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Aviation History
2004
2004-09 - 1830.PDF
AIR TRANSPORT RUNWAY CAPACITY JULIAN MOXON / LONDON Airlines to fight slot allocation plan European Commission proposes market-based system to overcome shortage of capacity at continent's airports European airlines are gearing up for a battle with the European Com mission (EC) over its latest propos als for replacing the current system for slot allocation with a market- based approach. The EC says it wants to "rethink airport operations" and sees a mar ket-based slot allocation system as a major tool to manage the increas ing problem of limited capacity. It has released a consultation paper setting out ideas for commercialis ing slot allocation, asking govern ments, airlines and other parties for their comments by 1 December. The proposals focus on the idea that the shortage of slots at Europe's airports should be tackled by a financially based mechanism, such as free trading, possibly com bined with slot auctions. Slots would be valued and airlines would, says the EC, "either use the slots allocated to them to the full, or decide not to do so and receive financial compensation instead". Long-standing issues such as grandfather rights, favouring national carriers such as British Airways - which controls about 40% of slots at London Heathrow airport - would be tackled under the EC's proposals. Airlines cur rently carry out "secondary trad ing" of slots, which the EC says implies carriers have been given the right to trade the slots they are allocated. At present, such trading is not transparent, even though major slot transaction deals are commonplace. BA says secondary trading is allowed in UK law and defends grandfather rights because they "allow us to plan schedules and ensure continuity of services". The European Regions Airline Association says slot allocation is one of the "two most significant issues" facing regional carriers (the other is air traffic control route charges). Its director of air trans port policy, Andrew Clarke, says the EC's proposals "do not address capacity" and adds: "This is simply a means of deciding who gets access. The existing system might have shortcomings, but there must be a demonstrated net benefit if it is to change." STRATEGY JUSTIN WASTNAGE / WARSAW LOT to select long-haul fleet LOT Polish Airlines is close to finalising its future long-haul requirements as it reveals plans to establish a low-fares subsidiary. The Polish flag carrier is in the closing stages of talks with Airbus and Boeing to replace its fleet of five Boeing 767s with six Airbus A330-200s or Boeing 7E7s. The Warsaw-based airline is studying cost-benefit analyses for the aircraft, weighing instant availability against greater efficiencies. Piotr Dubno, LOT executive vice-president, says the airline has "no visions of a dramatic shift in long-haul traffic", but is looking for better utili sation of a future six-aircraft fleet. The airline is examining relaunching an Asian destination in an attempt to balance the highly seasonal yields on its routes to Chicago, New York and Toronto. LOT says the 7E7's superior fuel performance makes it attractive - the carrier is midway though a programme to cut costs by 20% - but its 2008 availability is a problem because lease deals on LOT's fleet of five 767s expire in 2006. Boeing is offering additional 767s as a bridge, says Dubno. Meanwhile, LOT released further details - but no name - of its planned low-fares subsidiary. The offshoot would have bases in Warsaw and Krakov, would take Boeing 737-300/400s from the LOT fleet, but would operate with different, "more flexible" pilots' contracts, says Dubno. The carrier has identified 12 destinations, including airports in London and Paris, but insists the stablemate will not weaken LOT's mainline brand on key business routes. The newcomer will also absorb LOT'S existing charter business, running as an independent business unit from next year. RELAUNCH DAVID KAMINSKI-MORROW / LONDON Iraqi Airways restarts scheduled flights Iraqi Airways has resumed sched uled services from Baghdad to two Middle East capitals after a test flight by the dormant carrier in August. The state-controlled airline relaunched on 18 September, oper ating a daily round-trip to Amman in Jordan, under flight numbers IA163 and IA164. It is supplementing this opera tion with services to the Syrian cap ital Damascus. The airline intends to fly this route daily as well. "We have strong ambitions to operate to European cities," says the airline's Jordanian regional office, but it adds that the carrier will concentrate on intra-Gulf routes at present. Dubai is a possi ble future destination. Iraqi Airways is using a Boeing 737-200 on its current route network. "We had a couple of passengers," says the airline's Jordanian office. "It was not many because we didn't advertise and it became too late to promote the route." The airline says it expects pas senger loads to increase in the com ing weeks as the service becomes more established, and the carrier adds that it is unconcerned about operating into Baghdad International airport, pointing out that Royal Jordanian Airlines and other operators now use it. "We are facing the same risk as any other carrier," the airline says. DELIVERY A319 on way for Druk Air Bhutan national airline Druk Air is poised to receive the first of two Airbus A319s it has on order to replace its BAe 146 fleet. The CFM International CFM56-5B- powered aircraft will enable the airline to boost capacity and expand its network. www.fliqhtinternational.com FLIGHT INTERNATIONAL 28 SEPTEMBER - 4 OCTOBER 2004 11
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