News From Around The World

Richard Maslen March 31, 2011

AIRASIA AND EXPEDIA TO ESTABLISH JOINT ONLINE TRAVEL AGANCY

Asian low-cost carrier AirAsia and Expedia have launched a joint venture Online Travel Agency to sell flights, hotels and holiday packages in the Asia-Pacific region. The two companies will share equal ownership of the new partnership, the first of its kind globally between a low cost carrier (LCC) and an online travel agent (OTA). Under the joint venture agreement, a new company will be formed to operate Expedia’s branded businesses in Japan, India, Southeast Asia and other East Asian markets, as well as AirAsia's AirAsiaGo and GoRooms businesses. The new venture will certianly build on AirAsia's unique local marketing expertise, along with Expedia's world leading technology, and both companies' quality travel products in the region and beyond. "With this announcement AirAsia and Expedia are launching a revolution in online travel for Asia. This partnership between two global brands and leaders in the travel industry comes at a time when online travel bookings are exploding in the region. Asia, and its booming economy, offers a huge opportunity to develop a set of loved consumer brands,” said Dato' Sri Dr Tony Fernandes, Group CEO, AirAsia. “We are excited to have Expedia as our partner and are proud to welcome them to Asia. We've taken our time to find a great partner that understands Asia and matches our drive, passion and aspiration." The new venture will also have the exclusive online third-party distribution rights in the region for AirAsia and AirAsia X flights and travel packages meaning that with only a “few exceptions in the region” the only place to find and book AirAsia flights online will be via AirAsia.com, AirAsiaGo.com and Expedia, according to the airline. In addition, AirAsia (AirAsia Malaysia, AirAsia Indonesia, AirAsia Thailand, AirAsiaX and other AirAsia joint venture airlines) and Expedia are partnering outside of the new venture to make Expedia the exclusive third party travel provider for AirAsia inventory.

RYANAIR TO INTRODUCE €2 COMPENSATION LEVY

Irish budget carrier Ryanair has this week announced it would introduce a €2 levy per passenger for all bookings made from April 4, in order to fund its costs of flight cancellations and delays. The airline confirmed that over the past year it has suffered costs of over €100m arising from flight cancellations, delays and providing right to care, compensation and legal expenses arising from more than 15,000 flight cancellations and over 2.4 million disrupted passengers, with the majority of these claims arising in three periods during which it was prevented from flying, due, it claims to “the failure/inaction of third parties”. These relate to the Icelandic volcano airspace closures of April/May 2010; the snow closures of many EU airports during November/December 2010 and over 15 days of national ATC strikes, primarily in Belgium, France, Germany and Spain in summer 2010, which caused repeated flight delays and cancellations. Ryanair says that “the unfair and discriminatory elements” of the airline EU261 regulations should be “amended to relieve airlines of the burden of providing care in cases where the cancellations and/or delays are clearly not the responsibility or fault of the airlines”. It claims that it is “unfair and discriminatory” that airlines are made liable for providing refunds, meals, hotels and phonecalls during such periods of disruption. The airline claims that these expenses “cannot be loaded onto airlines without being passed on to passengers” and its new levy will “help to defray these costs”.

CHINA SOUTHERN OUTLINES A380 CONFIGURATION

China Southern Airlines is set to introduce its first Airbus A380 on a new route from Beijing to Paris CDG, according to sources in China. The airline will be the first operator of the type in China and is scheduled to receive the first of five aircraft it has on order in August. Its first aircraft is currently undergoing interior configuration work in Hamburg, Germany and the carrier has yet to formally announce the proposed layout for its Super Jumbos. According to sources, the carrier has been looking at a three-class arrangement seating 506 passengers – 8 in First Class, 70 in Business Class and 428 in Economy. This plan is based around the First Class cabin being situated at the front of the lower deck and then an Economy section in a 3-4-3 design. The upper deck will be dominated by a staggered Business Class cabin with around ten rows of Economy seating at the rear in a 2-4-2 arrangement.

LONDON STANSTED WINS ‘WORLD’S BEST LOW-COST AIRPORT’ AWARD

London Stansted Airport was this week named the ‘world’s best low-cost airport’ at the 2011 World Airports Awards in Copenhagen, Denmark. The UK’s third busiest airport scooped the best in category prize in the annual Skytrax airport customer survey, based on the feedback of 11.38 million passengers, across 100 different nationalities and covering 240 airports worldwide. “I’m absolutely delighted Stansted has been named as the best low-cost airport in the world, especially as the award is decided by those who matter the most - the passenger,” said Nick Barton, Managing Director, London Stansted Airport. “Stansted is firmly established as a world leader at serving the low-cost airline sector that has transformed air travel. We have a route network that stretches to around 150 destinations offering more direct scheduled European flights than any other airport in the world.” The airport is currently served by some of the biggest European budget carriers, including Ryanair, easyJet, Germanwings and airberlin, as well as AirAsia X, one of the new breed of long-haul, low-cost airlines. “These are some of the most profitable and innovative airlines in the world, operating modern and efficient aircraft fleets, and who continue to grow and open new markets. It’s thanks to the help and support of our excellent airline partners that we have gained this global honour and recognition,” added Nick Barton.

TAM SET TO ACQUIRE STAKE IN REGIONAL OPERATOR TRIP

Brazilian carrier TAM Airlines has signed a non-binding agreement to strengthen its relationship with domestic operator TRIP Linhas Aéreas, an arrangement that could lead to it acquiring a minority stake in the company. TAM and TRIP are working to identify new ways that the two companies can co-operate, beyond their existing codeshare arrangement. If these proceed and receive approval by the applicable authorities, TAM says it will acquire “a minority stake in TRIP representative of 31 per cent of its total capital stock and 25 per cent of its voting capital stock and the remaining in preferred shares”. TAM is seeking to boost its share of the domestic and regional market, providing feed to its long-haul routes. It claims that the existing route networks of the two carriers are “mostly complementary” and that improvement in connectivity “could lead to an even greater flow of passengers for both companies”.

BAD WEATHER AND ASH CLOUD DISRUPTIONS FAIL TO IMPACT LOST BAGGAGE FIGURES

Despite an unprecedented 300,000 flight cancellations and a new record of 2.44 billion people travelling by aircraft last year, the air transport industry has maintained the overall downward trend in baggage mishandling, according to the latest annual report from SITA. In its 7th Annual Baggage Report, launched this week at the Passenger Terminal Expo industry event in Copenhagen, it shows that the rise in mishandled baggage claims last year was significantly less than the 10.41 per cent rise in passenger volumes recorded. SITA, the world’s leading specialist in air transport communications and IT solutions, reported a 4.4 per cent rise in delayed baggage files last year despite three monthly spikes ranging from 15 per cent to 20 per cent, due to bad weather in February and December, and the volcanic ash cloud in May. However, the year saw the first increase in baggage mishandling since 2007 when 42.4 million bags were delayed; a rate of 18.86 mishandled bags per 1,000 passengers. In 2010, 29.4 million bags were delayed on arrival which translates into a mishandling rate of 12.07 bags per 1,000 passengers. The mishandling trend has been downwards since 2007 thanks, it is believed, to improved technology and greater vigilance on the part of airports and airlines.

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