03.31.2008 | 7:19 am | Flight Comparison
As news that British Airways have cancelled another 50 flights starts to filter through into the market place, you might be forgiven for thinking that tensions at T5 are easing. However, on the ground the reality is a little different with more and more frustrated passengers and unconfirmed reports that the luggage mountain has now reached a staggering 30,000 items!
It has to be said that while heralded as a new dawn for the industry, the opening of T5 has just been one problem after another. British Airways are rumoured to be planning to axe yet more flights in the days ahead in order that they can catch up on the lost luggage mountain they have at the airport. The cost to the company has been placed as high as £20 million but this is before the expected barrage of law suits both in the UK and US as well as claims for lost revenue from an array of other airlines around the world. The total cost to British Airways at the end of the day could be 10 times or more than the £20 million forecast currently doing the rounds. So what next?
Willie Walsh, the chief executive of British Airways, has come in for some major criticism over the last few days with many on the inside claiming that there were concerns about the new baggage handling system before it went live last week. It seems that while a final check run was completed, a number of issues were apparent but do not seem to have been rectified ahead of the full launch. The new terminal was actually built for British Airways, who dominate Heathrow, but it seems that there is still a long way to go before we see the best out of the new technology. Willie Walsh is under extreme pressure to rectify the situation as soon as possible, but you cannot simply make 30,000 lost bags disappear overnight!
03.28.2008 | 9:55 pm | Flight Comparison
While it has taken years to conclude and there have been many false dawns, the Open Skies agreement will come into play on 30th March when a number of restrictions will be lifted, ensure more choice for passengers flying between the EU and the US. The agreement will lift many restrictions regarding where flights can takeoff and land although there is still much work to be done in the future to ensure a level playing field for all concerned. So what next?
Even though the Open Skies agreement is a huge step forward, bearing in mind that the US authorities have actually given up some of their demands, the fact that EU airlines cannot take direct control of a domestic US airline is still something which irritates many in the EU. There is also the subject of long standing restrictions to the internal US market with the authorities determined to protect US based carriers as much as possible.
While many of the actions which the US has taken in the past are illegal in the world of international trade, this is not an issue which has really bothered the US authorities on a number of issues. There are many who actually applaud that fact that they have the nerve to protect their own markets when many in the EU are pushing for equal access for all – something which could see the US carriers dictating the EU market in due course.
It will be interesting to see what difference this first stage of the Open Skies agreement actual makes, although for many it is a big step only because of the fact that the US authorities have given up some of their deal breaking conditions. In principle consumers who travel between the EU and the US should have greater choice, but quite how long this will take to filter through remains to be seen.
03.27.2008 | 6:08 am | Flight Comparison
News of 5 hour delays, baggage going missing and flights being delayed – it could only be the opening day of Terminal 5!
Despite hopes of a new dawn in the UK aviation industry the opening of Terminal 5 (T5) has turned into something of the shambles which many had predicted. British Airways have been hardest hit with a number of their flights cancelled, passengers losing luggage and a whole host of other “teething” problems. It seems as though the new computer systems which had been expected to reduce the problems of the past have just not worked, yet. So what went wrong?
Firstly it would be at least encouraging to say that this was just first day issues, but it seems that we can expect similar delays and issues over the next week at least. Such is the extent of the misery which it is causing that the likes of British Airways have actually issued a hotline number for those travelling through T5, so that can check if their flight will actually leave!
The main problem with T5 is the fact that it is near 100% controlled by computers with very little human input – something which the Unions had flagged as a potential problem some time ago – meaning that if the computers do not work correctly there is the potential for massive problems. However, when you consider that delays at Heathrow’s T5 have a knock on affect not only to UK travel but worldwide travel, this has turned into a very costly day of “teething” problems. So what next?
While a whole number of passengers have been offered rebates and compensation, this is not really the answer in the short term with the likelihood that things will get very much worse before they get better. It seems that the transfer of large chunks of business to T5 means that passengers and the airlines will just need to work through the current problems and hope that they sort themselves out very soon.
All in all T5 has turned into something of a nightmare – and for a venture which many had hoped was the answer to many UK aviation problems!
03.26.2008 | 6:06 am | Flight Comparison
While the UK government have long had the aviation industry in their sights, piling up taxes, security charges and similar extra costs it seems that they may not be practicing what they preach!
A recent carbon footprint report for the UK government has highlighted the scandalous double standards which seem to be happening within the heart of the UK government. Despite tell us that flying is bad for the atmosphere and we should cut back on our air miles, it now appears that for the calendar year 2007 the various members of the government racked up 300 million air miles all at the expense of the tax payer!
When you consider that this is the equivalent of over 1,000 flights to the moon and a cost of over £50 million to the UK tax payer, the government have shot themselves in the foot some what. While the authorities have graciously decided to cancel the order of 2 private jets for use by cabinet ministers, this does not deflect from the news that we are being taxed more and more for air travel, while the politicians who produce these laws are flying more and more air miles at the expense of the UK tax payer.
This raises the age old argument regarding the fact that so called fashionable green taxes are no more than another income stream for the government and make no noticeable difference to life in the real world. The taxes are not invested directly into green issues, they are not returned to consumers in any other way and they are most certainly not being invested back into the aviation industry. Quite where this leaves the future policy of green taxes remains to be seen, but there is a ground swell of disbelief at what we are being told to do, and what the government are actually doing themselves.
03.25.2008 | 9:10 pm | Flight Comparison
After making massive waves in the industry with their insistence that all flights into and out of the US abide by new US laws regarding air marshals, it seems that things are not quite living up to expectations. A number of reports have been aired on prime time US news channels which claim that less than 1% of internal and international flights in the US have air marshals on board. Can this be true, or is it yet another anti-terrorism myth to appear in the US press?
As painful as it may be to admit that the system appears to be a hoax, the signs are that only a tiny fraction of US aircraft ever see an air marshal, let alone see them on a regular basis. The so called critical mission which was launched after the 9/11 attack seems to be just hot air with very little foundation and very little affect on the industry. But is there more to this story than meets the eye?
While we have heard the expected reply from the US government and aviation regulators, rubbishing the reports and suggesting that many air marshals travel under cover, even they have suggested their figures show air marshals present on just over 10% of air craft in the US. The reports claiming the 1% figure have come from experienced pilots and members of the security industry, and while they have obviously been “discredited” by the government the whole episode is a little alarming.
While the suggestion that air marshals travel under cover seems to make sense on the surface, is this really the case? Let us not forget that the whole point of air marshals was to deter terrorists, not to attack them while under cover. The US government had hoped that a frank and open presence aboard US flights would see terrorists look elsewhere, but perhaps after these revelations the US may once again be under threat?
03.24.2008 | 9:10 pm | Flight Comparison
While many in the airline industry seem to be introducing yet more and more flights to more and more different destinations, it seems that British Airways is about to break ranks a little by introducing an array of new services at the expense of some older services which are set to be suspended for the foreseeable future. So what is happening?
Even though British Airways have given no real reason for the changes, other than the fact that they need to make space for the new services, many are wondering what is behind the change. Is competition starting to bite? Is the rising cost of fuel making some flights uneconomical? Or are they really just making space for new services at the expense of older routes?
While the real answer is probably some where between the possible reason which we have highlighted above, the airline industry is going through a terrible time at the moment. As the matter seems set to get worse in the short to medium term British Airways are the first to announce the suspension of any flights to major areas for some time. The services which are being suspended include Heathrow to Detroit, Gatwick to Aberdeen, Nice, Prague and Reykjavik and London City airport to Milan Malpensa.
Taking their place with be flights from Gatwick to Alicante, Antalya, Faro, Genoa, Gibraltar, Ibiza, Malaga, Malta, Palma, Paphos, Poznan and Tunis and there are also plans to increase British Airways flights to the US, Amsterdam, Barcelona, Nice and Warsaw. While there is no doubt that the news flights will prove to be very popular, it seems that some areas of the world may suffer from reduced flights if more of the majors follow suit.
It seems that for once, the airline industry is looking to be proactive rather than reactive – a nice change!
03.21.2008 | 9:26 pm | Flight Comparison
While it seems that each day brings news of a new airport or cabin crew strike, there are real concerns that these numbers are set to increase in the short to medium term as the worldwide economy goes into a steep fall. So whose fault is it? Who really is to blame?
The problem with the airline industry is that while many do very well in the good times, very few of them seem to pass a substantial percentage of this on to their staff in the form of wage rises. They may see bonuses, the may see new employment opportunities, but the long term outlook for their basic pay is not very good. While the argument that the airlines need to control costs has never been so valid, the Unions seem intent on ensuring that their members get what they feel they are worth and deserve. This has, and will continue to, lead to major disagreements and an increase in strike action.
On the positive side, while both parties are looking out for themselves they both realise that there are pros and cons for each of their arguments. The Unions only really have strike action as a way to force the airlines hand, and while this is often an action of last resort, it has become more and more common around the world over the last couple of years. This at a time when fuel prices are rising, credit has all but disappeared and the worldwide business class airline sector is under severe pressure
Unfortunately while many of the Unions feel forced into strike action as a gesture of intent, the airline companies also feel that they have to show a firm hand when dealing with costs. It is difficult to see how we can expect anything but an increase in strike action over the next 12 to 24 months, but then again we can probably expect to see less airlines operating as and when we pull out of this worldwide recession.
03.20.2008 | 9:31 pm | Flight Comparison
In a move which has long been expected and long been needed for many, the airline Emirates has announced that the first commercial mobile phone call was made, in-flight, on a recent journey between Dubai and Casablanca. While it may not seem like a big move, it has literally changed the landscape for the industry overnight. Now that Emirates have done it, the rest will be under pressure to follow – but can they afford it?
It is no surprise to find that the equipment needed to ensure that the mobile phone signals do not interfere with the planes electrics is not cheap. It is basically a shield which ensures that the mobile phone signals do not get anywhere near the planes sensitive electronic systems. Many have commented that it is no real surprise that Emirates have been the first to use such a system in commercial flights, bearing in mind the often high net worth of their customers. However, many are unsure as to whether the rest can actually afford to follow?
While there is potential to make money from mobile phones used in-flight, this will not necessarily be a major money spinner for the airlines, more of something to keep their customers happy. Many business people had complained that while flying there were effectively “out of the loop”, not contactable and often unaware of what was happening on the ground. The mobile phone will also bring the 24 hour office to light, something which not all passengers will appreciate!
On a safety note, it is possible to switch off in-flight mobile signals and chose to end the service say for example on night flights where passengers may be sleeping. Passengers have also been asked to keep their handset on silent when using voice calls and text messaging. It will be interesting to see how quickly this change moves around the industry, bearing in mind pricing pressure and the possible affect on travel numbers if as expected the world moves into recession.
03.19.2008 | 10:47 pm | Flight Comparison
As we hear news that the Dutch government have been granted court approval to introduce Green Taxes to the Dutch airline industry, its seems as though many European counterparts are taking the same route as the UK government. Quite how they can justify these taxes remains to be seen, with each and every government throughout the EU readily encouraging the budget airlines to take on the majors and drive prices down.
Now that competition is intense and more and more people are travelling by airline, we are all hit by taxes which are set to substantially increase the cost of many flights. Where does all of this “Green Tax” income go? How is it spent?
It seems that the more so called green taxes that the authorities impose, the less we actually know about where it is being spent. Is it a coincidence that the UK authorities and their Euro counterparts are entering into a recession, with many of them experiencing balance of payment problems? It seems that each and every time we see a downturn in the economy we see the introduction of yet more green taxes. However, the question now is “Can the industry take these tax increases?”
The problem for the consumer is that while these new taxes are being introduced to penalise airlines that impact upon the environment, and especially the ones who fly half empty planes, it is the consumer who pays in the end. It may not happen straight away, it may not even be announced, but slowly we will see the introduction of certain flight levies which will affectively cover the extra cost that the airlines are being forced to take on.
The airline industry is set for a great amount of turbulence over the coming months with economies around the world showing signs of strain. Heaping more taxes onto an industry which is trying to reduce costs is not the answer, but try telling that to the EU or individual governments throughout Europe who see the industry as their own special honey pot!
03.18.2008 | 3:51 pm | Flight Comparison
Even though Moscow is probably one of the last destinations on your list of places to visits, the country and especially Moscow have so much to offer. The country itself has been through revolution, devolution, fought wars on many fronts yet still manages to attract significant business interest from the West. So what does Moscow in particular have to offer the tourism industry?
Situated in the western half of Russia, not a million miles from the border with Europe, Moscow has excellent transport links, a growing business community and a culture which has been made up from hundreds of years of struggle. The history itself can be traced back to the eleven hundreds, and this most famous of cities has 10 million inhabitants living in an area one thousand kilometres square. It may surprise many to know that Moscow has a vibrant nightlife and offers an excellent shopping experience to those who want to venture out into the cold!
Religion, art and sport are all very prominent in the Russian way of life and in no other city are these elements best portrayed than Moscow. The mix of cultures is also something to behold with beautiful older and younger buildings prominent in every area of the city. It is possible to track the progression of the Russian culture by the different architectural styles, many of which are hundreds of years old.
The country also has one of the most diverse of ethnic mixes in the region, again another fact which may surprise many who think they know Russia. Due in the main to the extensive business interests of some major western companies there are regular scheduled flights to Moscow and other prominent cities in the country.
You may be surprised at the difference between your perception of Moscow and the reality, something which is often missed in the much publicised political battles between the East and the West.
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