Corporate e-Newsletter April 2007

Congratulations to Ray Humphrey – Mondi Packaging, who won our eNews subscribers' prize in our 2007 1st Quarter draw. Every quarter we draw a winning name. The odds are much better than winning the lottery, so anyone who has not subscribed to our free eNews, now is the time to be in with a chance of winning the subscribers' prize draw for the 2nd Quarter 2007!

The voucher certificate will have a value of £100, redeemable against any form of holiday (combination of travel and accommodation) booking made through us to the value of £500 or more, and will be valid for a period of 18 months from the date of issue. It will be transferable, providing the winner advises Medway Travel of the name of the eventual recipient.

From a City break to a Cruise, from an all-inclusive package to a tailored holiday, the choice is yours. We have a massive range of outstanding holidays to offer and a team of consultants highly qualified to research and advise on all aspects of your trip. The chances of your being the lucky winner in the next 12 months are better than 1 in 500, so the very best of luck!

Bmi regional has exposed a loophole in the new rules over Air Passenger Duty so that all of its passengers – business and economy - will pay the lower rate.

According to a notice issued by the airline, the airline has removed the cabin dividers between business and economy class to create just one cabin.

Although business passengers still benefit from seating at the front, better catering and lounge access, they will now pay the same duty as economy passengers.

Under the APD rules, passengers travelling with airlines which have only one class of travel - even airlines like Silverjet, Eos and MAXjet which are all-business class – pay the lower rate of APD.

However, passengers flying in premium economy cabins on two or three-class airlines are liable for the higher rate.

More airlines say they are considering following bmi regional's lead over the 'class anomaly' of Air Passenger Duty.

A spokesman for the Treasury said "If the aircraft is separated into different areas and has different seats, in a different configuration, and are marketed differently, this counts as a different class."

"It's also for two reason," he said. "Firstly because the seats are more expensive and someone paying £5 on a £3000 seat is an insubstantial amount of money, so they need to pay a higher level. Secondly, there should be a higher price for business travel to give a greater environmental signal."

But when reminded of the fact that business passengers on all-business class airlines pay the lower rate, while holiday makers on charter airlines who pay slightly more for more leg room pay the higher rate, he said: "We're aware of the concern about this anomaly and discussions are taking place with the industry. All I can say is that we keep all taxes under review."

This sort of confusion is the inevitable outcome of ill-considered legislation, and the government richly deserves to be taken to task for the anger and disquiet it has generated through levying the tax retrospectively on those who had already bought their tickets. It represents the thin end of a seriously thick wedge into a basic principle of our way of life. We must surely all be confident that, having made a purchase, the cost to us of that purchase will not later be increased.

Imagine the outrage if a shop were to try such a scam on the public! If you agree. please do write to your MP. This is no way to foster trust and confidence in the future nor maintain a vibrant economy!

Air France expands at London City

Air France plans to expand its presence at London's fast-growing City Airport (LCY) by launching five new routes. At the same time it will link with Scot Airways jointly to operate flights on a further three routes.

Air France is using City Jet (which it now owns) to add services to Madrid, Milan Linate, Geneve, Zurich and Nice. The Scot Airways services will continue, as at present, to Edinburgh and Dundee with the addition of a new route to Belfast's downtown Harbour Airport.

The City Jet flights will be operated by 95-seater RJ85 jets (an updated version of the ubiquitous BAe146), whilst Scot Airways will use mainly its existing Dornier 328 turbo-props. All these routes, with the exception of Nice and Belfast Harbour, are already served by other carriers as well.

So far Air France has not made available details of schedules and fares. However prices are expected to be competitive with the British Airways, Swiss and Air One who already serve one or more of these cities from LCY.

Air France's existing flights from LCY to Dublin and Paris Orly will continue. The carrier has yet to decide whether or not to continue its once a day link with Paris CDG for the summer season.

London City to Copenhagen - Three times a day

In response to increased demand and desire to offer customers more
flexible solutions, SAS have announced further expansion of their UK network,
with the launch of an additional service from London City to Copenhagen.
_
From 26th March 2007 SAS will operate an additional flight from London City Airport to
Copenhagen. This flight will complement their existing six flights a day service from Heathrow to the
Danish capital and will bring their weekly departures from London to Copenhagen to 55.

Full Business Class and Economy Class services will operate on all flights, in addition to their
unique premium economy service, Economy Flex.

All flights will be operated by a 76 seater Q400 aircraft.

Please contact us to make all the arrangements for your business trips, including hotel, car rental, airport parking and any other requirements you may like to make your trip less stressful and tiring.


VLM raises London City-Manchester frequency

VLM Airlines is raising the frequency of its flights between London City Airport and Manchester to nine return trips a day, on weekdays.

An additional return flight started on March 1 when the schedule was altered to offer a greater number of departures at peak times.

The airline claims to have carried more than 113,000 passengers on the route in 2006, with around 80% flying on business.

VLM is understandably pleased that, in spite of the fierce competition on this route, it has achieved a great deal of recognition amongst the business community and extra demand justifies this additional service.

Lufthansa Quick baggage check-in.

Passengers with baggage no longer need to wait at the check-in counters but can simply check in at one of the Lufthansa Quick Check-in machines available at London Heathrow, London City, Birmingham, Manchester and Edinburgh (bmi machines).

The screen will then show the number of a Quick Drop counter where baggage can be handed in without long waiting times.

If you or your colleagues have plans to visit any overseas trade fair in the future, please contact us as soon as possible about your arrangements for travel and accommodation, as the earlier we can make the bookings for you, the lower will be the cost of the airfares, and the greater the selection of hotel accommodation. We would also suggest you take a look at our website Trade Fairs page from time to time, to help with your forward planning.

Australia - Sydney - CBIT: 1st - 3rd May 2007
Australia – Adelaide – Gift Trade Fair: 6th – 8th May, 2007
Australia – Sydney: HOSPIMEDICA: 13th – 15th May, 2007

Canada – Toronto – PLASTEX: 1st – 3rd May, 2007

Germany – Cologne – INTERZUM: 9th –12th May, 2007
Germany – Munich – BIJOUTEX: 30th June – 2nd July, 2007
Germany – Frankfurt – TENDENCE: 24th – 28th August, 2007
Germany – Dusseldorf – GDS (shoes): 14th – 16th September, 2007

Hong Kong - GIFTS AND PREMIUM: 28th April - 1st May 2007

Russia – Moscow – WIRE RUSSIA: 21st – 24th May, 2007
Russia – Moscow – SHK : 28th – 31st May, 2007
Russia – Moscow – CPM: 5th – 9th September, 2007

Saudi Arabia – Riyadh – SAUDIBUILD/STONE: 12th – 15th November, 2007

Singapore - SEMICON: 8th - 10th May 2007
Singapore – ENVIROASIA: 27th – 30th November, 2007

Switzerland – St. Gallen – NANOEUROPE: 11th – 13th September, 2007

Thailand – Bangkok – HOSPIMEDICA: 12th – 14th September, 2007

U.S.A – New York – ACCESSORIES: 7th – 9th May, 2007
U.S.A – Las Vegas – GLDA: 29th May – 1st June, 2007

Also, don't forget, if there are a number of you travelling together, there are major savings possible for groups of 9 or more, when we negotiate group rates with the airlines. Click here to see more about our Group travel services.

Heathrow Terminal 3 is to be redeveloped this year as part of a decade-long, £6 billion upgrade of the airport's facilities which includes the new 'Heathrow East' terminal and Terminal 5. The latter is on schedule to open in March 2008..

The London airport's operator BAA claims the work will "significantly improve the passenger experience", reduce traffic congestion, develop better pedestrian routes and improve security in front of the terminal.

Kerbside check-in capability will be introduced and a glass atrium-style extension will give more space for general check-in.

A new drive-through facility for Virgin Atlantic Upper Class passengers will be part of the scheme which is due to be completed by the end of the year.

BAA Heathrow’s CEO said that the re-development would take place this year and that the terminal's improvements and forecourt were due to be ready by the end of 2007.

We are pleased to believe, as a result of all our regular quality surveys, that our clients consider Medway Travel’s attitude to service is quite different from that reported to be the case with the majority of Travel Management Companies.

It seems that half of the UK's SME market has lost faith in the corporate travel industry and one in four FTSE 500 companies has turned their backs on traditional travel management companies.

The findings come from the UK Companies Business Travel Report, commissioned by a major online booking portal.

According to this recent in-depth research, almost half of British firms do not believe that their agents are truly independent and do not give them best advice. Of the companies that use a single TMC, 45% believe that their agent steers them towards preferred suppliers rather than seeking the best deal.

Medway Travel’s clients on the other hand, unanimously consider that we are good or excellent in this respect. Further results of the report suggest:

* Only 5% of companies expect to receive advice on best prices/deals.

* Only 9% of UK companies expect to receive advice on visas, travel documents and currencies.

Medway Travel’s surveys with our clients suggest that we are seen as very good to excellent on these issues.

*Just 1 in 3 SMEs receive advice on the suitability of hotels

*Only a third of SMEs receive best room rate advice

*Only 42% of SMEs get advice on travel routings

*Less than a quarter of SMEs receive advice on car hire.

Medway Travel staff find these figures to be quite shattering, as it is our belief (and please contact us if you disagree, since we are always keen to learn of any weaknesses, so we may correct them) that we give 100% of our clients all the above advice and assistance for every trip, when it could be remotely relevant.

The report also found that many companies are lax in managing and overhauling their travel policies, with a quarter of all British companies not having reviewed their travel policies in the last three years. Medway Travel is always pleased to advise and help clients both to establish and to update their travel policies. We are then able to assist in ensuring compliance.

Any readers not already using our services, but identifying with any of the unsatisfactory statistics in the above report, should contact us about the ideal travel service you require and we will be pleased to discuss how we might best be able to fulfil them to your complete satisfaction.

Fly Me, the Swedish low-cost airline that flies from London Stansted, has filed for bankruptcy.

After financial pressure from its bank, the Board decided there was no alternative but to stop all ticket sales and to suspend all flights, leaving all aircrafts on their home bases, and to file for bankruptcy.

The board of Fly Me Sweden AB wants extended its gratitude to its management and all the FlyMe staff, who had served this new airline, with great dedication. "Finally, we are sorry for all inconvenience caused to persons who will not be able to travel as planned with FlyMe."

Sterling Airlines stepped in to help passengers on Fly Me routes.

Passengers stranded abroad with FlyMe, were able to fly back home on Sterling, free of charge, up until March 11, depending on availability.

It also offered all FlyMe passengers booked on international routes, a discount of SEK 200 on Sterling's routes if they wish to re-book.

Sterling CEO Almar Örn Hilmarsson said: "It is always unfortunate when a company goes bankrupt and has negative consequences for its customers. We want to help as much as we can."

In spite of this support from a fellow airline, many of Fly Me’s passengers will have been left out of pocket and seriously inconvenienced – unless they were covered by airline failure insurance.

Our clients will know that we arrange for all air tickets we issue to be covered by an AFI policy which will reimburse clients up to £1500 per ticket, should they have bought a ticket and be unable to fly all or part of the trip as a result of an airline going broke. This is paid for by a nominal premium of £2 per air ticket, made possible only due to the very large numbers involved

The Federation of Tour Operators has launched a legal challenge against the Government over Air Passenger Duty (APD).

The FTO claims there are two principal challenges to its legality.

Firstly, APD is in contravention of Article 15 of the Chicago Convention on International Civil Aviation, which says the UK Government cannot impose charges on aircraft solely for the right of transit over, or exit/entry from or into the UK from a fellow state.

"Charges are only permitted if they are cost-based in relation to the provision of a service, such as use of airports services. APD is not levied for any such service and is simply a tax to raise revenue for general government spending," said the FTO.

It said the article, which was incorporated into EC law in 2004, is illegal and should be withdrawn with immediate effect.

Secondly, the FTO argues that there has been a breach of the Human Rights Act, particularly Article 1 of the first protocol of the European Convention on Human Rights

"The unsatisfactory manner in which APD has been introduced interferes with the legitimate property rights of tour operators, depriving them of income to which they are legitimately entitled," it said.

If successful, the judicial review will mean the complete withdrawal of the tax and leave the Government open to claims by airlines, and their customers, for the repayment of over £2 billion that has been collected since 2004

"When the tax was first introduced in November 1994, and for all subsequent increases, the industry was given 11-12 months in which to inform customers and to include it in brochures.

"On this occasion the Government chose not to do this, allowing instead just seven weeks lead-in time before its introduction on February 1. As a result, this retrospective tax on the flights of the four million customers who had already booked their holidays will have to be borne by tour operators at a cost of some £50 million.

FTO director general Andrew Cooper said: "This substantial legal action has been launched with great reluctance. APD - which since its introduction has raised some £12 billion – is a general tax, and not one which is used to support transport or environmental initiatives.

"It emphatically is not an effective environmental measure. Indeed as a tax levied on passenger numbers not aircraft, its effects are perverse in that it penalises environmentally friendly airlines with high load factors, and rewards those with half empty flights.

"In terms of climate change, our legal action on APD should not be misunderstood. We are acutely aware of the importance of aviation meeting its environmental responsibilities. This is not best achieved through passenger levies or new fuel taxes but, in place of these, through aviation joining the EU emissions trading scheme at the earliest opportunity and at the appropriate levels.

"We will not allow any post-rationalised 'greenwashed' claims for APD to muddy the issue. Our legal action is being generated simply by the way in which the Government chose to introduce the new APD rates. It was unfair on tour operators and we will use all means to defend the sector from the entirely avoidable consequences."

From February 2, APD was doubled so that passengers now pay £10 for economy class fights to Europe, £20 for business and first-class flights to Europe and £40 for economy and £80 for premium economy, business and first-class long-haul flights.

See also our article in this issue, on how bmi is making a mockery of this iniquitous tax by exploiting the sloppy way in which it was introduced

Medway Travel has access to one of the largest portfolios of specially negotiated contract fares open to any travel agent in the country. This means we can - subject to availability at the time of booking - offer unusually low prices for many long-haul and certain European routes.

This month's examples are:

It may not appeal to green-minded travellers, but there's no disputing the fact that a helicopter can whisk you from one of New York's major airports to Wall Street in a matter of minutes.

So to save its customers valuable time, Continental has teamed up with US Helicopters to transfer passengers between its Newark hub and the Manhattan Heliport on Wall Street.

The transfers operate on weekdays between 0640 and 1830 and take a mere eight minutes. A one-way trip costs $159 plus security fees. Passengers' luggage is also transferred between Newark and Wall Street by helicopter.

The service is also available when departing Manhattan with passengers able to check themselves and bags through to their final Continental destination.

The transfers are open to all Continental passengers whether travelling on international or domestic routes.
In another development, Continental has now fitted its 41-strong fleet of B757s (these operate most of the carrier's transatlantic flights) with AVOD (audio visual on demand) in the business class cabins. It now plans to install AVOD on its fleet of B777s.

There is no doubt that, for the busy executive, the travel industry is developing fast. We are able to ensure you take advantage of all these new developments as they become available, so do contact us to keep you informed and make your travel arrangements.

What better place than Norway to bring your delegates, clients or employees for a break to get away from hectic everyday routine.

It is fast becoming the new and popular exotic destination with a plethora of opportunities to offer the well-travelled jaded client.

With its hi-tech industry and breathtaking nature, Norway is a favourite destination for companies that want to take advantage of fresh and unspoilt nature, while having all of the comforts of a modern destination.

The choices are almost limitless. For something even more unusual, join a killer whale safari or drive your own team of excited huskies over the snow-clad mountains.

We can offer the following services:

• assist in finding the most suitable conference venues
• make all the local arrangements in conjunction with local partners 
• make preliminary reservation of conference facilities and accommodation 
• co-ordinate organisers’ inspection visits
• provide generic promotional material.

For more information, contact our Groups and Events specialists

On a plane bound for New York, the flight attendant approached a blonde sitting in the first class section and requested that she move to coach since she did not have a first class ticket. The blonde replied, "I'm blonde, I'm beautiful, I'm going to New York, and I'm not moving."

Not wanting to argue with a customer, the flight attendant asked the co-pilot to speak with her. He went to talk with the woman asking her politely if she would please move out of the first class section. Again, the blonde replied, "I'm blonde, I'm beautiful, I'm going to New York, and I'm not moving." The co-pilot returned to the cockpit and asked the captain what he should do.

The captain said, "I'm married to a blonde, and I know how to handle this." He went to the first class section and whispered in the blonde's ear. She immediately jumped up and ran to the coach section mumbling to herself, "Why didn't anyone just say so?”

Surprised, the co-pilot asked what he said to her that finally persuaded her to move from her seat. "I simply told her the first class cabin wasn't stopping at New York”, he replied.