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http://economictimes.indiatimes.com/articleshow/1690827.cms

 

MUMBAI: After years of being a standalone carrier in the international aviation industry where airlines are rapidly aligning in various groups, Indian flag carrier Air-India is all set to join the Star Alliance. A top-level Star Alliance team, led by the CEO Jaan Albrecht, is currently at the Air-India headquarters in Mumbai for discussions on the modalities of the inclusion.

 

All of Star’s 18-member airlines have to approve the entry. Air-India’s entry is likely to be championed by Star Alliance founder member Lufthansa, which already has a close relationship with the Indian carrier through codesharing.

 

Air-India’s inclusion in the grouping underlines the growing potential of the Indian aviation market. Passenger numbers at domestic and international airports grew by 28% in ’05-06, among the highest in the world.

 

The Star Alliance CEO has earlier said that “India, Russia and China are white spots on the Star alliance network that need to be filled.” Star Alliance, the world’s largest airline grouping, currently runs 16,930 daily flights to 842 airports in 152 countries around the world.

 

Elaborating on the major benefits of the alliance for Air-India, airline sources said it would lead to a partnership with member airlines on issues ranging from marketing to joint sourcing of spares and fuel, potentially leading to a huge saving of millions of dollars.

 

Member airlines have an integration of airline frequent flier programmes, which is a major marketing tool for airlines. Miles can be earned and redeemed on all members of the Alliance at the same level.

 

Premium customers have access to all members’ airport lounges. As the integration among members progress, flight schedules are co-ordinated to permit almost seamless travel which may include several different carriers within the alliance, on a single ticket.

 

Over the years Air-India’s global network has shrunk such that it is now largely focussed on the Gulf, parts of western Europe and four cities in the United States. The entry into the alliance will allow it to offer a much larger choice to its passengers.

 

Air-India is also scheduled to begin a huge expansion resulting in the induction of 68 aircraft worth over $11bn over the next six years. The airline’s marketshare that has gone down to about 19% of the Indian overseas passenger market is expected to improve substantially.

 

“The merged entity formed after the merger of Indian Airlines and Air-India will eventually find place in the alliance that provides the widest airline network in the world today,” a highly placed Air-India source said.

 

However, the process of integration into the alliance could take up to a year after it is approved. South African Airways was the most recent airline that joined the alliance in April this year. Airlines have to upgrade systems to certain common standards before the entry is permitted.

 

Proving once again that it's quantity not quality for *A. It's disappointing that *A seems very keen of late to recruit third tier members. Actually, with the inclusion of such illustrious carriers like AI and CA, coupled with existing members like LO, TP and JK - the average quality of *A seems to be dipping below that of ST if not for shining stars like SQ, NZ, LX to drag the average back up. Alliance members or not, AI is one carrier I wouldn't be flying.

 

Hopefully 9W joins OW but they don't seem to keen on alliances.

Edited by Keith T

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To be honest, NZ is not much of a shinning star, probably quite akin to the third tier airlines as listed above. NZ suck.... :p

 

Market research would disagree with you. ;)

Their lounges and inflight products are often highly rated by frequent flyers and peer reviews (ie reviews by competitors and other industry partners).

I look forward to checking out NZ Business Premier to PVG. Well actually, I've sampled VS UC so it's the same seat (very comfy!) - but the catering on NZ seems a lot better according to TRs.

Edited by Keith T

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I have taken many trips with NZ, not that I like them but I had no choice. There is always some kind of minor incident whenever I was on their flight, F/As were rude, smiles were so fake. They won't post a letter for you if you don't have a stamp. Only one smooth flight with them so far. I don't really care how market research rate them, personally I wouldn't fly with them anymore if I can have another option. When you compare them with QF, the difference is obvious. QF is a step ahead of NZ, just my personal opinion.

Edited by S V Choong

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When you compare them with QF, the difference is obvious. QF is a step ahead of NZ, just my personal opinion.

 

While I'm inclined to go with QF - whenever the QF vs NZ debates come up, the opinions are usually polarised with equal support (and criticisms) of both so on the whole I'd say they're pretty much equal. FWIW NZ has nice flat beds in J and bigger pitch in Y vs sloped beds in J and 2 inches less of pitch in Y on QF. But for me I personally find the food and wine lists on QF to be far more imaginative and of higher quality. I've had great FAs on both airlines, barring one or two bad apples (but I don't know any airline that's totally devoid of these bad applies ;)).

Edited by Keith T

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I've had great FAs on both airlines, barring one or two bad apples (but I don't know any airline that's totally devoid of these bad applies wink.gif).

 

Just based on my experience with bad apples, have not had any bad apples with SQ, CX, QF, KA, PR, KE, AK, or MH (although have had some in the 80s and 90s), but NZ.....the F/As are simply quite direct at expressing their emotions and more appearant during the early 90s when Asian immigrants had only begin to arrive en mass (due to their dislikes with Asian?). I can certainly sense the negative vibe when they serve us and the caucasians in front or behind us.

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Just based on my experience with bad apples, have not had any bad apples with SQ, CX, QF, KA, PR, KE, AK, or MH (although have had some in the 80s and 90s), but NZ.....the F/As are simply quite direct at expressing their emotions and more appearant during the early 90s when Asian immigrants had only begin to arrive en mass (due to their dislikes with Asian?). I can certainly sense the negative vibe when they serve us and the caucasians in front or behind us.

 

I've had bad apples with all those airlines listed. Some on a minor level, others on multiple dimensions. I rate FAs' professionalism with a wide range of factors (efficiency, friendliness, poise, grooming, mannerisms etc). My experiences with NZ FAs have demonstrated that they're one of the better airlines out there. Horses for courses. :)

 

Come to think of it my flights to PVG are crewed by their PVG base which received negative reviews initially (gum chewing, stern looking FAs from the PRC). So hmmmm. Hopefully they've gotten better by now.

Edited by Keith T

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Come to think of it my flights to PVG are crewed by their PVG base which received negative reviews initially (gum chewing, stern looking FAs from the PRC). So hmmmm. Hopefully they've gotten better by now.

 

Hmm, hopefully they have all been disciplined by now.

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After the ST and OW topics, shouldn't there be a *A topic as well, where news like this can be posted ?

 

Good move for *A in India...wonder which airlines are alligned with ST and OW ?

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After the ST and OW topics, shouldn't there be a *A topic as well, where news like this can be posted ?

 

Good move for *A in India...wonder which airlines are alligned with ST and OW ?

 

Whoops I forgot about that. Would you kindly do the honours and rename this thread to 'The Star Alliance news thread'? :)

 

There are rumours that 9W is going with OW and certainly some of their commercial agreements (eg QF codeshares) seem to point that way, but I'd believe that when i see it as there are also hints that 9W might aim to be independent like the ME carriers and enter into bilateral agreements rather than multilateral alliances.

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http://www.staralliance.com/en/press/press...tAir_final.html

 

Cairo, EGYPT – October 16th, 2007

 

Strategic Network Expansion specifically in Africa and the Middle East Star Alliance Member Carriers to collocate in the new Terminal 3 in Cairo

 

Following the successful conclusion of membership talks with EgyptAir, the Chief Executive Board of Star Alliance has voted to accept as a future member, the national airline of Egypt, which in the last five years has undergone a significant transformation process and is now one of the foremost carriers in Africa and the Middle East.

 

"Egypt is one of the most important aviation markets in Africa, with a large potential for both business and leisure travel. We are proud that EgyptAir, a world class airline, has chosen to join Star Alliance, thereby recognising the importance of alliances in aviation today," commented Jaan Albrecht, CEO Star Alliance. "EgyptAir provides an ideal network fit for Star Alliance and will permit many more passengers to experience the alliance's customer benefits especially in markets in which Star Alliance was up to now under represented," Albrecht continued.

 

"Egypt, the home market of EgyptAir, has a strategic location which offers a good link between Africa, the Middle East and Europe to the rest of the world. The company equally serves the needs of the leisure and the ever-growing business travel market, thereby adding prosperity in tourism and different sectors of the Egyptian economy," said Engineer Atef Abdel Hamid, Chairman and CEO, EgyptAir Holding Company.

 

"By joining Star Alliance, EgyptAir will offer its customers a wide variety of benefits such as a diversity of destinations, frequency of existing destinations, a wide choice of convenient fares across the globe, frequent flyer advantages on all Star Alliance member carriers and the great facilities the passengers will enjoy at major airports through the Move Under one Roof concept," added Eng. Abdel Hamid.

 

In order to implement the Star Alliance "Move under one Roof" concept at Cairo Airport, EgyptAir and the Star Alliance member carriers flying to Cairo will move to the new Terminal 3 once it opens in 2008. Talks to this effect are already underway with the airport authorities in order to ensure the creation of another hub with an optimal customer experience.

 

"EgyptAir's membership in Star Alliance along with the strategic location of Cairo Airport will create a hub for the alliance members and a gateway for the Middle East and North Africa", commented Engineer Atef.

 

With the integration process now underway, EgyptAir is set to become a full Star Alliance member carrier within the next 18 months. EgyptAir will add nine additional unique airports into the Star Alliance network, bringing the overall total to more than 17,700* daily flights serving 944* destinations in 161* countries.

 

* Figures are based on current 17 member carriers and the four carriers set to join soon - Air China, EgyptAir, Shanghai Airlines and Turkish Airlines.

 

"One of the foremost airlines in Africa and the Middle East"???

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http://www.theaustralian.news.com.au/story...2-23349,00.html

 

Singapore profit soars despite cost hit

 

John Jannarone, Dow Jones Newswires | November 02, 2007

 

SINGAPORE Airlines has reported a 73 per cent surge in second-quarter net profit as strong passenger volumes offset the impact of rising fuel costs.

 

Net profit for the three months to September 30 rose to $S508 million ($370.8 million) from $S293 million a year earlier, the airline said. A Dow Jones Newswires poll of analysts had forecast a net profit of $S448 million.

 

Revenue rose 9.9 per cent to $S3.97 billion from $S3.61 billion, boosted by a 4.8 per cent rise in passenger traffic.

 

Operating profit nearly doubled in the second quarter, to $S518.5 million from $S259.4 million a year earlier. The passenger load factor in the second quarter rose to 81.6 per cent from 79.4 per cent.

 

Despite the strong performance, the airline may be challenged by record high oil prices and uncertain global economic conditions.

 

"Slower economic growth sparked by tight credit markets and increasing volatility in financial markets cast a cloud of uncertainty over the strong revenue environment," chief executive Chew Choon Seng said.

 

The cost of fuel would be a "significant variable" for the remainder of the year, he said.

 

Singapore Airlines had 47 per cent of its fuel costs hedged as of October, and aims to keep protection in place for between 30 and 60 per cent of total exposure.

 

The total fuel bill for the first half was $US1.26 billion ($1.35 billion), down slightly from $US1.29 billion a year ago. Still, fuel expenses remained high, reflecting 36.5 per cent of total costs during the first half.

 

Singapore Airlines and Malaysian Airline Systems enjoy exclusive control over the lucrative route between Singapore and Kuala Lumpur, but the Malaysian Government said last week it would grant rights to other carriers.

 

Mr Chew said the loss wouldn't make a major dent, as operations between the two cities generated "much less" than 5 per cent of total profits. "When we advocate liberalisation, we do it without exception," he said, adding that the route was "useful but not material".

 

Turning to flights beyond Asia, Mr Chew welcomed a recently announced open skies agreement between Singapore and Britain but said immediate benefits would be limited.

 

He said that routes from Britain to other countries were still restricted and that further liberalisation would be necessary for Singapore Airlines to make headway.

 

"To benefit from such rights, we would need approval from other countries," he said.

 

For the six months to Sepember 30, net profit rose to $S932 million from $S868 million a year ago.

 

First-half revenue was $S7.6 billion compared with $S7 billion in the same period a year earlier.

 

First-half passenger load factor was 80.3 per cent, compared with 77.5 per cent a year earlier.

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Five US Airways Crew Fall Ill On Flight

 

November 6, 2007

Five crew members including two pilots on a US Airways flight from Washington to Boston fell ill on Monday after reporting a smell and were treated by paramedics when they landed, aviation officials said.

 

The crew and 81 passengers on Flight 2022, Airbus A319 shuttle service, left Washington's Reagan National Airport at 7:30 a.m. EST. The crew then reported a smell in the cockpit, the Federal Aviation Administration said.

 

The plane returned to Washington where they switched to another Airbus jet and proceeded to Boston.

 

A spokesman for Boston's Logan Airport said the smell on the first plane was possibly smoke or rubber, but the airline said it had not yet confirmed the origin of the problem.

 

The FAA said the crew did not report any problems to air traffic controllers during the flight but complained of feeling sick when they arrived at Logan at 10:20 a.m. The FAA is investigating whether the sickness was caused by the smell on the first plane.

 

The nature of their illness was not disclosed. The crew was treated on board by paramedics and then taken to a hospital. No passengers were sick, officials said.

 

Authorities were investigating the matter, but a US Airways spokeswoman said there was no indication of foul play.

 

(Reuters)

 

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http://www.russiatoday.ru/news/news/17078

 

Russian Airunion joins Star Alliance

One of Russia’s leading airline groups has been boosted by the inclusion into the global Star Alliance code-sharing network. The Air Union group includes Krasair and Samara airlines.

 

Another airline GTK Rossiya is also in talks with Star Alliance, along with rival networks SkyTeam and OneWorld.

 

Experts told Kommersant Daily that foreign firms are keen to forge links with state-backed Russian airlines to limit any problems with the country's aviation authorities.

 

Lufthansa Cargo is in the midst of airspace dispute with Russia.

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SQ is supposed to start SIN-DME-IAH 4x weekly with 77W! bloody hell.

 

 

MH is still pissing around pretending they don't need to be in an alliance....relying on codeshares instead. Of all the carriers - MH definitely needs to be in an alliance - to remain profitable and for KUL to become somewhat of a hub in this region.

without it, KUL will continue to lose out in terms of growth - we already are fourth in the region after BKK,SIN and CGK!!

 

EK doesn't need to join an alliance - MH is not in the same position as them...being a 'primarily leisure' airline - according to our esteemed IJ. This reminds me of the time when MSA split and the Malaysian government decided that we were too small to support international routes - therefore opting to take F27s and 737s to service domestic and some regional routes. On the other hand, SQ decided to take the bull by its horns and continue aggressive international expansion.

 

Its a matter of choice - IJ has given up and relegated MH to somewhere in between AK and TG. Hence five star with low cost. what a stupid statement.

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I read Air China and Shanghai Airlines set to join the bandwagon

 

Yep, saw CA's A330 in SYD with a Star A logo on their fuselage already.

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I read Air China and Shanghai Airlines set to join the bandwagon

 

They're official members as of yesterday.

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At a media conference in Beijing on 13 December 2007 immediately after the announcement of the alliance's acceptance of Air India's application, Star Alliance's CEO Mr Jaan Albrecht confirmed that it is looking to secure airline members in Russia and South America.

 

Inspite of persistent media query, he refused to name any of the airlines.

 

Aeroflot is out of the question . . . it is in Skyteam. That leaves Transaero and Sibir as strong candidates.

 

For South America, I would hazard my guess on TAM.

 

KC Sim

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Well, TAM has a high possibility of joining Star Alliance. Its unlikely that Varig will rejoin Star Alliance (they can rejoin within 18 months). AiR Union may join Star Alliance since they have codeshare agreements with LH and OS.

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UAL Wants Consolidation Sooner Not LaterDecember 4, 2007 The US airline industry should consolidate sooner rather than later, and preferably before the end of President George W. Bush's administration, the chief financial officer of UAL said on Monday.With the US economy slowing and oil prices soaring, US carriers are under pressure to save their fledgling recovery. UAL has been one of the leading proponents of mergers, but has not launched any offers for rivals."We want consolidation to happen sooner rather than later and we think that doing something now and getting it done in this administration is a good thing," UAL's CFO Jake Brace said at the Reuters Aerospace and Defense Summit in Washington.The transition to a new administration could create obstacles to mergers and hinder the progress of carriers pursuing consolidation, said Brace. For that reason, UAL, which is the parent of United Airlines would like to see mergers soon."If we were able to control that outcome, that's what we'd do," Brace said.He declined to say whether he views the Bush administration as receptive to airline consolidation proposals. But he said some industry watchers believe it is.The Bush administration has approved two mergers involving major airlines: TWA-American in 2001 and US Airways-America West in 2005. Both involved at least one bankrupt carrier, which can lower the bar for antitrust approval. A United-US Airways merger proposal foundered in 2001 over competition concerns.UAL, like other major carriers, is under pressure from investors to consider options that would ensure long-term survival in a competitive industry while boosting the company's market value.In November, hedge fund Pardus Capital Management urged UAL and Delta Air Lines to merge. Delta denied reports that it was in merger talks with UAL but said it hired advisors to help it review merger options.UAL managers have long advocated industry consolidation, but have not publicly said they are in talks with a potential partner.The airline industry is in recovery mode after five years of decline triggered by the attacks of September 11, 2001, and exacerbated by low-fare competition and high fuel prices.Major carriers have restructured and are better prepared for competition from the likes of Southwest Airlines and JetBlue Airways. UAL exited bankruptcy in February 2006 after slashing costs by USD$7 billion.But record energy costs and a weakening US economy have cast doubt on the industry recovery.Despite the new stability in the airline industry, stocks have fallen sharply this year. The Amex airline index is down more than 30 percent and UAL shares are down 10 percent since January 1.In October, UAL reported a third-quarter profit of of USD$334 million on higher fares. The results were in line with those of other major carriers that have seen their fortunes improve thanks to fare increases.Aside from consolidation, airlines are looking at spinoffs as a way to boost company value.Brace said the company expects to receive bids soon for the potential divestment of its maintenance operations.However, the Teamsters union said on Monday it would fight any attempt by the carrier to spin off its maintenance unit, as it looks to rally workers for its machinists organizing drive at United.UAL also plans to generate a separate profit and loss statement for its Mileage Plus frequent flyer program beginning January 1. Brace declined to say when the company might spin off or sell its frequent flyer program, but he said the company would prefer to make a decision on that after a merger.Brace also said that United continues to favor relaxation of a US law that restricts foreign ownership and investment in domestic carriers. He did not see it as a front line impediment to consolidation.Pressured by labor and pro-American sentiment, Congress has twice defeated attempts by the Bush administration to ease the statute that limits overseas investment in airlines to 25 percent of voting stock.(Reuters))

 

I read Air China and Shanghai Airlines set to join the bandwagon

Shanghai Air Mulls Order For Airbus A330sDecember 4, 2007 Shanghai Airlines is considering an order for Airbus A330 medium-range aircraft as it speeds up the expansion of its international network, its chairman said on Tuesday.Shanghai Air is looking to buy 10 single-aisle A320 planes, out of a bulk initial order of 160 Airbus planes placed by China during French President Nicolas Sarkozy's visit last month, Zhou Chi told reporters."We are considering buying A330 planes, but have yet to decide the size of the order," Zhou said, adding that the widebody planes could be used to reinforce its flights to neighboring markets, the most lucrative routes for Chinese carriers.Shanghai Airlines, which had earlier placed an order for nine Boeing 787 Dreamliners, is also scheduled to launch daily flights to the United States and the German city of Hamburg next year.But the plan may be postponed because of the delayed delivery of the Boeing aircraft, Zhou added.In October, Boeing pushed back the first test flight of its 787 to next year and postponed initial delivery of the plane by at least six months to late November or December 2008.Shanghai Airlines will join the Star Alliance, the world's largest airline grouping, next week. It plans to expand its international network on its own or via code-sharing with other members of the alliance, its president Fan Hongxi said."International flights now make up less than 10 percent of our sales currently and we hope to raise that ratio to roughly 30 percent in five years," Fan said, adding that Star Alliance membership would be a big help.Sales of the Shanghai-based carrier, which operates a fleet of 59 aircraft, rose 23 percent to CNY9.04 billion yuan (USD$1.2 billion) from January to September, from CNY7.36 billion a year ago.Next week, Air China, the country's flag carrier, is also expected to joint the Star Alliance, whose members include Lufthansa and United Airlines.(Reuters)

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BMI To Add Daily Flight To Israel

 

December 10, 2007

British Midland (bmi), the second-largest British carrier, said it would start operating daily flights between London Heathrow and Tel Aviv from March 2008.

 

El Al Israel Airlines, the country's national carrier, and British Airways already have numerous non-stop flights a day to and from London.

 

In a bid to increase tourism, Israel earlier in the year announced an open-skies policy, and the Tourism Ministry has lobbied European budget carriers in an effort to lower prices.

 

Low-fare carrier Thomsonfly in November started operating flights from London Luton and Manchester to Tel Aviv.

 

(Reuters)

 

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Singapore Air CEO: No Plan For Higher China Eastern BidDecember 13, 2007 Singapore Airlines does not plan to raise its USD$918 million bid for a 24 percent stake in China Eastern Airlines, it said on Wednesday, despite speculation that the bid is too low and could attract rival offers.Singapore Air and parent Temasek had agreed in September to buy the stake to gain access to China's fast-growing and lucrative air network, and China Eastern shareholders will vote on the bid at an extraordinary general meeting on January 8."Our price ceiling is on the table," said Chew Choon Seng, chief executive of Singapore Airlines, the world's second largest carrier by market value. "It is up to the shareholders of Eastern to decide."While the price Singapore Air offered was a premium to China Eastern's share price at the time the deal was signed, the mainland carrier's shares have since doubled, leading to grumbling about the offer price."Some people think the price is too low," said Li Jiaxiang, the president of Air China, whose parent owns just over 11 percent of China Eastern.Air China, the country's largest airline, and Cathay Pacific have said they were also interested in buying into China Eastern."We are gathering all the relevant information, and will make a decision based on what benefits a Singapore Air stake in China Eastern will bring to small shareholders," said Li, talking about the chances of Air China voting against the deal.The airline executives were in Beijing for the signing of an agreement for Air China and Shanghai Airlines to join the Star Alliance network.Singapore Air said it was a long-term strategic investor that would bring value to China Eastern and help make it more competitive."There must be competition domestically to improve the industry," said Chew. "If you cannot compete effectively domestically, how is an airline going to compete globally."The management team at loss-making China Eastern is considered by some analysts to be a weak link in the domestic aviation industry, while Singapore Air is widely regarded as one of the world's best run carriers.(Reuters)

 

Air India To Join Star AllianceDecember 13, 2007 State-run national carrier Air India said on Thursday it would join the Star Alliance global network of 19 airlines to help it take on growing competition at home and abroad.Star Alliance, which includes Lufthansa and United Airlines, allows airlines to widen their reach and boost revenues and customer loyalty as air miles can be transferred between group members."India has long been on the radar," Glenn Tilton, United Airlines' chief executive, who chaired the Star Alliance annual board meeting in Beijing, said in a statement.He said the agreement would enable the grouping's customers to receive additional benefits when traveling to, from and within India. The decision to accept Air India's application was taken at the meeting.In August, the Indian government approved the merger of state-run international carrier Air India and predominantly domestic flier Indian Airlines.The merged airline, which now flies under the Air India brand, has a fleet of 112 aircraft and has on order another 111 Boeing and Airbus planes.The airline faces rising competition from private carrier Jet Airways and a host of foreign airlines flying into India, where a booming economy has boosted business and leisure travel.(Reuters)

 

China Eastern Says Singapore Deal FinalDecember 13, 2007 China Eastern Airlines said on Thursday a USD$920 million stake purchase by Singapore Airlines and Temasek Holdings was a "final deal", sending shares in the airline skidding, as investors abandoned hopes of a higher bid.The deal had been approved by Beijing and it would be unrealistic for minority shareholder in Air China to vote against the deal, Chairman of China Eastern Li Fenghua told a news conference on Thursday."Introducing strategic partners to China Eastern is a government decision... (If) Air China votes against it, that will be unrealistic," Li said.The deal was the only one and was final, he added.The market expected minority shareholders Air China and others would reject the deal at a vote on January 8.China Eastern shares are now trading at 72 percent above Singapore Airlines and parent Temasek's offer of HKD$3.8 per share for the 24 percent stake, despite the stock ending down 12.7 percent at HKD$6.53 on Thursday."It is uncertain as to whether Air China will dump its shares in the airline in the market or make a counter offer," said Steven Cheng, associate director at Shenyin Wanguo.Singapore Airlines and Temasek agreed in September to buy the stake to gain access to China's fast-growing and lucrative air network but the deal would need two-thirds minority shareholder approval in the extraordinary general meeting.Singapore Airlines on Wednesday ruled out the possibility of raising its bid for the stake."That's the only proposal on the table," Ong Beng Teck, Temasek Managing Director, Investment, echoed on Thursday.China Eastern also said on Thursday it expected to return to profit for the whole of 2007, while its market share in Shanghai would rise to more than 50 percent from the current 36 percent after the SIA deal."We expect to see profit for 2007. Next year will be even better," Li said.China Eastern posted a net profit of CNY1.03 billion yuan in the first nine months, based on Chinese accounting standards.It made a net loss of CNY306 million in the first half and losses of CNY3.3 billion in 2006, according to international accounting standard.(Reuters)

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THY Targets 20 Percent Passenger Growth

 

January 3, 2008

THY Turkish Airlines is targeting 20 percent passenger growth in 2008 and expects to have ended 2007 with a net profit margin of 10 percent, General Manager Temel Kotil said.

 

Between January and November of 2007 the total number of passengers rose 16.3 percent to 18 million year-on-year, a figure which was expected to have reached 20 million by year end, Kotil said in an interview late on Wednesday.

 

In 2008 he expects the airline to carry 24 million passengers.

 

Kotil said that in 2007 growth in international flights had overtaken domestic growth, reversing an earlier trend. In the first nine months, revenue from international flights made up 76 percent of ticket revenue.

 

"In 2007 international growth overtook domestic growth. We grew 18 percent outside the country, domestically we grew 15 percent," he said.

 

THY, set to join the Star Alliance airline grouping in March, is one of the fastest growing airlines in Europe. Its shares rose 41 percent last year, in line with the wider Turkish market, although they suffered from uncertainty in July and August over a planned strike, which was eventually averted.

 

"THY is aiming to end 2007 with a profit margin of 10 percent. Even if we can't continue this in 2008, even if we do half of that, that would still be a high margin compared to the sector standard," Kotil said.

 

In 2007 THY increased its passenger load factor by 4 percentage points and aimed to add another 2 points in 2008.

 

Kotil said high oil prices would add some 5 to 8 percent to all airlines' costs this year, but gave no estimate for his own firm.

 

The International Air Transport Association (IATA) said in a report in December that the price of fuel and the result of a credit crunch will cut 2008 sector profits to USD$5 billion from an earlier forecast of USD$7.8 billion.

 

(Reuters)

 

Poland May Sell LOT Stake

 

January 3, 2008

Poland's Treasury Ministry may sell its 68 percent stake in state-controlled airline LOT, as there is no sound reason for it to remain in state hands Deputy Treasury Minister Zdzislaw Gawlik said on Thursday.

 

The ministry must make legal changes first, as current regulations allow the ministry to sell only a minority stake.

 

"There are no rational grounds for the carrier to remain state-owned. We want to change the law in order to sell the shares," Gawlik said.

 

The ministry plans to float the carrier this year on the Warsaw Stock Exchange. According to earlier remarks by the company's chief executive, Piotr Siennicki, LOT could debut on the Warsaw bourse in the third quarter of 2008.

 

(Reuters)

 

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One reason to always have your seatbelts fastened while seated !!! :good:

 

Ten Hurt After Air Canada Plane Hits Turbulence

 

January 10, 2008

All 10 passengers injured when an Air Canada flight hit turbulence over the Rocky Mountains on Thursday are in stable condition with non-life threatening injuries, the Calgary Health Region said.

 

Flight AC190, an Airbus A319 with 83 passengers and 5 crew aboard, was en route to Toronto from Victoria, British Columbia, when the plane jolted violently over the Rocky Mountains, throwing some passengers out of their seats.

 

The 10 patients taken to Calgary hospitals after the flight made an emergency landing here are recovering, according to Rob Abernethy, associate chief medical officer for the health region.

 

One was set to be discharged, he said.

 

"It happened very fast," a female passenger in the plane's front cabin told CBC Television.

 

"One side of the plane just went up a little bit sideways and then it just sort of went back down. And our friend was really hurt... she flew up and hit the ceiling and (came) right back down."

 

The Air Canada plane made an unscheduled landing at 8:30 a.m. local time at Calgary Airport, where it was met by 11 ambulances and more than 20 firefighting vehicles that had rushed to the tarmac.

 

An emergency medical services spokesman said six injured passengers were taken from the plane on stretchers.

 

"None of the patients received any life-threatening injuries. Most of the injuries are the soft tissue, orthopedic, minor type," Rob Abernethy told reporters outside one of three hospitals where the injured were sent.

 

"These are mostly musculoskeletal injuries one would normally see if someone was bounced around or having fallen," he said.

 

Air Canada, Canada's largest airline, confirmed there had been "an incident" aboard the flight, but a spokesman could not comment on the cause.

 

Turbulence is a frequent cause of injuries for airline passengers. Nine people were hurt in September when a WestJet Airlines flight to Halifax, Nova Scotia, from Calgary hit a rough spot about 40 minutes before landing.

 

In August, 18 passengers on an Air Mauritius flight to Hong Kong were injured after the Airbus A340 encountered turbulence.

 

(Reuters)

 

 

 

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