Nepal’s first low-cost carrier (LCC) announced that it will suspend its operations in Nepal beginning mid Jul-08. This decision was taken by the management of FlyYeti.com in light of the current and ongoing political environment in the country, which has impacted the airline’s ability to renew its current aircraft leasing agreements, which are always subject to government approval, and expire on mid Jul-08.
source: Peanuts!
Faced with growing financial problems, U.S. air carriers could start seeking foreign investments and pushing for a relaxation of U.S. airline-ownership laws, British Airways PLC Chairman Martin Broughton said in an interview.BA, which flies more passengers to and from the U.S. than any other overseas airline, doesn’t envision being able to make a major investment in a U.S. carrier anytime soon, said Mr. Broughton.
source: The World Street Journal
Ever heard of Palmair European? Probably not, but on Thursday this tiny British company, with just one 34-year-old plane, was given the title of one of the world’s top four carriers, beating the likes of British Airways (other-otc: BAIRY – news – people ) and Virgin Atlantic.
The airline, which flies 60,000 passengers per year in a Boeing 737, was picked by consumer champion magazine Which?, together with larger names. Singapore Airlines (18 million passengers per year) won the first place on top of India’s Jet Airways and Air New Zealand.
source: Forbes
German airline Deutsche Lufthansa AG said Wednesday it has raised passenger fuel surcharges on European and long-haul routes to combat its rising costs for oil.
The company said in a statement the fuel surcharge on domestic German and intra-European routes will increase by €3 to €24 per flight segment. On long-haul routes the corresponding fuel surcharge will be raised by €10 to €92 per flight segment.
The Cologne-based airline said the increases will apply to all Lufthansa tickets issued on or after June 16.
source: iht.com
Silverjet, the business class-only airline that was forced into administration last month, is on the verge of an unlikely return to the skies, with a rescue deal set to be announced as early as today.
The level of interest in Silverjet will surprise the airline industry, which had expected the company to disappear without trace. While the company has won plaudits for the quality and value-for-money of its daily services from London’s Luton airport to Dubai and New York, attracting around 90,000 passengers in its first year, a combination of soaring jet fuel prices and an economic slowdown left the airline in dire financial straits.
source: The Independent
Continental Airlines said it is cutting 3,000 jobs and reducing capacity by 11 percent, citing record fuel costs that have pushed the industry into its worst crisis since 2001.
Continental will begin pulling back on flights in September, when departures on its mainline operations will drop about 16 percent below September 2007 levels. Fourth-quarter capacity will fall 11 percent. The company said it plans to offer details on flight and destination reductions and eliminations by the end of next week.
source: washingtonpost.com
In recent months, three all-business class trans-Atlantic carriers have quit flying, leaving just one in the air.
But the head of L’Avion, the last of the high-end airlines still operating, said he doesn’t believe his small company is likely to go the way of similarly ambitious startups MAXjet Airways Inc. and Eos Airlines Inc. and Silverjet PLC.
L’Avion has been able to pass along much of its increased costs to passengers, and has managed to fill 70 to 80 percent of its seats. It also has benefited from a strong euro, which has taken some of the sting out of dollar-denominated fuel and made it easier to hedge some energy costs.
source: BW
Soaring oil prices and a collapse in consumer confidence has left airlines in a worse state than after September 11, the industry’s chief economist said today.
Brian Pearce, of the International Air Transport Association, said that aviation was facing its biggest crisis in 30 years.
Airlines had been hit by the “‘double whammy'” of a collapse in consumer confidence and a dramatic rise in the cost of aviation fuel.
source: Telegraph.co.uk
The paper airline ticket has gone the way of the Dodo as
this weekend 240 airlines, belonging to the world travel association IATA, switch to all-electronic ticketing which is mostly done online.
Since IATA account for 94 percent of world airline traffic it looks like the traditional paper ticket has had its chips.
Economy airline Flyglobespan is to be prosecuted after claims it breached strict safety rules.
The Edinburgh-based firm is accused of allowing a flight from Liverpool to New York to take off when engine sensors were not working.
The decision to prosecute was made by the Civil Aviation Authority (CAA).
source: BBC News
