oneworld news

[Pieter C. 5]

British Airways Crew Start New 5-Day Strike

 

June 5, 2010

 

British Airways cabin crew started their latest five-day strike on Saturday in a long-running dispute which has so far cost the airline about GBP£120 million (USD$176 million).

 

The strikes stem from BA's decision last November to cut cabin crew pay and alter staffing levels on its flights.

 

BA chief executive Willie Walsh and leaders of the Unite union, which represents cabin staff, blame each other for a breakdown in communication.

 

BA is trying to reach a deal with Unite which will save GBP£62.5 million a year to counter falling demand, volatile fuel prices and greater competition.

 

Unite said on Friday no talks to avert the strike were planned, while BA said the conciliation service ACAS was trying to arrange discussions between the two parties.

 

Talks over the past six months have failed to yield a resolution, with the walkouts having caused BA to ground flights on 17 occasions so far.

 

The issue of travel allowances for cabin crew has become a serious sticking point in the conflict, which comes at a difficult time for BA. Last month, the airline announced a full-year loss of GBP£531 million.

 

The latest strike took place less than a week before the start of the football World Cup in South Africa and followed a five-day stoppage which ended on Thursday. There was a four-day walkout last week and seven days of stoppages in March.

 

With the World Cup in mind, BA said this week it would fly a full schedule to South Africa.

 

BA plans to operate 80 percent of long-haul flights and 60 percent of short-haul services from London's Heathrow during the latest strike. Flights from the capital's Gatwick and City airports are unaffected.

 

BA, Europe's third-largest airline, said the total cost of the stoppages could be assessed only at the end of the disruption and would reflect lost bookings offset by some volume driven cost savings.

 

Analysts believe the strikes could put off previously loyal BA customers from flying with it in future.

 

BA carried 11.5 percent fewer passenger in May year-on-year because of the strikes, leaving it lagging rivals such as Air France-KLM, Ryanair and easyJet whose passenger numbers are rising.

 

(Reuters)

 

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JAL Sees Operating Profit In Current Year

 

June 5, 2010

 

Debt-ridden Japan Airlines expects to post a consolidated operating profit for the current fiscal year and has begun talks with key banks, the Nikkei business daily reported.

 

JAL now expects to post a consolidated operating profit of JPY22 billion yen ($237.8 million) for the year ending March 2011, instead of an operating loss of over JPY30 billion expected earlier, the daily said.

 

JAL also expects group operating profit to rise to JPY73 billion in fiscal 2011 and to JPY115 billion the following year, with revenue projected to be flat for the next three years, the paper said.

 

The airline and its trustee, Enterprise Turnaround Initiative Corporation of Japan (ETIC), are looking to draft a rehabilitation plan by the end of the month and expect talks with banks to swing into full gear next week, the report said.

 

On Friday, the airline and ETIC hand delivered the latest outlook to banks such as Development Bank of Japan and Mizuho Corporate Bank, and said it will try to get other business partners on board by July, the Nikkei said.

 

The airline, which filed for bankruptcy under the Corporate Rehabilitation Law, has been under fire from banks and lenders, who have hinted that they would not help the carrier, citing its lack of effort.

 

Under pressure from lenders, JAL had decided to eliminate 16,000 jobs in one year, instead of over three years as initially planned, and also cancel many unprofitable routes. About 45 routes are now to be scrapped this fiscal year, the Nikkei said.

 

(Reuters)

[Pieter C. 5]

Kingfisher becomes oneworld member-elect

 

June 8, 2010

 

Kingfisher Airlines became a member-elect of oneworld after gaining approval from India's Ministry of Civil Aviation and completing a formal membership agreement, the alliance announced yesterday ahead of the IATA AGM in Berlin.

 

The carrier already had passed oneworld's safety audit, the group's first joining requirement, and started developing bilateral cooperation with several member airlines including a codeshare agreement with British Airways. Kingfisher and oneworld reached an MOU in February.

 

"I believe that Kingfisher and oneworld are natural partners," BA CEO Willie Walsh said. "In just five years, Kingfisher Airlines has established itself as one of India's leading airlines. It today carries more domestic passengers than any other single Indian airline [and] offers more daily departures than any of its competitors across the widest network within the subcontinent." He noted that it is "the only airline from the region to be judged five-star by Skytrax." BA is serving as Kingfisher's oneworld sponsor.

 

The alliance also confirmed that S7 Airlines is on track to join formally later this year, but it denied it is engaged in negotiations with Hainan Airlines. To expand its footprint in China further it had set its eyes on China Eastern Airlines, but that carrier opted for SkyTeam. "Of course we are looking for opportunities,"American Airlines Chairman and CEO Gerard Arpey, oneworld's governing board chairman, said. He added, "With Cathay Pacific [Airways] and its Dragonair affiliate and [Japan Airlines'] extensive network into China, we are very well if not the best positioned of all three alliances."

 

He reiterated the group's well-known stance that its focus will continue to be "on the quality rather than the quantity of its members."

[Pieter C. 5]

Union To Ballot BA Crew On Further Action

 

June 9, 2010

 

The union representing British Airways cabin crew said it was to ballot members on further industrial action that could disrupt summer travel, as the last of three five-day strikes neared its end.

 

"There will be another ballot and the outcome of that ballot will determine what we do," Unite's joint leader Derek Simpson told BBC radio on Wednesday. "It (the timing of the ballot) is a matter that is being discussed at the moment."

 

A new vote will take at least six weeks, making mid-July, when British schools start breaking up for summer, the earliest possible date for a new wave of stoppages.

 

BA cabin crew will end their latest five-day strike late on Wednesday. The long-running dispute has cost the airline around GBP£150 million (USD$217 million) so far. Last month, BA posted a record full-year loss of GBP£531 million.

 

The strikes stem from BA's decision last November to cut cabin crew pay and alter staffing levels on flights to save GBP£62.5 million a year in costs.

 

With the cost savings dispute largely resolved, the issue of travel allowances for cabin crew has become the main sticking point in the conflict.

 

Simpson said BA chief executive Willie Walsh had backed himself into a corner on the travel question and was "desperate not to settle".

 

Earlier this week, Walsh said he would hold out against the striking cabin crew "for as long it takes".

 

Conciliation service ACAS said it would set a date for peace talks to resume shortly.

 

The most recent strike followed a five-day stoppage last week and previous walkouts in May and March.

 

BA said it had operated 80 percent of long-haul and 60 percent of short-haul flights from London's Heathrow airport, with services from London City and Gatwick airports unaffected over the latest strike period.

 

(Reuters)

[Pieter C. 5]

Finnair To Order 5 A321s From Airbus

 

June 10, 2010

 

Finnish airline Finnair said on Thursday it will order five new A321ER aircraft from Airbus for European traffic.

 

Finnair said the order would be worth more than EUR€400 million (USD$481.5 million), with the first delivery expected to take place in 2013. It will replace an earlier order for two A330 aircraft planned for 2012-2013.

 

"We have not changed our strategy at all. We still have a focus on Asian and European traffic and will still add capacity in these areas," Finnair's spokesman Christer Haglund told a news conference at the Berlin Air Show.

 

Finnair chief executive Mika Vehvilainen said in late May the firm was looking to Airbus to replace four Boeing 757 aircraft used on leisure flights.

 

The firm said on Wednesday its second-quarter loss would be narrower than expected thanks to improving demand.

 

(Reuters)

 

It says European traffic, however, these 757's are used too to Asian destinations like PEN and SGN, so wonder if these 321's will be used for these vacation-spots too...

[Pieter C. 5]

BA Boss Walsh Turns Down USD$500,000 Bonus

 

June 10, 2010

 

British Airways chief executive Willie Walsh has turned down an annual bonus of GBP£334,000 (USD$490,000), the airline said on Thursday.

 

Walsh, who is embroiled in a long-running dispute with striking cabin crew, turned down the bonus, which would have been paid in shares, because he "felt it appropriate... in light of the circumstances", BA said in its annual report.

 

It is the second year in a row that Walsh, whose annual salary remains at GBP£735,000, has turned down a bonus.

 

Walsh received GBP£674,000 last year after he gave up a month's pay when BA undertook cost saving measures.

 

BA flight attendants, who have walked out on 22 occasions so far this year, ended their latest five-day strike on Wednesday, and may walk out again during the summer.

 

The long-running dispute, which has cost the airline around GBP£150 million so far, stems from its decision last November to cut cabin crew pay and reduce staffing levels on flights to save GBP£62.5 million a year in costs.

 

"There would have been uproar if Walsh had pocketed a bonus this year," the Unite union, which represents BA cabin crew, said in a statement.

 

"There should be no bonus and no mega-pot of shares until BA sorts the cabin crew dispute."

 

Two of BA's top investors on Thursday said they support the airline's refusal to bow to union pressure, despite the prospect of more strikes by cabin crew.

 

(Reuters)

[Pieter C. 5]

JAL To Cut Staff Cost By JPY¥107 Bln In 2010

 

June 11, 2010

 

Debt-ridden Japan Airlines plans to lower its personnel expenses in fiscal 2010 by JPY¥106.8 billion, sooner than expected, the Nikkei business daily reported.

 

JAL reduced its workforce at a faster pace than expected, as some 4,000 workers have already signed up for early retirement, helping it save JPY¥25 billion more than planned at the end of March, the daily said.

 

The company's second round of early retirement solicitations is expected to result in applications from 690 pilots and 1,700 cabin attendants, the paper said.

 

JAL plans to reduce its group workforce by around 16,000.

 

It is projected to reduce its operating expenses by JPY¥358.6 billion from fiscal 2009 to JPY¥1.28 trillion, mainly due to lower personnel costs. Such expenses are poised to slide 28 percent to JPY¥276.3 billion, the daily said.

 

JAL aims for an operating profit in fiscal 2010, even though its sales are likely to slide to JPY¥1.3 trillion, the Nikkei said. The airline may have generated sales of JPY¥1.49 trillion, as it did not file an official earnings statement for fiscal 2009.

 

The company is currently negotiating with its main lenders, hoping to compile a rehabilitation plan before a deadline by end-August, the Nikkei added.

 

(Reuters)

 

EU To Rule On BA, Iberia Merger By July 15

 

June 11, 2010

 

EU competition regulators will decide by July 15 whether to clear or block a planned USD$8 billion merger between British Airways and Spain's Iberia, the European Commission said on Friday.

 

The Commission could also ask the carriers to provide concessions -- such as giving up airport slots -- to ease possible concerns that the deal may dent competition.

 

The airlines aim to complete the merger by December and hope it will enable them to compete better with rivals Lufthansa and Air France-KLM as well as low-cost carrier Ryanair.

 

The Commission, competition watchdog of the 27-country EU, is expected to seek views from customers and rivals on the BA-Iberia merger. It can extend its review by 35 working days if it has concerns or if the two carriers offer concessions.

 

(Reuters)

[Pieter C. 5]

BA To Hire Lower-Paid Cabin Crew Amid Dispute

 

June 24, 2010

 

British Airways said it planned to recruit over one thousand new cabin crew on lower wages than current staff as it faces possible further strikes by existing flight attendants in August.

 

The Unite union, which represents 90 percent of BA's 12,000 cabin staff, criticised the move which would do nothing to end a bitter dispute which has resulted in a series of walkouts.

 

BA will recruit 1,250 new crew members this year and forecast that in 10 years, staff on the new terms will make up 40 percent of cabin staff.

 

The airline said it was making the move in light of the losses it has posted over the past two years.

 

"We have suffered back-to-back record financial losses and need to continue making permanent changes to our cost base to ensure our long-term survival," BA said on Thursday.

 

Existing cabin crew on short-haul flights from Heathrow earn an annual salary of GBP£25,700 (USD$38,490) while crew on long-haul flights from Heathrow earn GBP£35,000 on average. Those on short-haul routes out of Gatwick earn GBP£18,300.

 

A BA spokesman said the new recruits would work on both short- and long-haul flights and earn a salary "similar to current Gatwick crew."

 

"Our Heathrow cabin crew costs are way out of line with our competitors and much more than our cabin crew costs at Gatwick. We can no longer afford this cost difference," he said.

 

THIRD WAVE OF STRIKES

 

The British airline faces a third wave of industrial action, disrupting the peak summer travel season, after Unite said on Tuesday it would hold a fresh ballot of its cabin crew members.

 

Crews have walked out for 22 days so far this year, costing the airline around GBP£150 million (USD$220 million).

 

Unite said the ballot would run from June 29 to July 27, so walkouts could begin on August 3 if voted for.

 

"This will do nothing to persuade cabin crew that BA management is looking to resolve the dispute, and nothing to dissuade our members from voting for further industrial action," said Unite Joint General Secretary Tony Woodley.

 

(Reuters)

[Pieter C. 5]

BA, Union Ready To Resume Talks To Avert Strikes

 

June 25, 2010

 

British Airways and the Unite union said on Friday they were willing to hold talks as early as today to avert the threat of further strike action by cabin crew in a dispute over pay and conditions.

 

Unite, which represents 90 percent of BA's 12,000 cabin crew, planned to start balloting members next Tuesday over possible walkouts beginning on August 3.

 

The union had given BA until the start of the ballot period to demonstrate it was willing to find a solution.

 

A BA spokesman said the airline was "available for talks" and it was a possibility they could take place between now and Tuesday.

 

A Unite spokeswoman responded by saying the union is prepared to engage "as soon as is humanly possible. We are always available for talks at any time and any place. We would very much hope we could be back in talks very soon."

 

The two sides have made headway on pay and crewing levels, but Unite said it wanted the reinstatement of travel allowances removed from striking crew and the withdrawal of all disciplinary action against its members.

 

A third sticking point is BA's use of temporary cabin crew and employees from other areas within the company to staff flights during previous strikes.

 

(Reuters)

[Pieter C. 5]

Union Postpones British Airways Strike Ballot

 

June 28, 2010

 

The Unite union confirmed on Monday it would postpone balloting British Airways cabin crew on further strikes to allow union members to consider the latest offer from the airline's management.

 

Unite said on Sunday it expected to delay the ballot which had been set to start on Tuesday. BA had said it would withdraw its latest offer if the ballot took place.

 

"We have agreed to postpone the strike ballot to allow the offer to be consulted on," a Unite spokeswoman said.

 

The new offer from BA includes two years of guaranteed rises in basic salary from February 2011 in addition to annual incremental pay increases.

 

BA, which has already lost GBP£150 million (USD$226 million) in 2010 from a series of strikes, said it welcomed the union's decision.

 

"We believe our offer is fair and reasonable and provides a genuine opportunity to end this dispute," a spokesman said.

 

(Reuters)

[Pieter C. 5]

Iberia Signs EUR€8 Bln British Airways Merger Deal

 

June 29, 2010

 

Iberia said on Tuesday it had signed an EUR€8 billion (USD$9.8 billion) merger deal with British Airways to create the world's third biggest airline after reaching an agreement over BA's pension deficit.

 

The merger was agreed under the terms announced in April but is still awaiting shareholder approval -- expected in November -- and three months of Iberia's scrutiny of BA's pension fund, which earlier had threatened to scupper the deal.

 

"Iberia has three months from the time the agreement (between BA and the trustees of its pension fund) is lodged with the UK pensions regulator to exercise its right to withdraw from the deal," the Spanish carrier said.

 

The deal comes after European flag carriers were hit by low-cost carriers who took a bite out of their short- and medium-range flights.

 

Last Tuesday, British Airways said it had agreed a recovery plan for its GBP£3.7 billion (USD$5.5 billion) pension deficit, potentially removing a final obstacle to the merger.

 

(Reuters)

[Pieter C. 5]

JAL details Haneda international schedule heavy on late-night departures

 

July 1, 2010

 

Japan Airlines yesterday detailed its schedule for international operations from Tokyo Haneda beginning Oct. 31, explaining that it will use its extensive network of domestic flights to/from the airport to feed passengers to international services and to offer arriving international passengers transport from HND to destinations throughout Japan.

 

Japan's Transport Ministry recently announced that HND would officially begin handling international scheduled flights on Oct. 31 following the opening of its fourth runway and new international passenger terminal on Oct. 21. JAL said it will serve San Francisco, Honolulu, Paris Charles de Gaulle, Bangkok, Singapore and Taipei from the airport. It also will convert current charter flights from HND to Seoul Gimpo, Beijing, Shanghai and Hong Kong into scheduled passenger flights.It will begin selling tickets for HND international services today.

 

"Counting the new international routes and an increase in one daily flight to Gimpo this autumn, JAL will be operating a total of 10 international routes with 13 daily flights," it stated. President and COO Masaru Onishi said, "Haneda Airport is conveniently located in the heart of Tokyo and will be opened round-the-clock, greatly enhancing the convenience of travelers. Furthermore, with JAL's extensive domestic operations at the hub, passengers can make smooth connections from our new international flights to many other destinations in Japan. We intend to fully utilize Haneda's strategic advantages for operations to Europe, America and Asia."

 

JAL added that "late-night flights from Haneda to Europe, America and long-haul Asia will complement existing daytime services at Narita to these regions and greatly expand flight options to meet the demands of business travelers with convenient flight timings." International flights to/from HND will be operated with a mix of 767s and 777s and many will take advantage of the airport's 24-hr. operations to operate at late hours with prime arrival times at destinations. For example, flights to CDG will depart at 1:30 a.m.for a 6:20 a.m.arrival, flights to SFO will depart at 12:05 a.m.for a 4:05 p.m.arrival and service to SIN will depart at 11:50 p.m.for a 6:30 a.m.arrival.

[KC Sim 2]

With Finnair's resumption of services to Singapore, the presence of oneworld at Changi Airport will now include British Airways, Cathay Pacific Airways, Finnair, Japan Airlines and Qantas Airways.

 

Finnair's flights arriving in SIN allows for excellent connection on Qantas Airways to many Australian cities and the late night departure from Singapore also allows for Qantas services from all these Australian cities to provide feed for its return to Helsinki.

 

KC Sim

[Pieter C. 5]

Japanese government considering guaranteeing private loans to JAL

 

July 5, 2010

 

The Japanese government reportedly is considering guaranteeing repayment of private bank loans to bankrupt Japan Airlines.

 

According to Yomiuri Shimbun, Enterprise Turnaround Initiative Corp. of Japan would back the loans in order to enhance the airline's efforts to negotiate with creditor banks ahead of its rehabilitation plan deadline at the end of August.

 

The newspaper reported that Hideo Seto, chairman of the government-backed turnaround body's committee overseeing JAL's bankruptcy restructuring, said last week that ETIC may throw a lifeline to JAL by guaranteeing repayment of about ¥500 billion ($5.7 billion) in loans. Seto told media that "we'll probably reach an agreement by around early August."

 

The state-affiliated Development Bank of Japan and the turnaround body already have arranged a total of ¥650 billion in loans, of which half has been used. However, the government wants to switch JAL's creditors to private banks as soon as possible to rehabilitate the airline with private-sector funds.

 

There are also calls for more route and staff cuts, which JAL warns could ruin its operations. It is further understood that a cancellation of seven 777s listed on Boeing's order book is from JAL.

[Pieter C. 5]

AMR Employee Data Hard Drive Stolen

 

July 5, 2010

 

American Airlines' parent AMR said a hard drive containing personal information on 79,000 retirees, former employees, and current employees has been stolen from the company's pension department.

 

The theft from AMR's headquarters in Fort Worth, Texas, was discovered and reported on June 4 and people who were potentially affected were notified by letters sent out on Friday offering them free one-year credit monitoring service, AMR said.

 

The drive contained data spanning the years 1960-1995. The data include names, addresses, dates of birth and social security numbers. The drive may have contained other data such as health insurance or bank account information, AMR said.

 

No customer information was stolen, the company said.

 

(Reuters)

[Pieter C. 5]

BA June Traffic Hit By Strike Action

 

July 5, 2010

 

British Airways carried 11.1 percent fewer passengers in June compared with the year before, reflecting the impact of walkouts by cabin crew protesting pay and conditions.

 

BA carried 2.57 million passengers last month, down from the 2.93 million in June 2009, while its load factor fell 2.1 percentage points to 77.5 percent.

 

BA said industrial action affected the first nine days of the month. The airline has been hit by a series of strikes organised by the Unite union this year, which have so far cost it GBP£150 million (USD$232 million).

 

The union last week postponed a planned ballot on further strikes to allow union members to consider the latest offer from the airline.

 

BA's group treasurer George Stinnes on Monday said it was positive that cabin crew were being given the chance to vote on the new offer without the union making a recommendation on whether they should accept it.

 

"Unite have said they will give the crew the chance to speak their own mind with respect to the offer that's currently on the table from the company and will offer no recommendation. I certainly think it's positive that staff are being given the chance themselves in a confidential forum to vote," he said.

 

Earlier on Monday, Irish low-cost carrier Ryanair said it carried 15 percent more passengers in June compared with the year before. Its load factor fell by 1 percentage point to 84 percent.

 

(Reuters)

 

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BA Cabin Crew To Vote On New Pay Offer

 

July 6, 2010

 

British Airways cabin crew members are set to vote on whether to accept a revised pay offer from the airline as hopes grow that a resolution to their long-running dispute is in sight.

 

A spokeswoman for the Unite union confirmed ballot papers would be sent out to members on Tuesday and the union would make no recommendation on whether its members should vote for or against accepting the company's proposal in their dispute over pay and conditions.

 

The airline, which has already lost GBP£150 million this year from a series of strikes, welcomed the union's decision not to make a recommendation, which is being seen as a conciliatory move. Unite had urged its members not to accept previous offers from the airline.

 

"Unite have said they will give the crew the chance to speak their own mind with respect to the offer that's currently on the table from the company," BA's group treasurer George Stinnes said. "I certainly think it's positive that staff are being given the chance to express themselves in a confidential ballot."

 

The Unite spokeswoman confirmed the vote was expected to take about two weeks and said the union had yet to decide on whether to pursue further strike action if its members refused the latest offer.

 

"That is not yet under discussion. The priority for the moment is the consultative ballot," she said.

 

The new offer from BA includes two years of guaranteed rises in basic salary from February 2011 in addition to annual incremental pay increases.

 

(Reuters)

[Pieter C. 5]

EU Reaffirms July Decision On BA, American, Iberia

 

 

July 6, 2010

EU antitrust regulators aim to decide by the end of the month whether to clear a plan by British Airways, American Airlines and Iberia to deepen their oneworld alliance, an EU spokeswoman said on Tuesday.

 

European Competition Commissioner Joaquin Almunia said in April he expected to have a decision by July after reviewing a market test on concessions offered by the three carriers to secure EU antitrust immunity for their alliance.

 

"I believe it (the decision) could be at the end of the month," spokeswoman Amelia Torres told a daily briefing.

 

The US Department of Transportation gave tentative approval for the alliance in February.

 

Rival Virgin Atlantic opposes the strengthened alliance, saying the airlines' offer to give up some landing and take-off slots at major airports and other concessions are inadequate.

 

(Reuters)

[Pieter C. 5]

BA Union Appeals To Shareholders Over Dispute

 

July 13, 2010

 

British Airways' shareholders should use their influence to end a long running dispute between the airline and its cabin crew, the Unite union said.

 

Cabin crew, voting until July 20 on BA's latest offer in a dispute over pay and conditions, have held a series of strikes this year, costing the airline 150 million pounds.

 

The new offer from BA includes two years of guaranteed rises in basic salary from February 2011, in addition to annual incremental pay increases.

 

Unite, which represents 90 percent of BA's 12,000 cabin crew, will hand out letters to shareholders on their way to BA's annual shareholders' meeting in London on Tuesday.

 

"We are taking this opportunity to urge you to use your influence to help bring an end to the strife which is wrecking the airline... It's time for cooperation, not conflict," Unite's letter to shareholders said.

 

A spokeswoman for BA said the union could hand out what it likes in public.

 

"What we have offered is fair and reasonable and provides a genuine opportunity to end this dispute," she said.

 

A sticking point in negotiations between the airline and Unite has been BA's removal of travel perks from striking workers.

 

Unite, which has made no recommendation on whether its members should vote for or against accepting the company's latest proposal, urged shareholders to question BA's board and management over the benefits of withholding this concession.

 

The union also warned the conflict between its members and BA could jeopardise the airline's planned merger with Spain's Iberia, which is still awaiting shareholder approval.

 

CCOO, the Spanish union representing Iberia employees, said it had been monitoring BA's dispute with Unite carefully.

 

"Although CCOO believes that the merger with BA is to the benefit of our members... we have grave reservations over the style of management particularly in respect of labour issues," CCOO said in a statement.

 

"Should a similar approach be instituted within the new joint company, or imported into Iberia, then we are clear that it will be vigorously opposed."

 

(Reuters)

[Pieter C. 5]

British Airways Stands Firm Over Crew Dispute

 

July 14, 2010

 

British Airways fiercely defended its position in a dispute over pay and conditions to shareholders at its annual meeting on Tuesday.

 

"The board's patience with BASSA has now been exhausted... We will win the right to manage," chairman Martin Broughton told shareholders, referring to a long-running dispute by members of BASSA, the cabin crew branch of the Unite union.

 

Unite, which represents 90 percent of British Airways' 12,000 cabin crew, handed out letters to shareholders on their way to the AGM on Tuesday, asking them to stop the dispute which has cost the company GBP£150 million (USD$224.7 million).

 

Some shareholders heckled BA management at the AGM, accusing the company of "feathering its own nest at the expense of shareholders," and questioning whether chief executive Willie Walsh should move on.

 

Walsh said cost-saving measures such as reducing cabin crew on aircraft saved GBP£42 million in the last financial year and expects annual savings to amount to GBP£62.5 million.

 

"I don't do that to be popular, but to ensure BA is viable for the future. It's not nice to be depicted as Hitler or the devil but do I lose any sleep over it? Certainly not," Walsh told reporters.

 

Walsh believes the dispute will be resolved but the airline is training temporary staff so it can guarantee all long-haul flights and up to half of short-haul flights in the event of a strike.

 

REASSURANCE

 

BA management attempted to reassure shareholders about the company's future by being optimistic that Spanish airline Iberia will approve BA's 3.7 GBP£billion pension deficit recovery plan by late September, paving the way for a planned EUR€8 billion deal to create the world's third-biggest airline.

 

If shareholders approve the plan in November, the merger could be completed by the end of the year, Broughton said.

 

International Airlines Group, the new holding company, will be Spanish registered with its primary listing on the London Stock Exchange and a UK head office.

 

BA's trading environment remains harsh but is showing improvement from last year's depressed levels, Broughton said.

 

The company is aiming for a 6 percent revenue growth and to break even at the pretax level this year.

 

In May, BA posted a record GBP£531 million full-year loss due to industrial disputes, recession and winter snow. It was BA's largest annual deficit since it was privatised in 1987 and follows a GBP£401 million loss last year.

 

The current industrial dispute started when BA decided last November to cut cabin crew pay and reduce staffing levels on flights to save GBP£62.5 million a year.

 

Cabin crew have until July 20 to vote on BA's latest offer, which includes two years of guaranteed rises in basic salary from February 2011, in addition to annual incremental pay rises.

 

However, a sticking point in talks between the airline and Unite has been BA's removal of travel perks from striking staff.

 

(Reuters)

[Pieter C. 5]

EU Clears BA, AA, Iberia Trans-Atlantic Deal

 

July 14, 2010

 

Oneworld members British Airways, American Airlines and Iberia won EU antitrust clearance to deepen their pact after agreeing to cede some lucrative trans-Atlantic routes.

 

The European Commission, the EU competition watchdog, also unconditionally cleared British Airways' merger with Spain's Iberia.

 

The oneworld members want to broaden their agreement to take advantage of the "Open Skies" agreement between the United States and European Union, which liberalises trans-Atlantic aviation.

 

The Commission said the carriers' concessions, which are legally binding, were sufficient to ease competition concerns and that it was dropping its investigation launched in April last year.

 

"Today's decision will enable the airlines to put in place the trans-Atlantic alliance they have long aspired to while ensuring that the around 2.5 million passengers... continue to benefit from a choice of frequencies and competitive prices," Competition Commissioner Joaquin Almunia said in a statement.

 

British Airways welcomed the EU clearance, saying US regulators are expected to issue a final decision on antitrust immunity shortly and that the airlines planned to launch their trans-Atlantic joint business in the autumn.

 

"We await final action by the US Department of Transportation on our proposal that will result in more competition in the trans-Atlantic marketplace and thus provide significant public benefit," said Gerard Arpey, chief executive of AMR.

 

The three carriers agreed to cede some landing and take-off slots for routes between London and Dallas, Boston, Miami and New York.

 

Other concessions include allowing access to their frequent-flyer programmes on those routes and submitting data on their cooperation plan to the Commission. The commitments are for 10 years.

 

SHAMEFUL

 

Virgin Atlantic called the EU decision "shameful," saying the proposals did not address the competitive harm resulting from the three-way tie-up.

 

Online travel service travelsupermarket said the regulatory decisions would benefit consumers.

 

"Should these projects take off, it will be great news for travellers and will potentially see more affordable fares, better connections and improved service in the air and on the ground on both European and the important transatlantic routes," Bob Atkinson from the service said.

 

The Commission said the combined British Airways and Iberia would not significantly impede competition in the European Economic Area.

 

The US Department of Transportation in February tentatively allowed the three airlines antitrust immunity on trans-Atlantic routes.

 

Star Alliance, which includes Lufthansa and United Airlines, and SkyTeam, with members Air France and Delta, have already been granted US antitrust immunity.

 

The EU's Almunia, who is now probing some members of these proposed alliances, said the investigation on the Star Alliance was going to end before that for SkyTeam.

 

(Reuters)

 

-------------------------------------------------------------------------------------------

 

BA, Iberia Merger Cleared By EU Regulators

 

July 14, 2010

 

British Airways and Iberia gained EU regulatory approval on Wednesday for their merger to create the world's third-largest airline.

 

The carriers hope the merger will enable them to compete better with rivals Lufthansa and Air France, as well as low-cost carrier Ryanair. It will also clear the way for a tie-up with American Airlines.

 

The European Commission, the EU competition regulator, said the merger would not significantly impede competition in the market.

 

"The Commission's investigation confirmed that the merged entity will also continue to be subject to competition from a number of competitors on the markets for air cargo transport and ground handling services," the EU executive said in a statement.

 

(Reuters)

[Cornelis Boersma 0]

here the new finnair! http://www.skyliner-aviation.de/viewphoto.main?LC=nav2&picid=6845

 

Looks like the 90s livery with dark colors and huge titles

Would be unbelievable and really ugly to see entire fleet like this

Hopefully they will add something more to this livery

However.. would love to see a MD1F in this colours.. as OHLGG is on its way back to Finnair Cargo als MD1F...

[Pieter C. 5]

Cann't believe this !!!

 

The ugliest scheme ever !!!

 

Where did the blue go ? ; Finland/Suomi is blue-white, so stick to these colours PLEASE ...

[Cornelis Boersma 0]

I wouldnt mind if they put the Air Finland new scheme on the Finnair Airbus fleet, but this is crap! Then please put the 90s livery back on!

[Tamizi Hj Tamby 1]

OMG; What a shock!

 

The current one is far more better than the new one!

[Raymund Yeoh 1]

Well...at least MH have some company here in "bad livery"

[Mohd Suhaimi Fariz 2]

Well...at least MH have some company here in "bad livery"

 

For me, MH's livery isn't bad, but it could have been better. Finnair's livery on the other hand, is bad. Very bad!