Proposed alliance partners British Airways, American Airlines and Iberia have offered to lease transatlantic take off and landing slots to appease European regulators. The trio are prepared to lease four daily slot pairs for other airlines to use on specified transatlantic routes from London.

BA said that the gesture has been made “to enable the European Commission (EC) to conclude its investigations into their transatlantic joint business.”

The slots can be leased from the airlines’ current slot portfolio, according to BA. The Commission has agreed that the airlines should be compensated financially by those airlines wishing to lease slots.

BA, AA and Iberia also need US Department of Transportation anti-trust immunity to operate their transatlantic joint business. The airlines received tentative approval in February (see the previous blogfor more information). The DOT are reviewing the order and will respond by the time frame established for comments.

BA chief executive Willie Walsh said: “We’ve offered to lease slots to gain EC approval for our joint business which will bring benefits to our customers, shareholders and employees.

“It will also enable Oneworld to compete on a level playing field with the other global alliances across the Atlantic.

“We’re pleased that the EC has recognised that we should be compensated for leasing the slots. This reflects the fact that there is an active slots market in London where slots are generally traded for value”.

The EC will now seek the views of interested parties on the airlines’ proposed commitments.

The first non-stop flights between London Heathrow and Taipei in Taiwan are to be introduced at the end of the month. China Airlines is to start the service three times a week from 28th March.

According to the airline, the new route is the first time that the UK has been connected by a non-stop service to Taiwan.

Return fares from London to Taipei start at £370.

The flight will depart from Taipei on Tuesdays and Sundays at 09.25 and arrive at Heathrow at 17.05, the London–Taipei flight will depart at 21.15 and arrive at 18.15 the following day.

A third weekly Thursday flight will depart Taipei at 09.25 and arrive at Heathrow at 16.55, before returning from London at 22.05, arriving Taipei at 19.05 the following day.

The airline’s chairman Philip Wei said: “As the leading airline in Taiwan, China Airlines is committed to promoting tourism, culture and the economic development of the island.”

Barcelona photo by Flickr User Jsome1

Year-round flights between London City Airport and Barcelona are being re-introduced by British Airways. The service was previously run only in summer but will now resume at the end of the month and will continue all year.

An extra Saturday morning service will be introduced in May, bringing the total number of flights to seven a week.

The expanded Barcelona capacity comes in addition to the start of flights to Majorca and Ibiza in May and an existing service to Madrid.

Luke Hayhoe, commercial manager for BA CityFlyer, the wholly owned BA subsidiary which will operate the services, said: “The Spanish destinations are proving extremely popular from London City Airport. Barcelona has traditionally operated as a summer only destination but there is a big demand from both business and leisure passengers for us to continue through the winter.”

Easyjet Ryanair advert source http://www.guardian.co.uk/media/2010/mar/03/easyjet-ryanair-asa#zoomed-picture

The Advertising Standards Authority has upheld a complaint by Ryanair against its rival EasyJet after they made a claim in an advertising campaign that claimed that the Irish competitor did not fly passengers “to the place you actually booked”.

The poster, which appeared on a train, suggested Ryanair flew to airports in the proximity of the cities promoted as destinations; but Ryanair successfully argued that the ad was misleading as it implied people would not fly to the city they booked to whereas the advertising and website made clear where the airline flew to.

Upholding Ryanair’s complaint, the ASA said: “While we noted EasyJet’s argument that the ad was merely a comparison between airport locations, we were concerned that by listing the airports which Ryanair flew to but only referring to the ones EasyJet flew to in much smaller print at the bottom of the ad and by not giving any data which readers might use to make an assessment of the facts, the ad did not achieve that end.

“We considered the challenging tone of the headline ‘Who loves flying you to the place you actually booked?’ combined with the implication that Ryanair misled customers and flew them to airports different to the ones they had booked was denigratory.”

EasyJet UK general manager Paul Simmons said: “It is a well-know fact that EasyJet flies to major airports whereas Ryanair serves out-of-town airfields which can be a two hour bus ride away from your destination.

“While we are disappointed by the ruling which is based on a technicality, we respect the ASA’s decision and will not repeat the advert in the same form.”

It’s rather ironic that Ryanair had to turn to the ASA to use the very same codes of conduct that in previous years they have had disputes over.

Foreign travellers to the US face paying a fee of $10 to help fund a planned new body to promote tourism to the country. The Corporation for Travel Promotion public-private partnership is due to be approved by President Obama after winning Senate approval.

The initiative is funded through a matching program of up to $100 million in private sector contributions and a $10 fee on visitors to the US who do not pay $131 for a visa to enter the country. The fee will be collected once every two years in conjunction with the Department of Homeland Security’s Electronic System for Travel Authorisation. This will mean the US taxpayer will avoid making any contribution.

The Corporation will work with the US departments of Commerce, Homeland Security and State to develop a nationally co-ordinated, multi-channel marketing and communications program to attract more international visitors and explain changing travel security policies.

Caroline Beteta, chair of the US Travel Association and president and CEO of the California Travel & Tourism Commission, said: “We know how successful a public-private partnership to promote travel can be from our own experience at the state level.

“With the best minds coming together from government and private industry to boost international travel to our country, we can make travel an even stronger economic engine for America.”

Commenting on legislation which establishes the Corporation, US Travel Association president and CEO Roger Dow said: “The United States Congress has sent a clear message that travel is a high priority to our nation and that tangible steps must be taken to increase travel to and within the United States.”

It has also been reported that US airlines must also take an active role in the new partnership, not out of good-will, but out of self-interest by purchasing advertising space on the DiscoverAmerica.com website once the site traffic has increased and thus improving their own exposure.

BA strike pic by Flickr User quinn.anya

I wrote about reactions to the possible British Airways strike earlier in the week which indicated a feeling of disenchantment towards the airline from passengers. However, a recent  consumer poll has found that 75% of people are actually behind BA in the dispute with its cabin crew, describing them as “overpaid and underworked”.

Only 20% of the 1,087 people asked gave support to the flight attendants, who they endorsed as being “the best in the industry”. The remaining five per cent said they would consider backing the strike but only if their flight was not affected by any disruption it brought about.

The online poll was conducted by Cheapflights UK. It closed two hours before the result of the Unite union strike ballot was announced.

Participants were asked whether they would support BA cabin crew if industrial action was called, choosing from three responses: Yes, No or Maybe. The results point to overwhelming support for BA in the row over pay and working conditions.

“This survey definitively adds the flying public to the chorus of voices already pleading with cabin crew to see sense and call off the strike,” said Cheapflights global brand director Joseph Sikorsky, a former BA head office employee.

“BA cabin crew are far more privileged than their counterparts at airlines such as Virgin Atlantic, Bmi and EasyJet.

“The changes that have been made to their working conditions reflect fundamental restructuring which is vital if the flag carrier is to avoid the fate of so many other airlines that ceased operations during the recession.

“The numbers speak for themselves, and our survey shows that passengers have no illusions about the gravity of BA’s predicament.

“Cabin crew will only add to their woes if they press on with this damaging and unjustifiable strike.”

Is this support for British Airways reflected by the readers of this blog? Let us know what you think by leaving a comment below, it’s always interesting to get some different opinions.

Yesterday’s announcement that British Airways cabin crew voted to give the union a mandate for industrial action is a “disaster” for the airline, according to Bob Atkinson, travel expert from travelsupermarket.com.

“Customers will get a sense of déjà vu as they face travel disruption yet again,” he said.

“But today’s result isn’t just a kick in the teeth for loyal BA passengers, it’s a disaster for both British Airways and BA’s staff, as all stand to lose out unless the airline re-engineers itself to compete in the cut-throat airline market. Customers are already deserting the airline – we have seen a significant 19% reduction in people clicking through to BA flights since this latest ballot started.

“Customers will undoubtedly be questioning why and how their travel plans could be disrupted by possible strike action yet again, and justifiably so” Atkinson added.

“What BA lacked last time was customer communication, so it is even more important that they get it right this time – with each and every customer. Travellers deserve to understand exactly how their bookings and plans will be affected, not left in limbo.

“Customers who booked before the ballot announcement on 18 January and have travel insurance covering strike action should be able to recover losses from making new bookings if their BA flight is cancelled. However, those who booked after 18 January or have no insurance will be left high and dry to make new arrangements if their flight is cancelled.

“Whilst BA may rebook, re-route or refund them for the original ticket price as a last resort, nothing is guaranteed. Availability for booking alternative destinations or airlines may not be ideal, and it’s almost certain that many customers will be forced to pay more for their revised travel plans should BA fail to deliver on an original booking.

“We urgently call on BA and Unite to resolve this long running issue once and for all, to put an end to the customer misery from this strike action, and to do so behind closed doors to allow the Great British travelling public to carry on with their plans undisrupted.

“It’s not surprising that many BA customers have opted to travel with alternative carriers where possible, and if this is not resolved we could see many more follow suit.”

After such a damning response to the latest news, I’d be interested to know if any of you echo this feeling and what your experiences have been with British Airways over the period of strike threats? Has it put you off flying with BA?

BA Tail picture by Flickr User Simon_Sees

Passengers face fresh risks of strike action with British Airways as it was announced today that the cabin crew backed the Unite ballot for industrial action. Unite have said that they don’t plan on announcing strike dates just yet as they hope to reach a negotiation with BA before resorting to strikes.

80.7% of the ballot papers were returned, with a whopping 78.7% voting in favour of industrial action. Len McCluskey, the union’s general secretary said this was “a clear indication of the deep sense of grievance that our members feel”.

The union has pledged that it will not allow the strike, which if it goes ahead will start 1st March at the earliest, to affect the Easter holiday plans of thousands of Brits. However, some crew writing online and commenting on the situation suggest that there is a plan to “play dirty” and strike around the long Easter weekend, causing chaos as services are backed up.

According to an online poll by Unite, some two thirds of cabin crew want ten days of action so that the message would be put across of disgruntlement at changes in salaries and staffing levels.

There is an official response to the ballot on BA’s website which states:

“In the weeks before and during the ballot period, Unite claimed that we had breached individual crew members’ contracts by making modest changes to on board crew numbers on flights from Heathrow. We have always said this claim was false, and it was rejected by the High Court three days ago.

The vast majority of crew who voted in this ballot will have done so before the High Court decision. We hope Unite will bear this fact in mind as it considers its next steps.”

In the event of strike action BA state that you will be able to:

 Rebook onto another British Airways flight to the same destination within 355 days of the original date of travel

Rebook onto another British Airways flight to/from the nearest alternative airport (for example, if booked to/from Boston you could rebook to/from Philadelphia or New York)

Cancel your booking and get a refund.

All of these booking options, of course, will be subject to availability.

BA will also keep you informed via email (or SMS text if you have supplied your mobile number) with any news which may affect your flight as soon as they can, to check your details are correct, click here.

The US Department of Transportation gave a nod in favour of a merger between British Airways and American Airlines this weekend, however it has been condemned by Virginboss Sir Richard Branson as a “kick in the teeth”.

Responding to the Department’s proposal to grant immunity from antitrust competition laws to American Airlines, Sir Richard said “consumers would pay the price for years to come” and it would “blatantly harm competition”.

Antitrust laws exist in the US to stop airlines from fixing prices and schedules but airlines can be granted immunity if it is thought that the end user will actually benefit from airlines working more closely.

The Department of Transportation said this weekend that it thought the merger would boost competition in the industry “by creating competition with the existing Star Alliance and the SkyTeam alliance, which already have been granted immunity.”

The Department said that if the merger gets final approval, the alliance partners which include Iberia, Finnair and Royal Jordanian Airlines, “would be able to more closely coordinate international operations in transatlantic markets.”

This proposed merger will only be approved if the airlines give up four pairs of the valuable transatlantic slots at Heathrow. Sir Richard said: “The US Department of Justice, who are the experts in competition issues, called for strict remedies to protect the public interest, because the alliance will blatantly harm competition and the consumer. The Department of Transportation has chosen to stick two fingers up at them. Millions of transatlantic travellers will be adversely affected if the alliance receives final approval.”

A spokesman said: “As verified by the DOT, their closer cooperation, made possible by antitrust immunity, will benefit customers with more travel choices and convenient schedules, expanded opportunities to earn and redeem frequent flyer miles, and greater availability of lower fares.”

Talks have already started in Madrid about improving the liberalisation of transatlantic air travel. European speakers will argue that the route is still dominated by US carriers and that European airlines should be able to merge with US carriers in order to benefit from the lucrative route. At the moment, US law prevents non-American companies from owning more than a quarter of the voting stock of American airlines.

To see my original blog regarding the merger, click here.

Cheapflights has hit back at research by search marketing agency Greenlight that suggested that it had suffered a 25% drop in search visibility.

The company said it “suspects their source data might be at fault” and that Greenlight may have placed too much importance and weight on the single word “flight”, suggesting it accounts for 59% of all searches.

A spokesman for Cheapflights said: “We respectfully disagree with this weighting and in fact, Cheapflights’ data shows this is a considerable over-estimation and skews the data.

He added: “According to Hitwise figures for last December, the term ‘cheap flights’ drives around 85 times more traffic than ‘flight’. In addition, the term ‘flight’ was not amongst the top 600 plus terms driving traffic to the industry. Only a few years ago the top name associated with the search word ‘flight’ was NASA!”

He added: “Applying Hitwise figures for December to Greenlight’s data would fundamentally change the order of most visible sites. We suspect it would leave Cheapflights.co.uk at or very close to the top of the pile.

“Whilst Cheapflights may not have top visibility for every flight related term, the Company’s attention is focused firmly on the terms that we believe are important for consumers, and consequently Cheapflights continues to enjoy strong visibility across the board.”

To view my previous blog connected to this story click here.