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Saturday, August 29, 2009

  Record profit for Malaysia Airlines

Malaysia AirlinesMalaysia Airlines (MAS) recorded its maximum ever quarterly net profit inspite of the constant crash in the airline industry because of the worldwide financial slowdown.Its net profit of RM876 million offset first quarterly losses of RM695 million leading to a first-half net profit of RM181 million, becoming one of the few main airlines to display a profit for the first half of the year. MAS had applied extremely forceful sales campaigns in order to deal with the worst ever crisis that struck the airline industry. Load factors later improved to 66 per cent in the second quarter in comparison to 56 per cent in the first quarter.

The airline will persist to focus on increasing sales .Additionally, an advertising blitz comprising of around 15 sales campaigns has been considered for Malaysia and another 30 for the worldwide market.Datuk Seri Idris Jala,CEO of MAS stated that Malaysia Airlines will focus mainly on top line growth and improvement.He however refused to divulge the volume of the advertising campaign budget,mentioning that these were trade secrets.

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Tuesday, August 25, 2009

  Lufthansa launched a Welcome Lounge at Frankfurt Airport

LufthansaLufthansa,the German flag Carrier has launched a cozy Welcome lounge at Frankfurt Airport.This initiative is the first of its kind for Lufthansa.The lounge concept is catered to the needs of passengers arriving on long-haul Lufthansa flights and the facility is made available for first, business class passengers and for status customers.

Lufthansa-Welcome LoungeThe floor area of the lounge is around 1,200 sq metres on two levels and it is equipped with all the facilities required for passengers to freshen up after an intercontinental flight and organize themselves for the day ahead.The lounge,which is situated on the upper level consists of a spacious cozy area with lounging as well as calm zone for relaxing.It also includes an eatery where snacks is available for passengers or can help themselves with breakfast dishes.The passengers can also use the facility of wireless internet access and also avail of the cloakroom where they can leave their baggages during their time of stay.

Dr Karl-Rudolf Rupprecht,Lufthansa's Senior Vice President Hub Management in Frankfurt,stated that the Welcome Lounge offers perfect conditions for the premium passengers of Lufthansa,by helping them to begin the day feeling peaceful, regenerated and rejuvenated after a long flight journey.He also stated that while designing the amenities,great emphasis was placed to meet the requirements of the frequent travelers of Lufthansa Airlines.

Lufthansa First,Business Class travelers as well as customers with Hon Circle, senator or frequent traveler status are benefiting from an exclusive perspective at Frankfurt airport.

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Friday, August 21, 2009

  British Airways launches advertisements on boarding passes from October 1st

British AirwaysIn an effort to raise money,British Airways plans to begin putting advertising from other companies in its boarding passes.Whilst,the airline will also host advertisements on its website .There are potentially two ways to view this decision , one, that it is a very valuable and potentially profitable way of using space on the company's boarding cards, or two, that the company is so anxious for cash that it had no other option,but to take this move.

The airline mentioned that it had issued more than 12 million boarding passes last year and has 500,000 daily visitors to its website, which would give it ample opportunity to raise additional revenue from third-party advertising. Advertisements on boarding passes would begin appearing from October 1st and would be customized to the passenger and location . Abigail Comber,the airline's manager for brand, scheme and insight, stated that the airline hoped that this initiative will be a positive revenue stream for BA. Cedar Communications which is BA's publishing as well as media sales agency, will be advertising the space for British Airways.British Airways had lost around £401 million last year due to a crumple in its premium traffic due to the recession. British Airways is making every effort in order to slash costs by reducing headcount .

Ms Comber also added that it is a brilliant method for customers of British Airways to be aware of products and services which is germane to them.Bitish Airways is seeking brands with a strong heritage which is on par with BA's own brand values.

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Monday, August 17, 2009

  United Airlines and Jet Blue launch twitter exclusive promotions

Tech-savvy fliers who have an account in the micro-blogging site Twitter have a novel method to find last-minute fare deals.

United Airlines and JetBlue have launched Twitter-exclusive promotions - "Twares" in the case of United and "Cheeps" for JetBlue.

JetBlue's main Twitter account has huge numbers of followers. The company set up a new account, "JetBlueCheeps," that publishes news deals every Monday morning. For example, JetBlue is presently offering a $9 one-way fare from Burbank, Calif. to Las Vegas coming Saturday.Customers need to book by 6 p.m Eastern time on Monday in order to ensure that they obtain the deal. JetBlue spokesman Bryan Baldwin stated that their goal was to take advantage of the numerous followers they already had on Twitter.

On the other hand ,United Airlines proffers its twares through its main Twitter account, "UnitedAirlines." Twares,are special, time-sensitive fare offers from United to its Twitter followers. The deals can come at any time and usually expire within a span of 2 hours., so consumers need to be glued to their screens or ensure they have good timing and access their accounts regularly. United Airlines has nearly 31,266 followers in Twitter as of today.

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Thursday, August 13, 2009

  Delta Air Lines faces tough competition from United Airlines

Delta AirlinesThe flights recently launched by Delta Air Lines to Sydney,Australia have turned out to be famous with travelers , who are pleased about the additional choice in nonstop service and bargain basement fares which is as low as $600 roundtrip from Los Angeles.Delta Air Lines is facing solid competition from rival United Airlines.

United AirlinesUnited lately affirmed that it would match any low fare offered by its new-found competitors across the Pacific. In the past, United Airlines only contended with Qantas Airlines of Australia in the clash for market share.James Mueller ,Vice President Pacific region for United Airlines stated that United is strong-minded to match the initiatives of its competitiors and if required , we are even prepared to compete on prices.

The latest flood of seats on the popular LAX-Sydney route is inspiring traffic, but not the kind that airlines dream about to enhance profits as the general business traffic is reasonably down.

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Sunday, August 9, 2009

  Air China launches the country's first business travel card

Air ChinaIn an effort to allure frequent business travelers and to meet the needs of these passenger's ,Air China introduced the 'Air China Business Travel Card'. It is China's first business card travel in the aviation industry.

Air China offers the option of 4 types of business cards, that includes The Distinguished Travel Card, The Clear Travel Card, The Smooth Travel Card and The Easy Travel Card. Passengers can of Business travel can utilize these cards in order to store credit, book tickets, gather frequent flyer miles and make use of complimentary services and these cards come with a credit value that ranges betweeen RMB 20,000 and 300,000.

Air China has launched copious promotions and limited edition versions of the business travel cards.Validity of these promotions are from Aug 6, 2009 to Dec 31, 2009.In order to obtain this Business Card ,travelers can call +86-4008-986-999 and then press 6.After placing the order,the passenger can start using it from Sep 16, 2009. Also,when the card's credit is used up,it can be recharged further.

The various promotional offers include the following:
The initial 99 customers who purchase a limited edition Distinguished Travel Card will be given a complimentary first-class roundtrip ticket to any of Air China's global destinations. The initial 500 customers who purchase a limited edition Distinguished Travel Card will obtain a Gold Phoenix Miles Card.

The foremost 199 customers who purchase a limited edition Clear Travel Card will be given a complimentary first-class roundtrip ticket to any of Air China's domestic destinations.The foremost 1000 customers who purchase a limited edition Clear Travel Card will obtain a silver PhoenixMiles Card.

The initial 299 customers who purchase one of the 10,000 limited edition Smooth Travel Cards, will be given a complimentary economy roundtrip ticket to one of Air China's domestic destinations, plus complimentary credit of RMB 3,000.

The opening 399 customers to purchase one of the 200,000 limited edition Easy Travel Cards, will obtain a complimentary economy one-way ticket to one of Air China's domestic destinations, plus complimentary credit of RMB 1,000.

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Wednesday, August 5, 2009

  Airline industry hits its lowest phase

Airline Executives have reported that the airline business has hit the lowest during May and has stayed the lowest.

Continental Airlines have reported that the airlines have lost around $213 million in the quarter ending June 30.The airlines executive have conveyed that the airlines business hit bottom in May and has remained the same since then.The Continental Airlines Inc. president and chief operating officer Jeff Smisek reported that it is unsure when a recovery would happen .He said that though unit revenues have become stable,it is unpredictable for how long the business will remain in this stagnant state.The rate of business growth also cannot be predicted. Added to this, he stated that the success is associated with the return s obtained in business travel,which has not shows any signs of improvement till now.

Southwest Airlines Co.chairman and chief executive Gary Kelly reported that the major issue is with business travel airlines.there is every possiblility that the business travel will not pick up in the near future.Business travel was unable to pick up in the years 1991 or 2001,but now the recession seems to be hit in a much harder way.

Scott Kirby,US Airways president stated that with some subjective evidence that there are some improvements taking place in the airline.He also mentioned that the state of the business was not as bad as it used to be.To confirm this ,he said that, the revenue of US Airways dropped from 30 to 35 percent in the year 2009 for May. But in June and July the drop in percent was just 28 and 22 respectively. Besides, unit revenues were seem to improve in business markets such as US Airways Shuttle.

Scores of analysts assumed that the quick drop in crude oil and jet fuel prices in the 2nd half of 2008 would fetch big profits for carriers in 2009, especially with the reduction in airline capacity.But the economic crisis last fall and the ongoing recession have injured travel demand far more than industry experts anticipated.The only carriers among the cluster to display net profits exclusive of special charges and one-time charges are low-cost carriers, chiefly those paying attention on leisure traffic: AirTran Holdings Inc, Southwest, JetBlue Airways Corp., and Alaska Air Group Inc.

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Sunday, August 2, 2009

  Business class travel market upturn in British Airways longer than 5 years

British-Airways-Business-ClassThe head of British Airways'American operations has conveyed that the market for business fall which had been plummeting from the beginning of the recession would take atleast 5 years to recover.First class as well as business class has conventionally been the source of revenue of British Airways.But the recession has caused the alter of the situation in a drastic way.Simon Talling-Smith,the executive vice president for British Airways in the Americas held that most of the businesses were reducing their travel costs and most companies were shifting their senior employees to economy class or depending on video conferencing instead of in person meetings.

Simon Talling Smith
Simon Talling-Smith said that it will take British Airways longer than 5 years before the complete value of the business market returns.Presently businesses are accommodating more people into economy class. He also added that the business and first class business volumes have dropped by around 15 per cent, but economy volumes have sinked by around 1 per cent for the 6 months till June 2009. He concluded that it was clearly visible that a definite number of people who travelled in business classes are shifting to economy classes.

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