Archive for March, 2010

Overseas travelling intentions on the higher side

Tuesday, March 30th, 2010

A latest survey by Skyscanner reveals that roughly half of those who had taken part in the survey were planning to take 2-3 overseas trips in 2010.

Thirteen percent of the respondents said that they had planned six or more trips, while 16% said that they would be leaving the UK four or five times and 13% said that they would be taking one overseas trip this year. Only 6% said that they would not be taking any trips abroad in 2010.

Skyscanner’s February 2010 Report showed that Alicante, Malaga and Tenerife were the three most searched travel spots, with Spanish destinations topping the list of the most sought after venues for travel, as far as UK travellers were concerned. Dublin and Delhi too had significantly moved up in popularity, according to the latest list.

Skyscanner Co-founder and Development Director, Barry Smith remarked that the survey spelt great news for the travel industry, which was waiting for just this kind of impetus to revive its enthusiasm.

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BA strikers to be stripped off travel benefits

Tuesday, March 30th, 2010

British Airways has confirmed that cabin crew strikers will be stripped off their staff travel benefits. All workers who had participated in the three-day strike will not be entitled for free and discounted flights.

Explaining their decision, BA said that its cabin crew was first informed that they would be losing their benefits in the event of partaking in the strike, in January, before Unite’s strike polls had commenced. The point was then restated after the poll outcomes and before the first strikes.

BA added that the travel benefits were non-contractual in nature, and hence liable to be withdrawn by the airlines at its own judgment.

BA’s decision has met with strong criticism from the cabin crew union Unite, which stated that many of the airline’s staff banked on the travel aid to reach work after BA had closed down its regional bases. The union said that the move highlighted the condescending attitude that BA harboured for its employees, and added that it will challenge the decision in the most fitting manner.

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EU-US Open Skies deal condemned

Monday, March 29th, 2010

The 2007 accord between the US and EU will be set to stone, with the concerned parties finalising a deal allowing airlines to fly between any EU and US city. However, the issue of airline ownership stands unresolved.

Giovanni Bisignani, Director General and CEO of IATA (International Air Transport Association), however, expressed disappointment over the issue of ownership being left unsettled. He urged both the governments to assign the subject on high priority, as it was highly consequential to the long-term financial stability of the airline industry.

Members of the International Air Carrier Association (IACA) too communicated their dissatisfaction over the incapability of the deal to strike a balanced note for all airlines.

Sylviane Lust, IACA’s Director General, said the deal was biased, as it was heavily tilted in favour of US airlines. She added that the agreement did not offer anything significant for European carriers. It did not bring the airlines closer to flying freedom. She called for proactive efforts from both sides, in line with the assurances made at the start of EU-US aviation talks in 2003.

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Third runway plans at Heathrow rejected by High Court

Sunday, March 28th, 2010

“In tatters” was how disapprovers of the third Heathrow runway described the expansion plans after they won a High Court battle with the government.

The list of protestors comprised local councils, residents and green groups, who claimed that public consent on the expansion was not sought for in a fair manner and that the expansion could threaten UK’s climate change targets.

In his ruling, Lord Justice Carnwatch stated that the runway approval released by the government would have to be reassessed by whoever comes into power after the elections in May.

Defending the government’s decision, Transport Secretary Lord Adonis argued that the government had approved the expansion plans only after a detailed evaluation that showed that the plans conformed to the stringent environmental regulations.

The protesting team has issued a joint statement advising the government to re-examine the whole project. It urged the government to approach the entire runway expansion plan by hinging on a fresh perspective.

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BA, AA and Iberia to put Heathrow slots up on lease

Saturday, March 27th, 2010

With the intention of actualising their planned joint venture on Transatlantic routes, Oneworld alliance members British Airways (BA), American Airlines (AA) and Iberia will make available four daily pairs of slots at Heathrow to non-Oneworld alliance members.

Heathrow or Gatwick to Boston, Heathrow or Gatwick to Dallas Fort Worth, and Heathrow or Gatwick to Miami, are the routes on which slots will be made available on lease. BA expects Heathrow or Gatwick to New York slots to also become available in the future.

The joint venture, approved by the European Commission (EC), is applicable to flights operating between North America and Europe, and is based on a revenue sharing model.

British Airways CEO, Willie Walsh stated that the leased slots will work to the advantage of the customers, shareholders and employees. He expects that the move will up the competitiveness of Oneworld.

President of competitor airline Virgin Atlantic, Sir Richard Branson, however, termed the move monopolistic and incapable of imparting any real consumer value.

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Tourism will overtake other sectors by 2020

Saturday, March 27th, 2010

A new research conducted by Deloitte and Oxford Economics analysis for VisitBritain predicts that tourism, with a 3.5% growth rate, will overtake the retailing, transport and communications, utilities and manufacturing sectors in the coming decade.

The present statistics revealed that tourism was currently Britain’s fifth largest industry, employing 2.6 million people and worth £115 billion. The study estimates that by 2020, an additional 250,000 jobs will be created in the sector.

It is also anticipates that inbound visitors will spend almost double, with the domestic spending rising from £72 billion in 2010 to £113 billion in 2020.

Chairman of VisitBritain, Christopher Rodrigues stated that the research reiterates the significance of tourism in the British economy. He added that overseas visitors alone contribute around £3 billion a year to the Treasury.

Rodrigues hoped that the research will add to the impetus that the London 2012 Olympic and Paralympic Games are expected to bring to UK tourism. Continuous growth would, however, depend on sustained investment in the sector, enhanced regulatory support and improved government policies.

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National rail strikes could wreck Easter holiday plans

Wednesday, March 24th, 2010

Holiday plans of thousands of travellers are likely to be disrupted owing to the national rail strikes over the Easter weekend.

Superbreak Sales Director, Ian Mounser believes that the strike, called on by maintenance workers, supervisors and signallers, is bound to sabotage the domestic breaks and that the timeline of the strikes can potentially impact 10,000 train commuters who travel to London.

The strikes could also affect last minute reservations, which contribute in a big way to the business of ticket bookings, as potential travellers may be prompted to cancel their trips or head off to a nearby destination. The impact on those who have already booked will be assessed and solutions will be arrived at separately, based on the traveller’s choice Mounser said.

Negotiations between union leaders and senior Network Rail management over plans to strip off 1,500 maintenance jobs and safety apprehensions over restructuring are due to happen this week. If the talks fail and the strike goes ahead as planned, it would be the first rail strike in 16 years.

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Spanair to begin flights from Birmingham to Madrid and Barcelona

Sunday, March 21st, 2010

Spanair will commence operations of scheduled flights from Birmingham to Barcelona and Madrid in May this year. Services to Madrid will start on May 21 with flights scheduled on Tuesday, Thursday and Saturday, while those to Barcelona are due to begin on May 20, with take-offs on Monday, Tuesday, Thursday and Friday.

Spanair will use 168-seat Airbus A320s fitted with economy and business class cabins to complete the journeys.

With Bmibaby due to stop its Birmingham-Barcelona service on June 7, Spanair hopes that these scheduled services will plug in for the gap that will ensue. Spanair has prior experience in operating charter flights from Birmingham.

Paul Kehoe, Birmingham’s Airport Chief Executive, stated that the airport will offer the only direct Madrid flight south of Liverpool and north of the Watford Gap. He expressed satisfaction over making travel to Barcelona possible even after Bmibaby ceases operations in June.

Mike Szucs, Spanair chief executive, added that onward connections will be made available from Madrid and Barcelona to the carrier’s scheduled network across Spain, the Canaries, the Balearics and North Africa.

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PATA’s crusade against hike in APD

Sunday, March 21st, 2010

Pacific Asia Travel Association’s global body PATA chapters are being persuaded to gain the support of British Ambassadors and High Commissioners as a part of the Association’s efforts to resist any additional surge in the UK government’s Air Passenger Duty (APD).

Chapters will stress on PATA’s condemnation of the APD by underlining the significance of travel and tourism in UK’s economic growth. Travelling from the United Kingdom to faraway markets is set to become dearer, owing to another round of tax hikes mapped out for November 2010.

Also, the APD classifies locations such as New Zealand, Australia, Malaysia, Indonesia and Singapore under Band ‘D’. This segregation would imply a total tax of 340 pounds sterling for a family of four travelling to any of the above locations in economy class, if the tax rates are revised in November this year. The premium cabin passengers are subjected to higher tax levels.

The tax revisions, due for November this year, will be the third in a series of hikes, following the ones in February 2007 and November 2009.

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UK airports record biggest decline in 65 years

Sunday, March 21st, 2010

The Civil Aviation Authority (CAA) has reported that in 2009, airports in Britain serviced 17 mn travellers less than the number serviced in 2008. This steep decline, the biggest in 65 years, marked the first instance of the numbers dipping two years in succession.

Harry Bush, Director of Economic Regulation, CAA, stated that the latest figures mirror the downturn that has affected the aviation industry. During 2009, the total air transport movements at UK airports contracted by 8.8%. The slide represents the biggest drop in traveller volumes since the Second World War.

Towards the end of 2009, the pace of decline had slowed down from 12.5% in the year’s first quarter to 3.8% in the fourth.

According to CAA, regional airports, with a 10.7% drop in the number of travellers, were worse hit than London, where the fall in traffic was 4.9%.

Bush reiterated that the traveller numbers was expected to bounce back, but the rate of revival seemed vague. It could take years for the industry to regain its lost glory.

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