1.  SIA backs off China Eastern bid

Singapore Airlines says it has no plans to renew its unsuccessful bid for China Eastern Airlines. "We have no plans at the moment," chief executive Chew Choon Seng told reporters on the sidelines of the Aviation Leadership Summit in Singapore. Chew said Singapore Airlines remains interested in the region's key growth markets such as China and India, but added that the company was planning for the possibility that an economic slowdown would impact air traffic. "Given the state of the world financial markets at the moment, there are other things that engage our attention, such as planning for contingencies," Chew said. "The aviation industry tends to reflect the state of the economies around the world, so there will be some (impact) on demand for air travel," he said. A bid by Singapore Airlines for a stake in China's third-largest carrier was rejected in early January by China Eastern's shareholders. China Eastern wanted the tie-up, which would have brought the struggling carrier foreign expertise. But shareholders voted it down after rival Air China launched an unusual public lobbying campaign, promising more money in a future bid.

Source: Business Standard;18.2.2008

2.  Asia urged to show aviation leadership

IATA has called on Asia to join the race for industry leadership. "Asia has more than 50 percent of the world's population, and will be our largest single market by 2010," said Giovanni Bisignani, IATA's director general and CEO in his keynote address at the inaugural Singapore Air Show Aviation Leadership Summit. "Asia needs to be part of the race to lead the industry with sound policies and innovation, along with the commercial race for market share, Bisignani said. He identified liberalisation of air services as one of the opportunities for Asian leadership to effect industry change. "The archaic bilateral system requires government to negotiate international markets, resulting in a fragmented industry. "The largest airline represents only five per cent of total traffic. And in Asia 13 airlines compete for 50 per cent of the market." ASEAN's decision to liberalize traffic between capital cities in 2008 was a step in the right direction, Bisignani said. "But we need bolder leadership that will set the industry on a completely different course. "If Asia acts as a region, it can balance the traditional leadership of the US and Europe, bringing a bolder approach and exploring new ways of doing business," said Bisignani. He also suggested the formation of a new and unique regional institution for coordination of air policy issues involving both government and industry. "Asia is our industry's present and its future. Running an airline is tough business, and Asia has done well," he said. "The race for market share and growth has been won. "Now we need a unique race for leadership that involves key players from the region from fast developing China and India, to more traditional players like Japan, Singapore or Australia, and everyone in between."

Source: Business Standard;18.2.2008

3.  Cathay Pacific, Finnair to cooperate on services

Cathay Pacific and Finnair have announced a new code-share arrangement that will see the two airlines cooperate on flights between Helsinki and three key European hubs. The agreement also sees the two airlines sharing codes on flights between Hong Kong and Australia. From March 1, the Cathay Pacific "CX" code will be placed on Finnair flights between its Helsinki hub and three Cathay Pacific destinations in Europe - Amsterdam, Frankfurt and London - enabling seamless travel for passengers flying from Hong Kong to Helsinki through any of these destinations. The code-share arrangement will also see Finnair's "AY" code placed on Cathay Pacific flights from Hong Kong to and from three Australian cities - Sydney, Melbourne and Perth. Finnair passengers can enjoy seamless connections from Helsinki to Australia, flying to Hong Kong on Finnair's four-times-weekly service. This will increase to a daily operation from April 26.

Source: Economic Times;14.2.2008

4.  Etihad wins four new Indian routes

Etihad Airways is to boost its network to India with the addition of four new cities, Chennai, Jaipur, Kolkata and Kozhikode. The coastal city of Kozhikode will be Etihad's third destination in Kerala to add to its highly successful flights to Kochi (Cochin) and state capital, Thiruvananthapuram (Thrivandrum). The decision follows successful bi-lateral talks between the governments of the UAE and India, aimed at further liberalising flying links between the two countries. The Abu Dhabi-based airline is now finalizing when these services will launch. James Hogan, Etihad Airways' chief executive, said: 'Etihad is always keen to build up its Indian services and we are thrilled to have been given the rights to serve four new cities in this exciting market. Hogan spent two days in September last year in New Delhi meeting the Indian Minister for Civil Aviation Praful Patel, and senior government officials to press the carrier's case for additional flights between India's emerging cities and the capital of the United Arab Emirates. At present, Etihad operates daily flights from Abu Dhabi to the commercial capital Mumbai and the national capital New Delhi as well as Kochi and Thiruvananthapuram, both in the southern India state of Kerala. Etihad had set its sights on eight cities in India for new air services from its base in Abu Dhabi with traffic rights to Ahmedabad, Amritsar, Bangalore and Hyderabad still to be gained.

Source: Economic Times;14.2.2008

5.  Austria expects football fever even without England

England's failure to qualify for Euro 2008 is expected to stimulate overall British holiday bookings to Austria this summer, the Austrian National Tourist Office claims. With none of the home nationals qualifying for the tournament being shared between Austria and Switzerland in June, visitor numbers were expected to be limited. But as many as 15,000 Brits are expected to travel to the host countries, even though their teams did not qualify, according to the ANTO.  Austria's reputation for hosting international events and throwing parties might be part of the reason for this phenomenon, according to the tourist office in the wake of a UEFA EURO 2008 Road Show in London. And as June is still outside the main holiday season, most UK tour operators offering Lakes & Mountains holidays are now offering attractive packages for the period. Travellers can then add individual day trips to the respective host cities – Innsbruck, Salzburg, Klagenfurt and Vienna. The cultural programmes surrounding the football are also expected to attract day trip visitors on package holidays. The programme will includes a literature festival, the football opera Playing Away by British composer Benedict Mason, the opening of the fan zone on Vienna by the Viennese Philharmonic Orchestra and Vienna's Boys Choir, performances by Placido Domingo and Rolando Villazon and an Elton John concert, which will feature football legends Franz Beckenbauer and Michel Platini. Tourist office CEO Petra Stolba said: "The 'Fan Mile' was one of the innovations that caught the public's imagination during the World Cup in Germany. And we Austrians are known for being able to organize a good party. "I'm confident that the fan zones in Vienna, Innsbruck, Salzburg and Klagenfurt as well as the unique public viewing area on the floating stage of the Bregenz Festival on Lake Constance – where 60.000 tickets have already been sold – will live up to anybody's expectations."

Source: The Wall Street Journal;19.2.2008

6.  Australia/US agree open skies pact

Australia and the United States have agreed to drop restrictions on lucrative trans-Pacific flight routes between the two countries, Australia's government said. Transport Minister Anthony Albanese said talks with US officials in Washington had reached agreement on an open-skies pact, which could see more US carriers fly to Australia via ports in Asia, such as Tokyo. "This agreement will remove restrictions on competition for the benefits of Australian jobs and consumers," Albanese said in a statement. The deal helps clear the way for Australian airline Virgin Blue Holdings Ltd to begin flights to the United States on its carrier V Australia by the end of this year, edging open one of the world's most lucrative and protected long-haul routes. But shares in Australia's flag-carrier Qantas Airways Ltd slumped by 3.6 percent to A$4.58 ($NZ5.30) at 0147 GMT (2.47pm NZT) on expectations the airline will face tougher competition on the prized cross-Pacific route, on which it has a near-monopoly. United Airlines is currently the only competitor to Qantas in non-stop flights to the United States. It runs 14 flights a week to Australia. Qantas operates 48 flights a week and reportedly generates as much as 20 percent of its profits from the route. A 2006 report for Singapore Airlines said Qantas charged 38 percent more for flights from Sydney to Los Angeles than on the competitive "kangaroo route" from Sydney to London. The open-skies deal replaces an aviation treaty between Australia and the United States under which airlines based in either country were capped at four weekly flights on the route in the first year. Virgin's V Australia, which is 62 percent owned by Toll Holdings Ltd, has asked the US Transportation Department for 10 weekly flights, having already placed an order for six long-range Boeing 777-300ERs with options to buy another six. Australia's former conservative government rejected repeated requests from Singapore Airlines for permission to fly from Australia to the United States. Albanese's centre-left Labor government, elected in November, has not yet said if it supports the entry of Singapore Airlines on the route. Singapore wants access to new markets to help offset competition from low-cost carriers in Asia. Singapore Airlines estimates that opening the Pacific route to more competition could increase the number of travellers between the United States and Australia by up to 8 percent.

Source: Financial Express;18.2.2008

7.  Lufthansa revels Indian addition

Lufthansa is continuing to expand its services to India and from 3 May 2008, it will be the only airline to connect the south German hub of Munich with Mumbai. In future, the thrice-weekly flights from Munich, which will be operated with an Airbus A340-300, will supplement Lufthansa’s daily service from Frankfurt. In addition, the current service from Frankfurt to Kolkata (Calcutta) in Northeast India will also be boosted from three to five flights a week, starting on 3 June by adding a flight on Tuesdays and Saturdays. "India is increasingly gaining in importance as a strategic growth market. That is why Lufthansa has steadily expanded its flight services to the country in recent years. In future, our customers will have a choice of 50 flights a week to six destinations in India. This will underpin our position as the European market leader," said Karl Ulrich Garnadt, Executive Vice President Services and Human Resources, Lufthansa Passenger Airlines. With over 13 million residents, Mumbai is one of the most populous cities in the world. The metropolis is also India’s most important port and the commercial capital of the sub-continent. Mumbai is responsible for about 40 per cent of India’s foreign trade. The special introductory fare of 599 euros on the new route will bring Mumbai within easy reach.

Source: The Financial Times;London;19.2.2008

8.  Northwest expands domestic network

Northwest Airlines has announced that it will offer a number of new domestic services. Northwest will offer daily nonstop service between the Minneapolis/St. Paul hub and Fort Wayne, Indiana beginning June 5, 2008. The new service will be operated by Northwest Airlink partner Pinnacle Airlines using 50-seat CRJ-200 aircraft. The company will also offer daily nonstop service from its Detroit World Gateway to Chattanooga, Tennessee beginning June 5, 2008. They will offer daily service from its Detroit World Gateway to Escanaba, Mich. with service continuing on to Iron Mountain, Mich. Service will commence from Minneapolis/St. Paul to Iron Mountain, with continuing service to Escanaba. The company will also offer twice daily nonstop service between its Memphis hub and Colorado Springs, Colo. beginning June 15, 2008. The new service will be operated by Northwest Airlink partner Pinnacle Airlines using 50-seat CRJ-200 aircraft. Finally they will offer daily nonstop service from its Detroit World Gateway to Salt Lake City, Utah, beginning June 5, 2008 on the 124-seat A319 Airbus. This compliments Northwest Airline's existing service between Salt Lake City and Minneapolis/St. Paul.

Source: The Financial Times; London;19.2.2008

9.  Non-stop Gulf flights from Thiruvananthapuram

Budget airline Air India Express has announced the launch of non-stop flights from Thiruvananthapuram to destinations in West Asia. Non-stop flights on the Thiruvananthapuram-Gulf sector will start on Monday when the airline’s summer schedule comes into effect, said Mr H. A. Munaff, Manager-Thiruvananthapuram, Air India. Earlier, Thiruvananthapuram was a transit point for the airline’s Gulf flights, which used to originate from either Kozhikode or Kochi, he explained. However, in the airline’s summer schedule, Thiruvananthapuram has been delinked from Kochi and Kozhikode, he added. With the launch of non-stop flights, the number of seats the airline offers on the Thiruvananthapuram-Gulf sector has increased by 56 per cent from 1,530 seats a week to 2,395 seats. Though the number of international flights from Thiruvananthapuram has decreased from 17 to 15 per week, the number of seats the airline offers has gone up substantially, Mr Munaff said. In its summer schedule, Air India Express will operate flights from Thiruvananthapuram to destinations including Dubai, Abu Dhabi, Doha, Bahrain, Muscat and Sharjah. The introduction of the non-stop flights will help passengers save up to two hours of flying time, he said. The airline will also operate five domestic flights from Thiruvananthapuram every week, including one to Mumbai and two each to Kochi and Kozhikode. Air India Express is also looking at starting flights from Kerala to Kuwait and Dammam in Saudi Arabia, Mr Munaff said. In the airline’s summer schedule, the total number of flights per week from Kerala to destinations in West Asia will go up from 64 to 76. Meanwhile, construction work on the Air India engineering and maintenance base in Thiruvananthapuram will be inaugurated on March 1, Mr Munaff said. Work on the first phase of the facility, which is intended for Boeing 737-800 aircraft, will be completed in one year, he added.

Source: Business Line;17.2.2008

10.  AP sales tax cut on ATF: AI to save Rs 30 cr, SpiceJet Rs 12 cr

The decision of the Andhra Pradesh Government to reduce sales tax on aviation turbine fuel (ATF) to 4 per cent will provide a windfall to the airlines although passengers are unlikely to benefit from any drastic fall in fares. Some airlines, however, have hinted at reducing the fuel surcharge that is charged on flights to and from the State.A senior official of Air India said the State Government decision would help the airline save around Rs 30 crore annually. Similarly, the low cost airline, SpiceJet is expecting a monthly reduction of about Rs 1 crore in its fuel costs, airline’s Chief Financial Officer, Partha Sarathi Basu, said. The President and Chief Executive Officer, IndiGo Airlines, Mr Bruce Ashby, while welcoming the decision said that the airline was still evaluating the exact economic impact on the bottomline of the airline. The Chief Executive Officer, JetLite, Mr Gary Kingshott, termed the State Government decision as "excellent news. "Airlines, however, felt that it will be difficult to reduce fares as taxes on fuel in other parts of the country still remain high and vary from 4 per cent to 36 per cent. The domestic aviation industry maintains that the high incidence of sales tax and the global increase in prices of ATF are the two major causes for the huge losses being registered by them. ATF accounts for 35-40 per cent of the operating cost of most major domestic airlines. The Andhra Pradesh Government move will also provide a level playing field to all domestic airlines specially those that do not have small aircraft in their fleet and operate to and from the State. At the moment, airlines operating small aircraft seating up to 70 passengers are provided ATF at 4 per cent sales tax throughout the country. However, larger aircraft pay much higher costs for procuring ATF. But after the latest decision of the Andhra Pradesh Government, airlines irrespective of whether they operate small or large aircraft will be provided ATF at 4 per cent instead of 33 per cent when they fly to and from the State.

Source: Business Line;15.2.2008