Corporate e-Newsletter - March 2008

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In total, 50 of the 90 or so airlines serving Heathrow will change terminals in a series of moves starting with BA's first move to Terminal 5 on March 27. 

BA is to switch more than 90% of its operations at the airport into the £4.3 billion Terminal 5 in two phases, on March 27 and April 30. Its remaining Heathrow operations will move, alongside those of all other Oneworld airlines, into Terminal 3 - the closest of the existing terminals to Terminal 5  on September 17 and in early 2009

Alliance partners American Airlines, Cathay Pacific, Japan Airlines and Royal Jordanian are already based at Terminal 3. Finnair will move there from Terminal 1 and Iberia from Terminal 2, also on September 17, with Qantas following from Terminal 4 in early 2009.

The airlines between them claim to account for more than half of Heathrow's traffic with around 35 million passengers a year travelling on 700 departures and arrivals a day. 

Terminal 3 is undergoing a £1 billion revamp to bring it up to standards similar to the Terminal 5.

Connections between Oneworld member airlines' flights in Terminals 3 and 5 will be as "smooth and seamless" as possible, a statement said. An underground baggage system to be built in a tunnel under the airport's taxiways by 2011 will further improve transfers between the two terminals.

Currently, the standard time for passengers connecting between flights by different airlines at the airport is 90 minutes, but will be reduced to 60 minutes for passengers connecting between:

·       BA flights both arriving at and departing from Terminal 5.

·       Flights by any Oneworld airline both arriving at and departing from Terminal 3.

Connections between Terminal 5 and all the airport's other four terminals will be extended to 120 minutes for the new facility's first full flying season, with the additional time designed to deliver a robust service while customers and employees become familiar with the new building and transfer processes.

With all these changes, clients are strongly advised to look closely at their itineraries and note the departure terminal carefully, before setting off on their trips, as there are bound to be many changes to their normal historic routine arrangements. Our consultants will of course take into account the new minimum transfer  times as they come into effect.

The soaring cost of fuel will continue to make the year "challenging," British Airways announced recently when releasing its latest financial results.

The airline saw pre-tax profits rise by almost 35% to £788 million in the nine months ended December 31, 2007, in spite of fuel costs rising £72 million in the third quarter.

Looking forward, BA said that its fuel costs will continue to rise and are now expected to be up more than £100 million on last year.

Following the crash landing at Heathrow in January involving a Boeing 777, the aircraft has been written off by underwriters and the insurance claim agreed in full, BA revealed.

The airline admitted that prior to Terminal 5 opening this month, punctuality and baggage performance "had remain a challenge" at Heathrow where facilities are old and overstretched.

 

As part of the process of modernising Heathrow and transforming it into a world class airport, BAA has introduced common departure lounges for both domestic and international passengers travelling through Terminal 1.

Traditionally, domestic passengers and international passengers have been segregated for border control purposes.  However, new technology means passengers can enjoy the same facilities whilst still being able to identify the status of individual passengers.  Common departure lounges will also allow the best use of the terminal facilities, airport infrastructure, and will ensure a smoother airport experience.

Common departure lounges will also be used at Heathrow's Terminal 5 when it opens on 27 March 2008. 
To ensure the highest levels of airport securityare maintained, the Department for Transport requires the capturing of photo image and fingerprints of departing domestic passengers. At the gate, this data is reconciled to confirm the passengers' identity and ensures that UK border control regulations are met.

The personal date is encrypted immediately and is destroyed within 24 hours of use in accordance with the UK Data Protection Act 1998. The data capture does not include personal details.

Both Gatwick and Manchester Airports operate common departure lounges and have successfully introduced similar processes.

 

The airline industry has hit out at the shipping industry for its impact on the environment after the leak of a UN study on CO2 emissions.

The study calculates that the shipping industry is responsible for 1.12bn tonnes of carbon dioxide emissions, which accounts for 4.5% of all global emissions.

By comparison, airlines claim emissions caused by aviation amount to just over 650m tones.

”It's about time people woke up to the environmental dangers of shipping,” said a spokesman. “We have been raising awareness on the subject for years, but environmental lobbyists have kept the focus on airlines, using them as an easy target instead of heeding our warnings on other culprits."

The airline industry has taken great strides towards the introduction of environmentally friendly aircraft, such as the Boeing Dreamliner and Airbus 380, both of which use 20% less fuel.  Other industry-wide measures are under way addressing greenhouse gas emissions by aircraft, including a recent flight trial between British Airways and Shell using less polluting aviation fuels.

All the while, the shipping industry seemingly continues quietly to produce almost twice the amount of greenhouse gases, virtually unnoticed.

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:

Economy Fares

Route	Airline	Fare	Taxes
Dubai via Amsterdam	KLM Royal Dutch	108.00	207.90
Bahrain via Amsterdam	KLM Royal Dutch	113.00	207.80
Delhi via Amsterdam	KLM Royal Dutch	113.00	206.70
Mumbai via Amsterdam	KLM Royal Dutch	113.00	222.70
Bangkok via Bahrain	Gulf Air	259.00	169.80
Hong Kong	Oasis Hong Kong	259.00	158.00
Taipei via Rome	Alitalia	399.00	183.70
Seoul via Amsterdam	KLM Royal Dutch	270.00	206.70

Business Class Fares

Route	Airline	Fare	Taxes
Dubai via Bahrain	Gulf Air	864.00	202.70
Bahrain via Frankfurt	Lufthansa	972.00	288.00
Delhi via Bahrain	Gulf Air	1026.00	201.50
Mumbai via Zurich	Swiss Airlines	1004.00	249.30
Bangkok  via Zurich	Swiss Airlines	1242.00	257.60
Hong Kong	Oasis Hong Kong	1248.00	198.00
Taipei	Eva Air	1630.00	183.50
Seoul  via Amsterdam	KLM Royal Dutch	1566.00	290.80

Each month we bring you a small selection of the 3 million such fares, to illustrate the level of fares you can enjoy as a result of our extensive connections and research.

So if your next destination isn't on the above small list of examples, please do contact us. There is every chance we will have a real bargain to offer you!

Bmi regional adds German service from East Midlands

Bmi regional started flights from East Midlands to Cologne/Bonn on February 11.

The service operates daily, except Saturdays, with fares from £49 each way, including taxes and charges.

Bmi is using Embraer jet aircraft on the route and  offers business and economy fares.

Qatar Airways adds Heathrow flight

Qatar Airways is adding a fourth daily non-stop flight between Heathrow and Doha. This will take the airline's capacity between the UK and Qatar up to 42 services a week from March 30.

The flight will be operated with an Airbus A330 aircraft in a three-class configuration of up to 12 seats in First, 24 in Business and 223 in Economy.

The new late afternoon departure from Doha offers passengers more choice to the early morning and lunchtime flights to the London hub. Flight QR017 will depart Doha at 1635, arriving at London Heathrow at 2200. The return flight QR018 will leave Heathrow at 0755, arriving in Doha at 1650.

Qatar Airways currently operates three flights a day to Heathrow, and daily to both London Gatwick and Manchester with a total capacity of 35 weekly services.

By launching this new early evening flight from the start of the summer schedules, business travellers can spend a whole working day in Qatar before catching their flight to London Heathrow.

Passengers from London can also take advantage of the first morning departure from Heathrow and in Doha, connect on to a choice of many of the airline’s flights to destinations further East.

SIA confirms A380 London debut

At the time of writing, the first Airbus A380 mega jumbo to land at Heathrow is due to touch down on March 18. The Singapore Airlines aircraft is due to arrive from Singapore at 15.05 following the airline’s taking delivery of a third of the 471-passenger aircraft.

The inaugural flight is also the first A380 commercial service to Europe. The aircraft will return to Singapore on the same day, operating as SQ 319, departing Heathrow at 18.55, arriving into Singapore at 15.35 on March 19. It will commence regular scheduled services, operating SQ322 daily on the Singapore-London route.

London is the Airline's second A380 destination after the launch to Sydney in October. Passengers holding tickets on flights from March 18 to Singapore from London will be automatically accommodated on the new aircraft without any change required. SIA said. But those holding bookings, but not yet ticketed, may need to check if there have been changes to their fares as a result of the aircraft change.

Passengers flying on the service on March 18 will receive personalised certificates recognising their participation in the 'milestone' event, as well as limited edition SIA A380 souvenirs and exclusive premium giveaways.

Executive vice president marketing and regions Huang Cheng Eng said: "The A380 will provide a capacity expansion on the popular Singapore-London route. For the first time, an aircraft larger than the B747-400 will fly this route, thereby meaning more seats without the need for additional flights".

BA raises fuel surcharge on medium and long-haul flights

British Airways has raised its fuel surcharge on medium and long-haul flights for tickets issued from February 25.

The surcharge for one-way flights of less than nine hours will increase by £5 each way, bringing the surcharge to £106 for a return flight.

On flights of more than nine hours, the surcharge will go up by £6 each way, bringing the charge to £128 for a return fare.

Short-haul fuel surcharges will remain at £10 and £20.

The airline blamed the rising price of fuel and has indicated that its favourable forward hedging of fuel purchases which has helped its profits last year, is unlikely to provide similar benefits this year.

Eurostar has launched a major marketing campaign to promote its new Ebbsfleet International station to travellers across southern and eastern England.

The rail operator said its TV, online and outdoor advertisements is highlighing the fact that a centre-to-centre journey from Reigate or Chelmsford via Ebbsfleet International to Paris takes just over four hours.

Eurostar says this is significantly shorter than flying via Heathrow and Charles de Gaulle airports and generates one-tenth of the amount of carbon dioxide produced by an equivalent flight.

Ebbsfleet International is off junction 2 of the M25 close to Bluewater shopping centre. The station has 2,500 parking spaces, all within five minutes' walk of the station and with a daily charge of £11.50.

Eurostar and its partners, London & Continental Railways and Land Securities, have also announced the shortlist of internationally-known artists who are competing to design a £2M 40-metre Ebbsfleet Landmark planned for the station.

Our consultants will  be pleased to offer you Eurostar or conventional rail bookings as an alternative to air travel, if this possibly makes sense for your planned trips, wherever you are heading, so please do consider rail if it could be a viable option.

Virgin Atlantic has completed a test flight using biofuel composed of babassu oil and coconut oil. The Boeing 747-400 flew from Heathrow Airport to Amsterdam Schiphol Airport and reached an altitude of 25,000 ft - which was the planned highest altitude it would reach using the renewable fuel.

The oils used can both be found in everyday cosmetic products, such as lip balm and shaving cream, and do not compete with staple food sources, according to the airline. The babassu nuts and coconuts were harvested from existing, mature plantations. No modifications were made to either the aircraft or its engines to enable the flight to take place, Virgin said.

The airline’s president Sir Richard Branson heralded the flight as a “biofuel breakthrough for the whole of the aviation industry”. He said: “Virgin Atlantic, and its partners, are proving that you can find an alternative to traditional jet fuel and fly a plane on new technology, such as sustainable biofuel. This pioneering flight will enable those of us who are serious about reducing our carbon emissions to go on developing the fuels of the future, fuels which will power our aircraft in the years ahead through sustainable next-generation oils, such as algae.”

 

Those concerned about the global environmental implications of a third runway at Heathrow, will not be pleased to learn that China has plans to open 97 new airports by 2020.

The Chinese government plans to spend US$62.5 billion on regional airports over the next decade, with 45 of the new facilities to be opened by the end of 2010. Even though China is starting from a relatively low base – the country had a total of 147 civilian airports at the end of 2006, compared with well over 3,000 airports in the US - the speed of aviation growth in China is staggering.

We understand that the Civil Aviation Administration of China (CAAC) cites the problems facing the country’s aviation industry as being primarily “too few airports, limited services, saturation at the main hubs of Shanghai, Guangzhou and Beijing, and difficulties in co-ordinating civil and military flight paths”.

With passenger traffic expected to rise at an annual rate of 11.4 per cent between now and 2020, the number of Chinese airports servicing in excess of 30 million passengers a year each, will rise from three to 13 over the same period.

Food for thought when you’re next checking in for your flight to Asia, or feeling guilty about taking the car instead of walking a mile to the shops?

 

The findings of a new study show 70% of bosses in favour of airport expansion, and that failure to grow airports such as Heathrow would adversely affect their businesses. It also found that businesses are willing to pay more for air travel on environmental grounds.

The report surveyed 500 Institute of Directors members and was run in association with bmi. Nearly two thirds agreed that air fares should be higher to ensure that the aviation industry pays its full environmental costs.

The average increase that company bosses felt would reflect the cost was equivalent to an extra £6.50 on £100 short haul trips and almost £200 more on a £3,000 long haul business class fare. 

Companies also predicted a strong growth in the business travel market, according to the study, with the fastest expansion on routes to destinations in the Asia-Pacific region.

Business travel within the UK is also important with nearly three quarters of members using flights for domestic business travel purposes.
 
The findings were released ahead of the completion of government consultation into a third runway at Heathrow, bmi’s main base. IoD director general Miles Templeman said: “Business travel is the lifeblood of a prosperous and competitive economy.  Many businesses rely on good air services to keep in touch with clients, suppliers, and staff across the world. The contribution that this makes to economic prosperity must not be overlooked. Decisions about the future of aviation in this country must strike the right balance between the huge economic benefits of air travel and its substantial environmental costs.

He went on to say that, unfortunately Heathrow’s performance has become tarnished as it has been forced to handle rising demand with inadequate capacity, including the same two runways with which it started operations more than 50 years ago, and that it urgently needs the extra capacity to enable it to handle more flights.

 

British Airways is the second worst offender when it comes to delayed baggage, according to data collected from European airlines. In 2007, 26.5 bags were delayed per 1,000 BA passengers, compared with 23 bags per 1,000 passengers in 2006.

According to the table compiled by the Air Transport Users Council (AUC), based on airlines' own data, the worst performing European airline was TAP Air Portugal. KLM and Alitalia came joint third and Air France was fifth in the league table of worst offenders.

The AUC said the average number of bags delayed on European airline flights has climbed from 15.7 bags per 1,000 passengers in 2006 to 16.6 per 1,000 passengers in 2007.

"It is notable that those AEA airlines that tend to operate connecting flights through "hub" airports come out worst. For example, Air France, KLM and British Airways all take up places in the top five poorest performers for 2007," said the AUC report. "This is borne out by industry research, which, according to the AEA, shows that 61% of baggage incidences are related to connecting passengers."

BA has apologised to passengers affected and blamed problems at Heathrow.

It admitted that, although Heathrow airport continues to suffer from a very stretched infrastructure running at almost double capacity, on occasions BA’s own levels of service have not been as high as it would have liked. The airline's performance had been affected by the restrictive cabin allowances, which had led to an increase in the levels of hold baggage. Operational difficulties due to the wet June and July and heightened security following the bomb attack at Glasgow airport were also blamed.

Complaints to the AUC show that delayed baggage can cause passengers considerable stress, inconvenience and expense. It called on the European Commission to provide "name and shame" league tables on the baggage handling performance of all airlines, and not just those that voluntarily submit their data through the AEA.

Ryanair criticised the AUC for not including low-cost airlines in its research. In its customary robust style, it claimed that “If the AUC was not so absolutely useless and clueless, it would include the UK's largest airlines in its so called report. Their report ignores that no other major airline matches Ryanair's performance or the fact that BA passengers are now 40 times more likely to suffer a mislaid bag. The AUC has proved once again that it has no relevance for British airline users".

The table for a number of the more popular airlines, shows their ranking in the list, with the worst at no.1 and the best at no.25. On the right, the first figure is the 2007 figure for the number of bags delayed per 1000 passengers, followed by the 2006 figure.

1  TAP Air Portugal                    27.8,   21.0
2  British Airways                       26.5,   23.0
3=  KLM                                     19.7,   16.4
3=  Alitalia                                 19.7,   16.5
5  Air France                             17.6,   16.6
9  Lufthansa                             15.8,   18.1
11  SAS Scandinavian                 14.8,   13.3
13  Iberia                                 13.8,   15.5
17  Swiss International Airlines    11.4,   10.0
25  Air Malta                                 4.5,     4.4