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September 2009 Archives

World Low Cost Airlines Congress 09: Toilet idea goes down the pan

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Ancillary revenues has been one of the hot topics at the congress this year, with much discussion given to the respective opportunities through both unbundling and creating new streams.

Yet despite this, the much-written about Michael O'Leary tongue-in-cheek (we assume) suggestion that Ryanair was considering charging passengers to use toilets onboard - a concept universally dismissed by speakers during a session here in Barcelona - continued to take up air time, even if it was to say we should stop giving it air time (at this point I should apologise for my own contribution to a world already over-flowing with pun-laden headlines on the subject).

"Charging for the toilet is going too far," said easyJet founder and shareholder Stelios Haji-Ioannau. "You are captive. It is not like you have anywhere else to go"
 
"We continue talking about things that are not real," complained Vueling chief executive Alex Cruz. "This is the perfect time to find the next holy grail area [in ancillaries], without necessarily paying to use the toilet."

While headline grabbing - whether it be the outlandish suggestions of charging to use the toilets to today's reality of paying to check-in bags or to sit in particular seats - it is an ever-more important part of the business and not just for low-cost carriers.

And there was an interesting perspective on the whole subject from Flybe chief commercial officer Mike Rutter. "I do think as an industry we need to find the right balance and if we don't we will find ourselves overcome in regulation," he warns. "It's important we have self control."

World Low Cost Airline Congress 09: Spring Airlines - still standing

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Remember Spring Airlines. The Chinese low-cost carrier hit the headlines earlier this year when it put forward a proposal for standing-only seats on aircraft, a concept left-field enough to land on Michael O'Leary's radar for publicity ideas.

Well Spring were in Barcelona for the Congress, insist the idea is feasible and are calling for the low-cost carrier industry to come together to look further into its development.

Spring Airlines spokesman Zhang Wuan told delegates the idea was aimed at tapping into the roughly 70% of the Chinese population - which they term the 'grass roots people' - who will never be able to afford to fly. He talks of an aircraft concept using the half-standing concept - which Spring dubs the X322 - which could take capacity from 180 on its existing A320s to 258 seats under the new aircraft concept.

 "This caused tremendous debate after our proposal," says Waun, pointing to the global coverage the concept provoked, indeed citing amongst others comments from Flightglobal's very own IFE and interiors guru Runway Girl.

"A number of people have shown their support for half-standing," adds Wuan, pointing for example to a survey carried out in China. Indeed he cited one respondent as saying, "as long as it is cheap enough, I will buy half-standing tickets, even if I have to sit on my luggage".

Spring says safety and meeting regulatory requirements are key to the project, and acknowledges the challenges to the concept. But it believes it is feasible.

"Despite the feasible idea and technology, the difficulty lies in industrialisation," says Waun. "A few orders from one airline obviously is not able to attract aircraft manufacturers to design a new aircraft type. But if all low-cost airlines made an alliance and place a large order, the new aircraft type is no longer just a dream on paper." And he urges the low-cost airline industry to come together to further research the project.

Spring Zhang Xiuzhi.JPGSpring's half-standing concept is the bit that attracts the headlines, but the story of Spring is already interesting enough as a private, low-cost carrier trying to carve a niche in the Chinese market. Their chief executive Zhang Xiuzhi, who also spoke during the Congress, attributed developing their own distribution system as being key to their success. "It was the first time an airline in China had used its own distribution system, " she says.

World Low Cost Airline Congress 09: VIDEO Stelios on Ryanair and life

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EasyJet founder Stelios Haji-Ioannou wished his arch rival Michael O'Leary "the best of luck" as part of a candid keynote speech which compared easyJet with Ryanair.

Speaking at the World Low Cost Airlines Congress in Barcelona, Stelios claimed that the easyJet model is "more resilient, safer and lower risk" than Ryanair's. He said risk is a key factor for investors, which might put them off Ryanair's high growth, passenger number-boosting strategy.

"I am a lot happier I am a shareholder in easyJet and happier with their strategy. I wish Michael the best of luck," he said.

Far from lambasting Ryanair, Stelios credited O'Leary and Southwest for their roles in creating the low-cost phenomenon and for Ryanair's innovation on baggage charges. "Michael was the first to charge for the first bag and we followed. There is nothing wrong with following something which worked."

But, while easyJet and Ryanair watch one another very closely, there are some things which easyJet will not be duplicating. "There is only so much you can push through. My personal view if Michael tries to charge for toilets it will be one step too far," said the flamboyant Greek entrepreneur, who feels that only optional elements of the journey should be charged for.

Stelios says easyJet's best decision was to cut out the travel agent, although the airline listed on the GDSs once it had built up huge passenger volumes. "The best time to negotiate with someone is from a position of strength," he said. "The preparation pays the fee."

It seems that very little would faze the easyJet founder, but he cheerfully admits that one thing caught him out: "Some people fly on easyJet and then stay at the Ritz, which is not what I expected."

Looking back, Stelios is modest about his beginnings in the aviation industry: "I think I was very lucky because I had a rich father. That helps enormously in the aviation industry," he said, drawing a ripple of laughter from the audience.



And while easyGroup will stick to the travel sector, because that is where its brand is known, Stelios says: "Given the way the world is today, I wouldn't start an airline again." He explained that he would not have be able to get a similar shareholding for the same price today. Rather than start a new airline, Haji-Ioannou says: "I'd rather stay where I am."

In fact, during the session it emerged that easyGroup "would not be allowed" to start a new airline in the UK or overseas under the "Easy" brand unless it is through easyJet.

"We have an arrangement between ourselves [EasyGroup] and the airline which wouldn't allow it, unlike [Virgin Atlantic founder Richard] Branson who kept the rights to set up different airlines around the world."

Reflecting on the aviation industry in general, Stelios concludes: "The economy generally is a very Darwinian place. It is survival of the fittest. The airline industry doesn't follow Darwin, unfortunately, because the dinosaurs won't die."

World Low Cost Airline Congress 09: Stelios puts case for modest growth

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EasyJet founder and shareholder Stelios Haji-Ioannau outlined his belief more modest growth during current conditions offers a better return for shareholders than chasing market share, in a keynote interview at the World Low Cost Airline Congress in Barcelona. 

Stelios.JPGA well-publicised boardroom spat at easyJet over the pace of future growth was settled earlier this summer when easyJet adopted a new medium-term growth rate of around 7.5%. Speaking at a keynote session, Stelios played down talk of a boardroom rift saying people should not believe everything they read in the paper. But he also set out his view as to why he supports more modest growth plans. 

 "I generally believe the growth rate of any company, not just an airline, is something that needs to be debated," he said, noting companies cannot grow without capital expenditure. 

He says the more modest growth rate plans for easyJet will provide a better return for shareholders and, alluding to continued strong growth plans from other carriers such as budget rival Ryanair, questions the merit in chasing market share. 

Stelios LCC interview.JPG"It remains to be seen which growth rate will provide higher returns for shareholders," he says. "Is market share in Europe that relevant? You need to concentrate on market share from A to B, preferably A being somewhere people live and B being somewhere someone wants to go. If you go for passenger count and market share, there is a risk. I think our business model is safer because we have lower risk."

World Low Cost Airline Congress 09: Connectivity key says AirAsia X CEO

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AirAsia X chief executive Azran Osman Rani was in good form at the World Low Cost Airlines Congress in Barcelona, where he was a keynote speaker. He not only vigorously defended the long-haul low-cost business model, but suggested short-haul carriers that did not address connectivity with long-haul passengers did so at their peril.

 

Azran Osman Rani.JPG"Connectivity is very important in our model," he told delegates at the conference, pointing to the high proportion of traffic on its own Kuala Lumpur-London Stansted route that make their own connections out of the north London airport. "30% of our passengers [on the route] don't end in Stansted and ignoring that can make the difference between a route working and not working.

 

"You have got to keep your eyes on the what the legacy carriers are doing," he added. "They will evolve the model and they will go after the customer passenger base of the low-cost carriers. It is going to be very difficult if you don't have access to 30% of the volume someone else has access to."

 

Osman Rani argues there is no need for a sophisticated booking engine to achieve this connectivity, noting passengers are easily now able to buy different segments together and that some price sensitive customers would rather save money on the fare by having to get off at Stansted and check in again on another flight. "We are still seeing that connectivity without taking onboard all the complexity," he says.

 

The Malaysian low-cost long-haul operator will continue its expansion later this year by adding flights to Abu Dhabi and Chengdu in China, and Osman Rani says there is an opportunity for a low-cost long-haul model.

 

"People seem fixated that you can't have a big utilisation or seat density difference. Of course you can," he says. "You just have to think differently. The key is, how are the legacy airlines operating today and is there a different way of doing it. I think you just have to look at things from a fresh perspective and find where are the value opportunities."

 

Check out more blogs, videos and tweets from the World Low Cost Airline Congress here

Out and about in Barcelona

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As the World Low Cost Airlines Congress kicks off in Barcelona, Flight journalist Chris Hall shares his tips on what to do and see in this vibrant Spanish city... 

Barcelona is one of those cities that reveal more and more of themselves on repeat visits. Home to some of the world's most impressive architecture, museums and scenery, not to mention a truly excellent atmosphere throughout, it's almost impossible to characterise neatly. This city is modern, traditional, colourful, bohemian and mainstream all at once. Being the Catalan capital gives it a distinct identity within Spain, yet ironically it probably represents most foreigners' views of Spain. Most places claim to have something for everyone; Barcelona really does.

Gaudi

Antoni Gaudi's mind-bending architecture is one of the most obvious reasons to visit Barcelona, but that doesn't make it any less worthwhile. The Sagrada Familia, in the central Eixample district, is a must-see for newcomers, but take the time to check out Gaudi's Parc Guell. Situated further north, it's a popular spot for reflection and people-watching as you sit surrounded by surrealist sculpture and landscaped gardens.

Olympic village

Dating back to the 1992 olympics, Barcelona's Olympic village has been successfully turned into a tourist attraction that must have more than paid for itself by now - London take note. The modern architecture now houses a selection of shops, restaurants and cafés, as well as being a good spot from which to start a walk along the seafront.

Tibidabo

At 542m (1778ft), Tibidabo is the highest hill in the wooded range that forms the backdrop to Barcelona. If the weather's clear - and in Barcelona that's a fair bet - it's a great place for views over the city. The locals come up here for some thrills at the amusement park Parc d'Atraccions, with an array of rollercoasters. Equally breathtaking, however, is the glass lift that goes up 115m to a visitors' observation area at Torre de Collserola telecommunications tower. The more grounded among you can find solace in the Temple del Sagrat Cor, Barcelona's answer to Paris' Sacré Coeur. Looming above Tibidabo's funicular station, it is actually two churches, one on top of the other. The top one is surmounted by a giant Christ and has a lift to the roof.

Las Ramblas

A tourist magnet, Barcelona's de facto high street (actually five streets end-to-end) has nonetheless got more to recommend it than overpriced restaurants and street hawkers. Check out the colourful bird market, the Palau de Virreina and the Gran Teatre del Liceu - the old opera house - as you walk down towards the Placa Reial, one of the cities grandest open spaces.

Museums

Barcelona has more than its fair share of museums dedicated to the arts: one good way to make sure you don't miss any masterpieces is to buy an 'Articket' from the tourism board, which covers you for seven of the city's foremost galleries, including the Museu Picasso, Fundacio Joan Miro and Gaudi's Caixa Catalunya.

Museums - articket deal

Food Markets

Barcelona is full of traditional markets selling fresh Catalan and Mediterranean food. La boqeria is one of the grandest, oldest and best known, the latter owing largely to its situation just a couple of minutes off Las Ramblas. As well as providing excellent picnic material, you can - and should - sit and sample the quesadillas made there and then. For something more formal, try the nearby restaurant El Quim

Restaurants

Les Quinze Nits is a stylish tapas restaurant which is definitely one to consider if reviews are anything to go by: it overlooks the grand Placa Reial, serves delicious yet reasonably priced food and, not surprisingly, is very popular as a result. They do not take reservations, however.
Fans of fine dining will feel right at home in Alkimia, one of Barcelona's most fashionable and talked-about restaurants. Nestling in the shadow of la Sagrada Familia, it has quickly made a name for itself serving ultra-modern interpretations of typical Catalan cuisine.

For less extravagant dinners, avoid the tourist traps around Las Ramblas and head into the old quarter, Barri Gotic: explore the narrow, winding streets and you should find plenty of authentic tapas restaurants and cafés.

This is a useful list of some traditional Catalonian dishes that you might like to try if you get a chance.

Barcelona deserves its reputation as a party town, even in a country that lives for late nights. The best areas to target are Raval, Barri Gotic, or Born: that's where you'll find the best bars and clubs. Be prepared to go the whole hog; with clubs that don't open until the early hours of the morning you might find yourself a little stretched if you're working the next day.

Outside of Barcelona

If you have time, or fancy getting away from the busy city, the surrounding area has plenty going for it. The nearby town of Sitges is a popular mix of medieval and modern cultures; Figueres, a little further afield, is the birthplace of the world's favourite surrealist, Salvador Dali, and has an excellent museum devoted to him; or for something entirely different, why not take a trip to Montserrat? Ascending the mountain by cable car to arrive at the 16th century monastery makes for quite a pilgrimage.

Out and about in Barcelona

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As the World Low Cost Airlines Congress kicks off in Barcelona, Flight journalist Chris Hall shares his tips on what to do and see in this vibrant Spanish city... 

Barcelona is one of those cities that reveal more and more of themselves on repeat visits. Home to some of the world's most impressive architecture, museums and scenery, not to mention a truly excellent atmosphere throughout, it's almost impossible to characterise neatly. This city is modern, traditional, colourful, bohemian and mainstream all at once. Being the Catalan capital gives it a distinct identity within Spain, yet ironically it probably represents most foreigners' views of Spain. Most places claim to have something for everyone; Barcelona really does.

Gaudi

Antoni Gaudi's mind-bending architecture is one of the most obvious reasons to visit Barcelona, but that doesn't make it any less worthwhile. The Sagrada Familia, in the central Eixample district, is a must-see for newcomers, but take the time to check out Gaudi's Parc Guell. Situated further north, it's a popular spot for reflection and people-watching as you sit surrounded by surrealist sculpture and landscaped gardens.

Olympic village

Dating back to the 1992 olympics, Barcelona's Olympic village has been successfully turned into a tourist attraction that must have more than paid for itself by now - London take note. The modern architecture now houses a selection of shops, restaurants and cafés, as well as being a good spot from which to start a walk along the seafront.

Tibidabo

At 542m (1778ft), Tibidabo is the highest hill in the wooded range that forms the backdrop to Barcelona. If the weather's clear - and in Barcelona that's a fair bet - it's a great place for views over the city. The locals come up here for some thrills at the amusement park Parc d'Atraccions, with an array of rollercoasters. Equally breathtaking, however, is the glass lift that goes up 115m to a visitors' observation area at Torre de Collserola telecommunications tower. The more grounded among you can find solace in the Temple del Sagrat Cor, Barcelona's answer to Paris' Sacré Coeur. Looming above Tibidabo's funicular station, it is actually two churches, one on top of the other. The top one is surmounted by a giant Christ and has a lift to the roof.

Las Ramblas

A tourist magnet, Barcelona's de facto high street (actually five streets end-to-end) has nonetheless got more to recommend it than overpriced restaurants and street hawkers. Check out the colourful bird market, the Palau de Virreina and the Gran Teatre del Liceu - the old opera house - as you walk down towards the Placa Reial, one of the cities grandest open spaces.

Museums

Barcelona has more than its fair share of museums dedicated to the arts: one good way to make sure you don't miss any masterpieces is to buy an 'Articket' from the tourism board, which covers you for seven of the city's foremost galleries, including the Museu Picasso, Fundacio Joan Miro and Gaudi's Caixa Catalunya.

Museums - articket deal

Food Markets

Barcelona is full of traditional markets selling fresh Catalan and Mediterranean food. La boqeria is one of the grandest, oldest and best known, the latter owing largely to its situation just a couple of minutes off Las Ramblas. As well as providing excellent picnic material, you can - and should - sit and sample the quesadillas made there and then. For something more formal, try the nearby restaurant El Quim

Restaurants

Les Quinze Nits is a stylish tapas restaurant which is definitely one to consider if reviews are anything to go by: it overlooks the grand Placa Reial, serves delicious yet reasonably priced food and, not surprisingly, is very popular as a result. They do not take reservations, however.
Fans of fine dining will feel right at home in Alkimia, one of Barcelona's most fashionable and talked-about restaurants. Nestling in the shadow of la Sagrada Familia, it has quickly made a name for itself serving ultra-modern interpretations of typical Catalan cuisine.

For less extravagant dinners, avoid the tourist traps around Las Ramblas and head into the old quarter, Barri Gotic: explore the narrow, winding streets and you should find plenty of authentic tapas restaurants and cafés.

This is a useful list of some traditional Catalonian dishes that you might like to try if you get a chance.

Barcelona deserves its reputation as a party town, even in a country that lives for late nights. The best areas to target are Raval, Barri Gotic, or Born: that's where you'll find the best bars and clubs. Be prepared to go the whole hog; with clubs that don't open until the early hours of the morning you might find yourself a little stretched if you're working the next day.

Outside of Barcelona

If you have time, or fancy getting away from the busy city, the surrounding area has plenty going for it. The nearby town of Sitges is a popular mix of medieval and modern cultures; Figueres, a little further afield, is the birthplace of the world's favourite surrealist, Salvador Dali, and has an excellent museum devoted to him; or for something entirely different, why not take a trip to Montserrat? Ascending the mountain by cable car to arrive at the 16th century monastery makes for quite a pilgrimage.

World Low Cost Airlines Congress 09: First to arrive at the party!

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This week, the great and good in low cost airlines are coming to Barcelona for the snappily titled World Low Cost Airlines Congress 2009, which to save my fingers I'll call WLCAC for short. As a team that prides itself on being first to the news, the Airline Business/Flightglobal team are here already. Unfortunately, it seems that no-one else is yet:

IMG_0094.JPGHopefully this is because we are the first to the party rather than a metaphor for the current state of the aviation industry.

The exhibition hall is also situated right next to a fairground, just in case anybody wanted a go on the big wheel in between conference streams. I'll let you decide if there's an appropriate caption for this:

IMG_0093.jpg

Environment: The need for a unified front

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Web Kati Ihamäki, Finnair.jpgEarlier this week, I caught up with Finnair vice-president for sustainable development Kati Ihamaki in London (in the midst of a hotel evacuation, but that's another story!).

Coincidentally, our meeting happened just as BA made a dramatic pledge on behalf of IATA to slash carbon dioxide emissions in half by 2050 and to achieve carbon-neutral growth from 2020 onwards.

This fits in nicely with Kati's call for a more unified approach to environmental matters. During our chat Kati, who is a member of IATA's environment committee, urged for a "sectoral", rather than "patchwork" approach to emissions trading.

Kati gives an example to illustrate her point. If a Chinese airline spends a long length of time flying over Russia to get to Europe, why should the carrier pay environmental charges in Europe and give nothing to Russia? A fair point.

"If we don't move along with others, there will be a patchwork of different systems," she says, adding that there are high hopes that the principles of a global solution will be discussed at the UN Climate Change Conference in Copenhagen this December. "Maybe in two years [a universal system] could be in place, by 2013. It needn't take too long."

Kati says much is hanging on the Copenhagen talks. "After that either the industry will move together or take different steps. That's why everyone is holding back at the moment."

But the Finnair executive believes there is a danger that "the politics of the day", i.e. emissions trading, are taking second place to operational measures with potential for real environmental benefits, such as the Single European Sky project.

It is a matter of political will, explains Kati. The Single European Sky is still going to take some time, while emissions trading is a political talking point.

She also would like to see money from schemes like emissions trading channelled back into environmental R&D for the aviation industry, as well as to poorer nations to encourage them to get involved.

On the subject of biofuels, Kati is a firm believer in second generation products and is currently extremely interested in the potential of fuels derived from forestry residue.

"I'm really positive about that and the discussions which we have had with different companies are really encouraging. Forestry residue - that's the main ingredient which we are talking about with some suppliers - we'll see."

But supply issues still remain. Even if Finnair is able to get enough biofuel in Finland, Kati questions what the airline would do to fuel aircraft down route.

For the low-down on how airlines are preparing for the start of emissions trading, take a look at this report which ran in our September print edition.

Want to recap on the basics? Here's our emissions trading low-down.

BA's unlikely business guru: Darth Vader

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Darth.jpgHe's not your average role model, but that hasn't deterred British Airways from flagging up Darth Vader's leadership qualities.

Darth is the first to be profiled in a new series of "unlikely business gurus" which is being run by British Airways' business life publication.

In the piece, BA celebrates Darth's more positive attributes, which include decisiveness, swift action, devoted staff, an insatiable desire to succeed and his wide variety of skills (to quote: "he doesn't just sit behind a desk, he gets out and flies a fighter ship alongside his junior pilots").

The article also credits Darth's dress sense which gives him an authoritative air of mystery: "If people can't read your face and don't know what you're thinking, they can experience an uncomfortable sensation that puts them on the back foot," says the airline.

But even the baddest man in the galaxy has some flaws. BA acknowledges that old Darth was a tad prone to mood swings, adding that his tendency to bully and torture staff represents a bit of an HR liability.

Finally, he made a fundamental error in allowing family issues to cloud his judgement. "In the end, [Darth] revealed himself as a sentimental pussycat and showed a modicum of remorse as the empire crumbled. Sometimes, you just can't let the mask slip," quips the oneworld carrier.

One reader responds: "I look forward to seeing Ming the Merciless up next month."

(Picture credit: Sipa Press/Rex Features)

 

Enjoying the app at Air Canada

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Air Canada management believes its introduction in mid-August of its Apple iPhone application is meeting resounding success.

iphone.jpgDuring an investor presentation earlier this month carrier CFO Michael Rousseau said at that point the application had logged 75,000 downloads, and resided in the top 10 of all Apple's applications .

Touting the functionality of the app Rousseau says travellers can retrieve electronic boarding passes, track flight information in real time and receive real-time notification of itinerary changes.

The carrier was the first North American airline to introduce its free iPhone application.

 

 

 

Guess who's going to run the new Lotus F1 team?

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One clue - a very prominent Malaysian. Easy - Tony Fernandes (seen here at the Oakland Raiders game yesterday - but that's another story and a good one at that).

Pic 2 - Raiders.jpg

Tony you are having too much fun!

It's all over the sports news, but here's the BBC's web story.

Malaysia is thrilled at the prospect as you can imagine.

I recall that the Lotus brand was bought by Malaysian interests some while back - is that still an active relationship? Answers please car industry experts.

 

 

American eyes look west for arranged marriages

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After years of transatlantic alliance and joint venture attention from the US majors - Northwest-KLM, AA-BA, BA-US Airways, Air France-KLM/Delta - the big news over the weekend is that their gaze is now looking the other way.

It emerged this weekend that first Delta Air Lines and then American Airlines were in talks with struggling Japan Airlines over a possible investment and joint venture.

JAL-resize 6.jpg

An alliance with Asia's largest airline group is clearly a major prize for whichever lands the deal, if it goes ahead. JAL has revenues of $19 billion a year compared to Qantas in second place in the revenue size game in Asia with $14 billion.

It's probably a good time to be wooing JAL. It is losing bucketloads of money and has found it hard to make the structural changes a legacy carrier needs to make to become profitable.

That said, it is not clear how US investment would make that any easier.

But when it comes to transpacific operations a tie-up between either carrier would make them a dominant player in that market.

Regulators and competitors will already be sharpening their arguments for and against.

It's going to be a fascinating week to see how this one develops. 

India's Jet suffers what it calls a "simulated strike"

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After seeing a lot of press releases on labour relations over the years you get use to the language. Now I've got a new phrase to add to my vocabulary - simulated strike.

That is the accusation India's Jet Airways is making against a large group of its pilots for calling in sick over the past couple of days after a Mumbai court ruled they could not strike during a conciliation process taking place with the carrier.

JetAirways_resized.jpgNow I don't know the ins and outs of the grudge the pilots have with the carrier - please enlighten me anyone if you like - but I have trouble understanding such action in this terrible business climate. And India is suffering badly. No one is making money. There is too much capacity.

Our recent leader urged airlines to take a hard line on labour.

Jet's dispute with its pilots is yet another blow to the carrier as it tries to return to breakeven.

It is also having trouble with its proposed alliance with another loss-maker Kingfisher Airlines.

And the strike is causing massive disruption.

 

Here's the Jet release of 8 September in full:

Mumbai, September 8th, 2009: As per the directions of the Regional Labour Commissioner, Jet Airways has been in a conciliation process with the pilots. The Regional Labour Commissioner had categorically stated that any strike by the pilots during the pendency of conciliation, would be deemed an illegal act under Industrial Disputes Act.

After announcing the withdrawal of the strike, the pilots resorted to a simulated strike by reporting sick. Since 10 pm last night, a total of 163 captains and 198 first officers, reported sick disrupting the flight schedule and causing inconvenience to the travelling public.

The number of pilots who reported sick represents nearly 40 per cent of the total airline pilot strength of 760 national pilots. This significant increase in the percentage of pilot reporting sick and disrupting flights is regarded by the airline as simulated strike.

As a result of this, 186 flights - 154 domestic and 32 international services - have been cancelled or affected through out the Jet Airways network. About 13,000 traveling passengers have been affected. A majority of the passengers have been transferred to other carriers.

Jet Airways has taken all steps to minimize the inconvenience caused to the traveling public and is making all efforts to operate the maximum number of flights. However, perforce some flights may have to be combined or cancelled, we have made arrangements to accommodate our guests on alternative flights.

The airline's website, call centre and Jet Alert sms's are providing updated information on the flight status. Efforts are being made to update the flight status on news channels.

Out of the total domestic flights operated by the airline approximately 25 % of the flights have operated until noon today.

All JetLite flights have been operated as per the normal schedule.
All Jet Airways wide body long haul flights are currently operating as normal having been crewed by foreign pilots, who have been pulled out from leave and standby.

We would like to personally thank all those pilots who stood by the airline so that inconvenience to the traveling public is kept to the minimum possible.

In order to minimize inconvenience to passengers, Jet Airways moved an application in the High Court to pass an order restraining the NAG and its members from going on any form of strike and the High Court has passed an order of such restraint

Jet Airways is expecting the written form of this restraining order and will take appropriate action.

Jet Airways regrets the inconvenience caused to the esteemed guests and seek their understanding and support during this difficult phase.

My view: get round the table and negotiate properly you guys - this kind of action, in this kind of climate, is not smart.

Bags, bags, bags = £, €, $

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How much airlines have raised in the past few years in total from charging bag fees I don't know - but it must be a seriously big number (anybody got an estimate?). It has become a crucial revenue stream for many carriers.

Ryanair was at the vanguard of the bag fee revolution and is now looking once again to bag charges to make up for lost revenue in other areas.

Ryanair resized.jpg

This time the cash drain is simple - Ryanair's average fares have dropped by 20% this year, from €40 to €32. Ryanair says this will "save" its 67 million passengers over €530 million in a year.

To compensate for these "savings" Ryanair is hiking its bag fees. That is not new. The carrier has been clear it will continue to raise bag fees to discourage checked luggage to help it reduce turnaround times.

The big sting this time is that Ryanair is allowing a second checked bag - which in itself seems a contrarian move - for the princely sum of €35 if booked online, or a collosal €70 if paid at the airport. 

From October the airline is increasing its checked fees as well, by €5 to €10 depending on whether it is booked online or at the terminal.

As the airline says: "All passengers can avoid these optional checked in baggage fees by travelling with carry on baggage only." The airline says over 70% of its travellers do this.

For those of you who have to check baggage, the cost is steep, but you know what you are getting.

Just don't even think about waiting until you get to the airport to work any of this out - that will cost you a packet.

Mind you, Ryanair management won't be complaining too much. They'll just call you a dimwit for not checking it out beforehand. And congratulate you at the same time for choosing the world's cheapest airline. 

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November 2011

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Finance Pro

Go Pro with Finance Pro

An up-to-the-minute web service for air finance professionals providing news, analysis and aircraft value data direct to your desktop.

Why not go pro to find out about:

  • Latest deal announcements
  • Global financial developments including orders, start-ups and distressed carriers
  • Pricing data of the most recent deals
  • Instant alerts

Find out more

 

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