UK flights soar 4.9 pct to record high in 2004

LONDON, Jan 7 (Reuters) - Flights in Britain rose 4.9 percent to record levels in 2004 as low-cost airlines expanded and more people flew on cheap fares, UK air traffic control said Friday.

The National Air Traffic Services (NATS) said it handled 2.18 million flights in UK airspace during the year as transatlantic and domestic flights increased, as well as flights to and from Europe.

Budget travel has buoyed short-haul traffic from Europe, while routes across the Atlantic Ocean have recovered from a downturn following 2001 attacks on U.S. cities.

NATS said average delays per flight attributable to air traffic control fell to 25 seconds in the period from 44 seconds in 2003 and 97.5 percent of flights had no delays.

"Despite record numbers of flights, NATS delivered its best performance in 2004 on record," NATS Chief Executive Paul Barron said in a statement.

NATS hopes to cut flight delays and safety incidents by 2007 to help restore confidence in the organisation which was hit by a financial crisis after a slump in transatlantic air travel after 2001.

The partly privatised body is implementing a 1 billion pound ($1.88 billion) investment plan to modernise Britain's air-traffic control system before European Union plans to form a single network of air-traffic control zones.

NATS earns the bulk of its revenues from transatlantic flights.

Transatlantic arrivals and departures rose 7.4 percent in 2004, domestic rose 4.4 percent and other arrival and departures rose 7.5 percent.

The strongest growth areas were in Scottish air space, where flights increased 7.9 percent, and Manchester with growth of 6.9 percent.

NATS is 49 percent owned by the British government, 42 percent by a consortium of UK airlines, 4 percent by airports operator BAA Plc and 5 percent by NATS staff.


National Air Traffic: 2.18M Flights Used UK Airspace
7 January 2005

LONDON (Dow Jones)--National Air Traffic Services (NATS), the UK air traffic management provider, said Friday that in December 2004, it handled 165,045 flights, an increase of 5.3% over the same period in 2003.

Figures show that in 2004 NATS handled more flights than ever with fewer delays.

A total of 2,180,206 flights used U.K. airspace in 2004, a new annual record and an increase of 4.9% on 2003.

Despite rising traffic levels, service delivery showed significant improvement, with the average delay, per flight, attributable to NATS in 2004, falling to 25 seconds, compared to 44 seconds in 2003, a reduction of 43%.

The number of flights that experienced delays attributable to NATS fell markedly. In 2004, 97.5% of flights experienced no air traffic control delay, up from 95.2% in 2003.

The London Area Control Centre (LACC) at Swanwick, Hampshire, which handled over 1.7 million flights through 200,000 square miles of airspace above England and Wales, recorded its best performance ever in the latter part of 2004.

For a period of 24 consecutive days, between Nov. 27 and Dec. 20, there were no delays to flights attributable to Swanwick and of the 133,000 flights handled in December, only 36 received a delay attributable to the centre.

BA loses transatlantic trade but business class booms
Peter Klinger
7 January 2005
The Times

British Airways failed to cash in on tourists eager to exploit the weak US dollar as it admitted that transatlantic passenger numbers fell by almost 2 per cent last month.

BA's transatlantic route is one of its most profitable but the airline said that passenger numbers last month, one of the industry's busiest periods, fell from 590,000 to 580,000.

Analysts speculated that the passengers were lost to rivals, including Sir Richard Branson's Virgin Atlantic, but BA did not give any reason for the decline.

One analyst said: "It's difficult to argue that America as a holiday and business destination is less attractive now."

The transatlantic decline was offset by an increase in premium travel during the month, as well as growth on BA's UK and Europe, Asia-Pacific and African routes.

BA's shares rose almost 5 per cent, or 11p, to 242p as investors applauded the improved figure for premium travel.

The company said that market conditions remained "broadly unchanged".

Overall, 2.7 million passengers flew with BA last month, up 1.8 per cent on the previous corresponding period. In the first nine months of BA's financial year, which ends on March 31, the passenger tally was 27.4 million, up 1.6 per cent on the same time last year.

The airline said that passenger capacity had been 3.9 per cent higher last month than in December 2003, but traffic, measured in revenue passenger kilometres (RPK), was up only 3.2 per cent.

The shortfall led to a 0.6 per cent drop in the passenger load factor to 72.7 per cent.

BA said that the increase in RPK was led by a 6.8 per cent surge in premium traffic, with non-premium take-up 2.7 per cent higher. It did achieve solid growth in passenger load factors -the percentage of seats sold -on its UK and Europe (up 1.2 per cent to 62.4 per cent) and Africa and Middle East (up 1.9 per cent to 76.7 per cent) routes. But load factors on its Asia-Pacific routes, alongside the transatlantic network -its most profitable segment -were down 1.3 per cent to 74.3 per cent. The US route experienced a 2 per cent drop in load factor to 75.2 per cent.

BA has flagged a Pounds 6 million non-cash accounting loss in the December quarter because of the weaker Japanese yen.

The improvement in premium travel is a rare piece of good news for BA, which has been dogged by high fuel prices and lower fares.

Ryanair News Release
06.01.05
Parcels Before People at British Airways and Lufthansa
Fuel Price Drops but BA & Lufthansa Keep Their Rip Off Fuel Surcharge

Ryanair, Europe’s No. 1 low fares airline today called on British Airways and Lufthansa to end their pumped up passenger fuel surcharges.

Speaking today, Peter Sherrard, Ryanair’s Head of Communications said:

“Ordinary consumers are being held to ransom by BA and Lufthansa’s fuel surcharges even though the price of oil has now fallen. This week both airlines will reduce their ridiculous surcharge on cargo traffic but they continue to rip-off their passengers. It is a case of parcels before people at BA and Lufthansa.

Ryanair GUARANTEES no fuel surcharges and says NO to the fuel surcharges of British Airways, Lufthansa, Air France and others like them.

Passengers recognise the crude scams of BA and Lufthansa and it is no wonder they are voting with their feet by choosing Ryanair for the lowest fares, unbeatable punctuality and customer service”.

British Airways suspends flights to Saudi Arabia due to poor demand
Tue Jan 11, 2005

LONDON (AFP) - British Airways is to suspend all its flights between Britain and Saudi Arabia from March because of reduced passenger demand.

BA will suspend its flights between London Heathrow airport and Jeddah and Riyadh in Saudi Arabia from March 27, it said Tuesday.

"The decision to suspend flights between the UK and Saudi Arabia is a difficult one to make as we have enjoyed a long history of flying between the two countries," said BA's director of commercial planning, Robert Boyle.

"However, the routes dont currently make a profitable contribution to our business and we are unable to sustain them while this remains the case," he added.

British Airways currently operates four flights per week from London Heathrow to Jeddah and three weekly journeys from the same airport to Riyadh.

"As part of our commitment to Saudi Arabia we will, of course, keep this important market under constant review," BA said.

The airline cancelled a number of flights to Saudi Arabia during the summer of 2003 because of fears about possible terrorism attacks in the Gulf state.

Ryanair to introduce service between London and Santiago De Compostela
12 January 2005
Airline Industry Information

Irish low-cost airline Ryanair announced on Tuesday (11 January) that it would launch a new daily flight between London and Santiago De Compostela in northwestern Spain.

The new service is to start on 11 April. No other details have been disclosed.

The airline expects to carry about 100,000 passengers on the new route in its first year of operation, reported The Associated Press.

Record numbers used British airports last year, industry figures show
12 January 2005

LONDON (AP) - A record 140.1 million air passengers traveled through Britain's major airports last year, 6.9 percent higher than 2003, according to industry figures published Wednesday.

The British Airports Authority, which runs the country's seven biggest airports, said the greatest increase was at Southampton Airport in southwest England, where numbers rose by 25.7 percent to 1.53 million.

The number of travelers using Stansted Airport north of London rose by 11.7 percent to 20.9 million while Gatwick Airport to the south of the capital recorded at 5 percent increase to 31.4 million and Heathrow showed an increase of 6.2 percent ot 67.1 million.

In Scotland, Edinburgh recorded a 7 percent increase to almost 8 million, while Glasgow rose 5.5 percent to 8.56 million and Aberdeen was up 5 percent at 2.64 million.

Last year's figures were swelled by a good December, when passenger numbers rose to 10.5 million, up 4.6 percent on the previous December, the BAA said.

The Dec. 26 tsunami in the Indian Ocean came too late to have a major impact on air travel, the company said.

BAA to lift cash out of 'non-core' assets
14 January 2005
The Daily Telegraph

By Alistair Osborne BAA revealed last night that it was in advanced talks to form a property joint venture which could raise hundreds of millions of pounds for the airports operator. The owner of seven UK airports, including Heathrow, Gatwick and Stansted, said: "Discussions are under way and due diligence has commenced with a view to forming a 50:50 joint venture with an external investor to hold certain of BAA's non-core aeronautical properties." The company would not disclose the identity of the investor, believed to be a financial institution or property fund. BAA owns various properties, deemed non-core, including airport hotels, car parks, offices and buildings leased to airlines, such as the Compass centre at Heathrow, occupied by British Airways. "The actual properties to be included in the joint venture are still being considered," BAA said. They would not include its retail operations.

If the transaction goes ahead, BAA, which has pounds 3.2 billion net debts, could inject properties into the joint venture and take out cash. This would help it finance an pounds 8billion capital expenditure programme over the next 10 years. The programme includes the pounds 4.2 billion Terminal 5 at Heathrow but not new runways, such as the mooted pounds 4billion second runway at Stansted. At the latest annual accounts, BAA had pounds 9.3 billion of fixed assets.

Virgin Atlantic launches self-service check in

LONDON, Jan 17 (Reuters) - Richard Branson's Virgin Atlantic Airways launched self-service and online check-ins on Monday and said it expects half of its passengers, or two million people, to use the new facilities within two years.

One of the first among long-haul carriers to introduce the new facilities, Virgin said it was setting up self-service kiosks at London's Heathrow Airport as well as online check-ins aimed at speeding up the process.

Virgin is spending 1.5 million pounds ($2.8 million) on the new system but does not expect substantial cost-savings from the move.

Virgin Chairman Richard Branson also reiterated the airline hoped to employ 3,000 new staff over the next 12-18 months.

"We have vast expansion plans, so we are looking for people," Branson told reporters at Heathrow Airport.

He also said there were no current plans to remove fuel surcharges introduced last year.

Virgin, which aims to double the size of its fleet in 5 years.

Virgin Atlantic to Lanch Daily Delhi-London Services From Feb 1

NEW DELHI, Jan 19 Asia Pulse - British carrier Virgin Atlantic announced Tuesday it would launch daily services between Delhi and London from February 1 and proposed to introduce new flights from Mumbai from March 27.

The airline is also negotiating with British aviation authorities to launch four weekly services from Bangalore this year, its General Manager (India) Andrew Fyfe said.

While India and UK decided last year to enhance the number of flights and airlines operating between the two countries, the British authorities have to grant permission to its carriers to operate to Indian destinations.

Following the Indo-UK bilateral negotiations on air traffic rights last year, Virgin was granted ten additional flights out of 21 new ones. While British Airways got additional rights to fly to Chennai and Bangalore, British Midland won maiden rights to operate to Mumbai.

Asked about heightened competition on the India-UK sector once Indian carriers like Jet Airways and Air Sahara were allowed to operate to destinations like London, Fyfe said he expected the fares to "go marginally lower" with the new entrants coming in.

"We will also make necessary adjustments in our pricing. However, we feel the fare structure may be lower during the non-peak season and higher in the peak months," he said.

The Virgin official said there would be about 80 services between UK and India by the summer of next year.

He also announced recruitment of about 60 more Indian cabin crew in Delhi and Mumbai, taking the total to about 100. (PTI)

Peace struggle: The expansion of Britain's airports will bring a huge increase in air traffic - and further misery to the people who live in their shadow.

So what is life like on Britain's noisiest streets, with seven jets roaring overhead every 10 minutes? Lucy Mangan packs her earplugs and heads for west London

25 January 2005
The Guardian

There are a number of reasons why you might object in principle to the prospect of further airport expansion in Britain. You might point out that this overcrowded isle barely has enough room for Mrs Trellis's new conservatory, let alone for the board, lodging and servicing of the projected 16 million extra passengers a year that the new terminal at Heathrow will have coming through its controversial portals alone.

You could object to subsidising it. Airlines pay no fuel tax, a concession that costs the Treasury pounds 6bn a year, nor VAT on ticket sales, which undermines the government's claims about the industry's vital importance to the health of the country's economy (as does the fact that we fly out more tourists than we fly in, at a net cost to the hospitality industry).

Or you could go down the environmental route. Even if expansion did unquestionably benefit the national economy, it would be doing so at huge cost to the global ecology. There will be an estimated half a billion air travellers in the UK by 2030, producing an extra 60 million tonnes of carbon emissions.

Then you could factor in the fumes produced by the generally congested roads funnelling passengers to and from the airports and ask how we are going to satisfy imminent EU legislation on air and noise pollution if the government continues with the "predict and provide" strategy it currently clings to (despite its dismal record as a policy in relation to the roads) rather than finding ways of managing demand.

But if you live anywhere near a flight-path, there is one factor that counts above all others. The noise. The ceaseless, oppressive, inescapable, all-but-unbearable noise of planes flying overhead. At first I thought the people I spoke to were, if not exactly exaggerating, perhaps oversensitive to the problem after living with it for so long. That was before I went to spend 24 hours in Cranford, which is just beside Heathrow, with one of its oldest inhabitants, 75-year-old Lorna Newman. She remembers when it was all fields round here. "And the occasional smallholding and an orchard," she adds, as we drive down the dual carriageway past the Ramada Jarvis hotel.

As I step off the bus from Hounslow West tube station at 7.30pm, I am too busy consult ing my map to remember where I am. So for quite a few seconds I am stupidly bewildered by the enormous roaring sound that comes up behind me, and keeps coming. And keeps coming. I look up and see an enormous plane thunder overhead. It is an undeniably magnificent sight, but a truly horrendous noise. It seems to fill my brain from the bottom up, so that by the time it is directly above me I am no longer even capable of making the strangulated "What the f-!?" cries I had been managing as the thing approached. I can only stand with my shoulders hunched up to my ears, heart racing, waiting for it to pass, willing the noise to be over.

In the quarter of an hour it takes me to find Lorna's house, a number of (fractionally quieter) planes also sweep across the sky and my nerves are jangling by the time I stumble across her threshold into the relatively peaceful sanctuary offered by her triple-glazed home and heavy curtains. At 8 o'clock, we set off for the pub. By this point I am tensing up every time I hear a car coming, because it sounds very much like the very beginnings of an aircraft approach and I instinctively begin to hunker down each time. The pub has music playing loud enough to drown out the planes that are landing only yards away. At 9pm we head for Waye Avenue, which gets the full impact of fligh-path noise. Three planes go over in as many minutes, seven in the 10 minutes I can stand it before I have to retreat to the car again. I experiment with putting my gloved fingers in my ears. The curious and irritating effect is to cut out the ambient noise (including the constant rumble of earthbound planes taxiing on the runways and refuelling) and highlight the periodic overhead cacophony. At a distance of 17 miles from Heathrow, planes can hit more than 70 decibels. The government deems a noise of 57 decibels as constituting "significant community annoyance". My interviewees, I am beginning to realise, have in fact been models of understatement.

Librarian Cheryl Hounslow lives - where else? - in Hounslow under a Heathrow flight path with her husband and two children. "The worst thing for the kids is that when we're walking to school, we can't chat," she says. "It's just not worth the effort of trying to make ourselves heard. The school is under the flight path too. It was really bad before they had insulation but I'm sure they also don't spend as much time out of doors as they should, as they would if it was quieter." She - and indeed everyone I speak to - talks about how awful it is to have to keep the many-glazed windows shut night and day throughout the summer, and of the impossibility of enjoying the garden. "There are planes coming over every minute. If I'm about to go outside and I hear one coming, I just don't because it's just so horrible."

Artist Julia Lambert lives just behind Putney Common under one flight path and close to another. "People are staggered by how noisy it is even this far away," she says. "If you try and have lunch outside, it's impossible to keep up a conversation."

And the noise continues after dark. The night flights at Heathrow have been an enormous bone of contention between Hounslow residents and the government for years. The Heathrow Association for the Control of Aircraft Noise (Hacan) won a historic victory in 2001 when the European Court ruled that they breached the right to an uninterrupted night's sleep and banned them, but the decision was overturned on appeal. Now the flights are supposed to stop between 11.30pm and 4am but whenever I mention this it is greeted with hollow laughter. Certainly at midnight, tucked up in Lorna's spare room, I can still hear them going overhead. (As an aside, although I do not have any air pollution monitoring equipment with me, I can report that Cranford fails the black bogey test spectacularly. After 12 hours there, my hanky looks like an engine rag.)

When I go on an exploratory walk at eight the next morning, by which time the planes are using the southern runway, I begin to appreciate the value of the alternation system the airport agreed to put in place some 30 years ago to give the residents some degree of relief. Currently, aircraft land on one runway between 4am and 3pm and take off from the other the rest of the time and then vice versa for a week at a time. Philippa Edmunds, a communications consultant living about a mile from a flight path in East Twickenham, refers to this procedure as "a lifesaver". "It makes such a big difference to be able to fall asleep with an open window and know that you will just have to get up and close the window when the planes start again in the morning," she says. "If you get the noise all day, it drives you potty, but if you know you're getting half a day's peace, you can plan your life - or at least a barbecue - round that. I can't tell you how valuable it is."

It's also under threat. BA, Virgin and BMI gave their backing in 2003 to a proposal to do away with alternation and bring in a "mixed mode" sage of the runways, which would employ both between 4am and 11.30pm in order to increase the number of flights from 80 to 90 an hour. "If it happens it will make life absolutely appalling," says Julia Lambert. "Alternation is a lifeline," says Cheryl Hounslow. "The threat of taking it away is just outrageous."

But if things are so bad why do they still live here? Lorna points out she has lived in the same house since she was four. Cheryl's husband has lived here all his life and his children are settled at the local school (which was also his when he was growing up). Julia Lambert in Putney "totally fell in love with the place" 15 years ago, and can't imagine being without the "wonderful" network of friends and neighbours that has evolved over the years. "I'm very, very lucky - we're in and out of each others houses, we eat together . . . it's such a valuable communal aspect for someone like me who has to spend a lot of time working on her own."

All of them point out that the increase in air traffic has been constant but gradual, that there has never been the kind of sudden, massive change that might have prompted overwhelming outrage and a mass exodus.

And of course each time there was an alteration to the status quo, it was usually accompanied by reassurances from the government that limits and conditions would be set to protect residents. When permission was given for Terminal 4 in 1979, for example, the inspector said that this should be "the last major expansion of the airport" and a strict limit was set on the number of flights, which was exceeded within a few years of the terminal opening in the late 80s as international air travel became cheaper and more popular than ever before. After the longest public inquiry in Britain's history, Terminal 5 was given the go-ahead in 2001 with a limit of 480,000 flights a year; within nine months Whitehall was sliding consultation proposals for a third runway in the south-east which at Heathrow would increase flights to 655,000 a year.

That said, the signs are that Stansted is the current favourite for such expansion. Local forces are mobilising there to try and stop it and, in conjunction with Hacan and others, have made an unprecedented application to judicially review the 2003 White Paper that recommends the move.

Their primary motivation was to get access to a range of documentation that would only be released in the process of a legal challenge. "Succeeding in the application would be the cherry on top," says the Stop Stansted Expansion campaign director Carol Barbone. "But it's just one strand of various challenges that we're running on a range of fronts."

The numerous local pressure groups are optimistic about their chances not just of preventing the proposed third runway (wherever the foe decides it should be) but of succeeding on a larger scale too. Barbone says that BAA and the government seem taken aback by their inability to divide and conquer the campaigners, and Hacan's website says the group is "not in the business of exporting our misery to someone else". As part of the umbrella organisation AirportWatch, they are hoping to raise people's awareness of the social and environmental dangers inherent in the policy of constant expansion and challenge the government to resist the aviation industry's pressure to adhere to it.

Until then, those living under the flight paths will settle for smaller gains. "They shouldn't expand," says Julia Lambert wearily, "until they can let the people of south-west London sleep." That afternoon I thank Lorna for her hospitality and climb into the photographer's car to leave. She waves us off. "Hurry up," says David. "It all stinks here." I agree. But at least we can drive away.

'It's impossible to keep up a conversation outside' . . . an aircraft prepares to land at Heathrow airport

Staying put . . . Lorna Newman, 73, has lived in the same house since she was four

British Airways Plans To Start Shanghai Flights
25 January 2005
Dow Jones International News

LONDON (Dow Jones)--British Airways Tuesday said that it plans to start flights this summer from London Heathrow to Shanghai in China, subject to approval by the Chinese authorities.

Robert Boyle, the airline's director of commercial planning, said: "We have flown to both Hong Kong and Beijing for many years and are keen to start services to Shanghai. The city is the powerhouse of the Chinese economy and, as the economy continues to grow, we believe there will be a great demand for our flights.

"Shanghai Pudong airport is due to open a second runway and we are talking to the Chinese authorities about securing take-off and landing slots in Shanghai for our flights. We hope to fly five times a week with a Boeing 777 aircraft."

British Airways said that its Shanghai plans have been boosted by the news that the British and Chinese governments have agreed to changes in travel visa rules which will make it easier for Chinese citizens to visit the U.K.

The airline flies currently from London Heathrow to Beijing four times each week with a Boeing 777 aircraft. This will increase to six times per week from June 2005.

British Airways flies also 17 times a week from London Heathrow to Hong Kong with a Boeing 747 aircraft, which will increase to 21 flights a week from June 2005.

Premium long haul helps BA
DAVID SHAND
27 January 2005
The Daily Express

CITY AND BUSINESS EDITED BY STEPHEN KAHN - MARKET REPORT

HOPES of a further recovery in long-haul premium traffic and more cost savings helped lift British Airways yesterday.

Better-than-expected December passenger numbers have fuelled a recent market rally. Fears about increased competition from US carriers on its key transatlantic routes have also diminished.

BA gained 5 fp to 256 bp as broker Goldman Sachs reckoned it was best-placed among flag carriers to survive the expected turbulence from continuing high oil prices.

Goldman said paying down debt and reducing costs rather than going for growth would pay dividends for BA shareholders. But the broker claimed the company should have been braver in tackling "unproductive working practices".

Analysts expect BA to shed more light at its investor day in March on further cost-cutting opportunities once it moves into the new Terminal 5 at London Heathrow.

BA was, however, left trailing by easyJet's 11p rise to 213 dp as ABN Amro talked up prospects for the budget airline sector. Arch-rival Ryanair added 13 cents to .5.89.

Supermarket giant Sainsbury's provided one of the main talking points on persistent talk a 4 per cent chunk of its shares had changed hands.

Traders suggested US value investor Brandes had taken its stake to more than 14 per cent after picking up stock from the Sainsbury family. Sainsbury's firmed 4p to 281 dp on hopes this would increase the chances of a bid.

Broker upgrades following Tuesday's well-received thirdquarter figures helped Cable & Wireless rise 3p rise to 122p.

Antofagasta struck it 12p richer at 1187p after a 5.6 per cent increased in production at its Chilean copper mines last year.

Upbeat comments from Investec provided a cure for brewer SABMiller's hangover on the back of speculation it was set to make a major South American acquisition.

The broker reckoned a

9billion deal for Colombian group Bavaria could be structured to "materially enhance" earnings in the first year. SAB rebounded 10p to 805p.

Northern Rock's reverse amid concerns over the impact of new accounting rules cast a shadow over the wider banking sector. Alliance & Leicester and Barclays were 20p and 10p in the red at 882p and 574p respectively. The FTSE 100 Index lifted 3.9 points to 4847.1.

Investors continued to buy into the likely benefits for Travis Perkins, 59p stronger at 1930p, from its acquisition of DIY chain Wickes. The deal could also make Travis a more tempting target for a predator.

Trinity Mirror, up 15 dp to 695p, remained the focus of takeover interest from venture capitalists while fellow publisher Highbury House gained 1.88p to 9 bp after receiving a takeover approach.

Majestic Wine eased 1p to 275 dp after Teather & Greenwood placed 9.55million shares at 250p on behalf of a trust linked with co-founding chairman John Apthorp and another family member.

Stakebuilding talk lifted Financial Development Corporation dp to 12 bp. It recently announced the acquisition of an African oil outfit.

HydroDec Group, whose technology helps clean up organic pollutants, rose 1 bp to 21p on reheated gossip of a deal with a chemicals company being imminent.

Talk of strong festive trading put Domino's Pizza, up 4 dp to 222p, on the buy menu. Fashion retailer Monsoon cut an 8p fuller figure at 294p after strong trading. Traders were also excited by the prospects for its springwear, to be unveiled later next month. Renewed bid speculation pushed JJB Sports 3 bphigher to 210p.

Primary Health Properties improved 7p to 292p as punters bet on it winning planning approvals to roll out more health-care centres.

Investors tuned into Medal Entertainment, 12p ahead at 128 dp on the back of positive institutional meetings, while Dinkie Heel advanced 0.13p to 3p as investors warmed to a recent acquisition.

Recruitment consultancy Highams Systems gained 0.88p to 6 bp on suggestions costs would be significantly reduced following two senior departures.

Cost is Crucial in the Budget Airline Battle
NEIL HODGSON Industry Reporter
29 January 2005
Liverpool Echo

Cheap flights may soon come to end

LIVERPOOL John Lennon Airport bosses are celebrating a new route - to Rome with Ryanair.

But despite increasing capacity from its Merseyside base, the Irish airline is warning the cheap flights bonanza cannot go on forever.

Ryanair boss Michael O"Leary warned scores of European no frills operations could go to the wall in the next few years as they compete in an increasingly crowded sector.

He said: "Fares will get lower and airlines will struggle to fill seats."

Mr O"Leary even included the scheduled operators in his dire warning: "The high-fare airlines will be forced to match prices and, with their costs bases, they are going to struggle. ""

When Ryanair arch-rival easy Jet set up its Liverpool hub in Liverpool John Lennon airport in 1997 there were just two main players - themselves and Dublinbased Ryanair.

Today there are almost 50. But the good times can"t roll on for ever and easy Jet chief executive Ray Webster also predicts plenty of casualties - with, eventually, as few as five budget airlines left on the scene.

"The market will determine how many airlines it can sustain, but with its low cost base, well established route network and strong financial position, easy Jet can reassure consumers that it will survive and prosper. ""

So, cost is crucial to maintain an efficient operation and withstand commercial pressures from rivals trying to undercut each other on routes.

Most people know low-cost airlines can offer low fares by having a low-cost base - but what does that actually mean and what does it look like in real terms?

One of the sector leaders, easy Jet, has revealed to the ECHO just how they walk the fine line of being able to make flights pay for themselves.

The airline has illustrated its cost structure by breaking down the figures from its latest annual results to show how much an individual flight costs to operate and, therefore, show how much profit the airline makes per flight.

It explains in clear details just how tight the margins are in the industry.

According to easy Jet"s figures, during the past financial year it generated £5, 660 in revenue for each flight it operated.

From that total, the following costs have to be subtracted, per flight: airport charges - £993; fuel - £762; crew - £658; ownership - £600; ground handling - £577; maintenance - £529; navigation charges - £455; overheads - £382; advertising - £158; insurance - £103. That leaves a profit of £443 on each flight easy Jet operates.

Ray Webster believes that the cost structure is behind the stability that easy Jet can base its business model on.

When he announced the results recently he said: "They reflect the resilience of the easy Jet business model and have strengthened our position in the European airline market.

"Both financially and operationally we are stronger than we have ever been before.

"There are good opportunities for us in 2005. We expect to grow our sales through further enhancing our network. ""

Ryanair also expects to remain a leading player in the sector at the expense of less robust airlines.

UK regional sales manager Cathy Timlin said: "Unless airlines can replicate the cost base we have it will be difficult for them to stay above water. ""

BAA plans pounds 800m property fund to pay for expansion
By Edward Simpkins
30 January 2005
The Sunday Telegraph

BAA, the owner of Heathrow, Gatwick and Stansted airports, is in talks with Scottish Widows, the insurer, about setting up an pounds 800m fund to hold part of its huge property portfolio. Under the deal, known as Project Devon, BAA and Widows would inject substantial borrowings into the joint venture, allowing the airport operator to release hundreds of millions of pounds which could be used to fund extensive expansion programmes. According to BAA's accounts to the end of March 2004, the group had investment property on its books worth pounds 2.97bn. However, this figure does not include the pounds 6bn of operational property such as airport terminals used in the running of its business. Much of BAA's property is in or around the major London airports and tends to attract a premium value. On Friday BAA reported that its profits for the first three quarters of its financial year had increased by 18 per cent to pounds 521m.

The company remains on target to make a pre-tax profit of pounds 604m for the full year. However, BAA is spending pounds 4.2bn on Terminal Five at Heathrow and is planning to spend a similar amount on expanding Stansted.

Virgin Atlantic announces increased services to Shanghai and new services to Beijing
http://www.virgin-atlantic.com/en/gb/allaboutus/pressoffice/pressreleases/news/pr260105.jsp

26 January 2005

Virgin Atlantic is delighted to announce that it will increase its Heathrow Shanghai services from five weekly to daily starting on 30 October 2005 and plans to start a daily Beijing service as soon as possible. These new services follow the Chinese government's decision to make the UK one of its Approved Destination Countries, which allows more Chinese tourists to visit the UK.

Sir Richard Branson, Chairman of Virgin Atlantic commented:

"Virgin Atlantic is delighted to offer daily services to Shanghai from October. Virgin Atlantic has been operating flights between London and Shanghai since 1999 and has been instrumental in developing the link between the two cities. The airline has flown over 330,000 passengers on the route to date.

"China is one of the fastest growing economies of the world and following last week's decision by the government to give the UK Approved Destination Status we are also planning to start daily services to Beijing as soon as possible.

"With China hosting the Olympics in 2008 we believe that there will be a huge demand for passengers who wish to take advantage of competitive fares and the quality of service that Virgin Atlantic offers.

"Virgin Atlantic also added a daily service between Hong Kong and Sydney in December, adding more capacity to this region."

Chris Humphrey, Virgin Atlantic's Country Manager for China commented:

"Virgin Atlantic recognises that China is a world economic and cultural leader and is extremely committed to developing links between the UK and China. We are therefore very proud to announce the move to a daily service to Shanghai from October and daily service to Beijing in the very near future.

"These new services are great news both for the airline and for consumers - more flights mean increased flexibility, choice and ultimately more competitive fares."

Virgin Atlantic currently flies five times a week between London Heathrow and Shanghai Pudong Airport. The VS250 departs Heathrow at 16:00 on Mondays, Thursdays and Saturdays arriving into Shanghai Pudong Airport at 11:15 the following day. (The flight departs at 15.50 on Friday and at 16.05 on Tuesday). The return flight VS251 departs Shanghai on Tuesday, Wednesday, Friday, Saturday and Sunday at 13:30 arriving into Heathrow at 17:50.

Virgin Atlantic currently operates a daily service between London Heathrow and Hong Kong and has recently launched daily services between Hong Kong and Sydney, Australia.

For further information please contact the Virgin Atlantic Press Office on 01293 747 373 or log on to www.virgin.com/atlantic.

BAA PLC reports 6.5 percent passenger increase at key British airports
28 January 2005

LONDON (AP) - Major British airports reported a 6.5 percent increase in passenger numbers in the nine months ending in December compared with a year earlier, airports owner BAA PLC said Friday.

The company, which operates London's Heathrow, Gatwick and Stansted airports, also reported after-tax profits on ordinary activities of 368 million pounds (US$695 million; euro533.55 million), up 21 percent from 304 million pounds in the previous year.

In addition to the London terminals, BAA operates airports serving Southend, England, and the Scottish cities of Glasgow, Edinburgh and Aberdeen.

Heathrow Terminal 5

After a decade of planning deliberations Heathrow Terminal 5 was finally given
the all clear in 2001. Construction is now at an advanced stage. Richard
Rogers's light, airy, and intuitive design will accommodate an additional 30
million passengers a year (taking Heathrow to nearly 100 million in total) and
also handle the new Airbus A380.

http://pic5.picturetrail.com/VOL85/949935/2682391/33270366.jpg

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http://pic5.picturetrail.com/VOL85/949935/2682391/33270377.jpg

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http://pic5.picturetrail.com/VOL85/949935/2682391/33271397.jpg


Here are a couple more pics of the layout of terminal and
satellites. In the second pic you can see their location between
the runways and relative to Terminals 1-3:

http://pic5.picturetrail.com/VOL85/949935/2682391/33274099.jpg

http://pic5.picturetrail.com/VOL85/949935/2682391/33274104.jpg


Construction pic from last year - now considerably out-of-date:

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Stansted's new runway comes to a standstill
Ben Webster
31 January 2005
The Times

While BAA struggles to find Pounds 2bn for its expansion plans, home prices continue to be blighted, writes Ben Webster

Thousands of home-owners around Stansted airport face another decade of uncertainty because of a likely delay to the development of a new runway.

The Essex airport was supposed to gain a second runway by 2012 under a timetable published a year ago in the Government's aviation White Paper.

But BAA, the airport's owner, is struggling to find the Pounds 2 billion it needs for the first phase of the expansion, in which would Stansted grow to be larger than Heathrow is today.

The delay raises the possibility that Heathrow could be expanded first, with a third runway north of the existing two.

Stansted had been enjoying runaway growth on the back of the boom in low-cost air travel. But the airport's passenger growth rate halved last year, suggesting that the market for low-cost air travel in the South East is close to being saturated.

Ryanair, which accounts for 60 per cent of flights at Stan-sted, has been unable to sell thousands of "free flights", for which it asks passengers to pay only taxes and charges.

BAA admits that it will struggle to pay for the new runway unless it is allowed to cross-subsidise it from its profits at Gatwick and Heathrow. But the Civil Aviation Authority has said that Stansted's expansion should be funded by its own passengers unless there were compelling reasons for a cross-subsidy.

Senior BAA staff have conceded privately that Stansted's new runway could be delayed until 2015 or even later.

More than 12,000 homes have been blighted by the proposed expansion. They fall outside the area in which BAA is promising to compensate residents. Their owners may be able to recover some losses, estimated at an average of Pounds 100,000 per property, under the Land Compensation Act. But the Act would apply only after the runway had opened.

David and Kay Johnson live about 100 yards outside the zone eligible for compensation from BAA. Their 15th-century converted barn is on the edge of the flight path for the proposed new runway and a new link road to the M11 would be built on fields close to their home. They paid Pounds 565,000 for their listed home three years ago and believe it should now be worth Pounds 750,000.

But Mr Johnson, 60, a retired loss adjuster, said: "We would be lucky to get Pounds 500,000 now. The uncertainty is the worst thing. Part of me wishes they would build the runway but BAA wants to keep its options open and leave the threat hanging over us. We could be fighting this for another ten years."

An internal Department for Transport paper, seen by The Times, states: "It would be difficult to fund an additional runway at Stansted opening in 2012, followed by an additional Heathrow runway opening soon after, say 2015."

But the White Paper proposed that a Heathrow runway could be built as early as 2015. An enlarged Heathrow, combined with the expansion of Luton, Birmingham and smaller airports, could mean that a second runway at Stansted is not needed. The existing runway handled 21 million passengers last year but is capable of handling more than 40 million.

British Airways is arguing for a new runway at Heathrow as early as possible and has threatened legal action if BAA tries to make Heathrow passengers pay for Stansted's expansion.

Terry Morgan, the managing director of Stansted, said that it was too early to say whether BAA would be able to pay for the early expansion of Stansted without a cross-subsidy.

British Airways profits dive amid surging oil prices
Feb. 4, 2005

LONDON (AFP) - British Airways (BA) announced a 40-percent fall in third-quarter profits after being hit by soaring fuel prices.

BA made a pre-tax profit of 75 million pounds (109 million euros, 141 million dollars) in the three months to the end of December compared with 125 million pounds during the same period in 2003.

The latest quarterly figure was however above analysts' consensus forecast of 60 million pounds.

"These are respectable results in a quarter where fuel costs increased by 106 million pounds (47.3 percent)," BA chief executive Rod Eddington said in a statement accompanying the results.

Crude oil prices soared to a record high level of 55.67 dollars per barrel in New York trading last October, at the start of BA's third-quarter.

New York's main contract, light sweet crude for delivery in March, closed down 24 cents to 46.45 dollars a barrel on Wednesday on diminishing fears about a possible supply crunch in key markets.

BA chairman Martin Broughton said that he expected the group's fuel costs, net of hedging, to be about 245 million pounds greater in the year to March than the previous 12-month period, although this would be partially offset by fuel surcharges on individual tickets.

The group meanwhile said that turnover had increased by 4.3 percent to 1.97 billion pounds in the third quarter, reflecting the impact of fuel surcharges and a 6.3-percent increase in cargo revenue.

Passenger revenue declined 0.1 percent during the same period.

Eddington said that BA's focus remained on reducing controllable costs and debt whilst continuing to invest in its products.

The chief executive pointed to the recent delivery of six Airbus A321 aircraft and further planned improvements to its Club World flat beds.

British Airways Traffic and capacity statistics - January 2005

Summary of the headline figures

In January 2005, passenger capacity, measured in Available Seat Kilometres, was 3.2 per cent above January 2004. Traffic, measured in Revenue Passenger Kilometres, was higher by 8.1 per cent. This resulted in a passenger load factor up 3.2 points versus last year, to 72.3 per cent. The increase in traffic comprised an 11.8 per cent increase in premium traffic and a 7.5 per cent increase in non-premium traffic. Cargo, measured in Cargo Tonne Kilometres, rose by 14.2 per cent. Overall load factor rose by 3.3 points to 68.1 per cent.

Market conditions

Market conditions for the current financial year remain broadly unchanged. For the year to March 2005, the total revenue outlook is slightly better than previous guidance with a 3.0-3.5 per cent improvement anticipated (compares with previous 2-3 per cent). All market segments remain price sensitive and yield declines are expected to continue.

Strategic Developments

British Airways plans to fly five flights a week this summer from London Heathrow to Shanghai in China, subject to approval by the Chinese authorities. The airline currently flies from London Heathrow to Beijing four times a week increasing to six times per week from June 2005 and 17 times a week to Hong Kong, increasing to 21 flights a week from June 2005.

British Airways flights between London Heathrow and Jeddah and Riyadh in Saudi Arabia are to be suspended from March 27, 2005 for commercial reasons, due to reduced passenger demand.

Commission payments to UK travel agents on British Airways’ bookings are to be reduced from one percent to zero from May 1 2005. Agents will be free to charge their own scale of service fees in addition to the ticket price. Service fees of £15 on short haul bookings made via the telephone have been extended to longhaul flights.

The airline’s multi-award winning Club World flat bed is to be improved with the latest cushioning technology to give customers more comfort and further ergonomic support. This is the first time such cushioning has been used in an airline seat.

Business travellers can earn the equivalent of a free ticket when they book their next British Airways business class ticket. The airline is giving away over 750 million BA Miles in a bumper New Year mileage offer. The offer gives all passengers, who book an eligible Club World or First flight for travel between now and March 24 2005, triple BA Miles. Passengers have to join the British Airways Executive Club to be eligible for the promotion and can gain the bonus miles on up to four eligible return flights taken within the travel period.

BAA has 'robust start' to year NEWS DIGEST.
By SHARLENE GOFF
10 February 2005
Financial Times

BAA yesterday revealed a robust start to the year as the airports operator said traffic in January had risen 7.4 per cent to 9.9m passengers. The group, which operates seven airports including Heathrow, Gatwick and Stansted, said aggressive marketing by airlines had driven demand at its London hubs.

Fierce competition for passengers has driven prices down across many airlines, increasing demand for travel.

However, passenger growth at Stansted, where the government proposes to build a second runway, slowed to 8.6 per cent, compared with 14.8 per cent in January 2004.

In December BAA revealed the first signs of a slowdown in growth at Stansted since the airport began its rapid expansion in the late 1990s with the arrival of the low-cost airlines.

Sunday Business (London)
January 30, 2005, Sunday
British Midland's Bishop: The great aviator faces a dogfight

Sir Michael Bishop, at 64, is the elder statesman of Britain's airline industry. Mannerly, dapper and avuncular, the BMI British Midland chairman has the air of an more elegant bygone era in airline travel, when aeroplanes were devoid of football hooligans and package-holiday revellers.

The great aviator learned his trade in a more gentle time when airline passengers were cherished, addressed by courteous air hostesses as Sir and M'dom, while enjoying the privilege of being grossly overcharged.

But appearances can be deceptive. BMI's creator, main shareholder and chief aviator, is ruggedly independent and has a reputation as one of the toughest and most astute in the business. Bishop's normality is in contrasts to an industry populated by "characters" like Ryanair's Michael O'Leary and Easyjet's Stelios Haji-Ioannou.

At times, he is most admirably restrained. Not a public titter was heard from Bishop's moustachioed lips during the highly damaging 1991 "dirty tricks" battle between BA's then chairman Lord King and Virgin's Sir Richard Branson.

King says of him: "He is almost certainly one of the most successful leaders in the industry. He has an extraordinary capacity for hard work and an extraordinary level of confidence in his own abilities."

These days Bishop is weary of the aggressive marketing style of low-cost airlines, which often includes taking potshots at BMI. When Barbara Cassani was shown the chief executive's emergency exit at Go shortly after Easyjet took over the cut price airline, Bishop displayed a rare lapse of restraint.

He said: "I don't particularly want to rise to the bait. But as Barbara has gone from Go to gone in about three months, I think the boot might be on the other foot."

But Bishop, too, has been forced to accept that in this new age of travel there are more pawns on the travel chessboard than queens and knights. The soaraway success of Ryanair and Easyjet forced him into a rethink, prompting the launch in March 2001 of British Midland's own low-cost carrier, the cutely named BMIbaby.

Now Bishop is having to think again. Lufthansa, the German airline which holds 30 percent, less one share, of BMI is unhappy with the relationship because Bishop's airline has not lived up to the German carrier's expectations.

Lufthansa bought an initial 20 percent stake for 91.4m (E1331.6m, $ 171.8m) in late 1999, later bumping it up to 30 percent, in the hope it and BMI could establish a bridgehead at London's Heathrow airport to challenge BA on its home turf. At the time it also agreed to a number of conditions with Bishop that it has since come to regret. Lufthansa is now said to be hawking its stake around the industry. Although SAS, the Scandinavian carrier, owns another 20 percent of BMI, Bishop remains firmly in the pilot's chair with control of 50 percent, plus one share.

Like other airlines, BMI's financial performance deteriorated rapidly in the crisis that engulfed the airline sector in the wake of the 11 September 2001 terrorists attacks in the United States and that has racked up losses for Lufthansa.

Bishop's business life has been characterised by rebellions and battles, so one more will hardly clip his wings. He has fought endless dogfights with the UK and US governments to open the skies to competition. Some met with success. He finally won the right to compete on BA domestic routes in 1982, then gained access to European destinations in 1986. But what continues to elude him is the day when the BMI will become a fully-fledged transatlantic carrier under a true "open skies" policy between Europe and the US. His ambition is undiminished to operate transatlantic services out of Heathrow, rather than Manchester.

BA has tried to buy BMI three times over the past 11 years. But each time the deal has failed to get past high regulatory hurdles. This time, BA will not make an approach for the Lufthansa stake. Not because it is no longer interested in BMI, but because the regulations remain hostile to such a match -- on the grounds BA would have a total monopoly on Heathrow slots.

Despite rebuffs from a reluctant bride, Virgin Atlantic believes there is a deal to be done. Regulators would not object to a Virgin/BMI merger on competition grounds and such a combination would provide more competition for BA. The fit on slots between the two airlines would give Virgin the ability to plan its route network on a long-term basis; at the moment routes are added on an adhoc basis whenever suitable slots become available and can be acquired.

But Bishop is the stumbling block. Although the two airlines have held talks on sharing agreements, colleagues say Bishop was dismayed at Virgin's portrayal last year of any potential deal as a takeover. One source pointed out that because Bishop had spent most of his business life building BMI he is loath to give up control -- any deal would have to be "no worse than a merger".

Bishop was born in 1942 at Bowdon, Cheshire, and educated at Mill Hill School. The son of a Cheshire factory boss, he first took to the air at the age of six on a pleasure flight round Manchester airport. In 1949, his parents took him on an Aer Lingus flight to Dublin -- his first experience of commercial aviation. There began his first flight of fancy.

After leaving school, he joined the family business which built specialist commercial vehicles but quickly decided to make his career in civil aviation. In 1963, he joined Mercury Airlines in Manchester, which was taken over by British Midland the following year. He rose quickly from baggage handling to become general manager of British Midland in 1969. He was appointed a director in 1970, managing director in 1972 and chairman in 1978.

Then came time for takeoff. In 1978 the London investment group which owned British Midland decided to sell and with the help of a loan from an entrepreneurial Californian dentist, Bishop raised 2.5m to take control. Now, still a bachelor, he has a personal fortune estimated at 185m.

His interest in music and the arts is reflected in his appointment as chairman of the D'Oyly Carte Opera Trust, which was revived in 1988 as a company presenting Gilbert and Sullivan operas. He is also an honorary member of the Royal Society of Musicians of Great Britain. From 1991-97 he was a board member of Channel 4 Television, holding the positions of deputy chairman from 1991 to 1993 and chairman from 1993 to 1997).

Bishop's contribution to the industry was publicly recognised first in 1986 when he was awarded a CBE and he moved from Bishop to Queen's Knight in 1991. He is an honorary companion of the Royal Aeronautical Society, Freeman of the Guild of Air Pilots and Air Navigators.

He is compassionate and honest: in 1989, when a British Midland Airways Boeing 737 crashed on the M1 motorway in Leicestershire, killing 47 people, Bishop lost no time in getting to the scene and telling the press that as the head of the company, he was responsible. There was no hiding behind official inquiries, no "no comment" statements from him, nor any sense of obfuscation. His leadership in crisis was clear, sympathetic, positive and transparent. He was visible, coherent and reassuring. Bishop kept the media informed of the official inquiry and what British Midland was going to do next. Consequently, his actions were noted as an outstanding example of crisis management from the top. Despite an enormous tragedy caused by technical and human failings, the travelling public's confidence in the airline was hardly dented by the accident.

Despite the inroads made by low-cost carriers, Bishop believes travellers will always want a choice between traditional, full-service carriers and frill-free, foodless airlines based at out of the way airports. He names Ryanair's O'Leary as his most admired competitor, putting him ahead of EasyJet's founder Stelios Haji-Ioannou who he describes as "an extremely shrewd man". But he took some satisfaction from Haji-Ioannou's decision to quit as EasyJet chairman and leave the airline industry to what Bishop called the "professionals".

Bishop accepts budget airlines are "a permanent feature of the landscape". But he insists the core of BMI's strategy will still be that of a full-service, traditional carrier. He runs through the advantages -- well-located airports, baggage handling through to the final destination and lounges.

"To say there's only going to be low-cost airlines and nothing else is ridiculous. Customers want a choice. There actually is enough business for everybody. But not unreasonably, commentators tend to see everything in terms of black and white -- if one's up, the other's down, if one's in, the other's out."

BMI, although Britain's second largest airline, is still David to the Goliath that is BA. BMI operates 2,000 flights a week to nearly 30 destinations in Europe, mostly from London's Heathrow Airport. The carrier owns more than 40 planes. Its low-fare carrier BMIbaby is developing into a healthy child.

BMI operates from its elegant Donington Hall headquarters near Manchester, the cause of much amusement among low-cost airlines who regard their prefabricated sheds as more in keeping with their business model than a mansion. "I paid 185,000 for Donington Hall 20 years ago," he says. "It was probably cheaper than their [Easyjet's] tin hut in Luton. But because it's a nice symbol, people don't let the facts get in the way."

Yes, sir, Captain.

US boost for UK regional airports
12 February 2005
The Independent

NORTH AMERICA will be easier to reach from regional airports this summer. Continental Airlines continues its expansion from UK airports with the launch, on 20 May, of flights from Bristol to Newark, New Jersey. A week later, Belfast will also be linked to the east-coast city. Besides offering easy access to New York, Newark has connections across the US and into Canada and Mexico. On 2 May, Continental restarts its summer- only flight from Gatwick to Cleveland.

American Airlines is to restart its Glasgow-Chicago and Manchester-Boston links on 2 May, continuing until 30 September and 29 October respectively. The Manchester service is an economy-only flight.

From June, Zoom adds Belfast to its UK regional network, with a weekly scheduled flight to Toronto.

UK Air Traffic Glitch Delays Some Flights
17 February 2005

LONDON (AP)--An air traffic control glitch caused some flight delays in Britain on Wednesday.

National Air Traffic Services said it had discovered the problem in its West Drayton flight processing center at 6:30 p.m. local time (1830 GMT) Tuesday and fixed it by 7:03 p.m. (1903 GMT). It said it didn't know the cause of the trouble.

Controllers temporarily restricted the number of aircraft entering U.K. air space and taking off from U.K. airports.

The service said safety hadn't been compromised, but it regretted inconvenience caused to travelers.

A Heathrow Airport spokesman said there could still be some delays of about an hour, but the backlog should be eliminated quickly.

Court ruling on UK government's airport policy welcomed by BAA
18 February 2005
Airline Industry Information

British airports operator BAA plc said on 18 February that it welcomed a High Court ruling on the UK government's airport development policy for southeast England.

The judicial review supported the government's White Paper on Air Transport and plans for a new runway at London's Stansted Airport, while rejecting certain challenges to the policy of seeking ways to make best use of the capacity of Heathrow, BAA said.

The court also stated however that people living near Stansted must have a say over the precise location and land used for the runway.

BAA said that the judgement would allow it to "press ahead with exploring ways to achieve better use of Heathrow's existing two runways, planning a new runway at Stansted, and examining the feasibility of a third runway at Heathrow."

Runway ruling to delay Stansted expansion
Andrew Clark - Transport correspondent
19 February 2005
The Guardian

The government's plans to turn Stansted airport into one of Europe's biggest international hubs face a potentially lengthy delay following a high court judgment that ministers acted illegally in prescribing the location of a new runway.

Mr Justice Sullivan ruled yesterday that the transport secretary, Alistair Darling, had short-circuited the planning process by publishing a map showing the precise position of an extra landing strip at the Essex airport.

To the relief of the government, the judge stopped short of entirely throwing out Mr Darling's policy on aviation, refusing to support a claim that the commercial viability of new runways was flawed.

The ruling is the first time a white paper has fallen foul of a judicial review. It left the government with the embarrassing prospect of paying a six-figure sum for the legal costs of Essex's Conservative-controlled county council. The judge also criticised a senior government official for failing to tell "the whole truth".

Stansted is central to the government's policy of expanding airports to cater for the appetite for cheap flights. Mr Darling announced in Decem ber 2003 that the airport's capacity was to go from 25 million passengers annually to a maximum 82 million by 2030.

The judgment is likely to mean that a new runway will undergo scrutiny at a planning inquiry, of a length and at a level of detail Mr Darling was keen to avoid. It will hearten campaigners at other airports including Heathrow, Birmingham and Edinburgh.

Essex county council's leader, Lord Hanningfield, said it could push back the opening date of a new landing strip at Stansted from 2012 to 2016.

"The government has got to go right back to the drawing board. They will have to think again on whether Stansted is the best site in the south-east for a new runway," he said.

The judge also ruled that Mr Darling over-reached his powers by giving the green light for an expanded runway at Luton without consulting local people.

Government officials insisted that the defeats, on two out of four challenges, would make little difference.

Speaking on Radio 4's World at One programme, Mr Darling said he accepted that the "exact position" of a runway should be "a matter for a local inquiry".

"What we were trying to do in the white paper is to set out a strategic direction for air transport over the next 30 years. The judge was specifically asked to quash that; he rejected it, as indeed he rejected the arguments against expansion at Heathrow."

One of Mr Darling's officials, Mike Fawcett, was criticised for his reluctance to reveal grave doubts at the Treasury.

Mr Justice Sullivan said government officials "should remember that their obligation to tell the truth to the court does not mean that the court need only be told so much of the truth as suits the department's case, and that inconvenient parts of the truth may be omitted from their evidence".

Treasury doubts over Stansted runway
Michael Harrison
23 February 2005
The Independent

SERIOUS DOUBTS about the financeability of a second runway at Stansted airport have been raised in Treasury papers released under the Freedom of Information Act.

The papers, submitted in confidence to a High Court hearing last year, reveal the Treasury is "concerned about the potential for serious delay" to the new runway unless it is cross-subsidised by the users of London"s other two main airports, Heathrow and Gatwick.

If the runway is built on a "stand-alone" basis and funded only by airlines using Stansted, which is currently the Government"s preferred option, then peak-time passenger charges might have to increase almost fivefold to £16 per flight, the documents add. The Treasury believes this could result in a "high degree of revenue risk" because the owner of Stansted, BAA, might not be able to force the low-cost airlines who predominantly use the airport to pay such a big increase.

According to the documents, there was agreement between the Treasury, the Department for Transport and the Civil Aviation Authority that the new runway could be built in time to open in 2011-12 provided there was a "system approach" to financing, using the pooled revenues from all three London airports. "There is collective agreement between DfT, HMT and CAA that we cannot state categorically that a new runway at Stansted is not financeable on a stand-alone basis but due to the higher degree of revenue risk, BAA could choose to delay the development to allow the financing situation to improve," the document says.

Ryanair, the biggest operator at Stansted, is already leading a high- profile campaign against the cost of the new runway, arguing it could be built for a tenth of the price quoted by BAA.

But BAA will face an equally big outcry from airlines based at other airports if it tries to cross-subsidise Stansted from landing charges paid by passengers at Heathrow and Gatwick.

The Treasury documents are based on a construction cost for the new runway of £2.6bn. BAA"s latest cost estimate is between £1.7bn and £2bn, which is says would be enough to pay for the second runway, additional terminal facilities and new road and rail links into the airport.

British Airways increases capacity on service to Israel
24 February 2005
Airline Industry Information

British Airways has announced that it is increasing its capacity to Israel by 6%.

The airline said that the load factor on its London-Tel Aviv route was about 90% in economy class and 75% in business class. Such high load factors are a result of optimism over the resumption of Israeli-Palestinian peace talks, said a company spokesperson.

British Airways is reportedly investing about GBP3m to upgrade the Israel route, out of GBP600m worldwide.

BA reveals new-look flight to Tel Aviv
AVI KRAWITZ
23 February 2005
The Jerusalem Post

British Airways (BA) is upgrading its Tel Aviv route, introducing a new breakdown of passenger gradings within its Boeing 767 plane, the company said Tuesday.

The airline's first flight using the new system is slated for April 18, and will feature 24 "Club World" seats for its highest premium traveler, a further 24 seats in its "World Traveler Plus" section and 141 "World Traveler" seats, representing an increase of 6 percent on its passenger capacity.

BA currently flies with 134 economy-class, 36 business-class and eight first-class seats.

BA's commercial manager covering Israel, David Rousham, said at a press conference in Tel Aviv that the airline had decided to cancel its first-class service on the Tel Aviv route due to insufficient demand.

Instead, Rousham revealed the new look Club World product, which has undergone renovation over the last month and will include its featured flat bed extending 183 cm., entertainment and in-seat laptop connection, newly designed seating, upgraded catering and access to departure and arrivals lounges. The 24 seats in the World Traveler Plus option will also offer the flat beds.

The company said that the transition to the upgraded planes would be gradual and that by the summer all of its 14 weekly flights from Ben-Gurion Airport would be on the upgraded 767s.

BA was not able to provide a final price list for the Club World and World Traveler Plus classes, but said that its World Traveler option would remain at $534 including taxes.

No-frills airlines help passenger numbers to double in 14 years
Environmental fears at rapid growth in cheap flights
JAMES REYNOLDS
ENVIRONMENT CORRESPONDENT

http://thescotsman.scotsman.com/img/ts_masthead.gif

THE number of passengers flying from Scotland’s five largest airports has more than doubled since 1990, according to new figures from the Civil Aviation Authority (CAA).

The biggest growth has been in scheduled services to Europe, where the 1993 "open skies" policy has led to dramatic growth among no-frills airlines, such as EasyJet and Ryanair.

With a total of 8.5 million passengers, Glasgow remains the third biggest UK regional airport, after Manchester and Birmingham.

However, Edinburgh, just behind in fourth place, has seen the biggest increase over the past 14 years, from 2.5 million to eight million passengers.

International scheduled routes from Scotland have also rocketed, from just ten to 40 over the same period. The biggest increase has been at Prestwick, where such routes have gone from none to 12.

Edinburgh has slightly more international scheduled passengers than Glasgow - 1.7 million versus 1.6 million - but Glasgow has more charter passengers.

A similar growth rate is reported elsewhere in the UK, although some airports have been particularly strong.

The number of international scheduled passengers at Bristol, Liverpool and Nottingham has increased by more than 1,000 per cent.

Harry Bush, the Civil Aviation Authority’s economic regulation group director, said the expanded networks demonstrated a "much richer set of travel choices for customers".

However, the expansion drew criticism from environmental organisations. A spokesman for the Green Party said: "Scotland needs a balanced approach to aviation because of the impact on climate change that such travel has. The Scottish Executive appears quite happy to let it run out of control and expand with little regard for this.

"Lifeline flights are OK, but short-haul flights where rail travel is a real alternative are a worry."

Malcolm Robertson, the head of public affairs for BAA Scotland, which operates Edinburgh, Glasgow and Aberdeen airports, said: "The growth in air transport in Scotland is good for the economy and demonstrably good for Scottish jobs. Our airports alone support somewhere in the region of 32,000 jobs directly and indirectly, as well as contributing more that £1.5 billion to the economy each year.

"We do have a duty to the environment and to the Scottish public to develop the airports and grow them in a responsible way - there is certainly not a growth-at-any-cost attitude."

BA enlists Darling's help over cost of flight turned back by US
BY PATRICK HENNESSY Political Editor
27 February 2005
The Sunday Telegraph

BRITISH AIRWAYS is demanding an estimated $1-million in compensation from the United States after one of its flights was turned back to London because a passenger was on a list of suspected terrorists. The airline claims that there was no evidence that the passenger, who was released without charge, was a terrorist and that the order to return to London was unnecessary and a mistake. Rod Eddington, BA's chief executive, has enlisted the help of Alistair Darling, the Transport Secretary, in his effort to get the Americans to repay a substantial amount of the costs incurred as a result of the US decision. Mr Darling's officials have promised that the Government will do what it can to help BA, but have also said that they are reluctant to do anything that could be seen to undermine the US-led war on terrorism.

The controversy centres on an incident last month when a BA 175 flight from Heathrow to New York's John F Kennedy Airport, which had 239 passengers on board, was turned back to Britain three hours into its journey. A spokesman for the US Transportation Security Administration said that a male passenger, of North African origin and travelling on a French passport, was a " positive match with an anti-terrorism watch list" . Inquiries by The Sunday Telegraph have revealed that a major dispute between US authorities and British Airways broke out while the flight was airborne, with the airline insisting that the man was not on any banned list that it had. At one point, US aviation officials threatened to escort the aircraft into an American airport with military jets. BA refused to endorse such action on the ground that it would alarm passengers, and eventually agreed to return to Heathrow where the man was met by police. He was later released without charge. The US government continued to insist that the unnamed passenger had been on a list of those barred from flying because of suspected terror links. Washington maintained that BA did not have the latest version of the list. A British Airways spokesman said that the flight had returned to Heathrow after the airline received a " request" from US officials saying that a passenger could not be allowed to land in New York. " There was no threat to the safety of the aircraft," the spokesman said. However, The Sunday Telegraph understands that the attitude of senior US officials enraged Mr Eddington and convinced him to urge the Government to intervene by trying to use the strength of its relationship with President Bush's administration to win compensation. A letter from British Airways was sent to Mr Darling earlier this month, but so far there has been no breakthrough in the compensation battle. A senior Whitehall official said: " Eddington is spitting feathers over this incident but it's a very delicate one both for us and for the Americans. " Of course there is a great annoyance at BA about what happened and we understand where they are coming from about compensation, but they in turn must know that the Amercians, in a post-9/11 climate, take any perceived terror threat incredibly seriously, and nobody can blame them for it. " Yes, we are talking to the Americans about it and trying to work with them to get to a solution, but we are absolutely not going to do anything heavy handed. We work extremely closely with them over aviation seccurity. We have enormous sympathy with them and the way they are trying to act after 9/11." This month British Airways announced that pre-tax profits for the last three months of 2004 had fallen from pounds 125-million to pounds 75-million. However, the City was pleased by the figures, with the slump largely accounted for by rising fuel costs. Turnover increasd over the period by 4.3 per cent to pounds 1.97-billion. The January incident followed other examples of flights being disrupted or cancelled because of terrorist-related scares, many of them involving aircraft bound for New York or Washington from Europe. Last September the singer Yusuf Islam, formerly known as Cat Stevens, was removed from a United Airlines London-to-Washington flight because of suspected links to terrorists, a claim that he has strongly denied.

Snow disrupts flights at Heathrow
28 February 2005
Airline Industry Information

Heavy snow forced British Airways to cancel 54 flights from London's Heathrow Airport on Friday morning (25 February).

Short-haul flights to destinations including Manchester, Edinburgh, Brussels, Dusseldorf, Copenhagen, Zurich and Geneva had to be cancelled, said an airline spokesperson.

The weather conditions improved later and no further cancellations were expected.

Prestwick cover-up bid makes a good Sunday Mail scoop grate Media watch
27 February 2005
Sunday Herald

PRESTWICK Airport was left with egg on its face last week after a Sunday Mail expose on its security.

Not only did reporter David Taylor manage to crawl under a security barrier at the airport, cross a runway and spend several minutes under a jet full of passengers bound for Florida, but the airport also offered not to make a police complaint if the paper killed the story.

Instead, the Sunday Mail published this offer in excerpts of a conversation between news editor Brendan McGinty and airport press officer Alan Clark, which included Clark confirming the offer was sanctioned by chief executive Steven Fitzgerald.

Early this week, the airport put out a release saying "claims that the airport offered to not go to the police are untrue".

But later Clark clarified to MediaWatch that Fitzgerald had sanctioned such an offer.

He claims police were informed about the breach as soon as Prestwick knew about it, and Fitzgerald would have recommended they didn't press charges if the story wasn't printed. Far from wanting to avoid embarrassment and lose money, they were trying to avoid undue traveller concern.

Ah, the wonders of PR.

British Airways Puts Focus Back on Service
Passengers Take Precedence As Competition Intensifies, Cost-Cut Options Dry Up
By Daniel Michaels
2 March 2005
The Wall Street Journal Europe

LONDON -- After five years of retrenchment and crisis management, British Airways PLC is again concentrating on wooing passengers.

The world's largest international airline by traffic, BA has been aggressively cutting costs since before the sector's struggles after the terrorist attacks of Sept. 11, 2001. But cost cutting is no longer coming as easily as it had, and some industry observers question whether the carrier has cut too far. Meanwhile, competition is heating up on its key long-haul routes, with foreign carriers -- including U.S.-based UAL Corp.'s United Airlines, Air France-KLM and Dubai-based Emirates Group -- looking to boost their presence in those markets.

Now, in a new two-year business plan that Chief Executive Rod Eddington unveiled to BA staff yesterday, the carrier is placing renewed emphasis on building its brand and improving service for fliers. BA hopes the enhanced amenities will help it maintain a competitive edge -- especially with high-paying business- and first-class passengers -- as U.S. rivals compete mainly by slashing fares. "Successful carriers will only stay successful because they continue to change and innovate," Mr. Eddington said in an interview.

As part of its new plan, BA expects to improve its long-haul first- and business-class offerings, both of which were the first to offer fully flat bed-seats. BA is also looking at improving offerings on its European short-haul network. In addition, the airline plans to consolidate its operations in London's Heathrow Airport to become more efficient and to improve passengers' experiences there. Expenditures for these efforts haven't yet been set.

BA plans to continue its aggressive cost-cutting efforts because, like carriers around the globe, it faces a glut of seats and growing competition from budget airlines. Its moves, along with a focus on long-haul traffic that is less hotly contested than ultracompetitive short-haul flights, have helped bolster its profitability despite dropping fares. As part of BA's cost savings, it has reduced its head count by 13,000 jobs since 2001, to roughly 46,000 employees today.

In its most recent fiscal quarter, the third quarter ended Dec. 31, net profit slid 41% to GBP 49 million (71.2 million euros), or 4.6 pence a share, on fuel costs and declining average fares in both Europe and on trans-Atlantic routes. During the quarter, its yield, or revenue per passenger kilometer flown, fell 1.9% to GBP 6.20. But the carrier also forecast a rise in revenue of as much as 3.5% for the full year through March 31, 2005, and many analysts predict a sizable rise in net profit.

Meanwhile, BA is finding cost cuts increasingly difficult. In 2001, Mr. Eddington announced plans to trim GBP 650 million from BA's cost base, which then stood at GBP 8.6 billion annually. Two years later, he raised that objective by GBP 450 million and last year targeted an additional GBP 300 million in savings on labor costs. BA says it beat its first GBP 650 million goal by more than GBP 200 million.

But Mr. Eddington several weeks ago said slow contract talks mean the labor-cost savings will take one year longer to achieve than planned. He conceded that reworking some labor practices and agreeing to a new contract with cabin staff is taking longer than he hoped but added that he had set "very ambitious" targets for transforming the airline. "You don't restructure a business by setting modest targets," Mr. Eddington said.

Some observes now wonder if BA has cut too close to the bone. In August, it faced chaos during the peak tourist season because of staff shortages. Morgan Stanley equity analyst Penelope Butcher wrote in a recent report that staff cuts have "recently come back to haunt BA." Mr. Eddington said the issue of how deep to cut is "an entirely legitimate question and a proper challenge to any business." He said a priority now is to rework business practices for greater efficiency, not just cut jobs.

Mr. Eddington said that, in addition to cost cuts, the new business plan also focuses on investing in new products and staff and preparing for major improvements at BA's London hub. The carrier didn't set new savings goals or specify targets for revenue and profit performance for the two-year plan.

In one of the biggest changes for BA in many years, the carrier plans to relocate in 2008 to a giant new terminal building at Heathrow Airport. The move will allow BA for the first time to consolidate under one roof operations that are now spread among three overstretched terminals and other airport facilities. Mr. Eddington said the move to Heathrow Terminal 5, which is under construction, will allow BA to offer passengers more services while also reducing costs.

BA has suffered, compared with its rivals in Europe and around the world in recent years, because its Heathrow hub operation is inefficient and expensive to run. Passenger transfers between terminals take far longer than at a single terminal, while baggage must be handled twice, adding cost and complexity. BA in 1999 began scaling back its network partly as a result of the cost of operating at Heathrow.

The move to Terminal 5 will give BA a fresh start through which to simplify operations. The consolidation is "a move of such importance to us," said Chief Financial Officer John Rishton. "It's where a large focus of our attention will be over the next three years."

BA aims to complete plans for the move by the end of 2006, although Heathrow operator BAA PLC won't finish the GBP 6.1 billion project's satellite buildings until at least 2010. That means BA will face a squeeze for its first two years in the new buildings.

The shift to Terminal 5 and measures to "take advantage of the terrific new terminal facilities" will be a major catalyst for change within BA, Mr. Eddington said. BA's preparations will form a big part of the new business plan, he said. The business plan also will be the centerpiece of presentations when top BA executives meet with fund managers on March 10 for the company's annual investor day.

Mr. Rishton said "there is a misconception we haven't invested in product." He said that although BA hasn't ordered new aircraft or redone its cabin interiors in several years, it has improved airport lounges, installed self-check-in kiosks at many airports and made its Web site customer-friendly. Improvements to some of its aircraft cabins are to be announced this year.

Roundup: Airlines: Buoyant bmi bucks oil price rise
Mark Milner
3 March 2005
The Guardian

UK airline bmi ended a two-year losing streak in 2004, clocking up pre-tax profits of some pounds 2.1m despite higher fuel prices. In 2003 the airline group made a loss of almost pounds 10m.

Bmi, controlled by Sir Michael Bishop, acknowledged that it was still about pounds 4m in the red at the operating level but said it had been boosted into the black by minorities and by net interest of around pounds 3.5m.

Sir Michael said that bmi had, like all airlines, been hit by a "sidewinder" in the form of higher fuel prices. Net of hedging, the increase in fuel prices had cost the company around pounds 11m - though some of that had been recouped via a passenger surcharge.

Passenger numbers increased by 11% to 10.5 million, while the group was achieving greater than expected savings through its "Blue Sky" programme which includes greater use of self-service check-ins. The group said transport secretary Alistair Darling had upheld a decision to allow bmi to begin flights from Heathrow to Mumbai - details of which would be announced shortly.

BA passenger numbers up but market still tough
By Michael Smith

LONDON, March 3 (Reuters) - British Airways Plc reported slightly higher passenger numbers in February as lucrative first and business class travel continued to recover, but the company said pressure remained on fares.

BA, Europe's second largest airline, said passenger traffic in February - one day shorter than in the 2004 leap year - rose 1.4 percent and premium travel climbed 6.8 percent.

"It is a continuation of past months where we have a seen a reasonable premium performance and an overall load factor improvement," BA head of investor relations George Stinnes told reporters on a conference call.

BA shares were down 0.2 percent at 275-3/4 pence at 1536 GMT but outperformed most other major European airlines, which fell as oil prices hit fresh four-month highs.

Stinnes said he expected premium traffic to stabilise at levels similar to the February numbers, but added that market conditions remained unchanged as stiff competition puts the squeeze on ticket prices.

"Business continues to be tough and one is fighting for every passenger," he said.

BA said it carried 7.82 million passengers in February, compared with 7.71 million a year earlier.

Its February load factor - an indication of how many seats were filled on flights - rose two points to 70.8 percent from a year ago.

Low-cost rival Ryanair earlier reported a 13 percent increase in February passengers to 2.12 million.

Record fuel prices almost halved BA's third-quarter profits, but the carrier raised its forecasts for revenues to improve 3.0 to 3.5 percent in the year to the end of March.

BA has been forced to cut fares amid tough competition from low-cost rivals, and it has added fuel surcharges to partly offset high oil prices.

A continuing improvement in premium travel in recent months has helped offset some of the damage, but the company remains cautious on yields - average revenues per passenger.

BA holds an annual investor day next week when it is expected to comment on its expectations for the next financial year ending-March 2006 for the first time.

it's good to see that most of the news are pretty good, specially from the UK countryside cities that are growing faster and earning new routes.

:okay:


about London the new Heathrow terminal looks pretty nice, and as some routes are cutted others are established, so that's good.

Aberdeen airport to open 24 hours
4 March 2005
Airline Industry Information

The councillors of Aberdeen, Scotland have voted to allow the city's airport to remain open 24 hours a day.

The application from the airport management was reportedly approved by a narrow majority and will end the current 2330 closing time of the airport. The closing of the airport at night has caused disruption for scheduled flights and for British Airways alone it has meant 38 flights being cancelled or diverted to other airports over the past two years, the online edition of The Scotsman reported.

The airport management also revealed that two budget airlines have been waiting to start discussions regarding flights to and from the airport as a result of the decision.

Black ice and more snow bring chaos, but a thaw is on horizon
Liz Chong
5 March 2005
The Times

SUB-ZERO temperatures, heavy snowfalls and power failures made thousands of people across the country stay at home yesterday.

Airports had to cancel and delay flights because of snow-blanketed runways and motorists encountered traffic chaos as major roads were closed by police.

Temperatures dropped as low as -8.5C (16F) in Redhill, Surrey, and areas of Kent experienced their thirteenth consecutive day of snow. London was among the hardest hit.

Forecasters gave warning of more snow during the weekend before a thaw early next week.

Schools across the country stayed closed yesterday and many parents joined their children at home to avoid the treacherous commute to work.The poor driving conditions claimed the life of a 19-year-old man early on Thursday morning after an accident on the M2.

Police are also investigating the death of Shelley Whitfield, 21, who is believed to have frozen to death as she walked home in Co Durham on Tuesday night. Her body was discovered in a snow-covered field. A care assistant in her fifties is seriously ill in a Dorset hospital after she was overcome by hypothermia on Wednesday evening. She lay on a common for 18 hours before being discovered.

British Airways cancelled 44 flights at Heathrow and other European airports yesterday, while Luton and Stansted airports closed in the morning as runways were cleared of snow and aircraft de-iced. Motorists in Kent encountered black ice on roads and stretches of the M20 were closed to allow lorries to queue for Channel crossings. Cars were diverted on to the A20.

A Network Rail spokesman said no lines had been closed but added that services were running slower, especially in the South East and East Anglia.

In Kent, where snowstorms in the past two days have left some areas under 8in (20cm) of snow and some villages without electricity, pupils started returning to school.

The Met Office is predicting that the country will return to more familiar rainy weather next week.

Sunday March 6, 7:51 PM
UK PRESS: BA CEO Rod Eddington To Leave Airline In Summer

LONDON (Dow Jones)--British Airways PLC (BAY.LN) Chief Executive Rod Eddington is set to leave the flagship U.K. airline as early as this summer, said the Sunday Times and Observer newspapers.

He will leave this summer to return to his native Australia and concentrate on his three non-executive directorships, the newspapers said.

The exact timing will depend on BA Chairman Martin Broughton finding a suitable successor.

The Observer said the three potential candidates are Cathay Pacific (0293.HK) Chief Operating Officer Tony Tyler, James Hogan who runs Gulf Air and the former head of Aer Lingus (AEL.YY) Willie Walsh.

"We haven't announced anything and are not in a position to announce anything," said BA spokesman Paul Parry. "We don't know when Rod Eddington is going to leave BA, if he is at all. In terms of the possible replacements, anyone could come up with that list, it's a who's who of the aviation industry," he said.

British Airways names Willie Walsh as new chief executive

LONDON, March 8 (AFP) - British Airways announced Tuesday the appointment of Irishman Willie Walsh, the former chief executive of Aer Lingus, as replacement to BA's departing chief executive Rod Eddington.

Australian Rod Eddington, 55, would leave the British flag carrier at the end of September, while Walsh would join BA on May 3 and become chief executive following Eddington's departure.

Willie Walsh -- a 43-year-old former pilot -- resigned his post at Irish airline Aer Lingus at the end of January.

"Willie has an outstanding reputation in the airline industry around the world for the way in which he transformed the fortunes of Aer Lingus from a high-cost underperforming carrier into a successful and profitable entity," said BA chairman Martin Broughton.

Rod Eddington -- whose departure has been on the cards for several months -- arrived at BA in May 2000 and has taken the airline through one of the most testing periods in its history.

He steered BA through the slump in air travel following the September 11, 2001 terrorist attacks in Washington and New York, the war in Iraq and the Asian SARS crisis.

"Many commentators have rightly said that Rod Eddington will be a hard act to follow but I am completely confident that in Willie we have captured the very best person for the job," Broughton added.

"Rod has performed miracles at BA and he will leave us with the best wishes of the board, the workforce and our shareholders."

Manchester Airports Group says Feb traffic up 6.14 pct
09 March 2005

LONDON (AFX) - Manchester Airports Group (MAG), the UK's second largest airport operator after BAA PLC, said its four airports handled 1.7 mln passengers in February, an underlying increase of 6.14 pct when the fact that 2004 was a leap year is taken into account.

MAG, which is local authority owned, comprises airports at Manchester, Nottingham East Midlands, Humberside and Bournemouth.

The group has handled 27.1 mln passengers over the last 12 months, an increase of 6.5 pct over the previous 12 months.

Earlier, BAA PLC, operator of seven UK airports including Heathrow, Gatwick and Stansted, said it handled 9.6 mln passengers in February, an underlying increase of 4.8 pct.

BAA Feb Traffic Up 0.8% On Yr
09 March 2005
Edited Press Release

LONDON (Dow Jones)--BAA said Wednesday that its U.K. airports handled 9.6 million passengers in February, an increase of 0.8% over the same month last year.

The underlying trend is distorted by the additional leap year day in 2004. Stripped of the extra day, the underlying increase for February 2005 is 4.8%.

On the same like-for-like basis, excluding the extra day in 2004, key markets performed well. The strongest growth was on Other Long Haul routes where traffic increased 9.5% while North Atlantic markets added 5.1%.

Low cost travel continued to benefit Irish and European scheduled routes with Irish traffic growing 8.6% and European scheduled traffic rising 5.4%. Domestic traffic grew 1.3% while European charter traffic continued to decline, falling 4.4% against the previous year.

On a like-for-like basis, Heathrow was up 3.3%, while Gatwick's strong scheduled markets offset the weak European charter market to provide an overall increase of 9.5%. Stansted rose by 4.0% and Southampton by 2.2%.

In Scotland like-for-like results showed strong scheduled traffic offset weak charter markets to give an overall increase of 4.3%. Glasgow's like-for-like result was 3.7% higher, while Edinburgh was up 3.2% and Aberdeen up 9.8%.

In total, air transport movements at BAA airports increased 3.1% on a like-for-like basis (0.1% lower when compared against a 29 day February 2004), while cargo tonnage increased 1.3% (2.7% lower against a 29 day February 2004).

British airline bmi to fly to Saudi Arabia
10 March 2005

LONDON (AP) - British airline bmi PLC said Thursday it will start flying from London to Saudi Arabia this summer.

The announcement came two months after British Airways PLC said it was stopping flights to the Middle Eastern nation for commercial reasons.

The bmi flights will leave from London's Heathrow Airport for the Saudi capital Riyadh three times a week from the middle of the summer, the airline announced. The carrier mostly operates internal flights and services to Europe, North America, the Caribbean and South Africa.

BA said in January it would suspend flights between Heathrow and the Saudi cities of Jeddah and Riyadh from March 27 because of reduced passenger demand.

BAA lifted as winter fares lure passengers
Angela Jameson
10 March 2005
The Times

A WINTER price war between airlines contributed to a 4.6 per cent increase in air traffic last month at airports operated by BAA.

About 9.6 million passengers passed through airports such as Heathrow, Gatwick and Stansted last month as the airlines fought to attract passengers.

Long-haul travel to destinations outside North America was the best performer -up 9.5 per cent -as the booming economies of Asia and the Middle East encouraged more business travel.

Budget flights to European destinations were also popular.

The strong passenger figures were in line with those reported by the low-cost airlines easyJet and Ryanair and those announced for February by British Airways.

BAA has flagged slower passenger growth in its next financial year, which begins in April, as the rate of new people travelling falls from recent highs.

BAA said in January that its performance in the three months to the end of March, its fourth quarter, would hinge on how aggressively airlines marketed cheap fares and competed over the Easter holiday this month.

All BAA's airports recorded gains, with Heathrow up 3.3 per cent, Gatwick rising 9.5 per cent and Stansted adding 4 per cent on an underlying basis.

BAA's three Scottish airports saw a like-for-like increase of 4.3 per cent to 1.26 million passengers, while traffic through Southampton airport rose by 2.2 per cent to 109,100.

A price war on budget travel to the Irish Republic, after easyJet launched new flights to the home turf of rival Ryanair, helped traffic to accelerate by 8.6 per cent last month.

A whiff of Wapping? British Airways
12 March 2005
The Economist

The man who rescued Aer Lingus becomes boss of British Airways

BRITAIN'S newspaper industry changed for the better when Rupert Murdoch broke a labour stalemate by moving the Times from London's Fleet Street to Wapping, a new site in the city's Docklands. The move, a mere few miles, was more symbolic than geographic. It enabled the Times to leave behind the over-manning and ancient working practices that had brought most of the country's national newspapers to their knees. Other newspaper proprietors soon followed. Will British Airways (BA) “do a Wapping” as it moves its operations at London's Heathrow airport to Terminal Five when it opens in 2008?

That may be the message behind BA's choice this week of a new, young chief executive. Willie Walsh (pictured), aged 43, a former pilot, made his name by converting Aer Lingus from a deadbeat, state-owned flag-carrier into a profitable low-cost airline. He slashed costs, cutting one-third of the Irish airline's workforce. BA has already shed more than 13,000 jobs since 2001 and cut costs by £1 billion ($1.9 billion) a year. But the departing chief executive, Rod Eddington, wants another £300m squeezed from running costs in the next couple of years (details were being outlined to investors as The Economist went to press).

Last year a team of BA executives spent months studying how to change working practices, and when. Mr Eddington, who hands over to Mr Walsh in September, concluded that, ideally, the changes should be made before moving to Terminal Five, as the logistics of moving will be hard enough on their own.

Mr Walsh will inherit the task of changing the culture of BA's ground staff and support operations. There have been problems with absenteeism and time-keeping. The aim is to shorten aircraft turn-round times and to have a more flexible team in the terminals so that in quiet periods employees are not sitting around doing nothing. There could be more outsourcing. Change will not be easy, given the tendency of BA employees to strike. But Mr Walsh, in the words of someone who knows him well, sees airline management as constant guerrilla warfare with the unions.

BA sold its own low-cost carrier to concentrate on fighting the likes of easyJet and Ryanair by using some of their techniques (internet booking, cheap off-peak fares) in its short-haul network. Its European business went from a £300m loss to break-even, as BA's operations at Gatwick were trimmed drastically.

Mr Walsh will inherit an airline ten times the size of Aer Lingus and with a premium long-haul business as well as short-haul. Unlike Mr Eddington, his background is entirely in the public sector. Although Mr Eddington steered BA profitably through the multiple crises that all airlines have faced in the past four years, the going is still tough. American long-haul competitors and European rivals have all enjoyed huge government support; BA is subsidy-free. In the past, most of BA's profits have come from its transatlantic service. But American carriers, such as United Airlines, sheltered from creditors in Chapter 11 bankruptcy protection, are adding capacity and driving down prices, while many premium business passengers, since Concorde was grounded, have discovered the joys of time-sharing corporate jets.

British Airways predicts revenue growth despite rising fuel costs

LONDON, March 10 (AFP) - British Airways predicted modest revenue growth of three-four percent, despite a rise of 300 million pounds (435 million euros, 577 million dollars) in its fuel bill for 2005/2006, chief financial officer John Rishton said Thursday.

"We continue to see the modest gradual recovery of revenue that we've seen this year (to end-March 2005)," Rishton said in a teleconference.

However, fuel costs at the British flag carrier would be "about 300 million pounds" higher in 2005/06 compared with 2004/05, despite the airline being just under 50 percent hedged (for 2005) at around 37 dollars a barrel.

Airlines have tried to protect themselves against high oil prices by contracting to buy fuel at set prices.

"Fuel is the major cost head wind for us and I think for the industry next year," Rishton said.

Yields, or average fares, would remain "about flat" compared with the current year, while seat factors -- passengers as a proportion of the number of seats available -- would "continue strong", he added.

BA expected capacity to grow by three percent, reflecting an increased use of the group's fleet of aircraft.

British Airways announced last month a 40-percent fall in third-quarter profits after being hit by soaring fuel prices.

The group made a pre-tax profit of 75 million pounds in the three months to the end of December compared with 125 million pounds during the same period in 2003.

The airline's capital expenditure in 2005/06 was expected to be broadly similar to that in 2004/05 at less than 400 million pounds, while BA expects 3.0-3.5 percent growth in revenue for its fiscal year ending March 31.

Rod Eddington, BA's Australian chief executive, said the airline's operating margin for 2005 would exceed the 5.4 percent achieved the previous year -- but would remain short of their goal of a 10-percent margin.

That would require more favourable trading conditions, he said.

"I've always said that we needed at worst some still air and maybe a little bit of help," said Eddington, who will be replaced by Irishman and former Aer Lingus chief executive Willie Walsh in September.

"We still have stiff head winds on the fuel front, our second-largest cost item. We're still a long way away from still air and we don't have anything that looks like a tailwind."

The airline was meanwhile on track to deliver 450 million pounds of annual cost savings by the end of March 2005, and 300 million pounds' worth of savings by March 2006.

Eddington to place merger with Iberia in new BA boss's in-tray
Clayton Hirst
13 March 2005
Independent On Sunday

British Airways chief executive Rod Eddington has raised the prospect of a full-blown merger with Iberia sometime next year.

The airline boss, who will retire to his native Australia in September, said that a tie-up with the Spanish carrier could be one of the first big jobs for his successor, Willie Walsh, who was named last week.

But Mr Eddington said that a merger would only happen if talks between Europe and America to free up the international airline market were successful

He said: "When there is genuine liberalisation in the north Atlantic then there is a real opportunity to acquire. Iberia is well managed and well run. We have made no secret of our admiration for them. But it would be wrong to take the view that [a merger] will happen on my watch."

The current international airline rules prevent carriers changing their nationalities. With these restrictions in place, BA would be unable to buy more than 50 per cent of Iberia and merge routes as it would in effect become a British company.

In September 2003 Air France and KLM tied up, but the two airlines are still run as entirely separate businesses, so they don"t break the rules. Mr Eddington said that he saw no benefits in doing a similar deal with Iberia.

With the US presidential elections out of the way and new blood in the European Commission, there is renewed optimism that a deal can be brokered on opening up the airline market. "I hope there will be a sensible resolution this year or next," said Mr Eddington.

His successor, Mr Walsh, the former boss of Aer Lingus, will join as chief executive designate on 3 May. While BA is the world"s most profitable airline, the two men will focus on ways to cut £300m out of the company"s cost base by 2007.

Since August 2001 BA has cut 13,000 jobs, and it is now expected to make further redundancies. Mr Eddington refused to be drawn on numbers, but he said: "The process of talking to the workforce and the unions is already under way."

Heathrow workers balloted over strike
16 March 2005
Airline Industry Information

Baggage handlers at London's Heathrow Airport are being balloted on possible strikes in a dispute over contracts, the Transport and General Workers Union (TGWU) has said.

The results of the ballot by nearly 800 workers are expected to be known later this week.

The dispute at Heathrow was sparked after baggage handlers and other workers were transferred from Swissport to Aviance, which provides ground handling services. According to the TGWU 70 workers were transferred on different pay, terms and conditions from existing staff, which led to concerns about a two-tier workforce. Talks will be held on Wednesday (16 March) aimed at solving the dispute and avoiding chaos at the airport over the busy Easter period.

BA chief to advise on long-term priorities
Barrie Clement
17 March 2005
The Independent

ROD EDDINGTON, the departing chairman of British Airways, is to advise the Government on Britain"s long-term transport needs and priorities, the Chancellor revealed.

Mr Eddington, who is due to leave the airline this year, will advise on the impact of transport decisions on productivity, stability and growth and on longer-term priorities.

Officials insisted that Mr Eddington"s brief would not cut across the functions of the advisory Commission for Integrated Transport which would continue to evaluate the direct impact of schemes and how all the different transport modes fitted together.

Mr Eddington, 55, who has spent much of his career in the airline industry, plans to retire from BA in September after becoming its chief executive in April 2000.

Mr Eddington intends to spend a few months touring Devon, Cornwall, the Lake District and the Wash before returning to his native Australia early next year. Willie Walsh, a former chief executive of Aer Lingus, will take over at British Airways, Europe"s third-largest airline.

The Transport Secretary, Alistair Darling said Mr Eddington would "bring a fresh eye and business expertise" to the issue of long-term investment.

The Government has only recently updated its 10-year transport plan and officials said Mr Eddington would not be reviewing existing plans so much as bringing a fresh perspective. He would work directly with Mr Darling and Mr Brown.

Mr Eddington said: "I am excited to be asked by the Government to lead this work as I know that transport infrastructure is incredibly important to people"s lives.

"My energy and work for British Airways will be undiminished and will not conflict with my new role for the Government."

The Future of Transport White Paper published last July set out a strategy for the next 30 years following the Government"s rail review, which introduced radical changes to the structure of the industry, and the road pricing feasibility study which backed the long-term introduction of tolls.

Officials said the proposals were already being taken forward through major projects such as Crossrail, the Government"s strategic road programme, and the Railways Bill. Ministers needed to understand the long-term impact that future transport decisions would have on productivity, stability and growth.

British BA Expands Offer from Polish Krakow-Balice Airport to London
18 March 2005
Polish News Digest

British Aiways (BA) will expand its flight offer from the Polish airport Krakow-Balice to London in 2005, the company said on March 17, 2005.

BA will fly from the Krakow- Balice airport to London's airport Gatwick each weekday from the end of March 2005. BA uses a 147-seat Boeing 737-400 to fly the route.

The airline will also introduce special package for young people and will offer cheaper one-way tickets for its passengers.

Currently, BA is the sole traditional airline offering flights from the Krakow-Balice airport to London after Polish traditional air carrier PLL LOT supended its flights on the route. London is the most popular destination among travellers flying from the Krakow-Balice airport. Besides BA, three low cost carriers, Centralwings, a subsidiary of PLL LOT, Slovak SkyEurope and UK-based easyJet, offer flights from Krakow to UK. Centralwings flies to the Gatwick airport, SkyEurope to Stansted and easyJet to the Luton airport.

All carriers flying to London from the Krakow-Balice airport offer together 1,000 seats a day. BA is not afraid of rivals and despite the expansion of discount airlines in Poland, the number of BA passengers in the country increased by 15 pct year-on-year in 2004, BA said.

The cheapest return ticket, airport tax excluded, offered by BA from Poland to the UK is 380 Polish zloty ($124.4/93 euro).

www.biznespolska.pl
Source: Biznes Polska

Ryanair boss hits out over £4 billion 'marble palaces'
Tess McDermott
17 March 2005
Newsquest Media Group Newspapers

RYANAIR boss Michael O'Leary has pledged to fight all the way to the courts if necessary to stop BAA "wasting" billions on Stansted's second runway.

The chief executive of Stansted's biggest customer said: "We fully support building a second runway at Stansted. But we just won't support throwing away £4 billion on a marble palace. The airlines think they should spend £150m and no amount of time is going to convince us that wasting £3.85 billion is a good idea."

He added: "There's no prospect of a £4 billion runway being built at Stansted when most of the customers are against it. If we can't stop it at the regulatory stage then we'll oppose it at the planning stage, and if that doesn't work then I'm willing to take this fight all the way to the courts."

Mr O'Leary described the billions of pounds allocated to spend on new road and rail infrastructure to the airport as unnecessary, saying: "I have no doubt people would walk bare- foot through the fields to fly from Stansted if a new runway is built."

He said the high cost of the project would mean a doubling in airport charges and a knock-on increase in the price of passenger tickets .

He said: "People may not care now if the costs of their flights are going to go up some time in 2008-2016, so someone has to fight on their behalf."

He blamed the £4 billion price tag on a lack of competition in the industry and called on the Government to break up the monopoly which BAA has at London's three largest airports, Stansted, Gatwick and Heathrow.

He said: "If there was competition then the runway would be built for £150m and that would be that. You've got to have competition."

He denied that growing Ryanair traffic from Gatwick and Luton signalled a withdrawal from Stansted by the no-frills airline.

He said: "Stansted is our main airport for London. Stansted is stronger than ever. It's got to the stage that almost nothing we do would reduce bookings to Stansted. We're just tapping into other markets in London."

A BAA Stansted spokesman said: "While final costs of the runway project are still to be determined we broadly agree with the Government's estimates of £4 billion for an airport to serve 80 million passengers a year. This includes terminal buildings, airfield facilities and major road and rail improvements, not simply just a runway.

"We will keep the costs to a minimum and are confident we will build a runway, and its supporting infrastructure, that will represent value for money for all our airline partners, both now and in the future.

"We look forward to working with Ryanair in the future and continuing the very successful relationship that has allowed both Stansted Airport and Ryanair to become major forces within the aviation world."

British Airways expected to raise fuel surcharges
Nick Fletcher
21 March 2005
The Guardian

British Airways is likely to raise fuel surcharges on its passenger tickets within the next couple of weeks in the wake of oil prices hitting new peaks.

The increase would come after similar moves at the end of last year, and is likely to be followed by rivals such as Sir Richard Branson's Virgin Atlantic.

The BA surcharge was introduced last May and set at pounds 2.50 a flight . This was raised in October to pounds 10 for long haul flights and pounds 4 for short haul, at a time when oil was at $53 a barrel. Last week crude prices reached a record $57 despite the Opec oil producers agreeing to pump an extra half a million barrels a day, with the expectation of further production increases to come.

"We keep a close eye on the price of oil and will adjust our surcharge levels when and where it is appropriate to do so," said a spokeswoman for British Airways yesterday. It has recently raised its fuel surcharge for freight customers by 3p to 23p a kilo, and an increase of about pounds 3 on a passenger ticket is expected.

A spokesman for Virgin Atlantic said: "Fuel accounts for more than 20% of our costs and if the oil price continues at this high level we'll be actively reviewing our position.

"There have been no decisions taken one way or the other to vary the level of surcharge, but it is under review."

Earlier this month, BA warned that high oil prices will boost its fuel bill by about pounds 300m to almost pounds 1.5bn in the year to March 2006. In November the company said surcharges would recoup some pounds 160m of costs.

Despite the rising fuel costs and increasingly tough competition, British Airways is expected to report record profits of more than pounds 525m in May, the last full year figures to be announced by departing chief executive Rod Eddington.

Mr Eddington is to leave the airline in September after nearly five years, and return to his native Australia. He is being replaced by Willie Walsh, the former chief executive of Aer Lingus.

Tories back Europe-wide tax on aviation fuel
Airlines say environment strategy will cost party votes
Andrew Clark - Transport correspondent
21 March 2005
The Guardian

The Conservatives intend to put the brakes on Britain's boom in low-cost air travel by pushing for a Europe-wide tax on aviation fuel, which could lead to as much as pounds 7 being added to the cost of airline tickets.

In an interview with the Guardian the shadow transport secretary, Tim Yeo, outlined environmental measures that will alarm airlines.

He questioned the justification for flying between London and Scotland, and said he would impose stringent financial obstacles to the construction of a new runway at Stansted airport.

Environmental organisations have long argued for a tax on aviation fuel in order to force airlines to pay for the damage they cause in harmful emissions and climate change.

Ministers from France and Germany last month suggested a Europe-wide tax of euros 300 (pounds 208) per tonne of aviation fuel, which would add between euros 5 and euros 10 (roughly pounds 3.50 to pounds 7) to every fare, with the proceeds to be channelled towards aid for Africa.

Tony Blair opposed the measure, telling MPs that he would not "slap some huge tax on cheap air travel".

In his first detailed comments on aviation policy, Mr Yeo said: "If I was in office on May 6 I would want to straight away talk to my colleagues in Europe about how we could make progress towards a fuel tax. Aviation has to take account of its environmental impact to a greater extent than it has done in the past."

His remarks were attacked by EasyJet, which said a tax would disproportionately hit travellers on a tight budget.

Its spokesman Toby Nicol said passengers already paid pounds 5 air passenger duty on every short-haul flight, which was roughly equivalent to a 100% tax on fuel.

"The idea that airlines don't pay an environmental tax already is ridiculous," he said. "Going out to the public six weeks before an election and saying, 'I want to make air travel more expensive,' is a surefire vote loser."

British Airways and other big carriers argue instead for an emissions trading scheme, under which airlines would trade "permits" for pollution.

They say this would be a better incentive towards less-polluting fuel; and they add that the objectives of a fuel tax could be foiled by airlines filling up with vast quantities of cheap fuel in the US and emitting more pollution as they carry it across the Atlantic.

Environmentalists privately suggested that the Conservatives wanted to reach out to voters in rural areas around airports, who were worried about the government's plans for runway development.

Mr Yeo's South Suffolk constituency is close to Stansted. He said he would make it difficult for BAA to expand the airport by preventing it from "cross-subsidising", using funds from Heathrow and Gatwick.

But Friends of the Earth's aviation campaigner Paul de Zylva said: "I think the public is increasingly recognising that it is absolutely absurd for airlines to get away with paying less than 20p a litre for jet fuel."

The group wants the duty to be set at the same rate imposed on petrol for motorists, which, if translated to ticket prices, would put pounds 20 on a short-haul journey and up to pounds 120 on a transatlantic flight.

Passenger numbers on flights between Britain and the rest of Europe went from 51m in 1993 to 97m in 2003.

Mr Yeo said he wanted airlines to print information about environmental emissions on every ticket. He said: "No one can say they are serious about being interested in addressing climate change without addressing aviation.

"If you are going to go from London to Glasgow the environmental impact is often less if you drive."

BA to increase fuel surcharge due to soaring oil prices

LONDON, March 22 (AFP) - British Airways announced Tuesday that it would increase the fuel surcharge on all of its flights due to continuing high oil prices.

The increase in the surcharge -- designed to compensate for the rising cost of fuel -- would take effect from March 28, the British flag carrier said.

"Our fuel bill next year is expected to be an extra 300 million pounds. With (oil) prices continuing to rise, a surcharge increase is regrettably unavoidable," said BA's commercial director Martin George.

The surcharge on long-haul flights would rise to 16 pounds (23 euros, 30 dollars) from 10 pounds per one-way flight, while on short-haul flights it would rise to 6 pounds from 4 pounds.

It was the third time that British Airways has increased the so-called "fuel tax", first introduced in May 13, 2004, to offset the effects of rising oil prices. It has since increased twice in August and October.

In late afternoon trade, BA rose 0.85 percent to 266.5 pence, while the FTSE 100 index of leading shares added 0.08 percent to 4,937.30 points.

British tycoon Richard Branson's Virgin Atlantic also announced Monday that it would raise its fuel surcharge from 10 to 16 pounds per one-way flight.

"As a longhaul carrier our fuel costs represent a higher share of our costs at current prices of around a quarter," a spokeswoman for Virgin Atlantic said, adding that the charges would be kept under review.

World oil prices have now more than doubled since early 2002, reaching historic high points last week as markets worried about whether crude oil supplies would be adequate to meet surging global demand.

New York's main contract, light sweet crude for delivery in April, jumped to a fresh record of 57.60 dollars per barrel last Thursday.

And in London the same day, the price of Brent North Sea crude oil for delivery in April peaked at 56.15 dollars per barrel -- the first time it has broken the 56-dollar barrier.

BA's financial director, John Rishton, said earlier this month that the airline's fuel costs would be "about 300 million pounds" higher in 2005/06 compared with 2004/05, despite the airline being just under 50 percent hedged (for 2005) at around 37 dollars a barrel.

"Fuel is the major cost head wind for us and I think for the industry next year," Rishton said.

British Airways announced last month a 40-percent fall in third-quarter profits after being hit by soaring fuel prices.

The group made a pre-tax profit of 75 million pounds in the three months to the end of December compared with 125 million pounds during the same period in 2003.

Britons take to the skies for Easter holiday

LONDON, March 23 (Reuters) - Record numbers of Britons were expected to jet away for the Easter weekend, airport operator BAA said on Wednesday, while those opting to holiday at home will likely suffer a typically British fate - cloudy skies.

The United States and Spain were among the most popular choices for some 1.9 million air travellers seeking sun and fun over the Thursday to Monday holiday period, BAA said.

Closer to home, destinations in Eastern Europe including Bratislava in Slovakia, Prague in the Czech Republic and Budapest and Hungary, were increasingly popular.

BAA said it expected Thursday to be the heaviest day of air travel with some 440,000 passengers passing through its airports, which include London's Heathrow.

Tourism chiefs said thousands more were planning cross-channel getaways to France, bringing the total number of Britons escaping for the Easter holiday to well over 2 million.

To help motorists dreading long traffic jams, the Highways Agency said it would suspend roadworks at more that 70 spots in England and delay new projects until after the holiday weekend.

Engineering work would mean delays and replacement bus services for several rail lines, however.

A Met Office spokesman said Friday would deliver the best holiday weather across the UK, with conditions generally worsening over the weekend

"While Friday will be mostly warm and sunny with above average temperatures, the weekend will see increasing cloud and rain in many parts by Monday," the spokesman said.

"Though it won't be the best holiday weather, especially compared to the good weather we've recently enjoyed, temperatures should stay at least the average across Britain," he added.

View from the top - Virgin upgrades IT for the long haul
James Watson
24 March 2005
Computing

Airline is deploying a range of technology initiatives to gain competitive advantage.

Since its launch in 1984, Richard Branson's Virgin Atlantic Airways has used innovative services focused on improving the passenger experience to differentiate from its rivals.

At the end of the 1980s, Virgin became the first airline to offer individual TV screens to passengers in business class. Today, an onboard entertainment system streams movies on demand to individual seats, for all passengers, from a central server.

'We think it's a winning formula for long-haul travel, so we continually upgrade our systems,' says IT director Simon Fox.

The airline's v:port system, already installed on 13 of its 31 planes, even lets passengers play games, such as trivia quizzes, with each other.

But IT initiatives often have to overcome competing business proposals to get the go-ahead.

'The business demands what projects are done, so IT competes against things such as new seats or planes,' says Fox.

Although the airline is excited about the prospect of in-flight wireless broadband, for instance, it baulks at the cost of providing it. While two rival technologies are gaining a grip in the market, neither are particularly cheap.

'It's coming, but it's expensive,' says Fox. 'We will innovate, but in specific areas such as passenger services, rather than in back-office functions.'

This is not to say that the airline doesn't try to be as competitive as possible. While the threat of low-cost carriers isn't as great in the long-haul market in which Virgin operates, Fox says competition on certain routes is just as intense.

'On the route between London and New York, you have Virgin Atlantic, British Airways, United Airlines and American Airlines. It's a bloodbath,' he says.

As a result, Fox is deploying a range of initiatives, from e-tickets to self-service check-in kiosks, and says the airline is already halfway through rolling out e-tickets to all passengers, and hopes to completely kill off paper ticketing in the next 12 to 18 months. 'We're pretty aggressive about this,' he says.

The more difficult step is linking its e-ticketing systems with other airlines, so if a passenger books a journey involving more than one carrier, the ticket will remain valid throughout.

Progress has already been made, with ticketing between carriers recently launched with Continental Airlines.

In the past 12 months, Virgin has also invested in an online check-in service, and recently launched self-service check-in kiosks (Computing, 20 January).

Rather than take on the expense of providing kiosks in every destination, Fox has ensured his systems are compatible with standards set by the International Air Transport Association (IATA), allowing Virgin to share kiosks with other airlines in airports around the world.

'The reality is that we can't put kiosks in, say, Sydney, so being based on standards is key for our rollout,' he says.

Radio frequency identification (RFID) is another technology being watched closely by the company, although there are currently no plans for its adoption.

'RFID has the potential to revolutionise bag handling, and in due course it will happen,' says Fox. 'It's also relevant for aeroplane spares, a very taxing activity.'

Outside these processes, Fox devotes much of his attention to building better systems for communicating with the company's 8,000 staff.

'We need to modernise how we interact with our employees. The challenge is that many of our staff never come into an office, so we rely primarily on sending them letters. IT has to try to solve that problem,' he says.

Much of the technology is already in place, with a company intranet, HR self-service, and email access already online.

The remaining challenge is to add applications relevant to all staff, and to support employees that aren't comfortable online.

But the airline's transformation doesn't end there.

'We need to do more. We're at the beginning of this process, not the end,' says Fox.

'The worldwide travel system works terrifically well, but there's a big blot on check-in processes, which are based on legacy systems that we're trying to kill off.'

The big question is establishing when these legacy reservations, inventory and departure control systems can be switched to next-generation offerings from vendors such as Amadeus, SITA and Sabre.

The new systems offer a wide range of exciting features, but making a mistake with such fundamental components could bring the airline to a halt.

'Current passenger systems are based on 1960s technology, but they work fantastically well, with response times ahead of most new technology,' says Fox.

Virgin's current goal is open-ended, with a general plan to switch over sometime between 2007 and 2010.

Until then, passengers will have to make do with the airline's 64-channel entertainment system and the 300 hours of movies and television available onboard.

Busy Heathrow comes bottom for punctuality
Andrew Clark Transport correspondent
24 March 2005
The Guardian

Holidaymakers and travellers faced more frustration than ever at Heathrow last year as the international hub delivered its worst punctuality performance on record.

Just 68% of takeoffs and landings were either on time or within 15 minutes of schedule in 2004, providing ammunition for critics who say the airport is overstretched and needs a new runway.

According to the Civil Aviation Authority, punctuality for flights at airports nationwide slipped by 1% to 75% for scheduled flights and by 4% to 70% for holiday charters.

Heathrow performed worst out of Britain's 10 main international airports, with a year-on-year drop of 5%. London City came top with 82%.

Heathrow's dismal performance, its worst since CAA records began in 1992, was partly due to a staff shortage at British Airways last summer which caused the cancellation of dozens of flights and delays to hundreds more. The airport also struggled to cope with winter snowfalls and autumnal storms.

CAA figures showed the average scheduled flight at a British airport was delayed by 14 minutes, with charters put at 23 minutes late.

Passengers for Lisbon, Toronto, Warsaw, New York and Budapest suffered the worst delays on scheduled flights, while Tenerife was the worst for holiday destinations, with a third of flights late.

Regional terminals typically fared better. Among the most timely were Birmingham and Newcastle, which 80% punctuality for scheduled flights. Edinburgh scored 74% for scheduled, 67% for charter.

* A leading consumer group yesterday attacked the number of "extras" added by airlines to the price of flights. The Air Transport Users' Council said advertised fares were often misleading because they left out taxes, booking fees and charges.

New Gatwick runway plan
Dominic O'Connell
27 March 2005
The Sunday Times

BAA will this week unveil proposals for a new runway at Gatwick, Britain's second- busiest airport, as part of a 25-year master plan for the southeast hub. The airports group is barred from building a second runway at Gatwick until 2019 by a legal agreement with local councils. But last year ministers asked it to investigate construction as part of a white paper on airports policy.

BAA is expected to identify a range of options for a new runway in a consultation document to be released on Tuesday.

The proposals are likely to enrage anti-airport protesters and local residents.

The company will stress it has made no commitment, and is complying with the government's request for detailed proposals.

But BAA is also expected to reveal that it has increased the maximum number of passengers Gatwick will be able to accommodate with the current single runway.

The upper limit had been set at 40m and is likely to be raised to 45m. This increase will be achieved by a rejig of terminal buildings and the adoption of new technology that will all but eliminate check-in queues.

It is understood that BAA wants to use Gatwick to try out a number of new technologies and working practices that could greatly speed passenger throughput.

The release of the consultation document is likely to reignite the debate over runways in the southeast. Last year a long-awaited government white paper on aviation chose Stansted, another BAA airport, as the first site for a new runway in the congested region.

Another could be built at Heathrow, provided that air-quality concerns are addressed, with BAA directed to examine options for Gatwick after 2019, and to safeguard the necessary land if the Heathrow plans prove impracticable. Airport protesters have tried to overturn the white paper's findings, but the government fought off a string of judicial reviews in the High Court this year.

One of the grounds for the challenge was the financial viability of the Stansted project. Protesters argued that the low-cost carriers that dominate Stansted would refuse to pay the prices necessary to fund a new runway development.

The housebuilders Laing and Persimmon mounted a legal challenge specific to Gatwick, saying that expansion of the airport could jeopardise plans for hundreds of new homes near the airport.

Airport set for GBP50m makeover
By Martin McKeown
27 March 2005
The Express on Sunday

SCOTLAND'S biggest airport is to undergo a GBP50million expansion to create a larger main terminal.

Glasgow Airport will also have a new international pier able to take bigger planes than it can accommodate at present.

The current international wing - a single pier with arrivals and departure hall in the main building - is set for a dramatic makeover this year. Stephen Baxter, the airport's managing director, said: "We'll have a second pier within 10 years."

The airport has boomed in recent years, mostly thanks to direct links to Dubai in the Middle East, Prague and Philadelphia.

This Easter weekend alone around 109,000 people are expected to take off or land at Glasgow. Over the next 12 months, BAA will invest GBP12million.

Emirates, the Middle Eastern airline which takes passengers to Dubai and beyond, will shortly introduce an extra-large Boeing 777 on its Glasgow flights, by far the biggest plane to operate out of Scotland.

Virgin tackles Terminal Five
By MARK HUBAND
31 March 2005
Financial Times

Virgin Atlantic has signed a memorandum of understanding with BAA allowing it to change check-in facilities at London's Heathrow airport to head-off competition from the new Terminal Five.

Virgin says its passengers at Terminal Three will have a more "intimate" experience during check-in, with the aim of bringing the check-in, security checks, waiting areas and piers to within 200m of each other.

The company's strategy will mean extensive redesigning at Terminal Three. The agreement, which is announced today, will involve extending the check-in area out into what is the passenger dropping-off area. The building work will be designed by Foster and Partners, architects of Stansted Airport.

Virgin Atlantic has been critical of British Airways' extensive access to the new Terminal Five, and is redesigning its facilities to improve passenger through-put in competition with the expected efficiencies from which BA will benefit at the new terminal.

UK air traffic control to shut centre near Heathrow

LONDON, March 30 (Reuters) - Britain's air traffic control body said on Wednesday it planned to close down its operation centre near London's Heathrow airport as part of a 1 billion pound ($1.9 billion) modernisation programme.

National Air Traffic Control Services (NATS) said in a statement it would move 500 staff from its West Drayton centre near Heathrow to its existing Swanwick operations at Fareham in England by 2007.

The move is part of NATS' plan to control UK airspace from two centres at Swanwick and Prestwick by 2010 instead of the existing four.

The partly privatised body is implementing a 1 billion pound investment plan to modernise Britain's air traffic control system and add enough capacity to deal with 3 million flights per year by 2012, up from 2 million in 2003.

NATS was criticised in June last year after a computer failure briefly grounded all aircraft in Britain at peak time in the morning, causing airport chaos.

NATS is 49 percent owned by the British government, 42 percent by a consortium of UK airlines, 4 percent by airport operator BAA Plc (BAA.L) and 5 percent by NATS staff.

All change at Heathrow
Andrew Clark, Transport correspondent
2 April 2005
The Guardian

Virgin Atlantic's cramped check-in area at Heathrow is to be doubled in size through a pounds 50m Norman Foster-designed terminal extension dedicated to the airline.

The development, due to be completed in phases between 2007 and 2012, will include extra desks and a "drive-thru" area for premium passengers arriving in complimentary limousines.

The work will be paid for by BAA, which is under pressure to improve facilities for smaller airlines once British Airways moves to the airport's fifth terminal which is due to open in 2008.

Several carriers including BMI have accused the airport operator of putting them at a disadvantage by leaving them in ageing buildings with facilities inferior to those offered by BA.

BAA this week revealed that it intends to put Star Alliance's 16 airlines, which include BMI, United Airlines and Lufthansa, in a revamped terminal one. Heathrow's terminal two will become an enlarged arrivals hall for terminal one.

Terminal four will be reserved for the SkyTeam alliance - which includes Air France-KLM, Alitalia and Delta. Terminal three will be for unaligned long-haul airlines using the new A380 Airbus superjumbo.

Recent pics of Terminal 5 U/C anyone?

BA says market conditions 'broadly unchanged'
March traffic up 4.5 pct
5 April 2005

LONDON (AFX) - British Airways PLC said market conditions are unchanged as it reported a 4.5 pct increase in March passenger traffic.

'Market conditions remain broadly unchanged,' the flag carrier said in its monthly report.

'All market segments remain price sensitive and yield (average fares) declines are expected to continue.'

BA reiterated previous guidance that revenue in the year to March 2005 will improve 3.0-3.5 pct.

The increase in traffic, measured in Revenue Passenger Kilometres (RPKs), comprised a 1.7 pct increase in premium traffic and a 5.0 pct increase in non-premium traffic.

Passenger capacity, measured in Available Seat Kilometres (ASKs), was 2.2 pct above March 2004.

Passenger load factor -- passengers as a proportion of the number of seats available -- was up 1.7 points versus last year to 75.7 pct.

Cargo, measured in Cargo Tonne Kilometres (CTKs), rose by 1.4 pct.

Overall load factor was up 0.4 points to 70.7 pct.

BA also detailed figures for the fourth quarter to end March. ASKs rose 1.4 pct, with RPKs rising by 4.7 pct -- premium up 6.4 pct and non-premium up 4.4 pct. Passenger load factor was up 2.3 points to 73.0 pct. CTKs rose 2.8 pct.

The airline added that as a result of the yen's depreciation against sterling, there will be a non-cash accounting credit of 8 mln stg in the fourth-quarter financial results. These are due to be announced on May 13.

Last month BA forecast revenue growth in the year to end-March 2006 of 3-4 pct but said it expects to pay 300 mln stg more for its jet fuel compared to 2004/05 due to the high cost of crude.

BA to begin twice-weekly flights to Algeria in June
8 April 2005

LONDON (AFX) - British Airways said it will start flights to Hassi Messaoud

in Algeria from London Gatwick starting from June 7.

The carrier said there will be two flights a week, on Tuesdays and Thursdays, using a Boeing 737.

Robert Boyle, British Airways commercial planning director, said: 'Hassi Messaoud is a centre for oil and gas production and our market research shows that there is a business demand for these services.'

The route becomes British Airways' sixth to start from Gatwick this summer along with Bucharest in Romania, Salonika in Greece, Sofia in Bulgaria, Split in Croatia and Vilnius in Lithuania.

The airline also flies from London Gatwick to the Algerian capital, Algiers, five times a week.

Manchester Airports Group says March traffic up 12.5 pct
11 April 2005

LONDON (AFX) - Manchester Airports Group (MAG), the UK's second largest airport operator after BAA PLC, said its four airports handled 2.0 mln passengers in March, an increase of 12.5 pct compared to the same month last year.

MAG, which is local authority owned, comprises airports at Manchester, Nottingham East Midlands, Humberside and Bournemouth.

The group handled 27.4 mln passengers in the year to end-March 2005, an increase of 6.5 pct over the previous year.

'Low cost-carriers opening new routes continue to fuel growth at Manchester, NEMA and Bournemouth and, along with the start of the summer schedules and an early Easter, has helped deliver excellent March figures,' said finance director Philip Ridal.

'The outlook for the summer is encouraging and we are expecting to handle a record number of passengers.'

Earlier, BAA PLC, operator of seven UK airports including Heathrow, Gatwick and Stansted, said it handled 11.6 mln passengers in February, an underlying increase of 5.0 pct.

Retailers are sold on sites as BAA prepares Terminal 5 for business
Sarah Butler
11 April 2005
The Times

Sarah Butler on the plans for the highly prized shopping units at Heathrow's new Pounds 39bn extension

A GEM of a fact underlines the soaring success of airport retailing: that a fifth of fragrances and 13 per cent of sunglasses bought in Britain are sold either side of the departure gates.

The revelation explains the scramble under way for the mostly highly prized shopping sites at Heathrow's Terminal 5 after BAA, the airports operator, has confirmed plans for up to 150 retail sites.

Britain's airports have already traded nicotine-stained coffee shops for the likes of Chez Gerard and Starbucks, while boutiques such as Hermes and Burberry sit side-by-side with high street staples such as Boots and Dixons.

Colin Hargrave, managing director of BAA Retail, told The Times: "People are arriving earlier at the airport since 9/11. Partly, they are planning for the new security measures, but they are also planning to spend a bit of time shopping once they have gone through security."

BAA, which operates seven UK airports including Gatwick, Heathrow and Stansted, derives more than half its income from retail. It needs the cash to fund the building of new terminals and runways.

So the past few years have seen the company add 750,000 sq ft of retail space by extending existing terminals.

For example a 20,000 sq ft extension to Terminal 1 at Heathrow will open in June, with the first airport store for LK Bennett, the footwear retailer, and BAA's first experiment with signing up a gastropub -the Tin Goose, run by Geronimo Inns. Terminal 5 will add 200,000 sq ft more retail space, bringing the total to about 1.4 million sq ft.

Because space is at a premium in airports, each retailer operates within stores much smaller than their high street equivalent, but sales per sq ft can be many times higher.

One property agent said that retailers could pull in about Pounds 2,000 per sq ft compared with much less than half that for most high street retailers.

Hargrave says: "It's a real learning curve for retailers in their first year. They don't always appreciate the pace and the volume."

But, of course, this volume comes at a price. While basic rents are typically Pounds 100,000 compared with Pounds 350,000 on the high street, retailers must hand over up to 22 per cent of their turnover to airport operators, according to property sources, compared with 10 per cent on high streets.

In addition, the tight space and security conditions imposed by airports mean that operating costs are considerably higher.

There is no space for a stock room, so merchandise must be delivered to the store from an off-site location several times a day, much of it checked through customs.

Some terminals have a web of secret underground passages where staff and merchandise can be checked through completely separately. The whole operation, from security passes to 24-hour staff, is expensive. But retailers say that the payoff is more than worth it.

Several retailers have their highest-turnover stores in airport locations -for example, Fat Face's new site at Gatwick.

The airport is a unique kind of retail environment, which can give would-be international brands a chance to find out which nationalities might appreciate their wares, and the high footfall means that retailers can get an instant reaction to new ideas.

Heathrow, the world's busiest international airport, handles 65 million passengers a year.

BAA collects a huge amount of information on the type of customers passing through and and hands this on to stores so that they can tailor their ranges to suit.

Stores will often change the displays more than once a day to reflect the tastes of the different kinds of passengers arriving. And, of course, each airport terminal also has its distinctive clientele.

At Stansted, for example where 93 per cent of the business is low-cost airlines flying to Europe, BAA has worked with food outlets such as Starbucks and even Caviar House,the upmarket seafood bar, to develop "grab and go" meals that can be eaten on the aircraft, because many budget airlines offer little or no food.

Terminal 3 at Heathrow, which handles mainly long-haul flights, has designer retailers, such as Chanel, as well as high street shops and sit-down restaurants catering to foreign nationals waiting to transfer to different flights.

At Gatwick South, high street brands such as Ted Baker and French Connection cater to families going on holiday.

Terminal 5 will no doubt combine the upmarket and high street brands, but Hargrave says that he wants to try out new ideas as well.

He says that BAA plans to introduce health and beauty services, perhaps including a walk-in clinic or a hairdresser, to see how this appeals to customers.

The Pounds 39 billion, five-storey terminal, with more shopping outlets than Brent Cross, the North London shopping centre (albeit within a smaller space), is expected to open in 2008.

It will serve British Airways flights that currently operate out of Heathrow's terminals 1 and 2.

BAA Handled 11.6M Passengers In Mar
11 April 2005
Edited Press Release

LONDON (Dow Jones)--BAA PLC said Monday that its U.K. airports handled 11.6 million passengers in March, up 7.7% on the same period last year.

The company said numbers were helped by an early Easter holiday. Stripped of the Easter effect, the underlying increase for March is estimated at 5.0%.

For the financial year end March 2005, BAA's U.K. airports handled 141.7 million, an increase of 6.3% against the previous financial year, said BAA in a statement.

European scheduled markets increased 9.7%, helped by a 21.0% increase in passenger numbers carried by low cost airlines.

North Atlantic markets were 3.3% higher and traffic on Other Long Haul routes added 14.1%. Despite the earlier Easter, European Charter markets declined 1.9% reflecting continued competitive pressures. U.K. Domestic routes recorded 4.0% growth.

BAA's U.K. airports each reported increases in March. Gatwick benefited most from the early Easter and recorded the highest growth during the calendar month at 15.4%.

Passenger numbers through Gatwick exceeded 32 million during the financial year, the first time numbers have exceeded 32 million since September 2001.

Heathrow was 5.2% up on the previous year while Stansted increased 9.1%.

Elsewhere Southampton recorded an increase in the calendar month of 11.7% while BAA's Scottish airports recorded combined growth of 3.8%.

The number of air transport movements increased 2.9% in March (+3.5% for the year), while cargo traffic fell 3.3%, reflecting a drop in the number of working days in March. Overall the full year cargo activity was up by 6.7%.

British air traffic rises 7.7 percent in March

LONDON, April 11 (AFP) - British airports operator BAA on Monday announced a 7.7-percent rise in passenger numbers in March from the same period of the previous year, helped by an early start to Easter festivities.

BAA, owner of seven British airports including Heathrow, Gatwick and Stansted, said it handled 11.6 million air travellers last month.

Excluding the effect of an early start to Easter, the underlying annual increase for March was estimated at 5.0 percent, BAA said.

Gatwick, south of London, benefited most from Easter beginning in March rather than April, recording a 15.4-percent hike in passenger numbers -- the highest annual growth of any airport under BAA's wing.

Passenger numbers through Gatwick exceeded 32 million during the year to the end of March -- the airport's highest level since the September 11, 2001 terrorist attacks on the United States.

For the full-year to the end of March, total passenger numbers at all BAA's airports increased by 6.3 percent to 141.7 million.

BAA said that North Atlantic traffic rose by 3.3 percent in March from the same period of the previous year.

Long-haul routes excluding traffic across the North Atlantic surged by 14.1 percent and European scheduled traffic climbed by 9.7 percent.

BAA passenger number growth in Scotland lags UK
KARL WEST
12 April 2005
The Herald

SCOTLAND'S three major airports enjoyed slower growth in passenger numbers last month than BAA's national average 7.7-per cent rise in traffic.

After stripping out the effect of the Easter bank holiday weekend, BAA said the increase was 5-per cent - still higher than February's 4.6-per cent gain.

The airport operator handled 11.6 million passengers in March. BAA's three Scottish hubs - Glasgow, Edinburgh and Aberdeen - saw just a 3.8-per cent increase in passengers to 1.5 million last month, well below the 7.7-per cent UK average.

Aberdeen continues to be Scotland's fastest-growing airport, with a 7.9-per cent increase in passengers last month at over 227,000.

Edinburgh is Scotland's biggest airport, with more than 670,000 passengers passing through in March, a 3.5-per cent increase.

Glasgow saw a modest 2.6-per cent increase in numbers during the month at 603,000.

For the year to March as a whole, the group's UK airports handled 141.7 million passengers, up 6.3-per cent against the previous financial year.

Glasgow has seen a 5.7-per cent increase for the year, with Edinburgh and Aberdeen both seeing a 6.2-per cent increase in passenger numbers. London's Gatwick airport was the main winner from the early Easter, with traffic rising by 15.4-per cent in March. Passenger numbers through the airport topped 32 million during the financial year, the first time numbers have exceeded 32 million since September 2001.

Heathrowwas 5.2-per cent up on the same month a year earlier, while Stansted increased by 9.1-per cent.

BAA eased 1.5p to 594.5p.

National Air Traffic Flights Up, Delays Dn
12 April 2005
Edited Press Release

LONDON (Dow Jones)--National Air Traffic Services said Tuesday that a total of 2,200,665 flights used U.K. airspace in the year to March 2005, a new record and an increase of 4.8% on the year ago period.

In its figures for the year to March 2005, National Air Traffic Services, or NATS, also said that in March it handled 181,524 flights, an increase of 5.5% on the same month last year.

The air traffic management company said that despite rising traffic levels, service delivery showed significant improvement, with the average delay, per flight, attributable to NATS in the 12 months of the 2004/2005 financial year, falling to 20.9 seconds, compared to 40.6 seconds in 2003/2004, a reduction of 48.5%.

Furthermore, in 2004/2005, 98% of flights experienced no NATS attributable delay, an improvement from 95.6% in 2003/2004.

NATS' Chief Executive, Paul Barron, said: "With demand for air travel set to increase over the next decade we have embarked on an ambitious GBP1 billion modernisation programme to meet future demand and to continue to provide a safe and reliable service."

In March, the average NATS attributable delay, per flight, was just 6.2 seconds compared to 23.1 seconds in March 2004.

The proportion of flights receiving no NATS attributable delay also improved, to 99.3% in March 2005, compared to 97.3% in the same period last year.

All four of NATS' en-route centres, London Area Control (LACC) at Swanwick, Hampshire, London Terminal Control at West Drayton, Scottish Area and Oceanic Control at Prestwick and Manchester Area Control reported healthy traffic increases for 2004/2005 compared to the previous year.

UK-India flights double in deal
http://news.bbc.co.uk/1/hi/business/4441963.stm

UK airline flights to India are set to more than double under a new agreement signed by the countries on Wednesday.

Under the arrangement, the number of flights per week will rise from 40 now to at least 84 by 2006.

It comes after flights increased last year, giving carriers other than BA a chance to compete on the routes.

The latest news was welcomed by BA, Virgin and BMI who will now be able to expand services on routes where demand currently outstrips supply.

The UK's Department for Transport said 56 of the 84 flights will operate between London's Heathrow airport and Delhi or Mumbai (Bombay).

The remaining flights will be between the UK and Bangalore and Chennai.

The number of flights between the US and India are also expected to increase as part of an agreement later this month.



^ This follows another expansion late last year:
http://news.bbc.co.uk/1/hi/business/4066239.stm

Jet plans 21 flights per week to UK from May

Source: IRIS NEWS DIGEST (16 April 2005)

Jet Airways (Q, N,C,F)* plans to operate 21 flights a week between India and the UK in its winter schedule this year. The increased flights come on the back of new liberal bilateral agreements between the two countries. Jet plans to fly twice daily to London Heathrow from Mumbai and once from Delhi, reports Economic Times.

According to sources, in the next three months, the airline will open one new international station every month. The Chennai-Kuala Lumpur flights start from May 5, the Mumbai-London flights will kick off in May and the Mumbai-New Jersey flights (six a week) by the end of June.

The airline will simultaneously expand its tie-ups with large international carriers to offer its customers better connectivity.

http://www.myiris.com/newsCentre/newsPopup.php?fileR=20050416111743002&dir=2005/04/16&secID=livenews

Jet Airways of India will launch daily scheduled service between Mumbai and London Heathrow from 23 May 2005.

The flights will be operated by Airbus 340-300 aircraft on lease from South African Airways and will operate on the following schedule.

9W 118 BOM d1145 LHR a1655 (Mo)
9W 118 BOM d1230 LHR a1740 (Th)
9W 118 BOM d1320 LHR a1830 (ex. Mo/Th)

9W 117 LHR d2125 BOM a1050+1 (daily)

All schedules and operations are still subject to Government approvals and will be available for sale after those formalities are completed.

Airports report soaring numbers of passengers
ELEANOR COWIE
26 April 2005
The Herald

MORE than 200 million passengers passed through UK airports last year, an increase of 8-per cent on 2003.

Aviation statistics released yesterday said that from 1987 to 2004 passenger numbers doubled at London's airports and tripled at regional airports.

Scottish airports also recorded strong figures, according to the Civil Aviation Authority (CAA), with the biggest percentage increase at Inverness.

The Highland terminal showed a 20-per cent rise in passenger use from 2003 to 2004, with 92,142 more people using its services.

Edinburgh and Glasgow airports also experienced rises of 7-per cent and 5-per cent, respectively.

At Edinburgh, 536,123 more passengers used the airport in 2004 than 2003, and last year a total of 8,575,039 passengers used Glasgow International Airport, a rise of 445,326.

Prestwick catered for 1.39 million international passengers in 2004 - making it the eleventh most popular airport in the UK for overseas flights.

Prestwick to Stansted was also among the 10 most popular domestic routes last year.

Despite the 8-per cent rise, passenger numbers between the UK and North America did not reach pre-September 11 levels.

The CAA reported that passenger traffic at the five main London airports - Heathrow, Gatwick, Stansted, Luton and London City - grew 7-per cent last year to 129 million passengers.

Heathrow numbers rose 3.6-per cent to 67.34 million; Gatwick was up 5-per cent to 31.46 million;

Stansted was up 12-per cent to 20.91 million; Luton rose 11-per cent to 7.53 million and London City increased 14-per cent to 1.67 million.

The number of passengers using UK regional airports rose 9-per cent last year to 88 million. Of the 10 largest regional airports the fastest growing was Newcastle - up 21-per cent to 4.72 million.

Bristol saw a 19-per cent rise to 4.64 million and Leeds Bradford handled 2.36 million passengers - 17-per cent more than in 2003.

Among other English airports enjoying big increases were Exeter - up 57-per cent to 621,624 passengers; Plymouth, up 44-per cent to 128,621; and Blackpool, up 43-per cent to 266,179.

The majority of passengers in the UK last year flew to or from Europe. The number on flights to or from Europe totalled 122 million - 7-per cent up on 2003.

With more Eastern European countries in the EU, passenger numbers on those routes rose 97-per cent with an an extra million travellers last year.

There were 25 million passengers on domestic flights last year - up 6-per cent on 2003 - and 21 million on North American flights - up 9-per cent. Numbers were up 21-per cent last year on routes to Africa and the Middle East.

Debbie McLean, CAA transport statistics manager, said:

"These figures show a continued increase in airport usage, with over 217 million passengers travelling to and from UK airports last year. In particular, regional airports have shown considerable growth, largely as a result of the increasing inf luence of low-cost airlines."

Rise in air near-misses puzzles experts
Andrew Clark
20 April 2005
The Guardian

Near-misses between aircraft over Britain have risen to a 12-year high, fuelling concern about overcrowding in the skies.

The UK Airprox Board, which investigates close shaves, yesterday revealed that there were 109 reported incidents in the first half of 2004, the highest number since 1992.

Experts are puzzled by the sudden increase, 28% up on 2003 and the reversal of a steady downward trend since the introduction of automatic warning systems in cockpits.

The airprox board pointed out that more than half of the near-misses were rated as having "no collision risk". Peter Hunt, the board's chairman, said: "There was a lot of fine weather in the early part of last year. That brings more people out flying and you get more near-misses when there are more people in the sky."

Several near-misses took place around Stansted airport, which has seen rapid expansion owing to the popularity of low-cost European flights.

Liverpool airport hailed as fastest-growing in UK
27 April 2005
Daily Post (Liverpool)

LIVERPOOL is the UK"s fastest growing airport, according to new figures released by the Civil Aviation Authority (CAA).

In the five-year period between 1999 and 2004, Liverpool John Lennon Airport saw a 157.6% increase in passengers, from 1.3m in 1999 to 3.3m in 2004.

However, the figures also show that the pace of growth slowed last year.

The annual increase in 2004 was just 6%, behind other regional airports like Bristol and Newcastle.

This left the airport static in 13th position in terms of passenger throughput.

However, it is expected to rise further up the table during the current year. In particular, the dramatic increase in traffic from Ryanair, who will soon have added 11 new services from Liverpool, should drive growth rates up again.

Also contributing to the expected growth is Flybe, which is adding six new services, plus a full year"s effect of additional services from Aer Lingus, Wizz Air, Air Wales and Aer Arann.

For example, there have already been monthly increases this year of 12%, 11% and 19% in January, February and March respectively, compared to the same period in 2004. The March figure is the biggest monthly rise in two years.

Coinciding with the release of the latest figures, Ryanair yesterday launched new services to Pisa, Cork and Granada. A new service to Shannon begins next week.

Over the next year, Ryanair will carry up to 1.5m passengers through Liverpool, making it a tourism gateway for over one million European visitors to Merseyside.

Liverpool JLA spokesman Robin Tudor said: "These latest statistics from the CAA clearly indicate the progress that"s been made by the airport in recent years.

"From an airport that had very few services to very few destinations, we"ve grown dramatically and are continuing to grow."

According to CAA figures, traffic at all the UK"s regional airports grew by 9% to a total of 88m passengers.

Steve Pearse, transport policy specialist at Liverpool Chamber of Commerce, said: "Liverpool has got some of the busiest routes, such as the one to Belfast International.

"From an initially low base, there has been a continued expansion of the network with new operators coming on to the other routes, and the investment in the new terminal and all associated facilities.

"Both Ryanair and Easyjet have shown their commitment to Liverpool by basing their aircraft here and there are new operators coming in such as Wizzair, so there is a real range of destinations being offered. It also means Liverpool is now on the destination boards of a lot more airports" In this context, the number of inward travellers coming to Liverpool as a destination is very significant, as it means a growth in tourist activity.

"Both business connections and tourism bring new money into the area.

"The basing of aircraft here is critical because it involves so many people spending money in the locality, not just pilots, cabin crew and engineering staff, but the supply companies as well who are all contributing to the economy.

"This is a generator in its own right in terms of economic activity. All of these have acted as a stimulus to investment in the area. The changes have been phenomenal over the past decade, and the airport has played a big part in that

BAA sees London airport traffic up 3 pct over 10 yrs

LONDON, April 28 (Reuters) - Britain's largest airport operator BAA Plc (BAA.L) said on Thursday it expected average passenger traffic at its three London airports to grow 3 percent over the next ten years.

BAA, whose seven airports include London's Heathrow, Gatwick and Stansted, also said in a statement it expected to spend about 6.8 billion pounds ($12.93 billion) over the next ten years.

It tipped passenger traffic to grow by 3.5 percent at the three London airports in the current financial year.

Transport: Roundup: Airports in London to get pounds 6.8bn
29 April 2005
The Guardian

BAA plans to invest pounds 6.8bn in London's three main airports over the next 10 years, it said yesterday.

Passenger numbers at Heathrow, Gatwick and Stansted are expected to rise from 121 million a year now to 162 million a year by 2015, the airport operator said.

The company added that its 10-year forecast did not take into account any runway expansion at Heathrow or Stansted. There are plans for a second runway at Stansted in Essex in about 2011, while a third runway at Heathrow could be built in about 2015.

BAA said it expected annual passenger numbers at Heathrow to rise from 67.7 million this year to 86 million by 2015. Numbers at Gatwick were likely to increase from 32 million to 41 million, while Stansted could rise from 21.2 million to 35 million, it said.

For 2005, traffic grew at the three London airports by 6.2% and BAA invested pounds 1.28bn. The company said that Heathrow's new pounds 4.2bn terminal 5 was on schedule and due to open in 2008.

Over the next year, BAA expects to invest pounds 1.4bn in the three airports and for passenger numbers to grow by 3.5% from 120.9 million to 125.1 million.

BAA's chief executive, Mike Clasper, said: "Demand for air travel in the UK will continue to grow." - PA

New British airport opens, with runway fit for new Airbus jumbo

LONDON, April 28 (AFP) - Britain's newest international airport, and the only one outside London big enough to handle the mammoth new Airbus A380, opened for business Thursday when a plane full of tourists took off for a Mediterranean sunspot.

Robin Hood airport, built on the site of a former Royal Air Force bomber base near Doncaster, South Yorkshire, will initially offer flights to European destinations, mainly operated by budget carrier Ryanair and charter outfit Thomsonfly.com.

Long-haul flights to Florida, Mexico and the Dominican Republic are planned for next year, with hopes that it will serve 2.3 million passengers over five years, taking them to 33 destinations in 20 countries.

"Robin Hood Airport has the potential to be the fastest growing regional airport in the United Kingdom," said its managing director David Ryall, as the first flight left for the Spanish holiday island of Majorca.

"We are aiming to become the 'airport of choice' east of the Pennines (the hill range that runs up the centre of northern England) for passengers and airlines alike. We hope to achieve that goal within the next five years, if not sooner."

Developed at a cost of 80 million pounds (118 million euros, 152.6 million dollars), Robin Hood boasts a runway just less than two miles (2.89 kilometres) long, making it the only airport outside London capable of handling the A380, which made its maiden flight in France on Wednesday.

The site was acquired from the Ministry of Defence and commercialised by Peel Holdings, the developer behind two other English regional airports -- John Lennon airport in Liverpool and Durham Tees Valley airport in Durham.

The airport, which is also close to Sheffield, is renowned for northeast England's association with the 12th century yeoman famous for his steal-from-the-rich, give-to-the-poor exploits.

I don't know where that journo going on about Robin Hood airport got his facts from, but his head is obviously way up his own arse when it comes to the A380 and runway length.

Several airports in the UK already have runways longer than 3km, Manchester for example having two, both around 3048m long (longer than 2.8km) and 60m wide. They take 747s all the time and will take the A380 as well.

And it's not just about runway length either, terminals and taxiways etc all have to be changed, which is being planned for at Manchester as it is at Heathrow.

Manchester Airport (MAN) is pleased to announce the appointment of its new Airfield General Manager: Simon Butterworth.

...

Simon Butterworth said: “I’m really excited about joining Manchester Airport and returning to large-scale airfield operations. There are interesting developments on the horizon, including the modification programme for the anticipated arrival of the Airbus A380, and I’m really looking forward to helping deliver further improvements for the business.”

Illegal staff trigger alert at airport
By Nigel Bunyan
30 April 2005
The Daily Telegraph

THE security of Britain's airports was called into question yesterday after seven people working at Liverpool John Lennon Airport were found to be illegal immigrants. Home Office investigators and police officers arrested the suspects at the airport car park. The Home Office later confirmed that they were a mixture of failed asylum seekers, workers in breach of their visas and over-stayers. Airport officials acknowledged that although car park security was "in the hands" of a separate company, Security Recruitment Services, there were implications for the security of the complex. They were "disturbed" and would be seeking reassurances from the company. Security Recruitment Services said it was ``shocked and concerned'' by the arrests. It was the first time it had been involved in such an incident in 35 years.

BA accused over flights with one engine down
Dipesh Gadher Transport Correspondent
01 May 2005
The Sunday Times

BRITISH AIRWAYS has allowed jumbo jets to complete long-haul flights on at least seven occasions despite pilots having to shut down an engine.

On each occasion the flight had to be completed on three engines rather than four because of technical problems.

Safety concerns have been raised because the pilots of the Boeing 747s decided to continue with their journeys rather than divert to a nearby airport.

In one recent case this led to an aircraft making an emergency landing at Manchester because pilots feared it was running low on fuel after crossing the Atlantic with one engine down.

America's Federal Aviation Administration (FAA) has accused British Airways (BA) of "careless and reckless" behaviour although the airline says passenger safety has never been compromised.

The phenomenon is not confined to BA. Since the start of last year 18 British- registered aircraft -including Airbus A340s, BAe146s and jumbos -have been forced to shut down one of four engines in the air, according to Civil Aviation Authority (CAA) records. Several then continued their journeys.

The FAA is investigating one BA flight, carrying 351 passengers, that suffered an engine surge immediately after taking off from Los Angeles airport in February.

The faulty engine was shut down, but after taking advice from BA technicians in London, the captain continued with the 11-hour flight to Heathrow rather than returning to Los Angeles or diverting to another American airport.

Forced to fly at a lower altitude than the flight crew wanted, the plane used up more fuel than expected because of less favourable tailwinds.

By the time the aircraft reached Ireland the captain felt that attempting a landing at Heathrow would be too risky and asked for a diversion to Manchester.

Howard Ramsdale, 47, a passenger on the flight, said: "I was absolutely astounded that we didn't return to LA. There wasn't a single person that I spoke to on that plane who wanted to carry on.

"As far as I'm concerned my life was put at risk. It was a very stressful flight and I'm not really sure that I'd get on an aircraft again, let alone a BA one."

Ramsdale, a science teacher from Gainsborough, Lincolnshire, has written to the airline, demanding compensation for the trauma he suffered.

BA has backed the actions of the pilot and points out that the 747 is certified to fly on three engines. Given the circumstances, the CAA also believes that flying with one engine down is "a safe option", more so if the plane is well into its journey.

This view, however, does not appear to be shared by the FAA, which could fine BA if it concludes that the airline violated American regulations.

An FAA official said: "The prudent operating procedure if a pilot has an engine out is to land at the nearest available airport."

David Learmount, safety editor of Flight International magazine, said: "Every American pilot I've spoken to said there is no way our airlines would sanction a policy (of flying on three engines).

"In my mind, it was simply not best practice. Were the passengers endangered by this? No. Did they have the same level of safety that they'd have had with four engines? Obviously not."

British pilots of four-engined jets would usually divert to the nearest airport only when flying on two engines.

Six days after the LA flight a replacement engine on the same 747 had to be shut down 3A hours into a BA flight from Singapore to London. The aircraft arrived safely at Heathrow about 11 hours later.

Last November an engine was virtually shut down, or "set to idle", on another long-haul BA flight following a suspected oil leak. The incident happened above the Atlantic Ocean four hours into an 11-hour trip from Sao Paolo, Brazil, to London.

Less than a month earlier a 747 owned by Bournemouth-based European Air Charter (EAC) suffered an engine failure shortly after take-off from Reunion Island in the Indian Ocean.

The flight, which was operated by a British crew on behalf of Air Austral, continued to Paris and had only 30 minutes of reserve fuel in its tanks by the time it landed, according to CAA records. The incident is being investigated by France's aviation authorities.

Ken Dyer, EAC's commercial director, said: "If the crew are not comfortable about it then they are not going to fly."

A spokesman for BA said an engine was shut down on only five 747 flights last year out of a total of 30,000. "The actions of our captains were entirely in line with our operating procedures and CAA requirements," he said.

New BA chief will bear a heavy load before take-off
Richard Irving
4 May 2005
The Times

WILLIE WALSH, British Airways' chief executive-designate, landed behind his desk at the airline's Waterside headquarters for the first time yesterday. His arrival at BA was flagged in March, so it was perhaps unsurprising that shareholder reaction to his formal arrival was subdued. BA shares closed 5p higher at 243p.

Shareholders will be hopeful, however, that yesterday's gains are a taste of things to come. Mr Walsh has a reputation as a cost slasher, as his track record in resuscitating the moribund Aer Lingus demonstrates. Despite the best efforts of Rod Eddington, the outgoing BA chief executive, to reshape the airline and take out more than Pounds 1 billion in costs in the process, shareholders will be hopeful that Mr Walsh can achieve more. But his sharpened axe will have to stay sheathed for the time being. Mr Walsh is not due to take sole control of BA until October 3 and in the interim will play second fiddle to Mr Eddington.

The challenges for Mr Walsh are many: how to address BA's struggle against low-cost rivals while dealing with soaring fuel prices and a unionised labour force, made more difficult by the pending relocation to Heathrow's Terminal 5. He also faces the constant threat to trading conditions of major external events such as terrorist attacks, Sars and wars.

As chief executive of Aer Lingus, Mr Walsh was able to turn around the airline's performance by slashing costs and improving efficiencies to rival that of Ryanair, its biggest competitor. Aer Lingus's operating margin last year was expected to be 12 per cent, up from 9.3 per cent in 2003. Those numbers are music to the ears of BA shareholders. BA has a 10 per cent margin target but is managing only about half that.

Mr Eddington will present his final set of full-year results in a fortnight. At the same time Mr Walsh is expected to give the first outline of his plans.

Analysts expect BA to report a pre-tax profit of about Pounds 393.1 million, equating to earnings per share of 21.3p. At yesterday's close, BA's shares are trading on an undemanding multiple of 11.4 times forecast earnings. Even without a dividend that appears cheap. But then again the next Sars epidemic could be just around the corner, making Mr Walsh's task all the more difficult. Hold.

BA says market conditions 'unchanged'; April traffic up 0.1 pct
5 May 2005

LONDON (AFX) - British Airways PLC said market conditions are 'broadly unchanged' as it reported a 0.1 pct increase in April passenger traffic.

The UK flag carrier's monthly report revealed premium traffic, measured in Revenue Passenger Kilometres (RPKs), was higher by 13.3 pct while non-premium traffic fell by 2.0 pct.

Passenger capacity, measured in Available Seat Kilometres (ASKs), was 1.0 pct above April last year.

This meant passenger load factor -- passengers as a proportion of the number of seats available -- was down 0.8 points versus last year to 74.7 pct.

Cargo, measured in Cargo Tonne Kilometres (CTKs), fell 0.2 pct.

This meant overall load factor fell 0.7 points to 68.7 pct.

At 2.34 pm shares in BA were up 3-1/2 pence at 250-1/2 pence.

The airline is scheduled to publish fourth quarter and final results on May 13.

UK bans Phuket Air after revolt by passengers
Andrew Clark
6 May 2005
The Guardian

A cut-price Thai holiday airline has been banned from flying to Britain after a safety scare last month in which passengers staged a rebellion when they saw fuel leaking from a wing.

Phuket Air, which was used by several leading tour operators including Kuoni and Thomson Holidays, has had its operating licences suspended in Britain and its other European destination, the Netherlands.

The Department for Transport said the sanction, which is unusual for a mainstream carrier, was a result of "the number and severity of safety breaches revealed in Civil Aviation Authority inspections". One of the airline's jumbo jets is still at Gatwick airport. The aircraft has been impounded by the airport's operator, BAA, in lieu of unpaid landing duties, which industry sources put at more than pounds 100,000.

Founded four years ago, Phuket Air uses a fleet of Boeing 747s aged between 15 and 26 years, which it bought from the Dutch national carrier, KLM. The venture was intended to attract price-conscious travellers in a long-haul version of Europe's successful low-cost airlines, with fares to Thailand from around pounds 300 return.

Problems began to emerge last month when passengers prevented a plane from taking off after a refuelling stop at Sharjah, United Arab Emirates, en route from Bangkok to London.

British holidaymakers said fuel was gushing out of a wing, although the airline claimed they were "typical drunken Brits" and said the fuel tanks had simply been overfilled.

A replacement aircraft sent to pick up the tourists was delayed owing to further technical problems. Two days later, the same plane was forced to abandon a flight from Gatwick and circle above the airport, dumping 50 tonnes of fuel, owing to a hydraulics problem.

A Civil Aviation Authority spot check found that the collision avoidance system on one aircraft was not working.

Other faults included a damaged gearbox and faulty emergency lights. The authorities in the Netherlands lost patience when one of the airline's pilots was found to have an out-of-date medical certificate.

Bans on individual airlines are rare, although Britain does have a blanket prohibition on airlines from a few countries judged to have inadequate regulation, including Equatorial Guinea, Liberia, Tajikistan and Congo. The Department for Transport said Thailand's main carrier, Thai Interna tional, was unaffected, and Britain still had confidence in Thailand's safety authorities.

A regulatory source said: "The tsunami may have accelerated some financial problems, and if they've got problems of that sort, they may have taken short cuts in other ways." Phuket Air did not return calls yesterday.

David Learmount, the safety editor of Flight International, said the age of the airline's fleet meant it would need a lot of day-to-day expenditure on maintenance.

"There's nothing wrong with using old aeroplanes as long as you look after them," he said. "It's like having an absolutely immaculate 1927 Bentley: you can keep it on the road as long as you spend a lot of time and money on it."

BAA confirmed that it was refusing to allow a Phuket Air plane to leave Gatwick until the carrier had paid its bills, although it refused to say how much money was at issue. It said: "We are trying to resolve the issue as amicably as possible."

No passport checks on arrivals at 'open door' airport
6 May 2005
The Daily Express

AN airport was last night branded an "open door to illegal immigrants" after a planeload of passengers was allowed into the UK without producing their passports.

The flight's 40 passengers waited at immigration control at Leeds Bradford International Airport after touching down from a flight from Brussels on Tuesday. But after no-one from the immigration service had appeared after 10 minutes, airline staff told them to walk into the country and pick up their bags. Customs failed to check the luggage.

One passenger said: "It was laughable.The flight could have been packed with terrorists or illegal immigrants and they would have just been able to walk into the country without being checked. It's terrifying."

Last night the Home Office confirmed there had been a "very serious" breach of immigration rules. It blamed local management and said it had ordered an investigation.

Scot spots on the cheap
7 May 2005
The Independent

Ten years after easyJet started the low-cost revolution between Scotland and London, competition on the key routes serving Edinburgh and Glasgow is about to get even more intense.

In 1995, you could fly only from Heathrow or Stansted to Scotland"s largest cities, on a choice of three airlines. Now there are more airlines and more than twice as many flights, with links also to Gatwick, Luton and London City. Competition is set to increase still further: the leading Scottish airline FlyGlobespan is to launch flights from both Edinburgh and Glasgow to Stansted. There will be two flights a day in each direction from Monday to Friday, plus services on Saturday mornings and Sunday evenings.

The links were originally operated by Air UK, but then replaced by Go, which was later bought by easyJet " with whom the new flights compete directly. Flights from Edinburgh start on 1 June, and from Glasgow on the following day.

Test bookings made to both destinations from Stansted departing on the morning of Friday 1 July, returning on the evening of Sunday 3 July, reveal return fares of £51 to Edinburgh on Globespan, compared with easyJet"s fares of £110 to Edinburgh and £85 to Glasgow.

Anyone travelling with substantial luggage may still opt for easyJet, which has no weight limit on cabin baggage and an additional weight limit for 20kg for checked bags. FlyGlobespan has the same overall limit for checked and cabin baggage combined.

FlyGlobespan offers a "flexible fare", which will suit travellers who think it is likely that they will want to change dates of flights " or who typically book very close to departure. The fare is £118 return, which is likely to be much less than short-notice bookings between London and Scotland.

A rational strategy for such travellers is to book a trip for some random time in the future, then change dates by noon the day before the date of travel; these are allowed 45 days either side of the original booking. You can even change names free of charge, making the offer ideal for businesses.

Competition to and from London City increases from next Monday, 9 May, when ScotAirways steps up its services between the Docklands airport and Edinburgh with a new daily jet service in each direction.

The airline currently operates only propellor aircraft on the route between the English and Scottish capitals, in competition with British Airways jets.

Fares on the route are typically around £111 return.
British Airways: 0870 850 9850, www.ba.com
easyJet: 0905 821 0905, www.easyJet.com
Globespan: 0870 556 1522, www.flyglobespan.com
ScotAirways: 0870 6060707, www.scotairways.com

BA Traffic and capacity statistics - April 2005
British Airways Press Release
May 5, 2005

In April 2005, passenger capacity, measured in Available Seat Kilometres, was 1.0 per cent above April 2004 and traffic, measured in Revenue Passenger Kilometres, was higher by 0.1 per cent. This resulted in a passenger load factor down 0.8 points versus last year, to 74.7 per cent. The increase in traffic comprised a 13.3 per cent increase in premium traffic and a 2.0 per cent decrease in non-premium traffic. Cargo, measured in Cargo Tonne Kilometres, fell by 0.2 per cent. Overall load factor fell 0.7 points to 68.7 per cent.

Market conditions

Market conditions remain broadly unchanged.

Strategic Developments

British Airways announced plans to increase flights to India following a new air services agreement between the UK and Indian governments. From October 2005 it will operate a double daily service from London Heathrow to Mumbai, a new five a week to Bangalore and six a week to Chennai. From March 2006, it plans to operate a double daily service to Delhi, and daily services to Bangalore and Chennai from London Heathrow.

At the same time British Airways confirmed it will launch services to Shanghai from London Heathrow on June 1, 2005, with five services a week to Shanghai Pudong airport operated by Boeing 777 aircraft.

Another new route from London Gatwick was announced with twice weekly flights to Hassi Messaoud in Algeria from June.

Prime Minister Tony Blair signed a British Airways Boeing 747 in support of London’s bid to host the 2012 Olympic and Paralympic Games. British Airways, a premier partner of the London 2012 bid, hopes to collect in excess of 100,000 signatures on the aircraft that will carry the bid team to Singapore for the decision vote by the International Olympic Committee.

In a speech to the Royal Aeronautical Society, British Airways’ chairman Martin Broughton said the resumption of negotiations between the EU and the USA on a new transatlantic air treaty could lead to fundamental reform of the aviation industry if it delivers a truly barrier free transatlantic market.

British Airways offered large savings on business class returns to 36 long haul destinations and 36 European cities and resorts for the summer holidays.

British Airways terminated its franchise agreement with Air Kenya Aviation Ltd, which traded as Regional Air. The decision followed the Kenyan based airline’s suspension of flights operated as part of the franchise agreement.

British Airways is to appeal against an employment tribunal ruling after losing an indirect sex discrimination claim from a female pilot. The first officer had requested a reduction in flying hours to a 50 per cent contract but the airline said it could only offer her a 75 per cent contract instead. The airline argued at the tribunal and will argue again at the appeal hearing that all pilots, male and female, must have at least 2,000 flying hours’ experience before being permitted to work less than 75 per cent of a full time contract. This policy is based on safety grounds and is not a gender issue.

British Airways Monthly Traffic and Capacity Statistics- April 2005
Data : http://bapress.custhelp.com/cgi-bin/bapress.cfg/php/enduser/std_adp.php?p_sid=&p_lva=&p_faqid=7093

Certain statements included in this statement may be forward-looking and may involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements.

Forward-looking statements include, without limitation, projections relating to results of operations and financial conditions and the company's plans and objectives for future operations, including, without limitation, discussions of the company’s business and financing plans, expected future revenues and expenditures and divestments. All forward-looking statements in this report are based upon information known to the company on the date of this report. The company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

It is not reasonably possible to itemise all of the many factors and specific events that could cause the company’s forward-looking statements to be incorrect or that could otherwise have a material adverse effect on the future operations or results of an airline operating in the global economy.

Jet Airways to launch London-Mumbai daily flights



http://www.moneyplans.net/frontend2-verify-6623.html

^ Wow! The London to Bombay route is becoming very busy indeed! British Airways, Virgin Atlantic, and Air India already offer daily direct flights on this route. Jet Airways will be the fourth daily direct service. I'm surprised there are so few direct flights between London and Calcutta though.

Air Scotland to offer first Baghdad flights
Tom Robbins and Gemma Bowes
Sunday May 8, 2005
The Observer

Air Scotland, a tiny low-cost airline which only started two years ago, is planning to steal a march on British Airways and other major carriers by starting direct flights from London to Baghdad in November. The flight will be the first service between the two cities since BA withdrew the route in 1990.

'We obviously won't be flying through hails of bullets and missiles and giving parachutes to passengers, but I'm very hopeful the situation will be much calmer by November,' said Dhia Al-Ani, the airline's founder. 'Already there are flights going into Baghdad from Jordan and Dubai with no problems. The only tricky bit is getting to the airport.'

Air Scotland currently flies between Scotland and popular tourist destinations such as Paris, Greece and Spain, but has major expansion ambitions. Earlier this year it announced that it had applied to aviation authorities for permission to fly from Scotland to Miami, New York, Havana and Toronto. Al-Ani expects particularly strong demand for the twice-weekly flights to Baghdad, which will start in Glasgow and land at Stansted before continuing direct to Iraq. Even if the security situation hasn't improved in Baghdad, Air Scotland will press ahead with flights to the northern Iraqi city of Arbil.

Iraqi-born Al-Ani came to Britain to study in 1983 and went on to own Glasgow-based tour operators Viva and Discount Holidays.

^ Wow! The London to Bombay route is becoming very busy indeed! British Airways, Virgin Atlantic, and Air India already offer daily direct flights on this route. Jet Airways will be the fourth daily direct service. I'm surprised there are so few direct flights between London and Calcutta though.

yeap,its a cool thing Monkey :okay: :)

after the UK-India open-air policy things have been going up for aviation:)

^ BMI will also be offering London Mumbai flights from May 14th so that makes five airlines now!!

Swedish low-cost carrier FlyMe to start Stockholm-London route
9 May 2005

STOCKHOLM, Sweden (AP) - Swedish low-cost carrier FlyMe Europe AB said Monday it will start a new route between Stockholm and London on Oct. 3.

The airline will fly between Arlanda airport outside Stockholm and London's Gatwick airport. There will be one flight in each direction daily Monday-Friday.

FlyMe said it would announce the ticket prices on May 30.

The Goteborg, Sweden-based airline flies to destinations in Sweden and Finland year-round and to Nice, France, in the summer.

Flybe: April Passengers Up 29%
9 May 2005
Edited Press Release

LONDON (Dow Jones)--Flybe said Monday that it carried 407,000 passengers in April, up 29% compared with 314,506 in April 2004.

Load factor was unchanged at 67%.

The increase was achieved despite the fact that traffic levels benefited in April 2004 from the traditional upswing in traffic arising from the Easter Bank Holiday period.

It is worth noting that due to the way Easter breaks fall in 2005 and 2006, there will be no Easter traffic benefit in Flybe's current financial year, the company said.

Flybe's strong new summer 2005 programme led to a 26% increase in traffic from Birmingham while regional growth at Exeter (70%), Southampton (27%) and in Scotland (39%) remains very strong.

Businessman plans commercial flights from Britain to Iraq: report

LONDON, May 11 (AFP) - An Iraqi-born airline owner living in Britain hopes to start offering commercial flights to and from Iraq this November for 500 pounds (940 dollars, 730 euros) return, a newspaper reported on Wednesday.

Dhia al-Ani, who owns Air Scotland and Greece Airways, has applied to the British department of transport for a licence to run two flights a week to Baghdad and a third to Arbil in the Kurdish north, the Daily Telegraph said.

He told the newspaper that many Iraqis would be keen to use the service as Britain had once been a popular holiday destination.

"I think those flying from Britain will mainly be people involved in the reconstruction of Iraq," said Ani.

"It is probably a bit early to talk about taking tourists there," said the businessman who moved to Britain 23 years ago and has a Scottish wife.

The flights would take off from Stanstead airport in Essex, just outside London, and Glasgow in Scotland for a return fare of 500 pounds.

"The price is high because of the cost of insurance, but I expect it to drop to around 300 pounds as the situation becomes normal," said Ani, referring to the security situation in Iraq that claims dozens of lives every week.

Commercial services are running from Baghdad to Amman and Dubai without any problems, the businessman noted.

BA annual profit seen up despite fuel costs
By Michael Smith

LONDON, May 11 (Reuters) - Cost cuts and a recovery in business class travel will help British Airways deliver higher annual profits on Friday, but soaring fuel prices and stiff competition threaten to eat into earnings this year.

Analysts expect Europe's second-largest airline, which will usher in a new chief executive in October, to show progress in its battle to slash debt and costs, as falling ticket prices mean only modest increases in revenue.

BA is expected to post a 25 percent rise in operating profit to 506 million pounds ($952 million) for the year to March 31, according to the median of eight analyst forecasts obtained by Reuters.

Estimates ranged from 485 million to 525 million pounds, compared to 405 million pounds last year. The closely-watched operating profit figure represents earnings before interest and tax.

Analysts said they were not expecting any major surprises in the results, which will have benefited from the inclusion of two busy Easter holiday breaks and a recovery in first and business class travel in recent months.

However, the focus will be on the carrier's outlook for the current year amid fears of a slowdown in UK consumer spending and no sign of oil prices easing. U.S. crude prices were this week trading only around $6 below last month's record high of $58.28.

BA has already said it expects fuel costs to rise by 300 million pounds in the current year and has flagged revenue growth of 3 to 4 percent, slightly above forecasts for an increase of 3.0 to 3.5 percent for the year just ended.

The London-based carrier has also said it needs to strip out additional costs this year.

Chief Executive Rod Eddington has axed 13,000 jobs and reduced debt during his tenure at BA. Eddington is stepping down at the end of September and will be replaced by former Aer Lingus boss Willie Walsh, who joined the carrier last week.

The table below shows analyst forecasts for operating and pretax profits in millions of pounds and sales in billions of pounds:


OPERATING PROFIT SALES
AVERAGE 507 7.821
MEDIAN 506 7.819
HIGH 525 7.869
LOW 485 7.787
PREVIOUS YEAR 405 7.560

Passengers flying through London's Heathrow airport face delays, cancellations
11 May 2005

LONDON (AP) - Passengers arriving and departing from London's Heathrow airport faced delays and cancellations Wednesday when both the airport's runways were blocked.

Heathrow's southern runway was blocked when the brakes on a KLM Boeing 767 aircraft jammed at 1:15 p.m. (1215GMT).

Departures were switched to the northern runway, but it was also blocked when a Cathay Pacific aircraft departing for Hong Kong suffered overheating breaks at 2:30 p.m. (1330GMT).

Airport authority BAA said the northern runway reopened within nine minutes. The southern runway was closed for three hours.

"There are delays occurring to both departures and arrivals as Heathrow returns to normal," BAA said in a statement.

Aberdeen continues to fly high
12 May 2005
The Herald

ABERDEEN airport was BAA's fastest-growing Scottish facility for the second month running, passenger traffic figures from the company showed. Britain's biggest airport operator said Aberdeen grew passenger numbers 5.8-per cent to 232,200 in April compared with the same month last year. Passenger volumes increased 3.9-per cent year-on-year to 688,300 at Edinburgh and 0.7-per cent to 641,100 at Glasgow, which is more reliant on the peak summer months.

Across the UK, traffic increased 0.8-per cent. The results were distorted by the fact that Easter fell in March this year.

UK's Natl Air Traffic Svcs Says April Flights Up 6%
11 May 2005
Edited Press Release

LONDON (Dow Jones)--National Air Traffic Services (NATS) handled 183,997 flights in April, an increase of six per cent over April 2004. The growth was led by low-cost carriers, the U.K. agency said.

NATS' air traffic control centre at Manchester recorded the highest growth for April 2005, with an increase of 8.6% to 49,627 flights. Swanwick reported an increase of 6.2% (148,980 flights); followed by the Oceanic Centre at Prestwick with 5.8% (29,780 flights); Scottish with 5.4 per cent (49,660 flights); and West Drayton with 5.1% (106,495 flights).

Of the 14 U.K. airports where NATS provides the air traffic control service, 12 reported increased traffic over April 2004, with the highest increases at Luton (21.5%), London City (15.8%) and Southampton (14.2%). The two airports reporting reduced traffic from April 2004 were Birmingham (down 4.6%) and Stansted (down 0.1%).

The average delay per flight (attributable to NATS) fell sharply to 7.1 seconds, down from 24.2 seconds in April 2004. The number of flights receiving no NATS-attributable delay in April 2005 increased to 99.1%, up from 97.1 per cent in April 2004.

Flights to European countries remained popular, with Italy (up 15.8% to 8,146 flights), Spain (up 8.2% to 15,032 flights) and Germany (up 8.0 per cent to 12,648 flights) showing the greatest growth. Flights to the United States showed continued growth, up 4.1% to 7,603 flights over April 2004.

Friday May 13, 9:07 PM
British Airways Profits Slide for 4Q

AP - British Airways PLC said Friday that quarterly profits slumped 25 percent as high crude oil prices eroded its earnings but full-year profit nearly doubled largely as the result of cost-cutting measures.

British Airways said that net profit for the three months ended March 31 was 9 million pounds ($16.8 million), down from 12 million pounds a year earlier. Revenue edged up to 1.89 billion pounds ($3.51 billion) from 1.85 billion pounds a year ago.

For the full year, the company earned 251 million pounds ($467.31 million), up from 130 million pounds a year ago. Full-year revenue rose 3.3 percent to 7.8 billion pounds ($14.49 billion).

The airline warned that high fuel costs would be an ongoing problem.

"Market conditions remain broadly unchanged," British Airways Chairman Martin Broughton said in a statement to the London Stock Exchange.

Broughton said the airline now expected fuel costs, net of hedging, to be about 400 million pounds ($744 million) more than last year. The airline had previously warned that fuel costs would be 300 million pounds ($558 million) higher than last year.

Crude oil prices hit a record $58.28 a barrel in early April. They have since slid about 20 percent, but remain 19 percent higher than this time last year.

The full-year results benefited from cost improvements made under Chief Executive Rod Eddington's restructuring plans.

"These are good results, driven by continued cost control and strong demand for our products," said Eddington, who will step down in September after five years with the airline.

He said the airline had exceeded its 2003-2005 planned savings of 450 million pounds ($837 million) by 7 million pounds ($13 million).

The results exceeded analysts' expectations and shares in the airline rose 2.1 percent to 259.25 pence ($4.83) on the London Stock Exchange.

Broughton said total revenue was expected to increase by between 4 percent and 5 percent in 2005-2006, up from an earlier estimate of 3 percent to 4 percent because of new fuel surcharges imposed on passengers by the airline to reap back some of the higher costs.

Broughton said that capacity and volumes were expected to increase by about 3 percent.

Passengers 'pay Pounds 650m too much for flights'
Angela Jameson
13 May 2005
The Times

PASSENGERS are paying Pounds 650 million a year more than necessary for long haul air tickets, according to bmi, the British airline that is campaigning to loosen restrictions on long-distance routes from Heathrow.

Bmi has identified 14 long-haul routes from Heathrow that are restricted from full competition, including Sydney, Washington, New York, Cape Town and Lagos. The airline believes that passengers would save Pounds 658 million a year if restrictions were lifted on the routes, based on a 10 per cent fall in fares.

Sir Michael Bishop, chairman of the airline, said that millions of passengers were being "denied real competitive choice because of regulatory restrictions".

He urged the UK and US governments to examine a recent deregulation agreement between the UK and India.

Limited deregulation on routes from Heathrow to India, introduced last September, has seen economy ticket prices fall by 25 per cent and business fares drop by 15 per cent.

Eight of the restricted routes are to American destinations. Discussions between the UK and the US aimed at removing competition are due to resume next week.

Heathrow jam causes alarm
Andrew Clark
12 May 2005
The Guardian

Accident investigators are calling for a comprehensive review of ground safety at Heathrow following a spate of collisions between planes and buildings which have raised concern about overcrowding at Britain's busiest airport.

The Air Accidents Investigation Branch (AAIB) will today express alarm about the number of aircraft hitting piers, gates and tugs as the airport's management struggles to find space to park planes.

Last year a dispatcher had to run clear of an airbridge to escape injury when he realised a British Airways jumbo jet was about to crash into it. The plane, which had arrived from San Francisco, sustained a hole in its wing and severe damage to one of its engines which sucked in debris.

A few weeks earlier a Boeing 737 operated by the Romanian airline Tarom suffered similar damage when it hit a jetty on arrival from Bucharest.

Four years ago the AAIB reported that there were between 70 and 120 incidents a year in which aircraft were damaged by accidents on the ground at Heathrow. Investigators will today criticise the airport's "inadequate response" to the problem.

AAIB investigators have concluded that there is "little overall strategy" for guiding air craft on to stands, with confusion about who is responsible for using emergency stop signals. They will call on the Civil Aviation Authority to conduct an audited review of the airport's operations.

"London Heathrow airport operates within a site of restricted size. It is apparent that the airport is working to capacity and that the operation is constantly being driven to increase this capacity still further," says the report, which points out that some stands designed for one aircraft are being used to accommodate two smaller planes.

Heathrow is the world's busiest international hub, handling 63 million passengers annually on 90 airlines. Aircraft take off or land on the airport's two runways every 90 seconds. A pounds 4.2bn fifth terminal is due to open in 2008.

The transport secretary, Alistair Darling, has indicated that he favours construction of a third runway, as long as air pollution is reduced locally.

BAA, which operates Heathrow, said it was installing extra "emergency stop" buttons, allowing ground staff to warn pilots when they were about to hit piers. The company said it had reviewed procedures in response to recent incidents and was considering the recommendations of the investigators.

UK airline bmi plans new long-haul routes

LONDON, May 12 (Reuters) - British airline bmi [BMID.UL] plans to launch daily services to Bombay and has identified 14 other long-haul routes it would like to fly, the carrier said on Thursday.

Chairman Michael Bishop said bmi, formerly known as British Midland, hoped to operate weekly services from London to Bombay and start services later this year to Riyadh, Saudi Arabia.

He told reporters the airline had identified 14 other potential long-haul destinations including Hong Kong, Johannesburg and Cape Town in South Africa, Narita in Japan and destinations in the United States.

"We have long campaigned for the right to bring new competition to key long-haul routes from Heathrow, and we will continue to do so," Bishop told reporters.

Bmi, which hopes to compete with larger rivals British Airways and Richard Branson's Virgin Atlantic [VA.UL], starts the four-times-a-week service from London to Bombay this Saturday.

Bmi's long-haul ambitions have been held back by the failure of negotiations to deregulate air travel between the UK and other countries. India and Britain recently agreed to open up additional routes between the two nations.

Bishop told reporters the airline was in talks with plane manufacturers including Boeing and Airbus on possible fleet expansion. The airline has options to add to its existing fleet of three Airbus A330 aircraft.

He also said there had been no change in bmi's ownership structure and that relations were cordial with major shareholder Lufthansa .

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.

British newspapers said in January Lufthansa had approached other airlines about selling its stake. Bishop has the right to exercise a put option, which could force Lufthansa to buy his stake in bmi.

Stansted runway setback for BAA
Dominic O'Connell
15 May 2005
The Sunday Times

THE airport operator BAA has suffered a setback in its plans for a second runway at Stansted, Essex, with the regulator saying it will look again at how much the company is allowed to spend on preparatory work, writes Dominic O'Connell.

BAA was given the green light to spend Pounds 105m on planning for the runway, with half of this sum earmarked to buy affected houses. But earlier this year the Civil Aviation Authority, which regulates BAA's spending, said it had withdrawn its approval.

Now the watchdog has decided it will hold a new consultation process, which could take six months. The CAA said it wanted to "avoid the risk that it has not properly captured the views of all interested parties".

The move is a victory for airlines at Stansted, which say BAA's plans for a new runway and terminal are too expensive and will drive up charges.

BAA said that it was committed to the spending. The company will report its full-year results on Tuesday, when it is expected to reveal that profits at Stansted have risen from Pounds 39m to about Pounds 55m.

bmi starts Mumbai-London service


http://www.thehindubusinessline.com/2005/05/18/images/2005051801360701.jpg
Sir Michael Bishop, Chairman, bmi, at a press conference in Mumbai on Tuesday. — Paul Noronha

http://www.thehindubusinessline.com/2005/05/18/stories/2005051801360700.htm

Air India proposes more flights to UK from South

http://www.thehindubusinessline.com/2005/05/18/stories/2005051801350700.htm

BAA: Runway May Face More Delays Without Other Rev
18 May 2005

(This updates an item timed around 1138 GMT with reaction from airlines.)

LONDON (Dow Jones)--BAA PLC (BAA.LN) said Wednesday that a second runway at Stansted can't be built within the U.K. government's envisaged timeframe and warned that a further delay may occur if the airline industry regulator opposes its preferred way of financing the project.

Due to its complexity and planning issues, BAA said the runway project had moved at a slower pace than originally expected and 2013 is now the earliest completion date. The government's 2003 Air Transport White Paper envisaged that a second runway be built at Stansted in southern England by 2011-2012, followed by a third at London's Heathrow by 2015-2020.

Mike Toms, BAA's planning and regulatory affairs director, said on a conference call that the runway couldn't be built economically by 2013 if it's solely financed by Stansted airport revenue. He said there could be a delay of "several" years beyond 2013 if this was the case. The second runway and all associated developments could ultimately cost about GBP4 billion.

Arguing that the second runway will have economic benefits to southeast England, BAA will lobby the regulator, the Civil Aviation Authority,to allow the project to be broadly financed with revenues from Heathrow and Gatwick airports, as well as Stansted. BAA wants to take about a GBP0.50-GBP1 levy from passengers passing through Heathrow and Gatwick. The regulated average passenger charge at Stansted is now GBP3 but this will rise to about GBP5 in April 2007.

Assuming it can be broadlyfinanced then the runway would be economical to build, added BAA Chief Executive Mike Clasper. "I am very confident we will be building a new runway at Stansted," he said.

But airlines using BAA's airports criticized its proposed methods of financing Stansted's second runway.

"This is totally outrageous and we will fight this proposal tooth and nail," said long-haul specialist Virgin Atlantic Airways, which uses both Heathrow and Gatwick. "We remain totally opposed to cross-subsidization between London airports. We look to the independent regulator to maintain its current position that those who should benefit from Stansted should pay for its development."

Virgin Atlantic is owned by Richard Branson's Virgin Group (VGN.YY) and Singapore Airways (S55.SG).

In a joint statement, rival low-cost carriers Ryanair Holdings PLC (RYAAY) and easyJet PLC (EZJ.LN) - which operate out of Stansted and Gatwick - said they will call on the CAA to force BAA to scale back its plans for the Stansted expansion.

"Today it (BAA) has added insult to injury with its plans to fleece up to GBP1 from passengers at Heathrow and Gatwick to pay for the development of Stansted," said easyJet Chief Operating Officer Ed Winter.

Ryanair and other carriers have argued that the envisaged development plans for Stansted's expansion are way too ambitious and pricey and will lead to higher airport charges.

BAA is the U.K.'s major airport company, owning Stansted, Heathrow and Gatwick, among others.

BAA expects to publish its detailed plan for the second runway in Spring 2006. It has said the runway would only be built if it brings the desired returns for its shareholders.

Additional runway capacity is considered vital by the government as a means of reducing congestion among the main airports serving London. Stansted, to the north of the capital, is a key airport for low-cost carriers.

BAA officials are Wednesday meeting various stakeholders in the second runway. Residents living close to the airport raised a legal challenge to the government's White Paper in an effort to stop the airport's expansion.

In February, the U.K. High Court backed plans to build a second runway at Stansted but ruled that BAA needed to make further consultations on the location of the runway.

BAA profit soars on high passenger traffic and shopping

LONDON, May 17 (AFP) - British airports operator BAA reported on Tuesday a 36-percent rise in annual pre-tax profits, helped by a record high number of passengers that thronged its shops before boarding planes.

Group pre-tax profit jumped to 733 million pounds (1.065 billion euros, 1.347 billion dollars) in the year ending March 31, 2005 compared with 539 million pounds during the same period a year earlier.

The figure was inflated by an exceptional gain of 112 million pounds from property transactions.

Excluding the exceptional gain, but including reorganisation costs, pre-tax profit rose 18.8 percent to 637 million pounds compared with analysts' consensus forecasts of 618 million.

Across BAA's seven airports, passenger traffic rose 6.3 percent to a record 141.7 million in the 12 months ending March.

Turnover jumped 7.4 percent to 2.115 billion pounds and net retail income climbed 7.3-percent to 588 million pounds.

"Great retail performance, in spite of adverse conditions, smart use and development of assets and improved customer service, all supported by a strong focus on innovation, have driven our operational performance," BAA chief executive Mike Clasper said in a statement accompanying the results.

"We have also delivered an exceptional property related profit of 112 million pounds thanks to our property management and transaction skills."

Clasper said he had confidence that BAA could sustain growth, creating "a robust financial performance for 2005/06".

BAA's share price gained 1.58 percent to 612.5 pence in early afternoon London trading, while the capital's FTSE 100 index of leading shares was flat at 4,883.50 points.

At BAA's London Gatwick airport, annual passenger traffic rose 6.5 percent to 32 million, the first time it had risen above the level seen prior to the terrorist attacks in the United States on September 11, 2001.

At Heathrow, passenger traffic grew 5.3 percent to 67.7 million, which BAA said was in large part owing to faster check-in times that gave passengers greater time to buy goods before boarding.

"BAA has commenced the implementation of a significant reorganisation programme designed to ensure the group improves its focus on customers and operational effectiveness and efficiency," the group said Tuesday.

Stansted subsidy plan angers airlines
By KEVIN DONE
19 May 2005
Financial Times

BAA, the airports group, has warned that the building of a second runway at London Stansted airport would be delayed for at least a year to 2013 and said landing charges would have to be more than doubled to finance the project.

Even 2013 could be achieved only if the project were subsidised by increases in airline user charges at London Heathrow and Gatwick airports, said Mike Clasper, BAA chief executive. Otherwise the Pounds 4bn Stansted project would have to be delayed for "several years", he said.

Airlines using all three of BAA's London airports reacted angrily to the plans for higher landing fees.

Sir Richard Branson's Virgin Atlantic said: "This is totally outrageous and we will fight this proposal tooth and nail."

Ed Winter, EasyJet chief operating officer and chairman of the Stansted airport consultative committee, said: "BAA has today announced the great consumer rip-off and it should send a shiver down the spine of every airline passenger in the UK. It is planning to build a folly on the grandest scale, that is unnecessary and unwanted."

Virgin Atlantic said: "There is no way our passengers at Heathrow or Gatwick should subsidise those of Ryanair and other operators at Stansted. We remain totally opposed to cross-subsidisation between London airports.

"We look to the independent regulator, the Civil Aviation Authority, to maintain its position that those who would benefit from Stansted should pay for its development."

Cross-subsidisation would fly in the face of the principle of "stand-alone" economic regulation of Heathrow, Gatwick and Stansted, established by the CAA for the present price cap regime running from 2003-08.

The BAA proposals for higher charges at all three airports to finance the Stansted expansion appear certain to provoke a row this year when the CAA starts negotiations with the airlines and BAA on the next pricing regime for 2008-13.

Delays in the Stansted project would undermine the the government's aviation policy. A white paper published in December 2003 called for the biggest expansion of airport capacity in 50 years.

Alistair Darling, transport secretary, gave strong support for the building of two runways in south-east England, the first at Stansted airport by 2011-12, and the second at Heathrow by 2015-20, provided they could meet tough environmental conditions.

The CAA said two years ago that it would only depart from its policy for stand-alone financing of the London airports for "compelling reasons".

Mr Clasper yesterday fired the first shots in the airport group's campaign to convince the regulator that some cross-subsidisation was vital in the interests both of the national economy and the consumer.

Pure dead brilliant: but would you be dying to fly from this airport?
Prestwick launches new image with an old saying
MARTYN McLAUGHLIN
19 May 2005
The Herald

ITis a gallus move that could transport a famous snippet of Glesga patter as far afield as the streets of Paris, Rome and Milan. But time will tell if associating death with air travel was wise.

Glasgow Prestwick airport will today unveil its new slogan which will greet arrivals to the country and adorn its worldwide marketing campaigns and website.

Management at the Ayrshire hub say the adoption of the colourful phrase "Pure Dead Brilliant" marks an attempt to inject the humour and fun back into international air travel in the wake of the September 11 terrorist attacks.

The slogan, uttered into posterity by Elaine C Smith in City Lights, the 1980s comedy series, has been greeted with bemusement by marketing analysts and holidaymakers alike.

The phrase already features prominently throughout the airport building itself following the completion of a pounds-3m renovation which will be officially unveiled this afternoon.

Outside, it is emblazoned in bold lettering above the main concourse and stamped on flags and signage; the interior, now a riot of lush purple, boasts four billboards above the check-in desks, each carrying the phrase and an aspirational portrait of Scottish life.

The incorporation of the Glasgwegian saying into the airport's revamped image is the brainchild of Cato Partners, a NewZealand-based marketing firm.

Approving of the idea, management at Prestwick asked its 400-strong staff to volunteer for publicity shots, eventually using around 45 people along with some of their children and grandchildren in the imagery.

The billboards above the check-in desks convey the more modern, quirky view that the airport is keen to promote.

Two female staff skip down Buchanan Street, a cluster of boutique bags in hand.

There is even a cheeky nod to a seminal part of Prestwick's own history - the terminal's firefighters, clad in sequin suits, shades and bouffant wigs, pay homage to Elvis Presley's 1960 stopover in Ayrshire on his way home from duty with the US army in Germany.

It is a sardonic approach, and one which management believe will elevate Prestwick from being Glasgow's second airport to a major international player.

Steven Fitzgerald, who became chief executive of Prestwick last November, praised the new slogan as "energetic, humorous and edgy."

"It's meant to be humorous, " he explained. "September 11 completely changed air travel and this is a way of putting the fun back. The word 'pure' represents the Scottish landscape, while 'dead brilliant' is what we intend to be to our customers.

"PIK (the previous brand identity) was OK but it wasn't doing anything for the airport's image. Most airports over the world have fairly conservative brandings and this gives us an edge."

Despite the strong west of Scotland associations of the slogan, Mr Fitzgerald believes the notion of fun and vibrancy will transcend language barriers.

A spokesman for VisitScotland offered a pragmatic view, praising the "catchy" and "strong Scottish flavour" of the fresh image. He added: "Like any new brand campaign, it will take time to settle in, but I'm sure the airport will have a public relations drive in mind to explain the rationale behind it.

"If there is any confusion overwhat it means, I'm sure the airport will be smart enough to let international travellers know what it means, and I think it will catch on."

But not everyone shares the optimism. Andrew Jones, an advertising expert at Cloudline Consulting, a Stirling-based marketing agency, said the phrase belonged to an old Glasgow.

He said: "It's 15 years out of date and doesn't do the airport justice. It gives the airport a personality and from a public relations point of view, any publicity's good publicity. But it's very Glasgow. It's been used as a marketing slogan several times before, including at Radio Clyde in the late 1980s."

Dr Jim Scobbie, from the Speech Science Research Centre at Edinburgh's Queen Margaret University College, suggested the phrase could prove as much of a curse as it does a blessing.

He said: "It's interesting how the Scottish language travels throughout the world.

"It shows confidence which is good, it's a local identifier that's unique and understandable."

However, he added: "I'm not sure what some people will make of the word 'dead' in an airport building, and there'll no doubt be a few people in Ayrshire upset that Robert Burns's words weren't used instead."

Terminal to relieve passenger chaos at Heathrow airport
20 May 2005
The Australian

SOME 30km west of London the largest current building project in Europe is half complete, on budget, on time and preparing to ease the lives of the travelling public.

Heathrow Terminal 5 will be British Airways' gateway to the world, a single complex offering all its customers a straightforward path to and from their aircraft instead of the confusing routes in existing Terminals 1, 2 and 3.

It will also spare connecting passengers the headaches of changing terminals.

BA hopes the new terminal will enable Heathrow to challenge Amsterdam Schiphol and Paris Charles de Gaulle -- airports that have been successful in siphoning UK interline traffic away from London with their quicker connections.

Most of BA's Oneworld partners are also likely to use the terminal and pick up extra business.

The terminal will increase Heathrow's capacity to 90 million passengers a year, compared with the 72 million who passed through the world's busiest international airport last year.

Passengers will still have to wait until the northern spring of 2008 to use it -- but that is a short time compared with the 20 years of political and planning wrangles that preceded its construction.

Heathrow will get a properly integrated railway station, with six platforms under the terminal: two for the Piccadilly Line, two for the Heathrow Express to Paddington and a pair to safeguard capacity for future rail links to the west.

While those who use the M25 ring road may curse the current problems caused by road-widening work, access to T5 should be easy, with no narrow tunnel to pass through or long drive, such as that from the motorway system to Terminal 4.

Although 4000 car parking places are being provided, the British Airports Authority, which operates the airport, says it expects half the surface journeys to and from T5 to be by public transport.

The journey through the terminal should also be more straightforward for passengers.

After checking in, mostly at self-service machines with e-tickets, they will pass immediately through security. They will also be able to see where they are going so that the route through the terminal will be more intuitive. After trooping off an aircraft, the arrivals hall will be visible, even if some distance away.

Some gates are being designed to accommodate aircraft of the future like the Airbus A380 superjumbo. The terminal itself is jumbo in size, occupying a site the size of Hyde Park, with the main concourse 396m long, 39m tall and 176m wide.

There are two terminals under construction, the main building plus satellite B connected by an underground people mover.

Much of the below-ground work is also being constructed for satellite C, expected to come on stream in 2112. A further satellite, D, is also earmarked for future development.

Another benefit for British Airways is a consolidated baggage system which will not only handle items within T5 but those from the four other Heathrow terminals and those transferred from Gatwick.

To assist in the management of different bag routeings a computerised itinerary is developed for each item, which is controlled throughout its journey to the aircraft, including details of flight delays.

French group Accor has won the race to operate the new flagship hotel at T5 under its Sofitel brand. The five-star property, connected by walkways to the terminal, will also open in the spring of 2008 and will be the icing on the cake.

Monkey,

so here it is..Jet Airways(A340-313X) in LHR :)
picture date:23 May

http://www.jetphotos.net/viewphoto.php?id=477587


thanks to Planemad for finding the pic:)

Stansted plan 'rip-off'
21 May 2005
The Daily Telegraph

EasyJet and Ryanair have criticised the British Airport Authority's (BAA) pounds 4 billion expansion plans at Stansted airport, calling it a "great consumer rip-off''. Despite acceptinh the need for a new terminal and runway, the low-cost airlines this week said passenger service charges will nearly treble to pounds 8 by 2008 to pay for the redevelopment. They claim that passengers at Gatwick and Heathrow will also have to pay an extra pounds 1 per flight. The airlines, which account for 80 per cent of the airport's passengers, believe BAA is planning to turn Stansted into a long-haul airport capable of taking the A380.

British Carrier in Bid for Irish Routes
By TOM GILLESPIE
22 May 2005
The Sunday Mirror

A BRITISH airline wants to take over Ireland"s heavily subsidised internal air routes.

Birmingham-based bmi has submitted a bid to the Department of Transport to take over three of the country"s "public service" routes.

The routes are Kerry-Dublin, Knock-Dublin - both operated by Aer Arann - and Derry-Dublin - operated by Logan Air.

If bmi wins the bid, the contract - worth millions in subsidies - will commence on July 22 for a period of 3 years.

The airline plans to use two aircraft to operate the schedule. Kerry-Dublin will have three daily return flights, Derry-Dublin will have two return flights and Knock-Dublin will have one flight a day.

They may also operate a direct Kerry-London Heathrow service daily.

bmi regional boss Crawford Rix said: "bmi already has a strong presence in the Irish market, through our successful Dublin-London Heathrow service and our Cork-Leeds Bradford route.

"If successful, we would expand our regional service offering."

The terminal will increase Heathrow's capacity to 90 million passengers a year, compared with the 72 million who passed through the world's busiest international airport last year.

I didn't know Heathrow had reached 72 million!

Preliminary statistics from ACI for 2004 point to over 67 million passengers using Heathrow for the year.

Pro-expansion group to intensify Heathrow runway conflict
By KEVIN DONE
23 May 2005
Financial Times

The conflict over long-term plans to build a third runway at Heathrow, already the world's busiest international airport, will intensify today with the launch of a pro-expansion lobby group, Future Heathrow.

The campaign is to be led by Clive Soley, the former west London Labour MP and a former chairman of the parliamentary Labour party, who stepped down at the general election and was awarded a peerage a few days later.

Its launch follows doubts last week over the economic case for building a second runway at London Stansted airport: the government's favoured first move for expanding airport capacity in the highly congested south-east of England.

The lobby group has been formed by UK and foreign airlines operating at Heathrow including British Airways, Virgin Atlantic and BMI British Midland, and business and labour groups including the CBI, the London Chamber of Commerce, three leading trades unions - Amicus, the GMB and the TGWU - as well as the TUC.

The Future Heathrow initiative was attacked yesterday by environmental and local residents groups, which disputed that without a third runway and a sixth terminal the future of the airport was threatened by continental European hubs led by Paris Charles de Gaulle and Frankfurt.

The government white paper on aviation policy, published in December 2003, called for the building of a third runway at Heathrow between 2015 and 2020, but only if it could meet tough environmental conditions: in particular one on air quality, which will become mandatory under a European directive that comes into force in 2010.

However, the Heathrow area already fails to meet the 2010 air quality targets; much of the pollution is caused by surface transport using the nearby M25 and M4 motorways.

Richard Dyer of Friends of the Earth said that by leading the campaign, Lord Soley had "abandoned his commitment to a more sustainable aviation policy and the health interests of his former constituents".

"We simply cannot allow any new runways in Europe if we are serious about tackling climate change."

Bmi scraps business class in no-frills landing at Heathrow
By Michael Harrison
24 May 2005
The Independent

The country"s second-biggest full-service airline, bmi, confirmed yesterday it is to scrap business class seats on flights from Heathrow and turn the service partially into a low-cost operation.

The dramatic move is designed to stem continued losses on bmi"s short- haul European services and lure passengers away from established low-cost carriers such as Ryanair and easyJet.

Fares on 80 per cent of bmi"s scheduled services from Heathrow will start at �25 one-way but at the same time passengers will be charged for food and drink. This is the first time any Heathrow-based airline has offered a no-frills service.

The overhaul will be introduced in August and although bmi will revert to single class cabins, it will still offer three different fares on flights from Heathrow " "tiny", standard and premium " depending on the degree of flexibility and service passengers want. Those wanting the cheapest fares will have to book online. Those prepared to pay premium fares will be able to change their flight times at short notice, sit at the front of the aircraft and have access to bmi"s business class lounges.

The changes will affect 16 of the 20 routes bmi operates from Heathrow. The four which will continue to offer a traditional business class service will be Glasgow, Edinburgh, Belfast and Brussels.

Nigel Turner, bmi"s chief executive, said at least 20 per cent of seats would be available at the new cut-price fares although the exact percentage would vary from flight to flight. He said the changes would produce savings of more than �30m a year but declined to say how many job cuts this would result in among the 3,000-strong workforce.

Rival airline executives said bmi"s new strategy could prove confusing for passengers who were not certain whether they were booking with a low- cost carrier or a full-service airline. But Mr Turner responded that the new approach would give choice and control back to passengers. The overhaul follows a six-month review by bmi which involved canvassing the views of 10,000 passengers.

Bmi has offered business class on flights from Heathrow for the past decade. Mr Turner said, however, that even though more than half of bmi"s passengers travelled on business, the vast majority flew in economy class seats. Bmi hopes the change will get the number of passengers booking on the internet up from 33 per cent to above 50 per cent. Online booking rates for its low-cost subsidiary, bmibaby, are more than 90 per cent.

New airline aims to fill Concorde void
David Millward
25 May 2005
The Daily Telegraph

EXECUTIVES are being offered business class-only flights to New York by the man who put beds on to British Airways planes. Fly First is being run by Hamish Taylor, 44, the former chief executive of Eurostar and previously BA's head of brand management, who plans to lease two Boeing 757-200s to replace the void left by Concorde. The planes, accommodating 48 passengers instead of their normal load of 228 people, will be divided into four cabins of 12 seats, all capable of being extended into fully flat beds, and will include changing rooms, telephones, fax machines and, if possible, internet access. Passengers, having paid pounds 3,360 for the return flight, will be chauffeur-driven to Luton airport, will arrive 45 minutes before take off at 6.45am. They will land at Newark airport, a short distance from Manhattan, at 9am - ahead of other European flights.

Mr Taylor says the company, which needs to raise up to pounds 25 million by June 10, will need only 16 passengers per flight to break even.

INTERVIEW-Britain's newest airport looks east
By Ben Blanchard

ROBIN HOOD AIRPORT, England, May 24 (Reuters) - Britain's newest airport, near the northern city of Sheffield, hopes to attract flights from China as part of a long-term growth strategy, its managing director said on Tuesday.

Robin Hood airport, opened late last month, expects to handle 1 million passengers in its first year, David Ryall said.

"Long haul is often spelt 'USA', but it's not just that," he said in an interview. "We want to go east as well as west."

He expects the airport's new facilities and lack of congestion to attract business from China's economic boom, whether as passenger or freight flights.

"We're very keen to establish longer distance links," Ryall said. "If the UK is looking to China, we have a long term interest in doing the same."

The 84 million pound ($154 million) airport, a former air force base, currently has scheduled flights to about a dozen destinations, mainly in Europe.

Two carriers already have scheduled services to Robin Hood -- Irish no-frills airline Ryanair and TUI AG unit Thomsonfly -- but Ryall said the airport was in talks to expand its services.

"If you look back only a couple of years, there were probably four or five low-cost carriers," he said.

"Across Europe it's now 40-something, but we're concentrating on the more established carriers," Ryall added, declining to expand on the negotiations.

The brand new terminal, about 25 minutes' drive northeast of Sheffield, has a just-opened feel about it.

A vast car park is about a third full and screens in the departure hall, which echoes to the sound of construction, show the 12 or so flights which make up the usual daily schedule.

Robin Hood, named after the legendary medieval character who robbed the rich to give to the poor, touts itself as Britain's first new full-service airport in more than half a century.

Ryall said the explosive growth of air travel in Britain, and a catchment area of some 5 million people within an hour's drive, meant the airport could reach its capacity of 2.3 million passengers in 2008 -- six years earlier than originally planned.

"It demonstrates how the UK aviation market is growing: massively," he said, sitting in a coffee shop in the cavernous, glass-fronted terminal.

The airport is operated by shopping mall-to-port group Peel Holdings, which also runs airports in Liverpool and the northern England city of Durham.

Ryall was confident Sheffield could attract business from airports in Manchester and Leeds, owned by local authorities, and even from London. Among Sheffield's pulling points were its lack of congestion and its long runway, capable of handling the giant new Airbus A380.

"Why does everything coming in long-haul need to come into Heathrow?" he said, adding that passengers could get to central London with a 90-minute train journey from Sheffield.

The new airport was keen to win new customers alongside those who fly to holiday destinations.

"This is not a bucket and spade airport," Ryall said. "It's a gateway into the UK."

Virgin Atlantic profits up despite fuel headwind
By Michael Smith

LONDON, May 27 (Reuters) - Virgin Atlantic Airways [VA.UL], the airline controlled by UK entrepreneur Richard Branson, posted higher annual profits on Friday after cost controls and income from new routes helped offset record fuel prices.

Virgin, which aims to double in size by the end of the decade, announced new routes to Dubai and Jamaica but said overcapacity on its key North Atlantic route and fuel costs were a challenge.

"Rising oil prices undid some of our good work, and regrettably we were left with no option but to introduce fuel surcharges from May 2004, although these only recovered around one third of the 60 million (pounds) extra costs we faced over the year," Branson said in a statement.

Virgin Atlantic, which competes with larger rival British Airways , posted pretax earnings of 68 million pounds ($124.3 million) for the year to end-February.

This compared with 20.9 million pounds for the 10 months to February 2005. Virgin changed its reporting period during the year to match that of its 49 percent shareholder Singapore Airlines .

Turnover was 1.63 billion pounds, compared with 1.27 billion in the 10-month period, with passenger numbers rising to 4.4 million from 3.4 million.

A Virgin spokesman said the company expected to further increase profits in 2005/06 due to income from increased services into India and recently introduced upper-class cabins. Fuel will remain a burden, he added.

NEW PLANES, NEW ROUTES

Branson, renowned for his publicity stunts, owns 51 percent of the airline, part of his business empire which stretches from planes and trains to vodka and personal finance with plans for space tourism in the pipeline.

The carrier ordered $5.5 billion worth of new Airbus planes last year as part of plans for annual growth of 10 percent and plans to start flying the giant Airbus A380 aircraft in 2008.

It has launched new routes to Australia, China and India and will start flying to Cuba next month.

Branson said it would launch London to Dubai services next year, its first Middle Eastern destination, and to Jamaica from July next year.

It is also increasing services to India, where British Airways and UK carrier bmi are also adding extra capacity, while Branson has launched an airline in Nigeria.

Unlisted Virgin said tight cost controls helped buoy earnings during the year and that a fuel surcharge on ticket prices partly eased the burden of high oil prices. British Airways also introduced a levy on tickets for fuel.

Airlines across the world are struggling with high fuel costs and overcapacity on routes over the North Atlantic. Struggling North American carriers have been slashing fares on the route to push up passenger numbers.

British Airways reported an annual operating profit of 506 million pounds earlier this month, beating forecasts.

(additional reporting by Mark Potter)

UK's Flybe near $1 bln new plane order - source
By Michael Smith

LONDON, June 2 (Reuters) - British regional airline Flybe is close to finalising a $1 billion order for new planes as part of a fleet replacement programme, an industry source said on Thursday.

Flybe hoped to announce the planned purchase of aircraft, which it hopes to have flying in 2006, before the Paris air show later this month, the source told Reuters.

"It would have a $1 billion price tag attached to it," the source said. Flybe has said it wants to revamp its fleet of larger aircraft but it was unclear with which manufacturer it was now talking.

The company, based in Exeter in southwest England, has said it is considering purchasing up to 12 larger jet aircraft from Airbus or Boeing Co.

The new plane order would follow Flybe's $485 million order for 20 Q400 planes from Canada's Bombardier Inc. in January which doubled the carrier's turboprop fleet.

Flybe, which plans to expand aggressively in Europe, also took options at the time for another 20 of the 70-seat Q400 planes.

Flybe, which is smaller than low-cost carriers Ryanair and easyJet but flies in different markets, has expanded rapidly since changing its brand from British European in July 2002.

Flybe is expanding rapidly. It paid $362 million for 17 Bombardier Q400 planes in 2003 on top of the four it already owned.

Flybe is owned by a private trust belonging to the family of the late Jack Walker, a multi-millionaire who made his fortune in steel and bankrolled Blackburn Rovers' rise to the pinnacle of English soccer.

Nuclear threat over runway decision
JEREMY WARNER
3 June 2005
The Independent

On a junket with journalists to China this week, Martin Broughton, chairman of British Airways, has threatened the airports authority, BAA, with "the nuclear option" in the ongoing row about where to site a new runway for London and how to pay for it. The nuclear option so threatened seems to amount to BA throwing its lot in with Michael O"Leary of Ryanair in lobbying for a break-up of BAA. This would indeed be an unholy alliance of nuclear powers, for the two airlines" reasons for opposing BAA"s plans are poles apart.

Just to recap, the Government is proposing that the new runway be sited at Standsted, north-east of London. Ryanair reckons it is already being overcharged by BAA for use of Stansted and refuses to be railroaded into helping to fund a second runway. It is already actively lobbying to have BAA broken up. Now even British Airways is threatening to get confrontational, but for entirely different reasons.

Last month BAA bit the bullet and admitted what had been obvious all along " that there was no chance of building the runway and associated facilities by the planned date of 2011, unless it is cross-subsidised by passengers at Heathrow and Gatwick. This might suit Mr O"Leary, but it is anathema to Heathrow-based airlines such as British Airways. Hence the threatened nuclear option.

It"s all very well making threats, but in the end it will be the Government that decides all three of these matters " where the runway is sited, who pays for it, and whether BAA ought to be broken up. The commercial case for siting the new facility at Heathrow is still overwhelming, as this is where international travellers most want to arrive and depart from and where they are most likely to want to pay for the privilege.

The reasons for opting for Stansted are largely environmental and political. Heathrow and its environs already seem too crowded to take another runway, whereas Stansted is in the midst of purest green countryside. The fact that Stansted is also staunchly Tory country, whereas the flight path to Heathrow contains some key marginals, is by the by.

By seeking ways to meet the Government"s preferred solution, BAA has put itself on a collision course with all its major customers. Mike Clasper, chief executive of BAA, finds himself caught between a rock and a hard place. The only thing guaranteed to release him would be a Government u-turn in favour of a third runway at Heathrow, in which case from Richmond to Henley, the angry mob would march on Westminster. Not everyone can win in this battle of the runways.

I'm in Shanghai right now and last night I saw an impressive fireworks display over the river (between the British colonial buildings on the Bund and the new Pudong skyline) celebrating the landing of British Airways' new direct Shanghai service which departed June 1st from London Heathrow and arrived June 2nd in Shanghai Pudong. The Aurora skyscraper, which has a vast advertising screen on its facade at night, showed the British Airways logo and an announcement of the new service for the duration of the fireworks display. BA also have adverts for the new London route all over the city. Virgin Atlantic and China Eastern already fly this route so this is now the third airline offering direct services between London and Shanghai. Timetables show that this winter London will overtake Paris as the Western city with the most direct flights per week to Shanghai. :)


Shanghai showpiece takes off
http://www.britishairways.co.uk/travel/bapress/public/en_gb

British Airways' first new longhaul service since November 2002 landed in Shanghai this morning, Thursday June 2, 2005.

The airline's chairman, Martin Broughton, hosted the guests including political and business leaders as well as the media onboard the inaugural flight.

The Boeing 777 aircraft was met at Shanghai's Pudong airport by British Airways' chief executive Rod Eddington, HM Ambassador to China, Sir Christopher Hum and the deputy director of East China's civil aviation authority, Zhou Zhen Kia. Passengers were treated to a traditional lion dance at the airport and Martin Broughton was invited to paint the lion's eyes, a Chinese symbol of good luck.

Martin Broughton said: "I'm delighted that we have touched down in this vibrant and fast growing city which is the economic powerhouse of China. We have wanted to fly to Shanghai for many years and now we are here, we intend to make our mark.

"I've been a regular visitor to Shanghai during the last decade and know just how the economy is booming. We want to be part of its growth.

"We look forward to welcoming existing customers on to our new route and introducing new customers to British Airways' products and services. The Chinese government's recognition of the UK's approved destination status earlier this year is a tremendous boost and we hope to welcome lots of Chinese passengers onboard."

British Airways flies to Shanghai from London Heathrow five times a week.

In September 2004, British Airways World Cargo launched the first direct freighter service between the UK and Shanghai. The new passenger service doubles the airline's cargo capacity on the route.
ends

June 2, 2005 052/LG/05

Notes to Editors

On January 21, 2005, the UK and Chinese governments signed a memorandum of understanding where the Chinese government recognised the UK's approved destination status. This means that the Chinese government will allow selected Chinese tour operators to sell UK leisure tours to Chinese citizens.

Until 2004, British Airways was unable to fly from London to Shanghai as flights between the UK and China were restricted to six weekly frequencies to Beijing, operated by British Airways, and four weekly frequencies to Shanghai operated by Virgin Atlantic.

In February 2004, a memorandum of understanding between the UK and Chinese governments increased significantly the number of frequencies between the two countries. Currently there are 25 passenger and six freighter flights allowed each week. This will rise to 31 passenger and seven freighter flights each week from March 2006.

UK carriers can fly to Beijing, Shanghai and four other Chinese destinations of their choice.

BA May passengers up, premium traffic disappoints
By Michael Smith

LONDON, June 3 (Reuters) - Passenger traffic at British Airways , Europe's second-largest airline, rose in May although a modest increase in business and first-class travel failed to match some expectations.

The stock swung to a loss on the day after the news.

BA, which posted higher-than-expected annual profit last month, said premium traffic rose 4.2 percent in the month against a 3.0 percent rise in economy-class travel.

Analysts said the rise in lucrative premium traffic, an important driver in BA's recovery, failed to match increases closer to 7 percent earlier in the calendar year. But they said the figures were no cause for alarm.

"Everything is on hold, let's see what next month brings," said JP Morgan analyst Chris Avery.

Avery said he would have been encouraged if premium growth was above 7 percent and anything between 4 to 7 percent showed the trend was in a holding pattern.

BA shares eased 0.6 percent to 271-3/4 pence at 1400 GMT. The stock was 1.7 percent higher shortly before the data was released.

BA said overall passenger traffic climbed 3.2 percent and its its load factor -- a measure of how many seats it has filled -- rose 1.6 points to 73.2 percent in May.

BA said market conditions remained broadly unchanged and it reiterated forecasts for current-year revenues to rise 3 to 4 percent.

BA's higher-than-expected profit came after cutting costs and filling more seats, but it continues to face headwinds from high fuel costs and competition from low-cost rivals.

Irish carrier Ryanair said on Thursday its May passenger numbers rose 34 percent. The Irish airline posted record profits this week after fare hikes by rivals pushed more passengers its way.

Low-cost rivals Ryanair and easyJet have forced down ticket prices on short-haul European routes, while struggling U.S. carriers are driving down transatlantic prices.

EasyJet reports its May passenger numbers on Monday.

BA's passenger traffic is measured in terms of revenue passenger kilometres.

The company's chief executive, Rod Eddington, steps down at the end of September to return to his native Australia and will be replaced by former Aer Lingus boss Willie Walsh.

BA bucks the budget trend for business flyers
Andrew Clark in Shanghai
4 June 2005
The Guardian

British Airways is poised to buck the industry trend by going upmarket in Europe with bigger seats and more space for business class travellers.

The national flag-carrier has been struggling to make money out of its short-haul network and is reviewing its services in an effort to challenge its budget rivals such as easyJet and Ryanair.

BA's chief executive, Rod Eddington, yesterday revealed that proposals to axe its business class cabins or to charge economy passengers for food have been shelved.

Instead the carrier is experimenting with enhancements to its Club Europe offering in the hope of winning travellers from rival BMI, which last week announced it was scrapping premium seats on most European routes.

Speaking at the launch of a new BA service to Shanghai, Mr Eddington said: "Our short-haul business is effectively at breakeven point, but that's clearly not good enough and we need to start making money out of it."

On one trial plane, the airline has removed one in five of its business class seats in order to give passengers more space. Mr Eddington said: "I don't think we'll be doing caviar and lobster [in business class] but you might look at the seat."

Mr Eddington, who steps down this summer to make way for the former Aer Lingus boss Willie Walsh, had a long-term target of making profits from BA's short-haul network, which has historically made a loss that has been justified as a "feeder" or loss leader for transatlantic flights. Short- haul losses have shrunk from pounds 60m to pounds 26m in recent years and the network is now on the brink of moving into the black.

Low-cost airlines have lured millions of passengers away from traditional carriers and the number of people travelling business class in Europe has halved since 2000.

But senior BA figures have been scathing about BMI's strategy of attempting to compete with its budget rivals directly by offering a range of fares with different "frills". One executive called BMI's strategy a "complete dog's dinner".

BA has cut its short-haul services considerably under Mr Eddington. Flights to destinations such as Gdansk and Gothenburg have been axed. Domestic and European services now account for less than a fifth of total revenue.

Echoing warnings from the international aviation body Iata, Mr Eddington predicted that losses in the global aviation industry would soar from $4.6bn (pounds 2.5bn) to between $6bn and $7bn this year as the high oil price takes its toll.

On one of his final public appearances before retirement, Mr Eddington warned governments that national ownership restrictions must be lifted from carriers to allow them to merge. Governments should see airlines as no more "national" than car manufacturers or steelworks, he said.

"Until governments stop worrying about ownership and control in aviation, the industry will remain fragmented," he said. "As long as it is fragmented, it will remain economically dysfunctional and will struggle from crisis to crisis."

Virgin hit by delivery delays of Airbus A380
BY SYLVIA PFEIFER
5 June 2005
The Sunday Telegraph

VIRGIN Atlantic has become the latest airline to be hit by delays in the delivery of Airbus' new A380 superjumbo. The airline, chaired by Sir Richard Branson, had ordered six A380s, but was not expecting the first deliveries of the plane until the spring of 2008. However, Virgin was informed late last week that delivery delays to earlier customers could mean its planes will now also be late. Singapore Airlines, the A380s launch customer, Qantas, Air France-KLM and Emirates have all been told that deliveries of the jumbo could be delayed by up to six months. Last night a spokesman for Virgin said the airline was aiming to meet with Airbus executives this week and that demanding compensation was an option. Virgin had been counting on the A380 to help its expansion plans. The European Union and America last week took their simmering row over 'launch aid' for new commercial aircraft to the World Trade Organisation.

According to the US, a key trigger for the move was Airbus' demand for European aid, including pounds 380m from the UK government, for the new A350. A group of MPs will this week take the case for aid directly to Tony Blair.

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Heathrow growth plans published


Draft expansion plans which could see a third runway and a sixth terminal at Heathrow Airport have been published.

About £7bn would be spent over the next decade, building Terminal Five and upgrading the west London airport.

Proposals earmark land for growth, including a boundary for another runway and terminal, which would require the demolition of 700 about homes.

BAA Heathrow says the plans are not set in stone, but opponents say it will increase noise and pollution.

A fifth terminal at Heathrow, with an overall budget of £4.2bn, is due to open in 2008.

But BAA Heathrow says it still needs to modernise to meet growing demand for flights in the South East and believes there is a "strong economic case" for a sixth terminal.

Expansion plans could see the annual number of passengers could rise from 67m to 116m in 2030.

The government has said a new runway and another terminal could be built at the airport - but first it has to meet environmental targets.

Mick Temple, BAA Heathrow managing director, said Heathrow could not afford to stand still but said they had to expand it in a way "which is both socially and environmentally responsible".

"This draft is for consultation only and should not be considered as final," he added.

But he said the whole project could be shelved if they could not meet environmental targets.

"We will not be able to build this additional runway without addressing these air quality issues," he said.

If approved, a third runway would not be built until 2015 at the earliest, he said.

Two schemes to help residents affected by proposals either move or try to maintain the value of their houses was also announced.

But John Stewart, chairman of local pressure group Hacan, said a third runway would "bring more noise, more pollution, and people will lose their homes".

"It's also not necessary for the economy. Unemployment is at an all-time low in west London.

He added: "No-one's going to want to buy a home here if they think the third runway's coming."

The draft plan will be put out for consultation until the end of October.

INTERVIEW: Flybe Eyes 8.5-9M Passengers/Yr By End Decade
6 June 2005
By Rod Stone

LONDON (Dow Jones)--Flybe (FBE.YY) is aiming to carry about 8.5-9.0 million passengers annually by the end of the decade, Chairman and Managing Director Jim French said Monday after the U.K. budget airline announced a large new aircraft order.

In an interview with Dow Jones Newswires, French said the regional carrier is expecting to handle about 5.5 million passengers in the current financial year ending March 31, 2006.

On Monday, Flybe said it's ordering 14 type 195 regional jets from Brazil's Empresa Brasileira de Aeronautica SA (ERJ), or Embraer, with options for a further 12. The firm order for 14 is worth $550 million, according to French, while the total order for 26 including options would be worth $950 million.

The 118 seater Embraer 195 jets will eventually replace Flybe's fleet of about 15 BAe 146 four-engined planes. French said planes being offered by market leaders Boeing Co. (BA) and Airbus (ABI.YY) were "simply too large" for the airline, which operates flights within the U.K. and to Europe from regional airports like Exeter, Southampton and Birmingham.

Flybe will become the launch customer for the Embraer 195 model with deliveries starting in the autumn of 2006.

The carrier also operates Q400 propeller-powered planes made by Canada's Bombardier Inc. (BBD.SV.B.T) and in January placed an order for 20 additional Q400-78s in a deal worth $485 million. Bombardier doesn't yet sell a regional jet able to carry more than 100 passengers but is looking to develop one.

French reiterated that the privately-owned airline is planning a change in ownership within 18 months to two years. This would either be through a stock market floatation or a sale to a trade or financial buyer.

Flybe is majority owned by the trustees of the Jack Walker Trust. The late Jack Walker was a steel magnate and former owner of Blackburn Rovers soccer club.

Company Web site: http://www.flybe.com

British airports handled 12.3 million passengers in May
9 June 2005

LONDON (AP) - British airports handled 12.3 million passengers in May, 5 percent more than the same months last year, thanks in part to budget airlines adding to their routes, according to industry figures published Thursday.

The fastest growth in passenger numbers was the small Southampton Airport in southwest England, which saw 30 percent more passengers, largely due to regional carrier Flybe adding to its destinations.

London's Gatwick Airport benefited from new low-cost services to Ireland and handled 2.8 million passengers in May, up 4.9 percent on the same month of 2004, according to the figures from airports operator the British Airports Authority.

At Stansted Airport north of the capital, the number of passengers was 10.7 percent higher than a year ago while at London Heathrow, figures recovered from a decline in April to reach 5.6 million in May, 2 percent up on May 2004.

Edinburgh was the fastest-growing airport in Scotland, handling 749,600 passengers in May, an increase of 12.3 percent on a year earlier.

Separately, the National Air Traffic Services said the growing popularity of budget airlines meant it handled a record number of 205.378 flights in May, up 7.3 percent on a year ago.

"Flights by budget carriers and services using regional airports showed particularly strong growth," said chief executive Paul Barron.

Walsh could earn up to £1.5m a year at British Airways
Jamie Smyth
9 June 2005
Irish Times

The former chief executive of Aer Lingus, Willie Walsh, could earn more than £1.5 million (€2.24 million) a year under two bonus schemes being introduced by his new employer, British Airways.

The bonuses, which will only be payable if British Airways meets certain performance targets, would boost Mr Walsh's take home pay to more than four times the €544,000 he earned in his final year with Aer Lingus.

Mr Walsh, who stepped down from Aer Lingus in February, joined British Airways as chief executive designate in May and will take over from the current chief executive, Rod Eddington, when he leaves in September.

British Airways's annual report for 2004/5, which was published this week, shows the firm will double the annual bonus available to executives for the coming year to 100 per cent of basic salary if certain targets are met.

Mr Walsh's basic salary as chief executive of British Airways is worth £600,000 per year, which means he would be entitled to a maximum bonus worth an extra £600,000 if he meets the targets.

This performance bonus would be payable half in cash and half in British Airways shares, according to the annual report.

Mr Walsh could also be in line for a new long-term incentive plan bonus worth up to 150 per cent of his basic salary. The bonus, which is worth a maximum of £900,000 after three years, would only be payable if targets based on shareholder returns and operating margins are met by the British airline.

A note to shareholders in the annual report said the proposed strategy for incentive pay was intended to increase the expected value to make the package more market competitive for executive directors. The proposed changes would result in the most senior executives having the highest proportion of pay at risk, with a greater emphasis on the longer term than other executives, it continued.

In a message to shareholders in the British Airways annual report, the firm's chairman, Martin Broughton, described Willie Walsh as the "youthful, respected, reforming, ex-Aer Lingus chief executive".

"He brings with him a reputation for strong leadership in difficult times - qualities that we will need to face the challenges ahead. I am confident he will build on the fundamental strategies in place that have delivered our current success."

Mr Walsh resigned from his position at Aer Lingus following a dispute with the Government over the future direction of the airline.

Govt to maintain existing night flying controls till October - Aviation Minister
10 June 2005

LONDON (AFX) - Aviation Minister Karen Buck said the government intends to maintain existing controls on night flying until October.

Buck was speaking at the launch of the second part of the two stage consultation on night flying restrictions at Heathrow, Gatwick and Stansted airports. The first stage took place last year.

'We have concluded that it is necessary to continue the existing controls for a further twelve months,' said Buck.

'This will give us time to consult widely over the next three months about the measures we are proposing and to consider the responses to the consultation before taking decisions about the next 6-year period,' said Buck.

The consultation document seeks view on whether or not to extend the length of the night quota period and makes specific proposals for the movement limits and noise quotas in each season.

'I urge everyone with a view about night flights at the three London airports to read the consultation document and send us their comments,' said Buck.

'I look particularly to the industry to provide any evidence supporting the economic case for night flights.'

The consultation document proposes that night flying restrictions should continue to be based on movement limits and the quota count classification system, as at present.

It also asks for comments on extending the night quota period (NQP) to cover the whole night from 11pm to 7am, though the government's provisionally preferred option is to retain the current 6-1/2 hour NQP.

Heathrow 'must grow'
By Charles Starmer-Smith
11 June 2005
The Daily Telegraph

The British Airports Authority this week hit back at criticisms of its plans to build a third runway and a sixth terminal at Heathrow to cope with rising demand. BAA Heathrow said it needs to upgrade and expand to meet growing demand for flights in the South-East. The airport, originally designed for a maximum of 50 million passengers, handled nearly 68 million last year. "Heathrow cannot afford to stand still. We need to plan for the future and ensure we provide excellent customer service and facilities to both our passengers and airlines,'' said Mick Temple, managing director of BAA Heathrow. The draft plans, which would necessitate the demolition of up to 700 houses, have been widely criticised. The South-East England Regional Assembly, in charge of planning in the area, said the Government's emphasis should be on reducing, not increasing, the number of flights.

John Stewart, chairman of the pressure group HACAN (Heathrow Association for the Control of Aircraft Noise) ClearSkies, said the airport expansion would affect more than 150,000 people in places such as Slough, Maidenhead, Heston, North Chiswick, Kensington and Chelsea. "Because a third runway is at least 10 years away, all these people will face a decade of blight," he said. "Hardest hit will be the communities of Sipson, Harmondsworth and Harlington, which will be virtually wiped out if expansion takes place.'' Last month Telegraph Travel reported that passenger levels were likely to break all records this summer, and London's airports are already struggling to cope with a demand fuelled by new routes and renewed confidence in air travel. Heathrow, the world's third-busiest airport, fears that, with its fifth terminal not due to be completed until 2008, the peak summer period will see significantly longer queues and journey times. A sixth terminal and a third runway, costing pounds 7 billion, would allow passenger numbers to rise to 116 million by 2030. Under the plans, which will have to satisfy Government environmental targets, the third runway will not be built until 2015 at the earliest.

Flybe May 2005 Passengers Up 42%
14 June 2005
Edited Press Release

LONDON (Dow Jones)-- Flybe said Tuesday that May passenger numbers increased 42% to 460,127 compared to 324,664 in May last year.

The load factor also increased by 4%, rising to 69% from 65%.

These strong growth figures come as the airline moves into the peak summer schedules, Flybe said.

The fleet size has been increased by three aircraft compared with last year, and all the sunshine routes are now fully operational.

Flybe has just announced that it will be purchasing 14 Embraer 195 aircraft and has taken options on a further 12.

Mike Rutter, Sales and Marketing Director, Flybe, said: "The new plane order, excellent passenger figures and record bookings for the summer period are all extremely good news. Our commitment to regional bases and domestic flights has been rewarded by strong results. The additional international routes we have introduced for the summer period are also selling very well and we are looking forward to continued growth through the summer period."

UK's Flybe says orders 4 more Bombardier planes

LONDON, June 14 (Reuters) - British regional airline Flybe said on Tuesday it had converted four of its options for Bombardier Q400 aircraft into firm orders, taking its number of firm orders for the plane to 45.

Flybe said the options were part of a deal announced earlier in the year.

West Indies air link scrapped
17 June 2005
The Daily Express

SCOTLAND'S first direct air service to the Caribbean has been scrapped.

British West Indies Airways started flights to Barbados and Trinidad on March 12 and only made seven nine-hour flights to the Caribbean on their 284-seat Airbus A340 aircraft.

The airline had hoped to fly the Manchester-Prestwick-Caribbean service all year round. The planes left Manchester and picked up 75 passengers at Prestwick on a Saturday and Belfast on a Sunday. Both services are cancelled.

A Prestwick Airport spokeswoman admitted: "This is a real blow. We are very disappointed indeed.

"Unfortunately, the Trinidad and Tobago Government, which owns the airline, decided they only wanted UK flights out of Gatwick and Manchester.

There is nothing we can do but hope another Caribbean service starts in the future."

The airline is promising to compensate passengers.

The 'Bwee' planes, with their colourful sunshine markings, will be missed by plane spotters at Prestwick. A BWIA spokesman said: "The termination of these services is aimed at streamlining operations".

Computer Glitch Disrupts Air Travel Over UK
19 June 2005

LONDON (Dow Jones)--A major air traffic control computer malfunction snarled airplanes over much of the U.K. Sunday causing nearly three hour take-off delays from London's Heathrow International Airport and forcing controllers to switch to manual operations and unusual flight patterns.

Caused by a widespread crash of some computerized British air traffic control systems, the delays rippled through European air space throughout the day and prompted some U.S. carriers to change flight patterns toward Europe in order to avoid the bottleneck.

The computer problem was so extensive that ground controllers at Heathrow resorted to giving departing aircraft flight instructions through 5,000 feet, something they usually don't do before the planes switch to departure controllers, people familiar with the situation said.

Departing and arriving flight paths were disrupted and controllers used special precautions and procedures to ensure that jetliners were adequately separated.

Pilots were providing extra information to controllers about their positions, speed, and directions because automatic safeguards weren't operating on the ground.

The delays were among the most severe pilots said they have encountered during the current summer travel season. The problem comes as European air traffic control is preparing for a particularly busy summer season with overall double-digit growth expected in its air traffic. Some regions of Eastern Europe anticipate increases of more than 50% in air traffic this summer.

The U.K. Control System is especially important because many planes arriving to Europe from the U.S. and elsewhere go through British air space.

In it for the long haul
Ian Burrell
20 June 2005
The Independent

British Airways" marketing chief Jayne O"Brien has had a tough time convincing the public that there"s more to flying than no-frills. But, as Ian Burrell reports, the fortunes of "the world"s favourite airline" are on their way up

Jayne O"Brien has every reason to sleep uneasily at nights " she is the woman in charge of shaping British Airways" public image as it fights a bitter battle for the global market in air travel. Not only does BA have to compete with the big long-haul carriers, but no-frill" airlines such as Ryanair and easyJet are nipping at its heels in its own backyard.

If O"Brien doesn"t look as if she suffers from insomnia, there"s a good explanation: it was her idea to introduce flat beds to international air travel. The fact that she sits on top of an annual budget of around £60m " making her one of the most powerful marketing executives in Britain " probably helps her to sleep a little easier as well.

Things are changing at BA. The airline is running its first television ad campaign aimed at businesswomen, launched on Friday. O"Brien has also introduced Kylie Minogue as a face of the airline, booked ads on Capital Radio to attract younger flyers and used Blue Peter (which staged a competition to "paint" an airliner) to market BA to families.

"Historically we have had a much stronger association with the business market," she says. "In the past we have been misunderstood that that"s all that matters to us." The common conception that BA is all about premium quality air travel for men in suits has given marketers at easyJet and Ryanair room to manoeuvre in the battle to appeal to passengers looking for budget weekend breaks.

O"Brien says that it"s "really difficult" to market a single brand that appeals to several different customer groups on very different levels. "It"s no secret that we"ve had to try harder. We"ve had to evolve. We continually look to develop our offering and our prices," she says.

Although O"Brien is adamant that BA short-haul fares now stand comparison with the no-frills carriers, she insists: "We don"t just want to be about price. That"s not what the BA brand is about." So the carrier"s core values remain "British", "reliable", "reassuring", "professional", "safe". For business travellers, the airline emphasises added extras designed to make long-haul travel easier, such as online check-in, flat beds and arrival lounges with showers.

After five years as BA"s head of marketing for the UK and Ireland, O"Brien has learnt to be inventive. (She praises media buying agency Zenith Optimedia for being an agent of change.)

BA has used P J O"Rourke, satirist and author of Holidays in Hell, as a face of recent TV ads, helping to dispel the airline"s image of being stuffy and old school. It has also established certain iconic images (such as large numerical figures to demonstrate low prices). She wants BA to come into people"s everyday lives in places they don"t expect. So ads have been taken on the receipts from ATM machines. ("When people are taking out money, it"s very relevant to say "only £69 to go to Paris".")

BA marketing staff have been despatched to Paddington station to give personal demonstrations to passengers on how they can save significant time in airports by checking in online and printing out their own boarding pass. The message is being driven home by actors who board the Heathrow Express train and perform in front of passengers, along the following lines.

Actor One (without golf clubs): "Ah Tom, you must be on the 12.30 up to Edinburgh."

Actor Two (with golf clubs): "No, the 11 o"clock."

Actor One: "You"re never going to make it."

Actor Two: "I"ve already checked in."

The pair then explain to passengers that they are actors and give details of the online scheme. O"Brien says she is a "big fan" of this form of "ambient" media.

Her marketing strategy is also informed by the internet, especially chat rooms such as flyertalk.com, which she monitors regularly and to which she has assigned a colleague who is authorised to post "official" BA views on the website.

Although she is attacking on many fronts, O"Brien insists that her strategy is an integrated one, banging home the message of reliability meets good service meets great price. "I"m a big fan of keeping it simple," she says. "Don"t put too many things in there; evolve it over time." The secret is to cut through what she describes as "marketing clutter". O"Brien says: "People see about 3,000 advertising statements a day. The challenge to the marketer is how you are going to get your message heard, engaged with and understood by the market."

Perversely, O"Brien"s position was helped by the 11 September tragedy. Although global air travel took a downturn, BA recognised the need to increase her budget to "market ourselves out of difficult times".

She is convinced that money allocated to sponsorship can be money well spent. "What sponsorship can do is talk to your target audience with something they"re interested in."

Rugby, says O"Brien, is "high on the priority list" of BA"s core market of business flyers. So the airline sponsors the Rugby Football Union and the current British and Irish Lions tour of New Zealand.

Sponsoring Kylie"s Showgirl tour was a good fit for a different part of the BA customer base. "She"s very on brand for us. She"s an icon in her own right with the fun, lively approach that she has. We also fly to Australia."

The latest ad campaign, Soft Beds, celebrates the fitting of a new foam to the BA fully reclining seats, and " remarkably " features a woman. "We researched the concept with customers and women were adamant she had to wear a suit and look like a businesswoman. It had to be absolutely clear she wasn"t going shopping," says O"Brien.

The campaign was made by long-term BA ad agency M&C Saatchi, in whose offices O"Brien is sitting. As she speaks, Maurice Saatchi, his giant spectacles perched on his nose, sits behind her on the other side of a glass partition, working at his desk.

The BA marketing chief knows that, while she needs to broaden the appeal of BA, she has to protect a much-loved brand. O"Brien says customers have told BA that they want the Union Jack and says it is a good example of "branding that has an emotional pull".

The marketing chief is a formidable operator, who studied Serbo-Croat at university ("it was a bit of a whim") and launched the recent renewal of BA flights to Dubrovnik on Croatian television, in Croatian. She also spent a couple of years in Mexico City managing BA"s Central and South American operation, and again the legacy of Thatcher came on to her radar.

"There was a lot of media interest because I was female. Every time I was interviewed they would ask what were the similarities between me and Maggie Thatcher. I couldn"t think of any " apart from the fact that we were both female."

Air traffic phone fault delayed London flights

LONDON, June 20 (Reuters) - Flights from British airports returned to normal on Monday after a problem with air traffic control's telephones and severe storms delayed some flights from the nation's capital by up to three hours over the weekend.

Authorities and airlines blamed a bottleneck at London's Heathrow Airport on a problem with the phones at National Air Traffic Services' (NATS) control centre at Swanwick, southern England, on Sunday.

The problem was compounded by heavy storms in Britain's north and an aircraft which blocked the runway at Heathrow for 40 minutes, airlines and airport operator BAA Plc said.

"It was a small glitch with the telephones at Swanwick which imposed some flow restrictions in the morning ... the impact was quite minimal," a NATS spokeswoman said.

However, airlines said flights were delayed up to three hours. Some passengers reported long delays on the tarmac at Heathrow while waiting for a backlog of disembarking passengers to clear.

A British Airways spokeswoman said it cancelled 16 flights and reported "a lot" of delays. Flights had returned to normal Monday.

NATS denied a media report the delay was caused by a computer malfunction.

British airports were thrown into chaos a year ago when a computer failure briefly grounded all aircraft in Britain at peak time in the morning.

NATS, 49 percent owned by the British government, is closing down its operation centre near Heathrow to transfer operations to an enlarged base at Swanwick as part of a 1 billion pound modernisation programme.

Friday June 24, 2005
British Airways Increases Fuel Surcharge

AP - British Airways PLC announced Friday it was again raising its fuel surcharge for tickets bought in Britain and blamed the increase on rising oil prices.

BA said it would charge travelers 24 pounds ($44) per long-haul flight, or 48 pounds ($88) for a return long-haul trip. That was up from 16 pounds ($29) per one-way, long-haul flight.

The short-haul fuel surcharge rose from 6 pounds ($11) per flight to 8 pounds ($14.50), or 16 pounds ($29) for a return journey.

The new surcharge rates only apply to tickets issued from Monday and bought in Britain. They do not apply to tickets already paid for and issued, the airline said.

"The continuing rise in global oil prices to almost $60 a barrel means a further surcharge increase is regrettably unavoidable," BA's commercial director Martin George said in a statement.

For tickets purchased in Britain, short-haul refers to any flights within the United Kingdom or Europe, and long-haul refers to all others, BA spokeswoman Becky Thornton said.

Earlier this week, BA increased its fuel surcharge for flights purchased in the United States and departing or arriving at a U.S. airport to $41 per flight, up $10, Thornton said. The surcharge for an onward short-haul flight within Europe purchased in the United States will remain at $12.

BA hasn't decided whether to increase fuel surcharges for tickets bought in other parts of the world, Thornton added.

The current surcharges for flights bought within Europe are $11 for short-haul trips, and $28 for long-haul journeys. For tickets purchased in other parts of the world, in most cases the surcharges are $31 for a long-haul flight and $12 for a short-haul trip _ meaning any onward flight within Europe, Thornton said.

BA introduced fuel surcharges in May last year. Since then, it has increased them four times. Other European airlines have raised surcharges amid surging oil prices.

George said BA expected its fuel bill for the current financial year to reach 1.6 billion pounds ($2.9 billion), up some 450 million pounds ($817 million) from the last financial year.

Last month, BA said it earned 251 million pounds ($467.31 million) in the financial year ending March 31, up from 130 million pounds a year ago.

Airline levy scheme sparks dispute with Treasury
By Barrie Clement
25 June 2005
The Independent

A plan to impose a £1 levy on all 50 million passengers travelling by air every year from Britain has sparked a dispute within the Government.

While the Department for Transport is understood to be in favour of the supplement, which would cover travellers when an airline went bust, the Treasury is making a last-ditch effort to block the initiative.

Supporters of the scheme are seeking to ensure its inclusion in the Aviation Bill which is receiving its second reading on Monday.

The Treasury is arguing that it is a superfluous piece of regulation and that customers themselves should ensure they are covered.

The Department for Transport is understood to back the plan on the grounds that it would replace existing regulatory law which is unsatisfactory because it covers only a proportion of passengers.

Those who book their flights through tour operators are repatriated free of charge under the statutory Air Travel Organisers Licence (ATOL), but passengers who book direct with airlines could find themselves without cover.

The plan was proposed by the Civil Aviation Authority, the industry"s regulator, and has attracted the backing of much of the travel industry and the House of Commons Transport Committee.

Supporters of a blanket scheme point out that after the terrorist attacks on 11 September 2001, which caused virtually unprecedented financial problems for the airline industry, there is a need for more comprehensive cover. Rising oil prices are causing severe problems for airlines and industry leaders believe a major financial collapse could be imminent.

The Treasury"s opposition to the plan is backed by an unholy alliance involving British Airways and Ryanair, although Virgin is understood to have sent a letter to ministers in support of the policy. A spokesman for Virgin said the airline believed the present system was "antiquated" and supported the CAA"s proposal because it would be an industry-wide arrangement replacing ATOL.

Proponents of the scheme point out that 98 per cent of passengers were covered by ATOL in 1997, but that this has declined to nearer 60 per cent because of the growth of direct booking with airlines and "DIY" holidays. If passengers pay through credit cards they enjoy a degree of protection. Debit card payments and travel insurance offer no cover.

Tour operators believe the present system is haphazard and leads to widespread confusion about whether customers are protected. They also calculate that the ATOL system costs them £100m a year.

The Federation of Tour Operators (FTO) argues that a system funded by the whole of the industry would mean reduced prices for package holidays.

A Mori survey commissioned by the association of British Travel Agents and the FTO last autumn found that 81 per cent of respondents would be willing to pay between 50p and £2 for comprehensive financial protection.

The Trading Standards Institute believes the law has failed to keep up with changes in the way people arrange holidays.

A BA spokesman said: "We are a well established airline and it is unfair that our customers should have to fund compensation for those who choose to travel on less established airlines. Due to our passenger volumes, we would have to provide the lion"s share of the funding to provide protection against other airlines" bankruptcy."

A spokeswoman for Ryanair said it was wrong for passengers booking on successful airlines to be asked to subsidise passengers booking on "financially flaky" airlines.

"It is like asking Chelsea to give points to relegated teams at the end of every season or like asking Labour to give seats to the Tories after every election win. This proposal is stupidity personified and we totally oppose it," she said.

Heathrow is showing signs of terminal decline
The world's busiest international airport - with its shabby appearance, wonky trolleys, uninspiring shops and poor traffic flow - paints the UK in a very poor light.
By TYLER BRULE
25 June 2005
Financial Times

The world's busiest international airport does its best to be anything but international. This is both offensive and a wasted opportunity

Of all the terminals in all the world, I probably spend the most time in Heathrow's terminal one. I've never been much of a fan, but if you want to reach most places on the continent, if you frequent LAX and Narita and BA is your carrier of choice, then you come to accept T1 as a frustrating fact of life. Over the past few years there have been some decent improvements but the sum of these innovations are still outweighed by poor traffic flow, outdated signage and a general feeling of shabbiness. I have a slightly odd relationship with Heathrow - I love it because it just manages to function on a daily basis and loathe it because it is a rather scruffy representative for London, the UK and even Europe.

This week I managed to make an early escape from London's West End and made my way to Heathrow early Wednesday morning for the first BA flight to Stockholm. Most mornings the Heathrow Express whisks me westward with little fuss but when a flight is closer to 7 than 8, I'm occasionally tempted to call a car to enjoy 45 extra minutes of slumber in the back seat. Pulling up to T1 during the morning crush is a particularly off-putting experience. Even at the unsociable hour of 6.30 there are usually at least two baggage trolleys sitting listlessly kerbside - one has lost a back wheel and will spend the rest of the day blocking hassled travellers. It will in turn be kicked, shoved and manhandled but no one will ever remove it to administer necessary first aid. Further down the drop-off area, another trolley has been backed into and has taken on the appearance of a kneeling camel. It too will remain there for the day, perhaps two, maybe a week. It will meet an undignified end by being backed over again by a mini-cab driver in an equally clapped out Nissan Bluebird.

I've often wondered where Heathrow's baggage trolleys hail from? The only DNA they might share with trolleys at other airports is that they (usually) have four wheels and a push bar. They are otherwise unlike the baggage trolleys at Frankfurt, Changi and Schiphol, which feel like they've been produced by companies familiar with the process of making a chariot that's easy to push, can ride on escalators and keeps bags in place.

The best thing that's happened to T1 was the opening of a dedicated British Airways/Oneworld premium check-in area. In an ideal world the passenger should have the possibility to go straight into the lounge after security rather than trip over the latest fragrance launch from Calvin Klein or a skincare promotion, but these things happen when an airport operator can't quite decide if it wants to be in the business of hosting the world's airlines and their passengers or running a shopping mall.

BAA cannot be faulted by shareholders for maximising available retail space by cramming in as many shops as possible and keeping the weary traveller on their feet. They can be scolded for having an uninspiring mix of shops and still not mastering the art of keeping their loos clean and odourless. Heathrow's loos are far better than many others around the world but the benchmarks should be Kansai, not Lagos.

The recently opened retail expansion at T1 is about as dynamic as a suburban mall in a provincial market town. The worst offender of the lot is WH Smith. For a company that's been churning out less than stellar results, the assumption should be that Heathrow is an environment in which to shine and to demonstrate its competence as a seller of newspapers and sweets. This is far from the case. Not forgetting where we are (a place populated by high-spending travellers from across the planet), the expectation is that the newsstands should be teeming with titles appealing to the Danish shipping executive heading to Hong Kong, the Edinburgh history professor jetting to UCLA for a seminar and the Spanish luxury goods analyst off to Madrid to scout for some new acquisitions. Instead, the titles on offer are parochial and hopelessly middle England - tons of trashy weeklies, a few predictable glossies and news titles and virtually nothing international other than Stern, Oggi and Paris Match. The newspaper selection is even worse. Just as Heathrow as a transport hub does little to engage with non-English speakers, WH Smith's management seems to think it's catering to charter passengers who only fly once a year. Should you be fortunate enough to find something to purchase, the check-out process seems to move slower than the security queues.

With terminal five looking like it could easily be completed by Christmas, BAA and its partners need to work on the culture of the place as much as the construction. Some people argue that grocery stores say everything about a country, but I say its airports reveal more. In its current state, Heathrow says a lot for the UK. None of it particularly good.

Virgin Atlantic launches inaugural flight to Havana ahead of regular, twice-a-week service
27 June 2005

HAVANA (AP) - Virgin Atlantic was to launch an inaugural flight to Havana Monday ahead of regular, twice-a-week service from London's Gatwick Airport beginning in July.

British billionaire and Virgin Express Holdings Plc chief Richard Branson and British boxer Amir Khan were among those to be on Monday's flight, set to arrive in the afternoon.

Weekly flights on Thursdays and Saturdays between London and Havana were to begin July 7.

Heathrow is showing signs of terminal decline
The world's busiest international airport - with its shabby appearance, wonky trolleys, uninspiring shops and poor traffic flow - paints the UK in a very poor light.

LOL... "Wonky" :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl:

Virgin Atlantic plans 1,000 new posts by 2007

LONDON, June 27 (AFP) - Virgin Atlantic on Monday said it planned 1,000 new jobs over the next 18 months as part of a major expansion for the airline, despite being faced with extra costs as oil prices surge to record high points.

Virgin, 51-percent owned by British tycoon Richard Branson's Virgin Group and 49-percent by Singapore Airlines, said it would recruit a total of 1,500 employees by 2007, though 500 of the positions would result from natural staff turnover.

Virgin Atlantic currently employs about 8,500 staff worldwide.

The recruitment drive is part of an expansion programme announced by Virgin last year, which includes also the introduction of new routes and planes.

The airline launched on Monday new routes to Cuba and The Bahamas, coinciding with an increase to the fuel surcharge on all of its flights by up to 50 percent, as the price of crude oil headed towards 61 dollars for the first time.

"We are delighted to announce that Virgin Atlantic is continuing its expansion plans with the recruitment of 1,500 staff and the addition of more exciting destinations to its route network," Branson said in a statement on Monday

He said that at a time when the airline industry is up against high oil prices, with many companies "struggling to survive", Virgin Atlantic has recently added services to Sydney, Mumbai and Havana and will launch services between Manchester to Barbados later in 2005.

The 1,500 positions would meanwhile mainly be for operational staff, with as many as 1,100 cabin crew positions, 150 flight deck and 150 posts, including many engineering jobs, based at London's Heathrow and Gatwick airports.

About 100 further staff would be required at Virgin Atlantic's headquarters and in office-based positions.

Over the next 18 months, Virgin plans to increase services to Shanghai, Las Vegas, Orlando, Port Harcourt, Dubai and Jamaica.

In addition, Virgin's fleet was set to expand with seven A340-600 aircraft entering service by the end of 2006, taking the total number of aircraft to 39.

Virgin Atlantic has joined rival British Airways in hiking the fuel surcharge on one-way long-haul journeys to 24 pounds (36 euros, 44 dollars) from 16 pounds.

Britain's Virgin Atlantic inaugurates flights to Cuba

HAVANA, June 27 (AFP) - Britain's Virgin Atlantic Airways inaugurated direct flights to Cuba on Monday with a Boeing 747 carrying the airline's gregarious owner Richard Branson.

The airline tycoon posed on the jet's wing with two Cuban dancers after the plane touched down at Havana's Jose Marti airport, as flight attendents hoisted the Cuban and British flags.

The British jumbo jet was met by an official welcome committee including Cuba's minister of tourism Manuel Marrero and the president of the Institute of Civil Aviation Rogelio Acevedo.

Branson hopes to tap into rising British tourism to this communist-ruled Caribbean island.

The number of British tourists visiting Cuba passed 46,000 in 1997, and 161,200 Britons visited Cuba last year, according to Cuban figures.

Tourism is vital to Cuba's economy, generating some 40 percent of its foreign currency earnings.

Last year, a record two million tourists visited Cuba, according to Marrero.

Virgin will operate two flights a week to Havana from London's Gatwick airport.

UK's bmi to launch Saudi flights from September

LONDON, June 28 (Reuters) - British airline bmi [BMID.UL] said on Tuesday it would start flying three times a week from London to Riyadh in Saudi Arabia from September.

Bmi has been eying the new route since British Airways suspended its flights to Riyadh and Jeddah in March, citing reduced demand.

"Bmi will be the only British carrier offering scheduled services to Saudi Arabia," Chief Executive Nigel Turner said in a statement.

The airline said flights would operate from London on Tuesday, Thursday and Sunday.

Bmi, formerly known as British Midland, is looking at other new long-haul routes as it seeks to expand. It started flying to Bombay in India last month.

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.

anyone got any recent T5 construction pics?

British Airways Revised Profit Report
4 July 2005

LONDON (AP) - British Airways PLC revised its annual profit upward Monday as it announced figures in line with International Financial Reporting Standards.

The airline said net profit for the year ended March 31 was 377 million pounds ($664.18 million), up from the 251 million pounds it reported under the old accounting guidelines in May. Full-year revenue was 7.77 billion pounds ($13.69 billion) under the new guidelines, compared to 7.81 billion under the old guidelines.

"The impacts of new accounting rules on our income statement are minor. However, there will be a significant impact on our balance sheet," said John Rishton, British Airways' chief financial officer.

Rishton said under the international standards net assets at March 31 were reduced by 1.3 billion pounds ($2.29 billion) to 1.4 billion pounds ($2.47 billion), mainly due to moving the pension deficit onto the balance sheet.

anyone got any recent T5 construction pics?
http://www.globalphotos.org/frankfurt/20050424/RIMG0282.jpg

BA's June passenger traffic rises 4.7 pct

LONDON, July 5 (Reuters) - British Airways posted a 4.7 percent rise in June passenger traffic on Tuesday as it sold more premium seats than a year earlier and said it recently increased hedging to protect against soaring fuel costs.

Europe's second-largest airline said its passenger load factor, which measures how efficiently it is filling its planes, rose 1.2 percentage points to 78.9 percent in June. Premium traffic was up 8.6 percent.

"That was at the very top end of our expectations," George Stinnes, BA's head of investor relations, told reporters on a conference call.

A 1.6 percent fall in cargo volume meant BA's overall load factor was unchanged from the same month a year earlier at 71.2 percent.

BA said market conditions were broadly unchanged but it had increased its hedging on oil. Hedging cover for the financial year to next March 31 is now 70 percent of its fuel needs at an average cost of $42 a barrel versus earlier guidance of 60 percent at an average of $40.

For the year to March 2007, it now has 30 percent cover in place at an average of $46, up from 20 percent at an average of $44, a spokesman said.

The airline reiterated a forecast made two weeks ago that fuel costs for the year to March 2006 were expected to rise by 450 million pounds ($790 million).

Edinburgh airport secures Helsinki route
Alastair Dalton
7 July 2005
The Scotsman

EDINBURGH airport yesterday secured a second new European route in a week with Finnair announcing a twice-weekly service to Helsinki.

The airline hopes the link to the Finnish capital from next April will attract passengers en route to Asia by claiming the fastest connections to the continent.

Finnair will launch a new service between its Helsinki hub and Guangzhou in southern China in September to supplement its routes to Hong Kong, Beijing and Shanghai. The Edinburgh flights will operate on Wednesdays and Sundays. .

The news comes days after Polish no-frills carrier Centralwings announced thrice-weekly flights between Edinburgh and Warsaw from October.

Petteri Kostermaa, Finnair's vice-president for network strategies and management, said: "We are especially expecting a great number of connecting passengers to our Hong Kong and Guangzhou routes thanks to the historic commercial connections between Scotland and southern China."

Richard Jeffrey, the managing director of Edinburgh airport, said: "Finnair has a reputation for quality and a network of routes that stretches across the globe, particularly Asia."

UK NATS June flights up 7.5 pct yr-on-yr to new record of 210,023
11 July 2005

LONDON (AFX) - National Air Traffic Services (NATS), the UK's leading air traffic management provider, said it handled 210,023 flights in June 2005, up 7.5 pct on the previous year and a new monthly record.

NATS said traffic peaked on Friday July 1 when NATS air traffic controllers handled 7,611 flights, a new daily record.

In the first six months of 2005, NATS handled 1,108,587 flights, an increase of 5.7 pct over the same period last year.

UK BAA's June passenger traffic rises 4.3 pct

LONDON, July 11 (Reuters) - Britain's biggest airport operator, BAA Plc, said on Monday June passenger traffic rose 4.3 percent year-on-year, as all its airports recorded higher traffic.

BAA, whose seven airports include London's Heathrow, Gatwick and Stansted, said it carried 13.4 million passengers in the month, adding that the European charter market remained subdued.

In the 12 months to the end of June, BAA's UK airports handled 143.0 million passengers, an increase of 4.7 percent on the previous 12 months.

Low-cost airlines have driven passenger growth in recent years and BAA said European traffic rose 5.7 percent in June.

The company, due to hold its annual shareholder meeting this week, has previously flagged a slowdown in the recent high rate of passenger growth this financial year.

British Airways , Europe's second-largest airline, said last week its June passenger traffic rose 4.7 percent year on year.

BAA said while air transport movements rose 4.6 percent in June, cargo tonnage grew 0.4 percent, "reflecting a worldwide slowing in air cargo growth".

Swedish budget carrier FlyMe delays Stockholm-London route launch following terrorist attacks
11 July 2005

STOCKHOLM, Sweden (AP) - Swedish low-cost carrier FlyMe Europe AB said Monday it will delay the start of a new route between Stockholm and London following the terrorist attacks in Britain.

FlyMe initially planned to start flying between Arlanda airport outside Stockholm and London's Gatwick airport on Oct 3.

"The market development will be decisive for when FlyMe starts flying to Gatwick," acting chief executive Fredrik Skanselid said, adding that the company will decide on a new date in the coming weeks.

"We are a low-cost carrier and want the best market situation. We want to wait for some weeks to see how the attacks in London will affect travel," he said.

The Goteborg, Sweden-based airline flies to destinations in Sweden and Finland year-round and to Nice, France, in the summer.

Short-haul lifts BAA to record Traffic figures for Scottish airports reflect skyrocketing demand
DOUGLAS HAMILTON
12 July 2005
The Herald

BAA said yesterday that its three Scottish airports are handling record numbers of passengers this summer.

Short-haul flights to continental Europe and some of the Persian Gulf states are attracting large numbers of Scottish travellers, the airports operator said.

The company's latest traffic figures show that 1.9 million passengers used Glasgow, Edinburgh and Aberdeen airports in June, an increase of 7.1% on the same month last year.

In the 12 months to June, the airports handled more than 19.6 million passengers, up 6.2% on the previous year.

"All three airports saw international traffic rise substantially last month, marking the start of what promises to be a record summer for BAA Scotland, " said Donal Dowds, managing director of BAA Scotland.

Glasgow Airport was Scotland's busiest last month, with 890,800 passengers, up 4.3% on the previous record June.

Prague was the fastest-growing destination, with services to Barcelona, Dublin, Las Palmas and Dubai also performing well.

In the year to June, Glasgow Airport handled nearly 8.7 million passengers, up 5.3% on last year.

On June 14, GlasgowAirport celebrated an historic milestone as it recorded its 150 millionth passenger since the terminal first opened in 1966.

Edinburgh Airport was the fastest-growing of BAA Scotland's airports in June, handling 790,400 passengers, an increase of 9.6% on last year.

International traffic rose sharply, with flights to Hamburg, Copenhagen, Barcelona, Nice and New York enjoying the strongest growth.

In the year to June, Edinburgh Airport handled 8.2 million passengers, up 6.6% on last year.

The international travel boom continued at Aberdeen Airport, where overall passenger numbers rose by 9.3% to 257,900.

In the 12 months to June, Aberdeen Airport handled 2.7 million passengers, a rise of 7.4% on last year. In annual terms, Aberdeen remains the fastest growing of BAA Scotland's airports.

Meanwhile, Inverness Airport, which is operated by Highlands and Islands Airports Limited, handled 4900 passengers at the weekend, breaking the previous record 4400 passenger total set over the weekend of July 2 and 3.

BAA said passenger numbers for all its UK airports rose by 4.3% in June against the same month a year ago.

The company said travellers to India and China helped helped push up numbers.

BAA said a total of 13.4 million travellers passed through its airports last month, with the fastest growth taking place on long-haul flights other than across the North Atlantic.

Airlines appear to be taking advantage of the increase in business done by the UK in India and China, with growing numbers of firms outsourcing manufacturing and call centre operations to Asia.

In June, British Airways introduced a service from London to Shanghai after restrictions on direct routes between the UK and China were eased last year.

In addition to Shanghai, BA is also increasing the number of flights on its routes to Beijing and Hong Kong.

It plans to begin another new long-haul service in October to the Indian city of Bangalore.

Passenger numbers at Heathrow were 1.1% higher than in June last year, with long-haul traffic growth offsetting a contraction in short-haul services caused by the growing popularity of low-cost flights from other airports.

Passengers passing through Stansted increased by 9.2%, while Gatwick added 4.6% and Southampton posted the highest rise in the group, adding 31.7%.

Asian boom gives lift to UK airports
ALASTAIR DALTON and JOHN ROSS
12 July 2005
The Scotsman

THE boom in UK call centre and manufacturing operations being switched to Asia fuelled the biggest growth in air passengers last month, airport operators BAA reported yesterday.

BAA said numbers of non-transatlantic long-haul passengers, especially to India and China, soared thanks to a series of new routes after restrictions were eased last year.

The firm, which operates the three main London airports in addition to Edinburgh, Glasgow and Aberdeen, said total passengers were up by 4.3 per cent to 13.4 million in June compared to a year ago.

Long-haul markets, other than across the Atlantic, lifted by 11.1 per cent, compared to 5.7 per cent for European scheduled markets and just 0.7 per cent for North Atlantic routes.

New Asian services launched last month included British Airways flights between London and Shanghai. The airline is also increasing flights to Beijing and Hong Kong and plans to start flying to Bangalore in India from October.

However, BAA said it was too early to assess how last week's London bombings were likely to affect passenger numbers.

In Scotland, Edinburgh's passengers increased by 9.6 per cent to 790,400. The rise was smaller than May's 12.3 per cent, but puts the airport's year-on-year total within 500,000 of Glasgow's, at 8.2 million.

International traffic rose sharply, with flights to Hamburg, Copenhagen, Barcelona, Nice and New York enjoying the strongest growth.

At Glasgow, passengers increased by 4.3 per cent to 890,800 - the highest growth for five months.

Prague was the fastest-growing destination, especially due to Flyglobespan's service, with 100,000 using the route in the last year.

Aberdeen enjoyed further strong passenger growth, up 9.3 per cent to 257,900, although the rise was 1.6 per cent less than in May. Its fastest growing European destination was Bergen, followed by Groningen, Dublin and Amsterdam.

* New routes helped Inverness airport to set a new passenger record of 4,900 at the weekend, beating the previous best set just a week earlier.

EasyJet launched flights to Bristol last Thursday and to Belfast International service the previous week.

* National Air Traffic Services said it handled 210,023 flights in June - 7.5 per cent more than last year. The Oceanic area control centre at Prestwick in Ayrshire, which handles transatlantic traffic, dealt with 34,738 aircraft - up 6.6 per cent.

The Scottish area control centre saw flights increase by 1.3 per cent to 52,947.

Lady Thatcher mourns Lord King, the man who rebuilt BA
David Charter
13 July 2005
The Times

ONE of Baroness Thatcher's favourite businessmen, the man who transformed British Airways after masterminding its privatisation, died yesterday aged 87.

Lord King of Wartnaby was chairman of the national flag carrier for 12 years after being appointed by Margaret Thatcher in 1981 and was given the title of BA's president emeritus upon his retirement in 1997.

When British Airways was privatised in 1987, the shares were 11 times oversubscribed and their price jumped by 82 per cent on their first day of trading.

Lord King was a regular at Downing Street and a Boxing Day guest at Chequers who seemed to exemplify the swash-buckling, entrepreneurial spirit of Thatcherism.

Lady Thatcher said last night: "John King was an industrial trailblazer. He was one of a handful of able business leaders who worked to turn around the British economy in the 1980s. I shall very greatly miss him."

Lord Bell, Lady Thatcher's former media adviser, said that Lord King was an irreplaceable part of the Thatcher years. "He was a very active Conservative who transformed British Airways from a state-run company into the world's favourite airline," Lord Bell said. "He recruited Colin Marshall, who very much contributed to that, and he was a standard-bearer for British enterprise and the view that British business needed to serve their customers to succeed."

Martin Broughton, the chairman of BA, called Lord King "a dynamic, inspiring and formidable figure" who had led the airline through one of the greatest periods of change in its history.

It is understood that Lord King died in his sleep at his 2,000-acre estate at Wartnaby, Leicestershire.

UK airport operator BAA's Q1 performance in line

LONDON, July 15 (Reuters) - Britain's biggest airport operator, BAA Plc, said on Friday it was performing in line with expectations for the first quarter of the current financial year.

"Performance in the first three months of the year has been in line with these expectations," Chairman Marcus Agius said in a statement ahead of the firm's annual shareholder meeting.

Agius pointed to BAA's forecast for traffic growth of 3.5 percent at its London airports this year, and growth in net retail income per passenger of more than 1 percent.

BAA, whose seven airports include London's Heathrow, Gatwick and Stansted, had previously tipped a "robust" current year despite a slowdown in passenger growth off record highs last year.

BAA shares were up 0.2 percent at 607-1/2 pence by 1055 GMT.

BAA posted strong earnings last year on record passenger numbers and faster check-in drove up retail spending at its airports.

Passenger numbers have been rising as stiff competition from low-cost airlines drives down European ticket prices, while long-haul recovers from a downturn caused by the Iraq war and the outbreak of the SARS virus.

The company has said the impact of last week's London bombings on passenger numbers has been minimal so far.

BAA will face opposition from residents groups at its Friday meeting to plans for a third runway at Heathrow airport and a second runway at Stansted.

Agius warned a delay in building a second runway at Stansted, due for completion in 2013, would have wider implications. Airlines have opposed BAA's proposal to help fund the runway by introducing a levy on passengers at other airports.

"A delay in developing Stansted will result in less choice and higher air fares across the whole of the South East, with knock-on damage to UK economic competitiveness," he said in a speech to shareholders.

He also said construction of a fifth terminal at Heathrow was 60 percent complete and scheduled to open ahead of schedule on March 30, 2008.

BAA makes profits from aircraft take-off and landing fees, car parks, retail rents, airport advertising and duty-free shops. Unlike airlines, it is not exposed to high oil prices which have driven up fuel costs.

I wonder what BAA's long term ambitions are, as I have heard of BAA (which is already the world's largest airport operator), is intending to expand in Asia....


Current extent of BAA in the world:
http://www.baa.co.uk/assets/B2CPortal/Images/450px_worldmap.jpg

British Airways says to draw up new planes plan

LONDON, July 19 (Reuters) - British Airways , Europe's second-largest airline, said on Tuesday its board would review plans for new long-haul planes within nine months, though a fleet upgrade could wait several years.

Possible new aircraft include the Airbus A380 double-decker and Boeing Co.'s 777 and mid-sized 787, Chairman Martin Broughton told the airline's annual shareholders meeting.

"We are reviewing the options. A board paper will be coming within the next three months, certainly in the next nine months," Broughton said. "We are in the happy position that we don't need to make a decision yet (on fleet upgrades)."

"They are very much on our radar screen," he said of the 555-seat A380 model, but added that BA would wait to see how the plane performs for other carriers.

New Chief Executive Willie Walsh also addressed the meeting and told investors he expected to adhere to plans for reining in costs.

The former boss at Irish carrier Aer Lingus is set to replace CEO Rod Eddington, who steps down at the end of September to return to his native Australia.

Under Eddington, BA has axed 13,000 staff since 2001 and turned to increased use of online bookings and self-service check-in to improve efficiency.

"It's a strange thing for an Irishman to say about an Australian, but we speak the same language," Walsh told the meeting, referring to Eddington's firm stance on cost-cutting.

He said BA's business plan contained "priorities that I buy into completely", without elaborating.

BA shares were down 0.9 percent at 273 3/4 pence, while London's FTSE 100 index which was 0.24 percent lower at 1259 GMT.

BA is battling low-cost rivals Ryanair and easyJet , which are forcing down fares on short European routes and must contend with struggling U.S. carriers that are driving down transatlantic prices.

It raised its fuel surcharge on tickets bought inside Britain last month after oil prices touched $60 per barrel as it braces for a fuel bill expected to rise by 450 million pounds ($783 million) this year.

BA did not offer details on what impact, if any, recent bombings in London might have on its business.

"The recent atrocities in London serve to remind us of how vulnerable our business has become," the chairman told shareholders.

"However, since 9/11, the company's strategy has been entirely focused on ensuring it is sufficiently robust to withstand such external shocks."

Impediments remained to restarting dividend payments, but the issue was high on the company's agenda, he said.

($1=.5747 pound)

British Airways : Too Early To Assess London Blasts Impact
19 July 2005

LONDON (Dow Jones)--British Airways PLC (BAB) Chairman Martin Broughton said Tuesday it is still too early to assess what impact the recent terrorist attacks in London have had on the U.K. airline.

"The recent atrocities in London served to remind us how vulnerable our business has become. Ever since 9/11, the company's strategy has been entirely focused on ensuring it is sufficiently robust to withstand such external shocks," Broughton said at BA's annual general meeting.

In his pre-prepared speech, Broughton said the lack of a dividend remains an important concern. Broughton said an absence of distributable reserves remains a major impediment to recommencing dividend payments, but said the issue is high on the company's agenda.

The fight for BA's next set of wings
Oliver Morgan on why the omens are not good for Airbus's new superjumbo
24 July 2005
The Observer

Will BA put its money into Airbus 380s, like this one?
. . . or stay with the devil it knows, Boeing?

WANTED : high-performance vehicles to replace ageing models in big fleet operation. Not sure how many, not sure what kind, not sure when.

Despite being vague about what it wants, the fact that British Airways has confirmed it is looking to buy new planes for its long-haul fleet has set pulses racing in the large airline manufacture duopoly.

The timing almost guaranteed that excitement, coming a day before the bitter dispute between US and EU trade authorities over subsidies to American Boeing and European Airbus formally entered litigation proceedings at the World Trade Organisation.

The implications of BA's decision for Boeing and Airbus will be far-reaching; BA is one of the world's most influential customers. But Airbus has nothing to lose: that the three plane types currently in BA's 110-strong long-haul fleet all start with a Boeing 7, meant Tuesday's announcement was not necessarily good news for the Toulouse-based maker.

Martin Broughton, BA's chairman, seemed to pour cold water on Airbus's two star offerings, its A380 superjumbo and A350 hyper-efficient long range, mid-capacity 'point to pointer'. Of the A380, he said 'the jury is still out' and he believed the A350 was unlikely to be a principal long-haul aircraft at the airline.

Analysts were surprised. 'From what he said, BA is not going to buy the A350,' one said. 'I can't see why he would want to give away his negotiating position.'

What BA announced was that a paper on options was to be prepared for the board by the airline's fleet renewal team, headed by Robert Boyle, and acted on by chief executive-designate Willie Walsh.

But it is not in a tearing hurry. Its fleet is one of the youngest - averaging nine years old - and much of what it buys will be determined by what it already has. There is also the question of money. BA may have halved its debt since 9/11, but as one analyst said: 'They don't have the money, and the industry is likely to make a loss this year thanks to poor trading and oil prices'.

Nevertheless, BA's decisions will be significant for a number of reasons. First, pure size: it has one of the largest long-haul fleets in the world and its network is among the most far-reaching and varied, so it requires a wide variety of planes.

For several years Boeing and Airbus have held differing views on the evolution of air travel. Airbus believing that 'fat routes' - such as London to Sydney, Hong Kong and Los Angeles - need planes with a large number of seats. It maintains that such routes, which BA currently serves with 747s, will demand 1,400 very large planes like its A380 over the next 20 years. Boeing disagrees, saying the number of large-capacity planes needed will be around 350, arguing that real growth will be in the long-range lower capacity planes.

BA's decisions on how to match planes to its diverse routes will indicate who is winning the argument.

Boyle and his team have a fiendishly complicated task. There are real alternatives across the long-haul market. They must judge the likely growth of both the sector as a whole and its component parts. BA must stick within tight capital expenditure, still determined by debt and uncertain revenues. It will analyse the operating economics of the planes, passenger preferences, environmental issues and how new planes will fit with it current fleet.

Despite competition across all long-haul planes, will BA move from a Boeing-only fleet? After all, as one observer says: 'Competition is good for airlines. It gives them a choice and they can negotiate hard on price.' Will Airbus will be anything more than a bargaining chip? And will it discount price - thus possibly undermining returns - to win orders?

'We have talked about the benefits of fleet simplification [it did much of this after 9/11] and from a single family, but there are also technical benefits and commercial terms to consider,' a BA source said.

BA has 57 Boeing 747-400 jumbos. Airbus is hoping to sell the flag-carrier some of its 550-seat A380s, for which is has 159 orders and commitments , although first deliveries have been delayed.

In the spring Boeing confirmed it was considering an ultra-efficient '747 Advanced' that would increase passenger capacity from 420 to 450, and allow it to maintain a presence at the top end at a realistic development cost. It is expected to confirm the project this autumn. Boeing insists it is fill ing a gap between its own 777, which has a maximum 380 seats, and the A380's 550, so the two planes do not compete. One BA executive, however, said: 'We will consider both carefully, but it is very unlikely we will order both.'

Along with other airlines, BA has been encouraging Boeing to offer the 747 Advanced. This, taken with Broughton's 'jury is out' remark, and the reservations of other BA officials, makes the Airbus position appear weak.

'There are questions about [Airbus's] viability. They are only 60 per cent of the way towards break-even. The viability of the project affects the price they can offer.' On the other hand, all of this is to be expected at the outset of a commercial negotiation.

BA insists that the size and timing of orders is open to discussion. Its 747 fleet is rela- tively young; the oldest are 16 years old, four to five years from a typical retirement date. BA will be looking for deliveries in four to five years, but it is cagey about how many. 'Our core fleet remains young. The question is, at the margin what do you replace those planes you are retiring with,' said a source. He added that by the time orders are placed, Airbus may have sorted out the technical and economic questions and Boeing may have finalised its 747 Advanced.

The economics are even tighter in the middle capacity bracket, where BA has eschewed Airbus's A330 and A340 offerings, instead running 43 777s. These carry between 220 and 270 people to destinations such as Shanghai, Kuwait, Luanda and Jamaica.

It also has 10 767s carrying 180 to the US East coast and some African destinations. The 777s are its youngest planes, so there will be arguments over whether they need to be replaced. The 767s are likely to be wound down.

Airbus has a lot of work to do. A source said: 'This is not a priority from a replacement point of view,' adding 'getting more of the same [777s] is clearly one of the options'.

Boeing has its long-range, efficient 787 'Dreamliner', which can carry between 200 and 250 people and has attracted 252 orders and commitments.

Airbus has its A350, for which is has 120 commitments, but Broughton's remarks have caused concern. However, other sources at BA say that while 'the A350 is still evolving', the chairman was not ruling it out. His remarks were about whether BA needed this class of jet and so referred also to the 787. That seems clear-cut - except that the same person said there were clear advantages to both.

There is a lot for BA's head honchos to ponder. What is likely is that they will stir the competition as much as possible in the process.

Broughton: 'The jury is still out.'

One in four flights late as peak-hour congestion hits airport
30 July 2005
The Scotsman

PASSENGERS using Edinburgh airport have suffered some of its worst-ever delays, because of peak-hour congestion at the fast-growing hub.

Demand for flights in the morning and evening rush hours contributed to more than one in four scheduled services arriving or departing late between January and March.

Punctuality slumped by 5 per cent to 73 per cent compared with last year in the joint worst performance - with Luton - of any major British airport after Heathrow.

"On time" is measured as flights arriving or leaving less than 15 minutes late.

Passengers at Edinburgh suffered average delays of 16 minutes, four minutes more than in 2004, the Civil Aviation Authority (CAA) figures showed.

The figures reflect the price of Edinburgh's rapid passenger growth to 8.2 million a year - double that of eight years ago.

Nearly half of its passengers are business travellers - a much higher proportion than at many airports - and a high percentage travel to London at peak times.

Up to six flights are scheduled to depart at the same time at the height of the peaks, which are from 5-7am and 4-7pm.

The timekeeping of charter flights at Edinburgh improved by 1 per cent to 58 per cent, but this remains the worst among major airports.

Average delays increased by five minutes to 29 minutes.

While charter operations account for a small proportion of total passengers at Edinburgh, they comprised up to 20,000 passengers a month in this period.

By contrast, Glasgow Airport was the most punctual - along with Newcastle. A total of 79 per cent of scheduled flights were on time, although this was 3 per cent worse than a year ago.

Charter services scored 76 per cent punctuality, up 3 per cent.

BAA Scotland, which runs both Edinburgh and Glasgow airports, admitted that the higher concentration of passengers at peak times at Edinburgh was causing "a real challenge".

While Glasgow is growing almost as fast as Edinburgh, just 29 per cent of its passengers are business travellers, compared with 42 per cent at its east coast counterpart. In addition, three-quarters of passengers at Edinburgh are travelling within the UK, many of them to and from London, compared with just over half at Glasgow.

Malcolm Robertson, a spokesman for BAA, said: "A high volume of business traffic at Edinburgh Airport dictates that, at peak times, we are busier than many other airports in the UK."

He added: "These obvious peaks across the day create a number of operational challenges for the airport, in terms of providing enough capacity and staff to manage the extra demand, but doing so efficiently and economically and in a way which protects the airport's competitive advantage, from which Edinburgh and Scotland benefit."

Mr Robertson said that BAA encouraged airlines to operate services at less busy times at Edinburgh, but it would not turn business away if they insisted on peak-time slots.

He said: "If such demand continues, we will have to look hard at what extra investment is required."

However, he added that BAA was not aware of any concern from airlines already operating at the busiest times.

Mr Robertson said BAA accepted that charter-flight punctuality at Edinburgh was poor, but problems affecting a single airline could have a disproportionate effect on the figures because of the small numbers involved.

BAA was spending "millions of pounds a year" developing the airport, which should improve the current situation, Mr Robertson added.

The CAA figures showed Istanbul was the airport with the worst punctuality among the top 75 destinations from Britain, where just half of flights operated on time.

Passengers at Toronto airport suffered the longest delays.

Flag carrier adds new routes
Angela Jameson
6 August 2005
The Times

BRITISH AIRWAYS is to fly to Iceland and Albania for the first time next summer (Angela Jameson writes).

The new routes, two of four that are to be launched next year, confirm the recovery of BA's short-haul business, which has had to respond to passenger interest in less traditional European destinations.

All the routes will leave from Gatwick, where ten new destinations have been added in the past year as part of BA's strategy to create a leisure hub for short haul direct flights.

BA hopes the routes will attract holidaymakers as well as friends and relatives travelling to and from the UK.

Passengers will be able to fly to Tirana, Albania's capital, from March with tickets priced from Pounds 205. BA will fly to Reykjavik, the capital of Iceland, five times a week with prices from Pounds 149 return. Flights to Varna, on Bulgaria's Black Sea coast, will also begin in late March, with prices from Pounds 149 return.

A new service to Izmir, Turkey's third-largest city, will operate three times a week and also cost Pounds 149.

Flight chaos as computer crash hits Britain"s air traffic control
By Barrie Clement Transport Editor
25 August 2005
The Independent

Thousands of flights out of Britain were cancelled or delayed after air traffic control systems crashed yesterday.

The chaos was made worse by a simultaneous computer failure at Maastricht in Belgium which covers airspace over much of north-western Europe.

At one stage, all commercial flights from British airports were grounded, causing long queues at check-ins.

A spokesman for National Air Traffic Services (Nats) said the disruption had been made worse by bad weather across Europe but added that the company hoped delays caused by the computer failure would be reduced to 10 minutes by the end of the day.

The disruption was caused by a glitch in an elderly computer at Nats centre in West Drayton in west London, which provides key information to controllers at the site and to their colleagues at Swanwick in Hampshire, Manchester and Prestwick in Scotland. An investigation was still under way into the causes of the problem.

The breakdown forced British Airways to cancel 22 services from Heathrow, where delays to other flights averaged an hour. Six services from Gatwick were cancelled and delays at regional airports were as long as two hours.

The computer at West Drayton near Heathrow went down at 9.30am for just 20 minutes, but the disruption came at a peak time of the year.

Hayden Evans, a controller at the new Swanwick centre and chairman of the Prospect union there, said: "It was quite a difficult situation. This is the busiest time of the year and people are working flat out.

"This was a major problem as far as controlling planes is concerned. It was a pretty massive achievement to get the system back to normal by 11am."

The computer at West Drayton produces flight progress strips for use by controllers. The pieces of cardboard show the last instructions given to pilots by overseas controllers before they fly into British airspace, including the flight number, call sign and height of the in-bound services. The British controller then assumes responsibility for the flight and issues further instructions.

Controllers" radar screens on which details of the flights appear remained functional throughout and controllers were able to speak to pilots and to controllers overseas to fill in the missing information.

That meant a substantial increase in workload and Nats decided to ground all flights preparing for take off at all the main British airports so that staff could deal with incoming aircraft and other planes already airborne.

A spokesman for Nats said about 80 per cent of capacity had been restored by 9.50am and full capacity was achieved by 11am. But disruption continued as staff struggled to deal with the backlog. No inbound flights had been affected, but short-haul aircraft preparing to take off for British destinations had been delayed.

In February, the same part of the system collapsed but the disruption was more limited because it was there were less flights operating.

Yesterday"s mysterious computer failure also came just over a year after a bizarre electronic breakdown at the same West Drayton centre, which affected 200,000 passengers.

Meanwhile, leaders of the Transport and General Workers" Union are hopeful that talks can resume today over the dispute involving the catering firm Gate Gourmet. Stoppages as a result of the dispute caused the cancellation of hundreds of flights.

BA chief says airline will bounce back from strike Rod Eddington insists his company will not be brought down by wildcat action
By ALISON MAITLAND
24 August 2005
Financial Times

British Airways' handling of its catering contract with Gate Gourmet is "absolutely not" at the root of the industrial strife that has brought chaos to passengers this summer, according to Sir Rod Eddington, the airline's chief executive.

In an interview, Sir Rod justified the outsourcing of BA's in-flight meals and said the airline had treated the management of its relationship with Gate Gourmet, its sole catering supplier at Heathrow, with the importance it deserved.

He also rejected any suggestion that the UK's flag-carrier should have been better prepared for the wildcat strike in sympathy with sacked Gate Gourmet workers that caused a third consecutive summer of disruption to BA flights. "Our most senior trade union rep told me he didn't see this coming," he said.

Sir Rod said most airlines had, quite rightly, sold their flight kitchens to catering companies. "BA sold its catering arm to Swissair in 1997 and this became Gate Gourmet. Swissair then sold it to Texas Pacific in 2002, a business deal we naturally had no involvement in.

"Since then we have worked closely with Gate Gourmet. As Gate Gourmet's problems were made apparent to us in recent months, we ramped up our efforts to help the company considerably. We put a new, extended commercial deal to Gate Gourmet with increased revenue to ensure business stability and the future of the company."

The extended contract, offered by BA in July, was conditional on the catering company's resolving its industrial relations problems and gaining agreement on redundancies and reforms to working practices.

BA's management was taken completely by surprise when baggage handlers, bus drivers and cargo workers walked out, paralysing operations and stranding more than 100,000 passengers around the world.

There was chaos in 2003 when check-in staff staged an unofficial strike over new clocking-in procedures, and last year employee shortages caused flight cancellations during one of the busiest summer weeks.

Although hot meals have only this week been restored on long-haul flights from Heathrow, Sir Rod pointed out that BA had managed to get its flying programme back to normal in record time. "I am the first to put my hand up and say that the problems of the previous two summers were problems originating in BA. But this disruption was not, and I do not believe that even our harshest critics would say that we should have seen this one coming."

He said his first concern was customer welfare when the Gate Gourmet dispute stopped catering supplies. "As such, we acted swiftly to provide food in the Heathrow terminals in a variety of places. This plan of action was working well and our customers were stoical about what was happening, happy at least to be flying as planned."

But when things escalated with the unofficial sympathy action by BA employees, he was saddened and frustrated, he said.

"This was not BA's fight and for some of our staff to walk out in support of another company was an outrageous and a bitter blow . . . When the problem was solely a lack of on-board catering, we were coping extremely well."

The airline had "well-honed procedures" for coping with disruption, which were demonstrated by the speed with which flights got back to normal.

Asked if he had shied away from confronting trades union power at Heathrow, Sir Rod asked whether anyone enjoyed confrontation. "The trick is whether you run from it or face up to it and I have never been one to run away from it," he said. "Neither is it as simple as being too soft or too hard on unions or indeed any other party, be they staff or suppliers.

"At the end of the day, we are all partners in thisbusiness and its success is mutually dependent oneveryone pulling together to achieve the same business goals. This approach has allowed us to deliver major changes at BA over the last few years, including a substantial reduction in the workforce."

Sir Rod said he was confident that employee morale would recover quickly from the problems caused by the unofficial strike.

"Most of our people are focused on our recovery," he said. "They show a remarkable resilience and ability to bounce back from such challenges. There is no doubt in my mind that is exactly what they will do this time, once we have had time to lick our wounds and move on - and we will do that swiftly."

British Airways to overhaul customer operations

LONDON, Sept 1 (Reuters) - British Airways, Europe's third-largest airline, said on Thursday it would reorganise its customer service and operations division following the retirement of a senior executive.

The revamp, which places three executives in charge of key operations headed by outgoing director Mike Street, follows a strike by BA ground crew at London's Heathrow Airport last month which stranded more than 100,000 passengers.

The airline's current director of safety and security Geoff Want will become director of all ground operations following the previously-announced retirement of Mike Street at the end of September.

Want will also be responsible for the airline's move to a single terminal at London's Heathrow Airport in 2008, BA said in a statement.

In-flight service will come under the responsibility of BA's director of marketing, Martin George, in a move the airline said would align product development and delivery.

Robert Boyle, currently in charge of network and fleet planning, will take charge of all commercial and operational planning under the revamp.

"This organisation places them under the stewardship of three very capable directors when Mike Street retires at the end of the month. Our focus in the meantime will be to ensure a smooth and efficient handover," Chief Excecutive designate Willie Walsh said in a statement.

Walsh replaces current chief Rod Eddington who retires at the end of the month.

BA's operations at Heathrow have been hit with disruptions for the last three summers. Its in-flight meals service has also been rattled this summer due to an industrial dispute at its caterer Gate Gourmet.

BA shares were trading 0.3 percent firmer at 278 pence at 1428 GMT.

Heathrow extols success of T5 amid catering dispute
By KEVIN DONE and ANDREW TAYLOR
2 September 2005
Financial Times

As the industrial relations dispute at Gate Gourmet, the British Airways caterer at Heathrow, worsened yesterday, elsewhere on the airport site BAA, the airport operator, was extolling labour relations at its flagship Terminal Five construction site.

For three years in succession BA, the biggest airline at Heathrow, has suffered severe disruption during its peak summer season, with its latest woes three weeks ago triggered by a sympathy strike by 1,000 staff in support of more than 600 sacked workers at Gate Gourmet.

Less than a mile from the Gate Gourmet catering plant at Heathrow is one of the biggest construction sites in Europe and in nearly three years it is yet to lose a single day's work through industrial disputes.

BAA said the Pounds 4.2bn T5 project was 65 per cent complete. It was on time and on budget, as it moved towards a commissioning date of March 30, 2008. It will be occupied by BA, which for the first time in its history will be able to operate under a single roof at Heathrow, its global hub, instead of having to spread its operations across different terminals.

The airline has embarked on a crucial programme to reform its own working practices at Heathrow under the slogan "Fit for Five".

But BAA has managed so far to insulate the T5 building site from the industrial relations problems evident elsewhere at Heathrow, in spite of having to manage around 100 suppliers and a construction workforce that is set to grow to around 7,500 workers this autumn.

Yesterday Alistair Darling, transport secretary, performed the topping out ceremony on the main T5 building to mark completion of the structure, which by 2008 will add a capacity to handle around 30m passengers.

Tony Douglas, BAA managing director of T5, said the scale and complexity of the construction project had "challenged all of us to think, behave and work differently" with integrated teams and innovative management of risk and industrial relations.

BAA was currently spending on T5 at a rate of Pounds 4m a day, said Mr Douglas, and he acknowledged that industrial relations remained a "real risk" to the project.

From the outset BAA had set out to "work constructively" with the trades unions, he said. But it had also offered highly competitive pay and conditions as it sought to attract "the best people", particularly in sectors where there are skills shortages in the south-east. In the traditionally low-paid areas of employment at Heathrow, such as catering, volatile labour relations remain a serious threat.Yesterday David Siegel, chief executive of Gate Gourmet, was accused of trying to scupper a redundancy deal aimed at ending the long-running labour dispute.

The Transport and General Workers Union attacked comments made by Mr Siegel on his refusal to take back "militant or disruptive employees". The comments were made before the outcome of a voluntary redundancy and compensation scheme agreed with the union is known.

BA says August passenger traffic hurt by strike

LONDON, Sept 5 (Reuters) - British Airways, Europe's third-largest airline, said on Monday its August passenger traffic fell 0.7 percent after a strike disrupted its flights at London's Heathrow Airport.

BA also said volatile fuel prices and exchange rates made forecasting more challenging than usual but did not change its previous market forecasts.

Market conditions remain broadly unchanged, BA said.

The airline said in a statement its load factor, which measures how efficiently it is filling its planes, was up 0.2 percentage points to 77.9 percent in August.

The results were hit by a strike by BA ground staff last month.

More than 100,000 BA passengers were stranded when staff went on strike in sympathy with sacked workers at the company's catering firm.

More than 700 flights were cancelled, disrupting services at the peak of the summer holiday season.

BA did not announce any increase in its fuel surcharges although the airline has not ruled out the possibility. Oil prices hit a record $70.85 a barrel last week.

One of my favourite threads here. Thanks for all the effort, hkskyline. Keep it up :okay:

Thank you. :)

Thursday September 8, 8:29 PM
BA raises fare fuel surcharge after Hurricane Katrina

http://us.news3.yimg.com/us.i2.yimg.com/p/afp/20050908/capt.sge.fxp97.080905122907.photo00.photo.default-390x264.jpg?x=380&y=257&sig=7EtcaulLvDXjQWhJKDn5RQ--

LONDON (AFP) - British Airways announced it would increase by 25 percent the fuel surcharge on its long-haul flights to offset surging fuel costs in the wake of Hurricane Katrina.

"Our fuel costs remain a real burden," BA commercial director Martin George said Thursday. "The price of oil hit a record high of just over 70 dollars per barrel in the aftermath of Hurricane Katrina."

BA said the long-haul fuel surcharge on one-way tickets sold and issued in Britain would rise to 30 pounds (44 euros, 55 dollars) next Monday. The surcharge would double to 60 pounds for a return trip.

It was the fifth increase in 16 months and followed an increase in June to 24 pounds for single fares.

The airline's fuel surcharge on short-haul flights would remain at 8.0 pounds for a single trip and 16 for a return, it added.

"This latest fuel surcharge rise is very regrettable but we have little choice to pass some of our extra costs on to our customers," George said, adding that it cost 400 percent more to fill up a plane than in December 2001.

"Our fuel bill of around 1.6 billion pounds is now our second largest cost after employee costs," George added.

Oil prices are trading at around 65 dollars per barrel after last week hitting a record high point of 70.85 dollars, as Hurricane Katrina battered oil facilities in the US Gulf of Mexico.

London's Heathrow airport loses traffic in August
Fri Sep 9, 6:12 AM ET

LONDON (AFP) - Passenger traffic fell by 3.0 percent at London's main Heathrow airport in August following a strike by British Airways staff and the recent London bombings, British airports operator BAA said.

Overall, BAA handled 14.3 million passengers in August at its seven British airports, which include also London's Gatwick and Stansted.

"Despite the combined impacts of the aftermath of the London bombings on visits to the capital and the disruption of BA services... this still represented an increase of 0.5 percent on August 2004," BAA said in a statement.

A total of 6.12 million passengers passed through Heathrow -- the world's busiest airport -- last month. Traffic at BAA's six other airports rose in August from a year earlier.

The airport operator said that the performance of all its major markets during the peak holiday season was below recent trends, but only North Atlantic travel declined on a year ago, down 1.3 percent.

Emirates could launch new Edinburgh flights
8 September 2005
The Scotsman

EMIRATES Airlines, the UAE-based carrier whose daily Glasgow-Dubai service carried 150,000 passengers in its first year of operation, is set to expand the booming Scottish route - and that could include new flights from Edinburgh.

The move comes as the company is already in the process of doubling its seating capacity, with larger Boeing 777 aircraft operating from Glasgow next month.

Vic Sheppard, Emirates' vice-president for UK & Ireland, said yesterday: "We knew that tourism and trade activity from other markets, such as Africa and the Indian sub-continent, was relatively small out of Scotland, no doubt constrained by transportation links.

"With convenient connections through our Emirates Dubai hub to nine African countries and five Indian cities alone, our Glasgow service is doing its bit to help the Scottish business community tap into this huge potential, driving major opportunities for Scotland plc."

Business leaders in Edinburgh are believed to be pushing for the company to open a direct route from the capital. Glasgow and Edinburgh were both considered for Scottish hubs, but Glasgow won when it was first launched last year.

Donald Anderson, the leader of the City of Edinburgh Council, said he had written to Emirates explaining the benefits of opening another Middle East route.

"We are keen to secure a second route for Scotland. Edinburgh has huge potential for airlines looking for new business opportunities."

Speaking to The Scotsman earlier this year from Dubai, Keith Longstaff, senior vice-president in charge of European commercial operations, stressed that the airline had yet to complete its inquiry process into Emirates' promised expansion in Scotland by 2006-7.

He said the profile of Edinburgh's passenger population made the capital an ideal candidate for a direct flight to the Middle East.

BAA numbers hit by bombs and strike
Kevin Done, Aerospace Correspondent
9 September 2005
Financial Times

Passenger traffic at BAA's seven UK airports was depressed last month by the continuing impact of the July bombings in London and by the disruption to British Airways flights associated with the industrial dispute at Gate Gourmet, BA's catering supplier at Heathrow.

Total passenger numbers at BAA's UK airports rose only 0.5 per cent to 14.3m compared with the company's forecast for an increase of 3.5 per cent in volumes at the three London airports, Heathrow, Gatwick and Stansted in the 12 months to March 2006.

The main impact was felt at Heathrow, the busiest airport in Europe and British Airways' global hub, where traffic fell by 3 per cent year-on-year in August to 6.1m.

BA cancelled more than 700 flights to and from Heathrow over four days in mid-August at the peak of the summer season, stranding around 110,000 passengers around the world.

It said earlier this week it had suffered the first monthly decline in August in its traffic volumes since April 2003.

BAA said performance in all key areas in August was below recent trends. Volumes in the key North Atlantic market fell 1.3 per cent to 1.9m, while traffic in other long-haul markets rose by per cent to 2m.

The weakest performance was in the European charter market, where tour operators have been losing share to the low cost airlines as consumers increasingly choose to organise their own holidays and book air travel and hotels separately.

Short-haul charter passenger volumes fell 9.2 per cent year-on-year to 1.6m.

BAA said charter traffic at Gatwick, which accounted for around a third of passenger volumes at the airport, fell 7 per cent but was offset by strong growth in European scheduled traffic, including by low cost operators, and in long-haul markets, allowing overall traffic at the airport to grow 1.1 per cent to 3.7m.

The rate of growth at Stansted, previously fuelled by the rapid expansion of the low cost airlines has slowed, as the airport increasingly suffers from capacity constraints at peak hours. Passenger volumes in August rose 4.2 per cent to 2.2m and 6.3 per cent in the last 12 months to 21.8m.

Jet Airways captures 24 pc of Mumbai-London sector

Tunia Cherian George

Mumbai , Sept 21

JET Airways has captured a fourth of the market share on the Mumbai-London route within three months of launching the service in May this year. In August, the airline carried approximately 13,000 passengers, which represents 24 per cent of the traffic on this route.

Mr Peter Luethi, COO of Jet Airways, said that this was a significant achievement given that it was achieved in just three months. Average loads on the sector were in excess of 70 per cent, he added. He was quoting Government data to confirm the marketshare information.

Me Luethi attributed the performance to a combination of factors, including convenient daytime departures from Mumbai; a quality product on business class; pricing of the economy segment; in-flight entertainment, and an understanding of the Indian market.

He told Business Line that passengers from India make up about 60 per cent of the loads on the Mumbai-London sector, though this number varied with the season.

The airline has deployed the A340-300 E (Enhanced) aircraft, with a capacity of 269 passengers in a two-class layout, on the sector. Jet Airways plans to launch a daily service between Delhi and London from October 30.

http://www.thehindubusinessline.com/2005/09/22/stories/2005092201170700.htm

UK to liberalise foreign airlines' access to regional UK airports
26 September 2005

LONDON (AFX) - The UK government said it is to make it easier for foreign airlines to fly new international air services to or from UK regional airports.

The government said it will in future apply a general presumption in favour of allowing foreign airlines to set down or pick up passengers, or cargo, at a UK regional airport en route to another country.

It will also allow a foreign airline flying to the UK to pick up passengers or cargo from a third country en route to its destination in the UK.

The government said that rights to operate such services, known as 'fifth freedom' rights, have traditionally been closely limited through the system of bilateral air services agreements under which international aviation is controlled.

UK aviation Minister Karen Buck said: 'Today's announcement supports the UK's policy... to promote the growth of regional airports.

'The move will potentially mean more services and a greater choice of

connections for passengers outside the South East of England.'

'It is now up to the airlines to apply to operate new services,' she added.

British Airways eyes 15 pct job cuts - source
By Michael Smith

LONDON, Oct 2 (Reuters) - British Airways , Europe's third-largest airline, is eyeing a 15 percent cut in staff over several years as part of its move into a single new terminal at London's Heathrow Airport, a source said Sunday.

"A figure has not been put on any job losses, but a 15 percent reduction of the work force is a reasonable bet," a source familiar with the situation told Reuters.

BA, which employs 46,000 workers, is scheduled to move operations to the new Terminal 5 at Heathrow in 2008.

A BA spokesman reiterated the airline was targeting a 300 million pound ($529.8 million) reduction in labor costs by March 2007, but declined to comment on specific staff numbers.

"We have not made a secret of the fact we need to take more costs from our business," the spokesman said. "We have not ruled out more job losses but there are other ways to reduce labor costs."

Labor issues will be a top priority for the airline's new Chief Executive Willie Walsh who took over from former boss Rod Eddington over the weekend.

The Observer newspaper said on Sunday groups to be targeted for job cuts include call center and check-in staff, baggage handlers and other ground staff.

Analysts say new technology under the Terminal 5 move at Heathrow will allow each worker to do more, while growing use of automated facilities such as on-line booking and automated check-in will also lead to cuts.

Eddington cut 14,000 jobs during his five-year tenure at BA. Walsh cut one-third of Irish carrier Aer Lingus' work force where he was chief executive ahead of the BA appointment.

BA has a delicate relationship with unions, particularly baggage handlers, following three successive summers of industrial unrest which grounded flights at its Heathrow operations.

An industrial dispute at its caterer Gate Gourmet spilled over into a sympathy strike by BA staff, stranding more than 100,000 passengers at Heathrow last month.

($1=.5662 Pound)

New British Airways chief executive outlines plans for the airline
By JANE WARDELL
4 October 2005

LONDON (AP) - The new chief executive of British Airways PLC promised 100 million pounds (US$175 million; €145.83 million) worth of investment in onboard service Tuesday to win back long haul customers as he warned that the airline will not meet its key profitability goal this year.

Willie Walsh, a former pilot and chief executive at Irish airline Aer Lingus who took over the reins at BA this week, said the airline will also reform its loss-making short haul operations and flagged job cuts as the carrier prepares to move into a new single terminal at Heathrow Airport.

Walsh said BA would not achieve its goal of a 10 percent operating margin, a target set by his predecessor Rod Eddington, this year because of record high fuel costs.

"I do believe it is achievable," he said. "With fuel prices where they are we clearly are flying into very significant headwinds ... I don't have a date in mind when we will achieve it."

Walsh takes over as BA struggles to win back customer confidence after an August strike by staff at catering firm Gate Gourmet and BA ground workers led to hundreds of canceled flights. It recently reached agreement with unions to resolve the industrial dispute that led to the strike but is still not offering a full meal service on short haul flights.

Analysts, who estimate the strike cost the airline as much as 40 million pounds (US$74 million; €61.67 million), are concerned about the ongoing effect on BA's ability to woo high-end customers -- its bread and butter.

Walsh said Tuesday the airline planned to invest in new business-class seats and in-flight entertainment on long haul flights, with an announcement due in the next few months.

On short haul operations, Walsh said he was committed to running services from London's Gatwick, where the airline competes against budget carrier easyJet PLC for short-haul flights, but said to expect changes there in the next few months.

"We believe we can make it work at Gatwick," he said.

Walsh said that the airline will look to take part in the future consolidation of the airline industry, although he added that current regulatory controls are likely to limit opportunities.

He said increasing the airline's stake in Spanish airline Iberia is not "an immediate priority." BA has an 8.76 percent stake in the airline.

A major focus for the airline will be the shift to the new Terminal Five at London's Heathrow Airport, due to be completed by 2005.

Walsh said BA is currently evaluating existing and potential aircraft, but said the airline is unlikely to take delivery of new or additional aircraft before the transfer to its new base.

Among the aircraft being viewed are the planned "advanced" version of Boeing Co.'s long-haul 747 jumbo, its wide-bodied 777 as well as Airbus' double-decker A380 and planned wide-bodied A350, Walsh said.

Walsh said that staff cutbacks would be a part of the move to Terminal Five, but declined to put a figure on how many jobs would go following reports the airline was planning to cut up to 15 percent of its work force.

"I am committed to the principle of no compulsory redundancies," he said.

Under his predecessor, BA cut 14,000 jobs, or almost 25 percent of its work force, almost entirely without forced layoffs.

Flybe Carried 485,924 Passengers In Sept, Up 25%
7 October 2005
Edited Press Release

LONDON (Dow Jones)--Flybe said Friday that passenger figures for September showed a 25% increase over the same period last year to 485,924, from 388,987.

The summer period for Flybe has been exceptionally good with higher than anticipated volumes, the company said.

The largest single regional increase in passenger numbers was at Newcastle airport, which continuing to benefit from the introduction of a number of new routes, saw passenger levels rise by 172% compared with September 2004.

Strong growth was also recorded at Exeter, Birmingham, Southampton, Leeds Bradford, Edinburgh and Liverpool, Flybe said.

Mike Rutter, marketing and sales director, commented: "We continue to be pleased with the advanced sales for winter ski routes and the new sun routes from Norwich and Exeter are ahead of expectations."

Heathrow Terminal 5

After a decade of planning deliberations Heathrow Terminal 5 was finally given
the all clear in 2001. Construction is now at an advanced stage. Richard
Rogers's light, airy, and intuitive design will accommodate an additional 30
million passengers a year (taking Heathrow to nearly 100 million in total) and
also handle the new Airbus A380.

http://pic5.picturetrail.com/VOL85/949935/2682391/33270366.jpg

http://pic5.picturetrail.com/VOL85/949935/2682391/33270372.jpg

http://pic5.picturetrail.com/VOL85/949935/2682391/33270377.jpg

http://pic5.picturetrail.com/VOL85/949935/2682391/33271879.jpg

http://pic5.picturetrail.com/VOL85/949935/2682391/33271396.jpg

http://pic5.picturetrail.com/VOL85/949935/2682391/33271397.jpg


Here are a couple more pics of the layout of terminal and
satellites. In the second pic you can see their location between
the runways and relative to Terminals 1-3:

http://pic5.picturetrail.com/VOL85/949935/2682391/33274099.jpg

http://pic5.picturetrail.com/VOL85/949935/2682391/33274104.jpg


Construction pic from last year - now considerably out-of-date:

http://pic5.picturetrail.com/VOL85/949935/2682391/53823025.jpg


absolutely massive structure ! nice to hear good news for London Heathrow expansion.

Tuesday October 11, 8:02 PM
British air traffic rebounds in September

LONDON (AFP) - British airports operator BAA said passenger numbers rose by 3.0 percent in September from the figure for the same period of the previous year.

BAA, owner of seven British airports including Heathrow, Gatwick and Stansted, said it had handled 13.5 million air travellers last month.

It followed annual traffic growth of only 0.5 percent in August as a result of the London bombings in July and wildcat strikes at London's Heathrow airport -- the world's busiest -- in August.

All of BAA's British airports recorded passenger growth in September compared with August data, the fastest being the 18.5-percent rise at Southampton, southern England.

Heathrow saw a 1.4-percent rise in passenger numbers after a 3.0-percent drop in August.

BAA meanwhile said that North Atlantic traffic returned to growth with a rise of 3.1 percent in September compared with the same period of the previous year.

Long-haul routes excluding traffic across the North Atlantic climbed by 8.6 percent and European scheduled traffic advanced by 4.2 percent.

Luton Airport sees ambitious expansion
Kevin Done
25 October 2005
Financial Times

London Luton Airport is developing ambitous plans to triple in size by 2030 as part of a GBP1.5bn scheme that would deliver a new full-length runway in time for the 2012 London Olympics.

The airport on Tuesday presented a draft master plan, which envisages Luton taking the lead in providing extra runway capacity in the overcrowded south-east of England ahead of both London Stansted and London Heathrow airports.

London Luton Airport Operations, which operates the airport under a 30-year concession from Luton Borough Council, was taken over at the beginning of the year by Abertis, the Spanish infrastructure group, as part of its acquisition of TBI, the UK regional airports group.

The draft plan forecasts that passenger volumes at Luton could grow from 9.2m in 2005 to 15m by 2012, which would exhaust facilities within the airport's present boundaries. Volumes would grow further to more than 30m a year by 2030 supported by the building of a new 3,000m runway and a second terminal building.

The master plan will be subject to a three-month period of public consultation and will be presented to the government in spring next year as part of the airport industry's response to the government white paper published in December 2003, The Future of Air Transport.

The white paper called for the biggest expansion of UK airport capacity in 50 years.

Alistair Darling, transport secretary, has given strong support for the building of two runways in south-east England, the first at Stansted airport by 2011-12, and the second at Heathrow by 2015-20, provided they could meet tough environmental conditions.

For Luton airport the white paper forecast there would be sufficient demand to justify expansion to the full potential of a single runway - handling 30m passengers and 240,000 take offs and landings - in the period up to 2030. The airport handled 7.5m passengers last year and expects to exceed 10m in 2006.

BAA, which operates Heathrow, Gatwick and Stansted airports, is already running into problems, however, with the timetable for building a second runway at Stansted.

It warned in May that the second Stansted runway would be delayed for at least a year to 2013 and it said landing charges would have to be more than doubled to finance the project.

Even 2013 could be achieved only if the project were subsidised by increases in airline user charges at London Heathrow and Gatwick airports. Otherwise the GBP4bn project would have to be delayed for "several years."

The BAA proposal outraged airlines at Heathrow and Gatwick, which have pledged to fight any "cross-subsidisation" of Stansted.

Kathryn James, Luton airport managing director, said on Tuesday the group saw an opportunity to seize "first mover advantage" in providing additional capacity in the south-east. Luton expected to submit a planning application for the first phase of its development scheme in early 2006.

This would make best use of existing capacity and would include the building of additional aircraft stands, extension of the terminal and the lengthening of taxiways. These limited works could be completed by the end of 2007.

A second "major planning application of national importance" could be made in late 2006 or early 2007. This would include the building of a full length 3,000m replacement runway about 950m south of the present runway, a new south terminal, additional aircraft stands and a new fire station and control tower.

The existing 2,160m runway would be maintained for use in emergencies or during essential maintenance, similar to the present practice at Gatwick airport.

Luton airport said that it intended to open the replacement runway and new terminal for operation in 2012 in time for the Olympic Games.

Heathrow Construction Workers May Be Balloted For Strike
26 October 2005

LONDON (Dow Jones)--Around 1,500 construction workers on Heathrow airport's terminal five project may be balloted for strike action in a dispute over bonus payments, trade union the GMB said Wednesday.

The GMB said talks with contractor Laing O'Rourke Group (LOR.YY) and airport operator BAA PLC (BAA.LN) regarding a bonus scheme have been unsuccessful. Further talks are planned as preparations for a strike ballot continue, the union said. It said the bonus scheme has been frozen for three years.

"GMB and the other unions are preparing a ballot for industrial action at Heathrow Terminal 5, following the failure of talks to resolve a pay issue on the site," said Phil Davies, GMB national secretary. "Unless there is movement, industrial action is likely."

Terminal five, which is one of the largest construction projects in Europe, is due to go into operation in 2008. It will be the new base for British Airways PLC (BAB).

Prestwick to cater for 5m passengers
Alastair Dalton
26 October 2005
The Scotsman

PRESTWICK airport has announced plans to double the size of its departure lounge to cope with five million passengers a year, as its owners said they were pressing ahead with their problematic acquisition of Lübeck airport near Hamburg.

The Ayrshire base, which is handling 2.3 million passengers a year and has a three million capacity, is considering the feasibility of building a new 5,000sq ft departure area. The existing 2,300sq ft space would be refurbished to give extra room for arriving passengers in a project expected to take 18 months.

The move came as New Zealand-based Infratil, Prestwick's owner, said it hoped to take over Lübeck next month, despite expansion plans to make way for a new Ryanair base there being blocked by a German court.

LUTON airport yesterday announced plans for a replacement runway and a new terminal in time for the London Olympics in 2012.

The airport, which EasyJet flies to from Edinburgh, Glasgow, Aberdeen and Inverness, is also working on extending existing facilities by the end of next year.

Scrambling to Pile On Perks
Virgin, British Airways Vie To Lure Business-Class Fliers
Seat-Bed Battle Escalates
By Daniel Michaels
28 October 2005
The Wall Street Journal

London -- MOST AIR TRAVEL has gotten a lot less comfortable recently as airlines world-wide have slashed perks to cut costs. But in one of the industry's fiercest brand battles, two British carriers are still dueling to out-pamper international business-class customers.

In August, Virgin Atlantic Airways capped its second premium-service make-over since 2000 by unveiling a GBP 11 million ($19.5 million) business-class lounge at its Heathrow Airport hub. The lounge features a 45-foot-long bar of granite and marble, hand-stitched yellow leather armchairs, a waterfall and a spa. Ads splashed across London invited fliers to "Pimp my lounge." Meanwhile, high-end London clothier Ozwald Boateng has redone Virgin's in-flight goodie bag for business-class passengers.

Now, archrival British Airways plans to raise the stakes, investing more than GBP 100 million in its second international business-class revamp in five years. In the meantime, it has made the cushions on its bed-seats softer and added fluffier pillows and duvets. The rivalry "forces us to raise our game," says BA Chief Executive Willie Walsh.

The two British carriers are vying to attract the kind of business customer who is willing to pay to fly in comfort and land ready for action. Virgin ads tout "50 Winks" onboard. BA offers a "Sleep Well Guarantee," promising that fliers who don't snooze soundly can demand a free upgrade to first class on a subsequent flight.

The London-based rivals' latest salvos come as business travel is recovering from a deep slump that began in early 2001. On short routes in the U.S. and Europe, much of the rise in traffic is going to budget airlines at the expense of traditional carriers, including BA.

But on intercontinental flights lasting more than six hours -- enough time to attempt a night's sleep -- the demand for upscale service continues, and price doesn't seem to be an issue. When it scanned ticket prices on a range of international routes, air-travel consultants Harrell Associates of New York found that 10 times as many business-class fares had risen recently as had fallen. Meanwhile, economy-class fares were more evenly split between those rising and falling.

These days, to fly business class round trip between New York and London on a ticket purchased a week in advance costs almost $9,000 on BA and Virgin. Fares like that mean the business cabin can produce richer revenue per square foot of airplane space than economy class. Business seats are also easier to sell out than first class.

Investing in pricey amenities that draw passengers is "expensive, but it's incredibly important," says Sir Richard Branson, chairman and founder of Virgin Atlantic. "It only takes a 1% or 2% movement in passengers to pay for innovation." In 2003, Virgin invested almost $200 million to develop and install an elaborate new bed-seat for Upper Class, its business class. But the investment has paid for itself thanks to passengers wooed away from BA and U.S. carriers, Sir Richard says.

BA managers counter that Virgin may have grabbed market share from U.S. carriers but not from BA. The giant U.K. carrier says its Club World international business-class service has won market share, though mainly at the expense of foreign competitors.

The level of coddling offered by Virgin and BA isn't likely to become an industry standard. London is an international finance and media center that draws high-spending executives. But Britain tightly restricts which airlines can operate at overcrowded Heathrow, the main international hub, so BA and Virgin have a rich market that's tough for others to crack.

Still, other carriers are trying to keep up, and they have adopted a number of the business-class innovations spawned by the BA-Virgin rivalry. Besides bed-seats, these include dinner service on the ground before red-eye flights to maximize sleep time, and arrival lounges for passengers to refresh post-flight. AMR Corp.'s American Airlines -- the world's largest airline by traffic -- said this past August it will introduce international business-class seats that spread flat. But like most of the other carriers following the British duo, including Air France, Germany's Lufthansa and UAL Corp.'s United Airlines, American will squeeze flat seats onto its planes by tilting them, with each passenger's feet sliding under the head of the passenger one row ahead. The BA and Virgin business-class bed-seats are horizontal.

BA and Virgin aren't the only airlines targeting long-haul business fliers. Asian carriers including Singapore Airlines and Hong Kong's Cathay Pacific Airways, which have long set a global standard for attentive staff, offer swank long-haul business-class packages, as do upscale international carriers, including Australia's Qantas, South African Airways and newcomers from the Persian Gulf such as Dubai's Emirates Airlines and Qatar Airways.

Two start-ups, Eos Airlines and MAXjet Airways, recently began offering business-class-only flights between London and New York. And United on Wednesday announced a successful first year of its "p.s." premium service between New York and San Francisco or Los Angeles, featuring only first, business and premium-economy seating and enhanced onboard amenities.

But BA and Virgin still innovate faster. The rivals now one-up each other so quickly that some frequent fliers say it's a coin toss as to which carrier spoils them more. "You're down to real personal preferences choosing between the two," says Chris Avery, an equities analyst at J.P. Morgan in London who covers airlines and flies both.

Sir Richard started the luxury race when he created Virgin in 1984 as "the kind of airline I'd like to fly." The carrier serves only intercontinental routes and has no separate first class. Although Upper Class tickets are priced to compete with rivals' business-class fares, the cabin boasts features unusual even for first class. A bar with stools and space for beauty treatments and massages has been standard for years. Ticket prices include limousine rides to and from the airport, and Virgin in 1996 started drive-through check-in so passengers don't even need to step out of their limos.

BA largely ignored the upstart for a decade. Its global network was far larger, allowing it to land lucrative corporate deals that Virgin couldn't touch. BA also had a silver bullet: It could dangle seats on the supersonic Concorde (which since has been scrapped) as a reward for steady customers. But as Virgin kept expanding in the late 1990s, BA decided it was time to act. When Virgin introduced the first tilted flat seat in late 2000, BA quickly leap-frogged it with a horizontal seat. And BA's chief designer, Mike Crump, managed to install the beds without wasting space by creating yin-yang nested pairs of seats.

BA's creativity jolted Virgin. "The moment we found out what they'd done, we dumped GBP 100 million in investment and were determined to do them one better," Sir Richard says.

The two rivals kept up their pampering war even through the slump that began in 2001. In 2003, Virgin unveiled a seat that's more private than BA's and turns into a bed that's longer and wider. It also offers a bigger table for eating or working, and a bigger TV screen. Virgin's "suite" is even certified for passengers to sit reclined during takeoff and landing.

"We admire what they've done," says BA's Mr. Crump, adding that BA will introduce a new Club World seat next year that's "radically different from the current model."

Virgin design chief Joe Ferry's response? Virgin will watch closely to see what BA does with its new seat, he says, "and, if we have to, react."

Wednesday November 2, 9:53 AM
British Airways keeps up Tehran service despite blast

LONDON (AFP) - British Airways said its operations in Tehran were continuing as normal despite a small explosion in the building that houses its offices in the Iranian capital.

A BA spokesman in London said no-one was hurt when the "percussive device" -- intended to make more noise than damage -- went off in the building housing the offices of its regional partner British Mediterranean Airways.

"Staff are continuing to work as normal and there has been no impact on BMed services to the city," the spokesman told AFP, adding that security services have been called in.

The Sayeh building also housed the Tehran offices of British Petroleum, as well as a number of other international companies.

A Foreign Office spokesman in London said it had no information that anyone had been killed or injured.

"We are in contact with the affected companies and our embassy staff are at the scene," he added.

BA seen under new pressure to fill pension gap
By Tom Burroughes

LONDON, Nov 3 (Reuters) - British Airways is likely to face mounting pressure from a new regulator to plug a yawning pension fund deficit because the firm has shown it can slash its debt burden, a leading pension consultant said on Thursday.

BA, Europe's third-largest airline, has cut its debt to 4.5 billion pounds from 7.4 billion pounds in 2002, and also has 2 billion pounds of cash. However, BA's pretax pension deficit has risen to 2 billion pounds from 500 million pounds, John Ralfe, independent pension consultant, said in a note for RBC Capital Markets.

BA reports second-quarter results on Friday.

The new Pension Regulator, set up by the UK government in April to police the retirement fund industry, could use its wide-ranging powers to make BA increase contributions to the firm's pension scheme, Ralfe said.

"The Pension Regulator is likely to scrutinise BA very carefully ... It is not going to be business as usual for BA," Ralfe told Reuters.

BA's pension black hole compares with the firm's market capitalisation of only 3.48 billion pounds as of Wednesday's close.

Ralfe, as the former head of corporate finance at UK retailer Boots Plc , moved the firm's entire pension scheme assets into bonds, a shift that prompted widespread comment in the industry.

The airline was not immediately available for comment.

BIG DEFICITS

British Airways, along with a host of major firms, has a large gap between its pension assets and the expected cost of paying benefits. Dozens of UK firms have already shut final-salary plans to new staff to cut costs.

Since the start of this year, pension deficits are treated like debt under European accounting rules, and listed companies across Europe are having to disclose their pension finances on their balance sheets, often for the first time.

"Although BA's pension contributions have doubled from 2003 to 2005, it is still not enough to make any dent in the underlying deficit, after the cost of new pension promises and interest on the deficit. Like it or not, only a big increase in (BA) Company contributions will shift the underlying deficit," Ralfe's note said.

BA has not paid a dividend since security fears sparked an industry downturn in 2001.

BA's net debt fell by 1.2 billion pounds during the last fiscal year to 2.9 billion pounds, its lowest level since 1993. At the end of the first quarter of the current year its net debt was 2.5 billion pounds.

BA's new Chief Executive Willie Walsh is reviewing the airline's pension fund requirements.

However, BA has a delicate relationships with unions following August's strike at Heathrow Airport and any move to change pension payouts could create more industrial strife, analysts say. The Pension Regulator's powers mean trustees of retirement schemes can insist that firms put schemes' funding needs high up the corporate agenda, Nick Edmans, head of communications at the watchdog, told a seminar on pension issues this week.

"Some trustees have taken too relaxed a position in negotiations with an employer and should be challenging positions on funding much more assertively," Edmans said.

U.K. airports operator BAA to slash 700 jobs in cost-cutting program
01 November 2005

LONDON (AP) - Airports operator BAA PLC said Tuesday it is cutting 700 jobs at Heathrow, Gatwick and Stansted airports as part of its plans to save 45 million pounds (US$79.7 million) a year.

BAA, which operates seven airports across Britain, said it plans to reduce the number of back office and management staff at the three London airports, but added there would be no cuts in front-line security staff.

The company announced the job cuts as it revealed a drop in net profit for the first half of the year, despite a slight rise in passenger numbers.

Net profit for the six months to Sept. 30 fell to 257 million pounds, (US$455.1 million) from 418 million pounds a year ago. Revenue increased to 1.17 billion pounds (US$2.1 billion) from 1.13 billion pounds.

BAA said that passenger traffic increased 2.5 percent to 82.3 million passengers over the six months, with the long-haul market a significant contributor to growth.

The airports operator reiterated its forecast of 3 percent growth in passenger numbers through its airports this financial year. The company downgraded its previous forecast of 3.5 percent growth in September because of the July terrorist attacks in London and flight cancellations at Heathrow Airport by British Airways PLC due to industrial action.

BAA said retail sales at the seven airports rose 3.8 percent to 324 million pounds (US$573.6 million) over the half.

The company, which employs just under 12,000 people in Britain and another 500 overseas, said that the job cuts were vital to counter a string of threats to its business, including passengers spending less time in its shops. The company is building a new terminal five at Heathrow to relieve congestion at the airport.

Its cost-cutting program is expected to deliver annual savings of 45 million pounds (US$79.7 million) from 2008-09 but will cost around 90 million pounds (US$159.3 million) to implement.

BAA shares fell 0.2 percent to 612.5 pence on the London Stock Exchange.

Friday November 4, 9:52 PM
British Airways Posts Profit Dip on Costs

AP - British Airways PLC posted a 24 percent drop in its fiscal second-quarter net profit Friday, blaming higher fuel costs and the absence of a large one-time gain that boosted the result a year ago.

However, the airline said it expects improved yields, or average fares, over the full year and raised its revenue guidance to between 6 percent and 7 percent growth _ up half a percentage point from its previous forecast.

BA said net profit for the three months ending Sept. 30 fell to 171 million pounds ($302.1 million) from 225 million pounds. Last year's net profit was boosted by an 86 million pound gain from the sale of shares in Australia's Qantas Airways Ltd.

The airline also revealed that an August strike by staff at catering firm Gate Gourmet and BA ground workers, which led to hundreds of canceled flights, cost the company between 35 million pounds and 45 million pounds ($61.8 million and $79.5 million).

The figure was in line with analyst estimates and BA said the cost did not have a material impact on the quarterly results because the airline also suffered disruption in the comparative period last year.

Revenue rose 8.2 percent to 2.21 billion pounds ($3.9 billion).

"This is a reasonable set of results driven by improvements in revenue, seat factor and yield. It is clear, however, that we need to re-energize our drive on controllable costs," said Chief Executive Willie Walsh, who took over the reins at BA last month following the retirement of Rod Eddington.

"Costs are up in most areas. Fuel was the biggest single contributor, up a staggering 51.3 percent," he added.

Walsh reiterated that BA would not achieve its goal of a 10 percent operating margin, a target set by Eddington, this year because of record-high fuel costs. The operating margin is operating income divided by revenue, and indicates how much a company makes from each dollar of sales, before interest and taxes. BA achieved an operating margin of 6.9 percent last year.

BA earns the majority of its profits from its long-haul first- and business-class operations, including the trans-Atlantic route.

Walsh said that the airline's performance on the short-haul routes, where it faces tough competition from budget carriers like Ryanair Holdings PLC and easyJet PLC, was improving and is expected to be profitable over the full year.

He is also focused on the airline's move to a base at Heathrow Airport's new Terminal 5, which is due to be completed in 2008.

BA shares fell 2.9 percent to 304.75 pence ($5.38) on the London Stock Exchange.

Air Berlin moves in on UK market
By KEVIN DONE
4 November 2005
Financial Times

Air Berlin, Germany's second-largest airline and Europe's third-largest low-cost carrier, is intensifying its attack on the UK market with the establishment of a hub transfer operation at London Stansted airport and the opening of its first two domestic routes in the UK.

The move marks the start of a direct challenge to Ryanair and EasyJet, the leading European low-cost carriers, on their home turf.

It also comes after the Irish and UK airlines have built up a significant presence in the German market, with bases at Frankfurt-Hahn, Berlin Schonefeld and Dortmund airports.

Joachim Hunold, managing partner of the privately-owned German carrier, said that, with their rivals competing in the German market, Air Berlin would "enjoy challenging them" in the UK.

Air Berlin will be the first airline to use London Stansted, the most important low-cost carrier airport in Europe, as a transfer hub.

Passengers from other airports in the UK wishing to travel to Germany will be able to check their luggage in for automatic transfer to their final destination.

All other carriers at Stansted use the airport exclusively for direct point-to-point flying and avoid the cost of transfer operations.

Mr Hunold said Air Berlin planned to launch domestic UK flights initially from Stansted to Glasgow and Manchester.

The group was also considering flying to other UK destinations, he said.

There was demand for flightsfrom several German cities to Glasgow and Manchester, but not yet sufficient to support direct flights.

Air Berlin already operates from Stansted, where it is the third largest carrier, to seven destinations in Germany including Berlin-Tegel, Dusseldorf and Nuremberg, as well as to its Spanish hub in Majorca and to Vienna through Niki, its affiliate Austrian airline.

The group is expanding quickly and expects to carry 13.8m passengers this year up from 12m in 2004.

Late last year the airline placed one of the biggest orders for new aircraft made by a European low-cost carrier.

It ordered 60 Airbus A320s for delivery up to 2011 with a further 10 ordered by Niki.

The first Airbus arrived last month and the group will take delivery of a second in December and nine in 2006.

BA's new chief steps up drive to cut costs
Peter Klinger
5 November 2005
The Times

WILLIE WALSH, the new British Airways chief executive, gave notice yesterday that he was preparing to reinvigorate the drive to cut costs at the flagship carrier.

A month after taking control of BA, Mr Walsh said that he was targeting 80 per cent of the airline's cost base, which he believes could be trimmed to meet the airline's long-standing profit targets.

Mr Walsh, speaking after BA reported a 22 per cent drop in second-quarter pre tax profit to Pounds 241 million, announced that the fuel component of the airline's costs, which accounted for about 20 per cent, was the only area that was effectively beyond his reach.

Payroll accounts for 30 per cent of costs, with 50 per cent designated to other activities.

Mr Walsh, whose predecessor, Sir Rod Eddington, cut 14,000 jobs over five years, said: "We have achieved a lot over the last few years but there's a lot more for us to do."

Among Mr Walsh's targets will be a reduction in BA's massive top-up contributions to plug a Pounds 1.4 billion pension deficit, as well as ways to improve sales efficiencies.

Mr Walsh has already ruled out compulsory job cuts but trade unions representing BA's 46,000 employees are likely to watch the new chief executive's first moves anxiously. Top of the agenda for Mr Walsh is addressing BA's pension problem, which is robbing the airline of valuable cashflow to invest in growth opportunities. BA last year almost doubled its contributions to the pension fund to Pounds 225 million, but was unable to prevent the deficit from blowing out by Pounds 205 million.

BA has started an extensive consultation process with employees in an attempt to come to a mutually acceptable agreement that could see the airline reduce fund top-up contributions without threatening an escalation in the deficit.

Mr Walsh would not discuss options but trade unions are concerned BA will try to persuade employees to accept reduced benefit levels or increase their voluntary payments.

Mr Walsh said that he was likely to sit down with trade unions and BA's pension trustees early next year.

A spokesman for the British Air Line Pilots Association, which represents about 3,000 BA employees, welcomed the staff consultation process but said that "we will wait and see" what the proposals would be.

BA can ill afford further industrial action as it tries to finally achieve a crucial 10 per cent operating margin.

Mr Walsh confirmed yesterday that industrial action during the three months to September 30, dominated by the Gate Gourmet dispute, had cost the airline Pounds 35 million to Pounds 45 million. However, the cost of the Gate Gourmet dispute did not have a material impact on like-for-like comparisons of BA's quarterly results because the airline suffered similar operational problems last year.

The second-quarter operating margin was 11.8 per cent, down 0.2 points on last year, although the seasonality of BA's business year means that the airline has to generate a margin of up to 17 per cent in the second quarter to have any hope of achieving a full-year 10 per cent margin.

The second-quarter result was at the top end of expectations but BA's shares fell 7p to 306p on profit-taking. Analysts noted BA's cautiously optimistic full year outlook, which included a modest upgrade to revenue targets but no change to the already-flagged fuel bill.

Virgin, United Airlines in Heathrow deal
By KEVIN DONE
7 November 2005
Financial Times

Virgin Atlantic, the UK long-haul airline controlled by Sir Richard Branson, has agreed a deal with United Airlines of the US on a five-year lease of a pair of take-off and landing slots at London Heathrow, one of the world's most congested airports.

The agreement is the latest in a series of so-called "grey market" deals for Heathrow slots that are regarded as illegal by the European Commission but are accepted by the UK government, and which undermine claims from some US carriers that it is virtually impossible to acquire slots at Heathrow.

British Airways, Virgin Atlantic, Emirates and Qantas have all been able to expand their slot holdings at Heathrow, while new carriers such as Etihad of Abu Dhabi and India's Jet Airways have also been able to break into the Heathrow market as new entrants.

Access to Heathrow, Europe's busiest airport by passenger numbers and the most important US gateway in Europe, has been a constant source of aggravation in aviation negotiations between the US and the UK and the European Union. It is regarded as one of the most sensitive issues on the agenda of the latest round of US/EU air services negotiations due to resume in Washington next week.

Direct flights between Heathrow and the US are regulated by the highly restrictive Bermuda II US/UK air services agreement, which allows access to only two carriers from each country, British Airways and Virgin Atlantic from the UK and American Airlines and United from the US.

Carriers from both the US and the UK led by Delta Air Lines and BMI British Midland are eager to break the stranglehold of the "Heathrow Four" and begin operations on the highly lucrative US/Heathrow routes.

The slot leasing deal between Virgin and United shows that the struggling US carrier, which has been in Chapter 11 bankruptcy protection from its creditors for nearly three years, is one of the most active players in the Heathrow slots grey market.

Two years ago United sold two pairs of take-off and landing slots to British Airways for about Pounds 12m (Dollars 21m, Euros 18m). More recently it has agreed a three-year lease deal for another pair of slots with Jet Airways.

The privately owned Indian carrier, which only launched its first service to Heathrow from Mumbai in May and launched a daily New Delhi/Heathrow service a week ago, has already gained access to three pairs of slots. It has leased one pair from United, bought one pair from Air France and has acquired a third from the small pool of free slots administered by the official Heathrow slot co-ordinator.

Emirates acquired its latest pair of slots for its fifth daily Heathrow-Dubai service from BMI British Midland, the second largest operator at Heathrow after BA.

United refused to confirm its latest slot deal with Virgin but said "we have leased, exchanged and transferred slots from time to time that were surplus to our short-term or long-term needs".

The heavily loss-making US carrier has been reducing its Heathrow operations as part of its restructuring and this winter will be operating 10 daily flights from Heathrow, down from 13 during the summer of 2005 and 17 in 2000.

BAA: UK Airports Handled 12.6M Passengers In October
9 November 2005
Edited Press Release

LONDON (Dow Jones)--BAA said Wednesday that it's seven U.K. airports handled a total of 12.6 million passengers in October, an increase of 1.0% on the same month last year.

The number of seats flown by airlines rose by 3.9%, broadly in line with expectations, but average load factors fell by two percentage points to 73.4%.

Among the factors thought to have contributed to this weaker demand were: less aggressive discounting by airlines; the lingering effects of the London bombings and Hurricane Wilma, which had a negative effect on travel to the Caribbean and Florida, coinciding with the half-term break.

Among key markets, European scheduled traffic rose by 1.9% and passengers on North Atlantic services were up by 0.5%. Other long haul routes recorded a collective increase of 6.1%, while U.K. domestic activity was 0.9% ahead of last year. The only major sector to see a drop in volume was the European charter market, down 9.2%.

All airports, except Heathrow, recorded higher passenger volumes in October. Fastest growth was at Southampton with 17.7% and Aberdeen with 7.1%. Heathrow traffic was down 0.8% overall, with domestic traffic down 4.9% and European scheduled traffic declining 2.3%.

Despite a 6.8% drop in charter traffic, new Irish and long haul services helped Gatwick to an overall increase of 2.5%. Stansted traffic was up 0.6%, Edinburgh recorded a gain of 5.1% and Glasgow traffic was up 1.2%.

In total the number of air transport movements rose by 2.9% and cargo tonnage by 2.5%. Within this total figure Gatwick's cargo increased by 18.1%.

BAA to propose new Heathrow passenger facility

LONDON, Nov 9 (Reuters) - Britain's largest airport operator BAA Plc said on Wednesday it was working on plans for a new passenger facility at London's Heathrow Airport.

"What we are floating is an idea for a new development at Heathrow," a BAA spokesman said, but declined to give details.

BAA will announce details of the idea on Thursday.

The spokesman said the proposed passenger facility was in the early stages and would not be price sensitive.

Heathrow is the world's busiest international airport.

Prestwick expanding at the double
Airport plans 100-per cent growth to attract five million a year
MARTYN McLAUGHLIN
11 November 2005
The Herald

SCOTLAND'S fastest-growing airport is planning to double its capacity in an attempt to handle five million passengers a year in the next decade.

Glasgow Prestwick in Ayrshire has launched a feasibility study to examine doubling the size of its departure lounge and the number of parking stands from six to 12.

Under the proposals, a new two-storey building would be established to expand the existing departure area. One floor would be used for departures and another for arrivals. The current space at the hub would be refurbished.

The plans, which would cost a seven-figure sum, will only be sanctioned should Infratil, the airport owner, be convinced that Prestwick's high growth rate will continue.

Nevertheless, the proposed expansion signals an optimism that Scotland's booming lowbudget airline industry will continue to thrive, and marks a transformation for Prestwick, once a shabby 1960s terminal.

The airport, which employs 495 people, will handle around two-and-a-half million passengers this year, and has a capacity of three million. Should forecasts prove accurate, however, it will need to handle about five million passengers a year in the next decade, as well as increased freight operations.

The airport is optimistic it will be able to welcome passengers on board the Airbus A380, the world's biggest passenger plane, to Ayrshire in the future.

Steve Fitzgerald, chief executive of the airport, said: "It's a marvellous opportunity for the airport and local community.

"It's important to stress it is very early days and the internal design team has only recently been put together. This team is currently exploring the possibility of building a new 5000square metre departure area and refurbishing the existing 2300sq m space to give arriving passengers extra room.

"The building project could take some 18 months and will include extensive airport user consultation to ensure that the end result, should the project be deemed feasible, creates an enhanced and unique airport experience.

"The development will only proceed if Infratil, which owns the airport, is convinced that there are strong prospects for continued high rates of growth and that the expansion can be done cost-effectively and with minimum disruption to passengers during construction."

He added: "If we are to prepare to handle five million passengers annually, it will obviously have an impact on many issues around the airport such as food and refreshments, car parking, car rental, buses and trains. We'll be assessing all these areas as part of the study."

The news of the expansion ofPrestwick comes as the number of passengers using Glasgow, Edinburgh and Aberdeen airports over the past year broke through the 20 million mark for the first time.

The total rose by 5.1-per cent in the 12 months to October, while the monthly figure was up 3.5-per cent to 1.9 million.

Glasgow was Scotland's busiest airport in October, handling nearly 900,000 passengers. The figure grew to 765,534 in Edinburgh and 262,900 in Aberdeen.

The continued growth in passenger numbers at Prestwick, which ran just 30 cargo flights a week in 1992, is largely due to the prevalence of lowcost airlines which it predominantly serves.

Ryanair accounts for 90-per cent of traffic at Prestwick, and there are only three other scheduled airlines - BWIA, Aer Arann and BMI Baby.

Nevertheless, the success of these carriers was exemplified yesterday as Stelios Haji-Ioannou, the founder of easyJet, celebrated the no-frills airline's 10th birthday.

The service, which launched with a flight from Luton to Glasgow 10 years ago yesterday, has flown more than 100 million people.

Simon Calder, author of a book on the take-off of budget carriers, said: "easyJet and Ryanair have revolutionised the industry. They said, 'All we do is fly people from A to B, let us make it simple and still make a profit'. They have actually changed our mindset. It is liberating us and giving us the possibility to travel wherever we want to in Europe for very little cash."

Computer check-in glitch causes long lines at London's Gatwick airport
12 November 2005

LONDON (AP) - Departing passengers waited in long lines at London's Gatwick Airport on Saturday after a computer glitch forced airline staff to write out boarding passes by hand.

Airport operator BAA said the problem began late Friday night and affected all carriers except British Airways. Airlines brought in extra desk workers, but check-in lines were moving slowly because they had to write out boarding passes and paperwork manually.

One or two flights leaving the airport south of London were delayed by up to an hour, but otherwise departures were not affected, BAA said.

British Airways To Invest GBP100M
15 November 2005
Edited Press Release

LONDON (Dow Jones)--British Airways said Tuesday that it's set to invest GBP100 million in a major overhaul of its longhaul business class.

The enhanced changes will be introduced from mid 2006, the company said.

The airline will revamp all aspects of the journey - both on the ground and in the air - and will also make a major upgrade to its in-flight entertainment system in all four cabins, also to be introduced from summer 2006.

Martin George, British Airways' commercial director, said: "The introduction of a new club world product heralds a change for British Airways which will ensure that the airline is set apart from our major competitors to provide air travellers with the very best in business class."

BA CEO says will not tolerate further strikes
By Michael Smith

LONDON, Nov 22 (Reuters) - British Airways Plc's new Chief Executive Willie Walsh signalled a tough stance against striking workers on Tuesday, saying he would not tolerate a repeat of August's crippling industrial action at London's Heathrow Airport.

"A very clear message has been given internally within BA that that sort of action cannot and will not be tolerated going forward," Walsh, who took on the top job last month, told reporters at a Foreign Press Association lunch on Tuesday.

About 700 flights were grounded in August when BA ground staff went on strike in sympathy with sacked workers at the company's catering firm Gate Gourmet.

Three union members face an internal disciplinary hearing over their involvement in the walkout. A BA spokesman said the inquiry was ongoing and no decision had been made yet whether to sack the workers.

Industrial relations are one of the biggest challenges for Walsh, who is meeting senior union officials during his first months in the top job.

Walsh also said the airline, which launched its first direct flights to Bangalore last month, planned to expand further in India and launch routes to 1 or 2 more cities in the region.

He said India and China remained BA's most significant long-haul growth markets.

Walsh played down the prospect of BA strengthening its ties with Spain's Iberia, in which it has a joint 10 percent holding with American Airlines, or growing through consolidation with other carriers.

"We are not active in any way on that position at the moment and I don't see anything happening in the short to medium term," Walsh said.

BA also had no plans to invest in U.S. carriers, he said.

The airline last week criticised a tentative deal between the United States and European Union to expand trans-Atlantic aviation services, saying it failed to address restrictions on foreign ownership rules of U.S. airlines.

"BA has nothing to fear from further liberalisation," Walsh said, saying a deal would allow it to fly to some U.S. cities from London's Heathrow Airport, instead of nearby Gatwick.

He also played down comments made to a local newspaper which said BA was not interested in buying the Airbus A380 double-decker jet, saying it was still talking to both Boeing and Airbus on potential future plane orders.

BA beat expectations with stronger second-quarter earnings earlier this month after a recovery in first-class travel and higher ticket prices helped offset soaring fuel bills but has said it needs to remain focused on continuing to cut costs.

Ambitious Luton Reaches for Sky with India Flights
28 November 2005
The Evening Standard

LUTON Airport is aiming to tap into the burgeoning Indian aviation market by attracting airlines offering services to the sub-continent.

In a bid to reduce the deficit in passenger numbers further between itself and arch-rival Stansted, and consolidate its position as London's fastest-growing airport, Luton is understood to be actively lobbying airlines to capitalise on the large local Anglo-Asian community.

Latest figures reveal Luton is far outstripping Stansted in growth.

With both airports becoming increasingly congested, latest statistics show Luton increased its number of passengers by 18% to 2.7 million in the third quarter of the year. In the same period, Stansted grew 5% to 6.4 million.

New open skies treaties between the UK and India has seen airlines such as British Airways, Virgin Atlantic and bmi trebling their services to the sub-continent.

'With our high-density Asian population locally, we are looking at flights using long-haul, medium-sized aircraft on routes to India and Pakistan. We are in conversation with airlines' said a Luton spokesman.

Growth continues to be fired by easyJet increasing its number of routes from what has been its home airport since it was founded 10 years ago.

In addition, Ryanair has earmarked Luton for its expansion after a spat with Stansted owner BAA over rising fuel and landing charges.

Luton has also proved a busy destination for fast-growing Wizz, the eastern European airline which has been ferrying Polish and Hungarian workers here and attempting to open up a cheap leisure break market for Britons.

Luton plans to triple in size over the next 25 years. It aims to hasten expansion with a new £1.5 billion runway suitable to take transatlantic and intercontinental Boeing 747s in time for the 2012 Olympics.

But local opposition to that plan is also being exacerbated by the Government. Transport Secretary Alistair Darling said he prefers to see runway expansion at Stansted first and then, even more controversially, at Heathrow.

Luton airport was taken over by Spanish motorways group Abertis in a £550 million deal last year.

It is likely soon to overtake Birmingham as Britain's fifth-busiest airport after its three London rivals and Manchester.

Air Sahara to fly to London from Jan 6

NEW DELHI: Private carrier Air Sahara announced on Wednesday the launch of its Delhi-London flight from January 6 with a lucrative promotional package of a free return ticket on its domestic network or a to and fro trip to Singapore.
http://www.thehindubusinessline.com/businessline/blnus/14301704.htm

British Airways To Cut 35% Of Its Managers By March 2008
30 November 2005
Edited Press Release

LONDON (Dow Jones)--British Airways Wednesday announced plans to re-structure its business with a 35% reduction in the number of its 1,715 managers by March 2008.

The figure comprises a 50% reduction in senior managers, from 414 jobs to 207, and a proposed 30% reduction in middle managers from 1,301 jobs to 911 jobs. This brings the total number of job cuts to 597.

Willie Walsh, chief executive, said: "I said when we reported our second quarter financial results last month that our costs were up in most areas and that, as a result, we need to re-energise our efforts to deliver a competitive cost base.

"We must lower our costs so that we can fund future investment in our business. Wednesday marks the start of a renewed effort to deliver our goal of a 10% operating margin. I am confident that these measures, however difficult, will help to build a robust British Airways and one that will benefit from sustained profitability. This action will enable us to carry out the investment we need to make in our business in the coming years in order to deliver a more competitive and efficient airline."

The proposed management job cuts are set to save the airline GBP50 million as part of its drive to achieve a GBP300 million cost reduction programme by March 2007, announced in January 2004.

The company plans to carry out the reduction in the number of senior managers in three phases. Phase one will see 94 of the top executives (23%) leave the business by March 31, 2006.

Further reductions will continue during the next two years with the 50% target achieved by March 2008.

Full proposals and a timetable for achieving the planned 30% reduction in middle managers will be developed and communicated by March 2006.

Mr Walsh added: "We are re-structuring the airline to remove duplication, simplify our core business and provide clearer accountability. Managers will have greater accountability for making decisions, delivering results and leading the business.

"The decision to embark on a major reduction in management numbers is not one I have taken lightly. We have extremely talented managers and they have led the way in transforming our company during the last four years since the tragic events of 9/11.

"But it is essential that we streamline our business further and I believe it is right that we have started by looking closely at the number of senior managers we need to deliver a sustainable, profitable future."

British Airways Adds Extra Flight Between Tashkent And London

TASHKENT, Dec 2 Asia Pulse - British Airways franchise partner BMED [British Mediterranean Airways] has announced that its service between Tashkent and London increased from three to four flights a week in the winter schedule.

Kashif Sadiq, British Airways commercial manager in Uzbekistan and Kyrgyzstan, said at press conference on 1 December: "The increase means customers can now fly from Tashkent to London on convenient morning flights four times a week".

"Our Tashkent to London route is extremely popular and we are delighted to now be flying four times a week to meet growing demand," he added.

The service between Tashkent and London is operated by BMED, using the Airbus A320 and A321 aircraft, offering Club World (business class) and World Traveller (economy class) cabins.

The airline says its morning schedule allows passengers to make same day connections from London to the rest of the world through British Airways' worldwide route network covering some 150 destinations in nearly 80 countries, and onto the OneWorld Network that covers over 550 destinations in more than 130 countries.

Will layoffs leave British Airways short?
Thomas Fuller
International Herald Tribune
2 December 2005

The white-collar layoffs planned by British Airways have shocked industry experts, who fear the airline will no longer have the management depth to run a safe and profitable business.

British Airways said Wednesday that the layoffs, the most drastic management cuts in recent European corporate history, would eliminate half of its executives and almost one-third of its managers over all. Willie Walsh, a former pilot who became chief executive of the company in October, said the cuts were designed to make British Airways a "more competitive and efficient airline." Walsh appeared to be trying to replicate the success he had in his previous job at the Irish carrier Aer Lingus, where he cut one- third of the staff and turned the airline around. But management experts said British Airways was a much bigger airline and a profitable one, earning l415 million, or $717.5 million, last year. The company estimated that the cuts would save l50 million a year. "I've never heard of something like this," said Gerard Cortey Dumont, a human resources consultant who helped oversee the restructuring of Gemplus, a smartcard company, including layoffs of 40 percent of its staff. "A company needs to be managed," Cortey Dumont said. "When you don't have enough experienced people to carry out management and daily operations, you pay for it." British Airways was trying to create "an enormous psychological shock," both to get the attention of investors and to push the personnel to increase their performance, Cortey Dumont said. But by cutting so deeply into the management, Walsh risked "paralyzing" the company, which has about 47,000 employees worldwide, he said. In a statement, Walsh praised the company's "extremely talented managers" and thanked them for "transforming" British Airways in the past four years, during which time the company cut 14,000 jobs. "But it is essential that we streamline our business further," he added, "and I believe it is right that we have started by looking closely at the number of senior managers we need to deliver a sustainable, profitable future."

Some analysts lauded British Airways for the swiftness of the restructuring effort. "In the American Civil War the best field surgeons could saw off your leg in 12 seconds," said Michael Segalla, a professor of management at HEC, a leading French business school. "A similar kind of thinking is going on here: Get it done quickly. The worst thing is to do a little bit and then come back six months later and say, 'Oh, sorry, we didn't quite clean up enough.' That kills the morale of the organization. Nobody can feel safe or secure." Airlines in Europe are facing increased competition from low-cost carriers over short and medium-haul routes. Some analysts think it is only a matter of time before competition increases on international routes as well. British Airways must also tackle a deficit in its pension plan of more than l1.4 billion. Senior managers will be cut from 414 to 207, and middle managers from 1,301 to 911. But a close reading of the company's statement showed room to maneuver. The reduction in middle managers was described as a "proposed" cut. The company said the reduction of executives would be done in three phases, leaving the possibility for reversal in case the plan backfires. "Phase one will see 94 of the top executives 23 percent leave the business by March 31, 2006," the company said. "Further reductions will continue during the next two years with the 50 percent target achieved by March 2008." Analysts were split as to whether the cuts would make British Airways more competitive.

"This is good news for shareholders," Hilary Cook, director of investment strategy at Barclays Private Clients in London, told Bloomberg News. But Segalla of HEC said the cuts make it look as if management is taking action, "but it rarely produces any lasting value for a firm."

Airlines follow Scottish money east
3 December 2005
The Scotsman

SCOTLAND'S burgeoning international air links are soaring off in a new direction as airlines seek to exploit opportunities in the new EU states in eastern Europe.

KLM yesterday announced it was stepping up Scottish flights to its Amsterdam hub, while The Scotsman understands Malev Hungarian Airlines is the latest carrier to be considering direct services to Scotland - from Budapest.

Links to Croatia and the Baltic states may follow, while Aberdeen could win its first east European route with a service by CSA Czech Airlines to Prague thought to be on the cards.

The latest moves follow a flurry of developments reflecting European carriers' eagerness both to launch direct flights between Scotland and the eastern states, and to channel more eastbound Scottish passengers through their hub airports.

KLM said yesterday it would increase return flights to Amsterdam from four to five a day from Glasgow and from three to four a day from Aberdeen. There are already five return flights from Edinburgh.

Vincent Knoops, KLM's UK general manager, said this would enable the airline to offer "superb connections" with eastern Europe destinations, such as Budapest, Bucharest and Kiev. He said: "Eastern Europe is an emerging market which is the fastest growing region for our European passengers to and from Scotland.

"There has been a sharp increase in demand due to economic development."

KLM also announced an added incentive to travellers, reinstating free wine and beer to economy class, after removing it a year ago because of the cost. The airline said this brought it into line with partners Air France, and savings had been made elsewhere instead.

CSA Czech Airlines is already pushing hard to persuade Scots heading to other parts of eastern Europe to travel through its Prague hub, having lost out to low-cost rivals Flyglobespan for much of the point-to-point tourist market between Scotland and the Czech capital. An Aberdeen-Prague route could be next to feed into its network.

Over at SN Brussels, the Belgian airline that emerged from the collapse of flag carrier Sabena, Glasgow-Brussels flights that were launched in June feed into its increasingly important east European network.

Cedric Leurquin, a spokesman for the airline, said its eastern expansion included stepping up Prague flights to six a day, and it was looking to add links from Edinburgh in the future.

He said: "Central Europe is a key market for us. We have to be the first there as Brussels is the capital of Europe.

"There is a clear expectation that there will be more business and diplomatic traffic between Brussels and the new EU states, and also increasing tourist travel, especially among expatriates from the east.

"There are no concrete plans for an Edinburgh-Brussels service, but it is certainly a destination we are looking at."

BAA Scotland, which operates Edinburgh, Glasgow and Aberdeen airports, sees eastern Europe as one of its biggest potential growth areas.

Stephen Baxter, who becomes the firm's managing director next month when he steps up from running Glasgow airport, said the initial focus was on Poland, but other countries would follow.

He said: "It's all about a 'halo' effect - once an airline sees a market for them that works, they might try other routes, and then other carriers go in and follow suit.

"Poland is currently the most up-and-coming market. There are quite a few Polish immigrants in Scotland and a lot of Polish workers over here, many of whom are in skilled jobs.

"We are talking to other countries, like the Baltic states. I think it's just a matter of time."

The spotlight is likely to shift next to Hungary, where BAA yesterday emerged as the favourite to buy Budapest airport after lodging a reported bid of nearly E1.6 billion (GBP 1.1bn).

Baxter said: "We can see the potential for substantial growth, with direct connectivity to Scotland."

Scottish businesses welcomed the new links and underlined the key importance of the region to the nation's economic prospects. Alan Mitchell, assistant director of CBI Scotland, said: "Eastern Europe is going to become an increasingly important market for Scottish-produced goods and an investment location for Scottish businesses looking to expand overseas.

"The financial services sector is among those best placed to exploit this market - everything from banking, credit cards and pensions.

"The manufacturing and electronics sectors in the region have good potential for investment because of their highly skilled workforce and very competitive wage rates.

"The economies of eastern Europe are relatively small but they are expanding fairly quickly and at rates Scotland does not seem to be able to match, at least in the short term."

BA passenger traffic up 6.3 pct in November

LONDON, Dec 5 (Reuters) - British Airways, Europe's third-largest airline, said on Monday its passenger traffic rose 6.3 percent last month on a year ago following a jump in first and business class travel.

BA said its load factor, an indicator of how many seats it filled, was up 1.9 points at 73.2 percent of capacity.

"Market conditions remain broadly unchanged, as significant promotional activity is required to deliver seat factors," BA said in a statement.

BA said premium first and business class traffic rose 12 percent in the month. Non-premium traffic rose 5.2 percent.

BA shares rose 1.6 percent to 326-1/4 pence by 1432 GMT. The broader market was 0.3 percent weaker.

A recovery in first and business class travel has helped BA offset the impact of stiff competition and high oil prices.

The airline's new Chief Executive Willie Walsh last week unveiled plans to axe 600 senior jobs at the airline to cut costs.

Virgin Atlantic continues expansion drive with extra services to key destinations worldwide
http://www.virgin-atlantic.com/en/gb/allaboutus/pressoffice/pressreleases/news/pr011205(a).jsp

Virgin Atlantic Airways today announced that it plans to continue its expansion drive by increasing services to many of its key business and leisure routes in the next month. Services to Mumbai will increase from three services per week to daily from today, its six-weekly Shanghai flights will also become daily from 7 December followed by daily services to Cape Town over the peak winter season from 29 January to 25 March 2006. Flights to Las Vegas have increased by 50% already this year with a fifth weekly service being added in July and a sixth weekly service launched in September.

Sir Richard Branson, Chairman of Virgin Atlantic, commented:

"I am delighted that Virgin Atlantic is continuing to increase its frequency on significant business and leisure routes including Mumbai, Shanghai, Cape Town and Las Vegas.

"Shanghai was a landmark route for us as it was the first route Virgin Atlantic had been granted the rights to fly on before British Airways. From day one Las Vegas has been extremely popular with our passengers and we hope to be able to offer a daily service from next year.

"Cape Town has always been one of our most popular destinations and there has been a high demand from both leisure and business travellers to increase our services so we are very happy that we can increase from two to three services per week during the peak winter season and then to daily during February and March.

"Mumbai is one of our newest routes, launched in March this year, thanks to the new liberal bilateral air services agreement we are able now to launch daily services from Heathrow.

"The demand for popular long haul routes continues to rise and Virgin Atlantic is committed to sustain and build upon its growth with further route expansion next year to Dubai, Virgin Atlantic’s first Middle Eastern destination, and Jamaica, the eighth Caribbean island on our route map."

Virgin Atlantic launched flights between London Heathrow and Mumbai on 27 March this year. Following the recent bilateral agreement between the UK and Indian governments Virgin Atlantic is now able to increase these services from three per week to a daily service from 1 December on an Airbus 340-300 aircraft. All flights will depart Heathrow at 21:30 arriving into Mumbai at 11:55 the following day. Flights will depart Mumbai at 14:55 and arrive at Heathrow at 19:35.

Services between Heathrow and Shanghai began in May 1999 and will increase from six services per week to a daily service from 7 December this year on an Airbus 340-600 aircraft. All flights will depart Heathrow at 16:00 arriving into Shanghai at 11:15 the following day. Flights will depart Shanghai at 13:30 and arrive at Heathrow at 17:50.

The twice-weekly services between Heathrow and Cape Town will increase to seven services per week during the winter season. The current scheduled twice-weekly service will increase to three services per week between 7 December 2005 and 25 January 2006. From 29 January 2006 until the end of the winter season on 25 March 2006, services will increase to seven per week. The new Wednesday service will start from 7 December, and will depart from Heathrow at 18:30 and arrive in Cape Town at 08:30 the following day. The return flight will depart on Thursdays at 12.25 from Cape Town and arrive at Heathrow the same day at 22.40.

From 29 January 2006, the daily services will operate at a retimed schedule for the period up to 25 March 2006. Flights will depart every day from Heathrow at 18.00 arriving into Cape Town at 08.00 the next day. Return flights will depart Cape Town at 23.10 and arrive into Heathrow at 09.25 the following day. Flights in December and January will be operated with a Boeing 747-400 aircraft and from 29 January flights will be operated with an Airbus 340-300 aircraft.

Virgin Atlantic currently flies to 26 destinations worldwide. Services to Dubai will launch in March 2006 and services to Jamaica will launch in July 2006.

This article is a little dated but on the same theme:


Branson predicts global growth for Virgin Atlantic

Sir Richard Branson yesterday outlined Virgin Atlantic’s strategy for growth through a mixture of new routes and extra capacity on Virgin Atlantic’s network, the establishment of new airlines across the world’s developing aviation markets and launching services from Europe’s capital cities to America, under a new EU/US Open Skies deal.

Speaking on the day of the airline’s first flight to Sydney, Australia, Sir Richard said:

"Adding Sydney to our route network is another milestone in Virgin Atlantic’s success story. The destination is the airline’s 23rd and further develops our presence in the Asia – Pacific region. It also demonstrates our strategy of growing the airline by 10-15% per year. We’ll achieve growth in both the leisure and business markets.

"From our very first flight between London and New York and the early development of our routes to Miami and Orlando the platform of our success has been our strong leisure traffic. Other airlines have in the past disparaged economy travellers and sought to concentrate on the business travel market. This is a mistake that Virgin Atlantic has never made and will never make.

"Over the years Virgin Holidays has become the biggest tour operator to Florida and in a few short years operating to the Caribbean is already closing in on the number one spot in that region as well. We are going to build on this success by significantly expanding our leisure routes out of Gatwick and Manchester; adding a number of new destinations that will see Virgin Holidays more than double in size.

"Having said that I’ll never forget Freddie Laker’s advice not to build an airline solely on economy passengers. Accordingly, we will be adding both capacity and new destinations out of Heathrow on key business routes. Our wish list of new routes includes Melbourne, Dubai, Bangkok, Chicago, Toronto, Jamaica, Nairobi, and Rio.

"Our recent order for up to 26 new Airbus A340-600s means that in total we have firm orders for 24 aircraft and options for a further 19 over the next few years. Together with our existing fleet of 29 aircraft these aircraft will give us the potential to double the size of the airline over the next five years. As well as expanding to new markets our award winning Upper Class Suite is enabling us to grow our market share on our existing route network."

Richard went on to outline the second element of the growth strategy:

"Allied to growing Virgin Atlantic’s core services we are also planning to use our successful experience with Virgin Blue and Virgin Express to set up a number of new airlines around the world. Virgin America is making great progress towards a launch in 2005 and Virgin Nigeria is aiming to start flying from Spring next year. The latter will be 49% owned by Virgin Atlantic and serves as a template for future expansion.

"Growth in the established aviation markets is likely to be steady in the coming years but growth in the developing markets like Africa, India and China is likely to be much more pronounced – 10%, 20% perhaps 30% per year. Virgin’s established world class aviation reputation and our development of the Virgin brand puts us in a unique position to set up new aviation ventures around the world. The Virgin brand is in the top 10 most respected brands in almost every trading area in the world.

"The Virgin brand has a proven track record of success in aviation and we’ve proved we can work in both long and short haul across a number of countries. As Virgin Nigeria demonstrates, where possible we’d like to use the strength and experience of Virgin Atlantic to give birth to these new airlines."

Finally, Richard outlined the third aspect of the strategy:

"We believe that the first ever "Open Skies" agreement between the US and EU will be agreed in the near future. We expect a true liberalisation of the current constraints and regulations which have held back airline growth and, in particular, we expect to be given the opportunity to operate Virgin Atlantic services from other European cities to the big US destinations like New York and Los Angeles.

"The Virgin Atlantic brand is clearly well established in the major US cities and we’re pretty well known across Europe. We’d be confident that the quality of our service would enable us to compete with the likes of Lufthansa out of Frankfurt, Air France/KLM out of Paris and Amsterdam, Alitalia from Rome and even other European business centres. Our Upper Class Suite beats every competitor across Europe hands down and we’d reflect the culture of each country with our crews, onboard service and inflight entertainment."

British Airways Fires Worker Over Walkout
15 December 2005

LONDON (AP) - British Airways PLC said Thursday it had fired a worker for orchestrating a walkout that grounded hundreds of flights at Heathrow Airport this summer.

BA said the employee had been "found guilty of gross misconduct for playing a leading role in the walkout."

A second employee, also found guilty of gross misconduct, was given a written warning, suspended without pay for a month and banned from staff air-travel privileges.

Disciplinary proceedings continue for a third employee. All three workers, who were not identified by name, are shop stewards for the Transport and General Workers' Union.

Its general secretary, Tony Woodley, said the union was "surprised and disappointed with these decisions."

BA said the employees had the right to appeal.

The dispute began when catering company Gate Gourmet Inc., which is owned by private equity group Texas Pacific, fired more than 660 employees for staging an unauthorized walkout over working conditions in August. Hundreds of British Airways baggage handlers, loaders and bus drivers at Heathrow walked out in sympathy, leading the airline to cancel hundreds of flights, stranding more than 100,000 travelers.

UK Regulator Outlines Plans For Airport Pricing
20 December 2005

LONDON (Dow Jones)--The U.K.'s aviation industry regulator Tuesday outlined its proposed methods of setting pricing controls for London's three main airports between 2008 and 2013.

These plans will dictate the maximum price that operator BAA PLC (BAA.LN) can charge airlines for using the airports and will likely have an impact on its investment plans, particularly at Stansted.

In its first major consultation paper on the forthcoming review of pricing controls at Heathrow, Gatwick and Stansted, the CAA said it's proposing that each of the BAA airports be regulated on a 'stand-alone' basis. This means price caps on airport charges will be set by reference to each airport's own air traffic, costs and assets.

Earlier this year, BAA had warned that a plan to construct a second runway at Stansted by 2013 could be delayed if the CAA opposed its preferred way of financing the project. Arguing that the runway will have economic benefits to southeast England, BAA argued that the CAA should allow the runway to be cross financed with levies on passengers passing through Heathrow and Gatwick.

Airlines using Heathrow and Gatwick strongly opposed these plans.

Speaking at a news conference, Harry Bush, the CAA's director of economic regulation, said the regulator hasn't seen any evidence yet that airports shouldn't be regulated on a stand-alone basis. The CAA remains open to comment, he added.

In a brief statement, BAA said it will carefully consider the CAA document and issue a formal response before the end of the consultation period.

The CAA is also proposing to set caps on airport charges by reference to the costs of the airport as a whole and by taking into account projected commercial revenues.

It said there may be some scope for prices to rise between 2008 and 2013 in order for BAA to assess demand from airlines in advance of major investments at its airports. The airport operator has forecast that the second runway at Stansted plus associated airfield facilities could cost GBP2.7 billion. It's also planning to redevelop Terminal 2 at Heathrow.

The CAA said recent discussions regarding Heathrow and Gatwick have made good progress, but no substantive progress have been made in the last six months for Stansted.

Next May, the regulator will summarize responses to the consultation document but the new pricing regime won't become effective until April 2008.

UK PRESS: Watchdog Slams British Airways Safety
2 January 2006

LONDON (Dow Jones)--British Airways PLC (BAB) jets have suffered mid-air failures because of systemic problems with their maintenance, the Sunday Times reported, quoting air accident investigators.

After inquiries into four mid-air incidents, the U.K. government's Air Accident Investigation Branch, or AAIB, said that there are safety problems that may be "widespread within the organisation", the report said.

The investigators also warned in a report that it appears that shoddy working practices are accepted as the norm by some maintenance staff, the newspaper reported.

According to aviation analysts, AAIB's criticism is unprecedented for an airline that has won a reputation for being one of the best maintained fleets in the world, the newspaper said.

British Airways was not immediately available for comment.

^^ That has something to do with a BA 747 which lost engin 2 just after departure from JFK 2 days ago.

Fury greets new plan for Heathrow expansion
http://observer.guardian.co.uk/uk_news/story/0,6903,1676272,00.html

- Government starts countdown to building third runway
- Mass campaign planned as eviction threat looms

Juliette Jowit and Gaby Hinsliff
Sunday January 1, 2006
The Observer

The bitterest environmental battle of a generation is set to erupt over government plans to give the go-ahead for a massive expansion of Heathrow airport.

Thousands could be forced to leave their homes, say campaigners who have pledged to block construction by all possible means.

Plans to build a third runway at what is already the world's busiest international airport were thought to have been frustrated because of the threat of air pollution from more flights.

But Chancellor Gordon Brown has indicated his determination to find a way round the problem, launching a new study aimed at 'identifying solutions that would allow' the runway to be built. The move reflects Brown's wider fears that the economy may suffer from years of wrangling over new ports, airports and roads.

The news has horrified green groups and local organisations. Yesterday they warned that giving the green light to Heathrow would trigger a huge backlash, not only from residents under the flight path but from the wider environmental movement.

John McDonnell, the Labour MP for the Hayes and Harlington constituency which lies next to the airport, met the aviation minister Karen Buck shortly before Christmas.

He confirmed that the government wanted to press ahead: 'The industry and government are doing everything they possibly can by way of trying to create an atmosphere of inevitability about Heathrow.' However, he warned they were not understanding the difficulty of the task: 'No matter what ministers want, they can't get round the science of air pollution. And they have underestimated the potential of an environmental campaign. My neighbouring Conservative MP, John Randall, has threatened to lie down in front of the bulldozers. We're getting Tory Swampys [green activists] on this.'

McDonnell claimed thousands of people could be forced to leave their homes because the airport extension would render them unlivable. However, other studies suggest the number of affected houses could be as low as several hundred.

Industry chiefs argue the British economy will lose billions of pounds if an over-congested Heathrow loses traffic to European rivals and businesses shun the UK to be nearer better international links.

In its aviation 2003 white paper, the government said Heathrow's expansion would be blocked or delayed for at least 10 to 15 years because of difficulties over noise and pollution. Instead, they recommended a new runway at Stansted airport in Essex.

However, in comments buried deep in his recent pre-Budget Report, which have only just emerged, the Chancellor stressed the economic importance of Heathrow's 'unique role in supporting economic growth across the country'.

And he detailed plans for 'extensive' modelling work to 'understand the nature and extent' of air quality problems at Heathrow, adding:

'This work is aimed at identifying solutions that would allow construction of a third runway to take place within relevant air quality limits.' Brown is known to want to speed up the planning process for major projects such as airports with more decisions taken on 'national and strategic' grounds - such as economic benefit - rather than becoming buried in years of local argument.

Ministers are also likely to get strong backing for Heathrow from a transport review by former BA airline chief executive Rod Eddington, expected this spring to recommend streamlining the planning process.

Campaigners said Brown's comments were a significant shift in favour of a third runway, reflecting both new research suggesting aircraft pollution was not as bad as feared and growing concerns that the airport operator, BAA, could not raise money to expand Stansted.

'While the focus is on Stansted, almost coming up on the inside track unnoticed is all this work on Heathrow,' said John Stewart, chairman of anti-expansion campaign group Hacan ClearSkies. '[Brown] is not going to say something if he doesn't think it's going to happen.'

Tony Bosworth, of Friends of the Earth, warned the environmental impact would be the biggest since the controversial road schemes at Twyford Down and Newbury in the Nineties: 'It will be a huge cause célèbre for the environmental movement.'

Lord Soley, a former west London Labour MP and campaign director for the pro-expansion group Future Heathrow, said both the Chancellor and Prime Minister supported the case for Heathrow, adding: 'Tony and Gordon recognise the way the world economy is changing and the idea we have got to be at the cutting edge of technology in Europe. That means we can't allow one of the key high-tech industries, airports and aircraft, to fall behind.'

A Treasury source said Brown saw a strong case for making airport expansion in the UK easier but added: 'People are waiting for Eddington's review before there is any movement.' Final options for Heathrow will not be put to ministers until this autumn. The shift has prompted speculation that the government is retreating over the idea of developing Stansted.

Thaey need to build it! It's stupid the UK's number one airport has only 2 runways, and the 3rd airport of the world!

BA CEO says will not tolerate further strikes


ha ha. good one, ,lmao

British Airways posts higher December traffic

LONDON, Jan 5 (Reuters) - British Airways reported a stronger December than a year earlier as passenger traffic rose 4.7 percent led by a rise in premium fare customers.

Europe's third-largest airline by traffic said on Thursday its load factor, which measures how efficiently it is filling its planes, rose to 74.2 percent from 72.7 percent.

Premium traffic rose by 9.3 percent, while non-premium traffic rose 4.1 percent, BA said in a statement to the stock exchange. BA measures traffic using revenue passenger kilometres (RPKs), which multiplies the number of passengers flown by the distance covered.

New routes to India and Shanghai had helped traffic figures, British Airways head of investor relations George Stinnes told reporters on a conference call.

"We've obviously committed to developing the Indian routes pretty aggressively," he said.

Cargo traffic measured in so-called cargo tonne kilometres rose by 0.2 percent.

The company said market conditions remained broadly unchanged.

"Volumes are continuing trends we've seen in past months," Stinnes said.

"In the second half we're going to give back some of the improvement we saw in the first half," he said regarding yields, while reiterating the airline's expectation for improvement over the full financial year.

Stinnes said already announced plans to revamp its UK short-haul operations would be unveiled in coming weeks while it's European business faced no such shake-up: "This year we expect to break even in our European short-haul business and nothing has changed that."

A key rival, European low-fares carrier Ryanair , on Thursday reported a 29 percent jump in passengers in December from a year earlier.

BA fightback starts with cut in UK fares
Terry Macalister
10 January 2006
The Guardian

British Airways will today present plans for a long-awaited fightback against Ryanair and easyJet in its home market by slashing UK fares and rebranding services at its CitiExpress subsidiary. But fears that the shake-up for BA's "regional services" by the new chief executive, Willie Walsh, will involve staff, route and aircraft cuts will not be realised - for the time being.

The moves come 24 hours after easyJet announced another successful year with passenger numbers up 18%. Ryanair reported a 26% rise last week.

Takeover speculation raised easyJet shares 5.5% to 400.5p - their best level for three years - as the Luton-based airline confirmed it had hired the investment bank Goldman Sachs amid rumours that it is being stalked by FL Group of Iceland.

BA is to keep the 2,250 employees and 50 aircraft operated by its wholly owned subsidiary CitiExpress despite running up continuing losses at the Manchester-based firm. David Evans, the managing director of CitiExpress, will announce fare cuts today in a determined attempt to boost revenues and win back customers who have migrated to no-frills operators.

The progress of easyJet was underlined when it revealed new figures showing passenger numbers for 2005 had risen to more than 30 million from just under 26 million. Revenues increased from pounds 1.1m in 2004 to nearly pounds 1.4m, while the load factor remained relatively steady. The airline said it filled 84.9% of its seats in 2005, up from 84.6%, though there are signs of this performance slowing. In December it filled 80.5% of its seats, down 0.2% from the same month a year earlier.

Andrew Harrison, the chief executive, said December's performance was in line with expectations at easyJet, which has seen FL raise its stake in the company to more than 16%.

Meanwhile, BA has reported a 4.7% increase in worldwide traffic for last month.

BA regional future rests on being profitable
11 January 2006
Financial Times

British Airways would close or sell its lossmaking UK regional business, if it failed to become profitable within two years, David Evans, managing director of British Airways CitiExpress, said.

The airline yesterday announced the latest stage in restructuring the business in order to make an operating profit in the financial year to the end of March 2008.

The operation is to be rebranded BA Connect and be aligned more closely with the budget airline model of lower fares and simpler service levels.

BA flights out of UK regional airports to other UK cities and to Europe will abandon business class and all catering will have to be bought onboard.

The changes will not apply to BA flights at London City airport or on main services to London Heathrow and Gatwick.

BA Connect will operate chiefly from five BA regional bases - Manchester, from which it flies to 20 destinations, Birmingham, Edinburgh, Bristol and Southampton.

The airline is reducing its lowest fares by up to 40 per cent and will be selling about 2m seats or 40 per cent of its capacity at the lower fares.

The existing BA CitiExpress business handles some 3.5m passengers a year and is aiming to increase this by 10 per cent to 3.8m in the coming year.

Mr Evans said that the business was already in the middle of a two-year programme to cuts costs by Pounds 35m in the regions by March 2007. No further job cuts would be made as a result of the low-fare strategy, he said, but the existing workforce of 2,250 was expected to be reduced further through natural attrition.

The regional business made an operating loss of Pounds 30m in the year to March 2004 and a loss of about Pounds 20m in the year to March 2005.

Overall, BA's short-haul operations in Europe are expected to return to profit in the current financial year to the end of March. This follows eight years of heavy losses totalling Pounds 1.2bn.

In the UK regions BA is facing fierce pressure from the still rapid growth of the low-cost airlines led by Ryanair and EasyJet, and including Jet2.com in northern England, Flyglobespan in Scotland and Flybe.

BA has pulled out of several UK cities including Plymouth, Cardiff and Leeds-Bradford.

Andrew Lobbenberg, analyst at ABN Amro, said the mixed BA regional fleet of aircraft still had much higher unit costs than most of the rival low-cost carriers.

BA to cut up to 1,500 jobs under Heathrow consolidation plan - report
15 January 2006

LONDON (AFX) - British Airways PLC could cut up to 1,500 jobs as part of a plan to consolidate its Heathrow operations at the London airport's fifth terminal, the Sunday Express reported, citing research by Deutsche Bank.

The job losses are likely to fall on check-in staff and baggage handlers as BA eliminates duplication between the two terminals it currently uses, the Sunday Express said. The airline employs 43,000 people worldwide, including 5,000 at Heathrow.

A BA spokesperson said the job loss estimate was 'pure speculation'.

'Terminal 5 is a major focus for us, but it has not even been built yet. It is far too early to be talking about numbers at this stage.'

The report comes as pilots' unions are warning of possible strike action over proposed changes to BA's retirement benefits scheme aimed at cutting the airline's 1.2 bln stg pensions deficit.

BA shares closed 6 pence lower at 331 pence on Friday, valuing the company at 3.5 bln stg.

UK PRESS: UK Police To Get Internal Air Passenger Details
24 January 2006

LONDON (Dow Jones)--U.K. police and security services are to be given access to advanced travel information on more than 40 million passengers who travel on domestic flights and ferries under legislation to be announced Wednesday, the Guardian reports.

Airlines will have to provide the personal online details of all passengers as they book seats and subsequently check in at the airport.

The Guardian reports the system will enable police to check names against watchlists for terrorist suspects and wanted criminals and to develop a profiling system of those worthy of further scrutiny.