Archive for September, 2010
PHILIPSBURG – Head of the St. Maarten Tourism Bureau Regina Labega recently returned from the 16th World Route Development Forum in Vancouver, Canada, and reported that load factors for all major airlines servicing St. Maarten are looking very good. She said executives expressed satisfaction with servicing St. Maarten, with some indicating additional airlift in the near future.
The annual World Route Development Forum is the meeting place for the world’s route development industry; a place where every type of airline, airport or tourism authority from every continent can meet face-to-face in a single location, whether they are a flag or a low cost carrier, hub or regional airport, at a fraction of the time and cost of the airports’ visiting carriers individually.
It affords destinations the opportunity to develop new air services, protect existing ones and shape the very future of international aviation route development.
Labega met with officials from American Eagle, Brazilian carrier GOL, JetBlue, West Jest out of Canada, Copa Airlines out of Panama and British Airways, who indicated that they have not given up on servicing St. Maarten in the future.
She also met with officials of low cost carrier Air Tran, which operates out of Atlanta, Georgia. Those discussions, she said, were fruitful and an exchange of information between St. Maarten and Air Tran will continue to facilitate a possible agreement that would allow the carrier to start service in 2011.
Reports from JetBlue were especially encouraging. Indications are that the airline will look at increasing flights on the Boston and New York routes to St. Maarten. With the Boston route being primarily charter driven, the positive results of the route were better than expected.
In fact, The Daily Herald has also learned that JetBlue might be looking at a St. Maarten – San Juan route to compliment its very successful San Juan – Dominican Republic service. Details on this possibility remain in infant stages and should be expounded upon by officials of the airline in the near future.
With regards to the South American carriers, Labega informed officials from GOL that it is St. Maarten, not the Antillean government, that would eventually be signing bilateral agreements with the airline to allow regular flights, and she pressed Copa to look at servicing the island on Friday instead of Saturday, which would be better for leisure travellers.
The new direct flight out of Panama, starting December 18, will depart Panama on Tuesdays and Saturdays at 12:22 pm, arriving in St. Maarten at 4:17pm. The return flight will depart on the same days at 5:30 pm, arriving in Panama at 7:44 pm.
Source: The Daily Herald
Air Canada reported a quarterly net loss of C$203 million ($199.6 million), but an increase in operating income of C$75 million ($73.5 million), a considerable improvement over last year’s operating loss of $113 million ($110.8 million).
Calin Rovinescu, president and chief executive officer of Air Canada, credited the turnaround on the airline’s efforts to maximize revenues and reduce costs along with the gradual economic recovery. “Although we are not at 2008 levels, premium revenue and yields have increased over the past two quarters,” he said.
Passenger revenues increased to C$256 million ($251.3 million), or 12 percent, from the second quarter of 2009 due to an 8.7 percent growth in traffic and a 3.3 percent improvement in yield. Premium cabin revenue growth accounted for almost half the total year-over-year increase in system passenger revenues in the second quarter of 2010, driven by a 15.8 percent increase in traffic and a 12.9 percent yield improvement.
A gradual return of business traffic together with initiatives undertaken to improve revenue quality, one of Air Canada’s 2010 key priorities, led to this strong improvement in premium cabin yield.
Terrorism has found an unexpected ally in the game rules of Europe’s domestic finances. A soaring increase in the number of insurance policies issued on war risks and terrorist actions threatens to make several European airlines go belly up, aviation experts have recently warned.
Later last month, the European Commission called off the emergency plan that provided financial protection against war risks for airlines from the European Union’s member nations. As it was expected, the decision has kicked up a row since it will now be mandatory for those airlines to pay complete commercial fees to insurance companies for the first time after the 9/11 attacks in the U.S.
Legal experts believe last year’s terrorist attacks laid bare the airlines’ potential responsibility and the possibility on the part of relatives and companies to file lawsuits in case of material and human losses.
In the past, European air carriers could only cover responsibility for third parties over war risks as long as governments agreed to endorse the insurance policies by paying money in claim cases.
Last July, the European Union passed an extension plan in order to allow national governments to cover insurance costs, yet the EU now considers that the state-sponsored bailout is completely unnecessary.
Many are inclined to believe that a cost increase could not be absorbed by some airlines already drowned in financial shambles. Annie Redmil, an aviation expert, recently told BBC News that the new measure could have serious ripple effects all over the industry and even drag some companies into bankruptcy. However, Mrs. Redmil didn’t mention any specific carriers.
“Some of them will collapse. Even some big airlines could fall into bankruptcy,” the aviation expert asserted ominously. For their part, airlines are crying out and knocking on wood, but the measure has seemingly reached a point of no return.
Virgin Group, a leading branded investment organization, announced the launch of Virgin Hotels, a new four-star lifestyle hotel brand. The company plans to develop and operate up to 25 hotels within seven years, with the first property expected to open within 12 to 18 months.
As part of the launch plan, Virgin Group, with entrepreneur Alberto Beeck and hospitality and real estate investor Diego Lowenstein, has established a property venture that will acquire $500 million of Virgin-branded hotel assets in the next three years. The Virgin Hotels management team will be led by Executive Director Anthony Marino, who serves as managing partner of Virgin Group’s leisure and hospitality sector. Raul Leal, a career hotelier with 25 years of success in upscale hotel operations, development and design, will serve as president and chief operating officer. Beeck and Lowenstein will serve on the company’s board of directors.
Paul Whetsell, president and CEO of Capstar Hotel Company, will advise Virgin Hotels on operations and acquisitions and also serve on the board of directors. “Consumers are passionate about — and passionately loyal to — our travel and lifestyle offerings through brands like Virgin Atlantic Airways, Virgin America, Virgin Active gyms, and our luxury retreats portfolio Virgin Limited Edition,” said Sir Richard Branson, Virgin Group founder and president. “We’ve been fortunate to have access to opportunities to extend our success in a range of sectors, and we’ve chosen to create a brilliant place for fans of Virgin to extend their stay with us — to eat, sleep, meet, and have fun in the world’s greatest cities.”
Virgin Hotels properties initially will be located in gateway cities in North America and will have 150 to 400 guest rooms, restaurants, and communal public spaces featuring Virgin’s unique customer-focused touches. Its guests will resemble the highly valued business and leisure traveler whose loyalty Virgin has captured over the last 25 years. “The lifestyle hotel segment is large and growing,” Marino said. “Consumers are well-attuned to the Virgin brand, which is rated one of the world’s best marketed brands. Virgin has a global platform that consumers associate instinctively with lifestyle experiences, so we are in a powerful position to respond to consumers and what they want in a hotel. We intend to bring a fresh approach to the industry, one with solid value, functional design, practical technology, and exceptional customer service, which is a hallmark of the Virgin brand.”
The new hotel brand will be international in distribution with its initial development concentrated in North America. “We are already in contact with brokers, owners, lenders and others active in hotel real estate,” Marino noted. “We are flexible in our approach and seek to joint venture with existing owners, partner with investment groups to acquire hotels, work as a third-party manager or acquire properties outright for our own account.” Leal said that Virgin Hotels has its core design, brand standards, marketing, human resources and other systems in place. “We are actively working on several properties, and we expect to open our first hotel within a year,” he said.
September 29, 2010
Airport – The Princess Juliana International Airport NV hereby informs the general public that as per Thursday, September 30, 2010 from 20:00 to Friday, October 1, 2010 06:00 all traffic will be rerouted to facilitate the ongoing works of the RESA (Runway End Safety Area) and the new airport road. Traffic traveling to and from the airport will be rerouted through the Sister Patientia Road onto the Sister Modesta Road.
Measures are in place to direct the traffic flow at this location. Motorists are asked to reduce speed and exercise caution as the works continue to facilitate the new airport road, Mr. Holiday indicated.
RESA’s are located at the runway extremity and are primarily intended to reduce the risk of damage to an airplane undershooting or overrunning the runway. Construction of the RESA began on March 8, 2010 in keeping with regulations set forth by the International Civil Aviation Organization (ICAO), which requires airports to have a safety area at both ends of their runways.
PJIAE regrets any inconvenience caused as a result of the temporary road rerouting.
Princess Juliana International Airport Operating Company NV
Simpson Bay, St. Maarten
drs. E.B. Holiday
President
Air France was elected “Airline of the year” in the category of the « 2010 Business Travel Gold Awards” organized by IFTM Top Resa International Travel fair, Thalys International and DéplacementsPros.
Air France was awarded the prize by its business travellers for these two innovations:
- Premium Voyageur, the new intermediate class between Business and Voyageur cabins on its long-haul flights, featuring a fixed-shell seat offering 40% additional space compared with the seat in Voyageur class ;
- The new Premium Eco offer on its medium-haul flights, tailored to business travellers seeking more flexibility and efficiency, with a range of dedicated services (privileged service at every stage of their trip and access to the lounge at Paris-CDG, seat in the front cabin, etc.) at the best prices.
Moreover, Air France is pursuing investment in its long-haul Business Class offer, investing over 110 million euros over three years to provide customers with an upgraded, more comfortable seat, a revamped in-flight meal service and new ground services. These improvements complement all Air France’s innovations for its La Première, Leisure and Corporate account customers.
“By constantly innovating and adapting its offer in line with business travellers’ expectations, Air France aims to become the world’s recognized leader in this area”, stated Christian Boireau, Executive Vice President, Commercial France, Air France-KLM.
The Business Travel Awards promote companies operating in France and developing business travel services, products or innovations. Trade associations, travel managers, etc. (ACTE, CEDAF, AFTM, Marco Polo, NBTA Europe) drew up a shortlist of companies, which were then put to the business travellers’ vote.
All the latest information about Air France-KLM business travel offers can be found at www.afklm-newsaffaires.fr
About Air France:
Air France currently operates 1,500 daily flights, in France, Europe and worldwide.
It has a fleet of 263 long-haul and medium-haul aircraft in operation, in addition to 154 regional aircraft operated by its subsidiaries Brit Air, CityJet and Regional.
In May 2004, Air France and KLM merged to give rise to one of the leading European air transport groups. The two airlines currently offer their customers the combined benefits of their respective networks, with a total of 249 destinations in the world.
Air France is a founding member of the SkyTeam alliance, grouping together 13 member airlines.
Air France – Press Office
corporate.airfrance.com
VANCOUVER, Canada – Winners of the 2010 World Routes Airport Marketing Awards were formally announced yesterday at the World Routes Gala Networking Evening at Rogers Arena (formerly known as General Motors Place), Vancouver, Canada, where eTurboNews publisher Juergen Thomas Steinmetz was in attendance. The awards included four regional categories: Europe, the Americas, Asia, and Africa.
Top honors went to Brussels Airport in the European region and was awarded to Edmonton International Airport in the Americas. The Asia region honored Auckland Airport, and Nairobi – Jomo Kenyatta International Airport collected the award in the African region.
“The World Routes Airport Marketing Awards are widely recognized as one of the industry’s most important honors. OAG is privileged to be involved in this ceremony and to pay tribute to the world’s best and most innovative airports, whose dedication to route development is exceptional, and ultimately benefits the entire aviation industry,” said Peter von Moltke, chief executive officer, UBM Aviation, parent company of OAG.
The World Routes Airport Marketing Awards are internationally accredited and widely accepted as one of the most sought after accolades in the industry. The prestige of this award is largely due to the fact that they are the only award based purely on rewarding excellence in route development and nominated only by airlines.
David Stroud, senior vice president of Routes Events and member of the awards judging panel, notes that: “What really sets these awards apart is how accurately they reflect the airlines’ views. Vitally, it is the airlines’ votes that create the shortlist from which the panel selects the winners, and the judging panel itself is made up of airline route development professionals. This aspect in particular is unique within the industry, and what makes the awards so highly regarded.”
In addition to the shortlisted airports voted by the airlines, the regional winners from the regional Routes events also gained an automatic place among the finalists. Judging then moved on to a panel of senior industry experts – formed for the first time this year – made up of current and former airline network planners who reviewed the shortlisted airports’ proposals in order to determine the winners. The panel consisted of the following airline experts:
- Bob Hill, Director Route Planning, American Airlines
- Buddy Anslinger, Formerly of Continental Airlines, Network Planner
- Germal Singh Khera, General Manager Government & Industry Relations, Malaysia Airlines
- Mike Malik, Chief Commercial Officer, UBM Aviation
- David Stroud, Senior Vice President, Routes Events
- Mike Berman, Vice President Commercial, RDG
Bob Hill commented, “I am very impressed with the dedication, application of new technology, creativity, determination, and confidence among the contestants.”
Additionally, British Airways was named the winner of The Orbis Social Responsibility Award for its partnership with Comic Relief, a UK-based charity. The two organizations have committed to raising £8 million (US$12.5 million) and pledge to make a difference to children across the world through a series of activities focused on addressing social, economic, and health issues and climate change.
Routes and OAG are pleased to announce the full list of airports shortlisted under each award category:
EUROPE
Brussels Airport – winner
Athens International Airport – highly commended
Munich Airport – highly commended
Hamburg Airport
Prague Airport
Zurich Airport
AMERICAS
Edmonton International Airport – winner
Dallas/Fort Worth International Airport – highly commended
Queen Beatrix International Airport, Aruba – highly commended
Akron Canton Airport
Jorge Chávez International Airport, Lima
ASIA
Auckland Airport – winner
Abu Dhabi Airports Company – highly commended
Singapore Changi International Airport – highly commended
Beijing Capital International Airport
Meilan International Airport
AFRICA
Nairobi Jomo Kenyatta International Airport – winner
Cairo International Airport – highly commended
Addis Ababa Bole International Airport
Entebbe International Airport
Orbis Social Responsibility Award
British Airways – winner
Air Canada
Qantas Airways
Source: routesonline.com
Trinidad and Tobago deputy prime minister, and minister of transport and works, Austin ‘Jack’ Warner, says Jamaicans should not worry about the deal between Caribbean Airlines and Air Jamaica falling through.
Speaking at the launch of Jamaica Football Federation (JFF) FIFA-sponsored Technical Centre at the University of the West Indies, Mona, Monday, Warner said he was not for the deal initially, however, after a call from JFF president, Captain Horace Burrell, and assurances from his technical staff, he was now more comfortable.
“I wasn’t in favour of saving Air Jamaica originally, as I didn’t think it was in Trinidad and Tobago’s best interest,” said Warner, who is also vice-president of FIFA, and president of the Caribbean Football Union, and the Confede-ration of North, Central American and Caribbean Association Football.
“But Burrell on the advice of the prime minister called me to look into the possibilities of Caribbean Airlines and Air Jamaica co-existing, and benefiting each other.
“After speaking with him, I then went back to my technical people, and they said it could work, with both airlines operating at a world-class standard. It was then I decided to sign the US$49.5 million take-over deal.
Contract
I hope this is the last time I will have to say this, but there is no need to worry, and on October 21 when the contract is signed it will signal a new beginning for Air Jamaica, just as it is the case today with football,” he declared.
Warner’s comments comes approximately two months after Trinidad and Tobago prime minister, Kamla Persad-Bissessar, assured that concerns regarding the recent deal between Air Jamaica and Caribbean Airlines would be resolved to the benefit of both countries.
Persad-Bissessar made the disclosure at the 31st Regular Meeting of the Conference of Heads of Government of the Caribbean Community, which was held at the Rose Hall Resort, Montego Bay.
Caribbean Airlines took over Air Jamaica’s operations in May following an agreement in April.
Under the agreement, the Trinidadian government was slated to contribute working capital to facilitate the merger, while the Jamaican Government assumed the debt and covered the winding-up costs.
However, concerns were raised about the deal by Persad-Bissessar’s administration prior and on assuming office in May.
She, however, explained at the Heads of Government Conference that the concerns were raised on issues of transparency, as her party was not aware of the details of the agreement, nor did it have an input in the decisions involved in the takeover.
“It took us a little while in Trinidad, as a new government, to review the agreement plus other areas relating to Caribbean Airlines. We felt that we needed to get as much information as we could.
Persad-Bissessar, however, prior to leaving the conference, said that there were “one or two areas” which she would like to discuss with Prime Minister Bruce Golding.
Caribbean Airlines started operations in January 2007, and now serves 13 markets in the Caribbean, South America and North America.
Caribbean Airlines Air Jamaica operation serves four destinations in the United States and Canada, along with Grenada and the Bahamas.
The International Air Transport Association (IATA) revised its 2010 industry outlook and is now projecting a profit of $8.9 billion, up from the $2.5 billion it forecast in June. But that may be the ceiling for airline profits, at least short term. In its first look into 2011, IATA estimates that profitability will drop to $5.3 billion.
“The industry recovery has been stronger and faster than anyone predicted,” said Giovanni Bisignani, IATA’s director general and CEO. “The $8.9 billion profit that we are projecting will start to recoup the nearly $50 billion lost over the previous decade. But a reality check is in order. There are lingering doubts about how long this cyclical upturn will last Even if it is sustainable, the profit margins that we operate on are so razor thin that even increasing profits 3.5 times only generates a 1.6 percent margin. This is below the 2.5 percent margin of the previous cycle peak in 2007 and far below what it would take just to cover our cost of capital.”
IATA said several factors are driving the numbers. On the revenue side, increasing demand and disciplined capacity management are leading to sharply stronger yields pushing revenues higher. At the same time, costs remain relatively stable. Rapidly improving demand has pushed traffic 3 percent to 4 percent above the pre-crisis levels of early 2008. Demand in 2010 is expected to grow by 11 percent (stronger than the previous forecast of 10.2 percent) while capacity will only expand by 7 percent (up from the previous forecast of 5.4 percent).
Yield improvements are the most important factor driving the improved outlook, according to IATA. On top of last year’s capacity cuts, capacity expansion is lagging behind demand improvements. The result is higher load factors and some pricing power for airlines. More business travelers on premium seats are also boosting average yields. Yields are now expected to grow by 7.3 percent for passenger and 7.9 percent for cargo. This is sharply higher than the 4.5 percent previously projected for both. Even with this improvement, yields are still 8 percent below the pre-crisis levels of 2008.
Revenues are expected to grow to $560 billion, $15 billion more than previously forecast. This is only slightly below the $564 billion in revenues achieved in 2008 when the previous economic cycle peaked and prior to the start of the financial crisis. The revised outlook maintains an average full-year crude oil price of $79 per barrel. However, excess refinery capacity is pushing the “crack spread” slightly lower than previously anticipated resulting in lower prices for jet fuel. Even with stronger traffic the total fuel bill is now forecast to be $137 billion, $3 billion lower than forecast in June. Fuel continues to account for about 25 percent of industry costs.
North American carriers are now forecast to make $3.5 billion (up from $1.9 billion). U.S. airlines cut capacity significantly as fuel prices spiked in 2008 and maintained a cautious approach to reinstating capacity to the market this year. The U.S. economy and the resulting freight and air travel growth have grown at a better pace than in Europe. As a result, U.S. airlines have seen a much larger rise in yields than other regions.
Latin American carriers continue to benefit from very strong regional economic growth particularly in the south of the region, boosting freight, travel and profits. The profit forecast has improved slightly from $900 million to $1 billion. Middle Eastern airlines have benefited from strong regional economies and an expanded share of long-haul markets. Unlike the previous two years, capacity has been added at a slower pace than demand growth in 2010, raising load factors and helping profitability. Carriers in the region are expected to see their profits rise significantly from $100 million to $400 million. Prospects for African airlines remain unchanged from the previous forecast at $100 million profits.
At the same time, IATA said the outlook for the industry grows weaker in 2011. The impact of the post-recession bounce from re-stocked inventories will dissipate. Consumer spending is not expected to pick-up the slack as joblessness remains high and consumer confidence falls in Europe and North America. Travel and freight markets will remain stronger in regions such as Asia, the Middle East and South America but IATA said it does not expect these hot spots to be able to sustain global growth in 2011.
Slower growth is expected to keep costs in check and oil prices are expected to remain constant at $79 per barrel. Industry growth is expected to fall back to 5 percent, in line with the historical trend. But a surge of aircraft deliveries (1,400) will fuel capacity expansion of 6 percent — in excess of expected demand improvements. Falling load factors will remove the possibility for further yield improvement leading to a more challenging revenue environment.
American Airlines has expanded mobile boarding passes capabilities to eight more airports. Passengers departing from New York’s John F. Kennedy Airport (JFK) and San Juan, Puerto Rico (SJU), as well as six international airports, including Barcelona, Spain (BCN), Rome, Italy (FCO), Frankfurt, Germany (FRA), Manchester, United Kingdom (MAN), Milan, Italy (MXP), and Zurich, Switzerland (ZRH), now can receive their boarding passes electronically on their mobile phones.
American now offers mobile boarding pass option to travelers departing on American Airlines and American Eagle flights from 50 airports. Mobile boarding passes use a two-dimensional (2-D) barcode and were rolled out in partnership with the U.S. Transportation Security Administration (TSA) in 2008.
The mobile boarding pass process is simple. When customers check in for their flight using AA.com and opt to receive their boarding pass on their mobile phone they will receive an email1313131313131313131313131313131313131313 with an Internet link to the boarding pass. Customers must have an active email1313131313131313131313131313131313131313 address where their boarding pass can be sent and an Internet-enabled mobile phone where the 2-D barcode can be received. The mobile boarding pass contains a 2-D barcode that can be scanned both at security checkpoints and at American Airlines gates.
At the airport, customers simply scan their mobile phone screen with the 2-D barcode displayed on it when going through security (proper identification must be presented) and when boarding, just as they would a traditional paper boarding pass. Customers who wish to check bags can still use this mobile option by scanning the 2-D barcode on their mobile phone screen at any of the American Airlines self-service machines, ticket counters, or curbside check-in facilities located in the 50 participating airports.
At this time, customers who opt to use the mobile boarding pass option may only list one person in their reservation. They also must be traveling on American or American Eagle flights from any one of the 50 participating airports on a nonstop or connecting flight through a participating mobile-boarding airport. London Heathrow was the first international location to offer the program, and American Airlines is one of the first U.S. carriers to roll out the mobile boarding pass technology in the U.K., as well as in Italy, Spain and Switzerland.