Airlines prepare for Europe-wide air traffic strike

 

Airlines are preparing for a Europe-wide air traffic control strike next Wednesday which could lead to mass flight disruption.

Germany’s air traffic controllers are planning to strike for one hour on January 29, in a show of support for an expected Europe-wide strike, their union boss told Reuters.

But he added that the German controllers could not do more without running the risk of legal action being taken against them.

The Air Traffic Controllers European Unions Coordination(ATCEUC), which represents 14,000 flight overseers across 28 European countries, has revived plans to strike over planned safety and savings targets by the European Commission, which it says could endanger the safe provision of services.

Airline suspends flights to cash-strapped Venezuela

The Ecuadorean airline Tame today suspended its once-daily flights to and from Venezuela until that country’s cash-strapped government pays it $43 million owed for ticket sales.

The carrier was the first to halt flights to Venezuela, whose socialist government owes carriers a total of $3.3 billion, according to Venezuela’s airlines association.

The airlines are victims of Venezuela’s rigid currency controls, which prevent them from repatriating proceeds from tickets sold in the oil-rich South American country.

Adding to difficulties, Venezuela’s bolivar has plunged to a tenth of its official value on the black market, making tickets purchased in Venezuela some of the cheapest in the world in dollar terms.

In recent weeks airline representatives have met with officials to discuss a government proposal to pay off the debt with a combination of cash, bonds and fuel.

But talks have so far failed to produce a deal and Tame and several other airlines are losing patience.

In Venezuela, the TV station Globovision reported that Air Canada had stopped selling tickets in the country.

No one answered the phone at Air Canada’s offices in Caracas and a local call center worker told The Associated Press that she had received orders to suspend all sales and reservations. She said she was not authorized to give her name.

The airline’s media office in Canada didn’t reply to an email request for comment.

Tame General Manager Fernando Guerrero told reporters in Quito, Wednesday, that Venezuela hasn’t paid the airline since March, the month that Venezuela’s longtime president, Hugo Chavez, died of cancer.

He says it costs Tame $5 million a month to keep the daily Caracas-Quito route operating.

Venezuela owes bigger airlines, such as Colombia’s Avianca, tens of millions of dollars.

Under new currency rules announced Wednesday, travelers will now be required to purchase tickets at a higher rate established at weekly central bank auctions, where the greenback currently fetches about 11 bolivars.

In Venezuela, government and airline officials were meeting to discuss the debt. According to Humberto Figuera, head of the airlines association, international treaties oblige governments to ensure airlines’ costs are covered.

Delta named Airline of the Year

ATLANTA, GA – Delta Air Lines has been named the 2014 Airline of the Year by Air Transport World magazine, the first time for a US carrier in a decade.

The ATW awards are among the most coveted and valued honors in the airline industry. In February 2014, ATW editors will present the 40th Annual Airline Industry Achievement Awards at a celebration in Singapore.

“It’s an honor to have the hard work of Delta people recognized with the Airline of the Year award from Air Transport World,” said Richard Anderson, Delta’s chief executive officer. “Our values and culture are the foundation for our success. The professionalism and commitment of Delta people to our company, to one another and to our customers is unmatched.”

In selecting Delta as Airline of the Year, ATW editors cited leadership in several categories, including innovation and leadership by executive management; strong financial discipline; a consistent and excellent safety record; proven leadership in community, environmental and technological endeavors; consistent high standards of customer service; and excellent employee relations.

“The airline industry, here in the U.S. and globally, has never been as competitive, so when ATW editors make their Airline of the Year selection they focus on those airlines whose leadership truly stand out from the crowd through strong financial discipline, innovative thinking, superb operational and customer service standards, and excellent employee relations, said ATW Editor-in-Chief Karen Walker. “Delta clearly met all those standards and has demonstrable, measurable statistics to prove it. Delta and its employees thoroughly deserve this award and I congratulate them on their achievements.”

Winners and their achievements will be featured in a special section of the ATW March 2014 edition. Additionally, highlights of the Gala Awards event will also be published in the ATW April 2014 edition.

Delta in 2013 was named No. 1 airline on the Fortune magazine “Most Admired” global airline industry list for the second time in three years, received the No. 1 ranking in the Business Travel News Annual Airline Survey for the third year in a row and was recognized as Best Domestic Airline at Travel Weekly Reader’s Choice Awards, among other accolades.

Thousands to be hit by transatlantic flight cancellations today

Thousands of passengers have been hit by widespread cancellations of flights to and from the northeast coast of the US today ahead of a severe snow storm that is expected to hit several cities including New York, Boston and Washington DC.

British Airways has cancelled all six flights to New York JFK from London Heathrow from 14.20 this afternoon and one flight that was due to leave for Newark at 17.25. A flight to Washington DC, due to depart at 14.30, has been cancelled, along with several return flilghts from both cities.

Virgin Atlantic said it has also cancelled some flights and it is urging passengers to check the status of their flights before travelling to the airport. Heathrow Airport said other airlines might also be affected.

The brunt of the storm is expected to hit the northeast today with heavy snow, reaching Washington first and New York and Boston by early afternoon.

Airlines have cancelled 279 flights at New York’s La Guardia Airport and 259 at Philadelphia International Airport, according to FlightAware, a Houston-based flight tracking service.

Forecasters expect up to 12 inches of snow to fall in New York and Washington over the next 24 hours, making it the biggest storm to hit the US capital for three years.

How Venezuela’s Currency Craziness Trashes Airline Service

Venezuela is cracking down on the scrape, a bargain-travel scheme widely reported last fall—and may wind up reducing its air service as a result.

Travelers in the inflation-wracked South American nation have been able to exploit the difference between the official exchange rate and the black market rate by buying airline tickets in the local currency and exchanging up to $3,000. That provision had meant flights from Venezuela got booked up months in advance and roused the ire of government officials, who are trying to conserve their supply of hard currency (the U.S. greenback), which has dwindled to a 10-year low. Due to Venezuela’s currency controls, airlines have $3.3 billion from their local sales “trapped,” as United Airlines’ (UAL) chief financial officer phrased it last week. Airlines are balking at the government’s offer to honor that debt with bonds, cash, and jet fuel, according to the Associated Press.

Panama’s Copa Airlines (CPA) has more than $400 million stuck in Venezuela and will likely need to write off some that it won’t be able to repatriate, Raymond James analyst Savanthi Syth wrote in a client note last week. Copa shares have dropped 14.5 percent this month, mostly due to investor concerns over its Venezuelan exposure. United said Thursday that it has $80 million awaiting repatriation from Venezuela, and it has also stopped selling tickets there for Copa, a partner airline.

The government said Friday that it would allow travelers to Florida—one of the top destinations for Venezuelans—to charge only $700 annually on their credit cards, down from $2,500. The measure also applies to travel to Colombia, Costa Rica, Panama, and the Dutch Antilles. The allowance for online credit card purchases at foreign sites was reduced from $500 to $300. The government will save $1.6 billion from the new rules, Bloomberg News reported Friday, citing a foreign trade official.

Venezuela has devalued its currency multiple times, including on Jan. 22 when it erected a dual exchange rate that is established via weekly auction. The latest auction rate is 11.4 bolivars per dollar, compared with the official exchange rate of 6.3 bolivars. The official rate had previously applied to travel allowances, airline tickets, and foreign remittances but those will now be subject to the higher auction rate. The devaluations have intensified inflation—currently near 60 percent—but make Venezuela’s debt service easier to manage.

As a result of the changes, several airlines have stopped selling tickets in Venezuela, including Air Canada, Air Europa, a Spanish airline, and Tame, an Ecuadorean carrier. Tame has also suspended its daily flight from Quito to Caracas owing to difficulties in repatriating about $43 million since April 2013. An Air Canada spokeswoman said that the airline’s flights from Toronto to Caracas will continue. Martha Pantin, a spokeswoman for American Airlines (AAL)—which flies to Venezuela from Miami, New York, Dallas, and Puerto Rico—says the airline has no plans to reduce its service and is working with the government to obtain its money.

Not so wonderful Copenhagen

Holiday-makers hoping to travel to Scandinavia this summer will be forced to fly from Manchester after a leading airline cancelled all flights from Liverpool to Copenhagen.

LN-DYE Norwegian Air Shuttle Boeing 737-8JP CN 39003

John Lennon Airport (JLA) confirmed the Norwegian Airlines north European route was to be halted in March, at the start of the summer season.

Flights were expected to run twice weekly – on Mondays and Fridays – until the end of October, but bosses said the service “has not performed to their expectations.”

The cancellation could mean up to 10,000 fewer travellers pass through the Liverpool airport this year, as 64 flights carrying more than 150 passengers will now not go ahead.

A spokesman for JLA said: “Norwegian have decided not to continue their twice weekly service to Copenhagen from Liverpool for the forthcoming summer season, as this route has not performed to their expectations.

“However we are continuing to talk to the airline about opportunities to other destinations from Liverpool for the Winter 2014/15 season as they continue to open other bases across Europe.”

John Royle, who visits Scandinavia four times a year to see his daughter, said the change could impact on how regularly he made the trip. He added: “Every time I have been on that route it’s been packed.

“I think it is such a shame. It’s just so inconvenient having to go to Manchester to travel.“We used to go four times a year. We could get to the airport in 20 minutes, but this means we may be forced to go less. I hope somebody comes along and reinstates the service.”

The loss of Norwegian Airlines followed last week’s news that JLA had losses of £7.1m in the 12 months to March 31 last year  – worse than the £6.5m loss reported in 2011/12.

KPMG, the airport’s auditors, warned in the airport’s annual report that “material uncertainty” cast doubts on the company’s ability to maintain the site.

A JLA spokesman said the company “remains optimistic over future growth in business and is working closely with a number of existing and new airlines.”

Yesterday the ECHO revealed talks were ongoing with German airline Lufthansa, though no concrete plans were yet in place for it to run services to and from Liverpool.

Contingency plans in place at Gatwick

Gatwick Airport has a team of emergency volunteers lined up to help out this weekend as more bad weather is expected to hit the UK.

At a conference call yesterday, airlines, handling agents and terminal staff were briefed on the contingency plans put in place to cope with more wind and rain.

The airport’s North Terminal experienced major problems on Christmas Eve when flooding caused power cuts. As a result, thousands of passengers suffered delays and cancellations.

But today a spokesman for the airport said mountains of sandbags and a water pump system have now been put in place to protect the power sub stations from flooding.

Strong winds and around 5-10mm rain are forecast this afternoon and again tomorrow, and up to 20mm of rain is expected to fall on Sunday.

On Christmas Eve, around 70mm of rain fell in under 24 hours.

“The main problem last time was that the nearby River Mole burst its banks, but the river is currently running at a low level,” said a Gatwick spokesman.

The airport is holding another conference call this afternoon to update staff and airlines.

At present flights are operating as normal.

No major disruption has been reported at other UK airports, but Ryanair said high winds were causing a few problems to its Ireland flights.

The Environment Agency has issued 21 severe flood warnings, which means ‘danger to life’ in south-west England, Gloucestershire and Wales.

Many of the warnings are along the coastlines of Devon and Cornwall.

Waves more than 30ft high are forecast to hit Devon, Cornwall and the Isles of Scilly today.

The Met Office has warned of flooding in Scotland and Northern Ireland.

Ferry services are being disrupted. See separate story.
Friday, January 3, 2014

Thousands of flights cancelled as winter storms sweep the US

Thousands of flights have been cancelled as a winter storm sweeps the US.

Nearly 1,500 flights have been cancelled today and more than 2,300 were cancelled yesterday, according to FlightAware.com. Thousands more flights were delayed.

Chicago O’Hare and airports in New York were badly affected, with New York’s JFK airport temporarily closed for snow removal.

Boston’s Logan Airport was forced to shut overnight and is expected to stay closed until midday local time.

Governors in New York and New Jersey have declared a state of emergency, urging people to stay indoors.

In New York City, contingency plans are in effect with NY governor Andrew Cuomo warning that some highways may have to close and the National Weather Service has issued a Coastal Flood Watch for New York Harbor and South Shore Back Bays of Long Island.

Yesterday, the National Weather Service issued a blizzard warning for Nassau and Suffolk counties on Long Island and parts of Massachusetts.

The forecast was for strong winds of up to 45 miles per hour, dumping as much as 14 inches of snow.

According to the blizzard warning, visibility on Long Island could be down to less than a quarter mile.

“Falling and blowing snow with strong winds and poor visibility are likely. This will lead to whiteout conditions making travel extremely dangerous. Do not travel,” said the warning.

Flight delays had a knock-on effect at airports nationwide with some delays occurring at airports as far apart as the West Coast and Florida.

 

Friday, January 3, 2014

 

Airline Operators Announce New Agreements, Amenity Kits, Stock Price Updates, and Operational Performance Report

NEW YORK, January 8, 2014 /PRNewswire/ —

Today, Analysts’ Corner announced new research reports highlighting Delta Air Lines Inc. (NYSE: DAL), American Airlines Group Inc. (NASDAQ: AAL), United Continental Holdings, Inc. (NYSE: UAL), Copa Holdings SA (NYSE: CPA) and AAR Corp. (NYSE: AIR). Today’s readers may access these reports free of charge – including full price targets, industry analysis and analyst ratings – via the links below.

Delta Air Lines Inc. Research Report

On January 3, 2014, Delta Air Lines Inc. (Delta Air Lines) released its financial and operating performance report for December 2013. The Company informed that the consolidated passenger unit revenue (PRASM) for December 2013 increased 10.0% YoY, driven by continuing strong demand and benefits from the timing of the Thanksgiving holiday. According to the Company, Delta completed 99.6% of its flights in December 2013 and ran an on-time arrival rate of 79.5%. The Full Research Report on Delta Air Lines Inc. – including full detailed breakdown, analyst ratings and price targets – is available to download free of charge at:

http://www.analystscorner.com/r/full_research_report/2ea3_DAL

American Airlines Group Inc. Research Report

On January 3, 2014, American Airlines Group Inc.’s (American Airlines) stock rose 4.65%, ending the day’s trading session at $26.54. Over the previous three trading sessions, shares of American Airlines climbed 7.10%, compared to the Nasdaq Composite Index, which declined 0.54% during the same period. The Full Research Report on American Airlines Group Inc. – including full detailed breakdown, analyst ratings and price targets – is available to download free of charge at:

http://www.analystscorner.com/r/full_research_report/fbd8_AAL

United Continental Holdings, Inc. Research Report

On January 2, 2014, United Continental Holdings, Inc.’s wholly owned subsidiary, United Airlines  reported the introduction of a special edition amenity kits, effective January 3, 2013, featuring the airline’s brand campaign, “Flyer Friendly.” According to the Company, the commemorative amenity kits are available for customers in United BusinessFirst on long-haul international flights departing from the United States, highlighting each of United Airlines’s eight North America hubs. According to the Company, each customer in BusinessFirst will receive one of the eight tin designs, which feature distinctive imagery that United Airlines commissioned specifically for the brand campaign. The Full Research Report on United Continental Holdings, Inc. – including full detailed breakdown, analyst ratings and price targets – is available to download free of charge at:

http://www.analystscorner.com/r/full_research_report/1486_UAL

Copa Holdings SA Research Report

On January 3, 2014, Copa Holdings SA’s (Copa) stock rose 1.16%, ending the day’s trading session at $160.20. Over the previous three trading sessions, shares of Copa climbed 1.11% compared to the Dow Jones industrial average Index, which declined 0.21% during the same period. The Full Research Report on Copa Holdings SA – including full detailed breakdown, analyst ratings and price targets – is available to download free of charge at:

http://www.analystscorner.com/r/full_research_report/97d2_CPA

AAR Corp. Research Report

On December 18, 2013, AAR Corp. (AAR) announced that it has been appointed by power management company, Eaton as the exclusive distributor to supply a variety of fluid distribution products to the Defense Logistics Agency (DLA). The Company informed that the aforesaid new five-year agreement has a five-year renewal option and will strengthen service and support for America’s military aircraft fleets by providing rapid-response capabilities for all branches of the US armed forces. According to the Company, under its distribution agreement, Eaton will supply AAR a variety of products that support aircraft fluid distribution including, Teflon hose assemblies, quick disconnect couplings, debris-monitoring devices, pressure switches and transducers, pneumatic ducting systems, clamps and flanges. John Holmes, Aviation Services Group Vice President – Aviation Supply Chain for AAR, said, “We value our expanding relationship with Eaton and are confident that this distributorship will provide a streamlined and efficient supply chain while offering a more centralized sourcing solution for the DLA.” The Full Research Report on AAR Corp. – including full detailed breakdown, analyst ratings and price targets – is available to download free of charge at:

http://www.analystscorner.com/r/full_research_report/6223_AIR

—-

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Airline passengers in the dark about rights, advocate says

As stories of frustrated and weary airline passengers dominate the news due to a combination of crowded flights and exceedingly bad weather, it seems clear that many don’t know much about what rights they can demand of the airline that left them stranded.

Airlines are federally regulated but the same government that is attacking telecommunications companies over cellphone charges and billing plans has resisted two NDP private members’ bills on an airline passenger bill of rights.

Gabor Lukacs, a Halifax mathematician and an airline passenger rights advocate, says most Canadian airline passengers simply aren’t aware of the rights they have when they’re bumped from overbooked flights, or when their flights are cancelled or their luggage lost.

Lukacs has taken on airlines several times in cases that resulted in important new rights for passengers. He estimates he has about two dozen cases filed with the Canadian Transportation Agency (CTA), an independent quasi-judicial tribunal that adjudicates passenger complaints on a case by case basis.

Gabor Lukacs

Consumer rights advocate Gabor Lukacs often helps airline passengers take their demands for compensation for delayed or cancelled flights to the Canadian Transportation Agency. (CBC)

When Lukacs was bumped from an overbooked Air Canada flight, he took his complaint to the CTA. The result was that the compensation Air Canada must pay bumped passengers was increased to amounts ranging from $200 to $800 depending on the length of the delay, a significant jump from the $100 in cash or $200 in vouchers previously offered.

He also helps passengers fight their own cases, and if complaints end up in the courts, he sometimes works as a clerk for lawyers representing aggrieved passengers.

Stranded in Paris

One of the passengers Lukacs advised was Rob Tonus, whose return flight to Toronto from Paris was cancelled in August 2012.

In a phone interview, Tonus explained he didn’t know his flight was cancelled until he checked Air Canada’s website the day before his scheduled departure. When he rebooked his flight for the day after he was supposed to fly home, he asked about hotel rooms and meals for him and his wife and two children. “It’s Paris, after all,” he said.

He said an Air Canada agent at a call centre told him there were no limits to what he could spend, something he asked her to confirm with a manager.

Tonus was initially told his flight was delayed due to a mechanical problem, although Air Canada later said the delay was because of a medical emergency on the incoming flight.

When he sent his receipts to Air Canada for a refund he was offered only $150 for each hotel room and $30 a day per person for meals, for a total of $420. (Later, the airline also offered him a 25 per cent discount for four future tickets, which he hasn’t used).

“I could have gone to the Ritz,” he said. He didn’t, but ended up spending over $1,200 for two hotel rooms and meals for his family in Paris, almost twice the amount Air Canada was willing to pay.

“We were staying at a Best Western. We’d been there for a couple of days already,” he said. He booked two rooms at the same hotel for another day but couldn’t get the same rate. “It’s not like we went whole hog.”

 

After hearing Lukacs talking about air passenger rights on CBC Radio, he phoned him.

Lukacs told him since his cancelled flight was departing from Paris, the European Union’s passenger rights policy applied to his case. He supplied Tonus with European case law backing up this position.

Tonus wrote to the French transport ministry, and on January 6, 16 months after his cancelled flight, he received an email from Air Canada promising to reimburse him for the full cost of his hotel rooms and meals for his family for the extra day he stayed in Paris.

Unlike Canada, the EU has a consumer friendly website that clearly and simply explains airline passenger rights. Lukacs said the rules are also prominently displayed in European airports.

Weather delays

Lukacs said that both in Europe and in Canada airlines do not have to compensate passengers for long delays or cancellations due to extraordinary circumstances such as bad weather.

“They have to fly you out at the next earliest opportunity … If we’re talking about two, three, four, five days after the storm and they still haven’t cleared their backlog, that means they’re doing something wrong and that will trigger liability,” he said

But bad weather doesn’t get airlines off the hook for compensating passengers for lost or displaced luggage.

“If the plane can’t fly, the baggage should be where the passenger is,” Lukacs said.

Air Canada couldn’t respond to questions from CBC News about Tonus’ cancelled flight in time for publication. The airline has been dealing with a host of media inquiries this week following a shutdown of Canada’s largest airport — Pearson International Airport in Toronto — due to cold and snow.

In an email to CBC News, the Canadian Transportation Agency detailed its efforts to make passengers more aware of their rights. It publishes a Fly Smart guide that urges passengers to consult each airline’s tariffs or conditions of carriage, available on their websites.

The tariffs, which must be compliant with the Canadian Transportation Act and the Montreal Convention, an international treaty that sets out passenger rights, can run to hundreds of pages.

”The Canadian Transportation Agency thinks passengers should read a long legal document and know that it’s your contract,” Lukacs said.

Tonus would like it to be easier for passengers to find out about their rights, which is why he’s eager to talk about his own experience. “Because that was a full plane. And I don’t think anybody has had the kind of success that I’ve had.”