Since the middle of 2008, international tourism growth has slowed down on account of rising oil prices and the weakening global economy along with failing consumer confidence in the last few months, according to the latest United Nations World Tourism Organization (UNWTO) World Tourism Barometer. But on the whole, growth projections for 2008 remain at 2% on account of the strong performance in the first five months of the year when international tourist arrivals worldwide averaged 5.7%. Read the rest of the article…
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Not since 2003 SARS scare has global air traffic dropped at such an alarming rate, says Giovanni Bisignani, director general and CEO of the International Air Transport Association (IATA). In September, passenger traffic fell by 2.9% and cargo traffic declined by 7.7% as compared to the same period of the previous year. Bisignani adds that even the drop in oil prices to half of the July peak was not enough to counteract the slump in passenger demand. Read the rest of the article…
India’s crowded airline sector has been struck with heavy losses as mounting global fuel prices have raised airfares that in turn have led to a decline in passenger numbers. In the fiscal year to March 2008, the Indian aviation sector posted a collective loss of USD 938 million. And for the current fiscal year, analysts expect losses in the Indian aviation sector to reach nearly USD 2 billion. Read the rest of the article…
Bookings are up for the Singapore-based budget carrier Tiger Airways in spite of the crisis plaguing today’s global economy today. According to Tiger Airways spokesman, Matthew Hobbs, the carrier has not seen a decline in the number of travelers mainly because people still need to travel by air and as such are looking for cheaper alternatives. Travelers want the best price and are opting for budget carriers in lieu of premium carriers as it would enable them to continue to travel by air, adds Hobbs. Read the rest of the article…
The worst is yet to come for the aviation industry as continuing global economic slowdown threatens to destroy travel demand. According to IATA Director General and CEO, Giovanni Bisignani, the state of the aviation industry remains grim as high oil prices and falling demand poisons profitability. Read the rest of the article…
Japan Airlines (JAL) and Air Nippon Airways (ANA), two of Japan’s largest airlines, plan to trim down their flight services in order to bring down operating costs as a consequence of rising fuel prices. JAL will close down 12 domestic and five international routes, at the same time, reduce frequencies on five other routes. ANA is expected to cut down services on 10 routes, which includes two international routes. The flight cuts are expected to generate savings of up to JPY 13 billion for JAL and about JPY 3 billion for ANA, annually. Read the rest of the article…
The economic slowdown is affecting travel demand according to the latest air traffic data from the Association of Asia Pacific Airlines (AAPA). For July 2008, AAPA member airlines carried 12.6 million international passengers, 0.6% less than the same period last year, although traffic measured in RPK (revenue passenger kilometers) increased slightly by 0.8%. Overall capacity, measured in ASK (available seat kilometers) continued to outdo demand rising 2.5% year-on-year. Read the rest of the article…
After a six year wait, the Ninoy Aquino International Airport Terminal 3 (NAIA-3) finally hosted its first international flights last August 1. This is a major step for NAIA-3 in becoming the premier gateway of the Philippines. The terminal initially opened for domestic commercial operations last July 22. Three domestic carriers namely Cebu Pacific, Philippine Airlines Express, and Air Philippines have moved their operations to terminal. Read the rest of the article…
New rules enforced by the European Union now provide for trouble-free air transport services for the disabled and elderly in EU airports. Starting July 26, elderly and disabled passengers will gain access to the same air transport services afforded other passengers flying to or from as well as passing in transit through airports in the European Union, at no extra cost. The new rules are intended to put a stop to discrimination and provide the disabled and elderly passengers the assistance they need when traveling, says Antonio Tajani, the European Commission Vice President responsible for transport. Read the rest of the article…
India’s online travel agents (OTAs) intend to charge their clients a Service Fee on sales in light of the looming zero commission policy to be adopted by domestic and international carriers starting October 1st. Big players in the Indian OTA industry like Arzoo.com, Cleartrip.com, Travelocity.com, and Yatra.com consider the implementation of a service fee model as the only feasible choice for them to gain from air bookings after October since the bulk of their revenue is from air bookings. Read the rest of the article…
In response to the intended scrapping of airline commissions starting October 1st, major Indian travel agencies warn they will stop selling domestic and international air tickets if a resolution to the intended zero-commission policy was not ironed out at the scheduled meeting of leading airlines and agents on July 24. The move to stop selling air tickets will affect air travelers that could face problems booking or canceling tickets through company-owned ticketing counters or through the internet, which is not a popular option for international travel. Read the rest of the article…
Finnair opened direct flights to Seoul from Helsinki last June, making it the only airline flying non-stop from the South Korean capital to Northern Europe. The route flies five times a week aboard the new Airbus A340-300E long-haul aircraft on Finnair’s fleet. Flight time is 8 hours and 55 minutes from the Finnish capital and 9 hours 50 minutes from Seoul. Read the rest of the article…
Finnair will be increasing its connections between Asia and Europe for the 2008-2009 winter season, as it adjusts its Asia flight schedules providing additional flights between the two continents. In doing so, the Finnish carrier hopes to increase passenger sales and load factors to meet the growing pressure caused by fuel price hikes. Read the rest of the article…
The second package of legislation for a Single European Sky (SES II), intended to improve safety, cut costs, and reduce delays, has been adopted by the European Commission. This translates to lower fuel consumption saving airlines up to 16 million tons of CO2 emissions at the same time cut their annual cost by two or three billion Euros. The total reorganization of the European Air Traffic Management system will be instrumental in managing the expected doubling of air traffic by 2020. Read the rest of the article…
The completion of air service talks between India and Germany raises the number of weekly flights to 69 from 50. Consequently, the agreement allows Lufthansa to raise flight frequencies to both Mumbai and Kolkata. From Mumbai, the German carrier will launch daily connections to Munich, which currently flies only three times a week. Daily flights from Kolkata, from the existing five times a week connection, will also take place. Read the rest of the article…
Not everyone is ready to commit time to this yet,” says Pacific Asia Travel Association (PATA) president Peter de Jong, referring to the lack of Asian tourism industry players at the first PATA conference on climate change held in Bangkok last April. The event was dominated by westerners according to organizers and regional airlines were noticeably under-represented as invitations sent to Asian companies were met with disinterest. Read the rest of the article…
The Pacific Asia Travel Association (PATA) warns rising cost of fuel prices affecting airline operations worldwide would put global economies at risk. Airlines are an essential part of today’s society and also the lifeblood of global commerce and industry, according to PATA president and CEO Peter de Jong. Calling to mind the effects of the SARS outbreak five years ago when people stopped flying, de Jong noted that a drastic reduction in airline operations and the closure of important routes would surely put economies at risk. Read the rest of the article…
Two Chinese carriers, China Southern Airlines and China Eastern Airlines, intend to reduce their number of international flights within the region in light of the escalating cost of fuel. The cutback in the number of flights is only temporary, according to a spokesman for China Southern, adding that it was a better alternative to halting services permanently on these routes. Read the rest of the article…
Singapore Airlines will increase its A380 service on the Singapore-London route on Mondays, Wednesdays, Fridays, and Sundays. Starting July 16, customers flying on the SQ318 to London from Singapore and on the flight back, SQ321, will enjoy the highly acclaimed cabin products and flying experience of the world’s largest passenger aircraft. With the additional service, the number of Singapore Airlines’ flights between the two cities will step up from seven to eleven times a week. Read the rest of the article…
Beginning June 3, the ‘JL’ code of Japan Airlines (JAL) will be placed on non-stop international flights operated by Finnair between Helsinki and three Japanese cities namely Nagoya, Osaka, and Tokyo. The expansion of the bilateral code share agreement of the two carriers will connect Japan to 25 cities in Europe. Read the rest of the article…
The upcoming golden week will see a 5.6% decrease in passenger traffic for Japanese carriers particularly to long haul destinations owing to the poor alignment of national holidays mixed with the weekdays during this period. For this season, the number of passengers booked with the JAL Group and the ANA Group for the period between April 25th and May 6th totals 252,951 with an average load factor reaching 63.3%, indicating a drop of 2.2 percentage points. The number of available seats also went down by 2.2% to 399,868 compared to the same period last year. Read the rest of the article…
In the next five years, the total number of aircrafts in Asia Pacific will increase by 49%, net of disposals, according to the Center for Asia Pacific Aviation (CAPA) based on information contained in the latest Ascend Global Aircraft detailed global fleet forecast. Regional airlines are expected to take delivery of one new aircraft daily. By 2013, the report reveals a 35% increase of the wide body aircraft fleet to 1,585 units, a 51% increase in narrow bodies to 3,195 units, and a 113% increase of regional jets to 375 aircrafts owing largely to the anticipated growth in China. Read the rest of the article…
The US economic slowdown is affecting industry revenue according to the latest figures released by the International Air Transport Association (IATA). For February 2008, the average global passenger load factor (PLF) fell to 73.3%, the most significant drop in four years. Compared to the same period in 2007, the industry recorded a growth of 7.4% worldwide. According to Giovanni Bisignani, CEO of IATA, passenger demands taking into account adjustments for the impact of the leap year increased by 4% to 5%, indicates that though demand is still growing it is also slowing down. Read the rest of the article…
Raghu Menon recently assumed the post of Chairman and Managing Director of Air India succeeding V. Thulasidas who retired end of March. Mr. Menon will take on the responsibility of integrating Air India and Indian Airlines following its merger in 2007. At the same time, oversee the expansion and upgrade of the carrier’s fleet and product offers as well as its entry into the Star Alliance group of airlines. Read the rest of the article…
Hong Kong-based long haul budget carrier, Oasis Airline applied for the appointment of a provisional liquidator with the Hong Kong Court last April 9, 2008 after only 18 months in operation. Effective immediately, all flight schedules of the airline have been canceled until further notice leaving an indefinite number of passengers stranded in Hong Kong as well as in London and Vancouver. Read the rest of the article…
Adam Air ceased operations last March 18 under orders from the Indonesian government due to shortcomings in its operational, training, and maintenance procedures. Although the airline may reapply for permission to operate again within three months, Adam Suherman, the airlines President Director, says the decision to fly again would be up to the shareholders. However, Suherman believes the closure was for the best since staff morale had already declined on account of the company’s financial troubles. Read the rest of the article…
