102015

http://zeenews.india.com/news/world/virtual-gulfwar-in-air-at-iata-meet_1610183.html

Virtual 'Gulf War' in air at IATA

Meet
Miami: Aviation body IATA's annual meet got off to a stormy start here with Gulf
carriers attacking their American counterparts over "protectionism" and the latter
attempting to check their rivals' growth, saying they were doing so with unfair
government backing.
The issue came up for discussion at the inaugural session of the International Air
Transport Association's (IATA) annual general meeting and World Air Transport
Summit here, with Qatar Airways CEO Akbar Al Baker urging the IATA members to
support liberal air travel, calling protectionism a "threat" to aviation.
Baker read out a statement calling upon IATA to safeguard the flying freedoms of
airlines. Gulf carriers have accused their American counterparts of not allowing
them to fly freely to the US.
Etihad Airways, Emirates and Qatar Airways have been embroiled in a row since
January with Delta, American Airlines and United after the US carriers released a
55-page document detailing allegations of unfair government subsidies and other
financial incentives given to Gulf carriers.
The US carriers claim their Gulf rivals have enjoyed unfair financial benefits to the
tune of USD 42 billion over the past decade, in contravention of the rules of open
skies -? allegations refuted by the Gulf airlines.
The issue was mentioned in a passing reference by IATA Director General and
CEO Tony Tyler who said "it is no secret ...That there is an underlying tension in
our industry."
"It is often described as a rift between state-owned airlines and those owned
wholly or predominantly by private shareholders.
"Others see it in terms of government protectionism. Some interpret it as a clash
between aviation business friendly countries and those less focused on
maximising the economic and social benefits of connectivity," Tyler said while
presenting his annual report.
The matter is of special significance to India, which is the largest market for Qatar
Airways, Etihad and Emirates, whose joint share of traffic out of India to the US
and Europe is estimated to have quadrupled between 2008 and 2014 -? from over
8 per cent to 35 per cent.
Shaken by the development, the US and European airlines have virtually joined
hands to take on this stiff competition.
US airlines have already moved their government in a bid to persuade it to amend
the 'Open Skies' agreements with Gulf nations, which they claim were distorting
competition

http://www.flightglobal.com/news/articles/iatalufthansa-ploughs-on-with-premium-strategy413199/

IATA: Lufthansa ploughs on with premium strategy

Lufthansa will not be diverted from its mission to regain its reputation as a premium
quality carrier with a raft of product innovations, distribution system changes and the
aim to be the number one in hub and point-point systems in Europe, says its chief
executive Carsten Spohr.
Speaking at a media briefing at the IATA AGM in Miami, Spohr said Lufthansa will not
do any U-turn over a plan to impose a controversial 16 surcharge for every ticket
issued by a booking channel using a Global Distribution System from September.
There has been a storm of protest from the GDSs over the plan, but Lufthansa, which
is believed to have been planning the move for two years, will not be swayed.
Otherwise we would not have started it, says Spohr.
We need a modernisation of sales channels with more of the percentage of that
revenue coming back to airlines, he says. That has caused us to incentivise the
shift to more direct bookings channels.
Spohr describes 2015 as the year of new Lufthansa quality with a roll-out every
quarter. In the first quarter it introduced its new first class cabin while the second
quarter saw its new business class unveiled. By month-end virtually all widebodies
will have our new business class, says Spohr.
During the third quarter Lufthansa will bring in its premium economy class for its
widebody fleet. Bookings for this new class are about 10% above what was in our
business plan, says Spohr.
In the final quarter of 2015 Lufthansa will roll-out its Wings concept which sees the
group bundling its smaller operations under the Eurowings brand.
The aim is that the Wings operation will become the number one point-to-point
carrier in our home markets, says Spohr. Eventually the aim is to become the third
largest point-to-point carrier in Europe...because we cant withdraw to London and
Paris as my competitors have done, he explains.
In hub terms, Lufthansas strategy is to be the number one premium hub system in
Europe with that group of airports consisting of Frankfurt, Munich, Zurich and
Vienna, says Spohr.

http://www.reuters.com/article/2015/06/09/markets-stockseurope-idUSL5N0YV16N20150609

European shares extend losing streak, led lower by

Amadeus
* FTSEurofirst down 0.3 pct
* Investors spooked by prospect of September rate rise
* Amadeus falls 6.3 pct as Air France mulls ticket change
By Liisa Tuhkanen and Alistair Smout
LONDON, June 9 (Reuters) - European stocks fell for the sixth consecutive
session on Tuesday, led lower by Spain's Amadeus and tracking a fall on the
U.S. equity market as investors speculated that the Federal Reserve may
raise rates as soon as September.
The FTSEurofirst 300 was down 0.3 percent at 1,524.64 points by 0813 GMT
after hitting a one-month low in early trade.
It tracked Wall Street, where the Dow Jones dropped into negative territory for
the year on Monday.
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Investors have grown more nervous about the timing of the Fed's first rate
hike in nearly a decade following stronger-than-expected May jobs data
released last week.
"We're agnostic as to whether the rate rise will be September or November...
the balance of probabilities suggests it might be September," James
Butterfill, global equity strategist at Coutts, said.
"So the markets are getting concerned about whether it will be correctly
timed... (However) tightening monetary policy causes a bit of a wobble in
equities, but it usually recovers," he added.
Spanish travel IT firm Amadeus was the top faller on the pan-European
FTSEurofirst 300, dropping 6.3 percent to 34.36 euros.
The fall came as Air France-KLM said it is considering following a move by
Lufthansa to levy a charge on tickets booked via third parties on global
distribution systems (GDS) as a way of increasing its per-ticket earnings.
This drew the ire of Amadeus, which will now have to use a different system
to avoid the charge, and the stock is down nearly 15 percent in June.
Broker Kepler Chevreux also cut its target price on Amadeus to 39.20 euros
from 43 euros, saying Lufthansa's move added uncertainties to Amadeus'
outlook.

"This new strategy raises concerns about the whole

business model of GDS companies ... Lufthansa's move
could be used as a marketing tool by other companies,
which will be keeping a close eye on how things pan out,"
analysts at the brokerage said in a note.
"Although we agree that the market is probably discounting
a negative scenario, we are reluctant to become more
positive despite the price correction. We believe the
uncertainties are here to stay."
Investors also kept an eye on negotiations between Greece
and its international creditors.
The European Commission has received a new proposal
from Greece on Tuesday, the day after German Chancellor
Angela Merkel warned that time was running out for a
reform-for-aid deal to keep the country in the euro.
Europe bourses in 2015: link.reuters.com/pap87v Asset
performance in 2015: link.reuters.com/gap87v Today's
European research round-up

http://www.ibtimes.co.uk/qatar-airways-ceo-akbar-al-bakersees-no-need-concessions-us-airlines-1505142

Qatar Airways CEO Akbar Al Baker sees no

need for concessions to US airlines

In an interview at the International Air Transport Association

(IATA) annual meeting in Miami Beach, Qatar Airways CEO Akbar
Al Baker said there is no need to change previously agreed upon
government transportation policies.
"Why should my government make any concession?" he said.
"There is an agreement signed by two mature governments. And
those agreements are being implemented."
US airlines are trying to persuade their government to alter the
Open Skies agreements with the United Arab Emirates and Qatar,
accusing them of lavishing their airlines with more than $40bn
(26.1bn) in subsidies and distorting competition. Emirates,
Etihad Airways and Qatar Airways deny the subsidy claims.
"There is nothing wrong with what we are doing. We are
developing an airline to serve the economic needs of my
country," Al Baker said.
Earlier in the day, Al Baker called for the aviation industry's
largest trade group to address protectionism; hitting back against
US airlines campaigning to restrict what they say is heavily
subsidised competition from Gulf carriers.
Following Al Baker's comments, IATA director general Tony Tyler
said the body was in favour of liberalisation. IATA has said it has
no mandate to formally act on the issue.
While US carriers like American and Delta have closed ranks on
the issue, others, like global cargo carrier FedEx and Emirates
codeshare partner JetBlue, have stood up for the Open Skies
agreements, voicing concern that changes would set a bad
precedent.
But Germany's Lufthansa, whose business on routes to Asia have
been hurt by competition from the Gulf carriers, echoed Delta and
American's concerns on Sunday (7 June).

http://allafrica.com/stories/201506090141.ht
ml

South Africa: New Visa Rules Worry

SAA CEO, Aviation Leaders
The impact of recent changes to South African visa regulations will undeniably
have a negative impact on the country's tourism industry, Nico Bezuidenhout,
acting CEO of South African Airways, told Fin24 in an exclusive interview at
the annual general meeting of the International Air Transport Association
(Iata).
The regulations, which include the requirement of an unabridged birth
certificate for minors travelling to the country, was a great concern for
delegates who deal directly or indirectly with South Africa.
Bezuidenhout, however, regarded the reason for the new requirement - as a
measure to prevent child trafficking - as a noble cause.
"I cannot criticise the reason for wanting an unabridged birth certificate, but in
the global village we live in we compete, for instance, with Kenya for wild life
safaris," he said.
"It is, therefore, a complex issue and I wish it did not have a direct impact. I am
not an expert on the issue, but from an airline standpoint I think it will have a
negative impact."
Chris Zweigenthal, CEO of the Airline Association of Southern Africa (AASA),
told Fin24 the biggest issue impacting SA's aviation environment is the slower
economic growth. Accordingly, there is not the level of growth expected in the
aviation industry.
Influencing decisions
He too expressed concern over the new immigration regulations in SA, which
also include the need for biometric data. Zweigenthal sees a negative impact
especially in travel from India and China where prospective visitors to SA have
to travel far for a biometric application.
On the requirement for an unabridged birth certificate, Zweigenthal said AASA
did put its case against it to the minister of home affairs, pointing out the
potential negative impact it would have on the travel industry.
In his view the new regulation will not solve the problem of child trafficking.
Christian Klick, vice president at the corporate office of the Star Alliance, of
which SAA is a member, told Fin24 that any complication in the travelling
process has a direct impact on the decisions customers make regarding which
airline they choose and which country they decide to visit.

http://www.thenational.ae/business/aviation/qatarairways-chief-prowls-for-stakes-in-other-airlines

Qatar Airways chief prowls for stakes in

other airlines
Qatar Airways, already one of the worlds fastest-growing
airlines, is looking to build its global presence by buying up
stakes in other airlines.
Akbar Al Baker, chief executive of the Doha-based carrier,
said hes interested in taking more equity in airlines. While
he wouldnt disclose any targets or say how big a stake
Qatar would take, any such position would be bigger than 5
per cent or other minimal stake, he said.
Qatar already owns 10 per cent of International Consolidated
Airlines Group, and he has said he would like to purchase
more of the British Airways
parent.
Making additional investments in other carriers would match
Arabian Gulf competitor Etihad Airways, which has
purchased major stakes in Italys Alitalia, Air Berlin and
Indias Jet Airways.
We are open to equity investments if it is in the best
interests of Qatar Airways for our growth plans, Mr Al Baker
said on the sidelines of the annual meeting of the
International Air Transport Association in Miami. We dont
go and just do 5 per cent. We would always take a bigger
share.

Mr Al Baker made news on Monday by calling on Iata, which

represents airlines globally, to take a position on the face-off
between major US airlines and his airline, Etihad and Emirates.
The US carriers have accused those three Gulf carriers of
receiving more than $42 billion in government subsidies and
other benefits in violation of fair-competition rules in air
agreements with the US.
Despite concerns that Qatar is unfairly growing too rapidly in
the US, Mr Al Baker said Qatar has no plans to grow beyond its
seven current US cities, three new markets in Atlanta, Los
Angeles and Boston, and eventually Detroit.
Regarding acquisition plans, Mr Al Baker said in March 2014
that he was reviving Qatar Airwayss investment strategy after
being offered stakes in carriers including Alitalia.
He disclosed his goal in an interview without saying where he
was focused. In November, he dismissed speculation that Qatar
Airways was interested in acquiring a holding in Vietnam
Airlines.
In January, IAG disclosed the Qatar Airways stake. Mr Al Baker
has said that such a partnership would help the Gulf airline
build better access to the Americas. Qatar Airways is a member
of the Oneworld alliance that includes American Airlines.