ANA to introduce Dreamliner into Europe

Frankfurt is to become the first European airport to receive the brand new Boeing 787 with ANA non-stop flights beginning from Haneda Tokyo on 21 January 2012.

A new route will complement ANA’s four existing European services from Narita to Charles de Gaulle, Frankfurt, Heathrow and Munich.  This is likely to be popular with regular (and inquisitive) travellers wishing to sample the most advanced airline now flying. 

Larger than the 767, the most obvious difference to its predecessor will be the large windows and innovative interiors.  Not so apparent is the overhead compartments, the largest in the industry.  They are approximately 30% larger than the compartments on the Boeing 777 and have enough space to hold four large-size carry-on bags.  Also worthwhile mentioning discreetly are the washrooms which are equipped with Washlet seats equipped with a hot water washer designed for in-cabin use.  These seats were jointly developed by Toto Ltd, Jamco Corporation and Boeing.

Flight time will be around eight hours.  The seat layout is expected to provide 46 Business Class and 112 Economy. www.ana.co.jp

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Aviation Foundation lobby group set up by major players

The Aviation Foundation has been created by BAA, British Airways, Manchester Airports Group and Virgin Atlantic as a specific, fit-for-purpose campaign group.  Flying Matters, which attempted to do much the same job, was considered too cumbersome to be effective, and was wound up in April. 

The Aviation Foundation has been kept small to ensure a tight, flexible and timely campaign approach.  Its role is advocacy, not industry representation, and its structure has been developed with this in mind.  Appointed as Director is Rob Gray (38) former Deputy Chief Executive of The Countryside Alliance and previously Editor of both Shooting Times and Shooting Gazette. 

A briefing note states that “the Aviation Foundation needs to be focused and targeted in our communications with the public and politicians.  The Aviation Foundation will raise awareness of the contribution of aviation to the British economy and its role in the private sector-driven recovery. One of our objectives is to reach out and build alliances and coalitions with others in the sector wherever it helps the campaign.

The Aviation Foundation is not intending to promote itself for its own sake but to rebalance the debate about aviation to reflect properly and positively aviation’s contribution to the United Kingdom.  As yet no website.

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Dubai to the heart of Africa

Emirates extensive African network is to be boosted again with the launch of two new destinations – Lusaka, the capital of Zambia, and Harare, the capital city of Zimbabwe.  Zambia and Zimbabwe, which share a border with the Victoria Falls, one of the natural wonders of the world, will now be linked with a five times weekly flight from Dubai, starting from 1 February 2012.

The Dubai – Lusaka – Harare service will be operated by an A330-200 aircraft in a three-class configuration that offers 12 luxurious First Class seats, 42 seats in Business Class and generous space for 183 passengers in Economy Class.

The new route should work very well for Emirates feeding into its hub at Dubai.  From the UK, Emirates operates 105 flights per week to Dubai, where passengers can take a convenient onward connection to Zambia and Zimbabwe.  The airline flies five times a day from Heathrow, three times daily from Gatwick and Manchester, double daily from Birmingham and daily from Newcastle and Glasgow. www.emirates.com

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London gateway sponsored by Emirates

Emirates is the sponsor for the new cable car across the Thames linking the Greenwich Peninsula and the Royal Docks.  To be known as the Emirates Air Line, and worth £36m in a 10-year deal, the system should be up and running well before the start of next year's London Olympics.

With a capacity to carry up to 2,500 people per hour in each direction in the peak, equivalent to the capacity of 30 buses per hour, it is anticipated the Emirates Air Line will transport two million passengers per year.

Creating a direct link between the O2, Europe’s biggest entertainment venue, and ExCeL, the UK’s largest exhibition centre, the Emirates Air Line will also provide an additional interchange between the DLR and Jubilee line.

The Mayor of London Boris Johnson was joined by Tim Clark, President, Emirates Airline to announce the sponsorship deal.  The Emirates Air Line will feature on the iconic Tube map and be included in Transport for London's (TfL) travel information.  As title sponsor, Emirates will receive a range of naming and branding rights, including the right to name the scheme, its stations and the creation of a joint logo. www.emirates.com www.tfl.gov.uk

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Pullman Hotels for the UK

Accor, the Paris-based hotelier, has confirmed that it is rebranding the Novotel in London’s Euston Road as its first UK Pullman.  Work will start shortly at the 312-room property to bring it up to the higher standard required for a Pullman.  Completion has been targeted for well in advance of the London 2012 Olympics.

Ideally situated about half way between St Pancras/Kings Cross and Euston stations the property also features the 450-seat Shaw Theatre, part of London’s West End, but also integrated into the hotel for conventions and gatherings.

Pullman is an up-market brand which, by the end of 2011, will include 70 hotels across Europe, Africa, Middle East, Asia-Pacific and Latin America. www.pullmanhotels.com

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Salt and pepper pots to go says Virgin Atlantic

Virgin Atlantic is phasing out its “highly collectable” salt and pepper sets.  Thousands of the coveted condiments have disappeared since they were introduced over 12 years ago (The Editor denies that the pair that adorns his dining room table were stolen – Richard Branson on a press trip said “take them”).

So sought after have they become that there is even a thriving trade on eBay with individual pieces selling for up to £20 each.  However, those days are coming to an end.  Next month, Virgin Atlantic is replacing all of the cutlery and dining ware sets across their entire Upper Class fleet – and the old salt and pepper pots are going to disappear. 

Said Virgin Atlantic spokeswoman Janine Doy: 

“Who could have guessed that salt and pepper pots designed for our aircraft would one day be found in homes all over the world and we are thankful to our Upper Class passengers for spreading the message around the globe.

“Having so many people pinching our salt and pepper pots is, I suppose, a back handed tribute to how well these items have been designed.

“We’re expecting a last minute rush when fans realise that their supply is coming to an end.” www.virginatlantic.com

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Z Hotels in the middle of Soho

Said to be the UK’s newest hotel group, Z Hotels, will launch today (10 October) a flagship property in the heart of London’s Soho.

With room rates starting from just £85, Z Hotels Soho is the first hotel to be designed with what the property calls the “Urbanite Stay”, short stay accommodation offering high quality at an affordable price in prime city centre locations.  All rooms feature the latest 40” LED High Definition TVs with all Sky Sports and Sky Movies available at no extra cost, power showers, i-docking stations, and free wi-fi throughout the hotel.  This first hotel is situated in Soho just off Cambridge Circus, essentially in the heart of the capital’s entertainment area.

The 85-room property is a conversion of 12 Georgian townhouses.  The Z Café will provide a pleasant oasis at any time of the day or night.

A number of further Z hotels are due to launch in central London this year and next. www.thezhotels.com

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AND FINALLY - A motoring week means a motoring story

As the officer makes out the second ticket for the illegal radar detector unit, the man glowers at his wife and says through clenched teeth,

'Woman, can't you keep your mouth shut?"

The officer frowns and says, "And I notice that you're not wearing your seat belt, sir. That's an automatic £75 fine."

The driver says, "Yeah, well, you see, officer, I had it on, but I took it off when you pulled me over so that I could get my licence out of my back pocket."

The wife says, "Now, dear, you know very well that you didn't have your seat belt on.  You never wear your seat belt when you're driving."

And as the police officer is writing out the third ticket, the driver turns to his wife and barks, "WILL YOU PLEASE SHUT UP?"

The officer looks over at the woman and asks, "Does your husband always talk to you this way, Ma'am?"

I love this part.

"Only when he's been drinking."

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Accor’s MGallery Collection for London

Following the announcement last week of a major UK expansion for its Mercure brand, giant French hotel group Accor has now revealed that the prestigious St Ermin’s Hotel, St James, has become part of its MGallery collection.  The Accor involvement follows an impressive £30m transformation and restoration of the historical property by its new owners, US real estate development firm Amerimar Enterprises.

With the opening of the St Ermin’s, MGallery now has its first British foothold and has confirmed that it is looking for further properties of character in the UK that fit into the global brand.  At present there are 45 MGallery properties around the world, each one carefully selected including the Hotel Century, Old Town Prague; Caracciolo, Naples and the Hotel Rotary, Geneva.  The St Ermin’s has 331 guest rooms including 41 deluxe suites and the wonderful galleried Crystal Ballroom with a capacity for up to 120 diners. www.sterminshotel.co.uk

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Atlantic Airlines returns to Coventry Airport

Atlantic Airlines, part of the West Atlantic Group, Europe's largest regional specialist cargo airline, has re-introduced scheduled freight operations at Coventry Airport after a gap of nearly two years.  For the immediate future West Atlantic will base two BAe ATP turboprops at the airport serving Dublin, Lille and Maastricht.  Discussions are thought to be taking place regarding scheduled passenger services too.

In December 2009 the airport ceased operations after a High Court hearing, however the lease was acquired by Sir Peter Rigby's Patriot Aviation Group on 28 April 2010.

West Atlantic was created in 2008 through the merger of two of Europe's most established independent cargo airlines, Coventry-based Atlantic Airlines, and West Air Sweden.  Now employing over 450 staff, and with a fleet in excess of 50 aircraft, Coventry Airport serves as the airline's operational headquarters and is a major engineering base. www.westatlantic.eu

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CityFlyer for 2012

British Airways subsidiary CityFlyer, based at London City Airport (LCY), says that its 2012 schedule will stay much the same as the very successful programme operated this year.  Despite persistent rumours that British Airways will introduce a Boston service, to complement the New York Airbus A318 operation via Shannon, nothing seems to be happening on that front.  The LCY aircraft are the only ones of their type in the BA fleet, and factory fresh planes are probably 18 months away. 

CityFlyer has carried nearly 60% more customers to sunshine destinations from the Docklands airport compared to last year.  According to BA CEO Keith Williams the business has now turned around, a major contributory factor the introduction of the Embraer 170 and 190 series aircraft.

Luke Hayhoe, General Manager Commercial BA CityFlyer, said: “We first introduced leisure flights to Mallorca and Ibiza last year and they proved so popular we extended the season and brought them back this year.  We also introduced year-round flights to Faro and Malaga this year giving customers the option of some winter sun destinations as well.” www.ba.com

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Heathrow Terminal 3 gets airside guest rooms

Transferring passengers with at least two hours to spare before a connecting flight can now take advantage of the UK’s first ever airside guest rooms operated by No.1 Traveller in Heathrow Terminal 3.

Building on the successful launch of No.1 Traveller’s flagship ‘super-lounge’ in Terminal 3, the airport hospitality specialist has now launched the facility accessible to all passengers departing from and transferring through Terminal 3.  Twelve en-suite cabin-style rooms are offered for stays of two or more hours, with a mini-bar, complimentary internet access, an internet phone and room service, plus infant cots available on request.  The bedrooms are perfectly suited to transferring passengers with a layover in the airport, giving travellers the opportunity to catch up on some sleep in soundproofed rooms and have a shower between flights.

The guest rooms are situated next to No.1 Traveller’s flagship lounge at Terminal 3.  The lounge boasts a broad and innovative range of facilities, many of which have never before been available to all passengers departing from or transferring through Heathrow Terminal 3.  These include the Snug (quiet room), two games rooms, showers, cinema, family room and a travel spa.  Each room costs £20 for a single or £30 for a twin room per hour. www.no1lounges.com

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Passenger traffic slows down

The International Air Transport Association (IATA) announced traffic results for August.  While passenger demand was up 4.5% over the previous August, this represents a significant slowing from the 6% recorded in July.  The decline in freight markets accelerated.  The 3.8% contraction in freight markets recorded in August was more than double the pace of July’s 1.8% decline.

“The industry has shifted gears downward.  The pace of growth in passenger markets has dipped and the freight business is now shrinking at a faster pace.  With business and consumer confidence continuing to slump globally there is not a lot of optimism for improved conditions any time soon,” said Tony Tyler, IATA’s Director General and CEO.

Comparisons of July to August more clearly indicate the slowdown.  The total passenger market fell by 1.6% in August compared to July.  International markets declined by 1.8%, while already weak domestic markets shrank by 1%.  The total cargo market fell by 1.3%. www.iata.org

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Ryanair Cash Passport

The world’s most annoying airline, Ryanair, has been found out when it comes to the use of the carrier’s new compulsory charge card, allegedly the cheapest way to book a seat on the airline.

The user guide for the Ryanair Cash Passport reveals that after six months, anyone who does not use the card will be charged £2.50 a month for inactivity, while a £10 invoice will be made every time the card goes into negative territory because of the inactivity fee.  The more you don’t use it the larger the bill!

The list of fees is quite comprehensive.  Besides the ones listed above you can be charged for ATM use (£2), actual use of card when purchasing fee (£0.50), cash over the counter (£4), cash out card fee at a bank (£4), cash out fee through Card services (£6), and the addition of a further card (£6).

If you are caught out abroad and need to get cash, beg or borrow.  ATM withdrawals in a currency other than the currency of the Card will be exchanged to the currency on the Card at an exchange rate determined by MasterCard on the day the transaction is processed, increased by 5.75%. www.ryanair.com

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Starbow is a new Ghanaian airline

Aero Surveys Ltd, operating under the commercial name ‘Starbow’, based in Accra capital of Ghana, has commenced domestic operations with two BAe 146-300 regional jetliners.  The aircraft were supplied by Falko, based at Hatfield, now the owner of the BAE Systems’ commercial aircraft portfolio. (see AERBT 22 August 2011)

The two BAe 146-300 are equipped to high standards and configured with eight Business Class seats and 86 Economy Class seats.  Domestic services envisaged for ‘Starbow’ include routes centred on Accra and the important regional city of Kumasi and linking them to other destinations such as Tamale and Takoradi.

The company believes in the considerable potential for airline business in West Africa and will do its best to compete effectively within the Region.  Airline Business magazine, recently reported that 74% of Intra-African routes have no more than one daily flight and that some 50% of African city pairs are believed to be under served.  Aero Surveys Ltd plans to position its brand ‘Starbow’ in the West Africa region and will operate regional international flights with durations of up to two-three hours.  The company contracted Inflite UK to provide line and base maintenance. www.flystarbow.com

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REFLECTIONS FROM YOUR AVIATION LAWYER

In this second of the series Gates and Company discuss the EU Emissions Trading Scheme in Aviation

EU ADVOCATE GENERAL UPHOLDS ITS LEGALITY BUT IT'S NOT OVER YET!

“Glad that the Advocate General's opinion concludes that our law to include aviation into ETS is fully compatible with international law”, (Connie Hedegaard, EU Climate Commissioner, on Twitter, 6 October 2011)

Summary

It looks likely that the great Aviation Emissions Trade War can be resolved only through political agreement or the passage of time, but not legal action. Time has now almost run out before the aviation sector is included in the EU Emissions Trading Scheme (EU ETS), so barring any last-minute political agreement, we expect it now to come into effect, as planned, on 1 January 2012. The arguments about aviation and the EU ETS will continue, and we advise those who oppose it to monitor, closely and rigorously, its effects on their businesses: by 1 December 2014, the European Commission must report on the operation of the EU ETS in relation to aviation, and may make recommendations for change. Looking further ahead, there is no international agreement on the future of the EU ETS beyond the expiry of phase III in 2020, so there is still all to play for.

Analysis

The Advocate General found that the inclusion of international aviation in the EU emissions trading scheme was compatible with the provisions and principles of international law.

In particular the UK referring court asked whether the claimant airlines could rely on various rules of international law (including customary international law, the Chicago Convention, the Kyoto Protocol and the EU-US Open Skies Agreement) to challenge the validity of the EU ETS in relation to aviation. The Advocate General found that they could not. In particular, the rules of customary international law at issue determined the scope of sovereignty of States and limited their jurisdiction, but did not have an effect on the legal status of individuals. Further, since the EU was not bound by the Chicago Convention, such Convention could not be relied upon as a benchmark against which the EU ETS Directive can be reviewed. The Advocate General found that only Article 7 (applicability of laws and regulations of the parties) and the second sentence of Article 15(3) (application of environmental measures affecting air services) of the Open Skies Agreement could be a valid benchmark.

The UK referring court asked whether the EU ETS was invalid if and insofar as it applied the scheme to those parts of flights which took place outside the EU Member States’ airspace. The Advocate General found that this was not contrary to international law. The EU ETS Directive was concerned solely with aircraft arrivals at and departures from airports in the European Union, and it was only with regard to such arrivals and departures that the airlines had to surrender emission allowances in various amounts, depending on the flight. The fear of “extra-territoriality” was, according to the Advocate General, “untenable…based on an erroneous and highly superficial reading of the provisions of Directive 2008/101” (the aviation ETS Directive).

The Advocate General argued that the international agreements (Chicago, Kyoto, Open Skies) did not affect the validity of the EU ETS. There was no impermissible unilateral action by the European Union outside the ICAO framework since under the Kyoto protocol, the limitation and reduction of greenhouse gases was not the exclusive competence of the ICAO. The Open Skies Agreement did not rule out the application of market-based measures regarding aviation emissions.

Further, the inclusion of aviation in the EU ETS was compatible with the principle of fair and equal opportunity in the Open Skies Agreement. If the EU ETS Directive had excluded third country airlines from the application of the EU ETS then this would have given third country airlines an unjustified competitive advantage over their European competitors.

Finally, airlines were not charged fees, dues or other charges within the meaning of international-law agreements. The EU ETS was instead a market-based measure, the purpose of which was environmental and climate protection. Thus, the emission allowances that had to be surrendered were levied in respect of the emission of greenhouse gases, not merely fuel consumption or based on the persons or property on board.

Scheme will come into effect: legal process almost complete.

In the circumstances, it is not surprising that the Advocate General of the EU Court of Justice has found in favour of the EU’s Emissions Trading Scheme (“EU ETS”) as it applies to aviation. EU law on challenging legislation is still under-developed. We should expect that the full Court, when it rules in 2012, will follow the overall view of the Advocate General. There is no further Court in the EU to which appeal can then be made. Once the Court of Justice rules, the case reverts to the UK for conclusion of the litigation based on the Court’s ruling. The result will be that the UK’s implementing regulations will be found to be lawful, and the EU ETS will apply to aviation from 1 January 2012.

Political and economic battle remains.

No side wishes to back down. The EU’s stance has received a strong boost by this ruling. This will only intensify the political opposition, including from countries that played no part in this particular case. Consider the escalation of retaliatory threats:

• China forced the cancellation by one of its airlines of an order of European-manufactured Airbus, worth $ 3.8 billion. The Hong Kong airline was blocked prior to an announcement that was due at the Paris Air Show earlier this year.

• The US Congress is currently debating H.R. 2594, a bill that would empower the U.S. Secretary of Transportation to forbid U.S. carriers from participating in the EU ETS. The proponents have labelled EU ETS unlawful and unjust.

• Russia has equally threatened retaliation; the transport minister has been quoted as stating “Europe needs to understand that imposing EU ETS on sovereign states like Russia, China and the US could lead to consequences, not just for its airlines, but for the weak European economy.”

• The future debate and scope for influencing the EU ETS now resides at the political level. At this level, there is still a battle of predictions. These predictions concern: (1) the economics of (a) how airlines will be affected and (b) how economies will be affected; (2) the effect on emissions in the EU and the rest of the world; and (3) the future of global negotiations on climate change. Each positive prediction or optimistic forecast is contentious. For example:

• The grant of free allowances to operators between 2012 and 2020 will allow operators to invest in new aircraft, fuel-efficiency and alternative fuels (Connie Hedegaard). This remark was denounced as economically unrealistic.

• The airlines will be able to pass on the cost of additional allowances to their customers. This is hotly disputed: the argument against this is that airlines operate in a highly price-sensitive environment and therefore cannot pass through the additional costs.

• The Commission listed in its “Questions & Answers on the benchmark for free allocation to airlines and on the inclusion of aviation in the EU’s Emission Trading Scheme (EU ETS)” 98 States with no commercial carriers covered by the EU ETS. The purpose of this list was unexplained, but to the extent that it was designed to give the impression that the likely territorial effect of the EU ETS was apparently smaller, it was flawed. About one quarter of those States are in Latin America or the Caribbean, an area which has yet to see major growth in international aviation. Another quarter are blacklisted in the EU, wholly or partly; and various other States are small in relation to their aviation significance – the Marshall and Solomon Islands, for example.

• Over time, the battle of predictions will give way to a battle of experience under the ETS. There will be arguments about the economic effects (and the distribution of those effects) on aviation: are non-EU airlines better off compared to EU airlines, because at least non-EU airlines can avoid flying in the EU? Will short-haul high-frequency carriers suffer disproportionately to long-haul? To what extent and to what effect can the increased costs be passed to consumers? Which routes will become economically marginal as a result of EU ETS-related costs? Will there be route exits, a raising of barriers to entry and a reduction of route-specific competition, lowering economic efficiency? And perhaps the most serious question: will the unilateral approach of the EU lead to the marginalisation of the EU economy, as the major economic superpowers including the US, China, Russia and India find other routes through which to trade? In other words, to what extent will the inclusion of aviation in the EU ETS encourage the creation of new international hubs outside the EU? The experience of the EU ETS, and how such experience is interpreted, will be as contested as the earlier predictions. This will be the backdrop to the political debate of the future.

Conclusion

For the airline industry, the EU Court’s preliminary ruling will have been unwelcome, even if unsurprising. Despite the Advocate General’s clear dismissal of the questions put to the Court, the legal ground remains contentious amongst experts and will not go away. Practically, however, the immediate concern will be compliance, and making the best of the situation, whilst storing up evidence for the future. Meanwhile, the international trade battles at a political level will continue. www.gatesandpartners.com

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