1.Amadeus opens the hotel books
Amadeus has signed up 60 hotel brands around the world to Amadeus Worldwide Commission Manager (WCM) and yesterday launched the solution in France following a successful international pilot. More than 20.000 hotel properties in Amadeus have subscribed to the initiative and the solution is available to all 4,400 travel agencies in France. "Our travel agencies are telling us that hotel commissions are a key source of revenue for them and at the same time administratively challenging to keep track of," says Jean De Durfort, head of hotel distribution, Amadeus. "We have launched WCM to give our agencies visibility on the status of the commission owed to them across the range of hotels they work with from just one tool. "Participating hotels benefit from the transparency they are willing to provide and that becomes a sales argument for their hotel and travel agencies benefit from having a single view of the commissions owed to them.” Amadeus Worldwide Commission Manager (WCM) allows travel agencies to track hotel commissions by offering travel agents a web-based single point of information on hotel bookings and the status of commission payments. WCM tracks the progress of payments resulting from fulfilled active hotel reservations, regardless of the commission payment system used by each hotel. The tool has no technological set-up costs, maintenance or fees and provides a reliable overview of the commission payment process for all hotels on Amadeus’ GDS. Hotels that have already signed up include hotel.de, Supranational, Sol Melía and all brands of the Accor group. Said Catherine Agier, director, international sales, Accor.'We chose to be part of the Amadeus Worldwide Commission Manager program to really show the travel agents that we are willing to be completely transparent and communicate openly in terms of commission payment. This has enabled us to build a positive image of our hotel chain."
Source: Economic Times;24.4.2008

2.Macau cracks down on gaming bonanza
Beijing has moved to curb the expansion of gaming in Macau, where casino revenue has soared this year.  Under pressure from the mainland government, Macau is to suspend the issuing of licences for new casinos and put a block on the physical expansion of the gambling industry. Macau chief executive Edmund Ho said new slot machines and gambling tables would not be allowed until further notice. Ho said he had been directed by Beijing to stabilize the city's burgeoning economic growth since the opening of the gambling industry in 2001. "It is a way to ensure the long lasting peace and stability of Macau," he said. The government has issued three licences and three sub-licences to six local and foreign companies to operate 29 casinos in the city. No licensed casino will be allowed to increase the number of gaming tables while the government works on new regulations to limit the impact of gaming on Macau. The new orders will also limit the amount of commission received by casino agents – the VIP room operators who bring in the lucrative high rollers.
Source: The Standard, Hong Kong, 24.4.2008

3.Virgin inks deal for Ryder Cup Team
Virgin Atlantic is to be the Official Airline of the 2008 European Ryder Cup Team. Special dispensation has been granted for the Team to fly direct from London Heathrow to Louisville International Airport onboard a Virgin Atlantic Airbus A340-600 for The 2008 Ryder Cup at Valhalla Golf Club, Louisville, Kentucky, USA from 19 to 21 September 2008. European Captain Nick Faldo and his 12 man team will fly out on Monday 15 September to defend the Ryder Cup before flying back the following Monday 22 September. Joining the Team onboard the Virgin Atlantic flight will be their wives and girlfriends, Ryder Cup partners, sponsors and suppliers, the official party, the respective Boards of the European Tour, the Professional Golfers Association (PGA) and VIP guests. Virgin Atlantic was the Official Airline Sponsor of the European Ryder Cup Team’s last visit to America in 2004 for their record breaking winning score of 18½ - 9½ at Oakland Hills County Club in Michigan, USA. Sir Richard Branson, President, Virgin Atlantic, said: “It is a great honour for us to be carrying Nick Faldo and his teammates to Louisville. This is the second time that Virgin Atlantic has been chosen to carry the team and the Ryder Cup, and we are thrilled that Europe’s top golfers have selected us again. I’m sure they can do Europe proud and win again.” Richard Hills, Ryder Cup Director, said: “We are delighted that one of the world’s biggest brands will once again be part of one of the world’s biggest sporting events. The Team and official party will all benefit from Virgin Atlantic’s excellent service. “Virgin Atlantic will once again benefit from being associated with the Ryder Cup and along with our other partners, sponsors and suppliers, will play an active part in making the 2008 Ryder Cup another huge success for the European Team.” The European Team will enjoy Virgin Atlantic’s award-winning Upper Class Suite, which includes the longest fully-flat bed in business class, and in-flight entertainment facilities. The Team will also speed through the airline’s new Upper Class Wing at Heathrow’s Terminal 3, with its private security channel, before being pampered in the Virgin Atlantic Clubhouse. Before take-off, the players can enjoy a massage or haircut in the Cowshed Salon, or play pool and enjoy the Deli bar. Virgin Atlantic will carry the European Team on an Airbus A340-600 with 45 Upper Class Suites, 38 Premium Economy seats and 225 Economy seats.
Source: Business Standard; 24.4.2008

4.IATA seeks rethink on UK Aviation Duty
The International Air Transport Association has called on the U.K. Government to abandon its proposal Aviation Duty. The call came in the Association’s response to the U.K. Government’s request for consultation. The proposed Aviation Duty is nothing more than a blunt revenue instrument. It has no credibility as a driver of improved environmental performance. And the revenue will not be used to support environmental objectives,” said Giovanni Bisignani, IATA’s Director General and CEO in a letter to Chancellor Alistair Darling. “The proposal fails to satisfy the basic principles advanced by the government to justify it,” said Giovanni Bisignani. “It is incompatible with U.K. obligations under international law. It will not improve environmental performance. It ignores that air transport already completely covers its environmental costs. It will lead to serious discriminatory economic impacts and market distortions. It will result in double taxation and reduce the U.K.’s competitive stance. It is neither simple, nor transparent, nor coherent. In short, as an approach, it could not be more wrong. The government should focus on other industries that, unlike aviation, are not contributing their fair share,” said Bisignani. Air Passenger Duty was doubled in 2007 and now collects GBP 2.0 billion pounds annually. From 1 November 2009, the proposed Aviation Duty would replace this with a GBP 2.5 billion yearly collection. By 2011/12 this would grow to GBP 3.5 billion. Additionally, the U.K. plans to join the local EU emissions trading scheme from 2012 with an additional cost burden. The air transport industry has a four-pillar strategy to address climate change based on technology investment, effective aircraft operations, efficient infrastructure and positive economic measures—including an effective emissions trading scheme that is fair and global. “I want to know where the money will go. How many trees will the Chancellor be planting with GBP 2.5 billion? Padding the U.K. budget at the expense of holiday-makers, business travelers or exporters is not sound environmental policy. Instead of inventing new taxes with convoluted calculation methods, governments must support investment in basic green technology research, assist air navigation service providers to straighten out routes and allow airlines to operate as fuel efficiently as possible. And when it comes to economic measures, let’s focus on a global emissions trading scheme,” said Bisignani.
Source: Financial Times;London;23.4.2008

5.easyJet launches new route
easyJet has welcomed passengers onboard its inaugural flight from Edinburgh to Nice, giving the region’s travelers an even greater choice of destinations from their local airport. The three times weekly (Sat, Tue & Thur) service to the South of France, has fares from £25.99 one way (£47.66 return). The airline expects to carry 20,000 passengers on the route in the next 12 months. David Osborne, UK General Manager Commercial said: “Another popular destination on the easyJet network has landed in Scotland. This direct route to Nice has already proven a popular choice and will offer Scots the opportunity to experience the South of France. Forward bookings for the route have been very strong which further proves the demand for direct low-fare flights from Edinburgh to the Sun."
Source: Financial Times;London;23.4.2008 

6.Ryanair questions Alitalia bail out
Ryanair has called on the European Commission to stop a further €300m unlawful state aid for Alitalia.Ryanair believes that Alitalia has already received over €5bn in unlawful state aid, but that the European Commission has turned a blind eye and is doing nothing. Ryanair suggests that without such illegal state aid, Alitalia which loses almost €1m a day would have gone bankrupt years ago. Speaking today, Ryanair’s Head of Legal and Regulatory Affairs, Jim Callaghan said: "Alitalia’s latest €300m bailout makes a mockery of EU State Aid rules. Propping up an inefficient national airline, which would have gone bankrupt long ago is simply illegal. Continued unlawful subsidies are allowing Alitalia to ignore its debts and rack up losses with abandon. "The European Commission’s repeated failure to enforce its own State Aid rules in the case of Alitalia provides more evidence that it applies one set of rules for rule breaking flag carrier airlines but another discriminatory set of rules for Ryanair. The Commission has still failed to take any action on Ryanair’s 3 year old state aid complaints about Alitalia, Air France, Lufthansa, Olympic and Volare, however it is pursuing 7 baseless investigations about Ryanair’s open pro competitive deals at tiny regional European airports. "We are again today, calling on the Commission to stop ignoring this state aid scandal and to start applying its own state aid and competition rules fairly".
Source: Financial Times;London;23.4.2008

7.Asia Pacific airlines find blue sky among the clouds
Preliminary financial performance figures for 2007 released by the Association of Asia Pacific Airlines showed that leading Asia Pacific airlines had a successful year. Combined revenues reached US$103 billion, 11 per cent higher than the US$93 billion reported in 2006. International passenger traffic volumes set a new record, growing by 4.2 per cent, and the passenger load factor rose to a record high of 77.1 per cent. Overall, AAPA member airlines reported aggregate profits of US$ 5.2 billion, representing a five per cent net margin, a marked improvement on the three per cent net margin recorded in 2006. Carriers benefited from prudent capacity management and tight cost controls, despite the impact of high oil prices which resulted in a fuel bill of US$27 billion, representing almost 30 per cent of total airline costs. Commenting on the results, Andrew Herdman, AAPA’s director general said, “Asia Pacific airlines delivered some excellent results in 2007, with strong regional economies boosting demand for both business and leisure travel. “Tight cost controls and prudent capacity management led to improved margins, despite the impact of persistently high oil prices.” He added: “After a very successful 2007, Asia Pacific airlines are well placed to meet both the opportunities and challenges which lie ahead. “So far this year, we’re still seeing steady growth in both passenger and cargo demand, but there is a growing sense of unease about the likely impact of slowing global economic growth coupled with cripplingly high oil prices. "Airlines are therefore bracing themselves for some turbulence in the remainder of the year.”
Source: Business Standard;22.4.2008

8. Pvt airlines may get nod for Dubai route this week
The lucrative Dubai route could be opened for Jet Airways, its subsidiary JetLite and Air Deccan by the end of the week. Official sources told that the request of these airlines to fly to Dubai will be taken up at the air services talks between the Government’s of Dubai and India scheduled to be held here later this week. At the moment, Air India is the only carrier which is allowed to fly to Dubai from India. While Jet Airways has sought permission to operate 56 weekly services including a daily service from Delhi, Mumbai and Chennai by July this year, it has also sought permission to increase the frequency of the Mumbai flight to a double daily service from October next year. It also plans to start a daily flight from Thiruvananthapuram, Kochi and Bangalore from October next year. The low cost airline, Air Deccan, which plans to operate 70 weekly flights to Dubai, has sought permission to launch a twice-a-day flight from Mumbai from summer this year. In addition, the airline plans to operate a daily service from Delhi, Bangalore, Hyderabad and Kochi. The airline also plans to launch a daily flight from Chennai Goa, Mangalore, Pune during the winter schedule 2008 which traditionally runs from October till the end of March the following year. JetLite has sought permission to operate 28 weekly flights including a daily from Jaipur, Amritsar, Hyderabad and Nagpur. At the moment, Jet Airways is the only Indian private sector airline that has received Government permission to operate flights to the East Asia and operates regular services to Abu Dhabi, Bahrain, Doha, Kuwait and Muscat.
Source: Business Line;21.4.2008

9. British Airways to commence operations from GMR Hyderabad International Airport
British Airways will commence its operations from the GMR Hyderabad International Airport on October 28, 2008 with five flights a week. The flights will operate on Tuesday, Wednesday, Thursday, Saturday and Sunday. The BA 276 flight will depart from Hyderabad at 07:15 and arrive at London Heathrow at 13:00. The BA 277 will depart London Heathrow at 13:30 and arrive at Hyderabad the following morning at 04:25. The Boeing 777 aircraft with an overall seating capacity of 270 will offer economy cabin, ‘World Traveller;’ premier economy cabin, ‘World Traveller Plus’ and business class cabin, ‘Club World’. The new route will compliment the five routes that British Airways already services in India: Delhi, Mumbai, Bangalore, Chennai and Kolkata. With the addition of Hyderabad, British Airways will now fly from six Indian cities to London. It will further increase the network from Hyderabad in the coming months. “Introducing Hyderabad as the next destination in India is to re-emphasize our commitment to the Indian market. We are focusing on providing better facilities and a wider worldwide network to our customers from India,” informed an official from British Airways.
Source: www.travelbizmonitor.com;26.4.2008

10.bmi chairman puts heat on BAA
The majority of airlines at Heathrow are fed up with being treated as second class citizens after “being charged through the nose” for Terminal 5, said bmi group chairman Sir Michael Bishop in a speech to the Aviation Club in London. The 30-minute notice given of delays to the long-planned moves of airlines around the airport was the latest chapter in a sorry tale of reputational disaster for the world’s largest international airport, he said. And he warned BAA to redouble its efforts to ensure the same fate does not befall Heathrow East, the terminal being developed to replace Terminal 1 in time for the 2012 Olympics. “We don’t place any blame for sins of the past at the feet of Ferrovial, so recently charged with the management of Heathrow. Indeed in the case of Terminal 5, the die was firmly cast long before the Ferrovial acquisition. “But events now continue to cause huge reputational loss at Heathrow. And I urge BAA to re-priorities and redouble their efforts on the Heathrow East project and ensure its completion in time for the opening of the Olympics in 2012 with all the necessary functionality we require.” Sir Michael said that despite severe problems at the airport over the last few years, bmi’s strategy of developing its mid haul and long haul route networks, coupled with tight cost control, had helped the airline to develop a strong position. “Through our Blue Skies project, over the last four years £100m of costs have been taken out of the business. And whereas ten years ago our business was 100 per cent domestic and short haul European services, by last October more than 50 per cent of the routes flown by bmi mainline were to mid haul and long haul destinations. In 2008 almost 50 per cent of bmi mainline revenues will be earned from these routes. “Now we have a more balanced, higher yielding route network which is starting to make the most of our asset base at Heathrow.” Sir Michael also addressed the speculation surrounding bmi’s ownership, saying: “I can confidently say that bmi’s shareholders will not permit an event to arise through which the airline would become the subject of any opportunistic or under-valued approach. “Whether bmi remains independent and grows through acquisition or whether the shareholders decide another course, we will not be bounced into any particular direction by comments from other carriers or the media. “The future of the business will be determined with the best interests of bmi, its shareholders and staff being paramount.”
Source: Financial Express; 23.4.2008

Prepared by
Jennifer Kumar, BBA (NAU) Alumni
Skyline Business School
Hauz Khas Enclave, New Delhi 110 016
Tel: 2686 4848, 2652 4399
http://www.skylinecollege.com