Private Jet Hire

India Aviation Officials Ask Questions of Kingfisher

February 20, 2012

India aviation officials are to be asking questions of troubled airline Kingfisher. There has been three days of disruption at Kingfisher and the Indian Aviation Authorities have asked the airline to account for it. There have more than 100 flight cancellations over the last two days leaving many hundreds of passengers stranded.

The airline has experienced large scale cash flow problems that have lead to many staff leaving the company and large scale flight cancellations. The company blame high fuel costs and a weak rupee for its troubles.

The Civil Aviation’s Director General has asked the company’s senior officials to appear before it to explain the situation. The airline has said that the problems and cancellations will continue over the next few days.

Meanwhile a minister for civil aviation has categorically said that the Indian government is not prepared to bail out the company and will not be asking banks or private companies to do so either.

Losses have increased by 75% from October to December according to a spokesperson for the airline which raises new concerns for the company. The company made a loss of around $90m or £57m during that period compared to around half that amount a year earlier. This has lead to the net value of the company being eroded.

These latest figures have raised concerns over the future survival of the Indian airline as it finds it increasingly hard to attract fresh funds.

There have been fresh talks of a Hong Kong based company who may well inject fresh money into the ailing company.

Kingfisher has already stopped the budget airline section of its company in order to cut the losses. The company which started in 2005 has never made a profit.

Spanair Threatened With Fine

January 30, 2012

The government in Spain are threatening legal action against the collapsed airline Spanair. The company closed its operations without notice which left around 23,000 people stranded and looking for rescheduled flights. The government are looking to fine the company around €9 million for the decision to stop flights last Friday.

The collapse seems to point to further problems within the Spanish economy along with many other euro zone economies. The company based in Barcelona has been the flagship of the Catalonian region of Spain which has been seeking independence from Madrid. The company has been kept afloat by receiving €150 million in subsidies from local authorities.

Spanair was seeking to convince Qatar Airways to enter into an agreement in order to ease funding problems. However the company was also facing problems from low-cost rivals who argued that the funding it received was illegal.

The company was formed by SAS a Scandinavian carrier way back in 1986, offering flights from Spain to the Balearic Islands. They later tried unsuccessfully to expand into the transatlantic market. In 2009 the company was taken over by a private consortium based in Catalonia with SAS keeping just an 11% stake.

Spaniar lost €185 million in 2009 and a further €116 in 2010. The news follows the collapse of Lehman Brothers just months earlier which itself triggered a financial crisis.

Talk in the industry suggests that the collapse was a flying shipwreck that was waiting to happen. Also questions have been asked as to whether Qatar Airways offer was indeed genuine or not. Total losses of €350 million had made any profitability unlikely. Qatar Airways was seeking to invest in a European airline after their rivals Etihad had bought a share in Air Berlin in recent months.

Spaniar has very few assets in order to pay back debts. It has a fleet of 36 aircraft all of which were leased. Their demise could lead to 4,000 job losses.

Spain as a whole has faced many problems over recent years. The country had gone through a boom period over the last decade with many new airports built. Some of those airports are now shut or as best idle. The countries third biggest airline recently announced losses of around €13 million with loss of jobs.

New Policy for Civil Aviation Ministry

January 27, 2012

The Civil Aviation Ministry in India are looking to put together a new policy to help with new concerns and worries within the aviation industry. Issues being discussed are; pricing, security, safety, fuel prices and infrastructure.

A meeting was held today between senior officials within the Ministry and major stakeholders to discuss a whole range of issues in order to work out some sort of agreement.

A decision was made that all stakeholders should put forward any proposals for improvements by the middle of February. Those views and ideas would be placed on an official website for feedback and comments from other members and stakeholders. The meeting was attended by officials of KPMG, CAPA, FICCI, CII and ASSOCHAM.

The next meeting is planned for February again involving the Ministry and stakeholders. One suggestion was for a separate air cargo policy in order to improve infrastructure, regulatory framework and much needed improvement incorporating modern technology to cater to this fast growing industry.

It is projected that at least freight planes will be required over the next 20 years or so. Much needed investment is required to ease pressure on the current infrastructure and also tax breaks are required on jet fuel.

Thames Estuary Airport Is It Viable?

January 18, 2012

The airport would be built partially on reclaimed land with the approach over water. The government understandably want to examine the feasibility of these controversial plans for the airport in the Thames Estuary with announcement due in March.

No decision has yet been made however the government are keen for the UK to maintain their status as an aviation hub. Other alternatives include expanding Heathrow.

Wildlife

With the airport being proposed to be built on reclaimed land on either a peninsula or an island there are concerns about the damage to the environment. Campaigners say the area is very important to wildlife especially migrating birds. Populations of breeding birds such as marsh harriers and avocets use the area and therefore it should be protected.

The Prime Minister is said to support Boris Johnson’s plans to expand Heathrow, however is keen to see what the feasibility study shows. Other studies show that London is expected to see an increase in demand for flights from its current 140 million passengers per year to 400 million by 2050.

BAA has praised the government for recognising the need for expansion. However he warned that London can’t have two aviation hubs and a new airport could see Heathrow becoming smaller which would impact on jobs.

Any airport in the Thames Estuary could well be decades away and there are questions about affordability. However Boris Johnson believes that cost should not be an issue and there would be plenty of ready investors available. The real problem would lie in the infrastructure in connecting the airport to the rest of London via road and rail.

Mr Johnson also believes that expanding Heathrow would be the wrong thing given the problems faced by residents living in west London. He went on to say that it would be impossible for London to compete for flights with France and Germany to the developing countries if we don’t plan now.

The debate will continue for some time to come which will involve many options like expanding Gatwick or Stansted.

White Turf St. Moritz

January 10, 2012

 
The White Turf at St. Moritz is an amazing spectacle of horse racing on the frozen lake at St. Moritz. The event takes place annually for around 100 years usually on the first three Sundays in February. The backdrop to this event takes place in the sunshine and stunning snow-capped mountains of the Alps. Trainers, horses and riders alike along with 35,000 spectators gather from around the globe to compete in one of the most prestigious horse racing events in the world. All of this whilst enjoying the finest hospitality possible amid specially erected marquees on the frozen lake.

St. Moritz is a founder of winter sports and tourism. It was here that, 5 years before, St. Moritz hosted the winter Olympics that the sport of skijoring took place. Skijoring takes place without riders on the horse’s backs but instead they are pulled along on skis. The original races were from St. Moritz to Champfèr where riders set of at 1 minute intervals. Today the race is confined to the track with stringent rules to ensure the safety of both skiers and horses. It is run more like a conventional horse race making for an exciting spectacle. The event takes place shortly after the equally exciting Polo on Snow at St. Moritz.

Jet Hire Direct can supply a wide range of amazing and exquisite aircraft to and from Samedan Airport otherwise known as Engadin Airport which is around 5 kilometres from the winter resort of St. Moritz.

Jet Hire Direct for your all your flights to and from St. Moritz.

For competitive pricing call now:

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World: +44(0)1202 33 17 21

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Airlines in America – Carbon Emissions Tax Retaliation

January 7, 2012

The European Carbon Tax came into effect on 1st January which requires all airlines to pay for emissions on flights to and from Europe.

The United States are in discussions whether or not to take some sort of retaliation either unilaterally or in conjunction with other nations upset by this new tax.

One option that has been suggested to the Americans involves European Airlines being charged to maintain US access. This option was used by the US against Argentina regarding landing fees.

Officials haven’t decided yet what form any action will take. Many of the airlines in the US have been forced to raise prices to compensate for the European tax.

The EU was warned in December that action would be taken or some sort of settlement was needed through the UN. Neither option took place before 1st January which prompted outrage from airlines across the world. Airlines argue that the tax comes at the worst time with rising fuel costs and a slowdown in demand for flights.

The tax will be phased in over a period of time with airlines having to pay 15% of the carbon that they emit from all flights in 2012. Payments are due to be paid in 2013 with heavy fines for non-compliance. However airlines are already passing the cost onto customers. Chinese airlines have said that they are already refusing to pay the tax.

Leading countries in aviation including the US, India and China have argued that the scheme infringes their sovereignty. They believe that the EU should not take matters into their own hands but instead work with the UN to resolve the problem.

Many countries are watching the US closely as they have well established airlines with very strong links to the EU. However officials in the US are saying that no decision has been made.

Retaliation from the US could be in the form of action against EU airlines such as British Airways as a way of trying to persued the EU policy makers to back down.

Countries Oppose European Airline Carbon Tax

December 22, 2011

Following on from the failed attempt by US and Canadian airlines, made to the highest court in the European Union, to overturn Europe’s decision to introduce a carbon tax on any airlines entering European airspace, China have now joined the demonstration.

Many countries around the world now oppose the unilateral legislation. China is hoping that the EU will be practical and prudent will look to deal with the problems through consulting with relevant countries including China.

Airlines have spoke of their dislike for the emissions tax saying that it would cost the industry around $24 billion over the next eight years. China itself could face a bill of $125 million per year which could well increase massively by 2020.

Airlines will be expected to pay for 15 percent of all pollution rights in 2012. This figure would rise to 18 percent from 2013.

Apparently in retaliation China blocked a move by Hong Kong Airlines in their order for a Airbus aircraft in a deal that would be worth billions of Euros. This could well spark a trade row between the two economic giants with government agencies calling for more action.

US airlines who failed in their attempt to fight the tax have said that they will carry on under protest. The airlines argued that this amounted to a backdoor tax.

The European Court ruled that the tax was legal in that the tax does not infringe on the Open Skies Agreement or international law. The EU has told the US that it should prepare itself to obey the new law in the same way that European companies have to respect American law.

The US too has spoken about reprisals between itself and the EU sparking the risk of a trade war.

Qantas Airline Facing a Tough Year

December 19, 2011

 
Qantas is facing another difficult year but the airline believes it has the ability to handle whatever problems comes its way.

2011 was possibly the worst year since the collapse of Ansett. Qantas is expected to show a pre-tax profit which is 66 per cent lower than 2010. This year the Qantas crisis committee met on 17 occasions to deal with a number of natural disasters, problems due to actions by the unions and its decision to ground the airline. In the first half of the year there were floods and cyclones in Queensland, the volcano that erupted in Chile spreading ash over Australia and New Zealand as well as earthquakes in Japan and Christchurch.

This coming year isn’t expected to bring such an array of problems, there is the European crisis that may affect the airline.

The group that represents airlines “International Air Transport Association” has made ranging forecasts from $4 billion profit to $8 billion losses for the industry as a whole. The latter forecast will only happen if there was a major banking crisis that would see the Asian-Pacific airlines loose approximately $1 billion rather than showing a $2 billion profit.

One thing in Qantas’s advantage is that 43 aircraft are soon coming to the end of their leases and there are also 16 aircraft due for retirement. This will allow the airline the option to either expand or contract its operations.

Qantas also have the option to walk away from their Boeing 787 order. Due to the late delivery of the aircrafts Qantas enjoy the flexibility of having no cancellation penalties which means they can walk away at any time.

This unique situation gives Qantas the fleet flexibility that other airlines can’t match. This will allow for either large growth over the next year of a cut back in services depending on how things pan out.
While its international operations have suffered over the last year, its “Jetstar” arm of the company has seen great growth along with “Frequent Flyer” with profits of around $340 million. These subsidiaries of Qantas have remained constant during economic crisis and are now the life blood of the company.

Jet Hire Direct can provide a number of options for private jet hire in Australia, New Zealand and the Asian region.

Aeroexpress and Sheremetyevo, Domodedovo & Vnukovo Airports

December 17, 2011

 
Aeroexpress was founded in 2005 and is the only operator of the railway service that runs between the three main airports in Moscow; Vnukovo International, Sheremetyevo and Domodedovo. The railway also connects the Moscow’s main railway stations.

The company is made up of LLC Delta-Trans-Invest, JSC Russian Railways plus some private investors. Their activity is centred on the millions of passengers who use Moscow’s airports. Aeroexpress plays an important role in the smooth transportation of passengers and in solving road network congestion and environmental issues. The main roads are heavily overloaded and the railway acts as the only realistic transport option for the airport’s travellers.

The first electric train came into use in 2008. At present the railway connects these three stations:
• Belorussky – Sheremetyevo International Airport
• Kievsky – Vnukovo International
• Paveletsky – Domodedovo International
• Savelovsky (Lobnya city)

It takes around 35 to 45 minutes to travel to any of the three main airports by Aeroexpress. The company has its own rolling stock which is built at the Demikhovskybuilding plant. The trains provide safe and comfortable travel and makes up to 180 journeys per day.

Aeroexpress are members of the International Air Rail Organisation (IARO) and have been since 2009. The company also forms part of the construction of the largest railway station in Europe “Kalanchevsky” which will be located in Kalanchevskaya and is due to open in 2016. The new terminal will act as a hub and will connect the city centre and Moscow’s three main airports. This new station will help with the smooth redistribution of passenger flows around Moscow.

Jet Hire Direct offer private jet hire to and from Moscow.

China Wants to Boycott Carbon Credit Scheme

December 15, 2011

 
China’s aviation industry group is urging Chinese airlines to boycott Europe’s carbon credit scheme where airlines are expected to buy credits for all flights that enter into Europe which comes into force on 1st January 2012.

The airlines are being asked not to submit monitoring plans on CO2 to aviation officials in Europe or to discuss any preferential treatment plans.

From 1st January any airlines landing at any European airport will have a carbon cap imposed and will have to pay for any surplus emissions by buying carbon credits under the Emission Trading Scheme (EFS). This scheme will cost airlines in China approximately $120 million in the first year alone and over three times that amount by 2020.

China isn’t the only country to be up in arms about the scheme. Many other countries around the world believe that it is contravention of the Kyoto Protocol, the 1944 Chicago Convention on International Aviation and the rules set out by the World Trade Organisation.

In the face of so much opposition, China may consider retaliatory action if Europe continued with the scheme. They are considering legal action however according to the European Court of Justice the scheme was well within the law.

EU officials are entitled to impose such as scheme as attempts to impose worldwide reductions on emissions collapsed. They also went on to say that the scheme will not impose a massive financial burden on airlines as 85% of the carbon credits were given away for free within the first year.

So what to make of this? Is the EU right to impose such a “tax” on emissions? What would happen if leading countries around the world decided to boycott the scheme? Please give your views.

Please contact Jet Hire Direct with any questions on private jet hire at anytime.

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