Table of content

Article 1 Article 2 Article 3 Article 4 Article 5 Article 6 Article 7 Article 8 Article 9 Article 10 References 2

Article 1
Boeing, Airbus and Embraer to collaborate on aviation biofuel commercialization Friday, March 23, 2012 Accelerating availability is key pillar of industrys sustainable growth strategy Boeing, Airbus and Embraer signed a memorandum of understanding to work together on the development of drop-in, affordable aviation biofuels. The three leading airframe manufacturers agreed to seek collaborative opportunities to speak in unity to government, biofuel producers and other key stakeholders to support, promote and accelerate the availability of sustainable new jet fuel sources. Boeing Commercial Airplanes President and CEO Jim Albaugh, Airbus President and CEO Tom Enders, and Embraer Commercial Aviation President Paulo Cesar Silva, signed the agreement at the Air Transport Action Group (ATAG) Aviation and Environment Summit in Geneva. "There are times to compete and there are times to cooperate," said Jim Albaugh. "Two of the biggest threats to our industry are the price of oil and the impact of commercial air travel on our environment. By working with Airbus and Embraer on sustainable biofuels, we can accelerate their availability and reduce our industry's impacts on the planet we share." "We've achieved a lot in the last ten years in reducing our industry's CO2 footprint - a 45 percent traffic growth with only three percent more fuel consumption," said Tom Enders. "The production and use of sustainable quantities of aviation biofuels is key to meeting our industry's ambitious CO2 reduction targets and we are helping to do this through Research and Technology our expanding network of worldwide value chains and supporting the EU commission towards its target of four percent of biofuel for aviation by 2020." "We are all committed to take a leading role in the development of technology programs that will facilitate aviation biofuels development and actual application faster than if we were doing it independently," said Paulo Cesar Silva. "Few people know that Brazil's well known automotive biofuels program started within our aeronautical research community, back in the seventies, and we will keep on making history." The collaboration agreement supports the industry's multi-pronged approach to continuously reduce the industry's carbon emissions. Continuous innovation, spurred by competitive market dynamics that push each manufacturer to continuously improve product performance, and air traffic modernization, are other critical elements to achieving carbon-neutral growth beyond 2020 and halving industry emissions by 2050 based on 2005 levels. "Having these three aviation leaders set aside their competitive differences and work together in support of biofuel development, underscores the importance and focus the industry is placing on

sustainable practices," said ATAG Executive Director Paul Steele. "Through these types of broad industry collaboration agreements, aviation is doing all it can to drive measurable reductions in carbon emissions, while continuing to provide strong global economic and social value." All three companies are affiliate members of the Sustainable Aviation Fuel Users Group, which includes 23 leading airlines responsible for approximately 25 percent of annual aviation fuel use. Boeing and Embraer are already collaborating on how to establish a sustainable aviation biofuels industry in Brazil and exploring new technology pathways to broaden biofuel sourcing and availability. Boeing and Airbus are also active around the globe in helping to establish regional supply chains, while the three manufacturers have all supported numerous biofuel flights since global fuel standards bodies granted their approval for commercial use in 2011. http://www.avitrader.com/2012/03/22/boeing-airbus-and-embraer-to-collaborate-onaviation-biofuel-commercialization/

Analysis
The environmental impact of aviation occurs because aircraft engines emit noise, particulates, and gases which contribute to climate change and global dimming. Despite emission reductions from automobiles and more fuel-efficient and less polluting turbofan and turboprop engines, the rapid growth of air travel in recent years contributes to an increase in total pollution attributable to aviation. In the European Union, greenhouse gas emissions from aviation increased by 87% between 1990 and 2006 Emissions of passenger aircraft per passenger kilometer vary extensively, according to variables such as the size of the aircraft, the number of passengers on board, and the altitude and distance of the journey as the practical effect of emissions at high altitudes may be greater than those of emissions at low altitudes. Moreover, manufacturers have forecast and are committed to achieving reductions in both CO2 and NOx emissions with each new generation of design of aircraft and engine. Thus, the accelerated introduction of more modern aircraft represents an opportunity to reduce emissions per passenger kilometer flown. However, aircraft are major investments that endure for many decades, and replacement of the international fleet is therefore a long-term proposition which will greatly delay realizing the climate benefits of many kinds of improvements. Engines can be changed at some point, but nevertheless airframes have a long life. Air transport has experienced rapid expansion when the global economy has grown and the technology of air transport has developed to its present state. The airline industry has a long history of improving productivity. As a result, there has been a rapid growth in the travel and tourism industry. Unfortunately aircrafts engine emissions are contributing to air pollution and to global atmospheric problems such as climate change and depletion of the ozone and this is having a negative impact on the environment and nowadays people are more conscious about sustainability development. The Sustainable Aviation Fuel Users group was formed in 2008 and it is focused on accelerating the development and commercialization of sustainable aviation biofuels. Therefore Boeing, Airbus

and Embracers have decided to collaborate on aviation biofuel commercialization and this will help to contribute in decreasing the emission of CO2 and sustainability. Therefore, Boeing, Airbus and Embraer have taken the initiatives to use these biofuels at low costs and high yield with minimal environmental impact. Biofuels are made from crops that are fast growing plants that dont require excessive farming techniques and provide socio-economic value to the world and result in low carbon footprint by reducing its greenhouse gas emissions. Sustainable biofuels will be economically benefic for these airlines and compete with petroleumbased fuels as costs are lowered by improvements in production technology and through economies of scale in production. The biofuels are therefore considered to be "CO2 neutral", not adding to the carbon dioxide level in the atmosphere. If the cost is low, it is vital that there might be reduction in the sales of tickets and attracts more clients and they will act in a sustainable way. So, these airlines may gain competitive advantage and make profit. Moreover, they may also provide valuable economic opportunities to local communities who can develop new sources of income. Therefore, biofuels can provide a solution to the price fluctuations and provide both economic and environmental benefits for these airlines, thus they can easily get competitive advantage and make more profit.

Article 2
Fly.com study reveals domestic flights are hot, Europe is not Friday, March 23, 2012 Fly.com, the airfare search engine, announced the results of a data study that shows a significant shift in destination preference among travelers flying out of New York City, San Francisco, Chicago, Los Angeles and Houston. At the same time, the study identifies dramatic price reductions in the cost of domestic airplane tickets, with flights to Los Angeles, Las Vegas, Dallas and Chicago offering the biggest year-on-year price drops. In contrast, some flights to Europe are almost twice as expensive as this time last year. The study used 1 million Fly.com user searches to identify and compare the top route preferences (from the five origin cities) during Feb. 12 - March 12, 2012, against those searches made during the same period in 2011. At the core of Fly.com's findings is a clear indication that interest in European destinations has considerably diminished, compared with last year. Instead, U.S. travelers are now setting their sights firmly on domestic destinations, particularly cities in California and Nevada. This is likely due to rising airfare prices for international routes, which are up as much as 70% to cities such as London and Barcelona. In contrast, fares for popular domestic flight routes have fallen by more than 40% in 2012.

The Fly.com study also revealed a 2012 trend for destinations closer to home, with many of the top five flight routes out of New York City, San Francisco, Chicago, Los Angeles and Houston involving destinations that were less than a four-hour flight away. "These are very significant year-on-year changes in traveler preference," said Warren Chang, vice president and general manager, Fly.com. "And it is clear that new low-cost carrier routes, as well as surging oil prices and airline consolidation across the Atlantic, have played an instrumental role in affecting this change." New York City: Barcelona dropped out of the top five most popular destinations for New Yorkers, as prices surged 31% this year. Moreover, better fares for routes to Los Angeles, San Francisco and Las Vegas most likely driven by increased airline competition has helped drive popularity for Western destinations. asulyk.com/blog/fly-com-study-reveals-domestic-flights-are-hot-europe-is-not/

Analysis
According to the above article, it has been said that domestic flights are having lots of success within America, for instance New York City, San Francisco, Chicago, Los Angeles and Houston compared to Europes destinations which have considerably diminished. There are some factors that have been looked into to determine the changes in the airline industry and the chosen destinations. Therefore, these issues will have some impacts both in the US and Europe. Since the global economic crisis, the volatility of the Euro/dollar rate and the rising price in oil, there has been a significant decline in the demand for European destinations. Therefore, the prices in air tickets are more expensive and even twice the price compared to the previous year. Europe represented a core market for Priceline and its expansion in the region through the hotel business but there has been a considerate decline in the domestic travel. The rising price in oil has negatively impacted the aviation industry by slowing economic growth, elevating cost bases of industry participants, increasing real air fares and reducing passenger demand as the airlines cost is higher. Fuel cost represents an increase of nearly 12.5 million during the year compared to the year before that is the fuel cost alone represents 3.7 million. The fuel is further impacted by the weakening of the Euro, fuel being paid in the US Dollars. As the rate of exchange of the dollar is stronger than Euro, it is obvious the fuel will cost even more in Europe. Concerning American travelers, they have set their sights on domestic destinations as these destinations generally take less than four hours to travel, thus being less time consuming and costing less money. Because of the higher cost of fuel, it is easier to do short distance at cheaper price. Less fuel being used can also result in less pollution and protect the environment. Nevertheless, the fares for domestic flight routes which have fallen by more than 40% in 2012 will be beneficial as people will be more interested to go for domestic flights as the fares are cheaper and these airlines can gain competitive advantage. As there is a reduction in the price for domestic airline tickets, it is vital that customers will be more attracted with these flights. Selling more tickets will therefore cover the cost of these airlines. These aspects can hence result in profitability in these airline industries.

Moreover, a weakening Euro represents a decrease in the Euro denominated net-assets, bookings and income on conversion to US Dollars which will impact in the exchange rate growth of 79% in the US dollar terms. As a result, the tourism industry in the US will be beneficial as it will get lots of domestic customers and gain profit. However, the Europeans which are facing difficulties with regard to their buying power will be reluctant to travel unnecessarily, only for important purposes. In some cases there will be only a few who travel for leisure and so forth. Nevertheless there are some actions that can be taken in Europe to improve their situation like for instance purchasing cheaper fuels such as biofuel which can also contribute to the protection of the environment. Also, cheaper fuels mean cheaper cost and consequently the Europeans will be able to pay the tickets at cheaper price. This will encourage more people to travel, enabling the airline industry to make profit and be competitive again. This can also be applied to the other domestic flights or in general to be more sustainable. After a clear analysis, it is obvious that Europes aviation industry is facing some difficulties in getting customers because of the financial crisis, the volatility of the Euro/dollar rate and the increase in oil prices to the opposite of the America which has lots of demand in the domestic travel because of its cheap price. So, the Europeans must categorically find proper solutions to their problem very rapidly or else they will have serious problems with their economy.

Article 3 Malaysia Airlines announces new A380

Mar 09, 2012 SUBANG, Malaysia - Malaysia Airlines revealed the design and specifications of its first new flagship aircraft, the Airbus A380-800, that is on track for entry into service from 1 July 2012.The first Malaysian A380 aircrafts exterior was showcased in a new livery that retained the national airlines rich wau heritage together with modern fonts in contemporary colors, demonstrating the national carriers commitment towards using new avenues to deliver its renowned Malaysian Hospitality brand experience in fresh and exciting ways. Malaysia Airlines Group Chief Executive Officer, Encik Ahmad Jauhari Yahya said, We are the first to introduce the A380 into service using a uniquely refreshed look and feel, instead of the regular corporate identity, to showcase our latest premium offering in products and services. This will be our flagship aircraft to launch our exciting new levels of comfort, luxury and convenience in long haul travel. The A380 has a capacity of 494 seats in a three-class configuration comprising 8 First Class seats and 350 Economy Class seats on the main deck, together with 66 Business Class seats and 70 economy Class seats on the upper deck. The First Class cabin has a luxurious seat pitch of 85 inches with 87 inch full flat bed seats complemented with individual 23 inch inflight entertainment (IFE) screens whilst the Business Class cabin features a seat pitch of 74 inches and full flat bed seats each measuring 72 inches in length together with individual 17-inch IFE screens. The Economy class seats with an 18-inch seat width and recline of 6 inches, have a seat pitch of 32 inches and individual IFE screens measuring 10.6 inches. In-seat laptop charging facilities are available on every seat in First and Business Class. In Economy, laptop charging facilities are shared by every 2 seats. The aircraft is fitted with the Thales entertainment system, with fully customised Graphic User Interface specific for quick navigation and seat in all classes is equipped with USB port and satellite telephone facility. Operated by a cabin crew team of 18 members for inflight delivery of the unique Malaysian Hospitality, customers travelling on Malaysia Airlines A380 will be treated to a fine selection of Malaysian and International cuisines with lighter and healthier-concept meals. For the first time, the Chef-on-Call facility, currently available to First Class passengers of Malaysia Airlines, will also be available for Business Class passengers of the A380 as an extension of the airlines renowned Branded Customer Experience. The first A380 of Malaysias national carrier will operate 3 times weekly on the Kuala LumpurLondon route from 1 July 2012. The second A380 will also be introduced on this route from end-

August 2012 to offer daily operations while the third will be used for Kuala Lumpur-Sydney flights. At Malaysia Airlines, we continue to innovate and introduce new services for the benefit of our customers. The investment in this latest aircraft, its technology, futuristic style and innovative design in cabin comfort are our initiatives to ensure that our passengers continue to experience an exciting new level of comfort, luxury and convenience. This is the identity that will move us from Traditional Classic to Premium Contemporary in our efforts to position Malaysia Airlines as a Preferred Premium Carrier, added Ahmad Jauhari. http://www.eturbonews.com/28267/malaysia-airlines-announces-new-a380

Analysis
The Airbus A380 is a double-deck, wide-body, and four-engine jet airliner manufactured by the European corporation Airbus, a subsidiary of EADS. It is the world's largest passenger airliner and due to its size, many airports have had to expand their facilities to properly accommodate it. Designed to challenge Boeing's monopoly in the large-aircraft market, the A380 made its maiden flight on 27 April 2005 and entered initial commercial service in October 2007 with Singapore Airlines. The aircraft was known as the Airbus A3XX during much of its development, before receiving the A380 designation. The A380's upper deck extends along the entire length of the fuselage, with a width equivalent to a wide-body aircraft. This allows for an A380-800's cabin with 478 square meters of floor space; 49% more floor space than the next-largest airliner, the Boeing 747-400 with 321 square meters and provides seating for 525 people in a typical three-class configuration or up to 853 people in alleconomy class configurations. The A380-800 has a design range of 15,400 kilometers, sufficient to fly from New York to Hong Kong, and a cruising speed of Mach 0.85 (about 900 km/h or 560 mph at cruising altitude). From cabin comfort and eco-efficiency to operating costs and revenue generation, Airbus 21st century flagship A380 offers step-change improvements over any current or proposed 400-plus seat airliner allowing its operators around the world to boost profitability stimulate demand and increase their market share. Since its 2007 service entry, Airbus A380 has delivered the lowest fuel burn and operating costs in commercial aviation all while flying higher, further and quieter. In additional to its use on long-haul routes, operating airlines are successfully utilizing the A380 on regional segments and even on high-density shorter-haul flights. With seating capacity ranging from 400 to more than 800 passengers, the A380 also is an essential part of the solution for sustainable growth alleviating traffic congestion at busy airports by transporting more passengers with no additional flights and at much lower costs.

The new A380 of Malaysia is aiming at having something unique that will offer a wide range of quality service which will differentiate it from competitors specially the Boeing 747 which is another great company in the airline industry to introduce the A380 into service using a unique

refreshed look and feel. It is well known that Competition between Airbus and Boeing is a result of both companies' domination of the large jet airliner market since the 1990s, a consequence of mergers within the global aerospace industry over the years. Therefore, there are some factors in the Airbus A380 that can be beneficial, hence having a competitive advantage. It is imperative that the price will be influenced by the cost of factor of production but with all these facilities it is vital that it will attract many clients. The new Airbus will offer a wide range of facilities for customer satisfaction. For instance, customer satisfaction often leads to customer retention and this can be beneficial for the airline as they will be able to generate profit. Customers wants and needs keep on changing and they always want to experience new things, comfort and convenient long haul travel. Consequently, this will be an opportunity to attract new customers and retain them. Also, customers will have lighter and healthier concept meals which will make their flight a nice one because people are more health conscious nowadays and will not have health problems during the voyage. Moreover, with the technological advance, it is obvious that lots of people travel with their laptops and so forth. So, with the laptop charging facilities in the aircraft, it can be a benefit for people travelling with their laptop, particularly the business people which will have these facilities on every seat. Furthermore, there is the Thales entertainment system user interface for quick navigation and seat in all classes is equipped with USB port and satellite telephone facility. Internet is something that is used everywhere and it is fundamental that the clients within these flights will be privileged and will be willing to travel in the airbus. Therefore these facilities will be an advantage for the aircraft in terms of economy as they have invest in terms of technology, futurist style and innovative design, comfort etc. to ensure that they will meet customers needs and wants to satisfy them and to have a good reputation. If the airline gets lots of customers, is obvious that it will be able to gain a large amount of profit to recover the cost incurred in this project. The A380 will offer a flying experience no other aircraft in the sky can match, and redefines the meaning of comfort for all passengers whether they are premium customers in first and business class, or leisure travelers in the economy cabin. Airbus has gone to great lengths to make long-haul

flying aboard the A380 feel more natural for its passengers with broader seats, more personal storage, better head room and wider stairs and aisles.

Article 4
Airlines' crisis: Why is Kingfisher Airlines constantly losing money? Vivek Kaul, ET Bureau Mar 2, 2012, 12.47AM IST It takes a brave man to buy an airline. And it takes a braver man to keep running it into the ground. Ask liquor baron Vijay Mallya, who has been running Kingfisher Airlines for a while now. The airline now has accumulated losses running into more than Rs 6000 crore, having never made money since its launch in 2005. But that is hardly surprising, given that most airlines make losses rather than profits. Warren Buffett explained this in a letter he wrote to the shareholders of Berkshire Hathaway in February 2008: "The worst sort of business is one that grows rapidly, requires significant capital to engender the growth, and then earns little or no money. Think airlines. Here, a durable competitive advantage has proven elusive ever since the days of the Wright Brothers. Indeed, if a farsighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favour by shooting Orville down." But such is the glamour of owning an airline that people cannot keep away from it. This, despite the evidence of the sector making huge losses because of the very high capital required to start it, tough competition and the rising price of oil over the last few years. Interestingly, the only airline to make profits consistently over the years is Southwest Airlines. The low-cost airline has made profits year after year since it started operating in 1973, though in the recent past its profits have come more from successful bets on oil derivatives rather than passenger revenue. The reason airlines constantly lose money is because it is one business where companies really have no way to control their costs. The primary expense in running an airline (a company doesn't always have to buy the aircrafts, it can lease them) is oil. And oil prices in the recent past have been on their way up and currently quote at around $120 a barrel. Airline companies have no control over this price. The higher it goes, the higher is their expenditure in running the airline and given the competition that prevails; they are not always in a position to pass on the increasing cost to the customer. Hence, airlines are specialised businesses which require full time attention. Mallya's business interests are too diverse to allow him the time and attention required to manage Kingfisher, busy as he is running his diverse businesses and doing other things. What clearly did not help was his decision to take over Deccan Aviation (which he shut down a few months ago). A premium brand like Kingfisher operating a low-cost airline, by buying Air Deccan and rebranding it as Kingfisher Red, was a big mistake in the first place. Also his other primary business interests are in the fields of alcohol and now real estate. There isn't really any link among these businesses. Businesses over the years have become more complicated. And just because a

company has been good at one particular business doesn't mean it will be good at another totally unrelated business. Several big businessmen have learnt this in the recent past, the hard way. Reliance's attempts at the retail business haven't gone anywhere. Bharti recently exited the insurance business it had started with much fanfare. NDTV's attempts in the general entertainment business by launching the Imagine channel came a cropper. References: The Economic Times, Mar 2, 2012, 12.47AM IST (http://articles.economictimes.indiatimes.com/2012-03-02/news/31116840_1_kingfisher-airlineslow-cost-airline-airline-companies)

Analysis:
Introduction Kingfisher Airlines Limited is an airline group based in Banglore, India. The airline started operations on May 9, 2005 from Mumbai to Delhi, following the lease of 4 Airbus A380 aircraft. The airline is owned by Indian drinks tycoon Vijay Mallya. The Kingfisher Airlines came with some brilliant strategies which made them an eminent airline industry and gave Air India a tough competition. The airline has won numerous awards and Kingfisher has also get the Skytrax award for Indias best airline of the year 2011. But as it says, every good thing must come to an end, so even Kingfisher is facing some rough times having to deal with a really dreadful crisis. Not only Kingfisher airlines are going through a bad time but also Air India is facing huge losses and the most concerning thing is that both of the airlines have not been paying their employees for some months. It is said that the ailing Indian carrier Kingfisher Airlines will be suspending all international flights and reducing domestic operations in its latest move to stay afloat. According to the chairman of Kingfisher, Vijay Mallya, We have decided to suspend our international operations as we are not on IATA platforms. So, there is no sense flying abroad. As it is said misfortune never comes alone, Kingfisher got one more surprise on March 12 2012 when the pilots failed to show up at work and thus was the reasons behind the cancellation of a series of flights. The crisis is said to be a result of its bank accounts being frozen by the tax authorities and that it is doing all it can to remedy this temporary situation. While the airline has not confirmed how many flights were cancelled, Indian media reported that at least 30 flights from Mumbai and New Delhi were not operated. Moreover, International Air Transport Association (IATA) has suspended Kingfisher Airlines from its Billing and Settlement Plan (BSP) and Cargo Accounts Settlement System (CASS), after the airline failed to provide a cash deposit. "The required cash deposit was intended to ensure the airline is able to meet its financial obligations in the BSP and CASS," said an IATA spokesman, who added that the suspension was implemented late on 8 March. This means that being suspended from the systems, Kingfisher airlines will no longer be able to sell and settle their accounts with travel and cargo agents through it. With the suspension, Kingfishers revenue will likely suffer a big hit.

Besides, the taxes and IATA dilemma, Kingfisher is also facing a new trouble which is the fuel crisis. According to Times of India, In fresh trouble for Kingfisher Airlines, state-owned Hindustan petroleum Corporation Limited (HPCL) today stopped jet fuel supplies to the ailing carrier due to non-payment of dues which resulted in 6 flights being cancelled in Bombay and some disruptions in Delhi. This has caused passengers stranded in the airports and also various cancellations of flights. A spokesperson of Mumbai International Airport Limited said, 6 Kingfisher flights have been cancelled since this evening. Irate passengers protested over the last minute cancellations. This shows how far the matter has already gone.

Some facts about Kingfisher Airlines: Kingfisher Airlines serves 63 domestic destinations and 8 international destinations in 8 countries across Asia and Europe. Kingfisher's short haul routes are mostly domestic apart from some cities in South Asia, Southeast Asia and Western Asia. All short haul routes are operated on the Airbus A320 family aircraft. ATR 42s and ATR 72s are used mainly on domestic regional routes. Kingfisher has its medium, long-haul destinations in East Asia, Southeast Asia, and Europe. Its first long haul destination was London, United Kingdom which was launched in September 2008. It has plans to launch new long haul flights to cities in Africa, Asia, Europe, North America and Oceania with deliveries of new aircraft. All long haul routes are operated on the Airbus A330-200. Kingfisher Airlines is one of the only seven airlines awarded 5-star rating by Skytrax along with Cathay Pacific, Qatar Airways, Asiana Airlines, Malaysia Airlines, Singapore Airlines, and Hainan Airlines. Kingfisher operates 250 daily flights with regional and long-haul international services. In May 2009, Kingfisher Airlines carried more than 1 million passengers, giving it the highest market share among airlines in India. Kingfisher also got the Skytrax award for India's best airline of the year 2011. Kingfisher Airlines is also the sponsor of F1 racing outfit, Force India, which Vijay Mallya also owns. Kingfisher Airlines Logo

Parent Company Category Sector Tagline/slogan USP

United Breweries Group Indian Domestic Sector Airlines Fly The Good Times Premium Airline, High Class

Segment Target Group Positioning Competitors

Passengers preferring comfort Corporate, Upper middle class Premium 1. Jet airways 2. Air India

Swot Analysis for Kingfisher Airlines: Strengths Kingfisher Airlines have targeted the Indian domestic luxury segment, therefore operating in a niche market. Kingfisher Airlines has a strong financial support from the parent company UB Group and Kingfisher itself is a well-established brand. The customer service provided on Kingfisher is extremely exceptional for a domestic airline, hence providing an ultimate flying experience.

 Kingfisher Airlines is well known for its highly trained and attractive staffs. Weaknesses: The company has an immature organizational structure and lacks mature management practices. The company is unable to generate expected returns on the investments done. Loads are lesser than that of its competitor Jet Airways which is a reflection of its marketing and sales capabilities. The main weakness of the company is the overspending of funds.

Conclusion: Kingfisher airlines should find a way possible to solve their issues hastily because they are losing their customers who will normally seek another airline for their travel. Their competitors like Jet Airways and Air India will be at gain for their loss. Kingfisher will definitely bounce back after the crisis because they do have the power, capacity and a great marketing strategy.

Article 5
Broke after British Airways stranded us in London January 12, 2010 6:17 PM Stranded for 5 days by British Airways, are we entitled to have any of our expenses covered by the airline? My girlfriend and I took a trip to Europe over Christmas. We had great time and saw a lot. Our return flight was routed via England, and the entire trip was with British Airways. On January 6th we were to return to the US. The first leg of the flight went without a hitch. We got to Heathrow. After a bit fo a delay we were boarded onto our flight to the US. We spent the next 8 hours waiting on the tarmac. First they said they were waiting for the de-icing truck to come over. Secondly after 4 hours, the crew passed the limit for how long they could work (factoring in the flight time), and we spent the next 3 hours waiting for a replacement crew that never showed up. The last hour was spent waiting for the busses to show up to take us back to Terminal 5. (Note this is illegal in the US now (over 3 hours)) The captain made sparse and conflicting messages throughout the affair. About one an hour. Before we left the plane we were promised that BA personal would take care of us at the airport, get us a coupon for a hotel and transport. We get to the airport, and there is no BA personal to be seen. We wander around, and the crowds are just HUGE. The lines are enormous. BA had ONE person working on the "Travel connections" (for economy class) and well over one thousand people waiting in line. Soon a rumor started spreading that they had run out of hotel coupons. I was lucky, by standing in line for a long time, I was told there was no coupons. I discussed this with the clerk and he told me that senior managers were coming down with new coupons soon. So I waited around, and God Bless the man, he pointed one of these managers out, and I spoke to her, and was told no. Then I got upset, and a few other people got upset and it ended up with getting a coupon for a hotel. So 80 pounds later, and 7 hours total since we left the airplane, we are at the hotel. We had been

told NOT to return to the airport until we were booked on a flight out. This was stated on the paperwork BA gave us, after standing in one specific line. I asked the senior manager who gave me the coupon if we needed to return of if they would pay for the hotel, and she told me they would pay for the hotel. So we go to sleep, call in the next day, and no matter what we do, we can only get a flight out on Sunday the 10th. We talk to the hotel, and they agree to let us stay, but we have to put it on a credit card, since BA has not contacted them. On Friday night, our flight on Sunday is cancelled by BA without giving us any reason. Nobody can be reached on the phone, we just get fast busy signals for the 3 hours we try. On Saturday we get a hold of BA again, and they again promise to pay for the hotel, and book us on a flight on Monday. Monday arrives, we check out and BA again has not contacted the hotel. We do get to fly home that day though. Repeated calls now to BA and they refuse to even talk about paying for the hotel, or the meals, or anything else. (We have receipts, all of them). They claim that since the weather was bad, they have no obligation to pay for our considerable expenses. We were pretty broke after our trip around Europe ,and we are really broke now. I feel like I have been pushed around and repeatedly lied to. Again and again BA has made decision that are good for their purse (such as not flying us out sooner) and really costly for us. I attempted to file a claim on BAs website for cancelation compensation http://www.britishairways.com/travel/euclaimnor/public/en_gb and they turned me down for both flights that were cancelled. We are left with HUGE bills, many days out of work so loss of income, and really foul taste. Can I take BA to small claims court? Is there anyway I can try to appeal to BA to cover some of our expenses? They did claim on multiple occasions to at least cover our hotel, but failed to deliver on all but the very first night. It was not our choice to stay in London for so many days, we wanted to fly out the next day, and our flight left the next day, without problems. They should have had an extra plane on the airport from our cancellation, why did they not fly us out the next day on that airplane?

Ask Meta Filter, (January 12, 2010 6:17 PM)http://ask.metafilter.com/143031/Broke-afterBritish-Airways-stranded-us-in-London

Analysis:
Introduction: During the past three or four year, British Airways has been cancelling their flights due to heavy snow and this has created great chaos among thousands of passengers. This is deemed to cause fury among passengers because the cancellation has been happening just days before Christmas when people are going to join their relatives for the festivities. British Airways cancelled all the flights at Heathrow which is one of the biggest airports in United Kingdom. Passengers are forced to sleep on terminal floors when it is freezing cold with a temperature outside doing -5.2C and some are send to the nearby hotels or airport hotels. The airport does provide blankets to keep warm but they should be more prepared beforehand and make it a must to inform the passengers of the cancellation. Following the cancellation, the passengers can be informed that the flight will be delayed and to stay near the airport itself until the mess is resolved. It is not a big deal for British Airways employees to make a call and inform the passengers about the situation instead of the passengers suffering at the airport. It is indeed a nightmare for the passengers to spend one or two days at the airport waiting for the departure of their flights. British Airways faced heavy criticism following severe weather in December 2010 when services ground to a halt. So, they should have learned something from their preview awful experience. The guy from the above article must have had really a horrific experience along with his girlfriend and many other passengers must have gone through this dreadful situation. Its been happening since many years now and they should have learned from the massive upheaval. If the flight was to be delayed for some reasons, the officials at Heathrow should have made it clear instead of making the passengers wait for so long. The passengers pay for their travel, they do not travel free of charge and thus, they should not be allowed to be treated as such. In such circumstances, Heathrow should already have de-icing trucks at their disposal. This couple was really lucky in a way that they got to spend the days in the hotel till their departure as opposing to thousands of passengers who spend up to five days at the terminal.

The most astonishing thing is that with so many stranded passengers in the airport, there were barely any employees to come to the aid of the passengers. It is beyond belief that the senior manager has lied to the couple about the payment of the hotel. British Airways must have their own legal constitutions but when someone who you are already in contract with makes an explicit verbal agreement to recompense you for an expense one is about to undertake, thus they have a legal obligation to make good on that. The way British Airways responded to the passengers is in reality very cheap. They let the passengers absorb all the costs and keep them waiting for days, instead of stepping up and arranging for earlier departures. If the company cannot accomplish a task properly, they should not give an assurance. British Airways made several promises about covering the cost, which they certainly did not do. This is called deceptive business practices. Last but not least, they should go to the upper level of hierarchy of British Airways and reveal their misfortune and see what happen. Otherwise, as a lesson they should get a travel insurance for their next travel to be on the safe side.

Article 6

Costa Allegra fire sets ship adrift; fishing boat towing cruise to island

A fire has set a Costa Cruises ship adrift, but no one was injured.
By Hannah Sampson hsampson@MiamiHerald.com

A month and a half after one of its ships hit a reef and capsized, Italy-based Costa Crociere SpA had a new crisis to deal with Monday: A fire that set a ship adrift in the Indian Ocean. None of the more than 1,000 people aboard the Costa Allegra were hurt in the blaze, which was confined to a generator room. Costa, which is owned by Miami-based Carnival Corp., said Monday that ship was steady and conditions are safe. Early Tuesday morning, the cruise company reported that the ship is being towed to Seychelles island by a French fishing vessel. The ship is scheduled to arrive at the island on Thursday, according to reports. The shipboard fire-extinguishing system and emergency procedures were activated promptly and special fire-fighting squads extinguished the fire, the company said in a statement. Still, the emergency alarm went off and passengers and crew members were instructed to report to their muster stations Sunday night local time. The ship is carrying 636 passengers and 413 crew members. Tugboats, aircraft and other vessels were dispatched to the ship, which was drifting and without power. In addition to the fishing boat; several other boats also are expected to reach it by Tuesday afternoon local time, and a helicopter was to bring food and phones. The Associated Press reported that passengers were being held in communal rooms rather than cabins and were likely to sleep on outside decks; the fire cut power to engines as well as lights and air conditioning. Also a concern: the threat of piracy. The region off the coast of Tanzania where the ship was drifting has seen attacks by Somali pirates, though officials said the risk was not high. A Costa executive said a nine-member Italian military team on anti-pirate duty was aboard. If pirates attack, the armed guards on board will respond. But as far as I am aware, no pirates have been sighted in the area, said Seychelles presidential spokeswoman Srdjana Janosevic. The 20-year-old cruise ship left Madagascar Saturday and had been scheduled to arrive Tuesday at the port of Victoria in the Seychelles.

The incident was Costas second since the year began. On Jan. 13, the Costa Concordia was maneuvering close to the Tuscan island of Giglio when it struck a reef and capsized. The shipwreck is believed to have killed 32 people; the captain was arrested and other officials are under investigation. The incident caused a drop in future cruise bookings and hit cruise prices throughout the industry. But the latest problem had little effect Monday on Carnivals value; its stock closed at $29.96, down just a penny from the previous close. The fire aboard Costa Allegra follows several other incidents that have put cruise vacations in a harsh light since the Concordia disaster, including norovirus outbreaks on a few ships and the recent robbery of several Carnival guests during a tour in Puerto Vallarta. On Monday, Cruise Lines International Association president and CEO Christine Duffy released a statement highlighting the industrys adherence to safety regulations. The statement said: CLIA extends its regrets to all those who were affected by this incident on the Costa Allegra, and we are pleased that the crew acted quickly and professionally and that no passengers or crew were injured. This report was supplemented with information from the Associated Press. The Miami Herald, By Hannah Sampson (hsampson@MiamiHerald.com) on 28
February 2012 http://www.miamiherald.com/2012/02/27/2663935/costa-allegra-firesets-ship-adrift.html

Analysis:
Introduction: Costa cruises is going through a rough time with the two high profile disasters on its ships barely six weeks apart. Costa Allegra was far luckier than Costa Concordia as no serious harms were caused to the passengers. The liner was carrying 413 crew members and 636 passengers, including 212 Italians, 31 Britons and eight Americans. Four passengers were children ages 3 or younger. There was a fire which was erupted in the ships generator room, knocking out power to its engines, lights and air conditioning. The crew members acted with utter ease and took swift actions following the incident. The crew onboard of Costa Allegra did their jobs as they were trained. They extinguished the fire and kept the passengers safe which was their main priority at that given time in contrast with Costa Concordia which capsized off the coast of Italy, killing 32 passengers and crews, in one of the worst tragedies ever faced in contemporarily history. Passengers were forced to spend three days on board without lights, air conditioning and showers. The passengers had to stay out on deck for 72 hours and at night curled up in deckchairs, covering themselves with sheets and blankets to keep warm. Soft drinks, cold cut, cheese were available to eat and drink, mineral water was offered for personal hygiene and fresh bread was delivered by helicopter. There seem to be little criticism of Costa Allegra staffs as happened to the tragedy aboard to Costa Concordia just six weeks before. After Concordia hit rocks off the Italian island of Giglio, Captain Francesco Schettino abandoned the ship while passengers were still aboard and many complained of a disorganized and panicked evacuation which killed 32 people, several whose bodies are still not yet found. The captain of Costa Concordia is facing charges for manslaughter, causing a shipwreck, abandoning ship with passengers still onboard and failing to communicate properly with maritime authorities. The case is still under investigation and the captain allegedly changed course so the ship could carry out a sail by salute of the Italian island of Giglio but it struck rocks tearing a 70 m gash in its hull and is now lying partly submerged on its side on rocks. The passengers on Costa Allegra were obviously panic-stricken when that fire broke out because they were afraid of a similar outcome like Costa Concordia. One of the most frightful things of Costa Allegra was that they were in the Indian Ocean and vulnerable to attack from pirates that sometimes patrol the areas. It was pointless for them to worry because there were helicopters flying up in the air to observe the situation closely and ships which came in for help. But eventually after three days of nightmares, they reached the deck of Mahe, Seychelles safely and they were sent to their hotel rooms which were reserved for them by the Costa Allegra. More than 600 airline seats and 400 rooms had been reserved for them. Once aboard, the passengers were relieved of the end of the nightmare and thanking the crew members and the captain of the cruise ship. Even the captain of the Costa Allegra, Niccolo Alba said, The Costa Allegra staffs were

great. The behaviour of all staff members on board was outstanding. They all followed my instructions to the letter, and they all behaved as great professionals. Costa cruises should work hard to regain the faith of the customers after the two major incidents and customers will be reluctant to choose the Costas after the havoc. Industry experts said Costa's survival after 60 years in the passenger ship business could depend on the company changing its name or getting a bailout from its parent, U.S.-based Carnival. Magda Antonioli, the director of the tourism Masters program at Bocconi University in Milan, said Costa must think about rebranding itself after the back-to-back disasters. But many in the cruise business don't think the disasters will prove to be Costa's death knell or even have a long-term impact on the wider cruise industry, which is experiencing phenomenal growth as the number of healthy elderly rises and more families choose cruises for intergenerational vacations. No, not the end for Costa, which has operating passenger ships for over 60 years, Douglas Ward, author of the 2012 Berlitz Guide to Cruising & Cruise Ships, said in an email from a ship off the Australian coast. But the relentless media spotlight may dilute the brand and perhaps the number of ships in fleet. As Doglas Ward mentioned, media can actually plays a role in spoiling the reputation of the cruises further more. So, rebuilding the image of the Costas should be left to the company itself and it will be upon people to see if it is worth to travel on it or not. Media should not interfere much in this matter.

Article 7

KLM To Power European Flights With Used Cooking Oil

Kris Alingod Amstelveen, Netherlands Dutch carrier KLM on Wednesday said it would begin using used cooking oil for some of its flights. The announcement comes less than two years after the airline flew the first biokerosenefueled passenger flight in Europe. Used cooking oil from factories and hotels will fuel KLM flights between Amsterdam and Paris beginning September. According to the airline, the fuel will meet the same technical specifications as those of conventional kerosene. No changes to engines or aircraft infrastructure will be required to use the new fuel. Approval for the use of biofuel in aviation is expected soon in Europe. KLM, the world's oldest airline operating under its original name, hopes the move will result in a positive recommendation from the Sustainability Board of the Netherlands. KLM launched the first plane powered with biokerosene on the continent in November 2009 when it flew a select group of passengers with one engine running on 50 percent used cooking oil and 50 percent aviation kerosene. Other carriers are similarly exploring the use of biofuels to improve sustainability and lower carbon emissions. Continental, Japan Airlines and Virgin Atlantic are among those that have tried using fuel sustainably made from sources such as algae, coconut oil and jatropha. Brazilian airline TAM partnered with Airbus last year to become the first to fly a biokerosenefueled plane in Latin America. KLM's biokerosene is supplied by SkyNRG and made by Dynamic Fuels, a United States-based joint-venture of Tyson Foods and Syntroleum Corp. Dynamic Fuels operates a plant in Louisiana that is recognized as the first U.S. industrial-scale production facility for biofuels. The company makes fuel from animal fats such as inedible porcine fat, vegetable cooking oil used in frying, fat from wash water in beef rendering and from factory cooking operations, and unrefined, inedible soybean oil produced from the refining process. KLM, which merged with Air France in 2004 and has led among airlines in the Dow Jones Sustainability Index, said many factors affect the level of sustainability of biofuels. It ensures the quality of its biokerosene with advise from the Sustainability Board, which includes the Dutch wing of the World Wide Fund for Nature (WWF) and the Copernicus Institute of the University of Utrecht.

The carrier made clear its support for the WWF's Energy Report, which says alternative fuels made from biomass are the only appropriate replacement for fossil fuels for sectors such as the airline industry. "The route to 100 percent sustainable energy is enormously challenging," managing director Camiel Eurlings said in a statement. "The costs of biofuels need to come down substantially and permanently. This can be achieved through innovation, collaboration and the right legislation that stimulates biofuel in the airline industry, but with an eye on honest competition. We really need to move forward together to attain continuous access to sustainable fuel."
http://www.ihavenet.com/World-KLM-Airlines-To-Power-European-Flights-With-UsedCooking-Oil-AHN.html

Analysis

KLM Royal Dutch Airlines was founded in 1919, making it the world's oldest airline operating under its original name. In 2004, Air France and KLM merged to form AIR FRANCE KLM. The merger produced the strongest European airline group based on two powerful brands names and hubs Amsterdam Airport Schiphol and Paris Charles de Gaulle. The two airlines collaborate on three core activities while maintaining their own identities passenger transport, cargo, transport, and aircraft maintenance. In the Netherlands, KLM comprises the core of the KLM Group which further includes KLM cityhopper and transavia.com. KLM serves 135 destinations using a modern fleet of 157 aircraft and employs over 33,000 people around the world. KLM is a leader in the airline industry, which offers reliable operations and customer-oriented products resulting from its policy of enthusiasm and sustainable innovation. KLM is a member of SkyTeam, an airline alliance offering a network of 926 destinations in more than 173 countries. The KLM network connects the Netherlands to every important economic region around the world and, as such, serves as a powerful driver for the Dutch economy. Going green is all the rage these days and Dutch airline KLM is getting in on the action with a plan to fuel its planes with used cooking oil. Beginning in September 2011, more than 200 KLM flights between Amsterdam and Paris will run on biokerosene made from recycled cooking oil, the company announced Wednesday 22 June 2011. To produce the fuel, KLM will use a range of raw materials the airline believes can a substantively reduce CO2 emissions. KLM is claiming that they will only use materials that have little negative impact on biodiversity and the food supply. Used cooking oil from factories and hotels will fuel KLM flights between Amsterdam and Paris beginning September 2011. According to the airline, the fuel will meet the same technical specifications as those of conventional kerosene. No changes to engines or aircraft infrastructure will be required to use the new fuel. Approval for the use of bio-fuel in aviation is expected soon in Europe. KLM, the world's oldest airline operating under its original name, hopes the move will result in a positive recommendation from the Sustainability Board of the Netherlands. KLM launched the first plane powered with bio-kerosene on the continent in November 2009 when it flew a select group of passengers with one engine running on 50% used cooking oil and

50% aviation kerosene. Other carriers are similarly exploring the use of bio-fuels to improve sustainability and lower carbon emissions. Continental, Japan Airlines and Virgin Atlantic are among those that have tried using fuel sustainably made from sources such as algae, coconut oil and jatropha. Brazilian airline TAM partnered with Airbus last year to become the first to fly a biokerosene-fuelled plane in Latin America. KLM bio-kerosene is supplied by SkyNRG and made by Dynamic Fuels, a United States-based joint-venture of Tyson Foods and Syntroleum Corp. Dynamic Fuels operates a plant in Louisiana that is recognized as the first US industrial-scale production facility for bio-fuels. The company makes fuel from animal fats such as inedible porcine fat, vegetable cooking oil used in frying, fat from wash water in beef rendering and from factory cooking operations, and unrefined, inedible soybean oil produced from the refining process. KLM also supports the view published in the WWFs Energy Report which indicates that alternative fuels made from biomass are the only appropriate replacement for fossil fuels for such sectors as the airline industry. Eurlings: The route to 100% sustainable energy is enormously challenging. The costs of biofuels need to come down substantially and permanently. This can be achieved through innovation, collaboration and the right legislation that stimulates biofuel in the airline industry, but with an eye on honest competition. We really need to move forward together to attain continuous access to sustainable fuel. KLM has been committed to developing sustainable biofuel since 2007. Air France KLM is also an industry leader in the field of fuel efficiency. Air France KLM has been sector leader of de Dow Jones Sustainability Index for six successive years.

Article 8 Boeing Machinists Accept 4 Year Contract Extension

Windsor Genova Renton, WA

One-third of the 28,000-strong Boeing workers in Washington, Oregon and Kansas voted Wednesday to accept a four-year extension of their job contract to build 737 MAX planes. Tom Wroblewski, Local 751 district president of the International Association of Machinists & Aerospace Workers (IAM), praised the approval. "As a result of this vote, we have the strongest commitment to the future of aerospace jobs in Washington state that we've ever had. We've also preserved retiree medical and pensions for new hires. Those are things that very few working people in America have today," he said in a message posted on iam751.org. The extension of the contract expiring in September 2012 was welcomed by the aircraft maker. "This contract will help secure a better future for our employees, our customers, our communities and our company," said Jim Albaugh, president and CEO of Boeing Commercial Airplanes, in the company's website. "It's a balanced agreement that makes us more competitive and ensures that the 737 - the best single-aisle airplane in the world - continues to be built by the people who know how to do it best." Boeing announced last week that the company would produce the 737 MAX in the existing Renton facility if IAM members ratified the tentative agreement. According to Boeing, the new contract provides for annual wage and pension increases; a one-time ratification bonus of $5,000 to be paid on Dec. 15; productivity, quality and safety incentives; a new health care plan; and a joint panel to discuss labor-management issues. Washington state also stands to gain from the extended contract as it will keep 8,000 direct jobs and 12,000 indirect jobs not to mention $500 million in annual tax payment from Boeing. http://www.ihavenet.com/Investing-Boeing-Machinists-Accept-4-Year-Contract-ExtensionAHN.html

Analysis
Unionized Boeing Machinists voted overwhelmingly Wednesday 7th December 2011 to approve a four-year contract extension in a deal that grants the company a long stretch of elusive labor peace and likely ends a federal complaint that had become a hot topic for Republican presidential

candidates. Dozens of union members erupted in applause and cheers Wednesday night as Tom Wroblewski, president of Machinists District Lodge 751, announced that 74 percent of voting members chose to approve the deal. The union represents 28,000 workers in Washington, Oregon and Kansas. Boeing promised that if workers approved the pact, the company would build the new version of the popular 737 in the Puget Sound region, while the Machinists said they'd drop their allegations that Boeing opened a nonunion assembly plant in South Carolina in retaliation for previous strike. "This contract signifies jobs throughout the Northwest, throughout the region," said the union's aerospace coordinator, Mark Blondin. "The message of this contract is ... Boeing is acknowledging we have the deepest pool of skilled aerospace workers in the country." Machinists went on strike in 2005 and 2008. The latter strike helped delay delivery of Boeing's first 787, costing the company dearly. The deal guarantees Chicago-based Boeing a stretch of labor peace at a time when it badly needs it. Competition with European rival Airbus is tight, and looming budget cuts at the Defense Department are likely to cut into the company's defense business. In a lawsuit filed this year, the National Labor Relations Board claimed Boeing violated labor laws by opening the South Carolina line. The case became a major political issue, with Republican presidential candidates using it to bash the Obama administration. South Carolina Gov. Nikki Haley and the state's congressional delegation said the NLRB lawsuit threatened thousands of jobs and millions of dollars invested in the new Boeing facility in Charleston. The labor board is an independent agency dominated by the president's appointees. As part of the deal, the Machinists said they'd drop the matter. If the NLRB follows suit, it would remove a potentially damaging element for Obama in the 2012 campaign. The deal calls for annual wage increases of 2 percent, cost-of-living adjustments, an incentive program intended to pay bonuses between 2 percent and 4 percent, a ratification bonus of $5,000 for each member, and improvements in the pension program. But it also would raise workers' share of health costs. Crucially for the union, it would ensure that jobs for Boeing's updated 737 line the 737 Max stay in the Puget Sound region. Boeing said in July it was studying other locations for the new 737.

Several union members bitter over the decision to open the South Carolina plant said they hoped the deal marked the beginning of a warmer relationship with the company. "It's been a rough ride the last 25 years," said Robley Evans, a forklift driver and union official. "To think about having five years of labor peace and not the standard stuff we go through, it's good. We're hopeful this is the new way of negotiating."

Article 9 Qantas and Airbus seal biggest order in Australian aviation history
Firm order for 78 A320neo and 32 A320s

6 October 2011 Press Release

Qantas and Airbus have finalised a contract for 110 A320 Family aircraft, to help with the airlines fleet renewal and expansion plans in the coming years. The firm order for 78 A320neo and 32 A320s is the largest single order in Australian aviation history by aircraft units and follows a commitment signed in August. The new aircraft will be deployed across the Qantas Group on short to medium haul domestic and international operations and underpin the airlines commitment to build a fleet with the most fuel efficient and reliable aircraft in the market. The Airbus A320 will be the launch aircraft for Qantas' new, premium airline based in Asia and will support Jetstars expansion plans - including the establishment of Jetstar Japan, said Alan Joyce, Qantas CEO. The A320 Familys outstanding operational efficiency and comfort, plus its environmental credentials, make it the right choice for the Qantas Group. We are delighted that our A320neo and A320s are playing a vital role in Qantas future strategy, said John Leahy, Airbus Chief Operating Officer, Customers. Coming from one of the worlds great aviation pioneering companies, this order is a great endorsement of Airbus and of our ecoefficient aircraft products. The A320neo is a new engine option for the A320 Family to enter service in 2015. It incorporates latest generation engines and large "Sharklet" wing tip devices, which together will deliver 15 percent in fuel and CO2 emission savings. A320 Family orders to date already exceed 7,900, reaffirming its position as the worlds bestselling single-aisle aircraft family. To date over 4,790 have been delivered to over 330 customers and operators worldwide. The A320neo has over 95 percent airframe commonality with the existing A320 models while offering up to 500 nautical miles (950 kilometres) more range or two tonnes more payload. It is offered with engines from CFM Internationals LEAP-X or Pratt & Whitneys PurePower PW1100G. Qantas will make its engine decision at a later date. Airbus has received 1,245 A320neo orders and commitments since its launch just ten months ago, in December 2010. http://www.airbus.com/presscentre/pressreleases/press-release-detail/detail/qantas-and-airbus-sealbiggest-order-in-australian-aviation-history/

Analysis
Qantas and Airbus have finalised a contract for 110 A320 Family aircraft, to help with the airlines fleet renewal and expansion plans in the coming years. The firm order for 78 A320neo and 32

A320s is the largest single order in Australian aviation history by aircraft units and follows a commitment signed in August 2010. The new aircraft will be deployed across the Qantas Group on short to medium haul domestic and international operations and underpin the airlines commitment to build a fleet with the most fuel efficient and reliable aircraft in the market. The Airbus A320 will be the launch aircraft for Qantas' new, premium airline based in Asia and will support Jetstars expansion plans - including the establishment of Jetstar Japan, said Alan Joyce, Qantas CEO. The A320 Familys outstanding operational efficiency and comfort, plus its environmental credentials, make it the right choice for the Qantas Group. We are delighted that our A320neo and A320s are playing a vital role in Qantas future strategy, said John Leahy, Airbus Chief Operating Officer Customers. Coming from one of the worlds great aviation pioneering companies, this order is a great endorsement of Airbus and of our ecoefficient aircraft products. The A320neo is a new engine option for the A320 Family to enter service in 2015. It incorporates latest generation engines and large "Sharklet" wing tip devices, which together will deliver 15 percent in fuel and CO2 emission savings. A320 Family orders to date already exceed 7,900, reaffirming its position as the worlds bestselling single-aisle aircraft family. To date over 4,790 have been delivered to over 330 customers and operators worldwide. The A320neo has over 95 percent airframe commonality with the existing A320 models while offering up to 500 nautical miles (950 kilometers) more range or two tones more payload. It is offered with engines from CFM Internationals LEAP-X or Pratt & Whitneys Pure Power PW1100G. Qantas will make its engine decision at a later date. Airbus has received 1,245 A320neo orders and commitments since its launch in December 2010. Across the Tasman, Qantas confirmed it will be replacing its antique Jet Connect planes with new Boeing 737-800s, including in-seat in flight entertainment, rather than the embarrassingly bad offering of portable DVD players handed out to passengers on some flights at present. As Australian Business Traveler has previously reported, Qantas is also refitting its ageing Boeing 747s with the same interior amenities and seating as its A380s. "Staffs at Avalon are hard at work refitting Boeing 747s with A380 seats and interiors including the new Panasonic in flight entertainment," Joyce says, referring to the high-resolution touch

screens currently only seen on the A380s. The first upgraded 747 will be ready and flying within three months. By October 2012, Qantas expects 21 of its "largest aircraft" will be fitted with the same interiors, including fully flat Sky beds. It is said that the 23rd and final 747 will be flying with A380 interiors by June 2014; completing the refurbishment of the whole 747 fleet. Alan Joyce says Boeing is confident that it will be able to deliver Qantas' first long-delayed 787 in the second half of next year. However, he says, in light of the most recent Boeing delays, Qantas expects to actually take delivery of the 787 in January or February of 2013.

Article 10
Air Mauritius: testing times call for new business model Wednesday, 15 February 2012

Since posting final quarter losses compared to the rising profits of the previous year, Air Mauritius have decided to adopt a new commercial strategy to assist future growth. The national airline released financial statements detailing fourth quarter losses of 3.2 million for 2011 compared with profits of 12.2 million for the comparative period the previous year. In light of these results new approaches and operational changes will occur to secure financial stability of the company. As of 29 May 2012, Sydney and Melbourne flights will be suspended, while Perth will gain an additional frequency commencing 5/6 June 2012. Acting CEO, Andre Viljoen, addressed Air Mauritius hardships during this turbulent cycle. The results announced today are a reflection of the challenges that the whole airline industry is facing. Air Mauritius is no exception and has had to endure the impact of the economic crisis on most of its markets, especially in Europe affecting demand for Destination Mauritius, he said. The International Air Transport Association (IATA) said that airlines would further plunge in the red and would experience their worst losses since the 2008 financial crisis. Air Mauritius also cited a rise in oil prices as a detrimental factor to their business activities. The rising fuel cost represents an increase of nearly 12.5 million for the third quarter of the 2011 financial year compared to the same quarter in the preceding calendar, the airline noted in their financial statements. Shareholders funds reduced almost 20 million in the last nine months of 2011. These are testing times for the airline but the measures we are taking are necessary to assist the recovery process, ensure our sustainability as National Airline and eventually future growth, Mr Viljoen said. Travel Blackboard, Asia Edition, (Wednesday, 15 February 2012) http://www.etravelblackboardasia.com/article/81694/air-mauritius-testing-times-call-for-newbusiness-model

Analysis
Introduction:

Airline Mauritius airline has been the pride of the country so far and has been internationally recognized on a number of occasions for its service, product and standards. Air Mauritius has been contributing actively to the economic development of Mauritius. But unfortunately during these past five years, Air Mauritius has been going through very bad times and now the matter has worsened a great deal. The airline industry continues to be affected by the high fuel prices and the softening demand of air travel. Poor management, overstaffing, wastage and flying to the wrong destinations are also the causes of the downfall of the company. Air Mauritius has previously faced some bad situation during the past years but now the situation has reached its worse. The company is facing a financial turbulence and the national carrier said debt crisis are hurting demand in its main markets. Now, it is really high time that the company takes the matter in hand and come to a conclusion else, they are deemed to lose it which is very predictable. Many airlines around the world like the Air India, Kingfisher Airlines and British Airways are going through some rough times after encountering with the financial crisis. Air Mauritius is no exception but the company is not finding proper ways to deal with it, which is why they are stuck with numerous problems. At the end of 2011, IATA (International Air Transport Association) has noted that the global economic crisis is having an impact on the overall airline industry. Since 2008 financial crisis, it has been forecasted that airlines would face lots of difficulties and would experience their worst losses. For instance, it has been noticed that there have been lots of heavy losses incurred by airline companies all over the world since these last few months. Many of the airline industries have gone bankrupt and the Indian Ocean Airline is also severely affected, including Air Mauritius. From the outcome of the financial crisis of 2008, Air Mauritius succeeded in managing its financial situation through rigorous management. However, the national airline was severely affected by the crisis in the airline industry recently which caused them net losses of 3.2 million compared to the previous year for the same period where it has made a profit of 12.2 million. During the first nine months of 2011, the company registered net losses of about Rs 800 million (20.9 million) against a profit of 5.3 million during the previous year at the same period. This is caused by the increasing cost in oil prices, for instance the fuel cost represents an increase of nearly 12.5 million during the year compared to the year before that is the fuel cost alone

represents 37 million. The fuel cost is further impacted by the weakening of the Euro, thus fuel being paid in US dollars. Actually, Air Mauritius is being faced with increased competition and at the end of 2011; there is a decrease in tourist arrivals in Mauritius, that is -2.2% in December. With the competing airlines, Air Mauritius recorded only a small growth in the number of passengers carried at the expense of its financial performance. As Europe is the airlines main market, it is fundamental that this has a negative impact on Air Mauritius because of the worsening global economic crisis, the high oil prices and the volatility of the Euro/dollar rate. Therefore Air Mauritius has decide to take some measures that will promote sustainable development likely to generate profits. The main measure is to review the operation mode in some markets and to abandon the unprofitable destinations as these destinations incur high costs and no profit. Moreover, because of some unprofitable destinations, Air Mauritius has to change its strategies by looking for destinations that will generate revenue and eliminate the unprofitable ones. Therefore, in late October 2012, Air Mauritius aircraft will land more to Frankfurt, Geneva, Munich, Bangalore and Durban. The first three destinations will be served from Paris on a daily basis. It is through correspondence in Mumbai and Bangalore Chennai that will be served. The destination will be served from Durban to Johannesburg. However, Air Mauritius strengthen its routes to Paris, London, Mumbai, Delhi, Chennai, Kuala Lumpur, Singapore, Hong Kong, Shanghai, Perth, Johannesburg, Cape Town, Nairobi, St-Denis, St-Pierre, Antananarivo and Rodrigues because these can be profitable destinations. The other major strategic decision for the proposed alternative of the current fleet of four aircraft types by devices is to combine the properties used among others to reduce the effects of fuel costs. Airbus 340 will be by the A 330-200. Eventually, Air Mauritius proposes to match the level of airlines that have come out winners in the current crisis. Also there is no doubt there are external factors that have lead Air Mauritius with the current financial problems they are facing. Nevertheless, the stewardship of the national airline carrier has been an absolute disaster because it is thought that there has been mismanagement .The current state of affairs in the company was emphasized under the uncertainty and generally the lack of direction of those at the top. Constant government has no doubt forced Air Mauritius management

to make and take decisions which has harmfully affected the company that is the continuous change of the chief executive officer (CEO). Consequently, the tourism industry may also suffer from this crisis as transport is the key element to tourist experience and the integral part of the tourism industry. As MK is the flag carrier of Mauritius, it is vital that this will have an impact in the tourism industry as the world is facing a crisis, specially the Europeans with the volatility of the Euro and the rising price in oil. After having reviewed all these issues, its obvious that with the Euro zone Sovereign debt crisis and economic turmoil in the main market serviced by Air Mauritius, the situation remains highly challenging. High oil prices, continuous pressure on yield and depreciation of the Euro, will continue to severely affect the results of the Company. As per the cautionary announcement issued, the Board is closely monitoring the situation to ensure that the Companys long term interests are preserved. Measures to optimize the current network, reduce costs and improve the existing organizational structure are being implemented. Solutions: A partner would no doubt benefit Air Mauritius, but a tie-up is unlikely given the carriers relatively stable state and position as an end-of-line carrier. Air Mauritius should continue with its restructure, which will see European losses immediately stemmed, but gains from a renewed push into Asia will take some time to be realized. The carrier is positioning itself for the long term and must now ride out short-term volatile times, which has previously shown itself capable of achieving. Many also believe that Air Mauritius should be privatized or run by organizations such as Rogers or IBL group as they are Mauritian companies and are believed that they can handle the Paille en Queue well. Many people also believed that Air Mauritius will disappear soon and holds no future. They are very optimistic that the company will be taken by another one very soon. Only time can tells now!!

References
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http://www.segurancaaerea.coppe.ufrj.br/docs/A330-07.pdf http://www.airbus.com/aircraftfamilies/passengeraircraft/a380family/a380-800/ IBN Live, Mar 07, 2012 at 09:30pm IST (http://ibnlive.in.com/news/kingfisher-crisisworsens-oil-firms-stop-fuel-supply/237081-7.html) The Economic Times, Mar 2, 2012, 12.47AM IST (http://articles.economictimes.indiatimes.com/2012-0302/news/31116840_1_kingfisher-airlines-low-cost-airline-airline-companies) The Times of India, Mar 7, 2012, 10.05PM IST
(http://timesofindia.indiatimes.com/business/india-business/Kingfisher-Airlines-crisisOil-companies-stop-fuel-supply-due-to-non-payment-ofdues/articleshow/12178357.cms) The Economic Times, G R Gopinath (Founder,Air Deccan) Dec 1, 2011, 10.37am IST (http://articles.economictimes.indiatimes.com/2011-1201/news/30463091_1_aviation-sector-indian-airlines-passenger-airlines) Flightglobal, Mavis Toh (Singapore) 08:50 21 Mar 2012 (http://www.flightglobal.com/news/articles/kingfisher-to-suspend-all-internationaloperations-369752/) Flightglobal, Mavis Toh (Singapore) 10:01 12 Mar 2012 (http://www.flightglobal.com/news/articles/kingfisher-cancels-flights-as-pilotsfail-to-show-up-369365/) Flightsglobal, Mavis Toh (Singapore) 03:56 9 Mar 2012 (http://www.flightglobal.com/news/articles/iata-suspends-kingfisher-from-two-moreaccounts-settlement-systems-369307/)

The Sun, Virginia Wheeler and Caroline Grant (12 Jan 2011) http://www.thesun.co.uk/sol/homepage/news/3311241/Brits-desperate-for-seats-on-planes-trainsas-snow-buries-holiday-plans.html ArabianBusiness.com, Ed Attwood (Sunday, 19 December 2010 11:30 AM) http://www.arabianbusiness.com/update-2-flights-chaos-as-wintry-weather-hits-europe-s-airports368253.html Mail Online, Travelmail Reporter (12:27 GMT, 6 February 2012)
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