1. Turkish Airlines joins Star alliance
Turkish Airlines – one of the fastest growing airlines in Europe - is the latest airline to join Star Alliance, which includes carriers such as Singapore Airlines, United and Lufthansa. Turkey's national flag carrier adds 31 destinations to the network - mainly in Turkey, Central Asia and the Middle East. It carried nearly 20 million passengers with a fleet size of 102 aircraft in 2007. The carrier plans to fly to 11 new destinations and add an additional 22 aircraft to its fleet by the end of the year. Turkish Airlines said joining Star is a step towards it becoming a major player in the world of aviation. "Joining the alliance is an important step for the airline's future, building on its strength of bridging Europe and Asia through its Istanbul hub," Turkish Airlines chief executive Temel Kotil said. Star Alliance chief executive Jaan Albrecht said the alliance had gained a new member carrier with a strong home market which is also one of the fastest growing economies in the world.
Source: Business Standard;30.3.2008 

2. Alitalia on the brink as talks end
Air France-KLM's takeover of Alitalia has been abandoned and the Italian airline's chairman has resigned. The BBC reported that Maurizio Prato stood down after the breakdown of talks between Alitalia's unions and Air France-KLM management. He had warned the unions that Alitalia risked going bankrupt if they did not accept the deal. A crucial board meeting today will have a bearing on the future of the troubled Italian airline. The Italian government has been trying for more than a year to sell its 49.9% stake in the national airline and says there are no other bidders. Earlier, Economy Minister Tommaso Padoa-Schioppa said the only alternative to the Air France-KLM offer would be to put Alitalia into emergency administration. He also said a US$470 million state bridging loan to Alitalia would be impossible unless the Air France-KLM deal was signed. The government's sale of Alitalia has been opposed by Milan's airport operator and prime ministerial candidate Silvio Berlusconi.
Source: Economic Times;28.3.2008

3. Emirates, SriLankan split widens
In a further split between Emirates Airlines and SriLankan Airlines, the Dubai carrier said it would stop sharing routes with Sri Lanka's national carrier when its decade-long management contract expires this month. The decision follows worsening relations between Emirates Airlines and Colombo, with talks between both sides collapsing after nearly two years of negotiations over renewing the contract. In December, the government withdrew the work permit of the Emirates-appointed chief executive of SriLankan Airlines, Peter Hill, because he failed to "look after the interests of the majority shareholder". However, the Dubai-based carrier said it would retain its near 44 percent stake and continue to have a board presence. The Sri Lankan government has nominated and appointed a new chairman and directors to SriLankan Airlines, with immediate effect. Emirates president Tim Clark told AFP in January that it was willing to sell all or part of its 43.6 percent equity stake in SriLankan. Emirates will continue to serve Sri Lanka with 17 weekly flights to Colombo, effectively becoming a competitor of SriLankan. All of which should make for interesting board meetings with three representatives from Emirates and three from the government, supported by the new chairman, Nishantha Wickremasinghe
Source: Financial Express;1.4.2008 

4. BA reviews plans to move more flights into T5
British Airways is rethinking plans to move its remaining long-haul services into Terminal 5 by the end of this month. On April 30, the airline had planned to move a further 20% of its flights from Terminal 4 to the new terminal. These include flights to New York, Washington, Delhi and Cape Town. But a spokeswoman today confirmed that the airline was now reviewing the situation, following the major problems experienced at the terminal since it opened last week. “It’s something that we’re looking at,” she said. Air France-KLM, which is due to move into the space vacated at T4, said it was “essential’ the move went ahead as planned. BA has had to cancel 50 domestic and European flights from T5 today but hopes to have 92% of its schedules operating by tomorrow (Thursday). Meanwhile, it is busy working its way through a mountain of bags, the number of which stood at 20,000 last night. The spokeswoman said the airline and a team of volunteers were doing a number of things to get bags back to their owners. “It’s a very complex process. There are various security steps you have to take, and at the moment we are unable to use the automated screening system because there is a problem with it, so it’s all having to be done manually. “We are taking bags overland, some are going to Gatwick to be processed, and we are also using a specialist sorting facility in Milan to take bags to destinations in mainland Europe. Clearly it’s our priority.”
Source: Economic Times;29.3.2008 

5. BA gives more OpenSkies details
British Airways is to operate a three-class service on its new OpenSkies transatlantic offshoot between the Continent and the US. The carrier will run Boeing 757s in an 82-seat configuration split into three classes. 'Biz' class will have 24 seats that convert into six foot flat beds, 'Prem+' class will have 28 premium seats with a 52-inch seat pitch - claimed to offer more legroom than rival premium economy services - and economy will have 30 leather seats. Personal entertainment units will feature more than 50 hours of programmes. Flights between Paris and New York are subject to regulatory approval and the resolution of a dispute with pilots over the employment terms offered by the start-up.  No date for the first service this summer has yet been given, although BA says it intends to add a second 757 "later in 2008". OpenSkies will have a fleet of six aircraft by the end of 2009. Fares have yet to be announced. The carrier's managing director Dale Moss said: "OpenSkies combines the proven track expertise of one of the world's biggest airlines with the passion and commitment of a start-up. "We're out to do things differently and have total focus on creating the best customer experience on our routes. "We want to deliver an unforgettable premium flying experience and an atmosphere focussed on personalization and comfort." One relief, critics will say, is that the new airline will not have to operate from Heathrow Terminal 5.
Source: Financial Express;1.4.2008

6. Continental prepares for Heathrow debut
Continental Airlines starts flights from Heathrow Airport to both New York and Houston on Monday.The Heathrow flights have been made possible by the new Open Skies agreement between the US and the European Union. Continental’s flight CO28 from Newark is scheduled to be the first aircraft of the new-entrant carriers to arrive at Heathrow on March 30, at 07.30. The carrier will run four daily departures from Heathrow – two to New York and two to Houston – the largest operation of any of the new-entrant airlines at Heathrow.  Continental’s Heathrow flights will operate from Terminal 4, which will be the future base for all SkyTeam carriers operating at the airport.  The airline will continue to offer flights from Gatwick to New York (twice daily), Houston (daily) and Cleveland (daily, seasonal).  Heathrow flights will be operated by 283-seat Boeing 777-200, carrying 48 passengers in the BusinessFirst cabin and 235 in economy, and 174-seat Boeing 767-200ER, with 25 BusinessFirst seats and 149 economy seats.  The Gatwick flights will be operated using 235-seat Boeing 767-400ER, with 35 BusinessFirst seats and 200 economy seats, and 175-seat Boeing 757-200, carrying 16 passengers in BusinessFirst and 159 in economy. CEO and chairman Larry Kellner said: “Continental has waited a long time to gain access to Heathrow and this is a great day for us, as well as for all transatlantic travelers. “We can now provide our customers with what they have requested – the opportunity to fly to both of London’s main airports with their preferred airline.”
Source: Economic Times;28.3.2008 

7. Singapore tests Formula 1 lighting
Organisers of the inaugural 2008 Formula 1 SingTel Singapore Grand Prix are now demonstrating the lighting system that will make history in September, when Singapore hosts the world’s first night race on the Formula 1 calendar.16 lighting projectors have been set up on a 64-metre stretch of St Andrew’s Road in front of the Padang. Simulating daylight conditions, the projectors are installed on aluminium trusses supported by three towers, each approximately 10 metres tall placed 32 metres apart and supported by a footing system with a steel plate. The set-up offers a snapshot of the lighting infrastructure that will be used during the race event. This bespoke state of the art lighting system consists of pylons and footing system supplied by Singapore contractors, projectors by Philips and aluminium trusses from Italy. It will remain on St Andrews Road until 6 April 2008, and members of the public can view the lighting infrastructure from 7pm till midnight daily. The entire track will be fitted with nearly 1,500 lighting projectors and will be powered by 12 twin-power generators. An overall average of about 3000lux levels is required to illuminate the circuit, which is enough to meet High Definition Television broadcast standards. As a result, the track will be almost four times brighter than a typical stadium. Installation of the lighting system will be carried out in stages, starting with the Pit Straight in end-May with completion targeted for 31 August 2008. The live demonstration of the lighting system is the latest milestone as Singapore prepares for race day in September. The pit building is 65% complete and well on track to be ready by end-June. In the advanced stages of completion are the modification works to existing roads, such as the removal of kerbs and traffic islands along the track, as well as the expansion of the Promenade at the National Day Parade seating gallery. The rest of the road works, such as the construction of a new track section in front of the pit building and the construction of a service road and tunnel to the pit building, are expected to be completed by end-May. Mr Lim Neo Chian, Deputy Chairman and Chief Executive at the Singapore Tourism Board, who chairs the Formula 1 Working Committee, noted the project’s steady progress. “Preparations for the race are in full swing and we are on schedule to stage the inaugural 2008 Formula 1 SingTel Singapore Grand Prix. While we’ve still some way to go, works are progressing smoothly. The anticipation is building in Singapore, with an exciting line-up of lifestyle events being organized to enhance the visitor experience during the race period. We look forward to welcoming visitors to Singapore to enjoy our unique race and other festivities.” The Singapore GP Season (20 September to 5 October 2008) features a number of quality lifestyle events surrounding the Formula 1 race. Besides the Singapore River Festival (19 to 28 Sept), the Formula One – The Great Design Race (25 Aug to 2 Oct) at the National Museum of Singapore, the Singapore Biennale (11 Sept to 16 Nov) and the Singapore Motorshow 2008 (26 Sept to 5 Oct) at Suntec Singapore.
Source: Business Standard;2.4.2008 

8. Turkish and Austrian ink deal
Turkish Airlines and Austrian Airlines are launching a new partnership, following Turkish Airlines acceptance as a member of the Star Alliance. Under a new code share agreement, both airlines are able to expand their flight capacity on routes between Vienna and Istanbul and between Vienna and Ankara. Austrian Airlines is increasing its flight capacity between Vienna and Istanbul from two to four connections a day under the cooperation. In return, Turkish Airlines will also market the flights operated by Austrian Airlines to Istanbul and Ankara. The Austrian Airlines Group is expanding its global network with this cooperation, and now offers the best connections to and from Turkey together with Turkish Airlines. Passengers now also have more choice when traveling via the hub Vienna.
Source: Business Standard;2.4.2008

9. Travelguru partners with IRCTC to offer rail tours
Leading online hotel specialist, travelguru.com has partnered with Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) to offer rail tours on the website. The online travel agent offers various combination packages across India in co-ordination with IRCTC. The packages offered include rail travel. “This partnership is based more on the clientele that Travelguru offers, and these rail tours don’t feature the hotels that are a part of the Travelguru portfolio,” stated Hari Krishnan, Vice President Product and Marketing, Travelguru. It markets the rail tours through the current database of clients with the help of direct mailers and other channels. Travelguru is currently evaluating the performance of these rail tours. The online travel company has also introduced Cash on Delivery (COD) payment option for its customers and has partnered with Express IT Logistics Worldwide Ltd. to conduct the fulfillment part of the new payment option. Travelguru has currently spread the reach of this service to 50 cities and intends to touch 80 cities by the end of next month. “We did our bit of analysis and realised that payment in cash was the most suitable option to introduce in the market as sometimes, customers are not comfortable paying a large sum by credit card or may not have that kind of credit limit,” said Krishnan. The COD option will be valid for a period of two days, after which if the payment is not done, the booking will be cancelled.
Source: www.travelbizmonitor.com;3.4.2008

10. Maytas, Karnataka Govt. sign agreement for Gulbarga and Shimoga airports
Maytas Infra Limited, Nagarjuna Construction Company (NCC) have signed a Project Development Agreement with Infrastructure Development Department (IDD), Government of Karnataka to develop and operate airports at Gulbarga and Shimoga on a Build Operate and Transfer basis. The agreement was signed by Teja Raju, Vice Chairman, Maytas Infra Limited and Renuka Prasad, Deputy Secretary, IDD in Bangalore recently. “This deal shows that the Government has been successful in promoting Public-Private-Partnership (PPP) projects for infrastructure development. This is truly a win-win situation for both Government of Karnataka and the citizens,” said Sudhakar Rao, Chief Secretary, Government of Karnataka.The consortium will develop, design, finance, construct, maintain and operate the airports. Gulbarga Airport will be built over 695 acres about 15 kms. away from the city and Shimoga Airport will be built over 662 acres, about 12 kms. from the city. As per the Special Purpose Vehicles (SVP) to be set up for the projects, Maytas and NCC will have 37 per cent share, while Vienna International Airport (VIE) will have 26 per cent share. The two airports are expected to be set up in 24 months and the concession period is 30 years, which can be extended by the SPV for another 30 years and by mutual consent of the companies for another 30 years. Each of the parties has the right to terminate the contract. Further the SPV will review the master plan every five years. IDD had earlier selected a consortium of Maytas, NCC and VIE to develop and operate the airports. “The state government had made a decision to involve itself only in the safety, security and licensing aspects of PPP projects. The structure was then reworked and a Project Development Agreement was introduced. As per this agreement, the state will help in setting up the airport, getting the clearances and operating the airports,” said P V Ravi, MD and CEO, Infrastructure Development Corporation (Karnataka) Limited (iDeck). These airports will be like merchant airports and Karnataka is the first state to implement PPP projects on this basis. The consortium will invest Rs 100 crore for development of each airport over a period of seven years. Of this Rs 50 crore will be used for initial development. A detailed engineering report is being prepared on how the airports can be expanded. The airports will handle three flights a week in the initial year of operations, which the consortium hopes will go up to ten. Kingfisher Airlines and Deccan have evinced interest in operating from the new airports but the details will be worked out once the airports become operational. Commenting on the airport development model of the Government of India, S Krishna Kumar, Advisor to the Governor of Karnataka said, “The airport development model is still driven by the Government of India and is too land intensive. The excess land could be used for other commercial purposes too. Karnataka leads the way in developing alternative models for airport development.”
Source: www.travelbizmonitor.com;3.4.2008