Delta inundated with job applications

Delta Airlines have received an incredible 22,000 applications for only 300 jobs, read the full story here:

http://t.co/IbmfdY1S

Qantas and Emirates to form alliance

Here is another case of two airlines becoming cosy! Not a merger or takeover, but again the kind of strategic alliance that we have seen with the likes of KLM and Air France and their Sky Team partnership.

 

Qantas Airways has been given initial approval from Australia's competition authority for its proposed alliance with Dubai-based Emirates. The Australian Competition and Consumer Commission (ACCC) said the benefits of the tie-up, such as co-ordinating ticket prices and schedules, would outweigh the reduced competition.

It will make a final decision in March. Qantas and Emirates originally announced their partnership alliance plans in September. Neither airline is investing in the other.

The partnership with Emirates will see Australian carrier Qantas end its existing relationship with British Airways.

British Airways to fly to Chengdu

BA intend to offer a new 3 weekly flight to Chengdu, capital of Sichuan province, starting in next Autumn.

The flights will connect Heathrow to the city in south west China famous for being the home of the panda bear. British Airways CEO Willie Walsh believes that the new airport being built in Chengdu shows ‘vision and ambition’.

I have never been to Chengdu but I did visit Guangzhou (Canton) in April, and the engineering and infrastructure work going on was quite simply incredible. The Canton Tower (formerly the tallest in the world) is staggering. Going up to the top was not for the feint hearted.

Bag fees equal boost in profits for US airline companies

Many US airlines have introduced charges for second, third and fourth bags. Delta Airlines led the way with a staggering $233 million received for bag fees in 2012.

This has proven to be a financial lifeline to the bruised and battered industry. Read more here at CNN:

http://edition.cnn.com/2012/12/18/travel/airlines-bag-fees/?utm_medium=referral&utm_source=t.co&hpt=tr_c2

American and US Airways Merger Likely

It has been announced that the 4^th (American) and 5^th (US Airways) largest airlines in North America are looking at a possible merger which would create the biggest airline in the US and indeed the world, knocking Delta off its perch.

American Airlines transported some 107 million passengers in 2012, whereas US Airways had 57 million (of which myself and my school were customers on our October break Maths & Science vacation to Orlando, Florida!). Delta are number one with 152 million passengers.

American Airlines main hub is Dallas/Fort Worth, Texas whereas US Airways is Charlotte/Douglas in North Carolina. So it remains to be seen if they would divide into two geographical spheres of influence much as the way Aldi Nord and Aldi Sud perform for the German grocer.

This could be a massive boost for the new airline as they will have an incredible reach and competitive firepower, though they will naturally have to see where they cannibalise each other. And it is estimated that when a merger takes place of such a size there can be errors and mistakes in bookings. It has been said that it could take 2 years for it to all get smoothed over.

The merger has came about due to PESTEC factors such as the global recession and increased fuel prices – which is an airlines main expenditure.

The new airline could have an impressive fleet of 1,500 planes at their disposal and some 120,000 employees.

American Airlines parent company AMR filed for Chapter 11 bankruptcy at the end of November and AA hope to come out as a stand alone company, but that is now looking ever more remote.

Qatar Airways spot Dreamliner Faults

Seattle based Aircraft manufacturing giant, Boeing, have faced criticism from Akbar Al Baker, CEO of Qatar Airways over the new 787 Dreamliner aeroplane.

A recent Qatari bought Dreamliner developed electrical faults which are similar to ones discovered on a United Airlines Dreamliner, which forced the plane to conduct an emergency landing. The FAA also have stated that there are errors in fuel lines which could cause fuel to leak out or catch fire, which could result in catastrophic engine failure – not something customers of Dreamliner and indeed airline passengers want to hear.

Qatar Airways currently have 3 787 Dreamliners on their books with at least another 7 to follow. However it appears Dreamliners are not being built on time, another headache for airlines who have placed orders.

In 1997 Qatar Airways only had 4 aircraft but now have a large fleet covering 100 routes and destinations world wide. They are an expanding and emerging player in the aviation market, and aim to replicate the success of Emirates  - their Middle East rival.

But they need reliable planes to do this, and the Dreamliner was supposed to be the ultimate in comfort and efficiency. If Boeing don’t get their act together, European rivals Airbus may end up with a few extra orders.

A380 vs. Boeing 747-400

Here is a comparison of the Airbus A380 with the Boeing 747-400. This is from http://www.howstuffworks.com/ which is a useful website for Business students.

This comparison is based on the basic configuration of the A380, although several variations are planned, including the A380F (for freight).

Photos courtesy Airbus SAS (left) and Chris Sloan Airbus A380 illustration (left) and Boeing 747-400

	Airbus 380	Boeing 747-400
Measurements
Wingspan	79.8 m (261 ft 10 in)	64.4 m (211 ft 5 in)
Length	73.0 m (239 ft 6 in)	70.7 m (231 ft 10 in)
Height	24.1 m (79 ft)	19.4 m (63 ft 8 in)
Weight: Empty	610,700 lbs (277,000 kg)	393,263 lbs (178,756 kg)
Weight: Max Takeoff	1,234,600 lbs (560,000 kg)	875,000 lbs (397,000 kg)
Capacity/Layout
Crew	2	2
Passengers (three-class arrangement)	555	416
Seating configuration	Two decks, two aisles per deck	Two decks, two aisles main deck
Miscellaneous
Range	8,000 nm (14,800 km)	7, 260 nm (13,450 km)
Service ceiling	43,000 ft (13,100 m)	41,000 ft
Top cruising speed	Mach 0.88 (299 m/s)	Mach 0.92 (313 m/s)
Long-distance cruising speed	Mach 0.85 (289 m/s)	Mach 0.85 (289m/s)
Powerplant	4 Rolls-Royce Trent 900 turbofans (initially 70,000 lb thrust; cleared at 80,000 lb thrust) or 4 Engine Alliance GP7200 turbofans (approx. 82,000 lb thrust)	4 Pratt & Whitney PW4062 turbofans (63,300 lb thrust) or 4 Rolls-Royce RB211-524 H2-T (59,500 lb thrust) or General Electric CF6-80C2B5F (62,000 lb thrust)
*Sources: Airbus.com; Boeing.com; Airliners.net; Rolls-Royce.com; Pratt-Whitney.com; AirGuideOnline.com

Stay connected in the air

Apparently it has been going on for a decade, but for the vast majority of travellers once you are airborne the world of the internet is a no go. However that is about to change.

UK telecommunications firm Immarsat and US giant Honeywell are developing new satellite links to improve connectivity while in the air, ensuring people can stay in touch on the go and in the air.

For the full story go to BBC Technology news:

http://www.bbc.co.uk/news/technology-18021468

International Business News

DUBAI METRO OPENS!

In Dubai, the long awaited Dubai Metro opened some seven days ago and so far over 323,000 people have used the new transport system.

However there are still another 10 of 20 stations to be finalised and opened for commuters. How will it impact on Dubai? That remains to be seen as Dubai attempts to become the Las Vegas for the 21st Century or indeed the Entertainment Capital of the World (outside the United States at least!)

GLASGOW RAIL LINK AXED

Scottish ministers have been accused of being "anti-Glasgow" over the decision to axe the Glasgow Airport Rail Link amid concerns about spending cuts.

The city council said the move was "a dagger in the heart" of the west of Scotland economy.

Ministers highlighted significant investment in the city's transport, health and housing.

Up to £182m had been earmarked for improving the line between Glasgow and Paisley, with £47m already spent.

RECORD SALES FOR IKEA

Swedish furniture giant Ikea enjoyed record sales of 21.5bn euros ($30bn; £19.1bn), despite slowing growth.

Ikea said sales for the year to 31 August rose by 1.4%, down from 7% growth in the previous year.

"It has been a challenging year in which we have had to adapt to changed market conditions," said Ikea's new chief executive Mikael Ohlsson.

His predecessor slashed 5,000 jobs to cope with the drop in demand due to the financial crisis.

The company said it had opened 15 new stores worldwide since last September.


AIRLINE RAISES BILLIONS!

AMR, the parent of American Airlines, has raised $2.9bn (£1.8bn) of new financing to help it through the global downturn in air travel.

The group said $1bn of the total came from advanced sales of frequent flyer miles to Citigroup bank.

A further $1.6bn came from a sale and leaseback arrangement with General Electric's aviation division for planes it had already ordered.

The airline also said it would add capacity at key US airports.

Shares in AMR jumped 18% on the back of the news.

AFRICA ONLINE
A new high-speed undersea cable connecting East Africa with the rest of the world is poised to go live. The launch of the government-backed East African Marine System (Teams) comes as providers face a backlash over slow connection speeds and high prices.

Internet providers have increased speeds and lowered costs since the Seacom cable went live in August.

But users say services still remain too expensive for most ordinary Kenyans.

Senior government official Bitange Ndemo said there was evidence that some internet service providers (ISPs) were "fleecing the public".

Almost two months after the first high-speed cable made landfall, the highest residential internet speed offered by Kenya's largest ISP remains capped at one megabit per second (Mbps).

That speed is available only at night and at weekends, for an annual cost of $1,440 (£860). The average Kenyan annual wage is about $800, the UN estimates.