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India will urge its airlines to boycott the European Union’s carbon charge scheme, raising the prospect of a global trade war over an EU law requiring flights in and out of Europe to pay for their greenhouse gas emissions.

China said in February its airlines were barred from participating in the EU emissions trading scheme (ETS) unless they got government approval. Beijing has also suspended the purchase of $14bn worth of jets from European maker Airbus. India does not yet plan to ask airlines to cancel Airbus purchases, but that is possible if the dispute escalates, the Indian official said.

If the European commission then stopped Indian airlines from flying to Europe, India would retaliate with similar moves and consider charging an “‘unreasonable'” amount for flying over India, the official said. “‘We have lots of measures to take if the EU does not go back on its demands. We have the power of the economy; we are not bleeding as they are,'” the government official said, adding that Europe’s position would harm its own economy and airlines.

source: Guardian.co.uk

The International Air Transport Association (IATA) announced a downgrade to its industry outlook for 2012 primarily due to rising oil prices. IATA expects airlines to turn a global profit of $3.0 billion in 2012 for a 0.5% margin. This $500 million downgrade from the December forecast is primarily driven by a rise in the expected average price of oil to $115 per barrel, up from the previously forecast $99. Several factors prevented a more significant downgrade: (1) the avoidance of a significant worsening of the Eurozone crisis, (2) improvement in the US economy, (3) cargo market stabilization and (4) slower than expected capacity expansion.

fuente: eturbonews.com

Germany’s second largest airline, Air Berlin, has reported worse-than-expected losses for 2011 as it continues its efforts to downsize.

The budget carrier reported a net loss of 271.8m euros ($322m; £205m) for the year to 31 December 2011. It made a loss of 97.2m euros in 2010.

Air Berlin blamed the weather, strikes, rising fuel costs, the Arab spring and a new tax for its poor performance.

source: bbc.co.uk

An annual survey of hotel room prices has found that visitors to London will pay twice as much to stay as last year.

A study by Hotels.com found prices for booking in March this year for August are 102% higher than for the same months last year. The website says the average price of a hotel room in London will be £213 this summer.

Between 2010 and 2011 room prices worldwide rose 4%.

source: bbc.co.uk

Deutsche Lufthansa on Thursday said it would consider selling its Austrian Airlines unit if it can’t turn the struggling carrier around amid a wide-ranging plan to cut costs to combat high fuel prices and sluggish growth in Europe.

“‘It isn’t possible to say when Austrian Airlines will break even,'” Chief Executive Christoph Franz said. “‘We will stick with Austrian Airlines until we no longer see prospect for profit,'” Mr. Franz said. “‘We still see this prospect,'” he said, though the business is in a critical condition and needs drastic restructuring.

Lufthansa has agreed to sell loss-making U.K. unit British Midland Ltd.”known as bmi“to British Airways and Iberia parent International Consolidated Airlines Group. It said Thursday it has signed a letter of intent to dispose of its 25% stake small Chinese unit Jade Cargo to China’s Unitop.

source: wsj.com

TripAdvisor is coming under fire again, this time for a new ratings system.

The new scoring system has been criticised by reputation management company KwikChex, which argues that it will produce even more mistrust and distortion.

It claims in the last 24 hours it has been inundated with concerns about the new ratings systems.

“‘They are coming from many who have always supported TripAdvisor, including consumers,'” said chief executive Chris Emmins.

source: travelmole.com

Last year, passenger numbers at Munich Airport grew by an impressive 8.8% to 37.8 million (despite the introduction at the beginning of the year of the government’s so-called ‘eco-tax’), enabling it to overtake Rome Fiumicino as Europe’s 6th busiest airport. However, it seems likely that the Bavarian airport will slip back to seventh in 2012 as Istanbul’s Atatürk airport was busier than Munich in the second half of 2011.

A third runway has been proposed for the airport and last week, a variety of supporters from across the political and business spectrum got together to promote the benefits of an additional runway. A decision is due in June as to whether the airport can proceed with its plans.

The heads of four leading airlines have warned the British government there could be chaos at London’s airports during this summer’s Olympic Games, which would cause major embarrassment to the country unless a deal can be reached over their concerns.

In a blunt letter to transport chiefs, British Airways , bmi, Virgin Atlantic and Easyjet said time was running out to tackle the expected surge in air traffic and its impact.

Failure to address their concerns could bring misery to millions of regular travellers and those coming to London for the world’s biggest sporting event, the airlines argue.

Britain, already the sixth most visited country in the world, anticipates an additional 700,000 international travellers during the Olympics, which begin on July 27.

source: Reuters

Airbus and a group of European airlines issued another warning that the European Commission faces sparking a trade war after extending its emission trading scheme to the global industry.

The plane maker had said that China has frozen some jet deals because of the scheme, and spearheaded a new warning to political leaders that more retaliation is imminent unless the European Union backs down and pursues a compromise.

International disquiet with the EU’s unilateral imposition of charges for aircraft carbon dioxide has drawn widespread threats of retaliation, though to date the only hard-line response has been Airbus’s recent claim that China suspended final approval of a $12 billion aircraft order placed last year.

source: wsj.com

Packed planes and a high volume of carry-ons are forcing airlines to expand the space above passengers’ heads. United and Delta are the latest airlines to replace or upgrade bins so they hold more luggage. And engineers at Boeing are designing jet interiors with today’s bulkier luggage in mind.

It’s a chance to placate passengers who feel like they’re thrown into a roller derby every time they board a plane. Because of fees on checked bags, more passengers are bringing carry-ons, which are growing in size. And with planes more crowded than ever, bins fill up before all passengers have reached their seats. Travelers fight physics and one another to shove one more bag overhead. Or they’re forced to check luggage at the gate.

source: theledger.com