ON THE SOAPBOX: Sandra Bloodworth - Chair of BARUK

Sandra Bloodworth is the UK and Continental Europe Area Manager for Royal Brunei Airlines.  Having worked within the airline industry for over 29 years, she has a depth of expertise in both the UK and international travel market.  She has been Chairperson of The Board of Airline Representatives in the UK (BAR UK) since 2008, an industry association that promotes the business interests of scheduled airlines with a British operation or representation.  Membership is almost 90 carriers.

The 'Scoping Document' cut-off date is near – 20th October

The sole British aviation policy for the next few years is to place a well-advertised lid on trading capacity between the UK and overseas markets.  That lid is due to the denial of any additional runway capacity, not just at Heathrow but also Gatwick and Stansted.

Puzzling?  That’s the least that can be said.  Overseas competitors cannot believe their luck.  Heathrow will fall behind Frankfurt and Paris to become Europe’s third busiest airport within ten years unless the Government acts soon to free up more capacity.

International trade is the mainstay of most countries, and has been a foundation upon which Great Britain has thrived in the past.  Within the UK, the region of London and South East England remains the focal point of aviation development, something that seems inconvenient to the coalition government.

It has swept away the policies of the previous administration and replaced it with a lengthy period of consultations.  The result – a gap of at least ten years between the publication of the Department for Transport (DfT) white paper ‘The Future of Aviation’ in 2003 and a new aviation policy in 2013 at the earliest.

The first of those consultations is due to close on 20 October; it will be the cornerstone for yet another consultation in 2012.  It may already be costing Britain £1.2bn a year in missed business opportunities which is going instead to competitors with better air links.  Failure to provide direct flights to cities in emerging markets could deprive the economy of £14bn.

All sorts of questions are asked in it, including many that challenge well-known and proven precepts, such as the value of connectivity, hub airports and flights that arrive early morning and depart late evening.

Environmental matters naturally need to be addressed, but if there is an industry that has consistently addressed them it is aviation.  It has a great proven record of reducing noise and emissions whilst simultaneously improving fuel consumption.

The Chancellor stated that Britain is open for business, but is it?

It might be, but only up to the point that the current, overloaded, infrastructure can handle it.

That infrastructure is paid for by the industry, not government.  Aviation is part of the answer, not a part of the problem! 

Whilst the current policy vacuum exists, the UK’s economy stands to lose out in a big way.

International companies, planning to expand, will be enticed by the additional flights and connectivity offered elsewhere.

The Secretary of State is urged to understand just how vital aviation is for the UK’s economy and deliver a sustainable plan for added capacity in a shorter time frame than currently envisaged.  Yet the Aviation Minister, Theresa Villiers, said “We are determined to deliver a new approach to aviation policy, one that ensures the aviation sector both supports economic growth and addresses the environmental impacts of flying.”

We meanwhile risk sleepwalking into a situation where the UK is isolated from some of the most important markets in the world.

At least the Government last week admitted for the first that they had got it wrong concerning long haul Air Passenger Duty (APD).  Transatlantic flights out of Belfast will (from 1 November) cost £12 Economy and £24 for premium classes, as against £60 and £120 for the rest of the United Kingdom.  Dublin, for similar flights, charges only £3.

Any planned increases should be binned and APD further reduced by at least the level of income from the EU Emissions Trading Scheme. 

Send your comment in to the Department for Transport regarding Scoping.  The final day for observations is getting very close.

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80mph UK speed limit

UK Transport Secretary Philip Hammond has announced that the 70mph (113kph) limit will be increased to 80mph (128mph) by 2013, subject to a consultation period of several months.  France has a motorway speed limit of 130kph (110 in rain), Netherlands 130, Spain 120 and Germany none at all.

Mr Hammond says that raising the mostly ignored limit will increase transport efficiency.  Those opposed to any increase say that “speed kills”.  The Minister points out that when the present limits were set in 1965 the average family car could hardly reach 70mph, had inefficient brakes, equally poor handling and for the most part cross ply tyres, notorious in the wet.  All round today’s cars are very much safer.  The number of people killed on British roads has fallen by more than 75% since that time.

It will be fascinating to see the policies carried out by Chief Constables over the coming months.  Clearly some will stick to the current guidelines (no prosecutions for up to 77mph) whilst others might be more generous in their understanding of the law.  What will be interesting is whether an upper notional limit of 88mph will be applied, nearly a 25% increase on the current legal top speed. www.dft.gov.uk

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Business Traveller Awards 2011

British Airways was the 'Airline of the Year' at the Business Traveller Awards 2011 held at Kensington’s Royal Garden Hotel and presented by radio presenter John Humphrys last week.

Sponsored by Heathrow Express and supported by Panasonic Avionics and Aeromobile, the awards have been a fixture in the business travel and hospitality calendar for more than 25 years.

BA also won Best Short Haul Carrier and Best Frequent Flyer Programme. Singapore Airlines continued to show strongly, taking Best Business Class, Best Economy Class, Best Long Haul Airline, Best Asian Airline and Best Cabin Staff. Emirates won Best First Class, with Virgin Atlantic winning Best Premium Economy and also taking the award for Best Airport Lounge for its Clubhouse at Heathrow Terminal 3.

Four Seasons won Best Business Hotel Chain Worldwide, as well as Best Luxury Hotel Chain, and the Four Seasons George V in Paris was named Best Business Hotel in Western Europe. Hilton Hotels and Resorts was voted Best Business Hotel Chain in the UK and Europe with Marriott taking the North America prize for the sixth consecutive year.  Jumeirah was first in the Middle East for the seventh year in a row, and Shangri-La continued its 17-year dominance of Asia-Pacific. www.businesstraveller.com

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Congo airline launched

ECAir (Equatorial Congo Airlines), the new national flag carrier of the Republic of the Congo, entered into service and took-off on 24 September 2011 with its premiere flight between the country’s capital Brazzaville and the port city of Pointe-Noire.  Lufthansa Consulting managed the complete start-up process preparation and thus continues its successful co-operation with the Congolese Government. In previous projects the consultancy service supervised the development of the country’s three main airports and  'Airport City' at Brazzaville named Maya Maya Village.

ECAir will fly three times a day, seven days a week, on the Brazzaville – Pointe-Noire route with a Boeing 737-300, configured 12 Business Class seats and 108 Economy.  Operational support is supplied by the Swiss company PrivatAir, a long-time associate with the Lufthansa Group.  The opening of further routes to international destinations and the acquisition of additional aircraft are planned. www.flyecair.com

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London Covent Garden hotel opens

The Mercer Street, arguably one of the best-located hotels in London, has opened in Covent Garden after a £15m refurbishment.  Formerly called The Mountbatten, The Mercer Street is located at the heart of avant-garde Seven Dials area near Leicester Square and some of the best shopping, restaurants and theatres that the capital has to offer. 

Part of the Radisson Edwardian hotels group The Mercer Street offers 137 guest rooms, all with bathrooms and the most up-to-date Apple TV technology, free wi-fi and other benefits including free printing for guests, enabling those travellers working in London to do business easily.  There is also a fitness room.  Valet parking is available.

Eight sumptuous suites have great views over Seven Dials, walk-in showers in their large bathrooms, and dressing rooms complete with an enormous Union-Jack painted SMEG fridge – perfect for keeping that bottle of champagne nicely chilled.  For meetings, events and conferences, there are six meeting rooms capable of hosting 6-50 people and equipped with the latest HD and touch-screen technology. www.radissonedwardian.com/mercerstreet

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Olympics’ ‘hotspot’ news

Mayor of London, Boris Johnson, has unveiled a new website which, although designed for the capital’s small and medium enterprises to avoid transport disruption during next year's Olympic Games does actually work for everyone.  The function of the ‘one stop shop’ is to help businesses plan ahead and manage transport impact during summer of 2012.  Information showing how the busiest stations and locations across the Tube and road networks will be affected during the Games is shown with the promise of further comprehensive information to come.

London’s Transport Commissioner, Peter Hendy, struck a cautionary note: “Our analysis shows that no two days will be the same during the London 2012 Games.”

The public transport data, full details of which are due to be released in November, will show how services on all Tube, DLR, London Overground and key National Rail stations are expected to be affected on a line-by-line, day-by-day basis during the Games, in intervals of 30 minutes.  Preliminary information for London’s road hotspot locations, based on recent highways modelling is due to be released in November. www.tfl.gov.uk/2012

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Stratford Westfield for Premier Inn

Part of the massive Stratford Westfield shopping complex (which adjoins both Stratford Regional station and the Olympic Park), Premier Inn has opened its latest London 267-room London property.  As with all Premier Inns it features en-suite bathrooms, TV with Freeview, and wi-fi internet access and, whilst the Whitbread-owned company is keen to promote its own bar and restaurant, clients will find an amazing selection in Westfield itself.

Premier Inn, which claims to be the UK’s largest hotel brand, has announced a major expansion drive in London with over 50% rooms' growth in the next two years with an intention to double its size in the capital by 2016.  Over the next 24 months it will be opening 20 new hotels in London with locations including Leicester Square, Blackfriars, Old Street, Holborn and Islington. 

Lyn Brown, MP for West Ham, who also attended the event, said: “I was delighted to be here today at the opening of this very swish brand new Premier Inn – I absolutely love the panoramic views of the Olympic site the hotel offers.” www.whitbread.co.uk

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ON TOUR: The European regional’s gather in Rome

Alison Chambers reports

“You are in Bern, you don’t need to hurry,” says Tomislav Lang, CEO of SkyWork Airlines, inviting us to test the airline’s 20-minute check in claim.  We are en route to the ERA General Assembly in Rome and Bern, in stark contrast to the chaotic Rome Fiumicino Airport on our return, is an oasis of calm. 

SkyWork, a relatively new regional airline, is one of the 65 intra-European airlines which makes up the Association.  ERA members collectively carry 70.6m passengers on 1.6m flights, flying 867 aircraft and serving 426 destinations in 61 European countries.  Together, they recorded a 7.1% passenger growth in the first half of the year, although the real value was only 4% taking into account the impact of last year's volcanic ash cloud.  Average sector distance was 390 miles and seat load factor was up .7% to 64%.  “Once again our airlines have demonstrated their resilience and shown themselves to be resourceful,” said Director General Mike Ambrose.   

However, as the industry, under the blue skies of Rome’s Marriott Park Hotel highlighted, the stability of the industry is still threatened – by bleak economic uncertainty, proposals to change the way in which airport slots are allocated, (to the detriment of regional airlines flying smaller aircraft), VAT on international air fares, preferential treatment by some airports to low cost airlines and even bankruptcy protection for consumers.

An animated industry panel session chaired by Malcolm Hart, MD of Aurigny, together with Krzysztof Kapis from the Polish Ministry, Abdul Wahab Teffaha, Secretary General of the Arab Air Carriers Organisation, Boet Kreiken from KLM Cityhopper, Vijay Poonoosamy of Etihad Airways and Matthew Baldwin, the European Commission’s Director of Air Transport prompted Jesper Rungholm, boss of Danish Air Transport, to plead to legislators “please leave aviation alone, we have enough problems coping with fluctuating oil prices,” (making aviation reduce its emissions).  Vijay Poonoosamy observed that the Middle East had seen a “paradigm shift.”  Countries in his region supported aviation, contrary to the often confrontational, punitive approach in Europe.  But Matthew Baldwin said that a major challenge in Europe was its “27 separate airspaces,” referring to the continuing air traffic control problem.

Hart, always an entertaining speaker and a newly elected addition to the ERA Board, quizzed Baldwin on how regional carriers can escape blanket legislation. “We are not in the business of making regulation for the sake of it,” he replied and called for more interaction, especially from airline CEOs.  Observer Kam Jandu, Aviation Director from Budapest Airport, opined that maybe the industry needs a completely independent ambassador – not an association or airline – to lobby hard for the air transport industry.   

High points noted Ambrose were EC commissioner Kallas's Bruges Declaration, recognising the critical importance of air transport – that such further burdens should not be placed on the industry; the need for tougher performance targets for Air Navigation Service Providers and the need of the new White Paper to lead to a better balance between transport modes.

ERA released a new independently commissioned study Air and Rail: Setting the Record Straight, which shows an imbalance in the way the two transport modes are treated by the EU and the Commission.  The study identified massive rail subsidies, 125 times higher than State funding for air transport needs.  It clearly confirms that the political bias towards rail – and high speed rail (HSR) has not resulted in successful modal substitution, despite the subsidies poured in.  We are not seeking to become the ‘preferred’ transport mode, but we just want a level playing field based on fair competition and equal treatment between competing modes.”  

The aircraft manufacturers were in bullish mood in Rome.  ATR, now in its 30th year, especially having notched up 145 orders since January.  “There has been no holiday for ATR,” quipped CEO Filippo Bagnato, noting the company will up production from 54 aircraft this year to 72 aircraft in 2012, 80 in 2013 and 85 the following year.  At ERA it signed a contract with leading regional aircraft leasing company Nordic Aviation Capital for one ATR72-500 and another -600, adding to the 10 -600s the Danish based company signed at the Paris Show. 

Sukhoi Civil Aircraft Company/SuperJet International (SJI) said launch customers Armavia and Aeroflot have collectively logged over 850 flight hours to date on the SJ100 twin-engined jet.  EASA certification is slated for December, paving the way for deliveries to European customers. It is also set to make an impact in the executive VIP market and will announce a partner, potentially a cabin design partner, at NBAA in Las Vegas this month. 

Bombardier Commercial SVP sales marketing and asset management, Chet Fuller, gave an update on the C Series and also defended the CRJ 1000, when one well known journalist suggested had that model been a mistake?  To the contrary, the aircraft is delivering a performance better than specifications – just ask Brit Air and Air Nostrum, he said, pointing out the aircraft’s service entry came at a very tough time.  Colleague Steve Aliment voiced operators’ concerns that they are very worried about the Euro and the global downturn when selecting new aircraft.  “One doesn’t even know what currency they’ll be using next year.”  He acknowledged interest in the C Series from CEE countries, Romania in particular, primed by a Romanian journalist.  Carpatair Nicolae Petrov confirmed the interest.  “This is a good aircraft – an aircraft with a mission.  All the lessons with CRJ series have been ironed out with this model,” he said, hinting it could indeed be the aircraft for Carpatair to further its London ambitions.  “C Series to London City Airport even,” he told AERBT.

Mary Kirby, Flight International Senior Editor, delivered an informative presentation about IFE and cabin connectivity, advising regional carriers that they may not need to rush to equip but they should seriously think about adding connectivity if they are feeding traffic to the big alliance carriers.  What won’t appeal to carriers with a firm eye on the bottom line is that airlines who have adopted the systems (in the USA) with GoGo aren’t making money yet.  European carriers can take advantage of Inmarsat’s SwiftBroadband (which has global coverage apart from the poles).  Its newly revised lower pricing makes it even more attractive, she noted.  On the horizon from Inmarsat is the “blazing speeds” of Ka-band, which could arrive in 2014.  Kirby said that when this comes along, “it may well be of interest to regional airlines with antennae the size of an iPad.

Air Nostrum of Spain collected this year’s ERA Airline of the Year Gold Award.  Wideroe of Norway picked up Silver and SATA Air Açores, Bronze.  The Airport Achievement Award went to Nantes Atlantique Airport.  Nicola Clark from the International Herald Tribune was the recipient of the Hank McGonagle Journalism Award, while the Director General’s Commendation for Services to the Industry was awarded to Brit Air’s Nicole Huguenot. www.eraa.org

Alison Chambers - Emerald Media
www.emeraldmedia.co.uk

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