WELCOME TO PRESSPLAN'S JULY 2008 NEWSLETTER

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Travel updates and news:

AIRLINES: Information on new airlines, existing airlines and new routes
GOVERNMENT REGULATIONS: News on foreign policies and warnings
EXHIBITIONS/TRADE SHOWS: Information on up and coming trade shows for Industry

Ryanair has announced the temporary closure of its operations at the following airports for the period 04 November to 19 December: Basel, Budapest, Krakow, Palma, Rzeszow, Salzburg and Valencia. The airline said it has taken the decision because the costs at these airports were the most expensive in Europe and outweigh the potential revenue passengers would be prepared to pay, particularly during the off-peak winter period. The airline has also announced substantial capacity cutbacks at Stansted for its winter schedule. Last winter the airline had 36 aircraft based at Stansted which will reduce to 28 this winter.

British Airways chief executive Willie Walsh says fares are likely to rise by at least 4% this year because of the high price of fuel. Speaking at the airline's annual general meeting, Walsh said: "Fares will have to go up. We can't save a billion pounds from non-fuel costs." The airline's chairman Martin Broughton added that it would be surprising if the airline broke even this year and said, "We are up to our necks in the biggest crisis the aviation industry has ever known". The carrier will cut capacity this winter by 5% and reduce or freeze recruitment in a bid to save money.

British Airways is spending $30m on new facilities at JFK’s terminal 7. The money will be spent on adding kerbside check-in, dedicated Club World and Executive Club Silver check-in areas and refurbishing the terminal’s existing lounges. Robin Hayes, British Airways executive vice president of Americas, said: "In a time of rapidly increasing and robust competition, British Airways will now raise the competitive bar far higher than any of its JFK competitors. No other airline at JFK will come close to the standard and quality of what we intend to offer our customers. The new enhancements will place British Airways in the most enviable position to provide the best possible premium ground experience at JFK International Airport. The new premium pavilion will be totally unique at JFK, and we expect it will be very much appreciated by those premium customers who enjoy extra special handling and red-carpet treatment. British Airways customer service staff working in the new pavilion will be a part of the new premium team that will treat each customer as a special guest to deliver a consistent and upgraded guest experience”. The work started in June and will last 18 months.

Emirates Airlines will launch its first A380 commercial service from Dubai to New York JFK on 1 August.

Japan Airlines is introducing a new first-class suite and a business class seat on U.S routes. Both will feature on its new 777-300ER aircraft when introduced on U.S routes, starting with Tokyo to New York on 1 August.

Low-cost carrier Easyjet is to launch services from London Gatwick to Helsinki for the first time. Services will start on 3 November. Flight 8967 will leave Gatwick at 15:00, arriving in the Finnish capital at 19:55. The return flight 8968 will leave Helsinki at 20:30, arriving back in Gatwick at 21:40. Return flights on the route cost from £55.98 including taxes and charges. The route has been made possible by a change in the incentives offered by Finnish airport operator, Finavia. From the end of October, it will offer a 90% discount on landing charges and 70% on passenger charges for the first year of operation for airlines running new services.

Virgin Atlantic is increasing its service between Heathrow and Hong Kong to twice daily, three times a week, from October. The service will complement the existing daily service of the VS200.

Swiss: On 12 June, Swiss increased its long-haul surcharge by CHF11 to CHF155 per sector and its European surcharge by CHF 3 to CHF 39 per sector. The airline said: “Swiss constantly monitors oil prices, and will continue to adjust its fuel surcharges in response to further fuel price trends on the commodities markets. Should the price of crude oil fall to below its present level for more than four weeks, Swiss will rescind this latest fuel surcharge increase.”

Air France: On 13 June Air France raised its domestic surcharge by €2 per sector, medium haul by €5, long-haul by €10 and extensive long-haul by €20.  The airline said it would withdraw half of the increase as soon as the price per barrel remains steady under $120 and the remaining increases as soon as the price per barrel remains steady under $115.

Lufthansa: On 16 June, Lufthansa raised its surcharges by €3 on European routes to €24 per sector and by €10 to €92 on long-haul routes.

Thai Airways: On 25 June Thai Airways started a surcharge of US$230 each way on the London-Bangkok route.

Virgin America: US domestic airline Virgin America has introduced fuel surcharges for the first time. It will charge $10 on short-haul flights and $25 on longer flights. Virgin America's vice president of planning and sales, Diana Walke said: "The volatility in the worldwide oil market has made it increasingly difficult for carriers like us to accurately or fairly factor fuel costs into ticket prices. Similar to standard practices in markets around the world, our aim with these fuel surcharges is to reflect this volatility, regardless of whether fuel prices go higher or lower." The airline has doubled many of its existing fees, including those for overweight bags and for changing tickets. The news of the increases comes as British Airways revealed that its fuel bill had risen by just 6.4% last year, despite hikes of 113% in the fuel surcharges it levies.

Etihad Airways, the Abu Dhabi-based airline, has announced one of the biggest orders in aviation history, worth up to $43bn. The order comprises of 100 firm orders, 55 options and 50 purchase rights for Airbus and Boeing planes. The Airbus agreement includes firm orders for 20 A320s, 25 A350-XWBs and 10 A380s, options for five A320s, 10 A350s and five A380s and purchase rights for a further 15 A320s, 15 A350s and five A380s. The Boeing deal includes firm orders for 35 B787s, 10 B777-300ERs, options for 25 B787s and 10 B777-300ERs and purchase rights for a further 10 B787s and five B777s. The aircraft will be delivered between 2011 and 2020. Etihad chief executive James Hogan said: "This is a momentous day for Etihad Airways and Abu Dhabi and represents one of the largest aircraft orders in commercial aviation history. It reflects the strength and pace of economic growth in the Emirates and the integral role Etihad will play in Abu Dhabi's future. That future will see planned investments in infrastructure and projects within the emirate likely to exceed $200 billion during the next 10 years, an aggressive tourism push and enormous residential development. We are extremely proud to play a leading role in realizing these exciting plans in the years ahead. The size of our order also mirrors the rising prominence of the Middle East and its increasing emergence as a new focal point of global aviation and a natural air bridge between East and West offering the fastest air links for travelers and freight forwarders." Etihad's chairman Dr Sheikh Ahmed bin Saif Al Nahyan, said: "The story of Etihad's growth has been a remarkable one. At every stage of our short history we have surprised people with the scale of our ambition and at every stage we have delivered on that ambition. This aircraft order is another major step forward in our journey and will enable us to continue our exciting expansion plans by adding new destinations to our growing global network and fulfill our aspirations of bringing Abu Dhabi to the world”. The airline, which launched in 2003 currently has 38 aircraft in its fleet.

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