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Airlines reacted furiously to plans announced by Angela Merkel, the German Chancellor, to raise €1 billion from a new “‘eco tax’” on aviation.

Lufthansa said it was a black day for the sector, while the industry’s trade association denounced it as a “‘cash grab’” and a “‘kick in the teeth’” for airlines and passengers alike.

Few details have been established, but Ms Merkel said that the new departure tax would contribute €1 billion this year to proposed budget savings of €80 billion in the period to 2014.

source: Times Online

Despite new baggage fees and fewer in-flight amenities, air passengers’ satisfaction with North American airlines hit a three-year high in an annual survey, reversing three consecutive years of declines, J.D. Power and Associates said Tuesday.

Among the big North American “‘legacy'” or network airlines, Alaska Airlines ranked highest for the third consecutive year. JetBlue Airways Corp. led the low-cost carriers for the fifth consecutive year.

The score gap between discounters and legacy carriers continued to widen, with the discounters routinely producing better scores.

source: WSJ

Vietnam Airlines joined SkyTeam on Thursday, becoming the first Southeast Asian member carrier of the global airline alliance.

Vietnamese Prime Minister Nguyen Tan Dung joined Thursday’s ceremony held at Hanoi’s Noi Bai International Airport for the event.

The national flag carrier, which is looking to become one of Southeast Asia’s leading carriers, expects this full membership to boost its Asia presence.

The carrier will add 20 new destinations to the SkyTeam network, which allows passengers to earn and redeem frequent flyer miles when traveling on member airlines.

source: SGGP

The Iraqi government has said it will close the state-owned Iraqi Airways after declaring it bankrupt.

Iraq’s transportation ministry told reporters the airline would be closed following a damaging dispute with Kuwait over war reparations. Kuwait Airways says the Iraqi flag carrier owes it about $1.2bn for aircraft and plane parts taken during the Iraqi invasion of Kuwait in 1990.

All scheduled Iraqi Airways flights have been cancelled.

source: BBC News

Passengers can claim no more than about €1,100 from airlines that lose their baggage, regardless of the value of the contents, the European Court of Justice has confirmed.

In a case brought by a traveller who had claimed three times as much, the court this week ruled that air carriers’ liability for lost baggage is limited to the amounts set in the Montreal Convention, which was approved by the EU in 2001. This sets the maximum compensation at 1,000 special drawing rights for each passenger, equivalent to about €1,134 at current exchange rates.

source: Irish Times

European airlines are likely to be hit the hardest by a dip in the recovery for global air travel caused by the Iceland volcanic ash shutdown.

Latest International Air Transport Association data showed that passenger traffic rose 10.3 percent in March, while air freight grew 28.1 percent year-on-year as the recovery from the economic crisis accelerated. But European carriers lagged behind the global average with just six percent growth in March.

“‘The strong traffic recovery is expected to show a dip in April as a result of the eruption of an Icelandic volcano … that saw the shutdown of large portions of European airspace over a six-day period,'” IATA said.

source: AFP

Travellers grounded by the volcanic ash cloud have been urged to check their rights amid confusion over the cover provided by insurers.

The first port of call for those affected by flight cancellations is to contact their airline or tour operator to arrange an alternative flight or a refund of the flight costs. Most travel insurers will agree to amend their policies accordingly to en sure they cover the revised travel arrangements.

Those with travel insurance policies should contact their insurer as soon as possible to clarify whether their policies cover them for the disruption.

Many travel insurers will cover the extra costs incurred as a result of cancellations, such as car hire and accommodation, provided travellers have proof from the airline that the flight was cancelled due to the conditions. However, customers are advised to check the small print of their policies and contact their insurer to clarify their position.

source: scotsman.com

Porter Airlines Inc. is planning an initial public offering less than four years after it launched operations at Toronto’s island airport near the downtown business core.

The regional carrier, through Porter Aviation Holdings Inc., has submitted a preliminary prospectus for the IPO.

Porter began flights at Billy Bishop Toronto City Airport in October, 2006.

source: theglobeandmail.com

The European Union’s executive on Tuesday banned all airlines from the Philippines and Sudan from flying into Europe, arguing that their safety standards were too unreliable.

Europe’s airspace is tightly monitored to prevent accidents, with almost 300 airlines from around the world banned from flying there. The new ban covers over 40 Philippine airlines and a dozen Sudanese ones.

The commission also decided to restrict the operations of Iran Air in Europe after airport inspections revealed serious safety problems.

source: Earth Times

European airport authorities subsidise Ryanair to the tune of at least €11 (£10) per passenger, Air France-KLM claimed this week as it filed a lawsuit in Brussels against the low-cost carrier.

In the latest in a series of legal attacks on Ryanair’s business model, the Franco-Dutch airline accused the Irish company of receiving illegal state aid and distorting competition.

Air France-KLM said that Ryanair obtained at least €660 million a year in financial incentives from regional authorities in Europe, notably in the form of reduced ground-handling fees and other airport charges.

source: Times Online