Corporate e-Newsletter - June 2008

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BA ups fuel surcharge on all flights

British Airways has blamed continuing high oil prices for a further hike in its fuel surcharge to a maximum of £218 return for long haul.

The surcharge for short haul flights has gone up by £3 per flight (£6 return) from £13 per flight (£26 return) to £16 per flight (£32 return).

The fee for long haul flights of less than nine hours has increased by £15 per flight from £63 per flight (£126 return) to £78 per flight (£156 return)

The surcharge for long haul flights of more than nine hours has risen by £30 per flight from £79 per flight (£158 return) to £109 per flight (£218)

BA said it is also increasing its fuel surcharges by similar levels in markets outside the UK.

These are the latest in a round of fuel surcharge increases imposed by the airline - the previous hike was in April.

Calculating the real cost of flights is becoming ever more difficult, what with complex fare structures, boarding and hold baggage fees, taxes and fuel surcharges, so it really does pay to let the professionals research all the possibilities and advise you on the best options for your journey and needs.

Virgin Atlantic may load Upper Class fuel surcharges

Speaking during a trip in support of tourism to Kenya, chairman Sir Richard Branson said the airline wants to make surcharging fairer across different types of ticket. He explained that passengers in Upper Class cabins effectively produce a carbon footprint double that of an economy-class customer. No figures have been finalised for the new proposals. This would reduce the fuel charges for economy class passengers below the level they would otherwise have to pay.

He went on to say that the airline industry had a responsibility to try to tackle the problem of CO2 emissions, and Virgin was putting resources into clean energy and trying to combat global warming. He believes the aviation industry will see more airlines collapse in the current economic climate. He predicted the cost of oil would hit $200 a barrel by 2010, which would force many under-performing airlines with older fleets out of business.

He also said Virgin Atlantic was desperately in need of the 787 Dreamliner aircraft in order to expand to destinations such as Toronto and Bangkok. Virgin is also investing in developing environmentally friendly operations.

Ryanair extends charges for priority boarding

Ryanair has extended its £4 charge for priority boarding to passengers who check in online for bookings, from June 3. Until then, only passengers who check in at the airport have been charged for priority boarding, while those who checked in via the airline’s website got the service free of charge.

Ryanair said the free offer was only a temporary measure to encourage people to make use of online check-in. It said it also meant that the airline frequently sold out of its allocation of 80 priority boarding seats.

Ryanair’s Lorna Farren said: “These new charges will make the sale of priority boarding fairer for all passengers. Because of the success of our web check-in facility (which allows passengers to avoid airport queues) many flights are now selling out all of our allocation of 80 (40%) of priority boarding seats. By charging the same fee for priority boarding for both web check-in and airport check-in passengers, we hope to ensure that priority boarding seats will always be available for sale at airports for family members and groups who wish to purchase it.”  

Europe gives thumbs up to mobiles on aircraft

The European Commission has given formal approval to the use of mobile phones on aircraft flying in European airspace, and the UK telecoms regulator Ofcom has just announced it would allow airlines to offer mobile phone connections on board.

This follows six months of consultation by the European regulator and it  is understood that the first service could be launched later this year.

EU telecoms commissioner Viviane Reding said: "One regulatory decision for all European airspace was required for this service to come into being.  We expect operators to be transparent and innovative in their price offerings. If consumers receive shock phone bills, the service will not take off," she added.

She said the price would be capped for people making calls from the ground and those calling from the air should not be over charged either.

Phones will have to be switched off on take off and landing, with usage being restricted to flight above 3,000 metres. Air France is already testing the service on some routes, while Ryanair and British Midland are expected to offer services later this year.

The European Aviation Safety Agency still needs to approve any hardware that would be installed on aircraft to ensure it does not interfere with other systems.

When you need to have a meeting, you can have it “green.” Remember, it will not cost you more than a traditional meeting. The measures that are an essential part of green meetings include energy as well as water conservation and the inclusion of organic food.
In the USA, the Republicans and Democrats have been celebrating their presidential nominees at conventions that are billed to be the greenest in the histories of their parties. At the time of writing, the planning committees for the Republican National Convention in Minneapolis, Minnesota, were optimising energy efficiency for the event.

Democratic National Convention in Denver, Colorado will use recycled confetti and biodegradable balloons for greeting the attendees. Other “green” features include the recycling of the convention hall carpeting, and painting the walls using environmentally friendly materials.

Another possible measure is the reduction of the use of paper; this is possible by enhancing the use of electronic communication. Organizers can also ensure the use of fuel-efficient vehicles for transfers and associated travel.

Environmental Awareness and Meetings go hand in hand. It is known that meetings and conventions, if held without sparing a thought for the environment, can result in a large carbon footprint from air travel, waste from disposing of the trade show exhibits after the events and paper consumption on a large scale. The good news is that more and more businesses are now looking forward to incorporating greener practices.

Contact our specialist conference staff for advice and ideas about your next big meetings, so benefit from their experience and expertise in venue finding and arrangements, to optimise your budget and the success of the event.

American Airlines is to introduce a US$15 fee for domestic passengers checking one piece of luggage into the hold.

The charge, which is effective for tickets purchased on or after June 15, comes just weeks after the carrier joined United and Delta in charging passengers for every second piece of checked luggage. AA has also increased charges for other services, including oversized bag fees.

The carrier has also hiked fees for certain other services, ranging from reservation service fees to pets. These mostly range from $5 to $50 per service, and estimates that new and increased fees will generate several hundred million dollars in incremental annual revenue.

American Airlines in the US is cutting domestic capacity, retiring 75 aircraft. Reductions to the domestic flight schedule, include a mainline domestic capacity reduction of 11% to 12% in the fourth quarter of the year. The capacity changes will result in workforce reductions at both American Airlines and American Eagle and could result in facility closures or facility consolidation, the company warned.

The cuts come against a background of the US airline industry recording a first quarter pre-tax loss of $2 billion and the fact that eight US airlines that have filed for bankruptcy protection this year, including five that have ceased service.

The new charges are a direct result of soaring fuels prices – AA says that a US$10 increase in the price per barrel of oil costs the airline an extra US$800 million annually. It will be interesting to see whether rival carriers follow suit, in what is effectively driving them towards the low-cost model pioneered by airlines such as South West, Ryanair and Easyjet.

London City Airport’s cramped departure lounge now has 250 extra seats as a result of the closure of the airport’s Meridian Business Centre and as part of a £30 million investment in new facilities at the airport.

As a part of the changes, the airport will also offer free wireless internet access to all passengers and will install 12 common use self-service (CUSS) kiosks which passengers can use to check in on a number of airlines including VLM, KLM and Swiss.

Melanie Burnley, the airport’s general manager, customer services and security, said: “The majority of passengers at London City Airport are frequent fliers who will appreciate the timesaving that the CUSS technology offers. We are keen to continue to offer the fastest and most efficient service to a standard that passengers using London City Airport have come to expect.”

Frequent fliers demand a premier service and London City Airport has grown in leaps and bounds since its opening in 1987 justifying this further investment.

 

ATOC is introducing new simplified names for rail fares across the National Rail network.
 
The new names bring together commonly used Single and Return fares into three categories: 

1. Advance:     Launched 18th May
2. Off-Peak:    Launching 7th September
3. Any Time:   Launching 7th September

This will make it easier to buy the best value ticket for your journey.
 
The new names describe when you can buy or use a ticket and will apply to Single and Return fares. 

Advance Fares - Buy in advance, subject to availability.
These are Single (one-way) fares offering great value for money on many longer distance journeys. You must book in advance and travel on a specific train service.
 
 
Off-Peak - Buy any time, travel off-peak.
These are cheaper fares for travelling when it's less busy, so they have restrictions on when you can and can't travel. Where there is more than one Off-Peak fare for a journey, the cheaper fare with more restrictions will be named Super Off-Peak.
 
 
Anytime - Buy any time, travel any time.
These are the most flexible fares as there are no time restrictions on when you can travel. Perfect for people who need complete flexibility.

These new simplified fares will be available on our sophisticated UK rail computer system, and we will be able to advise you on the best fares for your trip, from the moment the new fare structure is made available to the public.

Checking rail fares can be quite complicated, taking into account different routings and combinations of rail company sectors, so do contact our consultants who will be pleased to advise you how to get best value.

Airbus has said it was struggling to increase production, and needed more time and resources to do so. As a result it would deliver 12 aircraft in 2008 despite originally planning to make 13. In 2009, the company said it would make 21 A380s, compared to previous plans to deliver 25.

The manufacturing delays to the world's largest passenger aircraft could have greatest impact on Emirates, which has ordered more than any other airline.

Both British Airways and Virgin Atlantic have orders for the A380, but they will not be delivered until 2012 and 2013.

In March, the first A380 in service was flown into London's Heathrow by Singapore Airlines.

At current oil prices, several large and small U.S. airlines will default on their obligations to creditors beginning at the end of 2008 and early 2009, according to a study issued by AirlineForecasts, LLC and the Business Travel Coalition.

The study shows that at $130/barrel, oil prices will increase yearly airline costs by $30 billion, while airlines will be able to generate only $4 billion in fare increases and incremental fees. 

If oil prices stay anywhere near this level, all major legacy airlines will be in default on various debt covenants by the end of 2008 or early 2009, the study suggests.

Earnings for the group of major US airlines, when one-time reorganization charges are removed, were less than $4 billion in 2007, the only year of profitability this decade. The group could lose as much as $9 billion over the next 12 months if the current range of oil prices holds.

In the US, airlines are the primary source of inter-city transportation, critical to national and local economic development, the flow of human capital, movement of just-in-time parts for manufacturing, perishable food and other goods critical to our economy. This situation will therefore seriously affect the economic well-being of the USA.

In Europe we are not quite so reliant on the Airlines to support our whole way of life, but the economic pressures on them, will be similar and many airlines can be expected to hit real financial hardship, unless oil prices fall quite soon and rapidly.

EasyJet's first-half losses have more than trebled amid soaring fuel costs. Losses hit £57.5m for the six months to the end of March, including £9.1m of costs from its purchase of GB Airways. A year ago they were £17.1m.

But it’s not just the budget airlines that are suffering. BA has also seen a dip in its shareprice in the wake of the fuel price hike. And the airline has admitted passengers are deserting it following the Heathrow Terminal 5 fiasco. BA said passenger numbers fell 7% last month after the disastrous launch of its new £4.3bn base. Analysts said the airline has lost around 300,000 customers since March

It will be interesting to see how well the airlines cope with the continued buffeting. With the twin pressures of increased costs, and the ongoing credit crisis hitting customers’ pockets, it may not just be the weaker airlines that face major challenges in the difficult times ahead.

It is to safeguard our clients from the loss and inconvenience of finding tickets bought in good faith are suddenly made worthless, that Medway Travel automatically insures its client’s flights against airline failure.

London City Airport is the UK's leading business airport with eleven airlines serving 33 destinations across the UK and Europe (spring 2008) and connections to the rest of the world through major European hubs.

The only airport actually in London, London City Airport is just two miles from the site of the 2012 Olympic Games; three miles from Canary Wharf and six miles from the City of London. Passengers travelling to and from the airport enjoy fast transfers on the Docklands Light Railway (DLR) with a journey time of 22 minutes to Bank and 14 minutes to Poplar (connecting to Canary Wharf). London City Airport experienced record growth in 2007 with over 2.9 million passengers travelling through the terminal. This figure represents a 23 per cent increase over 2006.

The airport’s location on the doorstep of London’s financial district is considered vital to business and plays an integral part in keeping up with the growth of the UK’s capital city. London City Airport receives considerable support from the business community who recognise the convenient location and ease of use with faster check-in times than any other London airport.

The airport recently made headlines across the globe as British Airways announced its first business-class only transatlantic service to New York on the Airbus A318. The new service will launch in 2009 and will be the first ever transatlantic scheduled flight from London City Airport. It is also the first time the new Airbus A318 will operate on from the airport.

In line with the increase in passenger numbers and new routes introduced by major airlines, London City Airport has invested some £30 million in constructing four new aircraft parking stands. The airport's departure lounge has also been reconfigured and expanded to allow these additional passengers to be accommodated. Both projects were completed in May 2008 with the new concept Bar Ten 28 due to open in early June 2008.

In August 2007 London City Airport submitted a planning application to London Borough of Newham seeking an increase in flight movements to 120,000. This increase will create an additional 1,000 jobs at the airport site. London City Airport is already the largest private sector employment site in Newham with over 2,000 people, mostly from the local area, in full-time employment as a result of the airport. Further, following the Government's Aviation White Paper which requires airports to make maximum use of existing runways, London City Airport’s Master Plan sets out its growth and development plans to 2030.

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 the cost of the airfares will be, and the greater the selection of hotel accommodation available.
We would also suggest you take a look at our website Trade Fairs page  from time to time, to help with your forward planning.

JULY 2008

27th – 29th Düsseldorf, GERMANY
CPD Düsseldorf: Collections’ premiers Düsseldorf Worldwide the biggest fashion fair for women’s, men’s and children’s clothes

27th – 29th Düsseldorf, GERMANY
HMD Herrenmode: International menswear exhibition

27th – 29th Düsseldorf, GERMANY
BODY LOOK and bodytex: International Trade Fair for Body, Beach and Legwear

SEPTEMBER 2008

3rd – 5th Shanghai, CHINA
World of Food China: International Exhibition & Conference for the Food & Beverage Industry

3rd – 5th Shanghai, CHINA 
International FoodTec China: International Exhibition and Conference for Food Processing and Packaging,
Ingredients, Beverages, Cooling and Refrigeration

10th – 13th Moscow, RUSSIA 
Shop Design Russia: International Trade Fair for Shopfitting, Lighting Technology, IT Systems and
Retail Marketing

17th – 19th Suntec, SINGAPORE
HOPSPIMedica ASIA: International Exhibition on Hospital, Pharmaceutical, Medical & Rehabilitation
Equipment & Supplies

28th – 1st Oct Düsseldorf, GERMANY
InterCool: International Trade Fair Frozen Food, Ice Cream, Technology

28th - 1st Oct Düsseldorf, GERMANY
InterMopro: International Trade Exhibition for Dairy Products

OCTOBER 2008

6th – 9th Melbourne, AUSTRALIA
Ausplas: Largest & longest-running trade event for the plastics industry in the Southern Hemisphere

15th – 17th New Dehli, INDIA
International Foodtec India: India’s No 1 Trade Fair for Food Processing & Packaging, Ingredients, Beverages,
Cooling and Refrigeration

15th – 17th New Dehli, INDIA
Dairy Universe India: International Exhibition for the Dairy Industry 

21st – 25th Düsseldorf, GERMANY
glasstec: International Trade Fair with Glass Technology Live – Special – Show & Symposium

NOVEMBER 2008

19th – 22nd Düsseldorf, GERMANY
MEDICA: International Trade Fair with Congress World Forum for Medicine

JANUARY 2009

11th – 14th DUBAI
Arabplast: International Plastic & Rubber Industry Trade Show

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

One of the most popular five star hotels located in the heart of Amsterdam, and one of the most luxurious hotels of the world, NH Grand Hotel Krasnapolsky, has attracted thousands of customers from all over the world with its impeccable service and world-class accommodation facilities.

The hotel has easy access to the city’s sightseeing spots like the museums, cinemas, department stores, shopping malls and many other fantastic venues. The hotel is tucked into the midst of picturesque townscapes and great restaurants.

The history of NH Grand Hotel Krasnapolsky dates back to 1866 when it started as a bar owned by Mr. Krasnapolsky. Now the accommodation includes four hundred and sixty-eight luxurious guest rooms and six junior suites along with restaurants, bars and public spaces.  Business guests will benefit also from the conference and business meeting rooms.

Customer satisfaction has been the primary objective of NH Grand hotel, offering a rich stock of facilities for guests. All the usual 5 star facilities are provided including fitness rooms and a beauty centre.

Food and beverage are an integral part of NH Grand Hotel. You can start with the exotic Dutch cuisines along with fine International delicacies. The Winter Garden will serve you the best items for breakfast and lunch. The à la carte Brasserie "Reflet" is a restaurant serving traditional dishes. Don’t miss out the Middle-Eastern cuisine at The Bedouin. Most of the restaurants open at five in the evening and stay open until eleven at night.

This property is great for business visits and meetings, but also for those weekend breaks, when you feel like a relaxing change.