Tudor Court Hotel News Section

A poll conducted by the US Tour Operators Association reports that 89% of its members have rebooked travellers for future trips. This consideration was extended following the repercussions of the Eyjafjallajokull volcanic cloud that had interrupted travel to Europe.

Over 60% of the operators disclosed plans to offer credits for future trip, while about 30% cited refund as a measure of compensation. Over 10% of the operators plan to waive cancellation charges, while over 20% said they proposed that clients buy a waiver or travel insurance for future trips.

President of Avanti Destinations, Harry Dalgaard credited hotels with taking the initiative to put aside cancellation charges and also allow people to rebook their travel plans for other dates.

President of Contiki, Greg Fischbein noted that a number of respondents had used this episode to further endorse the importance of travel insurance amongst inbound travellers. Laudie Hanou, Vice President, SITA World Tours and Pamela Lassers, Director of Media Relations, Abercrombie & Kent, added that travel insurance was a part of the mandatory offers made available to travellers, and that most clients turn it down in writing.

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The International Air Transport Association (IATA) has extended its wholesome cooperation for the appeals raised by Spain’s Transport Minister, Jose Blanco and Vice President of the European Commission, Siim Kallas towards speeding up execution of the Single European Sky.

Europe’s Transport Council is due to meet on 4 May 2010 to discuss the nitty- gritty of the subject.

Giovanni Bisignani, IATA’s Director General and CEO has, in his statement, congratulated the efforts of Minister Blanco and Vice President Kallas towards accelerating the implementation of the Single European Sky. Bisignani added that the criticality of the Single European Sky had come to the fore during the volcanic ash crisis that had crippled European air transport for almost a week. He stated that the technical details of the venture have been sorted out since time immemorial but they have been since then, waiting for political approval.

The IATA chief in his address has also touched upon the logistical benefits that the Single European Sky promises to usher in. These include advancing Europe’s competitiveness and driving better environmental performance.

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US Airways has declared that its talks with regard to a possible union with United Airlines have been called off.

US Airways’ CEO, Doug Parker has said that the decision to end all discussions on the pertaining matter was taken by the carrier’s Board of Directors, after a detailed review of the situation.

Parker, however, asserted that US Airways will continue to advocate mergers in the aviation industry. He said the need for consolidated ventures stems out of the fragmented nature of the industry. Parker sided with the theory that in the future, joint ventures in aviation will help the industry endure global rivalries and economic unpredictability. He added that such efforts will help make the industry less fragmented, more secure and create a win-win situation for all parties involved.

While this was the first time that US Airways acknowledged its merger discussions with United, there are also reports suggesting its plans to merge with Continental Airlines.

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A study ordered specifically by Kelkoo, a price comparison site and effected by the Centre for Economics and Business Research reveals that UK-based travellers record the highest spend in online travel in Europe.

In 2009, almost 69% British travellers made use of the Internet to explore and book travel, as opposed to 53% in France.

Last year, British travellers shelled out £15.6 billion in online travel bookings, an increase of 18.5%, when compared to 2008. This figure is expected to touch £17.6 billion in 2010. The pan-European levels of online travel booking too are estimated to clock €74.3 billion, a rise of €7.4 billion.

On the flipside, overall travel sales are expected to plummet from €400 billion in 2008 to €367.4 billion by the end of the year 2010.

Managing Director of Kelkoo UK, Bruce Fair asserted the need for an intensive effort by the travel industry to plug the rapidly receding sales numbers. However, he reiterated that the falling sales volumes would trigger travel operators to offer significant discounts, thus driving down the cost of travel.

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Stating that airlines have had to bear losses of more than $1.7 billion, owing to the Icelandic volcano calamity, the International Air Transport Association (IATA) has asked governments to compensate carriers for the losses.

Quantifying the losses, IATA’s Director General and CEO, Giovanni Bisignani stated that the crisis had impacted 1.2 million travellers a day and affected 29% of global aviation. Bisignani added that the need for economic assistance was extreme, especially since the crisis comes at a time when airline industry was financially in its worst state.

Bisignani asserted that European governments should hold themselves accountable since the situation was unanticipated and compounded further by the poor decision-making process followed by national governments.

IATA also termed the passenger care regulations as “unfair”, as they do not take into consideration such exigent situations but still hold airlines responsible for ancillary payments. Bisignani condemned the closing of European airspace, as the action was not based on facts. The IATA chief also reiterated the need for a Single European Sky and a respite from restrictions on night flights to help get passengers home.

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The heads of British Airways (BA) and Spanish carrier Iberia inked an accord for a union and to lay the base for a joint venture, the International Airlines Group (IAG). Both BA and Iberia will continue to operate independently, even after the union.

Willie Walsh, BA chief executive will be the chief executive of IAG, while his equal at Iberia, Antonio Vazquez will be the chairman. Listed both on the London and Madrid stock exchanges, shareholders of BA will have 56% stake in the IAG while those of Iberia will have 44%.

The merger is expected to raise a combined cost savings of around £350 million in five years, a significant number considering that both parties involved in the merger are presently running at a loss. In accordance with the deal, Madrid’s Barajas airport will host BA flights to key regions, while Heathrow will serve the same purpose for Iberia’s flights.

The deal is expected to be completed in December, once BA wins acceptance for its plans to deal with a crisis relating to a £3.7 billion pension deficit.

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The International Air Transport Association (IATA) has reported a 5.9% rise in premium class travellers and 6.9% rise in economy class travellers in February 2010, against the same period last year.

Announcing that longer haul markets had recorded a faster revival than short haul markets, IATA stated that the comparative numbers for traveller volumes pointed to a “strong upturn”.

While the premium travel levels had not hit the early 2008 figures, it was now 10% above the slump experienced in 2009. The IATA added that this increase in premium travel had belied fears that the sagging fortunes of the industry were irreparable. According to the association, the premium travel industry is at present heading towards the upward crest that marked the early days of 2008.

Statistically speaking, premium travel volumes shrunk by 3.7% within Europe. However, the numbers saw an upsurge on the North Atlantic, Europe to the Middle East and Europe to the Far East routes, where the industry witnessed growth levels of 4.2%, 11.6% and 3.6% respectively.

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