EyeforTravel News: Airlines Feed

British Airways executives to face price-fixing charges

Lindi — Thu, 07 Aug 2008 09:08:49 +0100

As per the information available, the Office of Fair Trading wants to go to court next month to launch a case that leaves BA's head of sales and three retired sales and commercial executives facing up to five years in prison, say legal sources familiar with the matter. The watchdog has decided to charge the four men over a conspiracy between BA and Virgin Atlantic between 2004 and 2006 to fix the price of passenger fuel surcharges on transatlantic flights.

BA closes in on American alliance?

Lindi — Mon, 04 Aug 2008 11:11:44 +0100

As per the information available, the talks are taking place alongside negotiations between BA and the Spanish airline Iberia about a possible merger.

The two airlines are already working together as partners in the One World alliance, which lets member airlines share flight capacity and airport facilities. But it is understood that, if agreed, a new deal would see them work much more closely to try to cut costs in areas such as technology, ticketing and administration.

Not even the Middle East immune to airline troubles

Lindi — Mon, 04 Aug 2008 08:56:45 +0100

Emirates President, Tim Clark, has said that soaring fuel costs had "knocked us for six", and the carrier has dropped its US$1.5 billion profit forecast this year. Clark added, "the way things have gone, a few hundred million dollars [profit] would be fine".

"No need of mergers": Ryanair

Lindi — Fri, 01 Aug 2008 07:24:20 +0100

According to Reuters, he added that his company will be one of five main flyers left after the industry consolidates.

"Ryanair does not need mergers with other companies," O'Leary said at a press conference in the central Italian city of Bologna. "After consolidation among flag carriers because of expensive fuel, five main companies will remain and Ryanair will certainly be among them," he reportedly said.

WestJet 2Q profit triples

Lindi — Fri, 01 Aug 2008 07:11:03 +0100

Calgary-based WestJet reported second-quarter net earnings of $30.2 million, or 23 cents per share, compared with $11.5 million, or nine cents per share, in the year earlier quarter.

Revenue for the quarter was $616 million, up 23.6 percent compared with the $499 million in the same quarter in 2007.

For the same quarter last year, the airline had posted a one-time charge related to a failed reservation booking system. It included a one-time loss related to the $22.2 million after-tax writedown of the failed aiRES system.

Decline of high fare short-haul travel

Lindi — Tue, 29 Jul 2008 08:37:45 +0100

Significantly, the airline indicated that it would plunge from a profit last year of €439m (£348m) to a loss of up to €60m in 2009 if fuel costs stay high and render many of its cheap flights unprofitable.

"About $40 of the price of a barrel of oil today is attributable to the weak dollar"

Lindi — Tue, 29 Jul 2008 08:12:16 +0100

Gilliland said crippling fuel prices can best be attacked by strengthening the US dollar relative to other currencies. He called on the Federal Reserve to implement policies, such as increasing interest rates, to do that.

"When the dollar is weak, oil prices are naturally going to be higher," he said. "We need interest rates to go back up just as quickly now" as they fell late last year and early this year.

He said economists estimate that "about $40 of the price of a barrel of oil today is attributable to the weak dollar."

Focus on your retailing strategy before selling ancillary items

Lindi — Mon, 28 Jul 2008 11:55:30 +0100

But what approach do suppliers specifically airlines need to take before joining the bandwagon or expanding their bouquet of offerings?

From an airline's perspective, Charlie Sultan, Managing Director- Sales Planning & Analysis, American Airlines, says, "Any discussion of ancillary revenue, should also include a realisation of the how the core revenue is being sold. Any supplier can sell ancillary items, but it shouldn't without an overall retailing strategy."

Kayak to stop displaying American Airlines' fares: report

Lindi — Fri, 25 Jul 2008 07:58:39 +0100

As per the information available, the move will be applicable from August 1.

Steve Hafner, CEO of Kayak, posted a comment on the TechCrunch blog: "American asked us to suppress search results from competing websites as a condition to displaying their fares. This is simply not something that Kayak will do. Imagine Sony telling Best Buy that they couldn't sell Panasonic?"

FlyDubai finalises $3.8 billion aircraft order

Lindi — Fri, 25 Jul 2008 07:55:18 +0100

The carrier plans to begin flying in the middle of next year. It will take delivery of the planes from May 2009 through 2015.

As per the information available, FlyDubai will target a mix of business and leisure destinations within a four and a half hour range of Dubai.

FlyDubai will operate to points not already served by Dubai-based carrier Emirates, which is also owned by the state, including cities in Saudi Arabia, Qatar and Kuwait. The government is spending $33 billion on what it intends to be the world's largest airport at Jebel Ali.