News From Around The World

Richard Maslen April 14, 2011

AIR CANADA SET TO LAUNCH LEISURE AIRLINE

Air Canada is considering establishing a new leisure operator that will provide flights into the Caribbean, Mexico and Europe. The carrier is reported to have developed a draft business plan for the start-up, which will fly with six Airbus A319s and four Boeing 767-300ERs but which has ambitions to grow to 50 aircraft in the future. Details of the proposed venture entered the public domain after a revised labour contact was tentatively agreed between the carrier and the Air Canada Pilots Association, a vital prerequisite for the changes to be introduced. The airline and the pilots’ union have agreed to negotiate a pay structure for the discount unit, which according to official documentation “is not intended to replace mainline routes the company considers financially viable”. Subsidiary company Air Canada Vacations already operates in markets such as Mexico, the Caribbean, Europe, Central and South America and Asia, but its tour packages are generally targeted at mid- to higher-end travellers in the charter sector. This new venture will instead focus on the low-cost market and will compete directly with the likes of Transat AT, Sunquest Vacations and WestJet Vacations.

VOLCANIC ASH CRISIS EXERCISE TO TEST NEW PROCEDURES

One year on from the eruption of the Eyjafjallajokull volcano the European Commission, EUROCONTROL, and the European Aviation Safety Agency (EASA) were among the key participants in a major International Civil Aviation Organization (ICAO) crisis exercise to validate changes and improvements to the volcanic ash contingency plan and procedures. The exercise took place on April 13-14 and involved over 70 airlines, 14 air navigation service providers, 10 national regulatory authorities, as well as the Volcanic Ash Advisory Centre London (VAAC). As part of the simulation exercise, the newly-created European Crisis Coordination Cell (EACCC) was activated, and a new tool produced by EUROCONTROL, the "European Crisis Visualization Interactive Tool for ATFCM" (EVITA) was tested. The exercise will be simulation only and there will be no impact on real flights. Following on from the exercise, in early June there will be a Europe-wide assessment session to debrief on lessons-learnt and to agree follow-up actions.

QATAR AIRWAYS EXPANDS CARGO NETWORK

Qatar Airways Cargo has announced an expansion of its dedicated freighter routes with new services to Hanoi, Kozhikode and Bengaluru. Freighter operations to Kozhikode and onto Bengaluru, formerly known as Bangalore, are served with an Airbus A300 freighter on the route boosting Qatar Airways Cargo freighter capacity in India by an additional 40 metric tonnes a week. Cargo flights from Doha to Hanoi begin today (April 15), stopping in Hong Kong on the return sector. The weekly service is operated with one of the airline's dedicated Boeing 777 freighters and follows the successful launch of passenger flights to the Vietnamese capital in November 2010. Qatar Airways also operates scheduled services to Ho Chi Minh City and is the only Gulf carrier flying to Vietnam. In India, Qatar Airways currently operates passenger and cargo flights to 12 cities. The additional freighter service to Kozhikode and Bengaluru will complement existing cargo operations to Kolkata, the West Bengali city that will also become a passenger route when Qatar Airways commences daily flights on July 27. Cargo payloads include a multitude of goods ranging from medical and pharmaceutical supplies to vegetables and personal effects. Qatar Airways Chief Executive Officer Akbar Al Baker said that the new freighter services presented an opportunity to grow business in Vietnam and also bring welcomed extra capacity to the airline's cargo operations in India. "Adding Hanoi to our cargo network is an astute move for us as we've identified this as a major growth market," he said, adding, "Vietnam exports a lot of manufacturing goods and it is the world's second highest exporter of rice”. Meanwhile, in India, he acknowledged “we've seen a big upward trend in cargo movements” and by connecting Kozhikode and Bengaluru together, “we ensure that we are utilising the available space onboard our freighter to the maximum”.

BRISTOL AIRPORT CELEBRATES MILESTONE

Bristol Airport and low-cost carrier easyJet have celebrated the handling of the airline’s 25 millionth passenger from the UK facility. The milestone passenger was greeted by easyJet’s Commercial Manager Ali Gayward as he checked-in for a flight to Toulouse on April 13. “We’re proud of flying 25 million passengers out of Bristol Airport since our arrival in May 2001,” she said. “This highlights the benefits of easyJet’s large network from Bristol to key business destinations such as Toulouse and the conveniences for local businesses in the region. easyJet offers flights to 43 destinations from the southwest airport with eleven based aircraft during the height of the summer. It has recently increased its route network to include Bodrum, Dalaman, Cyprus and Rome to meet customer demand and increased capacity on key business routes including Edinburgh, Amsterdam and Geneva and it is currently evaluating additional destinations.

AMR CORP MAY SPLIT AMERICAN AIRLINES AND AMERICAN EAGLE

AMR Corp, the parent company of American Airlines and American Eagle Airlines is contemplating splitting the two carriers under unique ownership. Gerard Arpey, Chairman and Chief Executive Officer, AMR Corp, revealed at the Society of American Business Editors and Writers conference at Dallas’ Southern Methodist University that such a move would be good for both airlines. “The Readers’ Digest version about why we might want to have a separate ownership is we want [American Eagle] and their employees to be able to have as much success in the market as they possibly can have,” he said, adding that if the carrier was independent it would be able to bid on business with other airlines, arther than flying exclusively for American Airlines. “It would be good for American in terms of competitive feed, and it would be good for them in terms of being able to be competitive and generate other business,” he added.

FAA ANNOUNCES SAFETY RATING FOR BARBADOS

The US Department of Transportation’s Federal Aviation Administration (FAA) has announced that Barbados does not comply with international safety standards set by the International Civil Aviation Organization (ICAO), based on a recent assessment of Barbados’ civil aviation authority. As a result, the FAA has assigned Barbados an International Aviation Safety Assessment (IASA) Category 2 rating. With a Category 2 rating, Barbados’ air carriers, which do not currently serve the United States, cannot establish new US service. A Category 2 rating means a country either lacks laws or regulations necessary to oversee air carriers in accordance with minimum international standards, or that its civil aviation authority is deficient in one or more areas, such as technical expertise, trained personnel, record keeping or inspection procedures.

EUROPEAN COMMISSION DISCUSES AIR PASSENGER RIGHTS

The European Commission Vice President Siim Kallas this week announced a series of measures to clarify and strengthen the enforcement of passenger rights legislation, so consumers can more effectively access their rights and industry has more certainty and a level playing field across the EU. Vice-President Kallas also announced his intention to open a dialogue with stakeholders with a view to revising the EU's air passenger rights Regulation 261 – with a proposal from the Commission in 2012. The review would look to clarify, in particular, key issues such as limits for liability in case of extraordinary circumstances, compensation thresholds, effective re-routing of passengers, shared risk between operators in the supply chain and other issues where there are weaknesses, including protection in the case of mishandled luggage or re-scheduled flights. European Commission Vice-President Siim Kallas, responsible for transport, said "Overall EU passenger rights legislation has been a huge step forwards, providing a 'safety net' for passengers, vastly reducing certain commercial practices and raising standards throughout the industry. But there is also after the first six years a wealth of experience gained and areas where we can improve,” Siim Kallas said. The announcement came as the Commission published its review of the first six years of the application of the air passenger rights Regulation 261, as well as the EU regulation on passengers with reduced mobility.

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