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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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Tuesday, July 28, 2009


  Tremendous growth expected in Business Travel

National Business Travel AssociationBusiness Travel in China and Japan is expected to increase at a huge pace within a span of 5 years.The development in this sector is said to exceed even the US Growth. Additionally developing countries like India,Vietnam,Iran and Indonesia will also witness a major growth within the timeframe of 5 years.

The above findings are a result of a study conducted by National Business Travel Association (NBTA) as well as travel management company Egencia.The United States symbolizes a major segment of global business travel spend with $261 billion or 28% of the world total, next being China at 10% and Japan at 8%.

Regardless of the U.S. position as the worldwide leaders in business travel spend, Asia Pacific is assured for extensive growth over the next five years, while U.S. growth is expected to decline.China's spend, at $93.8 billion in 2008, has tripled over the elapsed 10 years and is anticipated to go ahead in market growth between 2008 and 2013, followed by Japan and South Korea. Measured in terms of the dollar boost in business travel spending,the U.S. is estimated to be fourth in development, after India.

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Tuesday, June 30, 2009


  Aeroflot Terminal to Open in Winter

AeroflotAeroflot will move all of its flights to Sheremetyevo's glistening new Terminal 3 before switching to its winter schedule this year, CEO Vitaly Savelyev told reporters Friday after showing off the facility to visiting airline executives.

The long-awaited hub will serve as the SkyTeam alliance's base in Russia and is intended to rescue Sheremetyevo from its reputation as the capital's least modern airport.

Workers loaded dummy baggage onto conveyors at the check-in Friday, while others mopped floors or installed lights in the round-domed arrival hall. The terminal has been operating on a trial basis since April, Savelyev said. "Our goal is to set the winter schedule from the new terminal."

Aeroflot Airlines agreed to build a new hub as a condition for its membership in SkyTeam. Construction began in 2005, and the opening date has been pushed back several times.

"Architects attempted to create the image of a swan, which would be the symbol of Russia, which is protecting passengers with its wings," Savelyev said of the terminal's structure.

The hub's primary customers will be Aeroflot and its SkyTeam partners. Some executives, including Korean Air chief Cho Yangho and Air France head Pierre-Henri Gourgeon, toured the terminal Friday. "It looks impressive," said Leo van Wijk, chairman of SkyTeam's governing board.

The alliance wants to develop its presence in Russia and the Commonwealth of Independent States, he said, and a modern hub would make Moscow more attractive as a layover stop.

To expand its coverage, the alliance is also "in discussion" now with Rossiya Airlines, Van Wijk said. The sides are "not in a state of negotiations," however, which will only happen in consultation with Aeroflot, he said.

"It's impossible for one airline to cover all of Russia," van Wijk said.

State-controlled Rossiya is based in St. Petersburg and flies to 92 destinations in Russia and the CIS. It served 3.5 million passengers in 2008.

Aeroflot will relocate all of its flights from nearby Sheremetyevo 2 and the more distant Sheremetyevo 1, which handles its domestic flights. After the move, Aeroflot will be able to cut the transfer time from domestic to international flights to 60 minutes. International transfers will take 40 minutes.

"We know about the problems in Heathrow. They... won't be repeated," Savelyev said, referring to the hundreds of cancellations and thousands of lost bags following the opening of Terminal 5 at London's Heathrow Airport.

Sheremetyevo 3 was developed by Terminal, a company owned by Aeroflot, VTB and VEB. Savelyev declined to provide investment figures. "It's developed on credit from Vneshekonombank and VTB," he said. "We don't have any problems with the banks."

The hub will be able to handle 12 million passengers per year, or 270 flights per day, 70 percent of which will be international. The 172,000-square-meter terminal is "practically connected" with the railway line from Moscow.

(moscowtimes)

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