News From Around The World

Richard Maslen April 07, 2011

EUROPEAN AIRLINES DISCUSS MERITS OF SOCIAL MEDIA

Delegates at this week’s European Regions Airline Association (ERA) Regional Airline Conference in Malta discussed a range of topics from airport experience, technological advances and even the issue of medical emergencies, but it was the opening address on the growing use of social media in strengthening brands to gain loyalty that was met with a lot of interest. The panel, titled ‘the pre-flight experience’, looked at how, in an increasingly computer-literate society, a new era of booking flights online and passengers taking responsibility for their own travel plans is here - and here to stay! Chaired by Martin Isler, Executive Vice President Airline, Luxair Luxembourg Airlines, it also questioned what do passengers really want from their ‘pre-flight booking experience’, what greater automation is likely to be available to ensure this journey of technological development continues to flourish, and how can airlines really generate passenger loyalty? The answers were interesting to say the least, with the suggestion that social media is key to airline marketing. Around 61 per cent of the population now has a mobile telephone and direct access to these Internet platforms while on the move. Although only four per cent currently have smartphones, this number is expected to soar in the coming years and panelists Simon Evans from the UK Civil Aviation Authority; Svein Bjørnstad, Managing Director, Braathens IT Solutions and Ian Murray, Senior Director Marketing & Product Development, Discover the World Marketing, agreed that airlines will need to tap into the fact that passengers will soon book more via apps and social media. Looking at some examples in action, Aegean Airlines advertises heavily on facebook and youtube, while Binter Canarias has more than 24,000 facebook followers. Finnish carrier Blue1 advertises heavily via youtube, which is the second most visited website on planet with 60 million users, and the suggestion is that carriers participation on social media will soon be as important as the messages there are delivering via their own webpages.

AIRBUS BRINGS FORWARD A320NEO LAUNCH

Airbus is to bring forward the entry into service of its new A320neo to October 2015 from the second quarter of 2016 date it had originally specified. The revised timetable was outlined this week by the European manufacturer after it confirmed that the Pratt & Whitney's PW1100G turbofan would be the lead development engine. Airbus has yet to formally announce a launch customer for the upgraded variant although Indian carrier IndiGo, lessor International Lease Finance Corporation (ILFC) and Lufthansa have all opted for the PW1100G ahead of the CFM International Leap-X engine and could all vie to be the first to fly the type. There have already been more than 300 firm and tentative orders for the new family and John Leahy, Chief Operating Officer, Customers, Airbus confirmed that around 200 more will be agreed by the time of the Paris Air Show in June. Having listened to customer feedback the manufacturer has also modified the order the family members will come to market, with the A319neo following six months behind the A320neo and then the A321neo a further six months later.

US AIRWAYS INTRODUCES FIRST CLASS ON US AIRWAYS EXPRESS REGIONAL JETS

US Airways is to retrofit the fleet of Bombardier CRJs and Embraer E-Jets that fly US Airways Express services with a First Class cabin. It will begin this process in September and expects to complete all 110 aircraft by January 2012. "With the installation of First Class on US Airways' Express partner aircraft we're able to offer our First Class customers seamless, same-class service to the more than 85 destinations these aircraft serve," said Andrew Nocella, Senior Vice President Marketing and Planning, US Airways. It will then mean that 61 per cent of its flights will operate with a First Class service, the highest of any US carrier. The airline anticipates that the addition of First Class to US Airways Express will be "revenue positive in the first year" due to the additional revenue from First Class sales and upgrades.

VIRGIN BOSS CONFIRMS THAT AIRLINE SALE IS ON THE CARDS

Sir Richard Branson has given the strongest indication yet that he is prepared to sell a large chunk of his controlling stake in Virgin Atlantic Airways, but he has no immediate plans to turn his back on the airline. Earlier this year Deutsche Bank was appointed to complete a review of the Virgin Atlantic business and a number of airlines including Delta Air Lines and Etihad Airways were revealed as potential suitors for the UK carrier. Sir Richard and the airline’s senior management team have refused to comment until this process comes to an end, however, speaking in the US this week, he confirmed that the airline was “in discussions with various people and will see what comes out of it.” He currently has a 49 per cent shareholding, with the remainder held by Singapore Airlines, which is understood to be open to listening to offers for its own stake. Sir Richard has no plans to abandon the airline he founded though. “I will certainly still be extremely involved in the airline, whatever we decide to do, and I will still be a major shareholder,” he said, but confirmed that “it makes sense for Virgin Atlantic to have a partner” to compete with its rivals. The terms of this deal are likely to push the airline towards one of the global alliances. With British Airways holding a key position in oneworld that is not a real option, but SkyTeam and Star are both possibilities. “I think we will be able to announce within a few months an alliance partner,” added Sir Richard.

EUROPEAN COMMISSION LAUNCHES INFRINGEMENT PROCEDURES AGAINST TWO MEMBER STATES

The European Commission has today launched infringement procedures against Bulgaria and the Czech Republic over their bilateral air service agreements with Russia, sending each of these Member States a formal request for information known as a 'letter of formal notice'. The Commission is concerned that the agreements may hinder equal treatment of EU airlines and competition between European airlines and provide the basis for Siberian overflight charges that may be illegal under EU anti-trust rules. Similar letters of formal notice have already been sent to 23 other Member States in recent months, and the Commission is now assessing the compliance with EU law of the remaining two Member States' bilateral aviation agreements with Russia. "The fact that European Union airlines have to pay to fly over Siberia on their way to Asian destinations can not only make the flights more expensive, but can also lead to unfair competition between EU and non-EU airlines,” it said in a statement. The view of the European Commission is that air transport agreements must treat all EU airlines equally, and respect antitrust rules. Otherwise some EU airlines may be treated less favourably than their direct competitors or face paying unreasonable additional charges which can get passed on to consumers in higher air fares.

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