Britain denied on Sunday any link between trade with Libya and the Lockerbie bomber's release after a report suggested London was swayed by an oil deal into making him eligible for a prison transfer home.
The Sunday Times said the government decided two years ago that it was "in the overwhelming interests of the United Kingdom" to ensure Abdelbaset Ali Mohmet al-Megrahi could at some point be sent back to Libya.
According to letters obtained by the newspaper, Justice Secretary Jack Straw dropped an attempt in 2007 to exclude Megrahi from a prisoner transfer agreement with Libya because of "wider negotiations" with Tripoli.
His decision came after discussions between Libya and BP over a massive oil exploration deal became bogged down, the paper said. The deal was ratified by Libya soon afterwards.
In response to the report, Mr Straw acknowledged that the prisoner transfer agreement was part of efforts to bring Libya back into the international fold after it abandoned its nuclear weapons programme.
"What is totally untrue is that any part of these negotiations with the Libyans was that at some stage Mr Megrahi would be released," the justice secretary told Sky News television.
He said that under the agreement,the Scottish government had a veto over any prisoner transfer - and noted that Edinburgh had in fact rejected such an option for Megrahi in favour of a compassionate release earlier this month.
"The implication that, somehow or other, we have done some backdoor deal in order to release Mr Megrahi is simply nonsense," Mr Straw added to the BBC. Terminally-ill Megrahi was freed from a Scottish prison after serving just eight years for the 1988 bombing of a PanAm jet over the Scottish town of Lockerbie, which killed 270 people.
London insists the decision to release Megrahi was made solely by the semiautonomous Scottish authorities.
Scotland's First Minister Alex Salmond also denied the decision was based on commercial deals. Speculation, however,continues about Britain's stance, particularly as the son of Libyan leader Moammar Gadhafi, Seif al-Islam, has said Megrahi "was always on the negotiating table" in oil and gas deals.
Monday, August 31, 2009
AOT URGED TO KEEP EXPANDING AND IMPROVING SERVICE
Aviation industry and airport experts recommended Airports of Thailand (AOT) keep expanding and improving the quality of its service in order to maintain competitiveness.
Representatives of major airports including Singpore's Changi Airport and Munich International Airport and Munich International Airport, as well as executives of international aviation associations, also offered their strateges for achieving success and suggested key factors in becoming a regional aviation hub.
Foo Sek Min, executive vice president of Singapore's Changi Airport, said four key factors in operating a successful airport were continuous investment in infrastructure, efficiency of operations, a focus on service, and creating new experiencees for passengers and other customers.
He said the success of any airport depends on a combination of efficiency, punctuality, safety and problem-solving.
"Changi Airport is one of the most successful airports in the region because we keep expanding," he said.
Aprt from adding a new terminal, Changi Airport is also focused on new opportunities to manage airport out-side the country. It already manages Hue Airport in central Vietnam. "We are listening to our customers and responding to their feedback," he said.
The airport's new terminal includes non-aviation-related facilities such as hotels and a centre selling perishables, and features solar panels on its roof as part of the airport's evironmentally friendly policy.
Munich Airport is also creating new activities for travellers. Among the new attractions are flower gardens, celebrity-meeting events, game shows, dance performance and movies.
Peter Trautmann, Munich InternationalAirport's representative for international projects, said the airport would not be a success without cooperation from all related parties.
Trautmann said the airport, airlines and passengers all strive to achieve the minimum connecting-flight time, which he said is approximately 30 minutes. Moreover, connections and related activities are all done under roof, with additional conveniencess such as food and beverages, retail shops and relaxation facilities also present.
Mokhtar A Awan, regional director of the International Civil Aviation Organistion, said Bangkok's Suvarnabhumi Airport is one of the busiest in the world.
He said the airline and cargo industries and expected to grow further in this region, so all airports must improve facilities and services.
"Airports should focus not only one cost reduction, but also must assure travellers of security and protect them from unexpected incidents," Awan said. According to Wong Hong, the International Air Transport Association's (LATA) regional durector for industry distribution and financial affairs, the aviation industry is set to recover.
LATA forecasts the aviation industry will grow 3.3 per cent in 2010.
The LATA director said the global economic crisis was an opportunity for airlines and airports to restructure their operations and business strategies to enhance efficiency and competitivenes.
Shun Leung Wong, marketing manager for Airport Council International, said being a successful aviation hub depended on many factors, including location, a strong enconomy, airline volume, quality of customer services, strength of the home base, security and competitive pricing.
Serirat Prasutanond, president of AOT, said the company recently set up a markeing team that will travel overseas to seek new business.
Representatives of major airports including Singpore's Changi Airport and Munich International Airport and Munich International Airport, as well as executives of international aviation associations, also offered their strateges for achieving success and suggested key factors in becoming a regional aviation hub.
Foo Sek Min, executive vice president of Singapore's Changi Airport, said four key factors in operating a successful airport were continuous investment in infrastructure, efficiency of operations, a focus on service, and creating new experiencees for passengers and other customers.
He said the success of any airport depends on a combination of efficiency, punctuality, safety and problem-solving.
"Changi Airport is one of the most successful airports in the region because we keep expanding," he said.
Aprt from adding a new terminal, Changi Airport is also focused on new opportunities to manage airport out-side the country. It already manages Hue Airport in central Vietnam. "We are listening to our customers and responding to their feedback," he said.
The airport's new terminal includes non-aviation-related facilities such as hotels and a centre selling perishables, and features solar panels on its roof as part of the airport's evironmentally friendly policy.
Munich Airport is also creating new activities for travellers. Among the new attractions are flower gardens, celebrity-meeting events, game shows, dance performance and movies.
Peter Trautmann, Munich InternationalAirport's representative for international projects, said the airport would not be a success without cooperation from all related parties.
Trautmann said the airport, airlines and passengers all strive to achieve the minimum connecting-flight time, which he said is approximately 30 minutes. Moreover, connections and related activities are all done under roof, with additional conveniencess such as food and beverages, retail shops and relaxation facilities also present.
Mokhtar A Awan, regional director of the International Civil Aviation Organistion, said Bangkok's Suvarnabhumi Airport is one of the busiest in the world.
He said the airline and cargo industries and expected to grow further in this region, so all airports must improve facilities and services.
"Airports should focus not only one cost reduction, but also must assure travellers of security and protect them from unexpected incidents," Awan said. According to Wong Hong, the International Air Transport Association's (LATA) regional durector for industry distribution and financial affairs, the aviation industry is set to recover.
LATA forecasts the aviation industry will grow 3.3 per cent in 2010.
The LATA director said the global economic crisis was an opportunity for airlines and airports to restructure their operations and business strategies to enhance efficiency and competitivenes.
Shun Leung Wong, marketing manager for Airport Council International, said being a successful aviation hub depended on many factors, including location, a strong enconomy, airline volume, quality of customer services, strength of the home base, security and competitive pricing.
Serirat Prasutanond, president of AOT, said the company recently set up a markeing team that will travel overseas to seek new business.
Friday, August 28, 2009
AIRLINE MULLS RAISING CAPITAL LATER THIS YEAR
Thai Airways International is mulling a plan to raise capital, as part of the airline's plan to strengthen its financial condition without depending solely on sales revenue.
After THAI's board of directors meeting yesterday, executive chairman Wallop Bhukkanasut said the airline needed to have a stronger capital base.
"Late this year, it will be finalised whether THAI will raise capital and how much," he said.
THAI is now capitalised at Bt17 billion.
According to Wallop, the national carrier will try its best to achieve the Ebitda (earnings before interest, tax, depreciation and amortisation) at Bt25-Bt30 billion. He noted that the target is achievable, noting the August cabin factor of 76 per cent, which was higher than expected. Meanwhile, THAI looks to see a stable cabin factor during September through December, a large part of the country's high season.
The board approved in principle the restructuring of the corporate strategy and planning department, which will oversee the planning, operations and IT units. The department is crucial in plotting business strategies, overseeing the fleet and maximising returns from assets.
THAI has yet to appoint the executive vice president for the department.
The airline's labour union has voiced opposition to the restructuring. Wallop noted that THAI would need to clear the issue with the union, insisting that the new structure was vital for the company's future growth. He added that the department was crucial as it will put all the planning, operations and IT activities, which are now spread under different departments, in one roof. This will lead to higher efficiency, he said.
The board also appointed Pruet Boobphakam as executive vice president for the commercial department. It also appointed Chuda Dhanabhumi, special activities adviser, as vice president for the human resources planning and development department. The appointments take effect immediately.
According to Wallop, Pruet is the most experienced in commercial affairs. He has been stationed in a number of countries, including Germany, Sweden, Australia, Malaysia and China.
"His main task is to increase revenue. He will need to make the decision whether the number of Bangkok-Oslo flights will be increased from five per week to six, as all flights are fully booked. Meanwhile, he will also consider whether to resume Bangkok-Johannesburg flights in preparation for World Cup 2010," Wallop said.
Pruet was appointed managing director of the cargo and commercial mail department in December 2008. He will remain acting managing director of the department.
After THAI's board of directors meeting yesterday, executive chairman Wallop Bhukkanasut said the airline needed to have a stronger capital base.
"Late this year, it will be finalised whether THAI will raise capital and how much," he said.
THAI is now capitalised at Bt17 billion.
According to Wallop, the national carrier will try its best to achieve the Ebitda (earnings before interest, tax, depreciation and amortisation) at Bt25-Bt30 billion. He noted that the target is achievable, noting the August cabin factor of 76 per cent, which was higher than expected. Meanwhile, THAI looks to see a stable cabin factor during September through December, a large part of the country's high season.
The board approved in principle the restructuring of the corporate strategy and planning department, which will oversee the planning, operations and IT units. The department is crucial in plotting business strategies, overseeing the fleet and maximising returns from assets.
THAI has yet to appoint the executive vice president for the department.
The airline's labour union has voiced opposition to the restructuring. Wallop noted that THAI would need to clear the issue with the union, insisting that the new structure was vital for the company's future growth. He added that the department was crucial as it will put all the planning, operations and IT activities, which are now spread under different departments, in one roof. This will lead to higher efficiency, he said.
The board also appointed Pruet Boobphakam as executive vice president for the commercial department. It also appointed Chuda Dhanabhumi, special activities adviser, as vice president for the human resources planning and development department. The appointments take effect immediately.
According to Wallop, Pruet is the most experienced in commercial affairs. He has been stationed in a number of countries, including Germany, Sweden, Australia, Malaysia and China.
"His main task is to increase revenue. He will need to make the decision whether the number of Bangkok-Oslo flights will be increased from five per week to six, as all flights are fully booked. Meanwhile, he will also consider whether to resume Bangkok-Johannesburg flights in preparation for World Cup 2010," Wallop said.
Pruet was appointed managing director of the cargo and commercial mail department in December 2008. He will remain acting managing director of the department.
Don Mueang finds new roles
The conceptual plan to develop new roles for Bangkok's old Don Mueang airport is now set to be implemented with the emergence of potential project sponsors.
EADS, the European aerospace and defence company, is among several international concerns that have already proposed to invest and operate aviationrelated facilities.
These facilities are among six new functions that Airports of Thailand Plc (AoT) recently defined for the 95-yearold airfield, which has been little used since the opening of Suvarnabhumi Airport in September 2006.
The six planned facilities are: a maintenance centre for medium and small aircraft; a maintenance centre for landing gear for narrow-bodied aircraft; an aircraft parts stock management centre; a flight simulator facility; an international free-trade zone; and a private jet/air taxi terminal.
EADS, also the parent firm of the planemaker Airbus, wants to maintain landing gear for narrow-bodied jetliners such as the Airbus A320 at Don Mueang,said AoT president Serirat Prasutanond.
AoT has also received a couple of proposals to establish aircraft part inventories and expects to name the successful bidder to operate the private jet terminal by the end of next month, he said.
The private jet terminal looks set to be the first of the proposed facilities to be implemented, giving a new lease of life for the airport, which currently serves a few domestic flights by budget carriers Nok Air and One-Two-Go.
EADS is seeking privileges from the Board of Investment for the maintenance facility, expected to cost 1 billion baht.
Europe Aviation is also reported to be competing to set up an aircraft maintenance centre at Don Mueang.
Both EADS and Europe Aviation are also requesting that the BoI to waive the 49% limit on foreign ownership of an aircraft maintenance operations in Thailand.
Mr Serirat clarified that AoT would not invest in these proposed facilities but would offer the space at Don Mueang in return for concession fees.
Meanwhile, the AoT president yesterday reiterated at an international airport conference that the majority stateowned company was determined to push Suvarnabhumi Airport into the ranks of the top 10 best airports in the world according to the Geneva-based Airports Council International's ratings this year.
Suvarnabhumi moved from 40th position in 2007 to 28th in 2008 and to 19th place in the first quarter of this year.
EADS, the European aerospace and defence company, is among several international concerns that have already proposed to invest and operate aviationrelated facilities.
These facilities are among six new functions that Airports of Thailand Plc (AoT) recently defined for the 95-yearold airfield, which has been little used since the opening of Suvarnabhumi Airport in September 2006.
The six planned facilities are: a maintenance centre for medium and small aircraft; a maintenance centre for landing gear for narrow-bodied aircraft; an aircraft parts stock management centre; a flight simulator facility; an international free-trade zone; and a private jet/air taxi terminal.
EADS, also the parent firm of the planemaker Airbus, wants to maintain landing gear for narrow-bodied jetliners such as the Airbus A320 at Don Mueang,said AoT president Serirat Prasutanond.
AoT has also received a couple of proposals to establish aircraft part inventories and expects to name the successful bidder to operate the private jet terminal by the end of next month, he said.
The private jet terminal looks set to be the first of the proposed facilities to be implemented, giving a new lease of life for the airport, which currently serves a few domestic flights by budget carriers Nok Air and One-Two-Go.
EADS is seeking privileges from the Board of Investment for the maintenance facility, expected to cost 1 billion baht.
Europe Aviation is also reported to be competing to set up an aircraft maintenance centre at Don Mueang.
Both EADS and Europe Aviation are also requesting that the BoI to waive the 49% limit on foreign ownership of an aircraft maintenance operations in Thailand.
Mr Serirat clarified that AoT would not invest in these proposed facilities but would offer the space at Don Mueang in return for concession fees.
Meanwhile, the AoT president yesterday reiterated at an international airport conference that the majority stateowned company was determined to push Suvarnabhumi Airport into the ranks of the top 10 best airports in the world according to the Geneva-based Airports Council International's ratings this year.
Suvarnabhumi moved from 40th position in 2007 to 28th in 2008 and to 19th place in the first quarter of this year.
Thursday, August 27, 2009
PAL to cut staff after loss
National carrier Philippine Airlines said yesterday it would cut its workforce by offering early retirement as a cost-cutting measure after suffering more than $301 million in losses.
"We want to make PAL lean and mean so it will be agile and flexible enough to adapt to the new economic climate,"company president Jaime J. Bautista said in a statement.
The statement said the company would take "decisive steps" to restructure after last month reporting losses of $301.4 million for its fiscal year ended March 2009. It had net profit of $30.6 million in the previous year.
The airline did not specify how many of its 8,000-plus employees would be offered early retirement.
The company's revenue increased to $1.634 billion in the last fiscal year from $1.504 billion in the previous year due to a 17% increase in passengers, but it was overwhelmed by increased maintenance costs and record-high fuel prices that raised expenses to $1.9 billion. Fuel accounts for 44% of the airline's operating costs.
Bautista said the cost cuts would not undermine airline safety and compliance with industry standards.
He also said that the airline would continue to meet increasing passenger demand especially for the domestic market and is eyeing new charter or regular destinations.
The airline will soon acquire new Boeing 777-300ER jets.
"We want to make PAL lean and mean so it will be agile and flexible enough to adapt to the new economic climate,"company president Jaime J. Bautista said in a statement.
The statement said the company would take "decisive steps" to restructure after last month reporting losses of $301.4 million for its fiscal year ended March 2009. It had net profit of $30.6 million in the previous year.
The airline did not specify how many of its 8,000-plus employees would be offered early retirement.
The company's revenue increased to $1.634 billion in the last fiscal year from $1.504 billion in the previous year due to a 17% increase in passengers, but it was overwhelmed by increased maintenance costs and record-high fuel prices that raised expenses to $1.9 billion. Fuel accounts for 44% of the airline's operating costs.
Bautista said the cost cuts would not undermine airline safety and compliance with industry standards.
He also said that the airline would continue to meet increasing passenger demand especially for the domestic market and is eyeing new charter or regular destinations.
The airline will soon acquire new Boeing 777-300ER jets.
Fragile air traffic recovery is under way, says IATA
A recovery in air traffic is under way, according to latest data from a global industry body, in another sign the world economy is clawing its way out of recession.
"But the recovery will be volatile and weak," the International Air Transport Association said yesterday, indicating the turbulence that has buffeted an industry facing another year of multi-billion dollar losses is not at an end.
Airlines carried 11.3% less cargo and 2.9% fewer people in July than a year earlier, IATA said in its latest monthly reading of cross-border traffic, a leading indicator for the health of world trade.
The figures represented an improvement from June, when the year-on-year declines were 16.5% for cargo and 7.2%for passengers.
Air freight is a good leading indicator of world trade movements, since shippers tend to switch to air when speed is more important than cost - at the start of an upturn - and switch to ocean transport in a recession, IATA says.
"As a result, air freight is first into recession but usually is first out," it said in a recent analysis.
So far this year, freight volumes have fallen 19.3% and air travel is down 6.8%,according to IATA, whose data exclude domestic flights.
And compared with June and adjusted for seasonal factors, both freight and passenger travel grew by more than 3%in July, it said.
"The data can be rather volatile but this does confirm earlier signs that a recovery in demand for air transport has begun, though there are good reasons for expecting the path of further recovery to be volatile and weaker than recoveries from previous recessions," IATA said.
The association said there was a varied regional pattern, with passenger traffic in the Asia-Pacific remaining weak but improving, with a strong rebound in air freight reflecting recovery in several Asian economies.
"Airlines in Europe and North America are seeing less improvement in freight,but a stronger improvement in passenger volumes which could reflect earlier cuts in fares."
Passenger capacity was more in line with demand in July, with passenger load factors averaging 80.3%, but excess capacity continued to emerge in the freight sector, it said.
"Downward pressure on freight rates and revenues continues to increase,"said the Geneva-based body, which represents 230 carriers.
IATA has estimated airlines will lose $9 billion in 2009 after an $8.5 billion loss in 2008, when high oil prices hit profits and then the global credit and financial crisis slashed demand for business and leisure air travel.
"But the recovery will be volatile and weak," the International Air Transport Association said yesterday, indicating the turbulence that has buffeted an industry facing another year of multi-billion dollar losses is not at an end.
Airlines carried 11.3% less cargo and 2.9% fewer people in July than a year earlier, IATA said in its latest monthly reading of cross-border traffic, a leading indicator for the health of world trade.
The figures represented an improvement from June, when the year-on-year declines were 16.5% for cargo and 7.2%for passengers.
Air freight is a good leading indicator of world trade movements, since shippers tend to switch to air when speed is more important than cost - at the start of an upturn - and switch to ocean transport in a recession, IATA says.
"As a result, air freight is first into recession but usually is first out," it said in a recent analysis.
So far this year, freight volumes have fallen 19.3% and air travel is down 6.8%,according to IATA, whose data exclude domestic flights.
And compared with June and adjusted for seasonal factors, both freight and passenger travel grew by more than 3%in July, it said.
"The data can be rather volatile but this does confirm earlier signs that a recovery in demand for air transport has begun, though there are good reasons for expecting the path of further recovery to be volatile and weaker than recoveries from previous recessions," IATA said.
The association said there was a varied regional pattern, with passenger traffic in the Asia-Pacific remaining weak but improving, with a strong rebound in air freight reflecting recovery in several Asian economies.
"Airlines in Europe and North America are seeing less improvement in freight,but a stronger improvement in passenger volumes which could reflect earlier cuts in fares."
Passenger capacity was more in line with demand in July, with passenger load factors averaging 80.3%, but excess capacity continued to emerge in the freight sector, it said.
"Downward pressure on freight rates and revenues continues to increase,"said the Geneva-based body, which represents 230 carriers.
IATA has estimated airlines will lose $9 billion in 2009 after an $8.5 billion loss in 2008, when high oil prices hit profits and then the global credit and financial crisis slashed demand for business and leisure air travel.
ATTA TRIMS PROJECTION ON ARRIVALS
The Association of Thai Travel Agents has revised this year's forecast for international arrivals down to 11.5 million due to a pessimistic tourism outlook.
ATTA president Surapol Sritrakul said the conservative figure was based on surveys conducted among the agency's members.
"We haven't seen any positive factors or advance bookings for the upcoming high season," he said yesterday.
Though the number of tourists from Iran, Japan, Hong Kong, Australia, India and China is on the rise, arrivals from Europe and the United States are still low. Between January and July, ATTA members catered to 900,000 travellers, a 40-per-cent decrease from the same period last year.
Figures produced by the ATTA are lower than those of the Tourism Authority of Thailand and the Tourism Council of Thailand (TCT). The TAT recently revised its forecast from 13.2 million to 14 million arrivals because it believes the tourism industry will recover in the high season. Meanwhile, the TCT recently revised up its forecast from 12 million to 13.1 million, expecting tourists to return as political unrest subsides.
According to Surapol, arrivals are so low that some small operators have been forced to shut down or sell their businesses. "The sector is not expected to recover until the middle of next year, and full recovery will only be seen late next year," he said.
He added that the government should help tour operators through soft loans. So far only 30 small operators have received financial assistance, even though 300 applied for it. The ATTA and other key tourism associations are planning to ask the Finance and Tourism and Sports ministries for help.
Surapol said the ATTA would hire two specialists to come up with new tourism schemes as well as marketing and sales strategies.
Pradech Payakvichain, a TAT consultant, said tourism operators needed new strategies to compete with other countries, especially once the Asean Economic Community comes into effect.
Thailand is not the only country suffering from a slump in tourist arrivals. According to the International Air Transport Association, passengers in July had declined 2.9 per cent compared to the same month last year, while freight demand was down 11.3 per cent. The international passenger-load factor stood at 80.3 per cent.
The drop in July passenger demand was a relative improvement compared to the 7.2-per-cent drop in June and the 6.8-per-cent decline recorded over the first seven months of the year. The July capacity was more in line with reduced demand than in previous months and load factors were similar to those recorded in July 2008.
These developments, however, have come at the expense of yields that continue to fall sharply.
ATTA president Surapol Sritrakul said the conservative figure was based on surveys conducted among the agency's members.
"We haven't seen any positive factors or advance bookings for the upcoming high season," he said yesterday.
Though the number of tourists from Iran, Japan, Hong Kong, Australia, India and China is on the rise, arrivals from Europe and the United States are still low. Between January and July, ATTA members catered to 900,000 travellers, a 40-per-cent decrease from the same period last year.
Figures produced by the ATTA are lower than those of the Tourism Authority of Thailand and the Tourism Council of Thailand (TCT). The TAT recently revised its forecast from 13.2 million to 14 million arrivals because it believes the tourism industry will recover in the high season. Meanwhile, the TCT recently revised up its forecast from 12 million to 13.1 million, expecting tourists to return as political unrest subsides.
According to Surapol, arrivals are so low that some small operators have been forced to shut down or sell their businesses. "The sector is not expected to recover until the middle of next year, and full recovery will only be seen late next year," he said.
He added that the government should help tour operators through soft loans. So far only 30 small operators have received financial assistance, even though 300 applied for it. The ATTA and other key tourism associations are planning to ask the Finance and Tourism and Sports ministries for help.
Surapol said the ATTA would hire two specialists to come up with new tourism schemes as well as marketing and sales strategies.
Pradech Payakvichain, a TAT consultant, said tourism operators needed new strategies to compete with other countries, especially once the Asean Economic Community comes into effect.
Thailand is not the only country suffering from a slump in tourist arrivals. According to the International Air Transport Association, passengers in July had declined 2.9 per cent compared to the same month last year, while freight demand was down 11.3 per cent. The international passenger-load factor stood at 80.3 per cent.
The drop in July passenger demand was a relative improvement compared to the 7.2-per-cent drop in June and the 6.8-per-cent decline recorded over the first seven months of the year. The July capacity was more in line with reduced demand than in previous months and load factors were similar to those recorded in July 2008.
These developments, however, have come at the expense of yields that continue to fall sharply.
Politicians seek to relax airport security
Thai politicians are pressuring Suvarnabhumi Airport's security staff to drop some pre-boarding screening procedures, even though this would breach global aviation security standards.
The move to lift the requirement for passengers to put their jackets and belts through X-ray machines before they walk through metal detectors is being spearheaded by Pichet Panwichartkul, a Democrat MP.
Mr Pichet has called the procedures an inconvenience for passengers and he is attempting to use his position as an adviser to the House standing committee on banking and finance to ease airport security, which has left security and airline managers dumbfounded.
Industry sources said the committee recently summoned airport security chiefs to issue an ultimatum for the procedure to be waived from last Wednesday. The committee threatened to take further steps to enforce its demand if this order was ignored.
In a broadside at Suvarnabhumi management published in the Aug 19 edition of Naew Na newspaper, Mr Pichet questioned Suvarnabhumi security's inability to distinguish between suspicious belts and normal ones.
The former finance minister asked why passengers have to take off their belts at the checkpoint and then clumsily put them back on in public.
"How is it possible that a female foreign passenger must remove her jacket to reveal her light clothing underneath to go through the screening?" he asked.
The management of Suvarnabhumi and its airport security have "acknowledged" Mr Pichet's wish but so far have continued with the pre-boarding screening procedures.
Aviation operators have pointed out that the screening procedures Mr Pichet wants to axe are enforced by most airports around the world and are in direct compliance with those enforced by the United States Transport Security Administration (TSA) as a counter-terrorism precaution.
"Mr Pichet's wish to ease the screening procedure, if heeded, is very dangerous in exposing Suvarnabhumi and all airlines which operate through it to security risks," said one airline executive.
He described Mr Pichet's request as reflecting a lack of understanding of the objectives of aviation security, which are to protect aircraft, passengers and crew, as well as to support national security and prevent terrorism.
Putting jackets and belts into X-ray machines enables airport security personnel to detect weapons or contraband goods like narcotics.
"There have been four or five recent cases when Suvarnabhumi security discovered belts with small knives inserted inside. That could not be detected by the naked eye," said an airport source.
Relaxing screening procedures simply to reduce inconvenience for passengers would result in Suvarnabhumi being downgraded in its global security rating, said sources in the aviation industry. "Air travellers will not feel safe passing through Suvarnabhumi and airlines, especially US carriers, will have to review security risks when operating through this airport," said an aviation executive.
If these procedures were waived, most airlines would have to conduct their own screening at the gates, increasing inconvenience and cost and wasting passengers' time.
The move to lift the requirement for passengers to put their jackets and belts through X-ray machines before they walk through metal detectors is being spearheaded by Pichet Panwichartkul, a Democrat MP.
Mr Pichet has called the procedures an inconvenience for passengers and he is attempting to use his position as an adviser to the House standing committee on banking and finance to ease airport security, which has left security and airline managers dumbfounded.
Industry sources said the committee recently summoned airport security chiefs to issue an ultimatum for the procedure to be waived from last Wednesday. The committee threatened to take further steps to enforce its demand if this order was ignored.
In a broadside at Suvarnabhumi management published in the Aug 19 edition of Naew Na newspaper, Mr Pichet questioned Suvarnabhumi security's inability to distinguish between suspicious belts and normal ones.
The former finance minister asked why passengers have to take off their belts at the checkpoint and then clumsily put them back on in public.
"How is it possible that a female foreign passenger must remove her jacket to reveal her light clothing underneath to go through the screening?" he asked.
The management of Suvarnabhumi and its airport security have "acknowledged" Mr Pichet's wish but so far have continued with the pre-boarding screening procedures.
Aviation operators have pointed out that the screening procedures Mr Pichet wants to axe are enforced by most airports around the world and are in direct compliance with those enforced by the United States Transport Security Administration (TSA) as a counter-terrorism precaution.
"Mr Pichet's wish to ease the screening procedure, if heeded, is very dangerous in exposing Suvarnabhumi and all airlines which operate through it to security risks," said one airline executive.
He described Mr Pichet's request as reflecting a lack of understanding of the objectives of aviation security, which are to protect aircraft, passengers and crew, as well as to support national security and prevent terrorism.
Putting jackets and belts into X-ray machines enables airport security personnel to detect weapons or contraband goods like narcotics.
"There have been four or five recent cases when Suvarnabhumi security discovered belts with small knives inserted inside. That could not be detected by the naked eye," said an airport source.
Relaxing screening procedures simply to reduce inconvenience for passengers would result in Suvarnabhumi being downgraded in its global security rating, said sources in the aviation industry. "Air travellers will not feel safe passing through Suvarnabhumi and airlines, especially US carriers, will have to review security risks when operating through this airport," said an aviation executive.
If these procedures were waived, most airlines would have to conduct their own screening at the gates, increasing inconvenience and cost and wasting passengers' time.
Wednesday, August 26, 2009
For Gadhafi, release of Lockerbie prisoner part of complex agenda
The very concept of anti-imperialism is still at the heart of Gadhafi's discourse. His ideological prism has not changed.
Once the mad dog of the Middle East,as Ronald Reagan called him, Colonel Moammar Gadhafi, the Libyan leader,has focused on shedding his outlaw status:he heads the African Union, attended a Group of Eight economic conference in Rome and is courted by Western powers hungry for Libyan oil.
But if the world thought the colonel had changed his views after 40 years in power,he proved otherwise with the hero's welcome he gave Abdel Basset Ali al-Megrahi, the only person convicted in the Lockerbie bombing of 1988.
"He likes to rub it in to the West that he was vindicated, that he's becoming an internationally recognised figure again," said Dirk J Vandewalle, associate professor of government at Dartmouth College.
It was signature Gadhafi, extracting a concession from Western powers, offering thanks, then appearing to mock them for caving in. On his visit to Paris in 2007, he lectured the French on human rights. In Rome this year, he pinned a photograph to his chest of the 1931 arrest by Italian troops of the Libyan guerrilla leader Omar alMokhtar, whom the Italians later hanged.
But this time, Col Gadhafi appears to have overreached (even if Mr Megrahi's homecoming, indeed his entire case, may not be as straightforward as many perceive).
Instead of enhancing Col Gadhafi's standing, as he had hoped, Mr Megrahi's release has highlighted inherent conflicts in his reengagement with the outside world, experts said. Col Gadhafi's revolutionary ideology still clashes with Western expectations. He has failed to use his nation's opening to make political and economic improvements at home. There may even be a degree of naivete on the part of Col Gadhafi, who has expressed shock at the full-throated response from Washington and London.
George Joffe, a lecturer at the Centre of International Studies at Cambridge Uni-
versity, said the Libyans had "felt they succeeded" at complying with requests to keep the celebrations low-key. After all, Col Gadhafi did not himself greet Mr Megrahi at the airport.
In that way, this case forces the West and Libya to face up to differences in perceptions that have hung over the courtship since reconciliation began.
The West sees the current situation as clear-cut: Libya honouring a convicted terrorist who helped to blow up a jetliner over Lockerbie, Scotland. But Libya experts said that it was far more nuanced, explaining in part why Libya acted as it did, and why it was so surprised by the reaction. There are several reasons, the experts said, chief among them that the government never accepted Mr Megrahi's guilt.
"When Megrahi was found guilty there was an immediate sense in Libya that a great miscarriage of justice had taken place,"Mr Joffe said."And even on the day of the sentence, Gadhafi said that he would do everything to reverse it. Right from the beginning they did not accept the sentence."
Still, this does not completely explain Col Gadhafi's behaviour.
"Libya is highly authoritarian, but he still has a domestic audience he needs to appeal to," said Dana Moss, a visiting fellow at the Washington Institute for Near East Policy."In the aftermath of giving up nukes and reengaging the US he wants to show he is no puppet of the West and that he made his decisions independently."
In the days since Scottish officials released Mr Megrahi, Col Gadhafi's son Saif al Islam Gadhafi seemed to go out of his way to incite vitriol aimed at the very people he was thanking - officials in Scotland. Most damaging was his suggestion that British officials had agreed to release Mr Megrahi as part of a quid pro quo business deal. Saif al Islam Gadhafi, who accompanied Mr Megrahi home from Scotland, is thought to be engaged in a succession contest with his brother Moatessem-Billah Gadhafi. Saif al Islam Gadhafi was widely seen as using the Megrahi case to try to burnish his credentials,especially among the old guard who do not trust him.
But Libyan officials say his comments were misconstrued, that Libya was simply using any leverage it had, including during trade talks, to free Mr Megrahi.
Perhaps the central element, however,which cannot be overlooked, is Moammar Gadhafi's personal ambition.
He gained the international status he craved when he became head of the African Union and he has used his position to promote his top goal - creation of a United States of Africa with one army, one passport,one currency and one leader. He hoped that bringing Mr Megrahi home would elevate his status among African leaders.
From the beginning, it was almost inevitable that this case would end in hostility and recriminations. For those whose relatives died in the 1988 bombing, forcing Libya to pay millions to each family and putting Mr Megrahi in prison for life amounted to a shred of justice. But to Libya, that money was a business deal, a small price for a ticket to re-engage with the West and attract foreign investment. Libya did not admit guilt. It assumed responsibility for "the actions of its officials". The resolution cost Libya about $2.7 billion. The next year Libya's foreign investment reached $8 billion.
In the gap of perception over Mr Megrahi's homecoming, where the West expressed outrage, Col Gadhafi saw hypocrisy, experts said. When in 2007 Libya released five Bulgarian nurses and a Palestinian doctor sentenced to death on charges they had infected children with the virus that causes Aids, they were greeted by the Bulgarian president and prime minister, the French president's wife and the foreign affairs commissioner of the European Union.
Col Gadhafi agreed to send the nurses to Bulgaria to serve out prison terms, but they were immediately pardoned by the Bulgarian president.
"Why didn't we hear these objections,on the exoneration of this condemned team?"Col Gadhafi asked last week."Are we donkeys,but they are humans?"
His parallel was dismissed in the West,where health officials argued that his charges were fabricated. But Libyans believed Mr Megrahi was a political prisoner, and some experts assert that those sentiments are not without some justification.
"I remember talking to one of the judges from the panel that convicted him," said Mr Vandewalle of Dartmouth."He said there was enormous pressure put on the court to get a conviction."
Next Tuesday Libya will celebrate the 40th anniversary of the coup that brought Col Gadhafi to power. Mr Megrahi may again be on display.
"The very concept of anti-imperialism is still at the heart of Gadhafi's discourse," Mr Moss said."His ideological prism has not changed. He has to show, or wants to show,that he is not backing down."
Once the mad dog of the Middle East,as Ronald Reagan called him, Colonel Moammar Gadhafi, the Libyan leader,has focused on shedding his outlaw status:he heads the African Union, attended a Group of Eight economic conference in Rome and is courted by Western powers hungry for Libyan oil.
But if the world thought the colonel had changed his views after 40 years in power,he proved otherwise with the hero's welcome he gave Abdel Basset Ali al-Megrahi, the only person convicted in the Lockerbie bombing of 1988.
"He likes to rub it in to the West that he was vindicated, that he's becoming an internationally recognised figure again," said Dirk J Vandewalle, associate professor of government at Dartmouth College.
It was signature Gadhafi, extracting a concession from Western powers, offering thanks, then appearing to mock them for caving in. On his visit to Paris in 2007, he lectured the French on human rights. In Rome this year, he pinned a photograph to his chest of the 1931 arrest by Italian troops of the Libyan guerrilla leader Omar alMokhtar, whom the Italians later hanged.
But this time, Col Gadhafi appears to have overreached (even if Mr Megrahi's homecoming, indeed his entire case, may not be as straightforward as many perceive).
Instead of enhancing Col Gadhafi's standing, as he had hoped, Mr Megrahi's release has highlighted inherent conflicts in his reengagement with the outside world, experts said. Col Gadhafi's revolutionary ideology still clashes with Western expectations. He has failed to use his nation's opening to make political and economic improvements at home. There may even be a degree of naivete on the part of Col Gadhafi, who has expressed shock at the full-throated response from Washington and London.
George Joffe, a lecturer at the Centre of International Studies at Cambridge Uni-
versity, said the Libyans had "felt they succeeded" at complying with requests to keep the celebrations low-key. After all, Col Gadhafi did not himself greet Mr Megrahi at the airport.
In that way, this case forces the West and Libya to face up to differences in perceptions that have hung over the courtship since reconciliation began.
The West sees the current situation as clear-cut: Libya honouring a convicted terrorist who helped to blow up a jetliner over Lockerbie, Scotland. But Libya experts said that it was far more nuanced, explaining in part why Libya acted as it did, and why it was so surprised by the reaction. There are several reasons, the experts said, chief among them that the government never accepted Mr Megrahi's guilt.
"When Megrahi was found guilty there was an immediate sense in Libya that a great miscarriage of justice had taken place,"Mr Joffe said."And even on the day of the sentence, Gadhafi said that he would do everything to reverse it. Right from the beginning they did not accept the sentence."
Still, this does not completely explain Col Gadhafi's behaviour.
"Libya is highly authoritarian, but he still has a domestic audience he needs to appeal to," said Dana Moss, a visiting fellow at the Washington Institute for Near East Policy."In the aftermath of giving up nukes and reengaging the US he wants to show he is no puppet of the West and that he made his decisions independently."
In the days since Scottish officials released Mr Megrahi, Col Gadhafi's son Saif al Islam Gadhafi seemed to go out of his way to incite vitriol aimed at the very people he was thanking - officials in Scotland. Most damaging was his suggestion that British officials had agreed to release Mr Megrahi as part of a quid pro quo business deal. Saif al Islam Gadhafi, who accompanied Mr Megrahi home from Scotland, is thought to be engaged in a succession contest with his brother Moatessem-Billah Gadhafi. Saif al Islam Gadhafi was widely seen as using the Megrahi case to try to burnish his credentials,especially among the old guard who do not trust him.
But Libyan officials say his comments were misconstrued, that Libya was simply using any leverage it had, including during trade talks, to free Mr Megrahi.
Perhaps the central element, however,which cannot be overlooked, is Moammar Gadhafi's personal ambition.
He gained the international status he craved when he became head of the African Union and he has used his position to promote his top goal - creation of a United States of Africa with one army, one passport,one currency and one leader. He hoped that bringing Mr Megrahi home would elevate his status among African leaders.
From the beginning, it was almost inevitable that this case would end in hostility and recriminations. For those whose relatives died in the 1988 bombing, forcing Libya to pay millions to each family and putting Mr Megrahi in prison for life amounted to a shred of justice. But to Libya, that money was a business deal, a small price for a ticket to re-engage with the West and attract foreign investment. Libya did not admit guilt. It assumed responsibility for "the actions of its officials". The resolution cost Libya about $2.7 billion. The next year Libya's foreign investment reached $8 billion.
In the gap of perception over Mr Megrahi's homecoming, where the West expressed outrage, Col Gadhafi saw hypocrisy, experts said. When in 2007 Libya released five Bulgarian nurses and a Palestinian doctor sentenced to death on charges they had infected children with the virus that causes Aids, they were greeted by the Bulgarian president and prime minister, the French president's wife and the foreign affairs commissioner of the European Union.
Col Gadhafi agreed to send the nurses to Bulgaria to serve out prison terms, but they were immediately pardoned by the Bulgarian president.
"Why didn't we hear these objections,on the exoneration of this condemned team?"Col Gadhafi asked last week."Are we donkeys,but they are humans?"
His parallel was dismissed in the West,where health officials argued that his charges were fabricated. But Libyans believed Mr Megrahi was a political prisoner, and some experts assert that those sentiments are not without some justification.
"I remember talking to one of the judges from the panel that convicted him," said Mr Vandewalle of Dartmouth."He said there was enormous pressure put on the court to get a conviction."
Next Tuesday Libya will celebrate the 40th anniversary of the coup that brought Col Gadhafi to power. Mr Megrahi may again be on display.
"The very concept of anti-imperialism is still at the heart of Gadhafi's discourse," Mr Moss said."His ideological prism has not changed. He has to show, or wants to show,that he is not backing down."
AOT board to mull disposal of stakes in five companies
Airports of Thailand's board is expected to decide tomorrow whether the company should dispose of stakes in five companies in order to avoid conflicts of interest, an AOT source said yesterday.
The five companies are Thai Airport Ground Services, in which AOT has a 28.5-per-cent stake; King Power Duty Free, in which it holds 5 per cent; Airport Duty Free (10 per cent); Airport Associate (10 per cent); and Fuel Pipeline Transportation (1.38 per cent).
"The share-disposal suggestion is the result of a study by a working committee chaired by AOT director Prasong Poontaneat. The study suggested AOT should dispose of shares in five of its 11 subsidiaries and affiliated companies, due to possible conflicts of interest," the source |said.
The source said the committee had concluded AOT could maintain stakes in the remaining six companies, as there were no signs of conflict of interest.
The six companies are Suvarnabhumi Airport Hotel (60-per-cent holding), Thai Aviation Refuelling (10 per cent), Bangkok Aviation Fuel Services (4.94 per cent), Phuket Kitchen (10 per cent), Don Mueang International Airport Hotel (9 per cent) and Trade Siam (1.5 per cent).
AOT operates Suvarnabhumi and four other international airports in Thailand.
Meanwhile, the board will also consider the management's proposal to operate a ticket-screening service. AOT had planned to outsource the service but now considers that operating the service itself will save on maintenance costs.
The source said the board would also consider a new marketing campaign that would see AOT provide more benefits to certain airlines. Under such a campaign, airlines with a high number of passengers passing through its airports would enjoy special landing and parking fees.
AOT had planned to provide special fees across the board but now considers this would make too much of a dent in its revenue.
AOT posted a net profit of Bt1.47 billion for the quarter from April to June, against Bt7.3 billion in the same period last year.
The full-year net profit is also expected to drop, due to a |sharp decrease in the number of travellers.
It estimates the number of international arrivals this year will drop from last year's 14.6 million to between 12 million and 13 million, due to the global economic crisis and domestic political turbulence.
The five companies are Thai Airport Ground Services, in which AOT has a 28.5-per-cent stake; King Power Duty Free, in which it holds 5 per cent; Airport Duty Free (10 per cent); Airport Associate (10 per cent); and Fuel Pipeline Transportation (1.38 per cent).
"The share-disposal suggestion is the result of a study by a working committee chaired by AOT director Prasong Poontaneat. The study suggested AOT should dispose of shares in five of its 11 subsidiaries and affiliated companies, due to possible conflicts of interest," the source |said.
The source said the committee had concluded AOT could maintain stakes in the remaining six companies, as there were no signs of conflict of interest.
The six companies are Suvarnabhumi Airport Hotel (60-per-cent holding), Thai Aviation Refuelling (10 per cent), Bangkok Aviation Fuel Services (4.94 per cent), Phuket Kitchen (10 per cent), Don Mueang International Airport Hotel (9 per cent) and Trade Siam (1.5 per cent).
AOT operates Suvarnabhumi and four other international airports in Thailand.
Meanwhile, the board will also consider the management's proposal to operate a ticket-screening service. AOT had planned to outsource the service but now considers that operating the service itself will save on maintenance costs.
The source said the board would also consider a new marketing campaign that would see AOT provide more benefits to certain airlines. Under such a campaign, airlines with a high number of passengers passing through its airports would enjoy special landing and parking fees.
AOT had planned to provide special fees across the board but now considers this would make too much of a dent in its revenue.
AOT posted a net profit of Bt1.47 billion for the quarter from April to June, against Bt7.3 billion in the same period last year.
The full-year net profit is also expected to drop, due to a |sharp decrease in the number of travellers.
It estimates the number of international arrivals this year will drop from last year's 14.6 million to between 12 million and 13 million, due to the global economic crisis and domestic political turbulence.
Lighter airplanes open new horizons for PB Air
PB Air is adding two new light aircraft to its fleet as part of its business optimisation and expansion plan.
The airline, controlled by Boon Rawd Brewery baron Piya Bhirom-Bhakdi, has leased two twin-engine turboprop Saab 340s from AeroCentury, a Californiabased aircraft leasing and financing firm,for five years.
The first of the Saabs, which are about 12 years old, is due to join the carrier's fleet, now comprising two larger Frenchmade ATR 72-500 turboprops leased from Bangkok Airways, by the end of September. The second aircraft is scheduled for delivery a month later.
PB Air director Heribert Gaksch said the two Saab 340s were well suited to demand patterns on two new routes Bangkok-Surin and Bangkok-Chumphon - that it plans to introduce.
They will also save costs on some of PB Air's existing routes which use ATR 72-500 aircraft whose 70-seat capacity has become excessive in the light of weak travel demand.
"The ATRs are half-filled on some existing routes, like those to Mae Sot,"he said."If we could carry 25 to 26 passengers on each Saab 340 flight then we could break even."
The 19-year-old airline hopes to inaugurate four flights per week to Chumphon, and three to Surin, later this year.
The airline plans to keep the two ATR aircraft in its fleet, to serve its trunk routes to Lampang, Nakhon Phanom and Sakhon Nakhon, said Mr Gaksch.
That means PB Air would renew its lease for the two ATRs, due to end in October, with Bangkok Airways.
Rising jet fuel prices are currently PB Air's biggest concern. The airline is "slowly coming out of the mud of red numbers", said Mr Gaksch, adding that the carrier should break even by year-end.
The airline, controlled by Boon Rawd Brewery baron Piya Bhirom-Bhakdi, has leased two twin-engine turboprop Saab 340s from AeroCentury, a Californiabased aircraft leasing and financing firm,for five years.
The first of the Saabs, which are about 12 years old, is due to join the carrier's fleet, now comprising two larger Frenchmade ATR 72-500 turboprops leased from Bangkok Airways, by the end of September. The second aircraft is scheduled for delivery a month later.
PB Air director Heribert Gaksch said the two Saab 340s were well suited to demand patterns on two new routes Bangkok-Surin and Bangkok-Chumphon - that it plans to introduce.
They will also save costs on some of PB Air's existing routes which use ATR 72-500 aircraft whose 70-seat capacity has become excessive in the light of weak travel demand.
"The ATRs are half-filled on some existing routes, like those to Mae Sot,"he said."If we could carry 25 to 26 passengers on each Saab 340 flight then we could break even."
The 19-year-old airline hopes to inaugurate four flights per week to Chumphon, and three to Surin, later this year.
The airline plans to keep the two ATR aircraft in its fleet, to serve its trunk routes to Lampang, Nakhon Phanom and Sakhon Nakhon, said Mr Gaksch.
That means PB Air would renew its lease for the two ATRs, due to end in October, with Bangkok Airways.
Rising jet fuel prices are currently PB Air's biggest concern. The airline is "slowly coming out of the mud of red numbers", said Mr Gaksch, adding that the carrier should break even by year-end.
Tuesday, August 25, 2009
Jetstar Asia to launch China flights
The Singapore-based budget carrier Jetstar Asia announced yesterday it would expand capacity and planned to begin flights to mainland China in December.
"Mainland China has immense potential for Jetstar's low-fare offering and the broader Jetstar group network destinations," said chief executive Chong Phit Lian.
"China is a clear focus of future growth and with our expanding fleet in 2010,we are in the stage of actively assessing future potential growth," she said.
As well as aiming to expand into China,Jetstar will from October increase flights to Manila from seven to 10 per week,and will also run three daily trips instead of the current two to Bangkok from next month.
And from December the firm will resume its flights to Phuket, a route it terminated in March last year partly due to escalating oil prices.
Jetstar Asia said it would take delivery of three Airbus A320 jets over the next 12 months, which will boost its fleet capacity by 46%.
Meanwhile, Malaysian low-cost carrier AirAsia said yesterday it would launch its seventh route into mainland China in October as part of its regional expansion despite the economic slump.
"AirAsia will be the first airline to fly direct from Kuala Lumpur to Chengdu,the capital city of Sichuan province in southwestern China, with four weekly flights from October 20," it said in a statement.
The carrier said the new route would be operated by its long-haul affiliate AirAsia X.
AirAsia already flies to Shenzhen,Guangzhou, Guilin and Haikou in the southern region, Hangzhou in the east and Tianjin in the north.
It also has flights to Hong Kong and Macau.
"Mainland China has immense potential for Jetstar's low-fare offering and the broader Jetstar group network destinations," said chief executive Chong Phit Lian.
"China is a clear focus of future growth and with our expanding fleet in 2010,we are in the stage of actively assessing future potential growth," she said.
As well as aiming to expand into China,Jetstar will from October increase flights to Manila from seven to 10 per week,and will also run three daily trips instead of the current two to Bangkok from next month.
And from December the firm will resume its flights to Phuket, a route it terminated in March last year partly due to escalating oil prices.
Jetstar Asia said it would take delivery of three Airbus A320 jets over the next 12 months, which will boost its fleet capacity by 46%.
Meanwhile, Malaysian low-cost carrier AirAsia said yesterday it would launch its seventh route into mainland China in October as part of its regional expansion despite the economic slump.
"AirAsia will be the first airline to fly direct from Kuala Lumpur to Chengdu,the capital city of Sichuan province in southwestern China, with four weekly flights from October 20," it said in a statement.
The carrier said the new route would be operated by its long-haul affiliate AirAsia X.
AirAsia already flies to Shenzhen,Guangzhou, Guilin and Haikou in the southern region, Hangzhou in the east and Tianjin in the north.
It also has flights to Hong Kong and Macau.
AoT reveals B32m tender
Airports of Thailand Plc is planning to call for tenders for six redevelopment projects at Don Mueang airport totalling more than 32 million baht.
The announcement had sparked interest from several private firms, Transport Minister Sohpon Zarum said yesterday.
AoT is preparing legal documents,project details and investment and returns forecasts prior to calling for tenders for the outsourcing contracts, Mr Sohpon said.
The successful firms will be announced within the month.
The six projects are: the renovation of Don Mueang's private jet and air taxi terminal; the provision of landing gear maintenance for 150-seat aircraft; the management of a regional aviation spare parts service; the operation of maintenance and repair services for small and medium-sized aircraft; the development of an international free trade zone; and the establishment of an airline pilot flight simulator training centre.
AoT is seeking permission from the Customs Department to turn part of the airport into a customs- and tax-free zone to provide a free trade area.
AoT president Serirat Prasutanond said five of the projects - excluding the flight simulator training centre which is being budgeted - would cost 32.3 million baht to outsource.
The announcement had sparked interest from several private firms, Transport Minister Sohpon Zarum said yesterday.
AoT is preparing legal documents,project details and investment and returns forecasts prior to calling for tenders for the outsourcing contracts, Mr Sohpon said.
The successful firms will be announced within the month.
The six projects are: the renovation of Don Mueang's private jet and air taxi terminal; the provision of landing gear maintenance for 150-seat aircraft; the management of a regional aviation spare parts service; the operation of maintenance and repair services for small and medium-sized aircraft; the development of an international free trade zone; and the establishment of an airline pilot flight simulator training centre.
AoT is seeking permission from the Customs Department to turn part of the airport into a customs- and tax-free zone to provide a free trade area.
AoT president Serirat Prasutanond said five of the projects - excluding the flight simulator training centre which is being budgeted - would cost 32.3 million baht to outsource.
Monday, August 24, 2009
AIRLINE UPGRADES ERODING THEIR PRIME PROFIT SOURCE
Price cuts aimed at filling empty airline seats mean flying business class is not longer a luxury affordable only when teh company is paying.
Swiss International Air Lines is selling upgrades to flat-bed beths for US$460 (Bt15,700), while Singapore Airlines has halved thhe price of business tickets bought with air miles and British Airways has offered two premium seats for the price of one.
First-and business-class travel fell 21 per cent worldwide in June compared with a year earlier, or three times the decline in economy class, accordiing to industry data.
That has eroded the prime source of profit at carriers such as British Airways, which last year got 45 per cent of revenue from premium travel tha taccounted for only 13 cent of seats sold.
"There are more promotions than ever, fare wars left and right, and you can use your air milers in ways we've never seen before, " said Matt Bennett, founder of First Class Flyer.com, a Monterey, California-based online newsletter.
"What's bad for airlines is great for travellers. Their pricing structure is under siege."
Filling seats through discounts is risky, said Stephen Furlong, a Dublin-based analyst with Davy Stockbrokers. Cheaper deals may erode the exclusivity of premiumclass travel and business flyers may switch en masse to teh cheaper fares, hurting overall revenue.
While June's fall in premium traffic eased from a 24-per-cent drop in May, the improvement came at the expense of a steeper decline in revenue, which fell 41 per cent in the second quarter as fares shrank.
Singapore Airlines, where the exclusivity of premium class-travel "used to be sacred" according to Beneett, has offered its 76 centimetre business seats, among the widest in the industry, at a 50-per-cent discount when paid for in airr miles. The deal has featured 25 destinations this year with about half a dozen qualifyingin any given month.
The discounting is a response to the economic slump and the company's strategy is to remmain a premium, fulol-service carrier, spokesman Nick Ionides said.
British Airways introduced its first ever two-for-one flights offer in May for selected departures between June and October. The deal is still available to people booking from the US using a BA Visa credit card.
While cheap upgrades, heavy discounting and no-frills business seats may help airlines fill the front of their planes, carriers face a delicate balancing act in order to avoid permanently damaging demand for premium tickets.
Swiss International Air Lines is selling upgrades to flat-bed beths for US$460 (Bt15,700), while Singapore Airlines has halved thhe price of business tickets bought with air miles and British Airways has offered two premium seats for the price of one.
First-and business-class travel fell 21 per cent worldwide in June compared with a year earlier, or three times the decline in economy class, accordiing to industry data.
That has eroded the prime source of profit at carriers such as British Airways, which last year got 45 per cent of revenue from premium travel tha taccounted for only 13 cent of seats sold.
"There are more promotions than ever, fare wars left and right, and you can use your air milers in ways we've never seen before, " said Matt Bennett, founder of First Class Flyer.com, a Monterey, California-based online newsletter.
"What's bad for airlines is great for travellers. Their pricing structure is under siege."
Filling seats through discounts is risky, said Stephen Furlong, a Dublin-based analyst with Davy Stockbrokers. Cheaper deals may erode the exclusivity of premiumclass travel and business flyers may switch en masse to teh cheaper fares, hurting overall revenue.
While June's fall in premium traffic eased from a 24-per-cent drop in May, the improvement came at the expense of a steeper decline in revenue, which fell 41 per cent in the second quarter as fares shrank.
Singapore Airlines, where the exclusivity of premium class-travel "used to be sacred" according to Beneett, has offered its 76 centimetre business seats, among the widest in the industry, at a 50-per-cent discount when paid for in airr miles. The deal has featured 25 destinations this year with about half a dozen qualifyingin any given month.
The discounting is a response to the economic slump and the company's strategy is to remmain a premium, fulol-service carrier, spokesman Nick Ionides said.
British Airways introduced its first ever two-for-one flights offer in May for selected departures between June and October. The deal is still available to people booking from the US using a BA Visa credit card.
While cheap upgrades, heavy discounting and no-frills business seats may help airlines fill the front of their planes, carriers face a delicate balancing act in order to avoid permanently damaging demand for premium tickets.
Sunday, August 23, 2009
LA and London routes hurt Qantas
Australian flag-carrier Qantas yesterday blamed flagging demand on its key London and Los Angeles routes for an 88-per-cent drop in annual net profit.
Chief executive Alan Joyce said the two routes,, once the airline's main profit generators, were operating at aloss due to increased competition and the impact of the global financial crisis.
Joyce said that while the airline's domestic operations were still protitaable, the LA and London routes had dragged its international business into the red.
"Basically, those routes are the biggest issue," he told public broadcaster ABC.
"Those two big routes are very dependent on premium traffci. Premium traffic dropped by between 20 and 30 per cent for us."
Qantas last week announced net profit fell to 117 million dollars Australian dollars (Bt3.4 billion) in the 12 months to June, down from A4969 million.
Competition in the Australia-Los Angeles route has ramped up this years with US giant Delta and Virgin's V-Australia taking on existing players Qantas and United Airlines.
Chief executive Alan Joyce said the two routes,, once the airline's main profit generators, were operating at aloss due to increased competition and the impact of the global financial crisis.
Joyce said that while the airline's domestic operations were still protitaable, the LA and London routes had dragged its international business into the red.
"Basically, those routes are the biggest issue," he told public broadcaster ABC.
"Those two big routes are very dependent on premium traffci. Premium traffic dropped by between 20 and 30 per cent for us."
Qantas last week announced net profit fell to 117 million dollars Australian dollars (Bt3.4 billion) in the 12 months to June, down from A4969 million.
Competition in the Australia-Los Angeles route has ramped up this years with US giant Delta and Virgin's V-Australia taking on existing players Qantas and United Airlines.
Scots defend Libyan release
The Scottish government has defended its decision to free the Lockerbie bomber in the face of a blistering attack from the head of the FBI and criticism yesterday from political opponents at home.
FBI chief Robert Mueller said in a strongly worded letter to the Scottish justice minister that releasing Abdelbaset Ali Mohmet al-Megrahi "gave comfort to terrorists around the world". Mr Mueller said the decision to free Megrahi, who has terminal cancer, on compassionate grounds made a "mockery of justice".
But the Scottish government hit back,saying the decision to release Megrahi had been reached "on the basis of Scotland's due process, clear evidence and the recommendations from the parole board and prison governor".
"Compassionate release is not part of the US justice system but it is part of Scotland's," a spokesman said.
The Lockerbie case has personal resonance for Mr Mueller, a former prosecutor who played a major role in investigating the 1988 bombing of PanAm Flight 103 over the Scottish town in which 270 people died. The majority were Americans. Criticism of the decision also came from Scotland's former first minister Jack McConnell, who said it was a "grave error of judgement".
"The way in which the decision has been made and the decision itself have damaged the reputation of the Scottish justice system," he said."It's damaged that reputation, but more significantly it's also damaged the reputation of Scotland internationally." The semiautonomous Scottish government,based in Edinburgh, can take decisions independently of London on justice matters but not foreign affairs.
In its reply to Mr Mueller's criticism,the Scottish government said that before taking the decision, Scottish Justice Secretary Kenny MacAskill "could not have consulted more widely - he spoke with the US families, the US attorney-general, Secretary of State [Hillary] Clinton and many others".
Britain's Business Secretary Peter Mandelson - Prime Minister Gordon Brown's de facto deputy - said suggestions that a deal had been struck on Megrahi were "offensive".
The British government is under pressure to explain its role in Megrahi's release, but it says the decision was a matter solely for Scotland. London and Washington have condemned the "hero's welcome" given to Megrahi on his return to Libya.
"The idea the British government ... would sit down and somehow barter over the freedom or the life of this Libyan prisoner and make it all part of some business deal ... it's not only wrong, it's completely implausible and actually quite offensive," said Mr Mandelson.
European governments including Britain are lobbying hard for business in Libya as it emerges from years of sanctions. Oil companies such as BP and Shell are among several British firms hoping to make big profits in the desert country. Britain's Foreign Office flatly denied any link.
"No deal has been made between the UK government and Libya in relation to Megrahi and any commercial interests," a spokesman said.
FBI chief Robert Mueller said in a strongly worded letter to the Scottish justice minister that releasing Abdelbaset Ali Mohmet al-Megrahi "gave comfort to terrorists around the world". Mr Mueller said the decision to free Megrahi, who has terminal cancer, on compassionate grounds made a "mockery of justice".
But the Scottish government hit back,saying the decision to release Megrahi had been reached "on the basis of Scotland's due process, clear evidence and the recommendations from the parole board and prison governor".
"Compassionate release is not part of the US justice system but it is part of Scotland's," a spokesman said.
The Lockerbie case has personal resonance for Mr Mueller, a former prosecutor who played a major role in investigating the 1988 bombing of PanAm Flight 103 over the Scottish town in which 270 people died. The majority were Americans. Criticism of the decision also came from Scotland's former first minister Jack McConnell, who said it was a "grave error of judgement".
"The way in which the decision has been made and the decision itself have damaged the reputation of the Scottish justice system," he said."It's damaged that reputation, but more significantly it's also damaged the reputation of Scotland internationally." The semiautonomous Scottish government,based in Edinburgh, can take decisions independently of London on justice matters but not foreign affairs.
In its reply to Mr Mueller's criticism,the Scottish government said that before taking the decision, Scottish Justice Secretary Kenny MacAskill "could not have consulted more widely - he spoke with the US families, the US attorney-general, Secretary of State [Hillary] Clinton and many others".
Britain's Business Secretary Peter Mandelson - Prime Minister Gordon Brown's de facto deputy - said suggestions that a deal had been struck on Megrahi were "offensive".
The British government is under pressure to explain its role in Megrahi's release, but it says the decision was a matter solely for Scotland. London and Washington have condemned the "hero's welcome" given to Megrahi on his return to Libya.
"The idea the British government ... would sit down and somehow barter over the freedom or the life of this Libyan prisoner and make it all part of some business deal ... it's not only wrong, it's completely implausible and actually quite offensive," said Mr Mandelson.
European governments including Britain are lobbying hard for business in Libya as it emerges from years of sanctions. Oil companies such as BP and Shell are among several British firms hoping to make big profits in the desert country. Britain's Foreign Office flatly denied any link.
"No deal has been made between the UK government and Libya in relation to Megrahi and any commercial interests," a spokesman said.
GADHAFI JUNIOR COMES OUT OF THE SHADOWS
The man who paraded the Lockerbie bomber has played a pivotal role in ending Libya's isolation ByDaniel Howden and Jonathan Brown
It was the homecoming of Abdelbaset Ali al-Megrahi, the man convicted of the Lockerbie bombing, but in the event he was relegated to the part of mere supporting actor. Dressed in white and with his arms aloft at the top of the aircraft's stairs, the author of the Libyan victory, Saif al-Islam Gadhafi, was not going to allow his key role in the affair to be forgotten.
The spotlight remained glued to the son of Libya's president as he directed Megrahi's movements and ushered the television cameras up the stairs for a close-up.
The personal triumph being claimed on the runway of a Libyan military base came in stark contrast to the official line that the release had been standard Scottish judicial procedure. For the controversial return to Tripoli of the man convicted of murdering 270 people was the culmination of a personal mission by Saif al-Islam, who swore to bring Megrahi home last year.
Africa's longest serving president,Moammar al-Gadhafi, was conspicuous by his absence. In the hours preceding the landing the Libyan president had received a letter from Gordon Brown urging him to "act with sensitivity",while US President Barack Obama had told Libyan authorities not to welcome the prisoner but to "place him under house arrest".
Libya's Prime Minister Mahmoud al-Baghdadi opted not to comment on the release at a press conference last Thursday.
In the face of this official silence,the credit for the diplomatic coup was left to Colonel Gadhafi's heir-apparent,Saif al-Islam. The only television pictures of the homecoming seen in Libya were highlights broadcast on a channel strongly connected to the 37-year-old engineer, which showed him delivering his compatriot to a cheering crowd.
The spectacle was causing acute embarrassment in Scotland, where the devolved administration had sought to portray the release as a purely legal issue. In public at least the matter was being left entirely to the Scottish Justice Secretary, Kenny MacAskill.
But the political ramifications had been endlessly debated in the top echelons of the Scottish National Party,where it was felt that they had inherited an "impossible situation".
The April ratification by the British government of a prisoner transfer agreement with Libya was followed almost immediately with a request from Tripoli for Megrahi to be handed over.
With a prisoner exchange rejected as unacceptable to many of the families of victims and the US government, a second line of attack, a 1994 provision allowing compassionate licence to Scottish ministers, was brought into play.
The issue of compassionate release had been discussed at a meeting between Scottish and Libyan officials on July 6 when it was made clear that an application would most likely succeed.By July 24, Megrahi had applied.
This compromise allowed the Labour government in London to vent its anger at its SNP-led rival over the border and distance itself from the release despite the facilitating role it had played in the prisoner-exchange deal.
As with so many aspects of Libya's reconciliation with the West, the timing of the latest move raised serious questions.
Megrahi's release coincides with the opening festivities in the celebration of the 40th anniversary of Libya's revolution, which falls in September.
But there is a limited amount to celebrate. The poor living standards most Libyans endure have in the past been blamed on UN sanctions, but now that excuse is gone. Gadhafi senior's grandstanding at the head of the African Union has been met with grumbling at home, where massive oil revenues have failed to deliver improved roads, hospitals, schools and institutions.
Conceding political ownership of Megrahi's homecoming to Saif al-Islam appeared calculated to deflate mount-ing domestic criticism of his father and, furthermore, to raise a clamour for Saif to withdraw his announcement last year that he had retired from politics.
While the Scottish decision to release the bomber on compassionate grounds appeared sudden, it followed a round of high-level shuttle diplomacy carried out by Gadhafi's second-born son.
The compulsion to secure privileged access to Libya's enormous energy reserves has seen political leaders from Tony Blair to Nicolas Sarkozy get to grips with Gadhafi's bedouin roadshow.More recently Mr Brown and Mr Obama met the unpredictable autocrat on the fringes of the G8 meeting this month.But there is little doubt that the West favours the more urbane son as its gobetween with Tripoli.
In each of the major diplomatic breakthroughs that have brought Libya in from the cold and advanced it to the status of "strategic partner" to the UK,Saif al-Islam has had a decisive role.He has been at the centre of the secret accords, trade deals, compensation packages and prisoner exchanges that have marked the country's return to respectability.
The abandonment of Libya's nuclear weapons programme, the release of the Bulgarian medics convicted of infecting children with HIV, the agreement of compensation for the Lockerbie bombings, the normalisation of relations with the US - all have borne the fingerprints of Saif al-Islam.
Which was why it was a surprise in August last year when he announced he was withdrawing from politics, dis-missing speculation that he would replace his father, saying that Libya "was not a farm to be inherited".
But, in the eccentric politics of Gadhafi senior, few certainties can be relied on. Three months later Saif was in New York talking about a constitution and democratic elections for Libya.The deadline he set for this was September of this year, at the end of the anniversary celebrations commemorating his father's rise to power. The stage could be set for Saif to reconsider inheriting the farm.
It was the homecoming of Abdelbaset Ali al-Megrahi, the man convicted of the Lockerbie bombing, but in the event he was relegated to the part of mere supporting actor. Dressed in white and with his arms aloft at the top of the aircraft's stairs, the author of the Libyan victory, Saif al-Islam Gadhafi, was not going to allow his key role in the affair to be forgotten.
The spotlight remained glued to the son of Libya's president as he directed Megrahi's movements and ushered the television cameras up the stairs for a close-up.
The personal triumph being claimed on the runway of a Libyan military base came in stark contrast to the official line that the release had been standard Scottish judicial procedure. For the controversial return to Tripoli of the man convicted of murdering 270 people was the culmination of a personal mission by Saif al-Islam, who swore to bring Megrahi home last year.
Africa's longest serving president,Moammar al-Gadhafi, was conspicuous by his absence. In the hours preceding the landing the Libyan president had received a letter from Gordon Brown urging him to "act with sensitivity",while US President Barack Obama had told Libyan authorities not to welcome the prisoner but to "place him under house arrest".
Libya's Prime Minister Mahmoud al-Baghdadi opted not to comment on the release at a press conference last Thursday.
In the face of this official silence,the credit for the diplomatic coup was left to Colonel Gadhafi's heir-apparent,Saif al-Islam. The only television pictures of the homecoming seen in Libya were highlights broadcast on a channel strongly connected to the 37-year-old engineer, which showed him delivering his compatriot to a cheering crowd.
The spectacle was causing acute embarrassment in Scotland, where the devolved administration had sought to portray the release as a purely legal issue. In public at least the matter was being left entirely to the Scottish Justice Secretary, Kenny MacAskill.
But the political ramifications had been endlessly debated in the top echelons of the Scottish National Party,where it was felt that they had inherited an "impossible situation".
The April ratification by the British government of a prisoner transfer agreement with Libya was followed almost immediately with a request from Tripoli for Megrahi to be handed over.
With a prisoner exchange rejected as unacceptable to many of the families of victims and the US government, a second line of attack, a 1994 provision allowing compassionate licence to Scottish ministers, was brought into play.
The issue of compassionate release had been discussed at a meeting between Scottish and Libyan officials on July 6 when it was made clear that an application would most likely succeed.By July 24, Megrahi had applied.
This compromise allowed the Labour government in London to vent its anger at its SNP-led rival over the border and distance itself from the release despite the facilitating role it had played in the prisoner-exchange deal.
As with so many aspects of Libya's reconciliation with the West, the timing of the latest move raised serious questions.
Megrahi's release coincides with the opening festivities in the celebration of the 40th anniversary of Libya's revolution, which falls in September.
But there is a limited amount to celebrate. The poor living standards most Libyans endure have in the past been blamed on UN sanctions, but now that excuse is gone. Gadhafi senior's grandstanding at the head of the African Union has been met with grumbling at home, where massive oil revenues have failed to deliver improved roads, hospitals, schools and institutions.
Conceding political ownership of Megrahi's homecoming to Saif al-Islam appeared calculated to deflate mount-ing domestic criticism of his father and, furthermore, to raise a clamour for Saif to withdraw his announcement last year that he had retired from politics.
While the Scottish decision to release the bomber on compassionate grounds appeared sudden, it followed a round of high-level shuttle diplomacy carried out by Gadhafi's second-born son.
The compulsion to secure privileged access to Libya's enormous energy reserves has seen political leaders from Tony Blair to Nicolas Sarkozy get to grips with Gadhafi's bedouin roadshow.More recently Mr Brown and Mr Obama met the unpredictable autocrat on the fringes of the G8 meeting this month.But there is little doubt that the West favours the more urbane son as its gobetween with Tripoli.
In each of the major diplomatic breakthroughs that have brought Libya in from the cold and advanced it to the status of "strategic partner" to the UK,Saif al-Islam has had a decisive role.He has been at the centre of the secret accords, trade deals, compensation packages and prisoner exchanges that have marked the country's return to respectability.
The abandonment of Libya's nuclear weapons programme, the release of the Bulgarian medics convicted of infecting children with HIV, the agreement of compensation for the Lockerbie bombings, the normalisation of relations with the US - all have borne the fingerprints of Saif al-Islam.
Which was why it was a surprise in August last year when he announced he was withdrawing from politics, dis-missing speculation that he would replace his father, saying that Libya "was not a farm to be inherited".
But, in the eccentric politics of Gadhafi senior, few certainties can be relied on. Three months later Saif was in New York talking about a constitution and democratic elections for Libya.The deadline he set for this was September of this year, at the end of the anniversary celebrations commemorating his father's rise to power. The stage could be set for Saif to reconsider inheriting the farm.
AS LOAD FALLS, JAL SEEKS MERGER WITH CARGO RIVAL
Japan Airlines yesterday announced that it aimed to merge its freight business with that of rival Nippon Cargo Airlines in response to a sharp drop in demand during the economic downturn.
JAL, which lost US$1 billion (Bt34 billion) in the three months to June, said it had agreed to start negotiations with Nippon Yusen Kaisha, which owns the rival cargo firm, with a view to joining forces by April 1, 2010.
"Following the collapse of the economy in the United States last autumn, the financial crisis that spread worldwide caused demand for air cargo transport to fall drastically and market situations to worsen," JAL said.
A merger of the two largest cargo operators in Japan should enable them to make a profit, JAL said.
The two airlines have already started code-sharing for cargo flights.
"Further consolidation is expected to bring about more benefits such as allowing both companies to significantly reduce cost and to fortify their technical expertise," JAL said in a statement.
JAL, Asia's biggest carrier, earlier this month announced drastic cuts to its flight services as it braces for a second staright year in the red.
JAL, which lost US$1 billion (Bt34 billion) in the three months to June, said it had agreed to start negotiations with Nippon Yusen Kaisha, which owns the rival cargo firm, with a view to joining forces by April 1, 2010.
"Following the collapse of the economy in the United States last autumn, the financial crisis that spread worldwide caused demand for air cargo transport to fall drastically and market situations to worsen," JAL said.
A merger of the two largest cargo operators in Japan should enable them to make a profit, JAL said.
The two airlines have already started code-sharing for cargo flights.
"Further consolidation is expected to bring about more benefits such as allowing both companies to significantly reduce cost and to fortify their technical expertise," JAL said in a statement.
JAL, Asia's biggest carrier, earlier this month announced drastic cuts to its flight services as it braces for a second staright year in the red.
Saturday, August 22, 2009
Air cargo firms eye merger
Japan Airlines Corp said it would start talks to merge its ailing cargo business with a unit of shipping firm Nippon Yusen as the airline looks to return to profit with the help of statebacked funds.
JAL, Asia's largest airline by revenue,secured a deal in June to borrow 100 billion yen ($1.1 billion) from two statebacked lenders and three commercial banks and is now restructuring under state supervision.
The company has already announced plans to cut domestic and international flights, but is under pressure to come up with more drastic cost-saving measures as it heads for its second-straight annual loss in the year to March 2010.
JAL and Nippon Yusen said they would begin talks towards a potential merger of their cargo businesses in April, building on a code-sharing alliance between the two firms under which they mutually use each others networks to sell and transport cargo.
"The air cargo business has been one of the hardest hit industries by the re-cession from last year," Hitoshi Oshika,corporate officer of Nippon Yusen, said at the briefing.
The combination of JAL's cargo business with the Nippon Yusen unit, Nippon Cargo Airlines Co, would create a company with combined sales of about $3 billion and in control of roughly 30% of Japan's international air cargo market,JAL said.
Its global competitors would include FedEx Corp and UPS.
JAL reported a 50.9 billion yen operating loss for the year to March 2009 and has forecast a 59 billion yen loss for the current year, as it struggles to control costs and suffers along with other airlines due to a slump in global travel.
Nippon Yusen has been looking for ways to turn around its air cargo business,which booked an operating loss of 17.9 billion yen in the year to March 2009 on sales of 79.4 billion yen.
The shipping firm has implemented cost-cutting measures and replaced its fleet with more fuel-efficient cargo planes.
JAL, Asia's largest airline by revenue,secured a deal in June to borrow 100 billion yen ($1.1 billion) from two statebacked lenders and three commercial banks and is now restructuring under state supervision.
The company has already announced plans to cut domestic and international flights, but is under pressure to come up with more drastic cost-saving measures as it heads for its second-straight annual loss in the year to March 2010.
JAL and Nippon Yusen said they would begin talks towards a potential merger of their cargo businesses in April, building on a code-sharing alliance between the two firms under which they mutually use each others networks to sell and transport cargo.
"The air cargo business has been one of the hardest hit industries by the re-cession from last year," Hitoshi Oshika,corporate officer of Nippon Yusen, said at the briefing.
The combination of JAL's cargo business with the Nippon Yusen unit, Nippon Cargo Airlines Co, would create a company with combined sales of about $3 billion and in control of roughly 30% of Japan's international air cargo market,JAL said.
Its global competitors would include FedEx Corp and UPS.
JAL reported a 50.9 billion yen operating loss for the year to March 2009 and has forecast a 59 billion yen loss for the current year, as it struggles to control costs and suffers along with other airlines due to a slump in global travel.
Nippon Yusen has been looking for ways to turn around its air cargo business,which booked an operating loss of 17.9 billion yen in the year to March 2009 on sales of 79.4 billion yen.
The shipping firm has implemented cost-cutting measures and replaced its fleet with more fuel-efficient cargo planes.
Rock-bottom air fares on offer
International airlines are offering extralow prices both inside and outside of Thailand in a bid to attract more passengers during this low season.
Turkish Airlines yesterday announced its "Great SurprisesW promotion for the month of September. Round trips from Istanbul to Casablanca, Tel Aviv, Abu Dhabi, Amman, Nice, Berlin, Beirut, Stockholm, Frankfurt, Chisinau, Gothenburg and Hanover will be priced from Euro111(Bt 5,400), execluding taxes, for economy class and Euro 333 for business class.
Long-range flights will also be included in the campaign, with round trips from Istanbul to Lagos, Singapore, Jakarta, Bangkok and New York priced from Euro 333, excluding taxes.
Jetstar will operate two flights a day between Singapore and Phuket from December 15. Starting late next month, it will increase its gfrequency between Bangkok and Singapore from two flights a day to three.
AirAsia recently announced a new service between Kuala Lumpur and Abu Dhabi on subsidiary AirAsia X to begin on November 23.
The airline is now offering an attractive all-inclusive price of Bt1,020 one way, available exclusively online via its website until next Wednesday for travel between November 23 and next July 31.
Thai Airways International recently launched a new Royal Orchid Holidays "Historic Legendary Mosques in Bangkok" package. To promote the package, the airline flew in Pakistani reporters to visit the Bang Luang, Ton Son and Charoen Pasana mosques in Bangkok.
The promotion is aimed at attractoing Muslim passengers during this low season.
Turkish Airlines yesterday announced its "Great SurprisesW promotion for the month of September. Round trips from Istanbul to Casablanca, Tel Aviv, Abu Dhabi, Amman, Nice, Berlin, Beirut, Stockholm, Frankfurt, Chisinau, Gothenburg and Hanover will be priced from Euro111(Bt 5,400), execluding taxes, for economy class and Euro 333 for business class.
Long-range flights will also be included in the campaign, with round trips from Istanbul to Lagos, Singapore, Jakarta, Bangkok and New York priced from Euro 333, excluding taxes.
Jetstar will operate two flights a day between Singapore and Phuket from December 15. Starting late next month, it will increase its gfrequency between Bangkok and Singapore from two flights a day to three.
AirAsia recently announced a new service between Kuala Lumpur and Abu Dhabi on subsidiary AirAsia X to begin on November 23.
The airline is now offering an attractive all-inclusive price of Bt1,020 one way, available exclusively online via its website until next Wednesday for travel between November 23 and next July 31.
Thai Airways International recently launched a new Royal Orchid Holidays "Historic Legendary Mosques in Bangkok" package. To promote the package, the airline flew in Pakistani reporters to visit the Bang Luang, Ton Son and Charoen Pasana mosques in Bangkok.
The promotion is aimed at attractoing Muslim passengers during this low season.
Friday, August 21, 2009
Sohpon objects to upgrade
Transport Minister Sohpon Zarum is objecting to the House committee on transport's proposal to develop Nam Phong airport into a commercial airport because he says nearby Khon Kaen airport can still function well enough.
The minister yesterday said that there was no need to develop Nam Phong airport because Khon Kaen airport was only about 30 kilometres away and had enough capacity for air traffic needs.
Besides, the development of Nam Phong airport, which the air force was using for training, would end up being too costly, he said.
Echoing Mr Sohpon, Chaisak Angsuwan, deputy permanent secretary of the Transport Ministry, said that Khon Kaen airport was capable of serving 2.5 million passengers a year and that the current number of air passengers visiting the airport was only around 400,000 to 500,000 a year.
He said that Nam Phong airport was the only place left for the air force to conduct exercises and the air force regularly uses the airport for this purpose.
Developing Nam Phong into a commercial airport would affect military operations and thus jeopardise national security, Mr Chaisak said.
The runway and parking bays of Nam Phong airport are heavily cracked and the airport is surrounded by tall trees,he said.
It would be too costly to maintain the facility which would also need a better road network in its vicinity.
The minister yesterday said that there was no need to develop Nam Phong airport because Khon Kaen airport was only about 30 kilometres away and had enough capacity for air traffic needs.
Besides, the development of Nam Phong airport, which the air force was using for training, would end up being too costly, he said.
Echoing Mr Sohpon, Chaisak Angsuwan, deputy permanent secretary of the Transport Ministry, said that Khon Kaen airport was capable of serving 2.5 million passengers a year and that the current number of air passengers visiting the airport was only around 400,000 to 500,000 a year.
He said that Nam Phong airport was the only place left for the air force to conduct exercises and the air force regularly uses the airport for this purpose.
Developing Nam Phong into a commercial airport would affect military operations and thus jeopardise national security, Mr Chaisak said.
The runway and parking bays of Nam Phong airport are heavily cracked and the airport is surrounded by tall trees,he said.
It would be too costly to maintain the facility which would also need a better road network in its vicinity.
Tyre glitch jet lands safely
A Thai Airways International plane has landed safely at Suvarnabhumi airport after developing technical problems.
Flight TG 234 from Hat Yai to Bangkok carrying more than 200 passengers and crew suffered a tyre problemwhile landing at about 1pm yesterday, causing the wheels to stop functioning normally.The tyres automatically deflated.
The pilot managed to bring the aircraft to a halt safely. No passengers were injured, said acting THAI president Narongsak Sangkhapong. The plane was an Airbus A300-600, which had been in use for some time.
THAI issued a statement to clarify the incident. It said that the Airbus had 232 passengers on board.
The flight departed from Hat Yai airport at 11.27am and was scheduled to arrive at Suvarnabhumi airport at 1pm.
When the aircraft approached Suvarnabhumi, the tyre no.4 fuse blew during landing.
The pilot made an announcement to inform passengers and had the aircraft towed from the runway to the taxiway,then to the parking bay. The flight crew reported the incident for towing to parking bay No.202 at 1.25pm.
The aircraft was equipped with a tyre fuse safety system to safeguard against tyre bursts, where the system releases pressure from the upper area of the tyre to depressurise it.
THAI's Technical Department has conducted a thorough check of the aircraft concerned to find the cause of the incident and found nothing abnormal with the aircraft brake system.
Flight TG 234 from Hat Yai to Bangkok carrying more than 200 passengers and crew suffered a tyre problemwhile landing at about 1pm yesterday, causing the wheels to stop functioning normally.The tyres automatically deflated.
The pilot managed to bring the aircraft to a halt safely. No passengers were injured, said acting THAI president Narongsak Sangkhapong. The plane was an Airbus A300-600, which had been in use for some time.
THAI issued a statement to clarify the incident. It said that the Airbus had 232 passengers on board.
The flight departed from Hat Yai airport at 11.27am and was scheduled to arrive at Suvarnabhumi airport at 1pm.
When the aircraft approached Suvarnabhumi, the tyre no.4 fuse blew during landing.
The pilot made an announcement to inform passengers and had the aircraft towed from the runway to the taxiway,then to the parking bay. The flight crew reported the incident for towing to parking bay No.202 at 1.25pm.
The aircraft was equipped with a tyre fuse safety system to safeguard against tyre bursts, where the system releases pressure from the upper area of the tyre to depressurise it.
THAI's Technical Department has conducted a thorough check of the aircraft concerned to find the cause of the incident and found nothing abnormal with the aircraft brake system.
Thursday, August 20, 2009
THAI plans direct flights to Brisbane
Thai Airways International will inaugurate non-stop flights between Bangkok and Brisbane on Oct 25 to substitute the existing services that go southward to Sydney first before stopping at Brisbane.
The change is meant to cash in on the growing traffic between the Thai capital and Queensland's capital and is part of the flag carrier's bid to enhance its Australian profile in its next traffic programme.
THAI will offer five turnaround nonstop flights from Bangkok to Brisbane using Boeing B777-200 aircraft with 309 seats, according to THAI executives.
The airline will continue to operate triple daily non-stop services between Sydney and Bangkok through the winter schedule that ends on March 27 next year, using a combined fleet of Airbus A340-600s with 267 seats and B777-200s.
Likewise, THAI will keep its twicedaily flights between Bangkok and Melbourne using B777-300s, capable of carrying 364 and 388 passengers depending on the seat configurations of an aircraft.
THAI's Bangkok-Perth service will continue at five flights a week, using Airbus A330-300s with 305 seats.
There will be no change in its BangkokAuckland service with the continuation of five non-stop flights a week being operated by B777-200.
Aside from the amendment for its Brisbane service, the national carrier is taking a conservative approach in planning the capacity for Australian/New Zealand networks rather than boosting capacity as it would normally do in the winter period when air travel demand is stronger.
THAI does not expect a marked increase in demand any time soon given the impact of the recession and lingering concern about H1N1 influenza.
The change is meant to cash in on the growing traffic between the Thai capital and Queensland's capital and is part of the flag carrier's bid to enhance its Australian profile in its next traffic programme.
THAI will offer five turnaround nonstop flights from Bangkok to Brisbane using Boeing B777-200 aircraft with 309 seats, according to THAI executives.
The airline will continue to operate triple daily non-stop services between Sydney and Bangkok through the winter schedule that ends on March 27 next year, using a combined fleet of Airbus A340-600s with 267 seats and B777-200s.
Likewise, THAI will keep its twicedaily flights between Bangkok and Melbourne using B777-300s, capable of carrying 364 and 388 passengers depending on the seat configurations of an aircraft.
THAI's Bangkok-Perth service will continue at five flights a week, using Airbus A330-300s with 305 seats.
There will be no change in its BangkokAuckland service with the continuation of five non-stop flights a week being operated by B777-200.
Aside from the amendment for its Brisbane service, the national carrier is taking a conservative approach in planning the capacity for Australian/New Zealand networks rather than boosting capacity as it would normally do in the winter period when air travel demand is stronger.
THAI does not expect a marked increase in demand any time soon given the impact of the recession and lingering concern about H1N1 influenza.
Thai Airways, our pride Airline
Some says that "Life is a journey" but some says that "A journey is one way of living" and most of the time this ciuples Koi (The lead singer of Saturday Seiko) and Young (The lead singer of Armchair) they have someing in common. Their journeys make them meet someone and separated from someone and meet something truly meaningful in life and it all became the memorize of the songs, the pictures and the sotires that will last forever in their hearts.
Travel to Europe is a once in a lifetime experiences for most people. Especially when you're going to Paris, France. The city full of romantic and exotic places. You'll forget how time flies and how wanted to coming back to this place as soon as possible. No wonder that Koi and Young (The fabulous couple who has the most stylish style and the most creative songs ever in Thailand are can't wait to get back to this place as soon as possible. No wonder that Koi and Young (The fabulous couple who has the most creative songs ever in Thailand are can't wait to get back to this city of love again) "We have the feeling that when we shooting our album's cover, it must be paris and of course it must be Thai Airways, our national carrier", Koi and Yong shared with us.
With the world class reputation of Thai Airways the couple realize that ofter than a touch of Thai hospitality that no airline could ever offer, "a true sense of caring like we are their friend and family are also impressed us always. Those are the reasons that why we have Thai Airways in top of mind", the couple shared.
"There was an impressive story, during our flight to Paris, most of cabin crews came to us with kind recommended romantic destinations throught Paris and countrysides. There were indeed charming places, thank you to Thjai Airways and the crew that turn our ordinarry journey to the impressive moment every, it is a sense of hi trust that Thai Airways will have a good taking care of us". Without them, oru fabulous photos shoot would never happened. Thank you so much to be a part of our album Koi and Yong share with us with excited voices. "Thai Airways makes our fabulous trip to Paris as smooth as silk" The couples said closures.
Travel to Europe is a once in a lifetime experiences for most people. Especially when you're going to Paris, France. The city full of romantic and exotic places. You'll forget how time flies and how wanted to coming back to this place as soon as possible. No wonder that Koi and Young (The fabulous couple who has the most stylish style and the most creative songs ever in Thailand are can't wait to get back to this place as soon as possible. No wonder that Koi and Young (The fabulous couple who has the most creative songs ever in Thailand are can't wait to get back to this city of love again) "We have the feeling that when we shooting our album's cover, it must be paris and of course it must be Thai Airways, our national carrier", Koi and Yong shared with us.
With the world class reputation of Thai Airways the couple realize that ofter than a touch of Thai hospitality that no airline could ever offer, "a true sense of caring like we are their friend and family are also impressed us always. Those are the reasons that why we have Thai Airways in top of mind", the couple shared.
"There was an impressive story, during our flight to Paris, most of cabin crews came to us with kind recommended romantic destinations throught Paris and countrysides. There were indeed charming places, thank you to Thjai Airways and the crew that turn our ordinarry journey to the impressive moment every, it is a sense of hi trust that Thai Airways will have a good taking care of us". Without them, oru fabulous photos shoot would never happened. Thank you so much to be a part of our album Koi and Yong share with us with excited voices. "Thai Airways makes our fabulous trip to Paris as smooth as silk" The couples said closures.
Heathrow subject of new book
Heathrow Airport has hired a writer-in-residence to chronicle the modern travel experience in hopes of showing frazzled passengers there's more to flying than long lines and waiting.
Alain de Botton, author of highbrow best-sellers including The Consolations of Philosophy and How Proust Can Change Your Life ,"is spending a week inside Heathrow's Terminal 5," the airport said on Wednesday.
De Botton began his stint on Tuesday and spends some of the time sitting behind a desk in the departures area,observing and interviewing passengers and staff.
De Botton,39, said airport officials had agreed to give him full access to the terminal and to allow him to write what he likes. The airport hopes the project will give readers a more rounded picture of what goes on behind the scenes.
"My agent and I devised the cockroach test: in other words, I had to be allowed to discuss every last cockroach I might spot at the airport if that's what I felt like doing," he wrote in Wednesday's Evening Standard newspaper.He said airports - so often thought of as places to be endured - were fascinating locations where big global themes including technology, globalisation, consumerism and the environment came to life.
"If you wanted to take a Martian to a single place that best captures everything that is distinctive and particular to mod-ern civilisation, in its highs and lows,you would undoubtedly take them to the airport," said de Botton, whose latest book is The Pleasures and Sorrows of Work.
Overcrowded Heathrow is Europe's busiest airport, but far from the bestloved.
Terminal 5, designed to modernise and expand the airport, opened last year in a blaze of negative publicity. Hundreds of flights were canceled and thousands of pieces of luggage lost after the terminal's high-tech baggage-handling system broke down.
Heathrow chief operating officer Mike Brown conceded that opening the airport up to a writer's scrutiny was "a bold and adventurous step."
De Botton's observations will be col-lected in a book scheduled to be published next month. Some 10,000 copies will be given away free to travellers at Heathrow.
Heathrow says it is the first airport to employ a writer-in-residence, but inhouse writers have been adopted by institutions from prisons, shopping malls and football teams to London's ritzy Savoy Hotel.
Alain de Botton, author of highbrow best-sellers including The Consolations of Philosophy and How Proust Can Change Your Life ,"is spending a week inside Heathrow's Terminal 5," the airport said on Wednesday.
De Botton began his stint on Tuesday and spends some of the time sitting behind a desk in the departures area,observing and interviewing passengers and staff.
De Botton,39, said airport officials had agreed to give him full access to the terminal and to allow him to write what he likes. The airport hopes the project will give readers a more rounded picture of what goes on behind the scenes.
"My agent and I devised the cockroach test: in other words, I had to be allowed to discuss every last cockroach I might spot at the airport if that's what I felt like doing," he wrote in Wednesday's Evening Standard newspaper.He said airports - so often thought of as places to be endured - were fascinating locations where big global themes including technology, globalisation, consumerism and the environment came to life.
"If you wanted to take a Martian to a single place that best captures everything that is distinctive and particular to mod-ern civilisation, in its highs and lows,you would undoubtedly take them to the airport," said de Botton, whose latest book is The Pleasures and Sorrows of Work.
Overcrowded Heathrow is Europe's busiest airport, but far from the bestloved.
Terminal 5, designed to modernise and expand the airport, opened last year in a blaze of negative publicity. Hundreds of flights were canceled and thousands of pieces of luggage lost after the terminal's high-tech baggage-handling system broke down.
Heathrow chief operating officer Mike Brown conceded that opening the airport up to a writer's scrutiny was "a bold and adventurous step."
De Botton's observations will be col-lected in a book scheduled to be published next month. Some 10,000 copies will be given away free to travellers at Heathrow.
Heathrow says it is the first airport to employ a writer-in-residence, but inhouse writers have been adopted by institutions from prisons, shopping malls and football teams to London's ritzy Savoy Hotel.
TAT turns to short-haul Asian markets to boost arrivals
The Tourism Authority of Thailand (TAT) will focus on short-haul Asian markets to revitalise the tourism industry, which is struggling to meet its target of 14 million international visitors this year.
In the first six months, the country welcomed about 7 million tourists. The industry will record zero growth if the full-year target is achieved.
The Tourism Council of Thailand (TCT) is, however, less optimistic, as it expects only 13.1 million visitors for the year.
Weerasak Kowsurat, chairman of the TAT board, said the agency would have to conduct more marketing and promotional activities in foreign markets to lure tourists back in the remaining months of the year.
The TAT should focus on short-haul Asian markets, which are comparatively easier to promote than are European and other markets. Short-haul markets will also yield faster results, he said, adding that these included Japan, South Korea, China, India and Dubai.
Altogether, about 150,000 Asian tourists could visit Thailand in the final quarter of the year as a result of this increased focus, he added.
TCT chairman Kongkrit Hiranyakit said there were many negative factors, especially the global economic crisis and domestic political instability, which could result in the Kingdom failing to meet the target.
Moreover, a number of international airlines plan to cut their service frequency into Thailand in the fourth quarter, with most of the reduced capacity from Russia, Sweden, Iran and Singapore.
However, airlines from China, the United Arab Emirates and India will increase their flight frequency.
The TAT hopes tourists will return in large numbers in the coming high season from October to March.
Kongkrit said the tourism sector had struggled to recover since the closure of Bangkok's main airports late last year and the abrupt cancellation of the Asean Summit in Pattaya this past April.
Earlier this year, the targeted number of 2009 international visitors was revised downward from 14.8 million to 12 million following the airport closures.
If there is no new political chaos, he believes the tourism sector should recover fully next year.
In the first six months, the country welcomed about 7 million tourists. The industry will record zero growth if the full-year target is achieved.
The Tourism Council of Thailand (TCT) is, however, less optimistic, as it expects only 13.1 million visitors for the year.
Weerasak Kowsurat, chairman of the TAT board, said the agency would have to conduct more marketing and promotional activities in foreign markets to lure tourists back in the remaining months of the year.
The TAT should focus on short-haul Asian markets, which are comparatively easier to promote than are European and other markets. Short-haul markets will also yield faster results, he said, adding that these included Japan, South Korea, China, India and Dubai.
Altogether, about 150,000 Asian tourists could visit Thailand in the final quarter of the year as a result of this increased focus, he added.
TCT chairman Kongkrit Hiranyakit said there were many negative factors, especially the global economic crisis and domestic political instability, which could result in the Kingdom failing to meet the target.
Moreover, a number of international airlines plan to cut their service frequency into Thailand in the fourth quarter, with most of the reduced capacity from Russia, Sweden, Iran and Singapore.
However, airlines from China, the United Arab Emirates and India will increase their flight frequency.
The TAT hopes tourists will return in large numbers in the coming high season from October to March.
Kongkrit said the tourism sector had struggled to recover since the closure of Bangkok's main airports late last year and the abrupt cancellation of the Asean Summit in Pattaya this past April.
Earlier this year, the targeted number of 2009 international visitors was revised downward from 14.8 million to 12 million following the airport closures.
If there is no new political chaos, he believes the tourism sector should recover fully next year.
Wednesday, August 19, 2009
Taxi alternatives take off
Getting to the airport on the outskirts of town used to be a simple proposition - catch a taxi, even if it meant sitting in traffic.
But in recent years the number of options has grown, especially at some of the biggest airports, with direct trains and shared-ride services. The additional options are cheaper and also more reliable, in many cases, if there is a lot of traffic on the highways.
Shared-ride transfers offered by firms like SuperShuttle in the US and Go Airport Shuttle, which operates in North America and Britain, can be more time-consuming than a taxi or limousine ride, but are significantly less expensive. And fast trains - like the Heathrow Express and Gatwick Express in London and AirTrain JFK and AirTrain Newark in the New York area - are less expensive than a taxi and often faster.
These alternative modes of transport are becoming more attractive to business travellers, said Dave Kilduff, managing director of ground transportation consulting for the CWT Solutions Group,because in "this type of economic environment, corporations are turning over every rock to save money."
And services like the Heathrow Express "are not only faster, they're keeping people off the road,they're environmentally friendly," he added.
In the first six months of this year, the number of travellers whose flights ended at Heathrow was down 8.9 per cent from the period a year earlier. But Heathrow Express's share of those passengers rose 1.6 per cent in that period. Similarly,passenger traffic at La Guardia, Kennedy International and Newark Liberty International airports declined 9.4 per cent in the first five months of this year compared with the same period in 2008.
But passenger traffic on the Kennedy and Newark AirTrains was 1.4 per cent higher in the first five months of this year than the same period last year.
William DeCota, director of aviation at the Port Authority of New York and New Jersey, estimates that during peak travel times on weekdays, one-third to one-half of passengers on the Kennedy and Newark trains are business travellers.
Perhaps the biggest attraction is the cost savings. A single on the AirTrain JFK, which picks up travellers at the Howard Beach and Jamaica train and subway stations, costs $5(171 baht).People flying out of Newark can take a New Jersey Transit train from Pennsylvania Station in Manhattan to Newark Liberty International Airport,where they pick up AirTrain Newark;the one-way fare for the trip is $15.
By contrast, a one-way cab ride from midtown Manhattan to Kennedy Airport is $45, plus tolls and tip, while a oneway taxi ride from the midtown area to Newark can go as high as $90, plus tolls and tip. Depending on traffic, an AirTrain transfer can also be quicker than a cab.
Kenneth Lin, a senior planning manager in New York for Parsons Brinckerhoff, consultants to the Port Authority on construction of the AirTrain JFK, says he's a fan of public transport,including AirTrain JFK."It's cheaper than a taxi and more reliable during rush hour. It reduces stress, as it is less idiosyncratic than taxis, and it usually arrives on time."
The Heathrow and Gatwick rail links - both of which have economy and first-class cars - offer significant time savings: the Gatwick Express travels to Victoria Station in 30 minutes, while the Heathrow Express takes only 15 minutes to get to Paddington Station. During rush hour, those journeys could take triple the time in a taxi. A return economyclass fare on the former costs ฃ28.80 (1,604 baht) and a return first-class fare,ฃ48. The economy fare on the latter is ฃ32 return, with ฃ50 for first-class return.
Money saved by using these trains is also significant: During rush hour, a cab ride from Heathrow to Paddington can cost as much as ฃ80, without a tip, while one from Gatwick to Victoria Station can cost as much as ฃ90 without a tip.
To lure business travellers, Heathrow Express has installed Wi-Fi and mobile phone service; Gatwick Express offers mobile phone service and refreshments.
The two top providers of shared-ride service are SuperShuttle, which is owned by Veolia Transportation and serves 33 airports in 26 markets in the US, and Go Airport Shuttle, a group of franchised operators that serve 80 airports in 36 cities in the US plus Toronto and London.
Both companies set a 15- to 20-minute window of time for collecting people from their homes, offices or hotels.Passengers travel to the airport in a van with others picked up along the way.
A taxi ride may be faster, but will certainly be more expensive. A one-way SuperShuttle ride to La Guardia from the Waldorf-Astoria hotel in midtown Manhattan is $14.15, and slightly higher from a Manhattan home or office.SuperShuttle typically requires a pickup three hours before a flight departure.
ShuttleFare.com, a web site that lets travellers book many types of airport transfers, including those offered by SuperShuttle and Go, recently introduced a corporate discount programme that waives its normal $4 service fee per booking, and discounts fares by seven per cent.
Matthew Holdrege, director o f international sales for Strix Systems, a wireless broadband manufacturer in Newbury Parks, California, said he found train transfers particularly attractive "as long as you travel light." But, he added,"If I'm travelling with my wife, who can have a lot of luggage, she may prefer the princess treatment. So forget about public transportation."
But in recent years the number of options has grown, especially at some of the biggest airports, with direct trains and shared-ride services. The additional options are cheaper and also more reliable, in many cases, if there is a lot of traffic on the highways.
Shared-ride transfers offered by firms like SuperShuttle in the US and Go Airport Shuttle, which operates in North America and Britain, can be more time-consuming than a taxi or limousine ride, but are significantly less expensive. And fast trains - like the Heathrow Express and Gatwick Express in London and AirTrain JFK and AirTrain Newark in the New York area - are less expensive than a taxi and often faster.
These alternative modes of transport are becoming more attractive to business travellers, said Dave Kilduff, managing director of ground transportation consulting for the CWT Solutions Group,because in "this type of economic environment, corporations are turning over every rock to save money."
And services like the Heathrow Express "are not only faster, they're keeping people off the road,they're environmentally friendly," he added.
In the first six months of this year, the number of travellers whose flights ended at Heathrow was down 8.9 per cent from the period a year earlier. But Heathrow Express's share of those passengers rose 1.6 per cent in that period. Similarly,passenger traffic at La Guardia, Kennedy International and Newark Liberty International airports declined 9.4 per cent in the first five months of this year compared with the same period in 2008.
But passenger traffic on the Kennedy and Newark AirTrains was 1.4 per cent higher in the first five months of this year than the same period last year.
William DeCota, director of aviation at the Port Authority of New York and New Jersey, estimates that during peak travel times on weekdays, one-third to one-half of passengers on the Kennedy and Newark trains are business travellers.
Perhaps the biggest attraction is the cost savings. A single on the AirTrain JFK, which picks up travellers at the Howard Beach and Jamaica train and subway stations, costs $5(171 baht).People flying out of Newark can take a New Jersey Transit train from Pennsylvania Station in Manhattan to Newark Liberty International Airport,where they pick up AirTrain Newark;the one-way fare for the trip is $15.
By contrast, a one-way cab ride from midtown Manhattan to Kennedy Airport is $45, plus tolls and tip, while a oneway taxi ride from the midtown area to Newark can go as high as $90, plus tolls and tip. Depending on traffic, an AirTrain transfer can also be quicker than a cab.
Kenneth Lin, a senior planning manager in New York for Parsons Brinckerhoff, consultants to the Port Authority on construction of the AirTrain JFK, says he's a fan of public transport,including AirTrain JFK."It's cheaper than a taxi and more reliable during rush hour. It reduces stress, as it is less idiosyncratic than taxis, and it usually arrives on time."
The Heathrow and Gatwick rail links - both of which have economy and first-class cars - offer significant time savings: the Gatwick Express travels to Victoria Station in 30 minutes, while the Heathrow Express takes only 15 minutes to get to Paddington Station. During rush hour, those journeys could take triple the time in a taxi. A return economyclass fare on the former costs ฃ28.80 (1,604 baht) and a return first-class fare,ฃ48. The economy fare on the latter is ฃ32 return, with ฃ50 for first-class return.
Money saved by using these trains is also significant: During rush hour, a cab ride from Heathrow to Paddington can cost as much as ฃ80, without a tip, while one from Gatwick to Victoria Station can cost as much as ฃ90 without a tip.
To lure business travellers, Heathrow Express has installed Wi-Fi and mobile phone service; Gatwick Express offers mobile phone service and refreshments.
The two top providers of shared-ride service are SuperShuttle, which is owned by Veolia Transportation and serves 33 airports in 26 markets in the US, and Go Airport Shuttle, a group of franchised operators that serve 80 airports in 36 cities in the US plus Toronto and London.
Both companies set a 15- to 20-minute window of time for collecting people from their homes, offices or hotels.Passengers travel to the airport in a van with others picked up along the way.
A taxi ride may be faster, but will certainly be more expensive. A one-way SuperShuttle ride to La Guardia from the Waldorf-Astoria hotel in midtown Manhattan is $14.15, and slightly higher from a Manhattan home or office.SuperShuttle typically requires a pickup three hours before a flight departure.
ShuttleFare.com, a web site that lets travellers book many types of airport transfers, including those offered by SuperShuttle and Go, recently introduced a corporate discount programme that waives its normal $4 service fee per booking, and discounts fares by seven per cent.
Matthew Holdrege, director o f international sales for Strix Systems, a wireless broadband manufacturer in Newbury Parks, California, said he found train transfers particularly attractive "as long as you travel light." But, he added,"If I'm travelling with my wife, who can have a lot of luggage, she may prefer the princess treatment. So forget about public transportation."
ID, air tickets must match
Airline passengers are asked to remove their shoes, shrink their toiletries and submit to full-body scans. Now one more thing must be inspected: their middle initials.In an effort to beef up security, the job of matching passengers'names against terrorist watch lists is being transferred from commercial airlines to the Transportation Security Administration. The US government initiative, known as Secure Flight, seeks to reduce the number of times passengers are wrongly identified as possible terrorists,in part by standardising how names are matched, but also by now including age and gender in a passenger's profile.
In the first phase, which was instituted earlier this year, the security agency asked airlines to begin collecting passenger names as they appear exactly, letter for letter, on government-issued IDs like passports and driver's licences. The second phase, effective from August 15,requests airlines to ask passengers for their gender and date of birth.
In theory, the new rules are designed to help the Transportation Security Administration distinguish between a John X Doe, a nineyear-old boy, and a John Z Doe, who is a 34-year-old man on a terrorist list.
But the new rules are also creating a lot of confusion, and a lot of misinformation is spreading among travellers. In particular, the new name requirement is causing some passengers to worry that they will be barred from flying. For example, if a plane ticket reads "Pat Jones"instead of "Patricia X Jones"- as it appears on her passport - will she be barred? Or what if someone goes by a middle name? Or what if the middle initial was mistyped?
In an effort to clear things up, here are answers to some common concerns.
Will I be turned away at the airport if my passport reads "Jonathan M Smith" but my reservation is under "Jon Smith"?
Transportation Security Administration officials say no. Under Secure Flight, the security agency checks a person's name against the terrorist watch list shortly after a reservation is made, and usually well before someone gets to the airport and a boarding pass is printed, said Paul Leyh, the programme director of Secure Flight.Once a person is cleared, Leyh added, Secure Flight gives the airline permission to issue that passenger a boarding pass.
In other words, anyone with a boarding pass has already cleared Secure Flight.
What if someone prefers to go by his or her middle name, or some other variation from the name printed on their government-issued ID? Do they have to change their ID now?
The security agency is not asking passengers to change their IDs.What passengers are being asked to do is to travel under the name that is on the government ID.
Slight differences should not be an issue, but the Transportation Security Administration says that providing all the information
accurately (name just as it appears on the ID, date of birth and "In theory, the new
gender) will reduce delays and misidentifications by more than rules are designed to
99 per cent. To keep things consistent, you might consider help the
changing the name on your Transportation
driver's licence to match your passport, unless you always carry Security
a passport as your governmentissued ID for all of your travel,Administration
domestic and international.
But I heard you can be turned distinguish between a
away by security if your name John X Doe, a nin-
doesn't match your ID. Is that true?year-old boy, and a
Yes, but that is already the case and it has nothing to do with John Z Doe, who is a
Secure Flight. The agents at the 34-year-old man on a
security gate already check that the name on your boarding pass terrorist list."
matches your identification. If there are significant differences (for example, if your passport says "Michelle Rose Higgins," but you hate your first name, so your boarding pass reads "Rose Higgins"),you may be delayed for additional screening.
But Transportation Security Administration says that isn't because of Secure Flight. As before, whether you are allowed through will ultimately be left to the security agent's discretion, so being courteous might not be a bad idea.
To help cut down on the confusion, the agency is offering a video explaining Secure Flight on its home page, www.tsa.gov, and its own list of frequently asked questions.
What about children who don't have an ID card or a passport?Though children need a passport to travel internationally, the Transportation Security Administration does not require minors (17 and under) to present a photo ID to pass through security. Agents may ask the minor or accompanying adult to state the individual's full name and date of birth instead. While an ID may help the minor avoid secondary screening, it is not mandatory.
Will Secure Flight affect my frequent flier programmes?It may. As Mike Weingart, president of Travel Leaders, a travel agency based in Houston, explained,"If I'm Michael Nat Weingart on my passport, Michael N Weingart on my driver's licence and Mike Weingart on my frequent flier programme, it won't work." To receive mileage credits, he said, the names must match, so he is advising clients to make sure all their travel profiles and IDs agree.
As a pre-emptive step, passengers with different names on their frequent flier accounts should change them to match their IDs.Airlines often require a fax or a letter to make that request. Meanwhile,keep your boarding passes in case you need to submit a request for miles retroactively.
What if I'm mistakenly identified as someone on the terrorist watch list?
You can apply for a redress number through the Traveller Redress Inquiry Programme of the US Department of Homeland Security;you will be required to provide additional verification to clear your identity. Under Secure Flight, passengers can enter their redress numbers at the time of booking to distinguish themselves from people on the list.
Why isn't my airline asking for my full name, gender or birth date yet?
The Transportation Security Administration set August 15 as a target date for the airlines to begin compliance, but many airlines and travel agencies are still updating their reservation systems to accept the new information. So instead of a hard deadline, Secure Flight is being rolled out, airline by airline, over the next year or so.
All US domestic airlines are expected to be in compliance by the first quarter of 2010 and international carriers by the end of 2010. Of the larger airlines, Delta was expected to be ready as of last weekend,Southwest by October 1, and American some time this autumn.Some smaller carriers, like Allegiant Air based in Las Vegas, are already collecting full passenger names, gender and birth dates.
So for now, what will be the biggest change?For most passengers, nothing, except having to provide your birth date and gender when booking a flight.
In the first phase, which was instituted earlier this year, the security agency asked airlines to begin collecting passenger names as they appear exactly, letter for letter, on government-issued IDs like passports and driver's licences. The second phase, effective from August 15,requests airlines to ask passengers for their gender and date of birth.
In theory, the new rules are designed to help the Transportation Security Administration distinguish between a John X Doe, a nineyear-old boy, and a John Z Doe, who is a 34-year-old man on a terrorist list.
But the new rules are also creating a lot of confusion, and a lot of misinformation is spreading among travellers. In particular, the new name requirement is causing some passengers to worry that they will be barred from flying. For example, if a plane ticket reads "Pat Jones"instead of "Patricia X Jones"- as it appears on her passport - will she be barred? Or what if someone goes by a middle name? Or what if the middle initial was mistyped?
In an effort to clear things up, here are answers to some common concerns.
Will I be turned away at the airport if my passport reads "Jonathan M Smith" but my reservation is under "Jon Smith"?
Transportation Security Administration officials say no. Under Secure Flight, the security agency checks a person's name against the terrorist watch list shortly after a reservation is made, and usually well before someone gets to the airport and a boarding pass is printed, said Paul Leyh, the programme director of Secure Flight.Once a person is cleared, Leyh added, Secure Flight gives the airline permission to issue that passenger a boarding pass.
In other words, anyone with a boarding pass has already cleared Secure Flight.
What if someone prefers to go by his or her middle name, or some other variation from the name printed on their government-issued ID? Do they have to change their ID now?
The security agency is not asking passengers to change their IDs.What passengers are being asked to do is to travel under the name that is on the government ID.
Slight differences should not be an issue, but the Transportation Security Administration says that providing all the information
accurately (name just as it appears on the ID, date of birth and "In theory, the new
gender) will reduce delays and misidentifications by more than rules are designed to
99 per cent. To keep things consistent, you might consider help the
changing the name on your Transportation
driver's licence to match your passport, unless you always carry Security
a passport as your governmentissued ID for all of your travel,Administration
domestic and international.
But I heard you can be turned distinguish between a
away by security if your name John X Doe, a nin-
doesn't match your ID. Is that true?year-old boy, and a
Yes, but that is already the case and it has nothing to do with John Z Doe, who is a
Secure Flight. The agents at the 34-year-old man on a
security gate already check that the name on your boarding pass terrorist list."
matches your identification. If there are significant differences (for example, if your passport says "Michelle Rose Higgins," but you hate your first name, so your boarding pass reads "Rose Higgins"),you may be delayed for additional screening.
But Transportation Security Administration says that isn't because of Secure Flight. As before, whether you are allowed through will ultimately be left to the security agent's discretion, so being courteous might not be a bad idea.
To help cut down on the confusion, the agency is offering a video explaining Secure Flight on its home page, www.tsa.gov, and its own list of frequently asked questions.
What about children who don't have an ID card or a passport?Though children need a passport to travel internationally, the Transportation Security Administration does not require minors (17 and under) to present a photo ID to pass through security. Agents may ask the minor or accompanying adult to state the individual's full name and date of birth instead. While an ID may help the minor avoid secondary screening, it is not mandatory.
Will Secure Flight affect my frequent flier programmes?It may. As Mike Weingart, president of Travel Leaders, a travel agency based in Houston, explained,"If I'm Michael Nat Weingart on my passport, Michael N Weingart on my driver's licence and Mike Weingart on my frequent flier programme, it won't work." To receive mileage credits, he said, the names must match, so he is advising clients to make sure all their travel profiles and IDs agree.
As a pre-emptive step, passengers with different names on their frequent flier accounts should change them to match their IDs.Airlines often require a fax or a letter to make that request. Meanwhile,keep your boarding passes in case you need to submit a request for miles retroactively.
What if I'm mistakenly identified as someone on the terrorist watch list?
You can apply for a redress number through the Traveller Redress Inquiry Programme of the US Department of Homeland Security;you will be required to provide additional verification to clear your identity. Under Secure Flight, passengers can enter their redress numbers at the time of booking to distinguish themselves from people on the list.
Why isn't my airline asking for my full name, gender or birth date yet?
The Transportation Security Administration set August 15 as a target date for the airlines to begin compliance, but many airlines and travel agencies are still updating their reservation systems to accept the new information. So instead of a hard deadline, Secure Flight is being rolled out, airline by airline, over the next year or so.
All US domestic airlines are expected to be in compliance by the first quarter of 2010 and international carriers by the end of 2010. Of the larger airlines, Delta was expected to be ready as of last weekend,Southwest by October 1, and American some time this autumn.Some smaller carriers, like Allegiant Air based in Las Vegas, are already collecting full passenger names, gender and birth dates.
So for now, what will be the biggest change?For most passengers, nothing, except having to provide your birth date and gender when booking a flight.
Air France-KLM abandons CSA bid
Air France-KLM pulled out of the bidding for state-owned Czech Airlines (CSA) yesterday, citing the impact of the economic environment on the airline business.
Europe's biggest carrier said economic circumstances meant CSA could focus instead on trying to restore its profitability on its own through a recovery plan.
"In this context Air France-KLMwishes to further strengthen the existing partnership between the two groups and to continue to explore with CSA any new areas of co-operation that could be of mutual benefit to each company," it said in a statement.
In April, the Czech Finance Ministry had picked Air France-KLM and a consortium of Czech companies Unimex and Travel Service as second-round bidders for CSA.
Analysts said the sale could be worth around five billion czech crowns ($276 million).
In June, the ministry extended the deadline for binding bids to Sept 15 from July 13 to give more time for due diligence.
Europe's biggest carrier said economic circumstances meant CSA could focus instead on trying to restore its profitability on its own through a recovery plan.
"In this context Air France-KLMwishes to further strengthen the existing partnership between the two groups and to continue to explore with CSA any new areas of co-operation that could be of mutual benefit to each company," it said in a statement.
In April, the Czech Finance Ministry had picked Air France-KLM and a consortium of Czech companies Unimex and Travel Service as second-round bidders for CSA.
Analysts said the sale could be worth around five billion czech crowns ($276 million).
In June, the ministry extended the deadline for binding bids to Sept 15 from July 13 to give more time for due diligence.
Qantas cuts costs to counter slump
The Australian flag-carrier Qantas yesterday posted an 88% drop in annual net profit to US$96.6 million and unveiled a massive cost-cutting plan to counter the financial beating.
The carrier, which also recorded its first half-year loss in six years, blamed the worse-than-expected result on weaker domestic and international demand for travel during the global financial crisis.
In response, the airline vowed to slash US$1.24 billion of expenditure over the next three years in a bid to boost its ailing bottom line, but was unable to say whether it would remain profitable over the next year.
"There has never been a more volatile and challenging time for the world's aviation industry," Qantas chief executive Alan Joyce said.
Qantas posted a net profit after tax of A$117 million (US$96.6 million) for the year to June 30, down 88% from $969 million a year earlier. It lost $93 million in the six months to June.
Joyce said the financial year fell into two contrasting halves - the first showing a generally favourable operating environment and strong demand but the second marred by lower passenger numbers and capacity cuts.
The airline said weakening demand for travel led to a 4.3% decline in yield and a 1.1% drop in passenger load, or seats filled, to 79.6%, forcing the group to cut capacity by 1.9%.
The effects of the economic crisis were compounded by protracted industrial action by Qantas engineers, the H1N1 flu outbreak and costs associated with the firm's introduction of new Airbus A380 superjumbo aircraft.
The airline said it would cut costs by A$1.5 billion over the next three years,starting with a target of $500 million in the year to June 2010.
The cost-slashing exercise, dubbed "Q Future," would target inefficiencies in sales, fuel conservation, aircraft use,scheduling and procurement, Joyce said.
"We are also keeping a close watch on oil and fuel prices," he said.
The airline said that while passenger volumes appeared to have improved and yields had stabilised at the same level as in the first half of 2009, the economy remained very volatile, making it difficult to foresee future results."Given the high level of uncertainty, it is not possible to provide any profit guidance," Joyce said.
Qantas's budget offshoot, Jetstar,helped prop up the results of the group that controls two-thirds of the Australian market.
Jetstar grew its flight network, which includes services to Japan, and increased capacity by 14.4% in a deteriorating market, with Joyce predicting more growth to come.
"Investment in Jetstar over the next 12 months, and beyond, will be significant," Joyce said, heralding the purchase of new Airbus A320 and A330-200 planes for use domestically and to Singapore and New Zealand.
The carrier, which also recorded its first half-year loss in six years, blamed the worse-than-expected result on weaker domestic and international demand for travel during the global financial crisis.
In response, the airline vowed to slash US$1.24 billion of expenditure over the next three years in a bid to boost its ailing bottom line, but was unable to say whether it would remain profitable over the next year.
"There has never been a more volatile and challenging time for the world's aviation industry," Qantas chief executive Alan Joyce said.
Qantas posted a net profit after tax of A$117 million (US$96.6 million) for the year to June 30, down 88% from $969 million a year earlier. It lost $93 million in the six months to June.
Joyce said the financial year fell into two contrasting halves - the first showing a generally favourable operating environment and strong demand but the second marred by lower passenger numbers and capacity cuts.
The airline said weakening demand for travel led to a 4.3% decline in yield and a 1.1% drop in passenger load, or seats filled, to 79.6%, forcing the group to cut capacity by 1.9%.
The effects of the economic crisis were compounded by protracted industrial action by Qantas engineers, the H1N1 flu outbreak and costs associated with the firm's introduction of new Airbus A380 superjumbo aircraft.
The airline said it would cut costs by A$1.5 billion over the next three years,starting with a target of $500 million in the year to June 2010.
The cost-slashing exercise, dubbed "Q Future," would target inefficiencies in sales, fuel conservation, aircraft use,scheduling and procurement, Joyce said.
"We are also keeping a close watch on oil and fuel prices," he said.
The airline said that while passenger volumes appeared to have improved and yields had stabilised at the same level as in the first half of 2009, the economy remained very volatile, making it difficult to foresee future results."Given the high level of uncertainty, it is not possible to provide any profit guidance," Joyce said.
Qantas's budget offshoot, Jetstar,helped prop up the results of the group that controls two-thirds of the Australian market.
Jetstar grew its flight network, which includes services to Japan, and increased capacity by 14.4% in a deteriorating market, with Joyce predicting more growth to come.
"Investment in Jetstar over the next 12 months, and beyond, will be significant," Joyce said, heralding the purchase of new Airbus A320 and A330-200 planes for use domestically and to Singapore and New Zealand.
Air traffic decline eases
Air traffic through Thailand's six key airports including Suvarnabhumi in July showed the smallest contraction so far this year, indicating that the traffic slump may have bottomed out and recovery is on the horizon.
Passenger throughput declined 6.26%year-on-year to 4.33 million with flight volumes contracting only 1.91% to 29,449 and cargo tonnage down 16.52% to 94,569, according to figures from Airports of Thailand Plc (AoT).
AoT president Serirat Prasutanond said Thailand's improved political situation, easing of the global recession and the public's receding concern over H1N1 flu had helped slow the contraction.
February was the worst month this year with a 20.55% contraction. May saw the second-worst decline, of 17%,reflecting fallout from the Songkran political riots in April.
For the first seven months of this year, passenger throughput was down 14.5% over the same period last year to 29.91 million, cargo tonnage was down 25.6% to 597,582 and flight movements were down 12.3% to 205,642.
However, international passenger traffic in July continued to show doubledigit downward movement as many tourists shied away from Thailand due to the recession, concerns about domestic politics and H1N1.
Overall international passenger traffic in the first seven months shrank 17.5%to 18.23 million.
Domestic passenger traffic turned positive for the first time in July with a 5.9% growth, thanks to heavy promotion of domestic tourism by the government and the travel industry.
From January to July, domestic passenger traffic was down 9.3% year-onyear to 11.67 million.
Mr Serirat said high-season air travel in the fourth quarter should lift volume and arrest the fall.
AoT's best-case scenario for the year,however, is for passenger traffic to equal last year's level of 54.04 million. The worst case is a 10% fall.
Passenger throughput declined 6.26%year-on-year to 4.33 million with flight volumes contracting only 1.91% to 29,449 and cargo tonnage down 16.52% to 94,569, according to figures from Airports of Thailand Plc (AoT).
AoT president Serirat Prasutanond said Thailand's improved political situation, easing of the global recession and the public's receding concern over H1N1 flu had helped slow the contraction.
February was the worst month this year with a 20.55% contraction. May saw the second-worst decline, of 17%,reflecting fallout from the Songkran political riots in April.
For the first seven months of this year, passenger throughput was down 14.5% over the same period last year to 29.91 million, cargo tonnage was down 25.6% to 597,582 and flight movements were down 12.3% to 205,642.
However, international passenger traffic in July continued to show doubledigit downward movement as many tourists shied away from Thailand due to the recession, concerns about domestic politics and H1N1.
Overall international passenger traffic in the first seven months shrank 17.5%to 18.23 million.
Domestic passenger traffic turned positive for the first time in July with a 5.9% growth, thanks to heavy promotion of domestic tourism by the government and the travel industry.
From January to July, domestic passenger traffic was down 9.3% year-onyear to 11.67 million.
Mr Serirat said high-season air travel in the fourth quarter should lift volume and arrest the fall.
AoT's best-case scenario for the year,however, is for passenger traffic to equal last year's level of 54.04 million. The worst case is a 10% fall.
Thai AirAsia sees losses fall by 80%
The no-frills carrier Thai AirAsia saw its losses narrow by 81.84% in the second quarter to 81 million baht from 446 million in the same period last year.
The airline, part of Asia's largest low-cost carrier, attributed the secondquarter loss to the impact of Bangkok's April riots and the H1N1 outbreak which sharply reduced air travel demand.
Without those negative factors, Thai AirAsia should have turned a profit in the April-June period, the airline's chief executive Tassapon Bijleveld told the Bangkok Post yesterday.Tony Fernandes, chief executive of AirAsia Group, said in a statement that Thai AirAsia had performed well by containing losses, despite weakened consumer sentiment caused by the domestic political situation and the second quarter being a seasonally weak period for Thailand.
Thai AirAsia -51% Thai-owned with 49% held by Malaysia-listed AirAsia Bhd - saw its second-quarter revenue slip by 2% year-on-year to 2.02 billion baht, due partly to the 15% decline in the average fare.
The airline carried 10% more passengers in the second quarter with a 69% load factor. As of June, it operated a 17-strong fleet.
Thai AirAsia made a net profit of 217 million baht in the first quarter,and after subtracting the secondquarter loss, the airline still made a 136-million-baht profit in the first half of the year, said Mr Tassapon.
He said he remained upbeat about the the airline's operations this year.
"We will definitely make a profit, in the range of 800 million baht to one billion baht, for the whole of 2009,"said Mr Tassapon.
That would be a major turnaround from last year when Thai AirAsia recorded massive losses, largely due to the spike in oil prices, which caused most airlines around the world to post huge losses.
Mr Fernandes echoed the view, saying the outlook for Thai AirAsia is positive with satisfactory passenger growth expected. The airline has also captured a significant market share while competitors are scaling back capacities and cancelling flights, he said.
The Thai operation is also enjoying the cost benefits of using the more fuel-efficient Airbus A320 aircraft. It recently increased the number in its fleet to nine.
AirAsia as a group posted sharply higher earnings in the second quarter as dwindling demand for full-service carriers amid the economic downturn boosted budget airlines.
The group made a net profit of 139.2 million ringgit (1.33 billion baht) in the April-June quarter against 9.4 million ringgit a year earlier.
The airline recorded a seat load factor at 75% during the quarter, a fivepercentage-point increase over its first quarter performance.
The airline, part of Asia's largest low-cost carrier, attributed the secondquarter loss to the impact of Bangkok's April riots and the H1N1 outbreak which sharply reduced air travel demand.
Without those negative factors, Thai AirAsia should have turned a profit in the April-June period, the airline's chief executive Tassapon Bijleveld told the Bangkok Post yesterday.Tony Fernandes, chief executive of AirAsia Group, said in a statement that Thai AirAsia had performed well by containing losses, despite weakened consumer sentiment caused by the domestic political situation and the second quarter being a seasonally weak period for Thailand.
Thai AirAsia -51% Thai-owned with 49% held by Malaysia-listed AirAsia Bhd - saw its second-quarter revenue slip by 2% year-on-year to 2.02 billion baht, due partly to the 15% decline in the average fare.
The airline carried 10% more passengers in the second quarter with a 69% load factor. As of June, it operated a 17-strong fleet.
Thai AirAsia made a net profit of 217 million baht in the first quarter,and after subtracting the secondquarter loss, the airline still made a 136-million-baht profit in the first half of the year, said Mr Tassapon.
He said he remained upbeat about the the airline's operations this year.
"We will definitely make a profit, in the range of 800 million baht to one billion baht, for the whole of 2009,"said Mr Tassapon.
That would be a major turnaround from last year when Thai AirAsia recorded massive losses, largely due to the spike in oil prices, which caused most airlines around the world to post huge losses.
Mr Fernandes echoed the view, saying the outlook for Thai AirAsia is positive with satisfactory passenger growth expected. The airline has also captured a significant market share while competitors are scaling back capacities and cancelling flights, he said.
The Thai operation is also enjoying the cost benefits of using the more fuel-efficient Airbus A320 aircraft. It recently increased the number in its fleet to nine.
AirAsia as a group posted sharply higher earnings in the second quarter as dwindling demand for full-service carriers amid the economic downturn boosted budget airlines.
The group made a net profit of 139.2 million ringgit (1.33 billion baht) in the April-June quarter against 9.4 million ringgit a year earlier.
The airline recorded a seat load factor at 75% during the quarter, a fivepercentage-point increase over its first quarter performance.
Monday, August 17, 2009
AoT enlists support to tackle airport woes
Airports of Thailand Plc is calling on state security agencies to draw up new measures to deal with problems at Suvarnabhumi airport including baggage theft and alleged extortion of tourists.
AoT president Serirat Prasutanond said the agencies were expected to come up with their proposals and submit them to AoT executives on Thursday.
Mr Serirat yesterday met representatives from the police, customs and King Power, the operator of the dutyfree complex at the airport, to discuss the problems dogging Suvarnabhumi.
The meeting came on the heels of Prime Minister Abhisit Vejjajiva's visit to the airport on Saturday to gather information first-hand on the troubles plaguing the airport.
Foreign media outlets have reported in recent weeks on a number of foreign travellers being accused of shoplifting at the airport and held by police until they paid a bribe to secure their freedom.
The airport is under the jurisdiction of Rachathewa police station.
It was also reported tourists claimed to have been fined for breaking customs regulations for possessing more than one carton of cigarettes or one bottle of liquor.
Mr Serirat said the proposed new guidelines would be forwarded to the Transport Ministry and the prime minister for approval.
Mr Serirat said signs would probably be put up telling tourists when they are leaving the duty-free area and warning them to pay up for all items before leaving to avoid being arrested for shoplifting.
He said a police office on the third floor would berenovated and equipped with the tools needed to facilitate police work so suspects would not have to leave the airport.
Niran Thiranartsin, the airport director, said passengers were regularly fined for possessing more than the permitted amount of cigarettes and alcohol.
In most cases, the cigarettes and alcohol were not purchased at the airport.
Fines could be imposed if passengers were found in possession of more than the permitted amount.
Mr Niran said customs and revenue authorities would have to come up with better regulations to deal with such cases.
Pratheep Vijitho, the airport's deputy director for operations, said the two contracted operators handling passenger luggage at the airport would be required to employ better measures to prevent luggage thefts.
The two are Thai Airways International and Bangkok Flight Services Co.
More security cameras will be installed in the sorting area.
He said the measures were expected to take effect on Sept 1.
AoT president Serirat Prasutanond said the agencies were expected to come up with their proposals and submit them to AoT executives on Thursday.
Mr Serirat yesterday met representatives from the police, customs and King Power, the operator of the dutyfree complex at the airport, to discuss the problems dogging Suvarnabhumi.
The meeting came on the heels of Prime Minister Abhisit Vejjajiva's visit to the airport on Saturday to gather information first-hand on the troubles plaguing the airport.
Foreign media outlets have reported in recent weeks on a number of foreign travellers being accused of shoplifting at the airport and held by police until they paid a bribe to secure their freedom.
The airport is under the jurisdiction of Rachathewa police station.
It was also reported tourists claimed to have been fined for breaking customs regulations for possessing more than one carton of cigarettes or one bottle of liquor.
Mr Serirat said the proposed new guidelines would be forwarded to the Transport Ministry and the prime minister for approval.
Mr Serirat said signs would probably be put up telling tourists when they are leaving the duty-free area and warning them to pay up for all items before leaving to avoid being arrested for shoplifting.
He said a police office on the third floor would berenovated and equipped with the tools needed to facilitate police work so suspects would not have to leave the airport.
Niran Thiranartsin, the airport director, said passengers were regularly fined for possessing more than the permitted amount of cigarettes and alcohol.
In most cases, the cigarettes and alcohol were not purchased at the airport.
Fines could be imposed if passengers were found in possession of more than the permitted amount.
Mr Niran said customs and revenue authorities would have to come up with better regulations to deal with such cases.
Pratheep Vijitho, the airport's deputy director for operations, said the two contracted operators handling passenger luggage at the airport would be required to employ better measures to prevent luggage thefts.
The two are Thai Airways International and Bangkok Flight Services Co.
More security cameras will be installed in the sorting area.
He said the measures were expected to take effect on Sept 1.
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