and passes are available.

For football fans, the city is turning itself over to fun, festivals
and, of course, famous German beer. The Fan-festival takes place from
7 June to 9 July on the Strasse des 17 Juni between the Brandenburg
Gate and Sieggesäule in the heart of the city. Huge screens will show
matches and fans will be catered for by Berliners.

So, if you find yourself in Berlin in the next month and don’t fancy
the football, there are hundreds of places to escape to if only for a
few hours.
http://www.berlin-tourist-information.de
To check out Berlin’s role in the World Cup go to
http://www.fifaworldcup.com


INCIDENTALLY: Tales from Poland

In fact a plea to LOT.

It is worth the sight of Michael O’Leary walking through the streets
of Warsaw naked for the cost a few pennies of fuel tax?

The Polish national airline had claimed that managers at rival Ryanair
would "drop their trousers" for extra publicity.

Ryanair boss Michael O'Leary now says he'll venture along without
clothes through the city if LOT removes the fuel surcharge on its
tickets by the end of this month.

"I will walk down Marszalkowska street naked," claims O'Leary on the
airline’s web site.

It is all part of a continuing spat. Ryanair aims to carry 1.6m
passengers this year in and out of the former communist state and says
it could expand its operations to move 10m by 2011 – if the government
loosens competition in the sector.

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colin.
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PostPosted: Mon May 29, 2006 6:58 am    Post subject: Re: AIR & BUSINESS TRAVEL NEWS - 29/05/06 Reply with quote



"Jim Mason" <jim.mason (AT) spamtrappedukonline (DOT) co.uk> wrote in message
news:MPG.1ee43e679a1c44a5989903 (AT) news (DOT) individual.net...
AIR & BUSINESS TRAVEL NEWS


CROSS POSTED!

Clearly you are an agenda-changing troll!

;)
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