COMMENT: FIFA World Cup 2018

On the face of it the selection of the host nation for the FIFA World Cup in 2018 is of little consequence to a publication such as AERBT. 

In fact this is not true, as our readers are in the travel industry or are travellers.  Either way the event will have an effect on them.  With its two major elements the Olympic Games is spread out over six weeks.  The World Cup takes up about the same number of days. 

Unashamedly we back the England bit.  Worldwide more people watch the Premier League than any other (how many in Thailand tune into Russian matches every week?).  We already have the stadiums and the hospitality set-up that are an essential requirement (Spain can offer a huge amount of vacant property as lodgings but that is another story).  Since it is a solo bid the Football Association (of England) does not have to deal with a partner (on virtually every minor detail).

We note below the full text of a letter by the AERBT’s Editor in Chief published in The Times which whilst not directly involving the World Cup is clear in its intention.

What concerns AERBT is that the selection voting has deteriorated into a political farce, open to corruption, and not on the merits of the bid.  With just 22 votes (out of 208 country members of FIFA) the system cannot be justified.  Rather like the lack of goal line technology it is completely discredited in this modern world.  The head in the sand attitude by the Zurich hierarchy is to be despised.  All members should have an equal opportunity of having their say in a secret ballot.  If a worldwide vote of football supporters were to be taken on whom should be the host nation one wonders which of the contenders would be win!  That is how the winner should be chosen if all the presentations are equal.

Hopefully Prince William and the team will be successful later this week (2 December).  Logic makes sense for the home of football to host the world tournament once every 50 years.  Flying all over Russia will not be popular with teams and spectators and, if what we are being told is true, Portugal (and maybe Spain) might well need a financial bailout very shortly.  They hosted the World Cup only in 1982.  Who is paying for their bid and will they be able to sustain it?  As for Belgium and Holland what language will they use?  English!

AERBT

Letter to The Times and published (in reduced form) Saturday 20 November

Ferguson for England

There can only be one choice as Manager of the Great Britain soccer team for the 2012 Olympics.  Sir Alex Ferguson.  The precedent has been set.  For the 1948 games, also held in London, in charge was the then Mr Matt Busby.  He selected amateurs from the England, Scotland, Northern Ireland and Wales, who reached the Semi Finals.  If Scotland was concerned whether it should supply players it would still be extremely visible at the very highest level.  Hampden Park is a venue.

Sir Alex's appointment will be universally accepted and might just help the FA in its 2018 World Cup bid.  He can also speak to the BBC without compromising on his current Manchester United policy and after the games would be in a position to decide whether retirement was for him.  A win and a raising to Lord Alex of Old Trafford would not be out of place.  The Upper House might just enjoy some of his wisdom. 

Malcolm Ginsberg
Member:  International Society of Olympic Historians (recognised by the IOC)

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Armenia to Dubai

Flydubai has inaugurated services to the Armenian capital, Yerevan, making it the 25th operational route for Dubai’s first budget airline.

Said to be one of the oldest continuously inhabited cities in the world, Yerevan is set to the spectacular backdrop of Mount Ararat, the Biblical location of Noah’s Ark. 

Initially the service is twice weekly, a third flight being added on 15 December.  The airline currently operates 12 Boeing 737-800 aircraft fitted with 189 passenger seats in a high-density all-economy class cabin layout, virtually the same as Ryanair.  The price of the flight includes all taxes, one piece of hand luggage weighing up to 10kg, and one piece of checked baggage, per passenger.  Flydubai operates from a modernized and enhanced Terminal 2 on the north side of Dubai International Airport. www.flydubai.com

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Eastern Airways Scotland to Wales

A Cardiff to Aberdeen link is being introduced by Eastern Airways in the New Year.  By road it is one of the most difficult imaginable within Great Britain, 600 miles and around ten hours.  By air total travel time is 2hrs 15mins south to north and 2hrs 35mins in the other direction.  The weekdaily flight plus Sunday goes via Newcastle operated by a BAe J41.

Eastern point out that all their passengers departing from Aberdeen Airport have access to its dedicated business lounge.  Light snacks/refreshments are served on flights and a full complimentary bar is offered on most services appropriate to the time of day.  All seats are allocated at check-in and the popular emergency exit (extra leg-room) position can be requested on a first-come, first served basis. There is no charge for this. www.easternairways.com

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Executive jet costs

PrivateFly.com has introduced a booking platform that enables prospective users of its executive aircraft booking service to actually obtain an indicative costing for any pair of airports. 

The request for a quotation for four people to fly from London City Airport to Berlin Schoenefeld came up with some interesting figures.

For a small propeller aircraft the cost is (from) £7,070 with a flight time of 1hr 55mins.  With a small jet the charge is £9, 010 for 1hr 18mins in the air.  A middle size jet is no quicker but the price rises to £13,270 whilst for a long range jet the quote comes up with £23,520.  VAT is not included nor certain other charges but the flight does not attract APD.

The advantage of a private aircraft is obvious.  You can fly from where you want, to the place you need to get to, at times to suit.  You are not dependent on airline schedules or city pairs.  Hangar8, one of Europe’s largest operators of private jets, predicts a bumper year in 2011 for business as the commercial benefits of private jet travel becomes more recognised in the marketplace. www.hangar8.co.uk www.privatefly.com

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Oxford Airport arrival

Hangar8 plc, one of Europe’s leading operators of privately owned business jets, has today welcomed the arrival of an Embraer Lineage 1000 to its fleet.  Last week it became the largest ever aircraft to touch down at the company's Oxford Airport headquarters.

The US$52m aircraft is configured in an executive layout, with five separate cabin zones including a large lounge area featuring a fully integrated entertainment system, 52 inch TV screen, a separate master bedroom suite with a full sized double bed and private shower facilities.  It boasts a range of 5,000 miles enabling it to fly non-stop from the UK to the Middle East, Dubai to Johannesburg, New York to Moscow, or from Singapore to Sydney.  Long haul destinations such as Los Angeles and Tokyo can be reached from the UK with one fuel stop.

The Lineage, the largest in the Embraer family of aircraft, is an executive version of the E190/195 which is successfully flying with British Airways, CityFlyer and Flybe. www.hangar8.co.uk 

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Stockholm hotel opens

Nobis Hotel will open in Stockholm on 1 December located on Norrmalmstorg Square in the heart of Stockholm’s business and shopping district.  The 201-room property will have a very personal approach to service and will offer 800 square metres of public spaces, including the Italian restaurant Caina, 24/7 Bistro, The Gold Bar and The Lounge.

The Swedish Nobis Group is an expanding conglomerate that has doubled its turnaround over the past six years.  At present, the company includes the Operakällaren restaurant, Café Opera nightclub and three other restaurants as well as conference facilities in the Opera House in Stockholm, Stallmästargården Hotel & Restaurant, Hotel J and Restaurant J in Nacka Strand, Factory Event & Expo Centre, Fabrikörsvillan and Tornvillan meeting venues, Täby Park Hotel & Conference, and the recently opened Hotel Skeppsholmen. www.eng.nobis.se

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UK air traffic grows in October

NATS Ltd (formerly National Air Traffic Services Ltd) says that flights in the UK’s controlled airspace last month was 0.9% higher than the total for October 2009.

The company, 49% owned by the Government (and the balance by seven UK airlines + 5% by staff), also provides air traffic control at all BAA airports as well as others including Belfast International, Birmingham, Bristol, Cardiff, Gatwick, London City, Luton and Manchester airports.

Overall, traffic at the airports decreased by 0.3% except Heathrow, which saw a rise of 5.8%; Southampton (4.7%); Bristol (2.9%) and Edinburgh (2.3%).  Transatlantic the traffic grew by 6.9%, the only routing to show any significant growth.

Strikes by French air traffic controllers led to a number of flights to and from France and some overflights, notably to Spain, being cancelled. www.nats.co.uk

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ON TOUR: Is There a Future for Business Jets?

“Is there a future for Business Jets?” posed Edwin Brenninkmeyer, CEO of Oriens Advisors during the final panel of Quaynote Communications’ third annual Future of Business Jets conference held in London this November. 

Delegates were debating how to best educate the business travel market about the benefits of private jets.

It would seem from the senior industry figures in attendance, including delegates from Amex, Wexas and Limelight Access, that the majority of travel planners still lack the information required to immediately think ‘private charter’ when asked to plan an itinerary that may take in Vienna, Paris and Amsterdam.  This would typically be a 2-3 day trip.  Yet, by chartering a business jet the client becomes his own route planner, makes the whole trip a single day and, can be back home for supper.  “There are occasions when the business jet is the only option if you want to seal that deal and get there ahead of the competition,” said David Macdonald, Director Private Jets at Air Partner plc.

Entrepreneurs, sports personalities and the news media are key clientele to charter small jets.  And of course business users.

Overall executive aviation traffic now accounts for 6.9% of IFR traffic and is set to increase to 8% by 2015, according to Eurocontrol.  It has become a vital part of aerospace infrastructure, significantly increasing productivity for its corporate users.  European Business Aviation (EBAA) statistics show that there has been an increase from 2,000 aircraft in 1990, when EBAA first formed, to 4,000 business jets in Europe today, supporting business.  However, as this event heard, for many travel management companies, private jets are the preserve of the elite and without easy access via GDS systems to private jet charter options, this market is likely to remain untapped.

Brenninkmeyer highlighted the cluster of partnerships between legacy carriers and small jet providers and questioned if there could be merit in incorporating private charter options in web portals such as Expedia?  Gordon Mowatt from Wexas Travel Management suggested this would be difficult to implement because they are so intrinsically linked to the scheduled carriers. 

Brian Stoll, who arranges travel for celebrities, international football players and pop stars, said that his clients like to experience the service first. “When our clients buy a luxury car they go to a showroom, and take it for a drive and at that point they make a purchasing decision.  Realistically or not, this may well be the way private jet companies may have to court this business.”  However, business jet charter isn’t being exclusively used by those looking to raise productivity.  Laborious airport routines, schedules constantly changing and the restrictive hub and spoke systems have increased those using charter for leisure.

David Macdonald noted that at Air Partner private jet charters used for leisure had increased from 10% of their market in 2005, to 30% in 2010. 

Following on the National Business Aviation Association (NBAA) theme of “no plane, no gain” the conference also explored the productivity value that is associated with private jets.  Fred Reid of fractional ownership business Flexjet presented statistics that showed companies using business jets outperform those who don’t use them with 22% higher growth.

Stewart Cordner from BAE Systems supported this argument that the niche market that BAE’s VIP converted 146/Avro RJs jets serve is focused on offering cost effective solutions for clients’ business travel requirements.  Converted VIP regional airliners have a strong role in the current economy, he said.  “We provide an effective and affordable first step for many companies into the world of executive charter.  Our clients then go on to the Learjet or Challenger purchase once they realise how effective flying business jet can be.  Our long-standing BAE 146 customer Titan Airways is the first in the world with the new Legacy 650. (see Alan Sugar gets new jet first)

However, growth requires finance, and discussions about availability were rife.  Aoife O’Sullivan, Partner at aviation law firm Gates and Partners presented a number of alternative sources for those seeking finance. “Finance is still out there,” she said, noting that Islamic finance, regional finance, and good old fashioned cash and refinance, as viable options.  The presence of a number of financiers reiterated that banks have returned to explore aviation finance, although perhaps in reduced numbers.

OEMs, including Bombardier and Cessna presented a cautious view of the market going forward.  Barry Mackinnon Director of Market Development at Bombardier Business aircraft commented on the importance of the BRIC countries ie Brazil, Russia, India and China.  Whilst these countries continue to grow they need to access the established economic markets, and private jets are increasingly utilised for this purpose.  However, he argued “don’t let them overshadow the Middle East or existing markets.”

MacKinnon suggested other drivers maintaining the more established aviation sectors include a slowly rejuvenating economy, aircraft renewals, and increased accessibility to business aviation through programmes such as Flexjet.

Reid, of Flexjet, confirmed that aviation business needs to stay agile and presented a number of innovative solutions from the Flexjet stable including a variety of ways to buy into the programme, exclusive membership promotions such as being offered the “ungoogleable”, and perhaps significantly a tie-in with Korean airlines providing their passengers with one point of call for commercial and private aviation options.

This alliance between business aviation, and a commercial airline is not unique.

There are a number of commercial airlines such as Qatar Airways and Lufthansa, developing their own private aviation offering, and others are forming partnerships such as British Airways’ partnership with CitationAir in the USA.

Once again there were murmurings that this where the Future of Business Jets (in the short haul market) will lie.

Jane Stanbury, Emerald Media
www.emeraldmedia.co.uk

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