p10-11 17/6/09 20:56 Page 11
ttglive.com
guest editor
AIRLINE FINANCING.
European airlines
hit by credit woe
EUROPEAN airlines are
fighting on unequal
terms against foreign
carriers which can get
support from govern-
ment credit agencies
that is not available to
UK carriers.
Air Asia X and Qatar
Airways were among
the few airlines to place aircraft orders at this
week’s Paris Air Show as carriers shied away
from growth plans amid falling demand.
They announced orders of £1.3 billion and
£1.1 billion respectively for Airbus aircraft.
No UK or European airlines announced orders
at Paris, and many claim they are disadvantaged
by rules that ban government export credit
agencies from supporting their native carriers.
The agencies support manufacturers in their
countries by guaranteeing payments from
foreign airlines buying their aircraft.
The rules mean that the UK agency, ECGD,
LONG-TERM DAMAGE.
cannot support British airlines to buy Airbus
Brits may flock to
aircraft, which are partly made in Britain.
Despite failing to unveil any orders in Paris,
European airports
Boeing is expected to regain the initiative by
launching the long-awaited first test flight of its
787 Dreamliner before the end of the month.
BRITISH AIRLINES will lose business to European
carriers operating out of continental hubs as a Steve says: “There needs to be a level playing
result of increases to APD, MPs have warned. field for carriers such as Virgin to gain when
By November 2010 the tax on a long-haul placing orders rather than be hamstrung.
economy seat would have risen 113% from £40 Anomalies like this prevent Europe’s airlines
to £85 if government plans are not stopped. from growing as fast as they would like.”
And Tory MPs opposing the changes in the Flyers could increasingly opt to fly from airports such as
House of Commons said that could make it Charles de Gaulle for long-haul flights to dodge costly APD
cheaper to buy a ticket to Amsterdam, where
Agents to see stars at 25th bash
APD had been abolished, and then take another Hands said the ironic result would be an
flight to Asia or Australia. increase in emissions because passengers About 20 agents will celebrate Virgin
Tory shadow treasury minister MP Greg would be using two flights to cover a route that Atlantic’s 25th anniversary next week
Hands said the government acknowledged the needed only one. with a party in New York.
danger in its original consultation but argued Poole MP Robert Syms added that the large They will fly from Heathrow
few people would put up with the extra time tax increase on long-haul flights could do to Newark on the anniversary of
and effort involved in flying via a foreign hub to long-term damage to the UK airline industry. the airline’s first flight from
avoid a “modest” increase in APD. Gatwick to Newark.
Hands rejected this view: “The proposed Steve says: “In the depths of recession the The agents will be joined on
increases are not ‘modest’ at all. They reduce travel industry needs measures that will the flight by Vivienne Westwood
the competitiveness of airlines operating out of boost its competitiveness, not damage its and Richard Branson, and at
the UK and may well cause a significant loss of growth at such a critical time. Britain is in the party by Samuel L Jackson
business to airlines operating out of cities such danger of losing out to European competi- (pictured) and Buzz Aldrin.
as Amsterdam, Frankfurt and Paris.” tors and thousands of jobs could be lost.”
19.06.2009 11
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68