Feature: Airline Update ➔
(ERA), which represents some 65 intra-European airlines, is another trade body pushing for a re-think on the Emissions Trading Scheme. It says: “Aviation is a global industry and needs
a global solution on emissions and climate change. In pressing ahead with the ETS as a unilateral solution, the European Commission has brought the current situation upon itself. “Should the US bill [which claims the scheme
is incompatible with international law] – and any similar actions from other countries – be accepted by the European Commission, the application of the ETS to all carriers, including intra-EU airlines, should be withdrawn or suspended. A situation whereby intra-EU carriers would be the only airlines left complying with the scheme would do nothing for the environment but would be detrimental to Europe’s economic stability, its businesses and citizens.” Stay tuned for what promises to be a long and turgid industry-wide debate.
Emirates
ROUTES & RUNWAYS Closer to home, the extent of APD’s impact on Heathrow appears not to have taken hold just yet, with the airport handling a record 6.9million passengers in July, up 2.5 per cent year on year, while 84.7 per cent of available aircraft seats were filled, also a record. And there’s one more record: 68.5million people passed through the airport in the 12-month period ending with July. Domestic capacity fell during this period by 16 per cent, coupled with a 13.3 per cent fall in domestic passenger numbers – a trend attributed to a surge in domestic rail travel for business. All three of BAA’s Scottish airports recorded increased passenger numbers, but London Stansted was down by 7.2 per cent, a result of several airlines moving over to formerly BAA- operated Gatwick Airport. The West Sussex airport has prospered since Global Infrastructure Partners (GIP) became its owner in December 2009 following a ruling from the competition commission forcing BAA to break up its near-monopoly of London airports. Air Berlin, Norwegian and Air Asia X have all switched services from London Stansted to Gatwick, while new entrants Vietnam Airlines and Air Nigeria both begin operations from the airport this autumn/winter. Gatwick also appears to be on the shortlist for
operate the route, offering around 20,000 seats per week in each direction between them) and the failure of similar all-business class models from Eos, SilverJet and MaxJet in 2008, albeit on transatlantic routes. At the other end of the spectrum, the low-cost model operated on the London-Hong Kong route by Oasis Hong Kong was also a victim of financial difficulties in 2008. The fact that Asia is one of the world’s biggest growth markets is certainly an incentive for Hong Kong Airlines. The region will produce an estimated 360 million more travellers by 2014, 210 million of which will be from China alone. The country has built 45 new airports in the last five years and is planning another 52 by 2020. Latin America is getting its act together too,
with LAN and TAM coming together to create a truly global player and by far the biggest airline force in the region.
“Gatwick Airport appears to be on the shortlist for the launch of an ambitious all-business class service from Hong Kong Airlines next year”
THE RISE OF THE MIDDLE EAST But of course it is the Middle East whose airlines continue to grow apace, with the region’s market share growing from four per cent to 11 per cent over the last ten years. “The Middle East shows the value of visionary thinking and coordinated planning by industry and government,” says IATA’s Bisignani. “Low taxes, cost efficiency, and impressive infrastructure developments are at the core of their success.” The rise of the Gulf-based carriers Emirates, Etihad and Qatar has been cause for concern for some areas of the industry, with Bisignani declaring in his AGM speech that “Increasing tensions around the rapid growth
of the Gulf carriers must be resolved.” But Jonny Shingles, managing director of Egencia UK, says other airlines can learn from their success. “European carriers have certainly taken Middle Eastern airlines into consideration as serious competitive threats,” he says. “They have key strengths such as the quality of
their airport and onboard traveller experiences, an extensive network with many direct routes and loyalty programmes. The competition from Middle Eastern airlines should remind others that there is no way forward without continuously investing in service, product and aircraft. Optimising costs is not the only solution.” Etihad Airways marches on towards its vision
the launch of an all-business class service from Hong Kong Airlines next year as reported by the Centre for Asia Pacific Aviation. CAPA says that Heathrow has been ruled out due to the cost and availability of slots. It’s a bold move from the fast-growing Hong
British Airways
Kong Airlines given the competitiveness of the route (British Airways, Cathay Pacific, Air New Zealand, Qantas and Virgin Atlantic already
of breaking even in 2011 and profitability in 2012 after reporting a 29.2 per cent rise in revenues in 2010, while passenger numbers topped seven million for the first time. Qatar Airways, meanwhile, continues with its
rapid network expansion, adding new routes from its Doha hub this year to Stuttgart, Aleppo, Shiraz, Venice, Kolkata, Montreal and, this autumn, Oslo and Bulgarian capital Sofia. It plans to serve more than 120 destinations with a fleet of 120 aircraft by 2013, and its rapid growth
➔ 66 I THE BUSINESS TRAVEL MAGAZINE
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