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  • News: Hogan calls time on traditional airline alliances

    Legacy airline alliances have outlived their usefulness, based on Abu Dhabi-based Etihad Airways’ president James Hogan.

    Hogan yesterday delivered a keynote speech on the International Aviation Club in Washington, DC.

    Hogan said Etihad Airways’ unique business model, that’s a mixture of organic growth, codeshares and minority equity investments, was proving very effective in building passenger numbers, revenue and profit for all its partners.

    “The traditional airline alliances have evolved into slow-to-respond, bureaucratic organisations which struggle to deliver added value to their member airlines, lots of that are now not compatible with one another.

    “If we glance on the consolidation currently occurring inside the airline industry, we’re also seeing more fragmentation in the alliances.

    “This goes to continue as members seek easy methods to operate profitably in a completely competitive environment with high fuel costs and usually slower global economic growth.

    “This month we can report our strongest ever first quarter results.

    “Our codeshare and equity partners have made a massive contribution to that financial success,” Hogan said.

    Etihad Airways owns 29 per cent of airberlin, 40 per cent of Air Seychelles, nine per cent of Virgin Australia and just below three per cent of Aer Lingus.

    It has 42 code share relationships worldwide.

    The airline posted a profit of US$42 million in 2012 and saw two of its equity partners – airberlin and Air Seychelles – return to profitability, meaning that every one five airlines are actually within the black.

    Hogan said that Etihad Airways’ equity alliance of minority shareholdings, enabled the airline to go into markets within local foreign investment limits and, therefore, without the complexities, approvals or expense attached to mergers or larger investments.

    “It is simpler, faster and much less expensive to grow through one-on-one partnerships with established, respected carriers than that’s to rely primarily on our own resources, and to begin from scratch in every market we serve.

    “We have hand-picked like-minded partners with whom we will work collaboratively to construct revenue across a broader network and decrease operating costs.

    “We specialise in our partners’ profitability up to our own, because we’re not facing competing interests. 

    “When the five chief executives sit to make decisions, we have now a shared commitment to make things happen,” he said.

    Hogan said that because Etihad Airways had skin inside the game it may well go much further than legacy alliances in thinking innovatively and building relationships that delivered ongoing value.

    “An example of innovation is the best way we’re now working with our equity alliance partners to develop ‘centres of excellence’ wherein operational and commercial expertise is pooled to deliver best practice around the group.

    “Cooperation includes fleet and engine acquisition, maintenance, recruitment and coaching. That’s real value-add for our equity alliance and i’m confident it’s the way forward,” Hogan concluded.

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  • Marriott extends AC Hotels three way partnership

    Marriott International has continued the growth of its three way partnership with AC Hotels with the hole of 2 new properties – the AC Hotel Nice at the French Riviera and the AC Hotel Sant Cugat in Catalonia, Barcelona. 

    The two new hotels shall be welcome additions to the AC Hotels by Marriott brand, which launched in 2011 and now offers over 80 hotels across Europe.

    After an intensive renovation, the AC Hotel Nice opened on April 1st 2013.

    The 143-room downtown hotel overlooks the Mediterranean Sea just steps from Promenade des Anglais. 

    Standout hotel features include a wide ranging terrace with heated swimming pool and a soothing hotel Zen garden.

    In addition to 22 suites, the hotel has three conference and banqueting rooms, accommodating as much as 100 guests. 

    The Acropolis Congress Centre is purely a brief distance away making it ideally appointed accommodation for business in addition to leisure travellers.

    The AC Hotel Nice is the second one AC Hotel by Marriott hotel to open in France joining the AC Hotel Ambassadeur Antibes-Juan Les Pins, which opened last summer. 

    Another French property, AC Hotel Paris Porte Maillot, was announced in September 2012 and is determined to open in early 2014.

    The newly opened AC Hotel Sant Cugat is conveniently located within the business area of Sant Joan.

    The hotel has 152-rooms and several other function rooms for meetings and events.

    The hotel’s AC Lounge is a pretty, multi-purpose space open 24 hours where guests can relax with free Wi-Fi.

    The affluent suburb of Sant Cugat del Valles is abundant with beauty and heritage and has convenient connections to central Barcelona. 

    Local attractions include the Benedictine monastery of Sant Cugat and the medieval castle Castell de Canals.

    “We are delighted to be developing the presence of AC Hotels by Marriott in France and across Europe with these two exciting new openings in such current locations,” said Amy McPherson, president and managing director for Marriott International in Europe. 

    “Nice and Sant Cugat del Valles are popular destinations for both business and leisure travellers and fit perfectly with the brand’s associated modern comfort and concrete style.”

    The new hotels join over 80 existing AC Hotels by Marriott throughout France, Spain, Italy and Portugal. 

    AC Hotels by Marriott is a part of Marriott Rewards, one of the most world’s largest hospitality loyalty programmes with over 37 million members.

  • News: British Airways places order for 18 Boeing Dreamliners

    International Airlines Group (IAG) has reached agreement with Boeing for brand spanking new long-haul aircraft for the group’s fleet.

    IAG plans to transform 18 existing Boeing 787s options into firm orders for British Airways.

    They may be used to exchange among the airline’s Boeing 747-400 aircraft between 2017 and 2021.

    For Iberia, IAG has reached agreement with Boeing to secure commercial terms and delivery slots which could result in an order for Boeing 787s.

    Firm orders will only be made when Iberia has restructured and reduced its cost base and is ready grow profitably.

    British Airways’ 787s would be powered by Rolls-Royce Trent 1000 engines.

    The engine order features a comprehensive maintenance package with total care agreement.

    Willie Walsh, IAG chief executive, said: “British Airways has 24 Boeing 787s on order already and we plan to raise this by an additional 18 aircraft by exercising our options. 

    “The aircraft offers a step change in fuel burn efficiency versus our existing aircraft with improvements in fuel cost per seat of greater than 20 per cent.

    “New technology engines and improved aerodynamics will lower fuel burn resulting in reduced carbon and NOx emissions.

    “The creation of IAG has led to greater buying power for both airlines through joint procurement and we have got been in a position to obtain delivery slots for Iberia as a part of British Airways’ order”.

    British Airways has 118 wide-bodied long-haul aircraft in its fleet with 42 aircraft (12 A380s, 24 B787s, six B777-300ERs) already ordered.

    Iberia has 31 wide-bodied long-haul aircraft in its fleet with six A330 aircraft already ordered.

    The fleet order is subject to approval by IAG shareholders.

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  • Queen Mary 2 recalls maiden arrival of original Queen Mary into The big apple

    Queen Mary 2 sailed into Big apple on Saturday 1 June 2013, she arrived at the 77th anniversary of the maiden call of the unique Queen Mary in The big apple in 1936.

    Queen Mary’s Maiden Voyage began in Southampton on 27 May 1936 and she or he left to the sounds of bands and ecstatic crowds. On board were the famous bandleader, Henry Hall , scheduled to present a sequence of live radio broadcasts in the course of the crossing; the virtuoso harmonica player, Larry Adler ; and a well-known singer of the time, Frances Day , who performed a song written specially for Queen Mary by Henry Hall , ‘Somewhere at Sea’. And, much as she can have liked being at sea, Miss Day didn’t trust the ship’s eggs to be fresh by the top of the voyage so she took along her own chickens. Queen Mary received a rapturous welcome in Manhattan.

    Peter Shanks , Cunard President and Managing Director, said:
    “Since her launch to great acclaim in 2004, Queen Mary 2 has proudly continued the Transatlantic legacy of elegance and glamour that Queen Mary personified during her long reign of service – the legend lives on.

    “On this special anniversary, we’re also pleased to continue to name Ny our homeport inside the USA, a city which has embraced our ships during the centuries and played a prominent role in lots of of Cunard’s historical milestones.”

    77 years on, Queen Mary 2 left Southampton last Saturday (25 May) for brand new York. Onboard to talk is Jeffrey Weinberg , adviser to seven US Presidents, and passengers are enjoying our legendary entertainment including presentations from the Royal Academy of Dramatic Arts (RADA). Today the eggs – all 45,000 of them – are fresh and plentiful and our legendary experiences live to tell the tale.

    Queen Mary would cross the Atlantic another 1,000 times during her 31-year career before being retired in 1967. Queen Mary 2 will make her 200th crossing on 6 July in this, her ninth year at the Atlantic.

  • AC Hotels by Marriott continues European expansion

    Marriott International, Inc. has continued the growth of its three way partnership with AC Hotels with the hole of 2 new properties – the AC Hotel Nice at the French Riviera and the AC Hotel Sant Cugat in Catalonia, Barcelona.  The 2 new hotels can be welcome additions to the AC Hotels by Marriott brand, which launched in 2011 and now offers over 80 hotels across Europe.

    After an in depth renovation, the AC Hotel Nice opened on 1 April 2013. The 143-room downtown hotel overlooks the Mediterranean Sea just steps from Promenade des Anglais.  Standout hotel features include a wide ranging terrace with heated swimming pool and a calming hotel Zen garden.

    In addition to 22 suites, the hotel has three conference and banqueting rooms, accommodating as much as 100 guests.  The Acropolis Congress Centre is purely a brief distance away making it ideally appointed accommodation for business in addition to leisure travellers.

    The AC Hotel Nice is the second one AC Hotel by Marriott hotel to open in France joining the AC Hotel Ambassadeur Antibes-Juan Les Pins, which opened last summer.  Another French property, AC Hotel Paris Porte Maillot, was announced in September 2012 and is decided to open in early 2014.

    The newly opened AC Hotel Sant Cugat is conveniently located inside the business area of Sant Joan. The hotel has 152-rooms and several other function rooms for meetings and events.  The hotel’s AC Lounge is a gorgeous, multi-purpose space open 24 hours where guests can relax with free wi-fi.
    The affluent suburb of Sant Cugat del Valles is abundant with beauty and heritage and has convenient connections to central Barcelona.  Local attractions include the Benedictine monastery of Sant Cugat and the medieval castle Castell de Canals.

    “We are delighted to be developing the presence of AC Hotels by Marriott in France and across Europe with these two exciting new openings in such current locations,” said Amy McPherson, president and managing director for Marriott International in Europe.  “Nice and Sant Cugat del Valles are popular destinations for both business and leisure travellers and fit perfectly with the brand’s associated modern comfort and concrete style.”

    The new hotels join over 80 existing AC Hotels by Marriott throughout France, Spain, Italy and Portugal.  AC Hotels by Marriott is a part of Marriott Rewards, among the many world’s largest hospitality loyalty programmes with over 37 million members.