June 2006 Archives

It seems remarkable that business types, a group of travellers with the most compelling reasons to stay connected, are railing against mobile phone use on board aircraft. But that is exactly what they are doing according to a suvery by the International Airline Passengers Association (IAPA).

The group, which represents frequent flyers, but is possibly best known for its Priority Pass feature that enables access to business lounges worldwide, said its research found that half of respondents said they would find it useful to make calls during a flight, but that many "were violently opposed to the development". Most comments were against the introduction of mobile phones onboard aircraft for social reasons. "Most members expressed concerns that they would not be able to escape from the sound of phones ringing and other passengers chatting," said IAPA.

The possible use of mobile phones ranked second behind the back of the seat being kicked as the most irritating thing they could imagine on a flight.

But the mobile revolution won't be stopped by frequent flyers. Don't forget the masses flying in coach for whom staying in touch is a pleasure as well as a necessity.

OK, it is possible there could be "quiet" cabins, but this will be such a simple technology introduction for passengers that it will become as commonplace as internet check-in and boarding the aircraft using your mobile phone with a barcode e-ticket displayed on the screen.

And, let's not forget that there is money to be earned for carriers as well. 

Stelios Haji-Ioannou, the self-styled "serial entreprenuer", better known in this industry as the founder of UK low-cost carrier easyJet, has an even broader smile than ever following the announcement in the Queen's birthday honours list that he is to receive a knighthood.

Check out Wikipedia, the online encylopedia, for a detailed description of what being a knight might mean for the Greek tycoon, but it does offer Stelios at the very least an opportunity for a funky photocall fully clad in the appropriate garb. Stelios, like fellow knight Sir Richard Branson, is never afraid of a bit of self-publicity. Here is Stelios doing his publicity stuff promoting his pizza delivery business.

Stelios was himself a little surprised to receive his gong, which has come because of his still short entreprenuerial rein. "It came as a surprise to me and I am not sure at this stage that I deserve an honour for services to entrepreneurship which is usually reserved for those with a lifetime of business achievement. I only started easyJet some 11 years ago!"

Never one to miss a chance to take a broadsword slash at their rivals, Ryanair has given Stelios their own knighthood treatment. With a "fly by knight" headline, the Irish low-cost carrier continues its reputation of delivering some of the weird and wackiest press missives, this time swiping at easyJet for being - in its view - something less of a low-fares airline than itself.

You might not automatically think of bmi as a logical partner for the UK's well-known Economist publishing house, but for chief executive Nigel Turner it makes perfect sense.
Several members of the Airline Business editorial team received a copy of The Economist Business Miscellany - a collaboration beween the carrier and the Economist - this week. The reason why bmi got involved in the heady world of publishing, according to Turner, is that the bmi marketing team spotted "the great synergies between our new brands", which they identified as being "smart, self-aware and a strong British brand that is recognised internationally".
Turner adds that bmi is using the collaboration as a means of  marking the "introduction of new enhancements to our services for business travellers".
And what better way of passing the time in flight once your BlackBerry is turned off and you have flicked through the in-flight magazine than dipping into your copy of the Business Miscellany. Between its covers you will find such gems as a list of America's biggest bankruptcies; famous burst bubbles; the lies people put on their CVs and some good advice on business etiquette around the world.
This is guaranteed to appeal to the trainspotter, or as Turner puts it, "registration spotter", in us all.

Norm Mineta, the longest serving US transportation secretary, resigned after a 5 1/2 year tenure that encompassed the 2001 attacks, the reshaping of aviation security and the airlines' financial crisis. Mineta, 74, one of three remaining members of President George W. Bush's original cabinet and the only Democrat in the group, served two presidents, taking the Bush post after serving as President Bill Clinton's commerce secretary starting in July 2000.

He spent 21 years, until 1995, in the House of Representatives, including several terms heading the aviation subcommittee and one term as chairman of its parent, the Public Works and Transportation Committee. His Southern California district included Silicon Valley and San Jose, where the airport is named after him. As a child, Mineta was forced into a wartime relocation camp for Japanese, although he is a Californian native. In the Wyoming camp, he acquired a life-long passion for baseball. A frequent jump-seat rider in airliner cockpits, Mineta was highly respected by both labour and management. But health problems, including a painful back condition and respiratory problems, plagued his last few years. Still, aides said he would keep working, and noted that he had run Lockheed Martin's intelligent vehicle highway-technology systems after leaving Congress. Mineta's letter of resignation to Bush, released 23 June and highlighting points in his tenure, is here: http://www.dot.gov/affairs/MinetaLetter.pdf

US Airways rolled out its new and improved heritage jet with an Airbus A319 in the livery of a Piedmont Aviation Pacemaker, as the North Carolina-based Piedmont called its jet planes until the old USAir took it over in 1989. To honour its predecessors, the new US Airways, also known as the old America West before their merger late last autumn, is doing up four 'buses in the paint schemes of predecessors such as PSA, Pacific Southwest Airlines, which USAir took over in 1987. The company actually rolled out the Piedmont plane in May at Charlotte, N.C., a former Piedmont hub, but rolled it back into the shops to get the blue of the cheat line just right. And wisely so: throughout the Carolinas, many still believe that USAir bought a better airline in Piedmont, and some old-timers will cite the carrier's practice of giving a passenger a full can of Coca-Cola instead of just pouring a glass full. If those were the good old days...

The recent deal among all the feudin' Texas good ole' boys (and gals) to settle their little ole' spat about Dallas Love Field has brought out the best in all: diplomacy from airport and airline figures, praise of the power of compromise from the mayors of both Fort Worth and Dallas (her honor's a lady), and this from Herb Kelleher, Southwest's chairman and former chief executive. "I have been involved in litigation, legislative struggles, and cuss fights over Love Field since 1972 - a period of 34 years. The fact that Southwest Airlines stands here today - stands here with Fort Worth, D/FW Airport, American Airlines and the City of Dallas - indicates, I believe, that there must be hope for world peace," he said.

Cussing aside, the pact represents a real compromise: D/FW will give up its efforts to lure Southwest out of its home base and into the hub, American won't fight loosening the limits, and local politicians will give up efforts to shut Love, owned by Dallas city and so not governed by the regional compact created for the huge American hub. This is a long way from what was becoming stubborn trench warfare between the two carriers and politicians in both cities. American had unleashed its enormous political power to restrict Love operations, a newly aggressive Southwest was fighting fiercely to overturn the Dallas Love Field limits and politicians on Capitol Hill were telling the North Texas folks to settle the deal in their own smoke-less chambers or face a mandate devised in the smoke free halls of Congress.

The compromise, as Herb says was a longtime coming. Back in the 1970s, Southwest had gone to court, suing for the right to offer service from Love Field, even though the airport was supposed to be shut down to allow D/FW to grow and develop. After Southwest's lawyers, incuding Kelleher, succeeded, Congress legislated restrictions at the behest of then-House Majority Leader Jim Wright, whose district included Fort Worth. The Wright amendment said flights to and from LUV could only go to or from the states that border Texas.

The compromise came about after a big change by American, which had supported the original law and has doggedly fought any changes to the Wright amendment, no matter how small. Until 1997, it always prevailed in squelching challenges. But American, busy with important tasks like staying out of bankruptcy, saw the writing on the walls. That's because in 1997, Congress added Alabama, Kansas, and Mississippi to the Wright perimeter in the so-called Shelby Amendment, named for the Alabama senator who headed the appropriations panel that year. Then late last year, lawmakers added Missouri and its two large cities, Kansas City and St. Louis, to the Wright perimeter when Missouri senator 'Kit' Bond took over the committee. American could ignore the small markets opened up by the 1997 change, but opening up the Missouri markets told American that the limits would disappear, either state by state, depending on rotating congressional-committee chairs, or in one fell swoop. 

American chief executive Gerard Arpey was as realistic as he was diplomatic in a statement afterwards: "Considering all the possible options, we believe this to be a pragmatic solution." The new deal eases the Wright restrictions over the next few years but limits Love activity by capping its capacity at 20 gates and commits Southwest to about $200 million in improvements at the airport. That is supposed to make Love's closest neighbours happy; the pact, which Congress is supposed to ratify, also ends restrictions on how southwest can market Love Field flights and on through checking of baggage, which is supposed to make flyers happy.  

About the oldest rule in the book is see - and be seen. The only change is that pilots now have highly sophisticated ways of seeing each other, as the FAA's recent advances in ADS-B show. In fact, the agency has finalised an agreement with a helicopter trade group to start using the Automatic Dependent Surveillance-Broadcast system in the Gulf of Mexico, a step the airlines enthusiastically endorse. We mention these advances because we're coming up on an important milestone in the history of US air safety and air-traffic technology. It is 50 years this month since a major midair collision between two packed airliners brought so much public focus on airline safety that Congress created a separate FAA and committed the government to the radar coverage that is still the basis for most air traffic control in the nation.

It is following a recent bitter experience that UK leisure carrier Thomas Cook is rolling out an education campaign to reduce accidental damage to aircraft when they are on the ground.

Ground accidents to aircraft are nothing new, and ramp safety has long been an issue addressed by industry bodies like IATA and ACI. But a few months ago Thomas Cook was ｣500,000 ($925,000) the worse off when contract engineering staff reversing an Airbus A330 at the UK's Manchester Airport accidentally hit an aircraft hangar.

"The rudder was damaged, putting the aircraft out of action," says the airline. "A sub-charter was eventually located, but only after 333 passengers had been delayed for 30 hours."

This incident has prompted the airline's ground handling and maintenance departments to produce a poster showing the costs of different accidental damage to, in this case, a Boeing 757-200. For example, this could be ｣266,655 for rudder damage or ｣100,000 for a nose cowl. An additional cost would be that of three flights operated by another carrier: a cool ｣180,000.

The posters are being displayed in the staff rooms of all Thomas Cook's ground handling suppliers who drive on airfields in the UK and overseas.

The actual costs of repairing damage, chartering an alternative aircraft and putting people up in a hotel and feeding them clearly soon escalates in the thousands of pounds, euros or dollars. But as Thomas Cook ruefully notes: "Damage to Thomas Cook reputation - priceless."

With the possibility of first- and business-class passengers boarding the double-deck Airbus A380 direct from their own lounge via airbridge to the upper deck, premium passengers can pay for the privilege of not having to mix with their economy-class fellow travellers at all.

This concept is being taken one step further by Airbus. Journalists visiting the mock-up of the A380 interior at its Toulouse facility were shown around a first-class cabin decked out with individual suites containing bed, reclining chair, table and in-flight entertainment.

When the door is closed a "Do not disturb" sign is illuminated and the occupant can spend the entire flight in isolation, interrupted only by deliveries of food and wine if desired.
Should they feel the need to socialise, however, there is a communal lounge area with a selection of armchairs and sofas and enough floorspace for a spot of ballroom dancing before dinner. 

No airline customer for the A380 has yet revealed details of configuration or cabin layout, despite much speculation about gyms, beauty salons and cafeterias. In view of the latest delay to the programme, they have got a while yet to study the interiors catalogues.

Giant advertising "spectaculars" are nothing new at main hubs across the globe. In the UK, for instance, huge suspended phones have been communicating their brand message at London Heathrow for ages.

But appropriately enough, the latest big new idea is giant 3D coloured light bulbs, which have been erected at the entrance to Heathrow's Central Terminal Area to advertise Xerox Colour.

As airport and travel advertising agency JCDecaux Airport notes the airport provides the perfect platform to target influential business decision makers. What turns you on about airport advertising, or is it merely a visual irritation you could do without? Send us details of your favourite or your worst airport ads.

Aviation journalists attending this week's Airbus technical press briefing in Toulouse eager to hear the truth behind the rumours buzzing around the A350 twinjet programme from the horse's mouth - or rather that of chief operating officer John Leahy - were left disappointed.

Any expectations of receiving the manufacturer's decision on whether to proceed with the existing programme, adapt it or even scrap it in favour of a completely new design - the A370? - were dashed as Leahy insisted: "There will be clarity on the A350 programme by next month's Farnborough air show."

He added: "It is a very interesting aircraft either way. When there is clarity on the A350, I think that we will see a backlog of orders coming out."

The great Airbus salesman continued: "The industry does not tend to place a lot of orders during a time of indecision, so we will end it soon."

Blaming anyone other than Airbus itself for the uncertainty - with the media and certain ungrateful A350 customers coming in for particular criticism - he said that no decision had been made, and that a number of possible outcomes were being evaluated before being presented to the Airbus board.

Leahy adds that he is expecting a surge of A350 orders once uncertainty over the new twinjet's future design ends.

He had been due to host lunch for the assembled media, and ideally give out a few more titbits, but had to make his excuses, citing an emergency dental appointment, possibly caused by excessive teeth grinding over the revelation of yet another delay to the tardy A380 programme.

There has been a lot of words printed about how carriers are extremely nervous about the pact between Global Distribution System (GDS) providers Sabre Travel Network and Amadeus on backing each other up with airline fares in the event of an airline pulling its content from one or the other.

US carriers like American and Northwest Airlines, to name but two, have expressed their concerns. They are worried it might affect their leverage in pricing and content negotiations with the GDS in attempts to wrestle down high distribution costs. It was an issue that came to prominence at the recent Airline Distribution event organised by Airline Business and corporate credit card provider UATP in Dublin in late March.

In a recent conference call with journalists, Airline Business asked Richard Adams, Sabre Travel Network's senior vice-president Europe what reaction he has had about the so-called insurance pact from his customer base. His reply was candid: "Honestly, I have had nobody call me about it. This seems to suggest there is not some serious reaction at all."

So, is this a storm in tea-cup about an eventuality that could never happen, or a more sinister collaboration between rivals that airlines have good reason to be concerned about? We will continue probing.

For so many in this business, it all began with an instant romance with flight, a lifelong affair with aircraft and the whole compelling game. Not so for Gregory Principato (pictured), even growing up near the flight paths of the Newark airport in New Jersey. For Greg, as most everyone in Washington calls him, the flight syndrome caught on when his work lawyering showed the tremendous importance of airports as engines of economic development and tools of trade. So now it's a full time affair for him as the head of the Airports Council International - North America (ACI-NA), the Washington affiliate of the global body.

Principato took over last summer when David Z Plavin, the longtime voice of airports on Capitol Hill and in the capital, decided to leave after some 15 years at the helm of the trade group. At the time, Greg was working for his long-time mentor, former Virginia governor Gerald L Baliles, in a Washington law firm; there, they had worked on international aviation, liberalisation, and on the thorny issue of international limits on aircraft emissions. Baliles, noted as a progressive governor in a deeply conservative state, had also headed a 1993 presidential commission on the airline industry.

This is all a long way from Russian studies, the course that Greg pursued in college as part of goal to enter the foreign or diplomatic service. "Well, that didn't work out, but working on international trade issues with the Governor (as Baliles was called even in his laweyring days) taught me a lot about the value of airports as economic hubs," he says, calling Baliles "the best boss and mentor I have ever had". Among the issues that he worked on while under Baliles' tutelage were an agreement between the then US Air and its Air Line Pilots Association and the US-Japan air services treaty. Together, they were instrumental in the transfer of the capital's two airports-Washington National and Dulles International  - from federal control to local management, a task that gave Greg exposure to the many parties and stakeholders and the questions of local pride and possession that colour most major airport negotiations. 

These issues gave Principato a diplomat's rather than a litigator's approach to conflict; he puts it this way: "you can resolve things when you focus not on difference but on the goals you want to achieve".  Of course, Principato is spared one of the most contentious issues in the airports world, the increasingly heated dispute over airport fees and charges and the airlines' complaint that they are paying for Taj Mahals and White Elephants. He says, "I think we just don't have the issue here in the states to the same degree that you've seen it in Europe." The issue that US airports do have is the looming question of how the federal government will rewrite the formula for paying for the US aviation and airport system. It must do so before September of next year, when the current law expires, and the battle has already begun over proposed fees for air-traffic services, a battle that has already set important US aviation groups apart in opposing camps. The airports have avoided joining one camp or another, and instead, says Principato, "We'll look at all the possible alternatives because the approach we have now just doesn't work. The old ticket-tax formula, in which FAA revenues go down as air fares go down, must be replaced. Our basic view is that everyone ought to come to the table with an open mind instead of set positions. We have to be prepared to set aside attitudes and take a fresh look."  Between now and then, security issues and questions will take up much of ACI-NA's time, and here, Greg sees his challenge as "reminding the security folks that the same solution doesn't work at all airports everywhere. Once you've seen one airport, you've seen one airport." For these thorny and long-term issues, the diplomat's touch will be the one that may well go farther than the litigator's tools.

When airline industry historians try and pinpoint the moment when the European low-cost sector finally came of age, they may well pick the time when British Prime Minister Tony Blair flew back from holiday in Italy with Ryanair, writes Colin Baker.
The Blair family flew back to London Stansted from Rome Ciampino last Saturday - something of a publicity coup for Ryanair, although the 25 minute delay for extra security checks will not have gone down so well with the carrier's operations team.
One slight difference from the usual Ryanair experience was that Blair was apparently met on the airstrip by a limousine, something of a step up from the Stansted Express train service that is the more usual route into central London.
It was not revealed how much the Blairs paid for their tickets, although it is likely to be substantially less than the  estimated ｣16,000 per trip cost of the Queen's BAe 146 that  has been used previously.
The Ryanair flight comes at a time when Blair is struggling in the opinion polls. It remains to be seen whether George Bush uses Southwest for his next trip down to his Texas ranch.

As an issue, it's more contentious than the merits of Airbus versus Boeing - just how should airports be named? Should they be named after the town they serve (like Dublin Airport) or can the name honour a local achiever (for example, John F Kennedy International airport). Other examples include Louis Armstrong New Orleans, Robin Hood Doncaster, John Lennon Liverpool and John Wayne Orange County.
Honouring a local instils pride and reflects community spirit. As the BBC says on its website: "Airports are the front door of the communities in which they are located, so it makes sense to ... highlight the greatest local achievers."
But while this might appeal to residents, naming an airport after a local is potentially meaningless to the rest of us.
The UK Civil Aviation Authority is the first regulator to express its view. In a recent statement it said: "It is important for flight planning purposes, including international flights, that the aerodrome name is consistently recognisable, relevant, unambiguous and promulgated accordingly." Perhaps things have gone a little too far.
Another aspect of this debate has been thrown into the spotlight in the UK as Belfast City airport has just been renamed George Best Belfast City Airport after Northern Ireland's most famous footballer. Best was known as a footballing genius, but he was equally renowned as a drunk. (He famously said "I spent a lot of my money on booze, birds and fast cars. The rest I just squandered.") Understandably, not everyone was thrilled with the decision to name the airport after him. And with flights coming in from places like Malaga and Nuremberg, the airport's provincial title belies its international status.
What do you think?

The world's largest gathering of airlines is happening on 4-6 June. Airline Business will be there with a team of journalists reporting live from the event.
If you can't be at this invite-only event, this is the next best thing. We'll be posting stories from Sunday 4 June and continuing as the event shifts into top gear.
The IATA AGM incorporates the World Air Transport Summit, and is recognised as the premier, industry-wide platform for the debate of critical issues at the highest level. Over 600 representatives from IATA's member airlines, industry associate partners and associations, manufacturers and suppliers will attend.

Airline Business online will feature:
-All the news from the AGM and World Air Transport Summit
-Interviews from airline chief executives
-IATA's forecast for the rest of the year
-Information on IATA's charging campaign
-Updates on IATA's liberalisation and deregulation
-Information on IATA's Simplifying the Business

A gaggle of Star Alliance member chief executives flew in to this weekend's IATA AGM in Paris from Tokyo, fresh from opening their latest joint airport operation. From Friday 2 June, the new home at Narita Airport for 10 Star carriers will be the south wing of Terminal 1. The alliance says the carriers will share the biggest dedicated Star-branded terminal in Asia.
Star carriers Air Canada, ANA, Asiana Airlines, Austrian, Lufthansa, Scandinavian Airlines, Singapore Airlines, Swiss, Thai and United have all been co-located in the south wing of Narita's Terminal 1.
Jaan Albrecht, Star Alliance chief executive, said: "Completing the co-location here in Narita is a milestone in our worldwide move-under-one-roof strategy. We now look forward to offering our customers a top-notch facility at what is one of our major hubs in northeast Asia."
More than 120 self-service units have been installed, where Star Alliance members can check-in automatically. Other efficiencies include significant cuts to connection times. For international flights, minimum connection times can be reduced from 110 minutes to 45 minutes, and for international-domestic flights from 110 minutes to 75 minutes.
Star Alliance currently has ongoing co-location projects in Bangkok, London Heathrow, Los Angeles, Madrid, Miami and Paris.

View our live coverage of IATA's 62nd annual general meeting from 4 to 6 June.