Europe: July 2006 Archives

A UK cutlery manufacturer is doing its bit for aviation security with a new range of knives and forks that are too short to be used as weapons, but long enough to usefully eat with.

The "anti-terror cutlery" is a world-first says Arthur Price, a century old cutlery making firm, and follows guideline on in-flight utensils from the UK's Department of Transport (DOT). Air-India and Jet Airways have signed up to use the new stainless steel cutlery, while Emirates is also taking a close look.

The "Dinky Dinner" service has knife blades no longer than 6cm with a round rather than pointed end. The forks have prongs no longer than 3cm.

Simon Price, whose family has run Arthur Price for four generations, was not surprised at the interest in the cutlery from airlines: "Since the new guidelines from the DOT have come in, all airlines have been forced to use plastic cutlery, which doesn't fit very well with a premium offering such as first or business class. If you've paid that much for a flight, you don't expect to be eating with plastic knives and forks."

Now we have a picture of this wonderful invention. And as we said before we had the picture: "Imagine children's cutlery."

The crystal-ball gazing abilities of British Airways chief economist, Dr Andrew Sentance, have been recognised by none other than Gordon Brown, the UK government's finance chief and possible prime minister in waiting. Brown has appointed Sentence to the Bank of England's , which sets interest rates in the UK, and is packed with some of the country's foremost economic experts.

Dr Sentance joined BA in 1998 from the London Business School where he was director of the centre for economic forecasting. As the carrier's chief economist he advises BA on global economic developments, corporate strategy and regulatory issues. He was one of the architects of the carrier's "Future, Size and Shape" turnaround plan in 2001 which "restored BA's profitability after the 9/11 terrorist attacks", said the carrier.

Separating fact from fiction when airlines and airports bandy claims and counter-claims about airport fees is sometimes as tricky as deciphering just what Italian soccer player Marco Materazzi actually did say to French player Zinedine Zidane.

But the headline in a recent International Air Carrier Association (IACA) press release left us in no doubt about their views on a Mediterranean fees dispute: "Drastic increase in airport charges will impact tourism in Cyprus". The association, which represents 39 carriers in the leisure industry, called for the new owners of Larnaca and Phaphos airports on the island - a private consortium called Hermes Airports - to review its 300% charges hike.

Now this is aggressive stuff from IACA, which has shied away from blasting airports in public. It is complaining about a lack of consultation on the charges increase, which was imposed in mid-June. "These costs are unbearable, we have not even had time to pass them onto passengers and they will have a detrimental effect on traffic to Cyprus," said Luc Geens, manager operations at IACA.

Geens explains how there are six additional charges at these airports, over and above the basic landing charge. These are: a ground handling fee (€3.48 per departing and arriving passenger); a security fee (€1.17 per departing passenger); a fuel throughput fee (€0.009 per litre); and a fire service recovery fee (on average €0.52 per passenger). The other two are an airbridge fee and a CUTE user fee, but as neither airport has these until new facilities are built these can be discounted for now.

IACA has calculated that by 1 July 2007 when all the charges are implemented, based on a Boeing 737-800 with 158 passengers, the fee hike is 300%.

Hermes Airports chief executive Bob Manning is puzzled. He cannot get to 300% with his calculations. The closest he gets is 45%.

Now that, perhaps, is quite an increase anyhow. But, he points out, this is not quite the whole story. The major new cost - ground handling - has been broken out from the old, all-encompassing charge. "We have separated it out," he said. For now, Hermes has taken on the former government workers providing this service, but they will get out of this business in a couple of years. More competition will follow and prices should fall.

It seems that airports in Cyprus may have been undercharging for years, but the adjustment under private ownership has been swift and painful for carriers. For Manning, both airports now have the chance to be redeveloped and expanded. Service quality will improve. "The government could not let things stay the same," he said.

"Ironically it is in the best interests of the airlines. We are not going to succeed by strangling the airlines and they are not going to succeed if they don't provide good services," said Manning.

"What airlines were getting for what they were paying wasn't very much," he added. The extra charges mean carriers at Larnaca and Phaphos will pay €20-25 per passenger compared to the €18-19 before, he said. This will put it on a par with other Mediterranean airports like Nice, Marrakech, Antalya and Faro.

So, who is right and who is wrong? Like most airline-airport disputes until both sides agree on the figures it is difficult to tell. In this case there is an increase, although probably not at the headline order of 300%.

More importantly, the whole subject of dialogue seems sadly lacking once again between these important partners. Come on guys get around the table.

Air France and KLM celebrated the opening of their new joint office in London on 6 July at a champagne ceremony that has been repeated around the world since the two carriers merged in 2005.

The SkyTeam members now share offices in more than 50 cities and plan to have 95 joint town offices by the end of March 2007. The new joint offices helped the carriers generate €350 million ($449 million) in savings in fiscal 2005-06, including €27 million in commercial savings. Air France executive vice-president Patrick Alexandre and KLM executive vice-president commercial Paul Gregorowitsch predict these figures will increase to €61 million and €465 million in fiscal 2006-07.

Shortly after Air France and KLM merged in April 2004, they predicted the merger would generate €27 million in commercial savings in the first year. "We kept our promise and we'll deliver," says Alexandre.

"It's quite unique what KLM and Air France are doing together," says Gregorowitsch. KLM has kicked out fellow SkyTeam member Alitalia from the Plesman House at Hatton Cross near Heathrow Airport to make room for Air France. KLM has been in the home-like office since 1990 while Air France previously had its UK and Ireland office in nearby Hammersmith.

Air France and KLM currently have 330 employees across the UK and Ireland, including 180 at the Plesman House. Many of these employees joined a team of executives from both carriers, led by Alexandre and Gregorowitsch, and the UK Ambassadors to France and the Netherlands to cut the ribbon on the new joint office and toast the completion of a refurbishment.

The EVPs reiterated that neither carrier has cut any jobs since the merger and promised there will be no job cuts in the current fiscal year. "We didn't have any issues in the management side," adds Alexandre.

The carriers enjoy an 8.6% market share in the region, with over 800 flights per week from 17 airports. Only one-fifth of the carriers' passengers from the region are heading to France and the Netherlands while the other 80% connect in Amsterdam and Paris to the over 200 destinations the carriers serve worldwide.

I have been pointed to a new website devoted to recollections from former British Overseas Airways Corporation - BOAC - employees about their time at this post-World War Two airline institution, which was merged with British European Airways in 1974 to create British Airways.

The author, former BOAC staffer Peter Jones, has gone to spectacular efforts to compile stories from around the BOAC empire. It was meant to be a book but apparently a publisher has proved elusive. The tales range from Burma to Iran and from Ghana to Panama.

For a touch of nostalgia and for a feeling of the adventure these BOAC activitists felt about being in the airline business back in the '50s, '60s and '70s, take a look.