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«Annex 1: News AIR TRANSPORT: QUARTERLY REPORT NO.12 3rd QUARTER 2006 (July to September) A EU/REGULATORY Commission approves public financing for six ...»

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Annex 1: News

AIR TRANSPORT: QUARTERLY REPORT NO.12

3rd QUARTER 2006 (July to September)

A EU/REGULATORY

Commission approves public financing for six regional airports in Ireland

High-level conference discusses future of aviation regulation

EU – African Union aviation seminar: meeting the needs of modern aviation

Commission approves changes to social aid for Martinique

EU and the Republic of Korea seal their agreement on GALILEO

Commission opens formal enquiry into restrictions to air services to Sardinia

Commission wants to strengthen the Single Market for Aviation

Cooperation agreement with the USA on modernising air traffic management

Proposed Regulation on common rules for air services in the EU

Passenger Rights & Air Safety - a Commission priority

European air traffic management systems and a Single European Sky

B AIRLINES

LCC routes announced for next quarter

Flybe considers charge for offline check-in

LCCs main drivers of aviation growth

German regulator clears Air Berlin's takeover of DBA

Ryanair launch mobile in-flight telephony

Ryanair pressing ahead with baggage charges

EasyJet to charge for extra baggage as restrictions continue

TUI outlines expectations from carrier merger

Online travel makes further inroads into package arena

Avion to boost traffic with French tour operator deal

ATOL failures nearly doubled

Turkey's Fly Air drops scheduled domestic operations

MyTravel admits UK business will make £10-£15m loss this year

Thomas Cook releases trading update

Air Plus Comet to restructure as long-haul low-cost carrier

Omni to acquire TAP's White charter carrier for $6.5m

Royal Caribbean acquires Air Pullmantur from Grupo Marsans

FlyNordic turns to charter to counter losses

Kuoni reports half-year profits amid chairman's resignation

Internet and budget airlines fuel package holiday decline

Ski market sees highest growth in five years

Mirpuri Group disposes of Portuguese carrier Air Luxor

ERA members report growth

Actuarial valuation sees BA pensions deficit reaching £2.1b

Lufthansa board approves order for up to 65 Airbus

Air France axes flights due to new train link

Iberia's new budget carrier to operate as 'Clickair'

Alitalia patience wears thin as conditions tied to Volare approval

Air France-KLM to begin RFID baggage-tag trials

C CARGO AND INTEGRATORS

Italian startup Cargoitalia receives US rights

Lufthansa offers $85m to settle cargo cartel civil lawsuits

Greek carrier Sky Express to start cargo flights

Sweden's West Air to launch CRJ200 freighter

Air Foyle winding down after split from Antonov: founder

D AIRPORTS

EasyJet CEO criticises airport development

Expansion at Tallinn airport

Ferrovial to take over Peruvian airports

Privatisation at Leeds-Bradford

Aena to expand Valencia airport

E AIR TRAFFIC MANAGEMENT

Balkan region to discuss functional airspace block strategy

Joint French-Swiss airspace scheme could extend to Italy

EC adopts 'Single Sky' ATC interoperability regulations

F SAFETY AND SECURITY

BA expects £40m hit from August's UK security threat

G ENVIRONMENT

EasyJet CEO lambastes environmental lobbyists

Eurocontrol eyes green tax options

Cleaning the sky

H AIRCRAFT MANUFACTURERS

ATR Announces a new contract for four new ATR72-500 aircraft

Boeing unveils new 737-900ER

New Airbus chief to bide time before A350 XWB launch

–  –  –

Commission approves public financing for six regional airports in Ireland IP/06/1262 The European Commission decided on the 26th of September to allow the Irish government to finance infrastructure developments at six small regional airports. The measure in the form of capital investment expenditure, will last 5 years (2006-2010) and provides funding of up to €65.5 million to the airports.

High-level conference discusses future of aviation regulation IP/06/1224 Fragmentation of the aviation regulation system still remains a problem. On the 20th of September high level representatives of the national civil aviation administrations, aviation industry and the Commission met in Brussels to find ways to improve the efficiency of the system, cut costs and cover possible gaps in safety.

EU – African Union aviation seminar: meeting the needs of modern aviation IP/06/1203 A European Union – African Union aviation seminar for African States and Regional Economic Communities was held on 13th-14th September in Brussels. The event was organised jointly by the European Commission and the African Union in order to share information on the regulation and functioning of the EU internal aviation market and its relations with third countries. The seminar brought together the aviation authorities from 30 African States, Regional Economic Communities and specialised organisations in the field.

Commission approves changes to social aid for Martinique IP/06/1180 The Commission approved on the 13th of September changes to a social State aid scheme for certain categories of passenger flying from Martinique to metropolitan France. The changes will compensate for the much higher transport costs faced by inhabitants of the island in comparison to the inhabitants of metropolitan France.





EU and the Republic of Korea seal their agreement on GALILEO IP/06/1170 During the EU/South Korea summit held in Helsinki on the 11th of September, the two parties formally signed an agreement on co-operation on the European satellite radio navigation programme GALILEO. The agreement provides for numerous areas of co-operation, including cooperative activities in the areas of scientific research and training, industrial cooperation, trade and market development, standards, certification and regulatory measures.

Commission opens formal enquiry into restrictions to air services to Sardinia IP/06/1067 On 26 July 2006 the Commission decided to open a formal investigation into the rules imposed by Italy on 2 May 2006 on 16 air routes between three Sardinian airports and important airports on the Italian mainland. The Commission has serious doubts as to the conformity of the Italian public service obligations with the aviation market rules and considers that they may close the market to Sardinia. Italy has to react within two months upon receiving the Commission’s notice.

Cranfield University: Quarterly Report Q3 2006 ANNEX 1: News 2 Commission wants to strengthen the Single Market for Aviation IP/06/1010 The European Commission adopted on the 18th of July a proposal to modernise the Single Market legislation for aviation. The proposal will ensure a consistent application of EU legislation in all Member States, thereby creating equal conditions for all airlines. It imposes transparency in fares announced to passengers. It addresses shortcomings in the legal framework for the Single Aviation market in order to enhance its efficient working.

Cooperation agreement with the USA on modernising air traffic management IP/06/1009 Vice-President Jacques Barrot, the Commissioner responsible for transport, and Marion C.

Blakey of the US Federal Aviation Administration (FAA), recently signed a cooperation agreement that will ensure coordination between their respective programmes for the modernisation of air traffic control, SESAR on the European side, and NGATS (“ Next Generation Air Transport System”) on the American side.

Proposed Regulation on common rules for air services in the EU MEMO/06/294 The text gives answers for the questions concerning consumer protection, an operating licence and more stringent control over them, consequences for relations with third countries, the rules with regard to the leasing of aircraft and also those with regard to public service obligations (PSO).

Passenger Rights & Air Safety - a Commission priority MEMO/06/293 This memo recalls the initiatives taken by the European Union to protect air passenger rights and ensure high safety standards in aviation. A new element is that since 16th of July passengers have the right to be informed about the identity of the airline which will operate the flight(s) for which they have made a reservation.

European air traffic management systems and a Single European Sky IP/06/940 The European Commission adopted on the 6th of July two Regulations concerning the interoperability of European air traffic management systems. The two actions aim at modernising air traffic management systems.

B Airlines

B1 Low-cost carriers LCC routes announced for next quarter Air Baltic Zurich to Riga, thrice weekly.

BMIbaby closing Durham Tees Valley base (6 routes). Expanding operations at Birmingham.

EasyJet Munich to Basel and Geneva.

Flybe has shelved plans for a domestic operation in France or Spain. It is to add four weekly services between Inverness and Belfast.

Flyglobespan Daily Liverpool - New York service. From November, Manchester to Cape Town and Toronto. Glasgow to Barbados, Las Vegas and Boston from January. Tenerife services from Aberdeen and Durham Tees Valley.

Cranfield University: Quarterly Report Q3 2006 ANNEX 1: News 3 Jet2 Salzburg from Leeds Bradford from December four times weekly. Frequency to Geneva up to eight weekly flights. Adding year-round flights between Manchester and Bergamo Ryanair to axe its Stockholm Vasteras-Luton service, halve its Malmo - Stansted service and reduce Gothenburg-Prestwick frequency following a new environmental tax on departing passengers. Canceling Dublin to Humberside and Malta and has suspended Luton to Brest, Nottingham East Midlands to Nimes, and Shannon Nantes for the winter period. Route announcements include:Prestwick to Derry, Eindhoven, Riga.

Hahn to Balaton (Hungary), Billund Biarritz, Nantes and Valencia.

Dublin to Oslo, Grenoble, Friedrichshafen, Tampere, Almeria, Rzeszow, Seville, Billund Vittoria, Madrid Pula Bologna, Fuerteventura, Tenerife, Alghero and Trapani.

Stansted to Perugia Luton to Malta.

Pisa to Billund, Seville, and Malta.

SkyEurope Paris to of Salzburg, Prague to Turin, Romania and Rome, dropping Innsbruck.

Vueling Barcelona to Valencia.

Flybe considers charge for offline check-in 14Sep06, ATI Flybe is considering charging passengers who check-in for flights at the airport rather than through the Internet as a means of boosting ancillary revenues. SkyEurope introduced seat selection during the flight booking process on all it services for a €5 fee.

LCCs main drivers of aviation growth 14Sep06, businesstraveleurope LCCs are still the main drivers of aviation growth according to a new figures from OAG.

Capacity on no frills carriers has doubled in the last four years from 22,000,000 seats on 169,000 flights in September 2002 to 46,000,000 seats on 323,000 flights in September 2006 While world air transport grew by 2% last year, the volume of low cost flights worldwide grew by 14%. OAG said LLCs now accounted for 17% of all seat sales and 15% of all flights across the world. It said that about 18% of the flights in Europe and the US were now by LCCs.

German regulator clears Air Berlin's takeover of DBA 06Sep06, ATI German competition regulators have approved Air Berlin’s acquisition of low-fare carrier DBA, stating that the tie-up will help counter Lufthansa’s domination of the market. Air Berlin agreed to acquire Munich-based DBA in August 2006.

Ryanair launch mobile in-flight telephony 4th Sept ABTN RYANAIR has announced that the airline’s entire fleet of Boeing 737 aircraft will be fitted with OnAir's onboard mobile communications solution. The deal means that from mid-2007 (subject to relevant regulatory approval) Ryanair's passengers will be able to call, text and email using their mobile phones, BlackBerrys and Treos at rates which will mirror international roaming charges.

Ryanair pressing ahead with baggage charges 31Aug06, ATI Ryanair remains committed to moving ahead with its quest to reduce the number of passengers checking in bags on its flights, despite recent UK measures temporarily restricting the amount of hand luggage that can be taken on board.

Cranfield University: Quarterly Report Q3 2006 ANNEX 1: News 4 EasyJet to charge for extra baggage as restrictions continue 18Aug06, ATI Budget carrier EasyJet introduced in September a checked baggage charge aimed at expediting the check-in procedure at airports while heightened security restrictions are in place in the UK.

B2 Charter carriers/leisure groups TUI outlines expectations from carrier merger 28Sep06, ATI German tour operator TUI Group plans to generate 60% of its bookings through the low-cost sector once it integrates its charter operator Hapagfly with budget carrier Hapag-Lloyd Express. Combining the fleet will create a single airline with 56 aircraft, primarily Boeing 737s. Hapagfly, the group’s traditional holiday carrier, will form the operational backbone while the combined company will benefit from marketing strengths of Hapag-Lloyd Express.

Online travel makes further inroads into package arena 26Sep06,TravelMole Online travel is seeing high growth, fuelled by dynamic packaging at the expense of the traditional package holiday. Lastminute.com says much of the online sector's forecast growth of 32% this year will come from dynamic packaging booked close to the departure date. The traditional package holiday sector has had a tough year, with the market down by 12%.

Avion to boost traffic with French tour operator deal 19Sep06, ATI Icelandic transport specialist Avion Group has agreed to acquire the French tour operator Vacances Heliades, which it will use to fuel the growth of its French charter carrier Star Airlines. Aix en Provence-headquartered Heliades, which specialises in travel to Greece and Cyprus, was established in 1980. Last year it generated an €80 million turnover, from which it derived €3.3 million in pre-tax profits.



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