Sixth day of Alitalia strike grounds 40 flights

Alitalia was expected to cancel about 40 flights into or out of Rome’s Fiumicino and Milan’s Linate airports on Saturday, as a strike by air crew opposed to a takeover deal for the ailing airline entered a sixth day.

Around seven departure flights and 21 arrivals in Rome were set to be cancelled with length delays also expected, the Telenews agency reported.

The Italian news channel Sky Tg24 said that 16 flights in or out of Milan Linate would be grounded.

The airline grounded 60 flights in or out of Rome on Friday.

The pilots are striking in protest at a takeover deal by investor group Italian Air Company (CAI). The group made a binding offer last month for the air passenger transport activities of Alitalia, which was put in special administration in August.

Under the terms of its offer, CAI would take on 12,500 Alitalia workers while cutting some 3,250 jobs.

The airline, which is 49.9 percent state-owned, is losing about three million euros (3.8 million dollars) a day.

Antonio Martone, the head of the Italian watchdog for labour action affecting public services, said Thursday the strike was a “flagrant violation of the rules (and) a serious infringement of citizens’ rights.”

He issued a “final warning” to the representatives of the five unions to come to an agreement on the takeover deal.

The new Alitalia is set for takeoff on December 1.

Airlines Emergency Landing

Cabin crew and passengers have been taken to hospital after a Ryanair flight was forced to make an emergency landing in Italy.

Flight FR4102 from Frankfurt, which had 166 passengers on board, suffered multiple bird strikes which caused engine problems as it prepared to land at Ciampino airport near Rome.

Some passengers had to leave the aircraft via the emergency chute and the airport remains closed.

A Ryanair spokeswoman said: “Landing gear suffered substantial damage on landing, which will delay the aircraft being removed from the runway for some hours.”

“As a precaution two cabin crew and three passengers have been taken to a local hospital complaining of minor injuries.

“As a result Rome Ciampino Airport has been closed to all flights, including Ryanair’s, until sometime late this afternoon.”

“Ryanair sincerely apologises to all passengers affected by this disruption,” a spokeswoman added.

The aircraft is being examined by Ryanair engineers and the Italian Aviation Authority.

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Travel associations to Withdraw Support Singapore Airlines Company

Following the announcement of withdrawal of support of Singapore Airlines by all major travel trade associations namely: TAAI, IAAI, TAFI, ETAA, IATO and ADTOI, these associations have now decided to withdraw support to SilkAir, which is a subsidiary of Singapore Airlines from January 1, 2009. Biji Eapen, President, IATA Agents Association of India (IAAI), informed that the decision was taken jointly by these travel associations in view of non-compliance in paying five per cent commission to agents.

Travel trade associations are pressing for their demand of five per cent commission from international airlines, as agents have to pay 1.2 per cent Service Tax to the government on international tickets, while they have to pay 0.6 per cent Service Tax on domestic tickets.

New Investment To Develop Airport Services in Branson

An investor group planning the USA’s only privately developed and operated commercial airport, in Branson, Mo., has recruited AirTran as the resort destination’s first airline.

The discount carrier will operate one round-trip flight a day from its hub in Atlanta starting May 11, when the $150 million Branson Airport opens for commercial service. The fares will start at about $200 round trip, and the airline may launch other routes in Branson in the future, says AirTran spokesman Tad Hutcheson.

AirTran and Branson Airport officials plan to make a formal announcement Thursday.

Known for its mass-market entertainment and country music shows, Branson, which has about 7,500 residents, has no commercial airport, although it hosted about 8 million visitors last year. Nearly 90% of its visitors drive or take a tour bus, says Ross Summers, CEO of Branson/Lakes Area Chamber of Commerce. Those who fly usually land at Springfield-Branson National Airport, which is 55 miles north of Branson, or Drake Field in Fayetteville, Ark., which is 108 miles south.

Jeff Bourk, executive director of Branson Airport, says talks are continuing with other airlines, and he hopes to line up other carriers by May.

Construction began in July 2007 after Branson Airport, the company that owns and financed the airport, obtained funding. Its sole 7,140-foot runway has been completed. Its 58,000-square-foot terminal will have four gates, enough to handle about 1 million boardings a year.

Steve Peet, CEO of Branson Airport, says he was a passive investor in past attempts to develop the airport but took an active role in 2004 to spearhead the project. He raised $35 million of equity funding and $114 million in debt financing. Peet is also an owner of McLean, Va.-based Aviation Facilities, an airport consulting company that’s also the lead developer of Branson Airport.

Branson will pay the airport $8.24 for each arriving passenger, capped at $2 million a year. Also, much of the airport’s land has been donated to the county, which reduces the airport’s property taxes.

To attract AirTran, Branson Airport gave the airline exclusive rights to serve the airport from Atlanta and other cities for “a period of time,” Bourk says. He declined to elaborate on other assistance. “We’re not writing a check for $5 million or anything crazy like that. That’s all I can say.”

Qatar Airways Reported Flight and Passenger Traffic

Qatar Airways carried more than 12 million passengers last year, a gain of 35 per cent, and says it hopes to achieve similar growth this year, even as economic turmoil dampens demand for international air travel.

The Doha-based airline plans to redistribute resources to exploit emerging markets in Africa and Asia to counteract the fall in demand from Europe, said Ali al Rais, the executive vice president of commercial operations.

“Yes, there are drops in Europe,” he said. “But Africa and Asia are still resilient, and the ability to manoeuvre our assets gives us more control.”

The carrier expects demand for air travel in the Middle East to grow 4 per cent this year, down from an earlier forecast of 6 per cent. It said it would stay on course despite the slowdown and was investing aggressively to promote Doha as a major hub for international air travel. Its fleet is expected to increase from more than 60 to 110 in the next five years, while its route network will expand from 83 to 120 destinations during the same period.

“We are optimistic, being geographically located in this part of the world – I feel bad for airlines located in other parts,” Mr al Rais said.

But recent delays may prove worrying for the airline as it seeks to grow its network. Its inaugural flight to Houston was postponed for several months due to late aircraft arrivals, following a 58-day Boeing labour strike last year. The route is now scheduled to open on March 30.

A nearly two-year production delay of the Boeing 787 Dreamliner will affect Qatar Airways, which is seeking financial compensation from the US aircraft manufacturer – a standard course of action among airlines that is written into their purchase contracts.
“They already know they have been at fault,” Mr al Rais said in Dubai yesterday while promoting the Houston launch. “They know that the standard clause will kick in.”

Additionally, Qatar Airways’ new hub, tentatively named New Doha International Airport, will not be completed until 2011, two years later than originally expected. Mr al Rais said that a $US500 million (Dh1.83bn) upgrade of the existing airport in Doha would help ease capacity constraints until then.

The airline, which is targeting profitability in 2011 after launching in 1993, said official figures would be released in April, when it concluded its fiscal year. In its 2007 calendar year, the airline carried 8.87 million passengers.

Mr al Rais also put to rest reports that Qatar Airways was interested in the privatisation sale of Greece’s Olympic Airways,
“We have never been interested in taking any other airline or any other ventures,” Mr al Rais said.

The initial reports, coming from the Greek ministry of transport, had confounded analysts who follow the Doha airline’s heavy investment in cultivating a five-star image.

“What on earth did Qatar want with Olympic?” asked Addison Schonland, the chief executive at Innovation Analysis Group. “Qatar is a ‘new-age airline’ and any association with Olympic could only tarnish its image. Olympic’s brand is as dead as ancient Greece. Its labour trouble alone ensures that there is nothing worth saving.”
Qatar Airways expects to receive about 12 aircraft this year, including long-range Boeing 777s, to help it expand its reach as an ultra-long-haul carrier for international air travel between Asia, Europe and Africa.

Despite the dramatic fall in jet fuel prices, which closely follows crude oil prices, Qatar Airways does not plan to purchase jet fuel futures contracts, called hedging, because energy trading was “too volatile”, Mr al Rais said.