11.7.2007 | 8:53 pm | Flight Comparison
While it is hardly a surprise, and you can hardly blame them, it looks as though we may see a number of fuel surcharges added to a whole array of flights over the coming weeks and months. As the price of crude oil reached $98 a barrel, United Airlines have been the first to come out and announce a fuel surcharge on the majority of domestic flights. It looks as though ticket prices will be increased by between $5 and $10 for the foreseeable future. But why now?
When you consider that crude oil has nearly doubled in 9 months and risen nearly 5 fold in just 6 years, they do have a strong case for the move. For United Airlines alone, a $1 rise in the price of oil increases their costs by some $65m a year – but for the industry the cost must translate into billions of dollars!
While many of the airlines have tried to push through ticket price rises in recent times, competition in the sector has held back much of their scope for legitimate price increases. It seems that the recent rise of crude oil, when all of the “experts” were predicting a fall, has been the last straw for some airlines. A move by an airline with the stature and presence of United Airlines has paved the way for many more airlines to come out and introduce their own fuel surcharges.
The airlines have been stuck in the middle of a two way pull for some time, with prices under ever increasing pressure due to competition in the industry, and base costs rising for some time – with the price of fuel the main concern. It will be interesting to see the impact which the oil rise has on the industry, as any prolonged period of high oil prices may well put some of the smaller and even major airlines under sever financial pressure.
11.6.2007 | 7:04 am | Flight Comparison
Have you ever forgotten something at the airport? Have you ever checked the lost luggage department?
A report out today has confirmed what many had already suspected – UK airports have become a magnet for lost property! The report claims that on average a massive 8,500 mobile devices are left behind by passengers boarding flights. We are not just talking about cheap mobile phones, we are also talking about top of the range laptops with confidential information, we are talking about top of the range handheld devices – we are talking about goods with a value in excess of £1 million a year being left behind.
While there is the value of the goods themselves, we also need to consider the value of the information held by the many laptops left behind. As the majority of laptops are of a corporate nature, we may well be talking about highly price sensitive information, not to mention the number of MPs who seem to mislay their devices. But surely these items are recoverable?
While many of the goods do find their way back to the lost luggage departments, we are living in an increasingly more cautious environment with terrorism especially high on the agenda at airports worldwide. Security scares are becoming more and more common and the effects of leaving items behind can be there for all to see – not to mention the increased cost this incurs for the airport owners.
Many people also seem to forget the direct cost to themselves with insurance claims on the up, insurance premiums on the up and ID fraud also rising. So next time you visit the airport, don’t be in such a rush to catch that flight. Check you have all of your belongings with you, as you never know who may be watching – ready to pounce when you leave your laptop behind!
11.5.2007 | 9:11 pm | Flight Comparison
While it is uncertain why it has never been attempted before, it has been announced that Swiss researchers are very close to actually launching the first proto-type solar powered jet plane. Even though a commercially viable plane is still someway off, this is the culmination of two years of testing, computer mock ups and research. Named Solar Impulse, the project is sponsored by a Swiss Research company, but involves input from at least 6 countries from around the world. If viable it may mark a major shift in the industry, but will it work?
Research has shown that the idea is most defiantly viable and practical although the first manned flight, planned in 2009, should clarify years of hard work for all of those involved., The proto-type will have a reduced 61m wing span and weigh only 2 tonnes, against 580 tonnes for a traditional commercial airliner – a vast difference! Not only will this reduce the manufacturing time but if it works as planned, there will be a massive increase in fuel efficiency – something which is fundamental to the success of the industry.
The project has cost just $101 million to finance, which in terms of today expensive research projects is relatively small – even more insignificant when you consider the possible savings. While the night flight in 2009 will have only one passenger on board – the pilot – it will be a lengthy 36 hour flight to fully test the technology and the ideas behind it. The main problem seems to have been storing enough solar power in the plane’s batteries for use in night flights, although the researchers do seem to have fund a way around this.
It will be interesting to see if the project goes to plan, bearing in mind the recent reputation of the industry, and whether it can actually deliver the savings and efficiency which the researchers have promised. If successful, this will only be the start of a whole new industry!
11.2.2007 | 5:22 am | Flight Comparison
In a move which is sure to increase the number of Irish tourists overseas, EasyJet have introduced direct flights from Belfast Airport to Venice and Barcelona. The move has cured the headache of travelling to UK connection airports for flights to these two destinations, and is sure to be well received. Interestingly it also opens up the emerald isles to other areas of the world, and is sure to increase visitor numbers to Ireland.
While many in the industry have long criticised the budget airlines for their pricing policies and potential effects on the environment, there is no doubt that even the prospect of direct flights by one of the many airlines in operation can have a major impact upon a particular destination. We have even seen some property investors adding budget airline connections as a major part of their consideration when looking at buying property around the world. But are they now running out of new destinations?
While they do seem to cover the majority of the more popular tourist destinations around the world, there are still many more areas of the world which remain untouched. We have seen the budget airlines arranging their own agreements with a whole host of UK and overseas provincial airports, something which is taking away numbers from some of the larger airports in the UK.
The growth in the budget airline industry in the UK has spawned a whole host of similar ventures in other parts of the world, with the Far East a particular hotspot. UK operators have not been slow to realise this potential with many using their experience and know how to become involved in a whole host of joint ventures and cross marketing arrangements.
As competition becomes every more intense, it is the consumer who is set to benefit most, with more and more destinations due to come on line over the months and years ahead.
11.1.2007 | 10:27 pm | Flight Comparison
Where there is a money spinning PR stunt to be had, you can guarantee that Virgin Airlines supremo Richard Branson will not be far behind. This time he has played a master stroke by arranging a deal to fly the Spice Girls around the world as they begin the world comeback tour next month. Everywhere you see the Spice Girls there is every chance than Branson will not be too far behind. This takes the company full circle after originaly signing them in their early years, but will they be as successful?
As anyone who knows Richard Branson will confirm, the man does not back losers, he only backs dead certs no matter how they get there in the end. Recently he was involved in the deal with US regulators which effective stitched up British Airways who had agreed certain pricing issues with their main competitor, Virgin, some years ago. In exchange for giving information on the terms, times and places, Virgin were exonerated and walked away unscathed, even though they were as much to blame for the price fixing scandal as British Airways were.
With regards to the Spice Girls sponsorship arrangement, there are many in the market who believe that Virgin will use the mass of publicity to launch either another venture or another passenger route. Very rarely has Richard Branson missed out on an opportunity to further promote himself and his company, and it seems very unlikely that he will start now!
When you look back at the colourful life of Richard Branson you have to admire what he has done, where he has been and how much money he has made for himself. He set up a new airline, Virgin, and took on the might of British Airways even though many “experts” advised against this at the time. Whether you love him or hate him, you have to admit that the man gets results!
