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News of September 2011


Airlines hit emissions plan

30 September 2011

Airlines criticized the European Union’s plan to limit jetliners’ greenhouse-gas emissions, which analysts estimate could cost carriers world-wide more than $1 billion next year.

EU Climate Commissioner Connie Hedegaard presented this week details of how the 27-country bloc’s existing cap-and-trade system will expand to cover aviation beginning next year. From Jan. 1, all airlines will be required to hold permits that allow them to emit carbon dioxide during any flight landing at or taking off from an EU airport. Carriers with minimal EU operations will receive exemptions.

The European Commission, the EU’s executive arm, said it will grant airlines permits to cover 85% of their carbon-dioxide emissions in 2012 free of charge. This will fall to 82% from 2013 through 2020. Carriers will be required to buy the rest.

source: Wall Street Journal


KLM and WestJet will start operating code share flights

30 September 2011

KLM Royal Dutch Airlines and WestJet operated their first code share flights on September 26, 2011. The code share agreement between the two airlines will allow KLM to market and distribute WestJet operated flights under KLM flight numbers. This will enhance the travel possibilities for our customers, giving them access to 30 domestic Canadian routes.

source: traveldailynews.com


Ryanair says BA most likely Aer Lingus buyer

30 September 2011

British Airways (BA) would be the most likely buyer of the Irish government’s 25 percent stake in Aer Lingus, the Irish airline’s largest shareholder Ryanair said on Thursday.

BA, which formed the International Airlines Group when it merged with Spain’s Iberia last year, has not expressed interest in buying the Aer Lingus stake, which the Irish government is considering selling.

source: Reuters


Vueling as the most innovative airline at 2011 Budgie Awards

29 September 2011

Vueling won the accolade of most innovative low cost model airline at the industry’s Budgie Awards.

Industry representatives applauded the efforts the company is making to provide their passengers with a wide range of services at competitive prices. In particular, the sector valued the company’s efforts to implement successfully, since July 2010, a pioneering programme of connecting flights through its hub at Barcelona, initially Vueling to Vueling and its network of flights, and since March this year with legacy carriers, including Iberia. Today, Vueling can offer 550 routes through its Vueling Connects network.

source: traveldailynews.com


Turbulence at EasyJet as founder plans new airline

29 September 2011

In a move that has astonished the airline industry, not to mention EasyJet, Haji-Ioannou is preparing to launch a new airline, Fastjet. There are few further details as yet – simply a single, bright red webpage, Fastjet.com, bearing the message “by Stelios. Coming soon!”.

We don’t yet know what sort of fleet he is planning, whether he has leased any aircraft, which routes Fastjet will fly or whether it will go head to head with EasyJet, in which the billionaire entrepreneur and his family retain a 38 per cent stake.

Haji-Ioannou has been engaged in a long and increasingly bitter battle with EasyJet management on a number of fronts, peace seemed to have broken out between the two sides just last week, when the board bowed to pressure to pay a special dividend to shareholders.

source: irishtimes.com


Aer Lingus rejects Ryanair’s pay-out call

29 September 2011

Aer Lingus has rejected calls by Ryanair, its largest shareholder, for the Irish flag-carrier to pay a special dividend.

Colm Barrington, Aer Lingus chairman, has told Ryanair that the carrier’s board is sticking by its view of May’s annual meeting that a dividend should be considered once a “more durable” economic recovery is apparent.

Aer Lingus and Ryanair have been locked in a fractious relationship since Europe’s largest low-cost airline by revenue launched the first of two failed takeover bids in 2006. Both bids faltered after objections by the Irish government and European competition authorities.

source: FT.com


BA used Virgin plane in £20m advertising campaign

28 September 2011

British Airways spent ­£20million on a new promotion campaign… only to realise a TV advert contained a shot of a rival Virgin Atlantic plane.

Embarrassed bosses ordered an ­emergency edit of the 90-second ad – which uses state-of-the-art computer-generated images to plot the airline’s history – after a member of staff spotted the blunder just a day before its official launch.

One shot, centred around ­the company motto To Fly. To Serve, shows a row of three British Airways Boeing 747s docked at a terminal. But the nearest displays the ­serial code G-VGAL – the marking of a Virgin Atlantic aircraft based in Manchester.

source: mirror.co.uk


Emirates Airline says no drop in demand yet

28 September 2011

State-owned carrier Emirates Airline is not yet seeing a downturn in business and bookings for the next few months are at high levels, even as other airlines warn stuttering economies are affecting sales.

As yet, fingers crossed, we have not seen any diminution of demand,” President Tim Clark told this week.

Lufthansa last week warned on profits and said it would offer fewer seats on its planes this winter than previously expected.

source: Reuters


Turbulent times ahead for airlines

28 September 2011

The International Air Transport Association (IATA) warned of tough times ahead for the airline industry and the head of Thai Airways said on Tuesday financial market turmoil as the European and U.S. economies slow down was “frightening“.

IATA has already warned that a weak global economy would prompt a 29-percent fall in airline profits in 2012 and cut the industry’s profit margins to a wafer thin 0.8 percent from 1.2 percent this year.

IATA, whose 230 members carry more than 93 percent of scheduled international air traffic, forecast global economic growth of 2.4 percent in 2012, lower than the International Monetary Fund’s projection of 4.0 percent.

source: foxbusiness.com


easyJet founder Stelios set to launch new airline

28 September 2011

Aviation entrepreneur Sir Stelios Haji-Ioannou announced plans for Fastjet – a start-up rival for established operators such as Ryanair.

Relations between easyJet and Sir Stelios have been decidedly uneasy in the last 18 months.

Although the tycoon and his family still own 38 per cent of easyJet that he began from scratch in 1995 (with a £5million loan from his shipping-magnate father), discussions between the two parties have been icy since Haji-Ioannou resigned from the carrier’s board in May 2010 in a row over strategy.

source: dailymail.co.uk