^ I agree. Traffic to Hong Kong and Dubai will never rival New York. However the fact that non-stop traffic from London to Hong Kong, despite all the potential alternative routings you mention, nonetheless eclipses traffic to much closer and also larger European cities, such as Moscow or Istanbul, is notable enough. The route is also far stronger than any other route between any other Western and E/SE Asian city pair. For instance the traffic from London to Hong Kong alone is greater than the traffic from the whole of France to the whole of China (including Hong Kong). I believe the London-Hong Kong route is also busier than traffic from the whole of the US to the whole of China too! That is significant!! It also amazes me that Hong Kong now eclipses Chicago. British Airways and American Airlines are Oneworld partners and London and Chicago are their respective hubs. The potential for transfers between these two mega hubs and mega airlines is therefore enormous (they are the 2nd and 3rd largest airports in the world and the two airlines are biggest carrier and biggest international and long-haul carrier respectively). A great deal of the traffic from Britain/Europe to small American cities will transfer in Chicago. Likewise a great deal of American traffic to Europe, Africa, Middle East, South Asia etc will transfer through London. Meanwhile Hong Kong traffic has now eclipsed Chicago despite Hong Kong only being a useful hub for Taiwan, Manila, and Kangaroo route traffic (and on the Kangaroo route Hong Kong currently ranks fourth behind Singapore, Kuala Lumpur, and Dubai....) so the strength of the London-Hong Kong route is all the more remarkable based, as it seems, primarily on traffic between the two cities themselves. I take it as a sign that Hong Kong is triumphing over rival contendors such as Tokyo, Shanghai, or Singapore as the primary international financial centre for the Asia-Pacific region.

Yep it certainally is triumphing.



http://news.bbc.co.uk/1/hi/business/4888190.stm

Ferrovial makes hostile BAA bid

Spanish construction group Ferrovial has launched a hostile £8.75bn all-cash bid for UK airports group BAA.

The offer is at the same price that BAA rejected from Ferrovial on 17 March, saying it undervalued the firm.

BAA owns seven airports across the country including London's Heathrow, Gatwick and Stansted.

The UK Takeover Panel had given Ferrovial until 24 April to make a formal bid for BAA or walk away from any deal for six months.

Ferrovial's offer represents 810p per share.

'Keen to talk'

The Spanish firm is making the hostile bid at the head of a consortium that also includes Canadian investment fund Caisse de Depot et Placement du Quebec, and Singapore government fund GIC.

"Whilst this bid is being made unilaterally, we do not regard it as hostile," said Ferrovial chairman Rafael del Pino said in a statement.

"We remain keen to engage in a dialogue with the BAA board with a view to securing a recommendation for the consortium's offers."

BAA, the UK's largest airports operator, also owns Southampton, Glasgow and Edinburgh.

British air traffic drops 1.3-percent in March

LONDON, April 11, 2006 (AFP) - British airports operator BAA, targeted by Spanish construction giant Grupo Ferrovial, said Tuesday that passenger numbers fell by 1.3 percent in March compared with the figure for the same period last year.

BAA, which rejected on Friday a formal 8.75-billion-pound (12.56 billion euros, 15.32 billion dollars) takeover bid from a consortium led by Grupo Ferrovial, said it handled 11.4 million passengers last month, hit by the comparatively late timing of Easter this year.

The group, which owns seven British airports including Heathrow, Gatwick and Stansted bordering London, said it handled 144.6 million passengers in the 12 months to March, a 2.0-percent rise on the previous year.

BAA said domestic traffic were affected last month by cancellations caused by heavy snow early in the month in Scotland and North East England.

It added that its North Atlantic traffic fell 2.8 percent in March, compared with the equivalent figure a year earlier.

Long-haul routes excluding traffic across the North Atlantic rose 4.6 percent and European scheduled traffic fell 0.4 percent.

Passengers face diversions, cancellations and a long wait Queues build up at closed airport during security alert
WILLIAM TINNING and MARTYN McLAUGHLIN
13 April 2006
The Herald

THE massive security operation at Prestwick yesterday caused widespread disruption to passengers on flights to and from it and other Scottish airports.

Planes were cancelled, diverted, and delayed as the Ayrshire terminal was cordoned off for more than two and a half hours. Glasgow airport also closed for 15 minutes while the authorities set up a 25-mile exclusion zone.

The problems came as many travellers prepared to head off for the Easter weekend break. An unprecedented 250,000 people will fly in and out of Glasgow, Edinburgh, and Aberdeen for the holiday.

Ryanair, which operated the plane at the centre of yesterday's bomb alert, cancelled four flights - Prestwick to Bournemouth; Bournemouth to Prestwick; Prestwick to Dusseldorf Weaze; and Dusseldorf to Prestwick. Four other planes bound forAyrshire were diverted during the scare.

A Ryanair spokeswoman said: "Passengers affected by the cancellations will be offered a refund or transfer to the next available flight." She would not say if the airline was prepared to depart from its normal policy by making any special arrangements or laying on extra flights.

Earlier, a company spokesman said: "Ryanair apologises sincerely for any inconvenience caused to passengers, however the safety of our passengers and aircraft will always be our number one priority."

Prestwick eventually reopened at about 5pm. But passengers were forced to wait in massive queues as airport staff tried to get business back to normal.

Henry Scott from Edinburgh, flying to Donegal but delayed for three hours, said: "It's frustrating, but you can't afford to take chances if there's a risk of a suspect package. It's a bit scary, but most people seem to be waiting for the flight nonetheless."

Mark Rodwell, chief executive of Prestwick Airport, said passengers were under the control of police investigating the threat.

He said: "I think the airport has responded very well. We have very detailed plans to respond to incidents. I am very happy with the response."

A spokesman for BAA Scotland, which owns Aberdeen, Edinburgh and Glasgow airports, said the first diversion had involved a Transavia passenger flight from Amsterdam to Prestwick, which went to Glasgow. The second involved a cargo plane from Charleston in the US, bound for Prestwick, which also went to Glasgow.

Two passenger flights diverted to Edinburgh were operated by Ryanair, and were due to go to Prestwick from Paris and Bergamo, near Milan.

The BAA Scotland spokesman said all passengers on diverted flights completed their journeys to Ayrshire by coach. He added: "At about 2.10pm, air traffic control imposed a 25mile temporary exclusion zone round Prestwick airport. This resulted in aircraft departing from Glasgow being delayed for 15 minutes. There was no impact on incoming flights at Glasgow."

John Scott, the Tory MSP whose Ayr constituency covers Prestwick, said: "This obviously had the potential to be a major incident. I am extremely glad it appears to have been nothing more than a hoax, but I am disappointed about the inconvenience passengers have suffered."

Brian Donohoe, MP for Central Ayrshire, questioned why the plane had been instructed to divert to Prestwick, rather than continue its flight to Dublin, but added: "The commander of police later told me that it was because it was over British airspace and I was satisfied with that explanation."

Meanwhile, Edinburgh airport is forecast to be the busiest in Scotland this weekend, with an estimated 113,600 passengers. Glasgow is expected to handle 102,100 passengers, while 35,600 are expected to pass through Aberdeen.

A number of new services have been introduced, including flights to Gdansk and Katowice from Edinburgh, to Cardiff from Glasgow, and Amsterdam and Stornoway from Aberdeen. Flyglobespan has also introduced a new daily service from Glasgow to the Dutch capital.

Stephen Baxter, managing director of airport operator BAA Scotland, said: "All three airports are expected to be much busier than usual this Easter. With a greater variety of destinations on offer this year, we expect our international routes to be particularly busy as holidaymakers fly out for the Easter break."

England-to-Ireland flight diverted after hoax bomb threat
15 April 2006

LONDON (AP) - A plane flying between England and Ireland was diverted to a Scottish airport after a note bearing a hoax bomb threat was discovered onboard, police said Saturday.

The Aer Arann flight from London's Luton airport to Galway landed at Prestwick airport near Glasgow at about 11 p.m. (2200 GMT) on Friday, escorted by two Royal Air Force fighter jets.

The 53 passengers and crew were evacuated and the plane was searched by a bomb-disposal team. Strathclyde Police said no bomb had been found.

The plane was due to resume its flight later Saturday.

On Wednesday, a Ryanair Boeing 737 traveling from Paris to Dublin made an emergency landing at Prestwick after a note was passed to crew claiming there was a bomb aboard. No bomb was found, and the plane continued its journey after a search.

British Airways jet makes emergency landing in Kazakhstan after false fire alarm
16 April 2006

ALMATY, Kazakhstan (AP) - A British Airways passenger jet has made a safe emergency landing at an airport in the ex-Soviet republic of Kazakhstan because of a false fire alarm, officials said Sunday.

The Boeing 747 had been en route to London from Sydney, with a Bangkok stop, when a fire warning light went on in the cockpit Saturday. The crew requested an emergency landing at the airport of Uralsk, a city in northern Kazakhstan near the border with Russia, the Kazakhstan Emergency Situations Ministry said in a statement Sunday.

There were 354 passengers and 18 crew members on board.

After landing, the crew found that the alarm was false, but the plane was unable to take off from Uralsk because of its heavy weight, and B.A. had to send three smaller aircraft to ferry the passengers to London.

Because the airport lacked stairs tall enough to reach the plane, passengers debarked by stepping onto the top of a tall airport vehicle and then on to a stairway, Britain's Press Association news agency reported, quoting a BA spokeswoman.

The jet also was carrying a cargo of bees, but despite reports they had caused the emergency by setting off the fire sensors, the spokeswoman said the bees were found still in their original packing, the Press Association said.

All passengers have safely arrived in London.

BAA rejects takeover approach from Goldman
By David Cullen and Michael Smith

LONDON, April 16 (Reuters) - UK airports operator BAA Plc, fending off a takeover bid from Spain's Ferrovial, has rejected a 9.4-billion-pound ($16.5 billion) approach from a group involving Goldman Sachs, saying it was too low.

The hostile bid earlier this month by a consortium led by Spanish construction company Ferrovial is for 8.75 billion pounds, or 810 pence a share in cash.

"BAA confirms that it did receive a preliminary highly conditional and confidential approach on March 30 from a consortium including Goldman Sachs ... to make a cash offer at a price of 870p per share," BAA said in a statement on Sunday.

BAA said the proposal by the U.S. investment bank -- which included an option to take shares in the bid vehicle -- was rejected by the board because "it clearly fails to reflect the true value of the company".

BAA said that since March 30 it had received no further approaches from the group.

The airports operator also said it issued the statement on Sunday without the consortium's agreement and that there could be no certainty an offer would be made.

BAA shares closed at 836p on Thursday, valuing the business at more than 9 billion pounds.

BAA, which runs London's Heathrow, Gatwick and Stansted airports, rejected the offer from Ferrovial's bidding consortium on April 7. That bid was pitched at the same level as a non-binding proposal turned down by BAA in March.

TALKING WITH SHAREHOLDERS

Although BAA has rejected Ferrovial's offer, analysts say the firm is likely to raise its bid after further talks with shareholders over the next few months.

Ferrovial, which could not be reached for comment on Sunday, is bidding with Caisse de Depot et Placement du Quebec and Singapore's GIC Special Investments. It is being advised by Australia's Macquarie Bank, to whom it will sell stakes in Sydney and Bristol airports if the bid goes through.

Britain's aviation regulator, the Civil Aviation Authority, recently said that bidders for BAA should plan for major upgrades to airport facilities when arranging their financing.

European airports have been drawing investors attracted by a highly visible, long-term outlook which predicts traffic in Europe will double by 2020 to 2 billion passengers.

BAA fought off Germany's Hochtief in December to buy control of Hungary's Budapest airport from the state for $2.2 billion.

BAA is the latest in a string of British firms to attract a foreign bidder amid a global boom in takeover activity.

Such is the appetite that hostile deals are becoming more common, with data firm Dealogic identifying 41 hostile and unsolicited bids worth a total of $238 billion globally in the first quarter of 2006, the second-highest quarter on record.

British Airways Raises Fuel Surcharge
18 April 2006

LONDON (AP) - British Airways PLC on Tuesday raised its trans-Atlantic fuel surcharge for tickets sold in the U.S. by $10 each way to $65 as it struggles with higher jet-fuel prices and competition from lower cost carriers.

The longhaul fuel surcharge on tickets sold in Britain will increase to 35 pounds ($62) per one-way flight, up from 30 pounds ($53). The new charge will apply on all tickets issued from April 21.

Martin George, BA's commercial director, said the company now expects its fuel bill to increase by 600 million pounds ($1.1 billion) to 2.2 billion pounds ($3.9 billion) this financial year. It had previously forecast a smaller increase of 400 million pounds ($710 million).

The airline announced the new surcharge as oil prices hit a new intraday high of $70.88 a barrel Tuesday amid international tension over Iran's nuclear program and worries about supply disruptions in Nigeria. Light sweet crude for May delivery settled in New York on Monday at a record $70.40 a barrel.

The unrelenting climb of oil prices has badly hurt the bottom lines of airlines worldwide.

BA competitor Virgin Atlantic Airways, a unit of Virgin Group Ltd., last month raised its surcharge on one-way tickets to 35 pounds ($62) per one-way flight from 30 pounds ($53).

In contrast, budget airlines such as Ryanair Holdings PLC have imposed no extra fuel charges on passengers, a decision they claim has helped keep prices low and win customers from the full-service airlines.

British Airways shares closed nearly 1.3 percent higher at 341.25 pence ($6.01) on the London Stock Exchange.

British Airways takes on low-cost operators by slashing European fares by up to 50 percent
By JANE WARDELL
20 April 2006

LONDON (AP) - British Airways PLC issued a direct challenge to European low-cost carriers Thursday, slashing several short-haul fares by as much as 50 percent as it tries to win back passengers.

BA, which has struggled to maintain its market share against price undercutting by budget airlines such as Ryanair Holdings PLC and easyJet PLC, said it would offer greatly reduced one-way tickets to 65 destinations.

The airline said the price cuts were part of an overhaul of the airline's fare structure, rather than a one-off promotion.

"This is not a short-term gimmick, but a long-term commitment to our millions of customers to offer low fares every day of the year," commercial director Martin George said.

The ticket sale came just days after BA announced a further increase in the fuel surcharge on its long-haul flights because of soaring crude oil prices.

Shares in BA fell 0.5 percent to 338.75 pence (US$6.04; €5.03) on the London Stock Exchange.

BA said it would continue to provide full service to customers booking inexpensive tickets.

Unlike the low-cost airlines, BA will not charge extra for food and drink onboard or for checked-in luggage. Ryanair introduced charges last month for passengers wanting to check in bags.

The new BA fares include all taxes and fuel surcharges, but there is a charge for passengers who do not book online.

Airfares across Europe have been driven down in recent years following the birth of the "no frills" airlines.

BA's best price on a one-way flight from London to Naples, Italy, is now 39 pounds (US$70; €58) -- a big drop from the 286 pounds the airline charged in 1996. Similarly, a flight from London to Bordeaux, France, has fallen to 29 pounds (US$52; €43) from 206 pounds.

The airline said there would be no job cuts as a result of the lower ticket prices launched Thursday.

Chief Executive Willie Walsh has outlined plans to cut costs at the airline by 450 million pounds (US$800 million; €670 million), including the loss of 600 management jobs and a further round of cuts in call centers and travel shops.

The airline has twice raised its fuel surcharge on long-haul flights since September by a total of 10 pounds (US$18; €15) as oil prices surge. Oil futures in New York hit a record high of US$72.49 Thursday.

BAA Rejects Ferrovial Offer for 3rd Time
21 April 2006

LONDON (AP) - Airports operator BAA PLC formally rejected an 8.75 billion pound ($15.6 billion) offer from a consortium led by Spain's Grupo Ferrovial SA for the third time Friday, claiming it undervalued the company.

BAA's statement was a response to Ferrovial's offer document posted Thursday, in which the Spanish company said it planned to bid for the operator of London's Heathrow, Stansted and Gatwick Airports with 3.65 billion pounds ($6.5 billion) in equity and 6.58 billion pounds ($11.7 billion) in debt.

BAA, which operates a total of seven airports around Britain, instructed its shareholders to dismiss the offer, "made at a price which bears no relation to the true value of the company."

The airports operator revealed last week that it has also received and turned down a takeover bid from the investment bank Goldman Sachs worth about 9.4 billion pounds ($16.5 billion).

The company said the Goldman Sachs offer, received March 30, also failed to "reflect the true value of the company."

Shares in BAA closed 0.06 percent lower at 863 pence ($15.37) on the London Stock Exchange.

BAA last week reported that traffic at its airports was down 1.3 percent in March, a downbeat ending to a financial year that logged a 2 percent increase.

The company blamed the slump at Heathrow on a softening British economy, the impact of the London terrorist bombings in July, a labor dispute involving catering staff last summer and higher oil prices.

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Ferrovial says open to any UK airports probe

LONDON, May 26 (Reuters) - Spain's Grupo Ferrovial said on Friday is ready for any regulatory review if its 8.75 billion pound ($16.35 billion) bid for UK airports group BAA Plc goes through, noting such probes had been held before.

News that Britain's Office of Fair Trading (OFT) might review the structure of the UK airports sector triggered a sharp fall in BAA shares a day earlier as investors feared the takeover might collapse.

"If ADI (the bidding consortium) is successful in its offer for BAA, ADI will of course cooperate fully with any review, if the OFT does in due course decide to initiate one," Ferrovial said in a statement to the London Stock Exchange.

ADI, or Airport Development and Investment Ltd, is a consortium Ferrovial has formed with Canada's Caisse de depot et placement du Quebec and Singapore's GIC Special Investments Pte Ltd.

"ADI is familiar with the UK regulatory framework and the various reviews that may take place.

"Indeed, the structure of the market has been considered at regular intervals since BAA Plc was privatised," Ferrovial said.

BAA has faced calls for breaking up the company for years because of its dominant position in Britain, where it owns seven airports including three which dominate the lucrative London market.

Analysts said past probes had had little impact on BAA.

"This may renew break-up calls but to us it is hard to see the (OFT's) conclusions differing from previous bodies' investigations into airport structure (which resulted in no real change to the ownership of BAA's London airports)," said JP Morgan analyst Damian Brewer.

BAA shares were up 2.86 percent at 810 pence as of 1202 GMT, outpacing London's FTSE index which was up 0.75 percent.

Ferrovial shares were up 2.18 percent at 61.05 euros.

On Thursday, BAA tried in its formal takeover defence to entice shareholders to reject Ferrovial by offering a 40-percent larger dividend and a 750-million-pound share buyback and arguing BAA was worth more than 10 billion pounds.

Ferrovial said it would respond to BAA's defence documents in due course. Under UK bid regulations the firm has until June 5 to make any changes to its offer.

BAA rejected a separate 9.4 billion pound takeover approach from a consortium led by U.S. investment bank Goldman Sachs in April.

At 8.75 billion pounds, Ferrovial's offer is above the current 8.5 billion-pound market capitalisation of BAA but the British firm's chief executive, Mike Clasper, on Thursday argued any bidder ought to pay a control premium.

Prospects of a takeover have added more than 2 billion pounds to BAA's value since February.

($1=.5350 Pound)

(Additional reporting by Gavin Haycock)

BAA agrees to Ferrovial takeover

Airports operator BAA has confirmed its support for a takeover by Spanish building group Ferrovial.
BAA, which runs seven UK airports, has agreed to an offer of 950.25 pence a share offer, valuing it at £10.3bn.

Ferrovial beat off competition from a consortium led by US bank Goldman Sachs, which said it had made an offer worth a total of 955.25p a share.

Goldman Sachs urged shareholders "to take no action" and promised a further announcement "in due course".

On Tuesday, the Takeover Panel extended the deadline for a bid from the Goldman Sachs consortium to 16 June.

Bid battle

BAA, which operates airports handling 63% of all air passengers entering or leaving the UK, had previously resisted being taken over, but is now recommending the Ferrovial approach to shareholders.

Ferrovial's latest offer marks a 17% price increase on its original 810 pence-per-share approach, and is 49% than the level BAA's share price was at before Ferrovial's interest became known.

BAA PASSENGER NUMBERS*
Heathrow - 67.7 million a year
Gatwick - 32 million
Stansted - 22 million
Southampton - 1.5 million
Glasgow - 8.7 million
Edinburgh - 8 million
Aberdeen - 2.7 million
Source: BAA

Discussions regarding a takeover have been going on since February, when Ferrovial said it was considering an approach for the Heathrow Airport operator.

Two months later, the Spanish group made a hostile takeover bid for BAA, after the UK firm's board rejected its approaches.

The Ferrovial consortium's 950.25p-per-share offer includes a proposed final dividend of 15.25p per share. The Goldman Sachs-led consortium's offer of 955.25p a share also included a 15.25p dividend.

The Ferrovial consortium's bid vehicle, Airport Development and Investment Limited (ADI), said it would safeguard the existing employment rights of all BAA group employees, including pensions rights, but added that it would also examine ways to cut costs.

Competition question
BAA - which, in addition to owning seven UK airports, also has business interests in the US, Italy and Hungary - has been seen as a popular takeover target for companies hoping to exploit the surge in air travel worldwide.

FERROVIAL GROUP PROFILE Annual revenues of 8,989m euros
Employs more than 78,000 workers
Has a presence in 40 countries
In 2005, 46% of operating profits came from outside Spain
Owns 50% of Bristol airport
Owns 100% of Belfast City airport
Owns 20.9% of Sydney airport
Owns 100% of Cerro Moreno airport, Chile
Listed on the Madrid stock exchange

However, the company is facing a possible competition probe.

At the end of May, the Office of Fair Trading said that it might examine whether BAA's dominance as an airport operator was against the public interest.

BAA's debt will increase greatly regardless of whether it is owned by either Goldman or Ferrovial.

However, both bidding groups have insisted that the costs of servicing this debt would not lead them to cut the hugely-expensive investments being made by BAA - such as the construction of Terminal 5 at Heathrow.

Shares in BAA rose by 2.26% to reach 949 pence in morning trading after the announcement. Grupo Ferrovial's shares were down 2.7% at 59.3 euros.

Source: http://news.bbc.co.uk/1/hi/business/5050932.stm

Aircraft overshoots runway at Scottish airport

LONDON, June 23, 2006 (AFP) - An aircraft travelling from Norway with 16 passengers on board overshot the end of Aberdeen Airport in northeast Scotland Thursday night, airport operator BAA said.

The incident, in which no one was reported injured, happened just before 9:00 pm (2000 GMT) and involved a City Star flight from Stavanger.

The 16 passengers and three crew disembarked safely from the 30-seat twin propeller Dornier 328 aircraft.

The aircraft is not thought to have been damaged but the airport's runway was closed, forcing all flights to be diverted to the Scottish capital, Edinburgh.

A spokesman for BAA, which owns the airport, said: "A City Star flight overshot the runway as it landed this evening but no one was injured and the Air Accident Investigation Branch (AAIB) will investigate."

Monday June 26, 5:22 PM
Virgin Atlantic profit doubles on premium traffic

LONDON (Reuters) - Richard Branson's Virgin Atlantic Airways , which has triggered a price-fixing inquiry into arch-rival British Airways Plc , posted a doubling in yearly profits on Monday after attracting more businesses travelers.

Virgin's annual results came amid a UK-U.S. investigation into alleged cartel activity over airline fuel surcharges which was launched following a tip-off by Virgin to British regulators.

One U.S. law firm has already launched a class-action lawsuit against airlines over the price-fixing allegations, according to UK newspapers, which an industry source said on Monday was not being taken as a serious threat for the carriers.

Virgin, which competes with British Airways for premium-paying passengers, said its business passengers rose 10 percent in the year after it launched new upper-class facilities.

The airline, 51 percent owned by Branson and 49 percent by Singapore Airlines Ltd. , also launched new routes to India and the Caribbean in the year, which helped offset a 30 percent jump in fuel costs and tough transatlantic competition.

Profit before tax and exceptionals for year ending February 28 rose to 41.6 million pounds ($76.1 million) from 20 million a year ago, the airline said.

Revenues increased 17 percent to 1.9 billion pounds and passenger numbers rose 11 percent to 4.9 million.

Virgin approached Britain's Office of Fair Trading about alleged conversations between a BA executive and one of its staff last year to sound out plans to increase fuel surcharges on long-haul flights, a source familiar with the situation told Reuters on Saturday.

The civil and criminal probe into an alleged cartel was announced last week after regulators raided BA's offices. BA put two senior executives on leave.

American Airlines and United Airlines said they were cooperating with the inquiry but were not targets.

A British Airways spokeswoman declined to comment on UK newspaper reports the OFT was examining e-mails sent by BA staff or that former Chief Executive Rod Eddington may be questioned.

BA shares, which fell about 6 percent on news of the inquiry last week, were trading 0.4 percent weaker at 346 pence at 0857 GMT.

Virgin's tip off underscores long-time rivalry between the two airlines, which peaked in 1993 when Branson accused BA of waging a "dirty tricks" campaign against his airline.

(Additional reporting by Jason Neely)

British regulator confirms competition probe into airports sector

LONDON, June 30, 2006 (AFP) - Britain's Office of Fair Trading said Friday that it would probe British airports operator BAA's market domination.

The news comes amid the agreed takeover of BAA by a consortium led by the Spanish construction group Ferrovial.

"The OFT today (Friday) announced that it is to study the UK airports market with a view to establishing whether the current market structure works well for consumers," the regulator said in an official announcement.

"The decision to proceed to a market study reflects the importance of airports to consumers and businesses within the UK."

Almost two-thirds of British air passengers began or ended their journey at BAA's airports, the OFT said.

"Within the London area this rises to nine out of ten passengers, and in Scotland over eight out of ten air passengers fly from a BAA airport."

The OFT had not yet decided whether to refer the case to the Competition Commission for an in-depth investigation, according to the statement.

"Greater competition between airlines over the past decade has led to wider choice for air travellers and lower fares," added OFT chief executive John Fingleton.

"We now think it is time to explore the potential for greater competition within the airport industry.

On June 6, the board of BAA had accepted the Ferrovial consortium's takeover bid worth 10.23 billion pounds (14.8 billion dollars, 19.2 billion dollars).

BAA owns seven British airports, including London's Heathrow, Gatwick and Stansted. Ferrovial, which represents 65 percent of the consortium, manages Belfast airport and Bristol and Exeter airports in western England.

BA says June traffic up, mum on cartel probe

LONDON, July 5 (Reuters) - British Airways reported a 6.6 percent rise in June traffic on Wednesday while declining to comment on a probe into suspected cartel activity by Europe's third-largest airline in setting fares.

BA said its load factor, a measure of how well it is filling planes, was up 2.7 points to 81.6 percent.

Premium passenger traffic rose 11.7 percent in June while market conditions remained broadly unchanged, BA said in a statement.

Asked for an update on a probe of BA which saw Britain's Office of Fair Trading (OFT) raid its offices last month, a spokeswoman said: "We're not going there."

BA put two executives on leave in the wake of the investigation.

Analysts say BA could face fines of up to 300 million pounds ($554 million) if found guilty in the investigation, which also involves the U.S. Department of Justice.

Some analysts say BA could also risk having lucrative transatlantic routes into London's Heathrow airport opened up to more carriers, something rivals have urged for years.

British Airways to launch service from London to Calgary in December
5 July 2006

LONDON (AP) - British Airways PLC said on Wednesday that it plans to launch a new service from London Heathrow to Calgary in Canada on Dec. 1.

BA said it will operate five flights each week on a Boeing 777 to the city in the Canadian province of Alberta.

The airline will also launch an eighth daily service from London Heathrow to New York JFK on Dec. 1 and increase flights from London Heathrow to Sao Paulo in Brazil from seven to 10 each week on Dec. 3.

http://news.bbc.co.uk/2/hi/uk_news/england/manchester/5149958.stm

UK airlines plan air traffic control sale - paper

LONDON, July 9 (Reuters) - British Airways Plc , Virgin Atlantic Airways [VA.UL] and five other British airlines have put up for sale their controlling stake in National Air Traffic Services, the company that provides air traffic control in the UK, the Sunday Times reported.

Nats was privatised in 2001 with the Airlines Group -- a consortium of seven carriers -- only chosen as the buyer after promising its bid was "not for commercial return", the paper added.

The seven airlines put in 50 million pounds ($92 million) in 2001 and are likely to make up to six times that, according to unofficial estimates of Nats' value. Airline executives think it could be worth up to 600 million pounds, the paper said.

The Airlines Group comprising BA, Virgin, BMI British Midland [BMID.UL], EasyJet Plc , MyTravel Airways, Monarch and Thomsonfly owns a 46 percent stake in Nats, while the UK government retains 49 percent, and an employee trust holds 5 percent.

A BA spokeswoman declined to comment on the report. ($1=.5439 Pound)

BA sticks with 10 pct margin aim, sets union deal
By David Cullen

LONDON, July 18 (Reuters) - British Airways said on Tuesday it was keeping its goal for a 10 percent margin by 2008 and that it hoped a probe into suspected cartel activity by Europe's third-largest airline would be wrapped up soon.

The company also said in a statement that it had struck an agreement with trade unions representing 1,800 Gatwick-based cabin crew on changes to work practices that would save it around 13 million pounds ($24 million) a year.

BA said last month it was helping Britain's Office of Fair Trading and the U.S. Department of Justice with an investigation into alleged cartel activity over airfares and fuel charges.

Since then, two BA staff have been suspended, including commercial director and board member, Martin George.

American Airlines , United Airlines and Richard Branson's Virgin Atlantic [VA.UL] have said they were also involved in the probe but were not direct targets.

"The recent investigations have focused on longhaul passenger fuel surcharges and follow an earlier investigation into cargo surcharges," BA Chairman Martin Broughton said in a statement, adding: "There is no suggestion of any breach of competition law in relation to shorthaul passenger fuel surcharges."

"Needless to say, we very much hope there will be a swift outcome to the investigation."

BA said it could not publicly comment further on the investigation for legal reasons.

MARGIN GOAL, DIVIDEND HOPE

The firm, which earlier this year announced a revamp of its UK regional business aimed at returning the unit to profit and fending off rival budget carriers, said it was sticking with its goal to get an operating margin of 10 percent within two years.

The business serves UK airports excluding London's Heathrow and Gatwick -- where it has just struck a deal with unions on working practices -- and flies within the UK and to some European destinations.

BA said the pact with the Transport and General Workers Union and Amicus brings together the two previously separate cabin crew operations for long and short-haul.

About 1,000 crew are employed on long-haul services from Gatwick and 800 on short-haul. From October, a single cabin crew force will operate all Gatwick flights.

BA said the deal would give staff more flexibility, raise productivity and cut employee costs.

The firm also said that while it was not recommending a dividend payout this year, it hoped they would be restored.

"The most likely trigger point will be an operating margin of 10 percent," BA Chairman Martin Broughton told shareholders, adding that he would not rule out reinstating a payout before that goal target ends in March 2008.

BA said passenger numbers rose 4 percent in the first three months of the financial year to the end of June against the same quarter in 2005, helped by more services to India.

BA shares were down 0.7 percent at 342-1/2 pence by 1236 GMT, valuing the business at around 3.9 billion pounds.

(Additional reporting by Marc Jones)

Baggage problems at London airport cause delays for thousands

LONDON, July 25, 2006 (AFP) - Thousands of people hoping to jet off for their holidays were hit by delays to their flights and had luggage problems after a baggage belt failure at a busy London airport Tuesday.

Low-cost airline Ryanair said 37 of its flights were delayed and 1,500 bags did not go to the right flight because of the breakdown at London Stansted Airport.

"We had a baggage belt problem today and Ryanair was particularly affected by this," said a Stansted spokeswoman.

"We apologise sincerely to passengers and our engineers are now on the site working out the cause of the problem."

The Irish carrier said it was the third consecutive day of baggage problems at Stansted, adding that airport operator British Airports Authority had said on Sunday that it was "satisfied" with the procedures that were in place.

"BAA may be 'satisfied' but tens of thousands of passengers today would disagree," said David O'Brien, Ryanair's operations director.

"Ryanair is fed up taking the blame for the inefficient gold-plated BAA facilities at Stansted which don't work and for which Ryanair and passengers pay ridiculously high prices."

Stansted is London's third busiest airport after Heathrow and Gatwick.

The Herald
August 4, 2006
Airline axes Glasgow to Chicago flight
Falling numbers and fuel costs blamed

AMERICAN Airlines is to axe its summer service between Glasgow and Chicago after 16 years of operating the route. The last flight to the mid-west city will leave Glasgow Airport on September 30.

The airline claimed the route to Chicago's O'Hare Airport had become increasingly unprofitable in comparison with its other international routes as passenger numbers out of Glasgow have steadily fallen over recent years.

The Herald understands that the recent significant increase in fuel prices also had an impact and also led to the airline changing its mind over starting a service between Newcastle and New York.

The decision to axe the route means there are now no airlines flying direct from Scotland to Chicago, a busy connection airport for other American and Canadian cities.

Despite the ending of the service, Glasgow Airport officials revealed they were in discussion with other major airlines interested in operating transatlantic flights out of Glasgow to other American cities.

A spokesman for Glasgow Airport said it could not name the airlines at this point because talks were at a delicate stage, but they were progressing well.

"We are disappointed at the loss of this summer service to Chicago, howeverwe are in discussion with other carriers interested in operating yearround from Glasgow to major US cities, " said the spokesman.

The decision by American Airlines to axe the Glasgow to Chicago service, which was popularwith golfers, appears to be part of a restructuring of operations in Great Britain and Ireland.

In general, seasonal services are difficult and costly to operate and Glasgow Airport executives are focusing their efforts on attracting sustainable yearround services which they believe will be more appealing to leisure and business travellers.

A spokeswoman for American Airlines said the company would continue to have a presence in Scotland, but felt the unprofitable nature of the Chicago seasonal service had left it no alternative.

"American Airlines will continue however to provide travel options between the US and Scotland in conjunction with our one world partner, British Airways, as it does now throughout the year, " said the spokeswoman.

She said there would be no redundancies because of the cancellation of the Glasgow flight as the staff involved were Manchester-based and moved up to Scotland for the summer season only.

Scotland is still well served with links to America, with Continental Airlines flying from Glasgow and Edinburgh to New York, and Delta Airlines flying from Edinburgh to Atlanta. US Airways flies from Glasgow to Philadelphia and Orlando. Mytravel operates to Las Vegas from Glasgow during June and July, while Icelandair flies from Glasgow to Orlando, Minneapolis, Boston, New York and Baltimore.

Meanwhile, Thomas Cook Airlines has issued a "zero tolerance"warning after a spate of bad behaviour by sun-seeking Britons.

Staff have already had to deal with passengers turning up drunk for check-in, making jokes about bombs in luggage, refusing to sit for take-off and smoking in toilets.

In the most serious incident, a passenger opened the door of a Boeing 757 as it pulled up at the Greek island airport of Zakynthos. He has been banned for life by the airline.

British Airways says 1st-quarter profits rise 72 percent
By DAVID STRINGER
4 August 2006

LONDON (AP) - British Airways PLC said Friday that first-quarter net profits rose 72 percent as the carrier saw passenger traffic driven by low fares on short-haul routes and strong demand for lucrative business class flights.

But the company warned of tougher conditions in the second half, with fuel and pension costs expected to rise.

Shares in British Airways fell 3.4 percent to close at 375.61 pence (US$7.15; euro5.58) on the London Stock Exchange.

Net profit for the three months ending June 30 rose to 150 million pounds (US$282 million; euro221 million) from 87 million pounds a year earlier. Revenue rose 12.5 percent to 2.32 billion pounds (US$4.36 billion; euro3.41 billion) from 2.06 billion pounds.

Passenger traffic in July rose 4.4 percent, with premium traffic up 11 percent.

"These are good results driven by strong revenue as a result of record seat factors and better cabin mix," said Chief Executive Willie Walsh.

Walsh said low fares on short-haul flights had been "a big success," despite brutal competition.

But he said market conditions were likely to grow more difficult in the second half because of increasing price competition. He forecast that yields, or average fares, were likely to decline over the full year.

The company said it had seen a 44 percent rise in fuel costs to 512 million pounds (US$963 million; euro753 million) and noted that fuel costs for the full year were expected to be 600 million pounds (US$1.13 billion; euro882.9 million) more than last year, when the bill came to 1.63 billion pounds (US$3.06 billion; euro2.4 billion).

High fuel prices have led airlines to raise the surcharges that passengers pay on long-haul flights.

In June, BA confirmed that two senior executives had been placed on leave as British and U.S. authorities investigated alleged price-fixing in passenger fares and fuel surcharges by BA and other airlines.

Britain's Office of Fair Trading said it was conducting "both a criminal and civil investigation into alleged price coordination by airlines in relation to fuel surcharges." BA commercial director Martin George and head of communications Iain Burns were given leaves of absence.

The airline said it expects an increase in total revenue for the year to March 2007 of 6 percent to 7 percent, compared with previous guidance of 5 percent to 6 percent.

"Costs excluding fuel, which were previously forecast flat, are now expected to be slightly higher this year as pension costs are driving employee costs up," Chairman Martin Broughton said in a statement.

That's amazing! Good for BA to turn things around.

Transatlantic flight turns back to London over security alert

LONDON, Aug 7, 2006 (AFP) - British authorities questioned four people at London's Heathrow Airport Monday after a flight to Boston turned around midway across the Atlantic because of a security alert.

American Airlines flight 109 carried 240 passengers and 13 crew members on the Boeing 777 jet, which landed back in London four hours after it departed.

Four of the passengers were escorted from the plane when it landed in London, where six police officers were waiting for them, a Heathrow Airport spokeswoman told AFP.

Anneliese Morris of American Airlines said the turn-around was "due to a security issue that needed to be resolved in London," but declined to comment further.

A spokeswoman for London's Metropolitan Police told AFP four people were interviewed by police officers at the airport, but had not been arrested. She declined to give details on the four.

Britain's domestic Press Association said the four passengers questioned were believed to be a man who had been travelling with three women, believed to be his mother and two sisters.

The flight, which left London at 10:55 am (0955 GMT), had been due to arrive at Boston's Logan International Airport at 1:05 pm local time (1705 GMT).

American Airlines told AFP it had re-booked passengers onto alternative flights to Boston.

According to the US Transportation Safety Administration, one of the passengers' names was on a so-called no-fly list, of persons not allowed to board airliners.

"Early in the flight, TSA learned that a passenger on board was a positive match on the no-fly list. Out of an abundance of caution, TSA determined that the best course of action was to turn the flight around and at around 8:20 EST we instructed American Airlines Flight 109 to land," said Ann Davis, TSA spokeswoman.

"This is the eighth international diversion due to a no-fly list match since the fall of 2004," Davis said. Air transportation was greatly bolstered after the September 11, 2001 attacks.

"It's important to note that American Airlines was in regular communications with the flight as it returned to Heathrow and there were no reports of any unusual activity on board.

"US law enforcement is working with local law enforcement in the UK to interview the passenger on the ground," she said.

British air traffic hits record 15 million in July

LONDON, Aug 8, 2006 (AFP) - British airports operator BAA said on Tuesday that passenger numbers jumped 3.1 percent in July to a record 15 million compared with the same period a year earlier.

BAA handled 146.5 million passengers in the 12 months to the end of July, a 2.5-percent rise on the previous annual period.

"BAA's UK airports handled 15 million passengers in July, the most passengers to pass through their airports in a single month," the operator said in an official statement.

BAA, which runs seven British airports including Heathrow, Gatwick and Stansted bordering London, was bought recently by a consortium led by Spanish construction group Ferrovial for 10.23 billion pounds (14.8 billion euros, 18.8 billion dollars).

On Tuesday, BAA said that traffic at Heathrow, Europe's busiest airport, rose 1.2 percent to 6.5 million passengers in July compared with the same month in 2005. On a 12-month basis, passenger numbers edged up 0.3 percent to 67.9 million.

Taking into account all of BAA's British airports, European scheduled traffic rose 7.4 percent in July from a year earlier. North Atlantic activity grew 0.2 percent and other long-haul routes increased by 8.4 percent.

Virgin tries text cure for in-flight boredom

LONDON, Aug 8 (Reuters) - First there were the movies, masseurs and meditation programmes, but Richard Branson's Virgin Atlantic Airways [VA.UL] says it has found a new answer to beating the boredom on long flights.

The London-based airline said on Tuesday it planned to introduce the world's first in-flight texting service, which will allow passengers to have questions answered on any topic at 35,000 feet.

Passengers will be able to text questions from their seat-back television screens to an existing land-based text answer service which promises to answer any question within minutes.

"It's a great way to ask for a recommended bar in New York, what's the best way to get over jet-lag, or what's the best way to chat up the cabin crew," a Virgin spokeswoman said.

Airlines globally are scrambling to find new ways of increasing non-ticket sales and getting more passengers onto planes with the promise of more luxurious and fun ways to pass the time in the air.

However, texting mates from your own mobile phone is still some way off. Air France KLM is running a trial of technology that will enable passengers to use their mobile phones while flying from next year.

Low-cost carriers like Ryanair plan to introduce in-flight gambling to earn extra passenger dollars and hopes the use of mobile phones on planes will eventually boost its coffers.

(Additional reporting by Benoît Van Overstraeten in Paris)

'Plot to blow up planes' foiled | UK on 'Critical Aleart'

http://newsimg.bbc.co.uk/media/images/41684000/jpg/_41684720_baaa_pa023.jpg


A terrorist plot to blow up planes in mid-flight from the UK to the US has been disrupted, Scotland Yard has said.

It is thought the plan was to detonate explosive devices smuggled on aircraft in hand luggage.

Police have arrested about 18 people in the London area after an anti-terrorist operation lasting several months.

Security at all airports in the UK has been tightened and delays are expected. MI5 has raised the UK threat level to critical - the highest possible.


In full: Transport advice

According to MI5's website, critical threat level means "an attack is expected imminently and indicates an extremely high level of threat to the UK".

Scotland Yard said in a statement that their investigation into the alleged plot was a "major operation" which would be "lengthy and complex".

"We would like to reassure the public that this operation was carried out with public safety uppermost in our minds."

Home Secretary John Reid confirmed that there had been a plot "to bring down a number of aircraft through mid-flight explosions".

Transparent bags

The Department for Transport set out the details of the security measures at UK airports.

Passengers will not be allowed to take any hand luggage on to any flights in the UK, the department said.

Only the barest essentials - including passports and wallets - will be allowed to be carried on board in transparent plastic bags.

"We hope that these measures, which are being kept under review by the government, will need to be in place for a limited period only," the statement said.

BBC journalist Joe Lynam encountered the increased security measures at Gatwick airport.

"I was handed a piece of paper saying that pretty much nothing could be taken on board the plane," he said.

"Everything had to be checked in and that includes mobile phones, ipods, wallets - even spectacle cases had to be checked in."

David Learmount from Flight International Magazine said he expected passengers to be searched much more carefully.

He added: "This is the first time this measure has actually been taken. Certainly I've never seen hand luggage banned."

Wow that sucks. I'm supposed to fly to Birmingham on Saturday. Hopefully my flight there isn't going to be disrupted. :(

it might be, Heathrow isn't accepting inbound flights

i was supposed to fly today, but i changed my flight a few days ago to tuesday, it would have been so messed up if i hadnt, god i hope this thing doesnt last till next tuesday.
I need my ipod and camera on the flight!

CURSE those terrorists!!!

The things that you can not take on planes now include:
shampo- banned
soap- banned
all liquids- banned
all bottels- banned
make-up- banned
the list goes on.

^^

Yeah, that really sucks.

A couple days ago I got small bottles of lotion, hand sanitizer, Listerine, toothpaste, deoderant, and lip ointment for my trip to the U.K. on Saturday.

Also I planned to bring my cologne, body shampoo and "leather lotion" with me. I want to use my $50 bottle of cologne to go out partying with friends in the U.K. but I don't want to risk throwing it away at the security checkpoint. Plus I guess it was a dumb idea to chose 5 connecting flights on AA to get to the U.K. with the risk of having to put my carryon baggage into the cargo hold. There are 4 regional jet flights and one 767-300 so I'll see how that goes since the regional jets have "gate claim."

Actually its normal they are not letting these things aboard. I remember once watching a documentary of a Philippine Airlines flight. Using nitro glistering a guy created a bomb and planted it on the flight – as the flight had a stopover he left there so he wasn’t in the plane. Even though the bomb exploded only one person died. His plan (a Pakistani man) was very much the same to these plots. He wanted to plant bombs on Continental and AA flights. Thankfully they caught him on time (he was also an accomplice for the first attack on the World Trade Centre in 94). After he was arrested those sticks that check for explosives were produced but none of the airlines in the world wanted to use them.

well this is for a safety reason,

would you rather lose your bottle of water, or to lose your life and also 10 other plane full of passenger's life?

well this is for a safety reason,

would you rather lose your bottle of water, or to lose your life and also 10 other plane full of passenger's life?


This might be a little off topic but instead of using all that money to fight a war in Iraq they should use that money to put better security machinery in all the required airports. I'm no engineer but I bet someone could come up with a machine that would make the security screening process very easy if money and research was thrown at it. I don't need my taxes going to a useless war, let's get flying back to a more comfortable level without so much sacrifice.

UK PRESS: Airlines Seek Reimbursement From BAA
14 August 2006
DOW JONES NEWSWIRES

Three of Britain's biggest airlines are uniting to call on the British Airports Authority (BAA.LN) to pay some of the GBP250 million of costs airlines are estimated to have incurred since the current security crisis began, according to The Daily Telegraph.

The airlines are British Airways PLC (BAB), Virgin Atlantic and easyJet PLC (EZJ.LN), while a fourth, BMI British Midland, looks set to join up after saying it would not rule it out, the newspaper says. Ryanair Holdings PLC (RYAAY), meanwhile, called on the Department for Transport to cover some of its costs, the Telegraph reports.

Newspaper Web site: http://www.telegraph.co.uk

UK airline bmi says some pilots vote for strike

LONDON, Aug 16 (Reuters) - British airline bmi [BMID.UL] said on Wednesday that some pilots at its no-frills division, bmibaby, had voted in favour of strike action but it hoped to avoid industrial action.

Bmi said in a statement that 47 percent of bmi baby's 189 pilots voted in favour of a strike following a poll of members by the the British Air Line Pilots' Association (BALPA).

"BALPA have requested a meeting with us to attempt to find a way through the dispute and we are reflecting on that proposal," the airline said.

Bmi, which was forced to cancel flights along with other airlines during the past week due to heightened security at airports, said its customers should not change their travel plans.

BALPA is disputing a forced 2.4 percent pay rise for bmi staff.

From: http://www.iht.com//articles/2006/08/15/business/jet.php
_________________
Silverjet to join race for N.Y.-to-London business-class fliers

By Joe Sharkey The New York Times

Published: August 15, 2006



NEW YORK Each day, domestic and foreign airlines fly more than 1,500 first-class and business-class seats each way between New York and London, at round-trip fares that can cost $9,000 for business class.
Silverjet, a start-up all-business-class airline in Britain, plans to add to that mix 100 more premium-class seats in each direction, but at round-trip fares averaging about $1,900.
Lawrence Hunt, the chief executive of Silverjet, said that the airline planned to get off the ground by beginning service between Newark, New Jersey, and London within nine months.
Silverjet said Monday that it would buy five used Being 767-200s and equip them with 100 lie-flat seats. It would become the third all-business-class airline to begin service in the past year or so on the lucrative New York-to-London route. Late last year, Eos and MaxJet began flying between Kennedy International Airport and Stansted Airport.
Eos, flying Boeing 757s with just 48 lie-flat business-class seats, compares itself to the highest-end trans-Atlantic business-class carriers like British Airways and Virgin Atlantic, but with sharply lower published fares ranging between $2,950 and $6,500 round trip.
MaxJet flies 767s configured with 102 seats that recline to a 60-inch pitch. Its discount round-trip fares go from $1,750 to $3,750. Most published business-class fares on other commercial airlines on that route run from about $6,000 and $9,000, though many major airlines negotiate corporate volume discounts.
Is Silverjet a deal? Hunt says it is, and his competitors agree, to a point. The airline raised about $44 million in an initial public offering last spring, bringing its capital to about $63.5 million, and it still attracting investors, he said.
"I regard them as a serious potential competitor," said Gary Rogliano, the chief executive of MaxJet. "But I do think they're going to have to go back to the till" for more capital to operate.
David Spurlock, the chief strategic officer of Eos, said that the 767s that MaxJet operated and Silverjet planned to use were more expensive to operate than the Eos 757s.
Rogliano said that Silverjet's plan to install 100 seats with 75-degree pitch on a 767 would cut back on space that passengers want for things other than sleeping.
On the other hand, Silverjet plans to offer discount car service to and from the airport. Silverjet also plans expedited check-in and boarding procedures and high-end airport lounges. The Newark departures will appeal to many travelers wanting to avoid Kennedy.
Silverjet also would fly to London's least congested airport, Luton.

Majority of British voters support air passenger profiling: poll

LONDON, Aug 17, 2006 (AFP) - A majority of British voters support profiling air passengers in the wake of an alleged plot to bomb US-bound planes in mid-flight, according to a poll published on Thursday.

In a poll of 1,696 respondents by YouGov published in The Spectator magazine, 55 percent backed the idea of security screenings at airports, focusing on the passengers who pose the greatest risk.

Some 60 percent of those surveyed also said they expected the threat from terrorist groups to worsen, and 79 percent felt the government was not winning the so-called war on terror.

According to The Times on Tuesday, the Department for Transport was considering a system to single out people behaving suspiciously, who have an unusual travel pattern, or a certain ethnic or religious background.

But the plan -- similar to a system operated by Israeli airline El Al -- was immediately condemned by one of Britain's most senior Muslim police officers, who said that could lead to a new offence of "travelling whilst Asian".

The debate was sparked after British police and intelligence services staged pre-dawn raids on the homes of 24 people, the majority of whom appear to be British Muslims, to disrupt what they believed was a plot to blow up US-bound passenger jets in mid-flight.

Half of the respondents said they thought most British Muslims were moderates, but more than a quarter disagreed.

Only 12 percent of those surveyed said they thought Britain's foreign policy should be made more conciliatory in response to terrorism.

By contrast, 80 percent of those polled wanted British Prime Minister Tony Blair to distance himself from US President George W. Bush and either work more closely with European countries or blaze his own path.

Blair was heavily criticised in Britain during the conflict between Israel and the Shiite militia Hezbollah over the past month as he sided with the US president in declining to call for an immediate ceasefire.

Some 69 percent of those surveyed also felt that police should be allowed to hold suspects in anti-terrorism investigations for 90 days, as opposed to the 28 days allowed under current legislation.

I fly into and out of UK a few times in the next month. I'm just hoping there won't be much hassle. Maybe the carryon luggage limit will be lifted too?

From: http://news.independent.co.uk/business/news/article1222611.ece
__________________
Lidl to offer cut-price European city flights
By Susie Mesure, Retail Correspondent
Published: 30 August 2006
Canny shoppers will be able to bag a flight to Berlin alongside their baked beans next month, provided they are prepared to visit Lidl, the bargain German supermarket chain.

The discount retailer has linked up with Air Berlin to offer cut-price flights to European cities in the latest example of supermarkets spreading their wings into areas beyond groceries.

For one week in September, Lidl customers can save up to £100 on a return flight to cities including Vienna, Dusseldorf and Belfast. The one-way flight vouchers will cost £19 and can be used for flights that would normally cost up to £69 including taxes.

Tony Parker, a Lidl director, said: "This is not a sales-led gimmick, no Lidl product purchase is necessary to buy a flight voucher and there will be no special restrictions." The initial offer starts on Tuesday and will run for a week.

For years, UK supermarkets have offered customers the chance to earn airmiles with their purchases, which they can exchange for flights, but selling flights directly is a first for the sector.

Neil Saunders, at Verdict, the retail consultants, said flights were a "logical market for supermarkets to enter, given they have tackled other service markets like financial services".

Tesco has already experimented with selling flights in some European outlets. A spokesman said it was possible it could move into the travel market in the UK.

Lidl, part of the German group Schwarz, will sell Air Berlin flight vouchers that can be used from Stansted, Manchester, Glasgow and Belfast to 25 European destinations, although not all flights are direct. The flights can be used from Tuesday to 31 March.

Thursday August 31, 2:48 PM
BAA rejects calls for break-up

LONDON (Reuters) - Airport operator BAA, which was acquired by Spain's Ferrovial earlier this year, has rejected calls for the break-up of its UK airports, arguing it would undermine vitally needed investment in airport capacity.

Last week, British Airways Plc and other airlines called for competition authorities to consider breaking up ownership of two key London airports -- Heathrow and Stansted -- as part of an investigation into UK airports.

BA had said an Office of Fair Trading (OFT) investigation into airport ownership should be referred to the Competition Commission because of concerns about airport regulation and ownership.

It said the commission should consider separate ownership of Heathrow and Stansted -- both airports which are owned by BAA.

Dublin-based Ryanair had also said it wanted the OFT to recommend a break-up of BAA in its report to the commission.

"I fully understand why airlines like British Airways and Ryanair want to weaken airport operators and achieve greater control over prices and investment at the airports where they hold such powerful positions themselves," BAA Chief Executive Stephen Nelson said in a statement.

Nelson said that the job of competition authorities is to protect the longer-term interests of all consumers.

"The biggest problem facing UK air travelers is the shortage of airport capacity, especially in South East England. Failure to build new runway capacity will lead to gridlock, disappointed customers and significant loss to the national economy," Nelson added in BAA's submission to the OFT.

BAA, which owns seven UK airports, has faced calls for its break-up for years because of its dominance of the UK airports sector.

GLASGOW WINS DAILY SERVICE DIRECT TO BOSTON.

Source: Glasgow Evening Times (http://www.eveningtimes.co.uk/hi/news/5055916.html)

GLASGOW Airport is to get a direct daily service to Boston.
Scottish airline flyglobespan is to fly to the American city from next May with prices starting from £159 one way, including tax.
It will be the second transatlantic route on offer from Glasgow from the company.
It started the UK's first daily low fares service to Florida with the launch of its daily flights to Orlando Sanford service in June.
Boston Logan International Airport is the gateway to New England, home to more than 14 million people, and a major tourist area.
News of the new service, supported by the Scottish Executive's Route Development Fund, was welcomed by political and business leaders on both sides of the Atlantic.
Councillor Alex Mosson, chairman of Glasgow City Marketing Bureau, said he expected the service to bring tourists to Glasgow, as well as taking Scots to Boston.
He said: "We have had intensive marketing activity in the USA over the last 12 months to showcase the city's credentials as Glasgow: Scotland With Style in this lucrative market.
"We think the impact from this new service will produce 102,000 room nights annually and result in £12 million of economic benefit to Glasgow."
Alan Barr, managing director of Glasgow Airport, said: "This new route opens up tremendous opportunities for inbound tourism and for business links between Scotland and the eastern seaboard of America. We expect this new route will prove popular on both sides of the Atlantic."
As well as its Glasgow-Orlando Sanford route, which will now run through the winter and next summer, the airline has already announced a Manchester-Cape Town service in November and a daily Liverpool-New York service next year.
Flyglobespan chairman Tom Dalrymple said: "I am delighted we can launch the service from Glasgow to Boston and give Scots the chance to visit one of the world's most exciting cities.
"We also expect it will be well received by the business community on both sides of the Atlantic because our prices in this sector compare very favourably with others."

Publication date 14/08/06

INTERVIEW-UK airline bmi eyes new medium-haul routes -CEO

BRUSSELS, Sept 27 (Reuters) - British airline bmi is eyeing more medium-length flights like its new London-Moscow route in an effort to make better use of its valuable take-off and landing slots at Heathrow airport, the carrier's chief said.

Nigel Turner, chief executive of bmi, said it was interested in establishing more mid-range flights to complement its mostly short-haul schedule, but he declined to name specific cities that the carrier had in mind.

"We hope to get other medium-haul destinations," he told Reuters in an interview, adding the potential new routes would be served by Airbus A320 planes.

Bmi, formerly known as British Midland, said in July it would start daily flights from London to Moscow from Oct. 29 jointly with private Russian carrier Transaero.

The British carrier has the second highest number of sought-after take-off and landing slots at London's congested Heathrow airport, second only to British Airways. Bmi has been looking at other new, longer routes as it seeks to expand. It started flying to Bombay in India and Riyadh in Saudi Arabia last year.

Turner said the company would eventually be in the market for new planes but was not currently in talks with aircraft makers. He said the carrier would likely stick to Airbus planes for its mainline flights, Boeing for its no-frills division bmibaby, and Embraer for regional flights.

Turner was in Brussels to meet with officials at the European Commission, whom he planned to urge to speed up moves to sign an "open skies" aviation agreement with the United States, which would eliminate existing restrictions put on transatlantic routes.

Bmi Chairman Michael Bishop owns 50 percent plus one share of bmi, while Germany's Lufthansa has 30 percent minus one share and Scandinavia's SAS owns 20 percent.

(additional reporting by Michael Smith in London)

British Airways September traffic up
4 October 2006

NEW YORK (AP) - British Airways PLC on Tuesday said passenger traffic edged up in September as capacity increased.

The London-based airline reported 10 billion revenue passenger kilometers in September, up 1.5 percent from the prior-year period. A revenue passenger kilometer equals one paying passenger flown one kilometer.

A kilometer is equivalent to about six-tenths of a mile.

Capacity increased 2.5 percent to 12.68 billion available seat kilometers. Capacity and traffic both grew about 11 percent in Africa and the Middle East, while declining in the Americas and Asia Pacific.

Load factor, or occupancy, fell to 78.8 percent from 79.6 percent a year ago.

So far this year, traffic rose 5.6 percent to 60.7 billion revenue passenger kilometers. Capacity increased 3.8 percent versus 2005, to 76.85 billion available seat kilometers, while occupancy grew 1.4 points to 79 percent.

Shares of British Airways rose $2.14, or 2.6 percent, to end at $84.74 on the New York Stock Exchange.

BA union says pension talks in danger of stalling

LONDON, Oct 6 (Reuters) - Talks between British Airways and unions over a proposal to tackle its pension deficit are in danger of stalling, the Transport & General Workers Union (T&G) said on Friday.

BA met unions this week to discuss proposals to tackle the airline's 2.1 billion-pound ($3.96 billion) pension deficit, including raising the retirement age of staff.

The T&G, which was the centre of a strike by BA ground staff last summer, said in a statement the talks may stall.

"The way things are looking at the moment it could be that we fail to agree with all the uncertainty that a talks breakdown means," Brendan Gold, T&G national secretary for civil aviation, said in a statement.

BA said it was confident the issue could be resolved.

"We believe there is progress that can be made and we hope the trade unions will continue to consult with us on this important issue," the airline said in a statement.

The union said it would meet BA again next Wednesday.

BA said on Sept. 29 its pension deficit had more than doubled to 2.1 billion pounds. It wants to reach agreement with staff on a package of measures by November.

Unions have said the proposals are unacceptable.

BA shares fell 2.0 percent to 433 pence at 1304 GMT.

Virgin to cut fuel charge by £5 a flight
14 October 2006
The Daily Express

VIRGIN Atlantic is to cut its fuel surcharge by £5 per flight in response to falling oil prices.

From next Wednesday, it will slash the charge from £35 to £30 per sector on all tickets sold in the UK.

British Airways said it had no plans to announce a matching price cut.

Virgin Atlantic acted after the price of crude oil fell below

60 a barrel in recent days, a drop of 19 per cent since prices peaked in mid-July.

Steve Ridgway, chief executive of Virgin Atlantic, said: "With lower oil prices, we can now pass some of the small savings we are making back to our travellers.

"Our fuel costs remain at historically high levels. We will continue to keep the surcharge under review, depending on the price of oil and the total costs to the business." Fuel surcharges were introduced in 2004 after crude oil hit the then unheard-of price of 40 a barrel.

Last week BA executives Martin George and Iain Burns quit as the airline admitted breaching internal rules on talking to competitors about fuel surcharges.

British minister dubs BA ban on cross 'loopy'

LONDON, Oct 16, 2006 (AFP) - A British cabinet minister on Sunday slammed British Airways for banning a Christian employee from wearing a cross around her neck, describing the decision as "loopy".

Northern Ireland Secretary Peter Hain said that he "didn't understand" the airline's ruling to suspend check-in worker Nadia Eweida, 55, for wearing a necklace with a cross to work, even though it allows Muslims and Sikhs to wear headscarves and turbans, the Daily Mail reported on Saturday.

Eweida has said that she plans to sue her employer for religious discrimination after having been suspended without pay for three weeks.

"Frankly I think the British Airways order for her not to wear a cross was loopy ... I don't understand it, I don't think anybody understands it and that is my view," Hain said in an interview on the BBC on Sunday.

The Daily Mail said Eweida, whose father is an Egyptian Coptic Christian and whose mother is English, was ordered last month by a manager at Heathrow to remove her cross or hide it beneath a company cravat.

She then asked for permission to wear the chain but was refused.

6 hurt on U.S. to London flight after jet descends because of small plane nearby
21 October 2006

TAMPA, Florida (AP) - Six people were injured when a British Airways passenger jet was ordered to descend after a small plane nearby triggered its collision warning system, officials said Saturday.

Four crew members and two passengers suffered cuts and bruises on the Oct. 10 flight from Tampa to London, British Airways spokesman Richard Goodfellow said Saturday.

Goodfellow said the aircraft, which had 175 passengers onboard, was put into a quick descent, dropping around 500 feet (150 meters) within seconds after the collision avoidance system went off.

However, the Federal Aviation Administration said Saturday the plane made a "controlled descent" of about 700 feet (210 meters) and was not in danger of collision.

FAA spokeswoman Kathleen Bergen said the British Airways 777 was traveling 50 to 60 miles (80 to 100 kilometers) north of Tampa when it was first instructed by air traffic controllers to climb to 26,000 feet (7,900 meters).

Meanwhile, a privately operated Beechcraft King Air was located a mile (1.6 kilometers) away and flying about 1,400 feet (430 meters) above the British Airways flight's altitude. The private aircraft told air traffic controllers that it was aware of the commercial airliner's position, Bergen said.

Air controllers instructed the British Airways flight, which had then reached an altitude of 16,800 feet (5,120 meters), to go to 16,500 feet (5,000 meters). The collision avoidance system was triggered and the pilot brought the plane down 700 feet (210 meters) in the controlled descent, Bergen said.

"British Airways didn't mention anything to air traffic control about injuries" during the flight, and the flight continued to London as planned, Bergen said.

She said the FAA was later notified by British Airways that four flight attendants received minor injuries.

Airbus to deliver A380s to Virgin Atlantic four years later than planned

LONDON, Oct 26, 2006 (AFP) - European aircraft manufacturer Airbus will deliver six A380 aircraft to Virgin Atlantic in 2013, a four-year delay, the British company said on Thursday.

"Virgin Atlantic has reached an agreement in principle with Airbus to defer deliveries of its Airbus A380 aircraft until 2013," a spokeswoman for the airline told AFP, specifying that that represented a delay of four years.

"By then, we believe, the A380 will have proven its innovative design over several years in commercial service," she said.

At the beginning of October, Airbus announced a third delay for delivery of the super-jumbo, because of persistent manufacturing problems. The first of the A380s will be delivered to Singapore Airlines in the second half of 2007.

The six planes to be delivered to Virgin Atlantic, which is owned by British businessman Richard Branson and by Singapore Airlines, had been due for delivery by 2009. The airline's spokeswoman said that, as a result, Virgin Atlantic has extended the leases on "several" of its Boeing 747-400 aircraft.

Green policies will hurt economy, says BA


· Heathrow must get third runway, says airline boss
· 'Millions of jobs at risk' if airport stagnates

Dan Milmo, transport correspondent
Tuesday November 14, 2006
The Guardian

British Airways has warned that businesses will quit Britain if the battle against global warming dictates the government's aviation policy and plans for a third runway at Heathrow airport are delayed.

Willie Walsh, BA's chief executive, said last night that millions of jobs would be affected if Heathrow was allowed to stagnate as an international flight hub. The department for transport is expected to update plans to build extra runways at Heathrow, Gatwick and Stansted airports when it publishes a progress report on its aviation white paper before Christmas.

Article continues
Politicians and the environmental lobby have demanded action against the aviation industry, which is one of the fastest-growing contributors to carbon dioxide emissions and is under pressure to curb expansion plans. So far its response has been mixed. Ryanair chief Michael O'Leary has described calls for aviation taxes as "the usual horseshit", while Sir Richard Branson's Virgin Atlantic airline is forming a green aviation body.

Mr Walsh said in a speech at the Royal Aeronautical Society in London that Heathrow was losing its competitive edge to European rivals such as Frankfurt. He said its cramped conditions were putting off travellers while other flight hubs offered access to international destinations with fewer delays. BA has asked the government to hold a public consultation next year on whether there should be a third Heathrow runway, with a view to building it by 2015.

"In 25 years, Heathrow could be an aviation backwater - as relevant to the world economy of the mid 21st century as London's former East End docks. Even if we focus solely on Europe, we can see the threat to Heathrow's position over the next decade if nothing is done to increase runway capacity," he said.

If the rate of competitive decline continued, Heathrow's network of destinations would be nearly half the size of that offered by airports in Frankfurt, Paris and Amsterdam, which would affect the British economy and threaten millions of jobs, he said. "Without convenient access to markets, suppliers and investors, businesses cannot grow - and will simply relocate to centres that offer them the connectivity they need. Under present constraints, that means out of the UK," he said.

A 2km runway would increase the number of flights to and from Heathrow to 700,000 per year, up from 470,000, said Mr Walsh. A forthcoming study by Oxford Economic Forecasting is expected to back the case for a third runway by arguing that expansion at Heathrow would boost the economy. A report by the Treasury published three years ago said increased capacity at the airport would contribute £7.8bn to British gross domestic product.

"We cannot hope to maintain London's status as a premier league business centre, supporting millions of jobs across the country, unless we provide the world-class air links that businesses need in a global economy," Mr Walsh said.

His comments met with immediate criticism from the green lobby. Tony Bosworth, aviation campaigner at Friends of the Earth, said the government must rule out expansion of Heathrow as part of any drive to reduce carbon emissions.

Aviation accounts for 5.5% of British carbon emissions, but that could rise to a quarter by 2050 if no action is taken to curb airlines' emissions, according to a recent report from Oxford University.

"Aviation is the fastest-growing source of carbon dioxide emissions in the UK. More runways will mean more emissions at a time when we are trying to make big cuts. If the government is serious about tackling climate change it must abandon its airport expansion plans," Mr Bosworth said.

The DfT backed a third runway in an aviation industry white paper three years ago. However, it said the runway should be moved to Gatwick if Heathrow's owner, BAA, was unable to reduce noise pollution and cut concentrations of nitrogen dioxide around the airport.

The BA chief executive reiterated the company's support for the EU carbon emissions trading scheme, which will put a cap on aviation emissions and charge airlines that exceed their quotas.

He said that blocking all the airport expansion proposals in the white paper, which also advocated a second runway at Stansted, would have a minimal effect on global warming. If all the proposals were implemented, global carbon emissions would increase by 0.03% by 2030.

British airports operator BAA faces referral to competition watchdog

LONDON, Dec 12, 2006 (AFP) - BAA, the company that owns most of London's busy airports, is delivering expensive but poor quality service to passengers and its dominant position should be investigated, officials said Tuesday.

"We believe that the current market structure does not deliver best value for air travellers in the UK, and that greater competition within the industry could bring significant benefits for passengers," Britain's Office of Fair Trading (OFT) said.

The office said it would probably refer BAA to the country's Competition Commission "for more detailed investigation" but would wait for reaction from interested parties before taking the step.

British airlines have been calling for the break-up of BAA, which runs seven airports in Britain, including Heathrow, Gatwick and Stansted, which serve London.

They argue that separate ownership of London airports would make infrastructure developments more responsive to airlines' and their customers' needs, and that, as the chief executive of British Airways put it, "expansion at one airport would not be held back to suit the commercial needs of a monopoly owner."

Almost two-thirds of British air passengers begin or end their journey at BAA's airports, according to the OFT. Within the London area nine out of ten passengers fly through a BAA airport.

The OFT had in June announced a preliminary probe into the market position of BAA, which was bought this year for 10.23 billion pounds (14.8 billion euros, 18.8 billion dollars) by a consortium led by the Spanish construction group Ferrovial.

Ferrovial said it would not be commenting on the situation for the time being, while BAA did not immediately put out a formal response to the OFT's move on Tuesday.

BAA in August dismissed calls by airlines for its break-up, arguing that a more fragmented ownership structure "would undermine vitally needed investment in airport capacity."

Irish budget airline Ryanair welcomed Tuesday's OFT's decision and called on the Competition Commission to recommend the break-up of what it called "the BAA monopoly."

OFT chief executive John Fingleton said Tuesday that "there is evidence of poor quality and high charges -- BAA's investment plans, which are of great importance to the UK, have raised significant concerns among its customers.

"These are signs of a market not working well for consumers and we believe that a full inquiry into BAA's structure is justified," he said in a statement.

The OFT market study has found that in the London area, BAA's airports handle 90 percent of passenger trips, and these airports could under separate ownership compete to attract air passengers.

The office said it was planning an eight-week consultation before formally deciding to refer BAA to the Competition Commission.

"The conclusion on referring BAA to the CC is provisional -- the OFT now invites comments before reaching a final conclusion," it said.

BAA was also under fire in August over its handling of heightened security measures in the wake of an alleged plot to bomb US-bound planes.

The operator had ordered airlines to cancel hundreds of flights as security and baggage personnel could not process all passengers with the restrictions banning carry-on luggage. The restrictions have since mostly been lifted.

BA hopes to place new aircraft orders in 2007

LONDON, Jan 17 (Reuters) - British Airways hopes to place new aircraft orders this year, a spokeswoman said after the Times reported the carrier would spend 15 billion pounds ($29.49 billion) over 15 years on up to 135 long-haul planes.

"We have not yet given a definitive number of aircraft," the spokeswoman said late on Wednesday in response to the article.

"We hope to be placing orders in 2007."

The Times, in its Thursday edition, said BA would spend 1 billion pounds a year over 15 years to renew its ageing fleet.

The firm was also thinking about using Airbus, the European aircraft maker owned by EADS , planes to replace its current long-haul portfolio of aircraft by Boeing of the United States, the newspaper said, citing unnamed BA executives.

BA hoped to announce the new order in about three months, according to the Times.

The spokeswoman said there was competition for the work.

"The competition continues. It is very competitive between Airbus and Boeing," she added.

Air travelers begin paying controversial higher tax to leave the country
By JANE WARDELL
1 February 2007

LONDON (AP) - Passengers flying out of Britain began paying higher duties to leave the country Thursday, as airlines and tour operators considered legal action over the controversial new government tax.

Environmental groups have also criticized the doubling of the passenger duty on air travelers, despite claims by Treasury chief Gordon Brown that it would help compensate for damage to the climate from carbon emissions.

Tour operator First Choice said it was launching a legal challenge on the way the new tax was introduced without a debate and subsequent approval in Parliament -- Brown announced the new charges just last month.

"The lawyers have said (the government) failed to get Parliamentary approval correctly in the way they've processed it," said spokesman Dermot Blastland. "We feel it's been rushed in, it's unfair and particularly the retrospective nature as well."

The Board of Airline Representatives, whose clients include British Airways PLC, Virgin Atlantic Airways Ltd. and Emirates, said it was still considering legal action.

"We're not ruling it out. It's a very complex area and it brings us into debate with either domestic law or international law," said spokesman Mike Carrivick.

Carrivick said the retrospective application of the duty on passengers leaving Thursday, but who had purchased their tickets before Brown's Dec. 6 announcement, was a "huge burden."

The duty has increased from 5 pounds (US$9.80; euro7.60) to 10 pounds (US$19.70; euro15.20) for economy-seat passengers taking domestic and European short-haul flights, and from 20 pounds (US$39.30; euro30.30) to 40 pounds (US$78.70; euro60.75) for economy-seat travelers on long-haul flights.

Business and first-class passengers face increases of 10 pounds (US$19.70; euro15.20) for short-haul flights and 40 pounds (US$78.70; euro60.75) for long-haul.

Lawrence Hunt, the chief executive of business class-only trans-Atlantic carrier Silverjet, which includes a mandatory 15 pound (US$29.50; euro22.70) carbon offsetting charge in its ticket price, reflected the attitude of most airlines by calling the charges "stealth taxes in green camouflage."

"The tax is counterproductive, as passengers may believe they have already offset their carbon emissions by having paid this tax, when in fact the tax will not result in one iota less carbon being produced or offset," Hunt said.

The Treasury Office said it was satisfied there was no grounds for a legal case against the government because there were precedents for tax changes outside the normal budget process. It added that the tax was not directed at passengers.

"It is airlines and travel companies -- not passengers -- who are liable for Air Passenger Duty, and it is a commercial matter for those companies whether or not, and how, they choose to pass this on to passengers," it said.

BA and Continental Airlines Inc. chose to absorb the tax for those passengers who had booked flights before Feb. 1 for travel after that date, but most other airlines passed the charge on to customers.

Friends of the Earth's economics campaigner Dave Timms said that the tax was not enough to dissuade travelers or raise enough revenue to provide transport alternatives.

"The government must do more to make the cost of air travel reflect the damage that it causes to the environment," Timms said.

They tax passengers but they don't tax the fuel! Can someone please try and work that one out?

They don't tax the jet fuel / kerosene in the UK or their source materials?

British Airways says January passenger figures fell 2.8 percent
5 February 2007

LONDON (AP) - British Airways PLC said Monday that January traffic fell 2.8 compared with the same month in 2006, with the threat of strikes from cabin crews particularly affecting higher-prices ticket sales.

Traffic was measured in terms of revenue derived from each kilometer traveled by its passengers. Passenger load factor -- or the amount of space taken up on BA's planes by passengers -- slipped 3 percentage points to 69.5 percent, the airline said in a statement.

"This month's statistics were significantly impacted by the threat of industrial action," the company said. "Premium volumes suffered the largest reductions as most tickets are flexible and refundable, and customers are easily able to move to other carriers."

BA said it saw a 3.1 decrease in premium traffic and a 2.7 percent decrease in non-premium traffic.

A proposed 48-hour walkout last week was called off at the last minute, though BA said Friday it was still likely to cost 80 million pounds ($157.3 million) in lost revenues because a deal with the union came after it already announced flight cancelations, offering passengers refunds, later flights and transfers to other airlines.

British Airways shares dipped 1 percent to 548.5 pence (US$10.79; euro8.33) on the London Stock Exchange.

Emirates denies interest in British Airways stake

DUBAI, Feb 7 (Reuters) - Emirates [EMAIR.UL], the largest Arab airline, on Wednesday denied market speculation it was interested in buying a stake in British Airways .

"No, no, there's nothing in it," Maurice Flanagan, the company's vice chairman, told Reuters by telephone in Dubai.

"This is probably the fourth time it's happened."

Shares of British Airways soared 3.7 percent to their highest in more than eight years as traders cited positive broker notes and talk of a possible bid from Emirates. A spokesman for BA declined to comment on the bid talk.

Corporate customers rebel against new BA charges: report

LONDON, Feb 16, 2007 (AFP) - A coalition of more than 40 global companies and travel management agencies have written to British Airways, threatening to switch to competitors if it went ahead with plans to change its policies on booking business flights, the Financial Times said on Friday.

The companies, based in Britain, continental Europe and the United States, are angry over BA plans to pass along booking administration costs to corporate customers and the airline's intentions to withhold information, such as seat availability, from the global distribution systems (GDS) that connect customers with ticket sellers.

"You are directly threatening the loss of your most valuable customers by imposing costs already included in the price of our tickets and hampering technology that is critical to the efficient functioning of our modern corporate travel programmes," the companies wrote in the letter.

Keith Mitchell, a spokesman for the Business Travel Coalition, which organised the letter, said that BA's plans could add between five and ten percent to the cost of a BA flight for businesses.

According to the business daily, the companies called on BA chief executive Willie Walsh to stick to the "trusted, established channel" of providing content to GDSs and travel management companies.

BA is negotiating new terms on contracts with major GDS providers, with its three-year deal to provide airline data to GDSs set to expire next month. The airline has said that a failure to reach a new agreement with the providers would mean it would have to pass along its entire booking fee to ticket prices.

The report is the latest in a string of negative publicity for the airline, which narrowly averted a strike by cabin crew late last month, and was hurt by severe fog over the peak Christmas period that sparked 800 flight cancellations.

It said about two weeks ago that third-quarter net profits sank 12 percent, and revealed it would lose 80 million pounds (119 million euros, 156 million dollars) from the aborted strike.

Tour operators to challenge British airline tax

LONDON, Feb 26 (Reuters) - A tax on UK air passengers was attacked by tour operators on Monday who said they planned a legal challenge which could force the government to repay holidaymakers and airlines more than 2 billion pounds ($3.9 billion).

Britain's Federation of Tour Operators (FTO) said it would challenge the legality of Air Passenger Duty (APD), adding if its high court bid is successful the British government would be forced to scrap the tax.

British Chancellor Gordon Brown doubled the duty -- first imposed in 1994 -- in December's Pre-Budget Report, taking the levy on short-haul flights to 10 pounds from Feb. 1 and on long-haul to 40 pounds.

The FTO claims that under international laws included in European legislation in 2004 -- since when the duty has raised over 2 billion pounds -- the government is not entitled to impose charges on aircraft solely for the right of transit over, or flying in or out of Britain from another country.

"Charges are only permitted if they are cost-based in relation to the provision of a service, such as use of airports or air navigation services," the FTO said in a statement.

"APD is not levied for any such service and is simply a tax which raises revenue for general government spending ... As a result APD is in contravention of Article 15 of the Chicago Convention, has been illegal under EC law at least since 2004 and should be withdrawn with immediate effect."

Unlike airlines, tour operators, in most cases cannot pass the rise on to holiday makers who booked their trip before February.

The FTO claims the new tax rules breach the human rights of operators by not allowing them pass on the higher charges to holiday makers who booked early.

"The government is confident that APD is entirely legal and will robustly defend any challenge in the courts," a Treasury spokesman said.

Treasury minister John Healey has already defended the legality of the hike after being quizzed in parliament.

FTO's Andrew Cooper told Reuters that it had only discovered the issues when it was looking into the government's decision to impose the new hikes.

Budget airlines have also attacked the rise in duty as a ploy to cash in on the rapidly growing market for no-frills flights.

British Airways says eager to join consolidation

TOKYO, March 1 (Reuters) - British Airways wants to take part in global consolidation but expects regulatory hurdles to hinder cross-border deals, Chief Executive Willie Walsh said on Thursday.

Separately, chief executives of American Airlines and Finnair anticipated more fund-led buyouts in the industry after Australia's Qantas agreed to an $8.7 billion takeover by a consortium including Macquarie Bank.

The global airline sector has seen a wave of consolidation attempts, such as a failed bid by US Airways Group for Delta Air Lines and merger talks between UAL Corp.'s United Airlines and Continental Airlines.

Heavy international regulation, over-capacity in some regions, rising fuel prices and terrorism have all undermined earnings and driven several airlines into bankruptcy in recent years.

"I think the industry will definitely benefit from it (consolidation), and British Airways would definitely want to participate in it," Walsh said on the sidelines of a briefing by "oneworld" airline alliance members.

"But I think we need a regulatory framework that will facilitate it and we don't have that right now."

BusinessWeek magazine reported last month that AMR Corp. may be a buyout target by a group including British Airways and Goldman Sachs, although sources familiar with the matter said the two parties had no current plans to bid for the American Airlines parent.

Analysts viewed the reported scenario as unlikely because it would face close anti-trust scrutiny and restrictions on foreign ownership, while strong labour unions are also seen limiting successful cross-border deals.

For example, U.S. law caps foreign ownership in the country's airlines at 25 percent, which would restrict British Airways' influence and would complicate any benefits that could be gained from the increased scale even if the airline bids for AMR.

FUNDS' REACH

Australia's Qantas, another "oneworld" member, in December agreed to a takeover bid by Airline Partners Australia, a consortium which includes private equity firm Texas Pacific Group, Allco Equity Partners, Allco Finance Group and Canadian investment firm Onex Corp..

Texas Pacific, which helped fund Continental Airlines' emergence from bankruptcy in 1993, is also involved in the bidding for Italian carrier Alitalia.

"Equity investors ... they have been gaining weight. They are much stronger now than they were five years ago," Finnair chief executive Jukka Hienonen said.

"Some of the airlines have things that interest them -- restructuring potential, strong cash flow and a lot of sellable assets."

Whether funds' interests in the airline industry are seen as a threat or an opportunity, he said, depends on each case.

In Qantas' case, the airline was interested in talking as it saw itself constrained by a share market that has not recognised the group's value and limits its ability to raise the capital it needs to fund its fleet and growth plans.

"Certainly the evidence is that there is a lot of money moving around globally," American Airlines chief executive Gerard Arpey said. "There is a lot of money controlled by private equity firms, and there is certainly a lot of interest in aviation."

Man tells of first class flight with corpse-report

LONDON, March 19 (Reuters) - A passenger in first class woke up to a shock when he found himself sitting near a corpse on a British Airways flight, British newspapers reported on Monday.

Paul Trinder, 54, said cabin crew moved the body of the elderly woman from the economy section where she had died after take-off, the Mirror and Sun tabloids said.

"The corpse was strapped into the seat but because of turbulence it kept slipping down on to the floor," Trinder, a businessman, was quoted as saying. "It was horrific. The body had to be wedged in place with lots of pillows."

The woman's daughter was also upgraded and spent the rest of the nine-hour flight from Delhi to London grieving next to her dead mother, the Sun reported.

The Guardian newspaper said the incident happened last week.

British Airways has apologised for any distress suffered, according to the reports. The Mirror quoted BA as saying: "We apologise, but our crew were working in difficult circumstances and chose the option they thought would cause least disruption."

British Airways cabin crew reach agreement on pay and conditions
17 April 2007

LONDON (AP) - British Airways PLC's cabin crew voted by a 3-1 margin to accept a deal on pay, pensions and other employment issues, the union said Tuesday, resolving a dispute that threatened to spark industrial action earlier this year.

The Transport and General Workers Union said the vote means 11,000 cabin crew members have endorsed an agreement worth an 18.75 percent increase in their pensionable pay and accepted changes to help deal with the 2.1 billion pound (euro3.1 billion; US$4.2 billion) deficit in the airline's pension plan.

"This is a good result for our members, BA and the traveling public," said Jack Dromey, T&G deputy general secretary. "We welcome the direct involvement cabin crew representatives will now have with BA Chief Executive Willie Walsh."

Cabin crew had voted for strike action earlier this year over a number of issues from pay and pensions, sickness absence policy and staffing levels. They called off the strikes, but it still proved costly for the airline because of flights it had canceled in anticipation of the walkout.

British Airways shares rose 0.8 percent to 517 pence (US$10.28; euro7.59) on the London Stock Exchange.

British Airways Prepares for Fine
18 May 2007

LONDON (AP) - British Airways PLC on Friday admitted anticompetitive behavior while posting a net loss for its latest quarter.

The airline said it has earmarked 350 million pounds ($690 million) to cover fines that are likely to stem from an investigation into whether senior staff had discussed fuel surcharges on tickets with rivals, after acknowledging "breaches" of policy.

BA reported a net loss of 124 million pounds ($244.5 million) in the fourth quarter, compared to a net profit of 80 million pounds ($157.8 million) a year ago, after threatened cabin crew strikes in January and a new British tax on flights bit into the carrier's bottom line.

Revenue dropped 6 percent to 1.9 billion pounds ($3.8 billion) after thousands of passengers canceled their reservations before the strike was dropped, costing the carrier 80 million pounds ($157.8 million).

British Airways stock closed down 2.9 percent on the London Stock Exchange.

BA noted that it had experienced "unprecedented disruption" over the whole year, including several labor disputes and a weaker U.S. dollar. A terrorist alert at Heathrow last summer grounded hundreds of flights and led to higher security costs.

Full-year profit was down 35 percent at 304 million pounds ($599.5 million), despite a 3.4 percent uptick in revenue to 8.5 billion pounds ($16.7 billion).

The carrier also has further threats looming in the form of fierce competition on its key trans-Atlantic route following the "open skies" agreement to liberalize the allotment of airport slots among international carriers.

"BA seems determined to do things the hard way and today's figures summarize a difficult year," said Richard Hunter, head of UK equities at Hargreaves Lansdown Stockbrokers.

However, Hunter added that the shares had been supported by BA's focus on increasing margins, particularly via its "premium cabin" strategy and the potential offered by the new Terminal 5 at Heathrow Airport, which is due to open in March 2008.

The airline is being investigated by British and U.S. authorities over the allegations of price fixing. If found guilty of breaching antitrust rules, it could be fined either up to 10 percent of sales on its lucrative trans-Atlantic routes or 10 percent of its total group sales.

Two senior executives quit in October after being linked to the investigation. Chief Financial Officer Keith Williams said the investigations were "unlikely to be resolved for some time."

BA also announced that it had placed an order for eight Airbus A320 aircraft, for delivery in 2008-2010, as its renews its short-haul fleet.

BA left stinging by curry explosion at 35,000 ft

LONDON, May 22 (Reuters) - British Airways has banned cabin crew from microwaving their own food after a curry exploded at 35,000 feet, causing around $40,000 of damage to an aircraft.

A fire extinguisher was used to tackle the blaze on April 30 on a Heathrow to Miami flight, when the high-powered microwave ignited a ready meal that a stewardess had bought from a supermarket. "The fire lasted only a couple of seconds," said a BA spokesman. "As a precaution a specialist extinguisher was used in the microwave. However, at no time was there any danger to passengers or the aircraft."

BA eyes all business-class U.S.-Europe flights

NEW YORK, May 21 (Reuters) - British Airways Plc is considering all-business-class flights on routes between the United States and continental Europe, its chief executive said on Monday, as the carrier looks to tap the lucrative end of the expanding transatlantic market.

Europe's second-biggest airline by traffic is considering such services as a way to take high-margin business from rivals Air France-KLM and Lufthansa , as the market for flights between the United States and European Union opens up next year.

BA, Britain's flag carrier, is mulling the upscale move after start-up airlines such as Eos pioneered business-class only flights between London and New York in 2005.

"That is something we are looking at, but it hasn't been finally decided," BA Chief Executive Willie Walsh told investors and reporters at a meeting in New York on Monday, when asked about business-class-only services.

The airline, which has been increasing the number of expensive or "premium" seats on long-haul flights, is focusing on rising demand in the business and first-class sector, which is more profitable than economy.

"We continue to see strong demand for premium and a softer demand for non-premium," said Walsh. "That plays to the strengths of our proposition."

He said BA had already made a filing with U.S. regulators to fly from the United States to other countries in the European Union, which will be allowed under the recently signed "open skies" agreement that comes into effect next year.

Under World War II-era barriers, European carriers have been barred from operating services between the United States and a country other than their own.

Walsh said it would not be difficult to adapt mid-sized Boeing Co. 757s and 767s it already owns into all-business-class configurations.

The airline is also looking at buying Airbus's A380 superjumbo, but won't make a final decision until September, as it weighs up the plane against Boeing's new 747-8 jumbo.

"We will need to be convinced that the aircraft (A380) is right for us in the long term, over the next 25 to 30 years," Walsh said. "Clearly price will be a very important factor."

Airbus, owned by European aerospace group EADS , has struggled with production issues on the giant plane, but Walsh said he believed it would be a technological success.

The A380, which will seat 555 people in a standard layout, could be an attractive option for routes such as London-Hong Kong, where BA needs to move a large number of passengers in a narrow time window, Walsh said. Boeing's rival 747-8 Intercontinental jumbo will seat 467.

BA is likely to make a final decision in September over new long-haul fleet orders, Walsh said.

He added that BA's little-traded American Depositary Receipts would be delisted in early June, as the cost of meeting U.S. regulations was outweighing any advantage to having them listed.

BA take Airbus superjumbo test flight


Senior British Airways executives have travelled to Airbus's headquarters in Toulouse to take a flight on the A380 superjumbo as part of their fleet-replacement deliberations, the Times newspaper reports.

BA is planning a $12 to $15 billion replacement of its ageing longhaul fleet and both Boeing and Airbus are fighting to win this prestigious order. It is expected to announce a plane order, for delivery from 2012, in the autumn.

The airline has traditionally been a Boeing customer and its 57 747-400s comprise the largest jumbo fleet in the world. However, with space at BA's Heathrow base increasingly limited, the 550-seat A380 could be an attractive alternative to Boeing's smaller 747. Interestingly its new base at the hub, Terminal 5, where it will be the sole tenant, has been built to accomodate the giant plane.

Robert Boyle, BA's commercial director, took a team to France yesterday to take a test flight. Willie Walsh, the chief executive, did not attend, the newspaper reports. Airbus briefed the BA team on both the A380 and its new A350XWB, which is a competitor to Boeing's new 787 Dreamliner. The day ended with a flight on the A380.

British Airways weathering turbulent conditions well
3 November 2007
The Times

He may have shed some of the "Slasher" image from his Aer Lingus days, but Willie Walsh was always going to be judged in his first two years as chief executive of British Airways by his success in tackling costs.

Yesterday's half-year results show that despite countless controversies over the past 12 months, including the restructuring of the staff pension scheme, price-fixing fines, security chaos and mountains of lost luggage, BA is beginning to look that much leaner.

Even taking into account a burgeoning fuel bill, which could top Pounds 2 billion this year, costs were down Pounds 150 million in the six months to September 30, with total unit costs 2.6 per cent lower. Costs for the full financial year to the end of March 2008 are expected to be Pounds 100 million lower.

BA frayed a few nerves yesterday by cutting its revenue growth target for the second time on the back of the weakening dollar. About 20 per cent of its customers come from the US, whose ticket sales have to be converted back into sterling.

However, the airline is still forecasting that revenue will be at least 3 per cent higher this year in a market that is becoming tougher by the day as low-cost rivals lure away more of BA's economy traffic.

Fortunately for BA, growth in premium traffic -first and business class -has held up despite softness in the North Atlantic, the most lucrative premium market of them all. Yields across the business as a whole rose 0.5 per cent.

The challenge for Mr Walsh over the coming months will be to ensure that the airline hits its challenging 10 per cent operating margin target for 2007-08. This could trigger the first dividend payment from the airline since before the September 2001 terrorist attacks and lift a share price that is still 27 per cent below February's high.

The oil price looms large. BA has hedged 90 per cent of its current demand at $68-70 a barrel, insulating it from record $96 a barrel crude. However, the hedging cover drops to 45 per cent in the first half of 2008-09 and BA could face earnings downgrades if the oil price stays at the current record highs well into next spring.

There is also continued uncertainty over how "open skies" and the liberalisation of the North Atlantic market next March will affect BA despite congestion at Heathrow and the lack of landing slots for its rivals.

Mr Walsh will be crossing his fingers that Heathrow is not beset by any further operational problems in the five months that remain until Terminal 5 opens. BA has long promised that once in T5 the poor customer service suffered by passengers will be a thing of the past. Any upset before then will spark yet more negative headlines, and more importantly, yet more financial pain for an airline that can ill afford it.

Despite these concerns, and the strong fuel-related caveat, the shares, down nearly 3 per cent at 418p, are still trading on a relatively low multiple of eight times earnings, against a peer group that sits at ten times. Reason enough to hold on.

UK to lift curbs on hand luggage from January

LONDON, Nov 14 (Reuters) - Security restrictions on hand luggage carried onto passenger planes in Britain will be lifted starting in January, the British government said on Wednesday.

The restriction was introduced in August 2006 after British police said they foiled a plot to blow up U.S.-bound airliners over the Atlantic using liquid explosives.

The tight security measures initially caused chaos at London's Heathrow airport and drew complaints from airlines. British Airways says that its business has been hit.

"Starting with several airports in the New Year, we will work with airport operators to ensure all UK airports are in a position to allow passengers to fly with more than one item of hand luggage," Prime Minister Gordon Brown said.

Transport Secretary Ruth Kelly said because airports were so busy during the Christmas period, the earliest the lifting of the restriction could take effect would be January 7, 2008.

"This is not about relaxing security. It's about allowing airports to take advantage of smarter technologies," Kelly said.

Brown also said the government planned additional screening of baggage and passenger searches at large railway stations.

British Airways says Dec passenger traffic up 1 pct

LONDON, Jan 4 (Reuters) - British Airways said on Friday its passenger traffic rose 1 percent in December, boosted by a 6.5 percent increase in premium first- and business-class traffic.

Europe's third-biggest airline said its passenger load factor -- a measure of how efficiently it fills its seats -- fell 0.7 percentage points from a year earlier to 73.5 percent.

"Longhaul premium markets remain strong, while shorthaul premium traffic is weak," it said in a statement.

"Our guidance on revenue of a 3-3.5 percent increase for the year remains unchanged."

UK rules against BAA on Stansted airport price caps

LONDON, Jan 15 (Reuters) - Runway charges for airlines at London's Stansted airport will continue to be capped, the government said on Tuesday, a move that pleased the carriers but thwarted the ambitions of airport operator BAA.

BAA, owned by Spain's Ferrovial, said it still wanted the price caps removed but welcomed the government's support for a second runway there.

Ferrovial shares had fallen 6.4 percent to 43.1 euros by 1621 GMT, versus a 3 percent fall in Spain's blue-chip Ibex index.

"In making my decision on Stansted, I have taken into consideration the fact that the airports in the south-east are now operating at almost full capacity," said Transport Secretary Ruth Kelly. "This is bad for passengers in terms of delays, congestion and lack of choice."

She said price caps were needed to protect passengers who had little choice of going elsewhere. But caps were lifted at Manchester airport where competition from other airports is stronger.

Budget airline easyJet welcomed the move, but said airport regulation in the UK was "fundamentally flawed" and needed a rethink.

"Without regulation, customers would be at the mercy of a highly-indebted infrastructure owner seeking short-term profit maximisation at the expense of air traveller," said easyJet Planning Director Andrew Barker.

Irish rival Ryanair said the airlines had lost faith in Britain's Civil Aviation Authority (CAA) after it recommended the caps be lifted.

"The fact that it was the CAA who proposed this crazy de-designation idea in the first place shows how completely out of touch they are," said Ryanair's Jim Callaghan.

"The only solution to the BAA monopoly is to break it up and allow each airport to develop additional capacity, which will enable them to compete with one another," he added.

The Stansted Airline Consultative Committee (ACC), which represents airlines, also said the CAA had abandoned its duties.

"While the CAA was busy attempting to de-regulate Stansted, BAA doubled passenger charges, which is driving traffic away from the airport and depriving consumers of choice," said Stansted ACC's David O'Brien.

British Airways plane landed short of the runway injuring three passengers.
_____________________________
There! I said it FIRST! XP

http://news.yahoo.com/s/ap/20080117/ap_on_re_eu/britain_plane

http://news.bbc.co.uk/2/hi/uk_news/england/london/7194086.stm

http://news.bbc.co.uk/2/hi/in_pictures/7194201.stm

Airlines: Drop in flights through British airspace
13 August 2008
The Guardian

The number of flights through British airspace has fallen for the first time since the post-September 11 downturn, as high fuel costs force airlines to cut back services.

NATS, the company that handles Britain's air traffic, said it dealt with 1,401 fewer flights in July compared with the same month last year. The latest proof of sweeping flight cutbacks follows a recent announcement that the global airline industry will fly nearly 60m fewer seats in the final three months of the year.

The fall in flights comes during the peak summer season, when the airline industry is supposed to be at its strongest. Ian Hall, director of operations at NATS, said: "The aviation industry has always been a barometer of the wider economy so it should not come as any surprise to see a slight slowdown, particularly since the airlines have signalled some cutbacks to services."

NATS said its two largest customers - Heathrow and Gatwick - broke monthly records, but the overall trend was nega tive. The number of transatlantic flights fell by 457, while the number of domestic flights fell by 201, though green campaigners credit the resurgence of the rail industry for much of that decline. Other flights, including services to Europe, Asia and the Middle East, dropped by more than 1,200. Although the figures show a slight increase in the year to date, growth between January and July has more than halved since last year, indicating a tailing off as the year has progressed.

Britain's leading airlines have announced plans to slash growth or reduce capacity over the past few months. British Airways is reducing the number of seats it is flying this winter by 3%, including the termination of several routes out of Gatwick. Ryanair, Europe's largest budget airline, is grounding 20 planes over the same period and easyJet is halving expansion plans.

Global airline capacity will fall by 7% between October and December, according to travel information company OAG, representing a deeper cut in flights than in the aftermath of the September 11 attacks. One of the fastest-growing markets, Asia, will see a 13% reduction in the number of seats flown, in effect taking that market back to where it was three years ago. However, the biggest cut is in US domestic flights, the world's biggest airline market. The OAG report added that routes will be cut at 275 airports around the world.

BA offers severance to 1,400 managers
By Kevin Done, Aerospace Correspondent
13 September 2008
Financial Times

British Airways is offering voluntary redundancy to up to 1,400 managers, as it seeks to cut costs.

The airline's profits have plunged this year in the face of the surge in its fuel costs and weakening demand in its main markets, in particular n the UK and the US.

Willie Walsh, BA's chief executive, has warned the group is "in the worst trading environment the industry has ever faced."

The airline said yesterday: "We must take action to offset the combined effects of the continuing global economic downturn, weakened consumer confidence and high fuel prices."

One of the first big cost-cutting moves taken by Mr Walsh after becoming BA's chief executive in autumn 2005 was to axe more than a third of the airline's managers with the loss of 597 positions. The number of senior managers was halved.

BA's first-quarter pre-tax profits for the three months April to June fell by 88 per cent forcing it to take drastic action to try to avoid falling into loss in the full year.

The company has already announced plans to cut flights during the winter, to raise air fares, reduce capital spending and slash jobs through natural attrition.

It said yesterday it had decided to give managers and senior managers the option to apply for voluntary severance.

BA said it expected a rise of £1bn in fuel costs to more than £3bn for the financial year to the end of March in spite of an extensive fuel hedging programme.

BAA puts London's Gatwick airport up for sale
17 September 2008

LONDON (AP) - London's Gatwick was put up for sale on Wednesday following pressure from government regulators who believe the owner controls too many airports.

BAA Ltd., which also owns Heathrow and Stansted airports, said it decided to sell following the Competition Commission's provisional report on Aug. 20, which recommended that the company dispose of two of its three London airports.

Virgin Atlantic Airways quickly declared its interest in buying Gatwick. Other potential bidders reportedly include Global Infrastructure Partner, the GE-Credit Suisse Investment fund, Australia's Macquarie Group and Hochtief of Germany.

BAA has previously said it would not sell Heathrow, and it added on Wednesday that it was determined to hold on to Stansted, north of London.

BAA also operates airports at Edinburgh, Glasgow and Aberdeen in Scotland, and Southampton in England. The Competition Commission recommended that it sell either Edinburgh or Glasgow.

Gatwick, the second-busiest airport in the United Kingdom, handles 35 million passengers a year.

"Gatwick has long been an important and valuable part of BAA and the decision to sell was not taken lightly. We believe that the airport's customers, staff and business will benefit from the earliest possible resolution of current uncertainty," said Colin Matthews, the company's chief executive.

At Stansted, he added, "we believe that a change of ownership would interfere with the process of securing planning approval for a second runway, which remains a key feature of Government air transport policy."

Virgin Chief Executive Steve Ridgway said the company "would relish the opportunity to bid for Gatwick as part of a consortium and inject our customer service expertise into any future running of the airport."

"But Gatwick doesn't just need a new owner, it needs a much tougher regulatory system."

A union representing airport workers was dismayed by the news.

"It simply beggars belief that a 'for sale' sign can be hung across the country's second largest airport," said Steve Turner, national officer of the Unite union.

"Gatwick is a core component of the national infrastructure and an essential part of the UK's aviation sector yet it is to be flogged off with little care for the wider social impact."

BAA was formed from the privatization of the British Airports Authority in 1986. The company was taken over in 2006 by a consortium led by Spain's Grupo Ferrovial.

When breaking up is right to do
The sale of BAA-owned airports should benefit consumers
19 December 2008
Financial Times

The prospect of three independently run London airports is close to securing clearance. The UK competition watchdog's proposed break-up of BAA, including the sale of Gatwick and Stansted, is welcome. While divestments are not a complete solution to the problem of too few runways, competition should raise the airports' performance. Passengers should benefit from a more efficient service.

If the process can be managed without it becoming a firesale for Ferrovial, BAA's debt-laden owner, the Competition Commission's case for the break-up is compelling. The airports operator has been rightly criticised for being unresponsive to the needs of airlines and passengers. Separate owners would have more incentive to meet those needs.

This year's opening of Heathrow's fifth terminal improved the experience of those who had come to dread its clogged runways and tatty baggage halls. But, assuming that the world emerges from the current economic downturn, a projected doubling in passenger traffic at UK airports by 2030 from 2005 levels means it may not be long before the airport is struggling to cope again.

Different operators at Heathrow, Gatwick and Stansted would mean more sources of investment for these airports and the ability to focus on more than one big project at once. Another benefit is that regulators would be able to use one operator as a benchmark for others.

But there are limits to what competition can achieve. Gatwick and Stansted cannot seriously challenge Heathrow as international hubs. Beyond divestment, the regulatory regime must change. The present system allows the Civil Aviation Authority to intervene only once every five years when it revises price controls. This is too blunt an instrument. The commission's plan for a licence-based regime, similar to that used for some other regulated utilities, would give the watchdog a broader and so more flexible basis on which to intervene. It could set performance standards or address financing.

Nor has the fundamental question of how to meet the need for additional runway capacity in the south-east been answered. Stronger political will for a third runway at Heathrow is needed. It is hard, otherwise, to see how the airport will compete as a hub with European rivals. A policy of neglect would hurt London's status as a financial centre.

Five years have passed since ministers set out a vision for the expansion of Heathrow and Stansted. Cabinet dithering has clouded that thinking. A clear government policy is all the more important now that BAA faces break-up.

Go-ahead for new Heathrow runway

http://newsimg.bbc.co.uk/media/images/45377000/gif/_45377955_heathrow_map466_1.gif


The government has given the go-ahead for a third runway at Heathrow, saying it is "right" for the UK but opponents have vowed to fight the plans.
Environmental campaigners, residents and many MPs attacked the decision but business groups and unions welcomed it.
Transport Secretary Geoff Hoon told MPs that strict measures would be put in place to limit noise and emissions.
The debate was halted and local MP John McDonnell thrown out after he grabbed the mace and shouted "disgrace".
Alongside the commitment to a new runway and a sixth terminal, Mr Hoon also announced increased investment in public transport, including the possibility of new high-speed rail links from the airport.
In an effort to appease critics he said airlines using the new runway would be required to use the newest, least-polluting aircraft.
He told MPs the government was satisfied environmental targets could be met, as it would put an initial cap on additional flights from the new runway of 125,000 a year, would ensure new slots were "green slots" used by only the "cleanest planes" and would set a new target on aircraft emissions - that they would be lower in 2050 than in 2005.
"Taken together this gives us the toughest climate change regime for aviation of any country in the world," he told MPs.
He also announced he would set up a company to look into creating a high-speed rail line between London and Scotland - adding there was a "strong case" for a new high speed rail hub at Heathrow.
A feasibility study carried out in 2007 concluded that this could cost up to £30bn.

Heathrow 'hub'

Mr Hoon also announced plans to spend up to £6bn increasing motorway capacity across the country, through widening and allowing drivers to use the hard shoulder at busy times.
But he ruled out ending "mixed mode" use of runways - where planes land on one runway until 3pm then the other for the rest of the day to give residents a break from noise.
However, he said the Cranford agreement, which limits planes taking off to the east of the airport, would end, which he said would benefit Windsor to the west of the airport and Hatton and North Feltham to the east.
He told MPs Heathrow was "our most important international gateway".
"It connects us with the growth markets of the future - essential for every great trading nation," he told MPs.
"But for too long it has operated at full capacity, losing ground to international hub airports in other countries and with relatively minor problems causing severe delays to passengers."
He said the construction of the new runway alone would create up to 60,000 jobs and would ensure "Britain remains a place where the world can come to do business".
The debate was halted when John McDonnell, whose constituency includes Heathrow, shouted "disgrace" as the transport secretary said MPs would not get a vote on the decision.

Labour unease

After marching from the backbenches to the despatch box he picked up the ceremonial mace and placed it on an MPs' bench - he refused requests to end his protest, was ordered out of the Commons and suspended for a week.
The government has long argued, in principle, that it is in favour of the scheme, subject to pollution limits and access concerns.
But there has been deep unease within Labour ranks, with several cabinet members reported to be unconvinced and more than 50 Labour MPs openly opposed.
At a press conference in Berlin ahead of the Commons statement, Prime Minister Gordon Brown said he wanted to "protect the economic future of the country while, at the same time, meeting the very tough environmental conditions we have set ourselves".
Shadow transport secretary Theresa Villiers told BBC Radio 4's Today any government environmental promises would be shown "to not be worth the paper they are written on" and said her party would cancel the project if they win the next general election.
In the Commons she said: "This is a bleak day for our environment and for all those of us who care about safeguarding it."
The Liberal Democrats also oppose the third runway and have urged ministers to invest in high-speed rail links instead.
Their spokeswoman, Susan Kramer, told the BBC the arguments in favour of expansion were "glib" and south west London would become a "pretty miserable" place to live.
"There's this conventional wisdom amongst business that you must grow the airport ... it just isn't held up by the reality. Actually Heathrow has been serving fewer destinations over the last ten years."
The statement to MPs marks the start of the planning process which would be a lengthy one, even without the opposition and legal challenges expected.
Work on a new runway is unlikely to start until 2015 and it is not expected to be operational for at least a decade.
About 700 homes will have to be demolished to make way for the runway, which will increase the number of flights using Heathrow from about 480,000 a year now to 702,000 by 2030.

'At risk'

Environmental campaigners say the decision leaves the government's legal commitment to cut carbon emissions by 80% by 2050 in tatters.
Energy Secretary Ed Miliband told the BBC the plans represented "constrained expansion" with strict rules on air quality and noise.
But Greenpeace director John Sauven said: "If Gordon Brown thinks this is a green runway then he must be colour-blind.
"This package is designed to patch up a cabinet split and will do very little to reduce the huge environmental impact of an expanded Heathrow, which will now become the single biggest emitter of carbon-dioxide in the country."
Barbara Reid, spokeswoman for an all-party group of local authorities, said they were discussing mounting a legal challenge against the government.

"We are talking to our lawyers," she added.

Supporters of the runway say the UK economy will lose business to the rest of Europe if it does not go ahead, pointing out that rival airports such as Paris, Frankfurt and Amsterdam already have at least four runways.
Former Labour MP Lord Soley, campaign director of Future Heathrow, which represents groups in favour of expanding the airport, said Heathrow brought jobs and "prosperity" to west London and the Thames Valley that was "at risk".
The boss of British Airways, Willie Walsh, said he was "very pleased" by the decision and welcomed the fact the scheme would be subject to "very strict environmental conditions".
Richard Lambert, director-general of the Confederation of British Industry, said: "This approach to expanding Heathrow's capacity makes real sense. It will create the integrated transport system necessary for an economy that needs to grow in an environmentally sustainable fashion."

source from http://news.bbc.co.uk/1/hi/uk_politics/7829676.stm

26 May 2009
nine new destinations go on sale
Press Release

bmi, London Heathrow’s second largest airline, has added nine new destinations to its growing codeshare route network from London Heathrow after expanding its codeshare agreement with Virgin Atlantic.

Under the agreement, which commences today, bmi can sell direct flights between London Heathrow and the USA gateways of Chicago, Los Angeles, Washington, San Francisco, Boston and Miami, as well as the cities of Dubai, Nairobi and Delhi, with a bmi marketing codeshare flight number (BD) on flights operated by Virgin Atlantic.

Katherine Gershon, sales & marketing director, said: “We are delighted to be extending our network through this codeshare deal with Virgin Atlantic, offering our customers an even greater choice of international destinations. The new codeshare agreement will offer seamless connections between the USA and our growing Middle East and Russia and CIS network as well as giving bmi customers in the North of England, Scotland and Northern Ireland the ability to book bmi all the way to the USA.”

Bmibaby launches Mediterranean flights for summer 2010

Bmibaby, the low-cost subsidiary of bmi, has announced that it is launching an early sale on flights to some of its most popular Mediterranean destinations for summer next year.

The carrier confirmed that the first phase of its summer 2010 flying programme was being made available from East Midlands, Manchester, Birmingham and Cardiff airports for travel between 19 April and 23 October 2010.

Travellers can make early bookings for flights to Alicante, Malaga, Faro and Palma, as well as some other popular destinations in Spain and Portugal.

Bmibaby is the first low-cost airline to put its 2010 flying programme on sale.

In another early move, the airline announced last month that it was putting some of its destinations for Easter 2010 on sale, including Amsterdam, Barcelona, Paris, Prague and Edinburgh.

It was also announced at the time that bmibaby will be launching a new route from Manchester to Faro, the gateway to the Algarve.



http://news.opodo.co.uk/articles/2009-06-12/19217284-Bmibaby-launches.php

Willie's way off the radar in his flights of fancy about salary breaks
17 June 2009
The Daily Telegraph

ANOTHER day, another wheeze from Willie Walsh, the British Airways chief executive. Fresh from his latest bit of gesture politics - giving up one month of his own pounds 735,000-a-year salary - the man in the BA cockpit is now badgering all his 40,600 staff to follow suit. What next from "Slasher'' Walsh? Staff paying him for the pleasure of coming to work? With what must be presumed a straight face, Walsh this week unveiled in the staff newspaper "a new package of choices, designed to allow everyone to do something'' in what he dubs the airline's "fight for survival''. One option is four weeks of "unpaid work'', taken in one-week blocks "spread over three to six months'', presumably to minimise the pain.

What a generous offer. Walsh seems to have forgotten that it's one thing for a boss to give up his own salary, but quite another to expect all staff to do the same.

Even after travel and other allowances, the average pay of a BA employee is pounds 39,500 a year, according to Civil Aviation Authority statistics. That's less than two-thirds of the pounds 61,500 Walsh earns in a month - a sum he can clearly afford to give up.

Times are admittedly tough, as BA's pounds 401m pre-tax losses proved last year, but Walsh appears to have overlooked that most people need a monthly salary to cover housing and other costs.

Nor, at last look, was BA a registered charity. Moreover, with BA in cost-cutting talks with the unions, Walsh must be careful not to create a culture where people fear that if they don't forgo part of their salary, they will be first in line for the chop.

A bigger issue is that this sort of salary sacrifice does nothing to deal with the main problem. Two decades after it was privatised, BA has still not tackled its chronic over-manning and the archaic working practices that go with it. Rather than exhort his staff into footling gestures, Walsh needs to use the downturn to produce a leaner, fitter airline - including closing to existing members a final-salary pension scheme that BA can no longer afford.

All this may be painful. But it would deliver a legacy far longer-lasting than gimmicks to encourage staff to work gratis for BA. Or Bugger All - as the unions now call it.

Virgin Atlantic in talks for 50 Airbus planes

LONDON, June 22 (Reuters) - Virgin Atlantic [VA.UL] is in talks with European planemaker Airbus (EAD.PA) to buy 50 A350 aircraft from 2014, a company spokesman said on Monday.

The spokesman told Reuters it considered the A350 a "strong competitor" to the Boeing 787 (BA.N). He added it was not yet clear how many of the aircraft would be replacements for older planes.

Virgin earlier said it would take delivery of 10 Airbus A330s in a $ 2.1 billion deal. [ID:nLM711546] (Reporting by John Bowker; Editing by Gary Hill)

Lufthansa wins BMI sale battle with £115m to spare
23 June 2009
The Independent

SIR MICHAEL Bishop is selling his BMI airline to Lufthansa for £115m less than expected after withdrawing a lawsuit against the German carrier.

The disputed sale, first agreed in 1999, has been junked in return for a one-off payment by Lufthansa of £175m. Under an entirely new contract, Sir Michael's 50 per cent-plus one share of BMI is being bought by a Lufthansa-controlled UK holding company - LHBD - for £48m.

The combined proceeds of £223m compare with Lufthansa's original option to buy, which matured this year, with an expected price of $400m (£338m). But a row erupted over the state of BMI's finances, and last month Sir Michael, right, who has chaired the former British Midland Airways since 1978, launched court proceedings to force Lufthansa to close. With the sale now settled, Lufthansa will begin the task of renegotiating BMI's bilateral agreements. Until all the countries to which BMI flies have agreed to the routes being taken over by an airline of a different nationality, BMI will remain the property of LHBD. To satisfy strict rules on ownership nationality, Lufthansa has only a 35 per cent stake in LHBD, and the remaining 65 per cent is held by British nationals. Once new bilateral agreements are in place, Lufthansa will take over 100 per cent of the group.

Lufthansa's aggressive consolidation plans also include Swiss Air, Brussels Airlines and Austrian Airlines. But the German giant has its own problems, warning on Friday that it is heading for a loss in 2009. Yesterday, Moody's dropped its rating on Lufthansa from stable to negative.

AIRLINES COULD GO BUST, SAYS BRANSON
23 June 2009
Daily Mail

VIRGIN Atlantic supremo Sir Richard Branson gave the gloomiest warning yet about the state of the airline business, predicting that a major airline could soon go bust.

His stark prediction comes just a day after he riled British Airways by saying the ailing flagcarrier should not be rescued by the government.

BA insisted it has not asked for a bailout, and does not need one. A spokesman said: 'The whole scenario is complete fantasy.'

Sir Richard said BA had brought the matter on itself when chief executive Willie Walsh said that BA was in a 'fight for survival', and asked staff to work without pay for a month.

The Virgin boss said: ' Lossmaking and inefficient airlines should be allowed to go the wall, no matter how big or prestigious they were. The government should not intervene to stop companies going bust. Big inefficient companies which have let their overheads grow should not necessarily survive for ever.

'If they do disappear it will allow new and more efficient companies to take their place Ö As old trees come down, new saplings start growing.'

Transport secretary Lord Adonis insisted there had been no contact with BA about a rescue.

And he was adamant that the government, which has its own problems managing the country's parlous finances, would not rescue ailing airlines.

He said: 'We are not in the business of giving bailouts. Nor would the public expect us to. We don't see any public interest to be served by giving public subsidy.'

The speculation took place as rumours emerged that BA (down 11.8p, or 8.6pc, at 124.6p) has clashed with its pension trustees over a higher-risk investment strategy that it believes has hammered its final salary schemes.

BA's pension deficit is likely to have ballooned from £1.7bn to about £3bn, and the group has hinted it may have to close its final salary retirement schemes.

There has been concern about BA's financial stability since it reported a record annual loss of £401m last month. Walsh has added to the uncertainty by asking staff to work for free.

In the latest edition of in-house newspaper BA News, Walsh said its cash position would be an important factor in helping it through the downturn.

He said: 'Cash is king. Cash gives us time and time gives us options. If we run out of cash, we run out of time and we run out of options.'

BA had a cash balance of just under £1.4bn at the end of March, when it was burning through this at a rate of about £2.7m a day.

It is thought the rate of cash usage has slowed since then.

BAA UK Airports Carried 12.7M Passengers In June
10 July 2009

LONDON (Dow Jones)--BAA PLC, which is owned by Spain's Grupo Ferrovial S.A. (FER.MC), an airliner, announced Friday U.K. airports handled a total of 12.7 million passengers in June, a reduction of 5.9% on the same month last year.

MAIN FACTS:

-Declines continue to reflect difficult economic circumstances, but underlying airport traffic trends improving

-Best underlying group figures since September 2008

-Edinburgh Airport traffic grows for third consecutive month

-Heathrow's network strength remains evident

-Traffic volumes remain in decline, but the latest figures represent the best underlying Group result since September 2008

-Although all key markets were lower in June than a year earlier, all except the European Charter market improved on their performance for the last six months

-Domestic traffic was 8.1% down in June and European Scheduled by 2.8%

-North Atlantic traffic was 9.4% lower, but Other Long Haul was almost level with last year at -0.2%

-Heathrow recorded a decline of 3.1%, stronger than the other airports because of its hub status and the resultant growth in transfer passengers.

-Gatwick was 7.6% down on last year

-Stansted was 11.5% down

-Southampton was 7.9% down

-For the third consecutive month, Edinburgh Airport (+1.4%) recorded growth

-Glasgow and Aberdeen recorded decreases of 10.9% and 9.8% respectively

-In total the number of air transport movements at BAA's U.K. airports was 6.3% lower in June

-The decline in cargo activity continued but for the second month in succession there was a marked shrinkage in the rate of decrease

-This had been 21.8% in April but was 13.7% in June

London City Airport Gets Approval To Increase Annual Flights
9 July 2009

LONDON (Dow Jones)--London City Airport has received the go-ahead to increase the number of flights in and out of the airport to 120,000 from 80,000 a year, a spokeswoman for the airport said Thursday.

London City Airport welcomed the decision, which was made Wednesday by the Development Control Committee of the London Borough of Newham.

"The core proposition of getting people through the airport quickly has not changed in 21 years," the airport said. "This decision recognizes the airport's importance in the community, its significant contribution to the local economy and the regeneration and investment that the airport has attracted to East London."

Air France-KLM (AF.FR) is the biggest carrier operating out of the airport, followed by British Airways PLC (BAY.LN).

There's no better time to be a passenger
22 July 2009
The Independent

OWNERS OF second homes around Bergerac, long-distance lovers with one partner in Bologna, and Polish physicians with families in Bydgoszcz: all will be alarmed by the apparent 40 per cent cut in the lifeline they have come to depend upon - cheap flights from Stansted. Yesterday Ryanair's chief executive, Michael O'Leary, blamed the "Scottish misers", as he described the Chancellor and Prime Minister, for his decision to re-deploy 16 of the 40 aircraft the airline has based at Stansted this summer. Labour's "tourist tax" - in reality, the Air Passenger Duty introduced by the last Tory chancellor, Ken Clarke - was accused of being jointly responsible for the cut of 40 per cent in flights, along with Spanish-owned BAA, for its refusal to negotiate on charges for using Britain's third-busiest airport.

Over the 14 years since easyJet first took off, British travellers have grown accustomed to the widest range of no-frills flights and some of the lowest air fares in the world. Could the end of the summer mark the end of low-cost flying? After all, Ryanair is technically the world's favourite airline - in terms of international passengers flown, if not on-board cosseting. But as with most announcements from the Irish airline, the plan to cut capacity at its main airport from the winter should be treated that with a pinch of inflight salt, for which no doubt a fee will be payable.

Between late October and Easter, airlines traditionally cut capacity from the UK: on a wet Wednesday in November only the idle rich are willing and able to fly to somewhere in eastern Europe they can neither spell nor pronounce. Ryanair will actually offer around 15 per cent fewer seats from Stansted than last winter - enough to push fares up, and distressing for people using certain airports, but not the end of cheap aviation. London remains the world's aviation capital, and as one airline dips another will grow: Aer Lingus, is expanding Gatwick services. The worst of times for airlines is the best of times for travellers.

Rise in Heathrow passengers signals soft landing for BAA
11 August 2009
Guardian Unlimited

UK's main airport enjoyed its third busiest month on record as performance at BAA's other sites showed strong signs of recovery

Heathrow reported its third-busiest month ever today, as passenger numbers for July indicated that the UK's main airport is recovering from the recession.

The airport's owner BAA said 6.5 million passengers passed through Heathrow last month, nearly 1% more than in July last year. They were carried on fewer flights than last year, though – a result of airline cost cuts – giving Heathrow its highest-ever average number of passengers per plane, at 162. Long-haul traffic, excluding North American flights, was up by 5.5%.

Industry experts warned that the figures did not mean a turnaround was imminent at British Airways, Heathrow's biggest customer. Ticket prices are under pressure as airlines compete for customers. The strong performance at Heathrow reflected significant fare discounts as well as an undiminished appetite for holidays abroad.

"The airports are likely to benefit more than the airlines in the short term. Airlines are trying to fill their planes at almost any price," said John Strickland, an industry consultant. Willie Walsh, BA chief executive, warned recently that the average revenue per passenger is likely to fall over the summer as the airline strives to shore up passenger numbers rather than maintain higher fares.

BA has also been promoting transfer traffic at Heathrow – passengers who use the airport to connect with other flights – by advertising discounted fares outside the UK, including a recent sale in the US.

"BA has been putting good prices into markets away from the UK. It has been working very hard to generate much more transfer traffic in the wake of a weaker point-to-point market. BAA should benefit from that with more long-haul traffic," said Strickland.

Passenger numbers across BAA's seven UK airports – the others are Gatwick, Stansted, Southampton, Edinburgh, Glasgow and Aberdeen – also showed strong signs of recovery in July, although they were still lower than last year. BAA handled 14.5 million travellers in total, a decline of 2.4% on July 2008. However, that was smaller than the falls of 5.9% in June and 7.3% in May. BAA said the data was "further evidence of stabilising passenger figures across the group".

Glasgow was BAA's worst performer, reporting a 13% dip in passengers, due in part to the collapse of holiday airline XL last year. In contrast, traffic through Edinburgh grew by 5.6%, in the airport's fourth consecutive month of growth. Stansted was the worst performing London airport, with a 5.7% fall in passenger numbers.

The best-performing market across all the airports was long-haul destinations excluding the US and Canada, which saw a 4.8% increase in travellers. However, the highly profitable North American route remained very weak: passenger numbers were down 8% overall, although Heathrow fared better than the average, reporting a 2.1% decline in North American traffic. BAA's biggest market by passenger numbers, European scheduled flights, rose by 1.2% to 6.4 million travellers.

One week after the transport secretary, Lord Adonis, called for the demise of domestic air travel, BAA confirmed an ongoing decline in such flights. UK-only air travel at its airports fell 4.8%, with 109,000 fewer travellers.

Gordon Brown Chooses Virgin Atlantic over BA

August 19th, 2009
the Telegraph

British Airways has suffered another setback this week after Prime Minister Gordon Brown chose to fly Virgin Atlantic to the G20 summit in the US next month.

Under the contract, Sir Richard Branson’s Virgin Atlantic will ferry the Prime Minister and his entourage to the G20 summit next month hosted by US President Obama, and will attract huge media attention.

Virgin Atlantic managed to undercut British Airway’s price by about 30 percent. The airline, the national carrier, has been flying Prime Ministers since the 1980s from Margaret Thatcher who privatized the airline. This will be the first time Mr Brown has flown Virgin since becoming Prime Minister.

A spokesman for the Prime Minister said: “Decisions relating to the Prime Minister’s travel, including the choice of aeroplane for international visits, are taken to deliver maximum value for money for the taxpayer as well as ensuring the most efficient and effective use of the Prime Minister’s time.”

Virgin Atlantic said: “We are clearly delighted that the Prime Minister has chosen to fly with us. We hope it will be the first of many similar trips.

The move comes as a blow for BA only weeks after the company asked 40,000 staff to work without pay to make up for losses, and chief executive Willie Walsh announced that he would not accept his salary in July.

The privatization of the airline allowed BA to come one of the most profitable airlines, claiming to be “The World’s Favourite Airline”, while many others struggled. However the airline has been struggling lately due to the recession and downturn in the travel industry, with plans to cut 3,700 of the airline’s 40,000 staff, as passenger numbers fall.

Wonder if they will switch back once the economy recovers and the British debt goes down ...

Gordon Brown Chooses Virgin Atlantic over BA

August 19th, 2009
the Telegraph

British Airways has suffered another setback this week after Prime Minister Gordon Brown chose to fly Virgin Atlantic to the G20 summit in the US next month.

Under the contract, Sir Richard Branson’s Virgin Atlantic will ferry the Prime Minister and his entourage to the G20 summit next month hosted by US President Obama, and will attract huge media attention.

Virgin Atlantic managed to undercut British Airway’s price by about 30 percent. The airline, the national carrier, has been flying Prime Ministers since the 1980s from Margaret Thatcher who privatized the airline. This will be the first time Mr Brown has flown Virgin since becoming Prime Minister.

A spokesman for the Prime Minister said: “Decisions relating to the Prime Minister’s travel, including the choice of aeroplane for international visits, are taken to deliver maximum value for money for the taxpayer as well as ensuring the most efficient and effective use of the Prime Minister’s time.”

Virgin Atlantic said: “We are clearly delighted that the Prime Minister has chosen to fly with us. We hope it will be the first of many similar trips.

The move comes as a blow for BA only weeks after the company asked 40,000 staff to work without pay to make up for losses, and chief executive Willie Walsh announced that he would not accept his salary in July.

The privatization of the airline allowed BA to come one of the most profitable airlines, claiming to be “The World’s Favourite Airline”, while many others struggled. However the airline has been struggling lately due to the recession and downturn in the travel industry, with plans to cut 3,700 of the airline’s 40,000 staff, as passenger numbers fall.

I want to see the Prime Minister fly on BMI British Midland or EasyJet. :)