Airlines Going Bust as Others Join Up

[SteveH]

Bad News Today as Hundreds of Passengers are Left Stranded Abroad and have to Find Their Own way Home

UK-Canadian airline grounded
by Catherine Woods - Friday, 29th August 2008

 http://realbusiness.co.uk/news/family-business/5377156/ukcanadian-airline-grounded.thtml

The Scottish brothers who founded Zoom Airlines have blamed the “unprecedented increase” in aviation fuel prices and the economic climate for the airline going bust.

John and Hugh Boyle pulled the pin on the company’s operations last night. Administration proceedings have begun in Canada and the UK to wrap up Zoom Airlines Inc and Zoom Airlines Ltd, respectively. Zoom had employed more than 600 staff.
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Twenty-six airlines around the world went out of business or into bankruptcy protection in the first half of this year.
That's a higher rate of failure than in the aftermath of 9/11.

IATA is bracing itself for more trouble.
A further dozen carriers are thought to be on the brink of going bust.
All regions are under pressure. Even China and India are seeing a slowdown.

[rjm]

I sympathise with them as about 10 years ago I was in Madrid and arrived at the airport to find my return flight to the UK cancelled, I went to the desk and saw a huddle of people, turned out the airline had gone bust that morning (they were called Debonair and one of the 1st budget airlines out of interest) I had topay fora new ticket with BA to get me home which cost me a small fortune, after many years of putting in a claim no compensation ever came as us passengers were insignificant creditors compared with the other vultures wanting their money.

[SteveH]

Alitalia seeks bankruptcy measure

 http://news.bbc.co.uk/1/hi/business/7588475.stm
 
Negotiations with unions will be critical to saving the airline
Troubled Italian airline Alitalia has applied for bankruptcy protection as it tries to agree a deal to ensure its long-term survival.

The carrier has sought court protection from its creditors, effectively declaring itself insolvent.

An administrator will be appointed to handle the process, with flights continuing while the firm plans a radical overhaul of its operations.

Losing 2m euros (£1.6m) a day, Alitalia has survived on a 300m-euro state loan.

Plans are being drawn up to split the carrier into two and to sell a stake in a new entity to a foreign airline.
 

[SteveH]

EU to investigate BA-AA alliance
BA Continues to Rule Fortress Heathrow and Dictate to Everyone.

 http://news.bbc.co.uk/1/hi/business/7587825.stm
 
The airlines say their tie up will allow them to compete more effectively
The European Commission has opened an antitrust investigation into a revenue-sharing deal between British Airways, American Airlines and Iberia.

"It is not a merger investigation and has no specific deadline," European Union spokesman Jonathan Todd said.

He said the EU initiated the investigation, which will consider if the deal breaches competition rules. It did not follow a specific complaint.

Virgin Atlantic has voiced concern about the deal.

The tie-up is the closest alliance possible under US airline laws, which forbids foreign ownership of major US carriers.

The BA alliance with American Airlines will allow the two carriers to agree fares, routes and schedules together. The move will also include Spain's Iberia, which is merging with BA.

The three airlines say it would enable them to compete more effectively but Virgin Atlantic said it would create "a dominant mega-power" on routes between Europe and the United States.
 

[SteveH]

Wrangling begins over BA ambition  

 http://news.bbc.co.uk/1/hi/business/7560804.stm

BA has had a colourful recent history
They are two of global aviation's biggest birds - and by cosying up close to each other they hope to keep themselves out of the turbulence rocking the world's airlines, especially on key transatlantic routes.

British Airways and American Airlines are effectively applying for the right to break the US laws that prevent companies from co-operating too closely.

Anti-trust immunity, as it's known, is designed to stop cartels unfairly dominating markets and it is a big issue in aviation.

The reason is that of the three big airline alliances operating out of Heathrow Airport, two have anti-trust immunity.

Skyteam, including Delta, Northwest and Air France is one. The Star Alliance including Continental and US Airways is the other.

But One World - the British Airways and American Airlines alliance - is the third, with no such immunity.

 Virgin believes that BA and AA are already too dominant - controlling 200,000 of the 480,000 take-off and landing slots at Heathrow.

And 62% of passengers travelling between Britain and America use one of the airlines.

[SteveH]

Virgin looking at buying Gatwick 

 http://news.bbc.co.uk/1/hi/business/7593310.stm

Sir Richard Branson has long called for an airport shakeup
Virgin Atlantic has confirmed it is interested in being part of a consortium to buy Gatwick Airport.

Its comments come two weeks after the Competition Commission said in an interim ruling that BAA may have to sell three of its UK airports.

Although the Commission does not release its full report until next year, it added that BAA may need to sell two of its three London airports.

BAA has ruled out selling Heathrow, which leaves Gatwick and Stansted.
 

[SteveH]

Thousands stranded by XL collapse 

http://news.bbc.co.uk/1/hi/business/7611639.stm

The collapse of the UK's third largest package holiday group has left tens of thousands of Britons stranded abroad.

The decision to place XL Leisure Group into administration has also left thousands of staff facing the axe.

Chairman Phil Wyatt said he was "totally devastated" by the failure which has grounded XL's 21 planes. The company flies to about 50 destinations.

There are 67,000 stranded who booked directly with XL, and another 23,000 who booked via other companies.

The Civil Aviation Authority(CAA) also said the firm had 200,000 advance bookings.

'Sad day'

"We've made every effort, myself and my fellow directors, to find new funding for the business - and it's a very sad day for me personally. I am totally devastated," XL chairman Phil Wyatt said.

David Clover, a spokesman for the CAA, said it was making arrangements to help customers of the four tour companies within the XL group.

"In respect of people who are currently abroad we're making arrangements and working very closely with the travel industry to organise repatriation flights.

"Clearly though, with XL Airways no longer operating, we're having to bring in substitute aircraft to bring people home."

He said package deals are covered by the CAA's Air Travel Organisers' Licensing (Atol) scheme and those customers will be offered repatriation flights or their money back if they have an advance booking.
 

[SteveH]

Alaska Airlines to cut 1,000 jobs 

 http://news.bbc.co.uk/1/hi/business/7613549.stm

Alaska Airlines is not the only airline struggling with high fuel prices
Alaska Airlines says it will cut up to 1,000 jobs and reduce flight departures by 15% as record oil prices and a slowing economy take their toll.

The airline made a $50m (£28m) loss in the first half of the year and said it needed to take "decisive action".

The job cuts, representing about 10% of the workforce, will begin from 9 November and affect pilots, cabin crew, technicians and service staff.

Airline and travel companies are struggling worldwide.

Alaska Airlines chief executive Bill Ayer said "the one-two punch" of record oil prices and a weak economy, on top of increased competition, had hurt the airline.

"Regrettably, a reduced schedule means we need fewer employees," he said.
 

[P-N]

http://uk.reuters.com/article/topNews/idUKLE50467920080914

Another one gone!!

[SteveH]

This is Another Firm Gone Bust Earlier in the Week

http://news.bbc.co.uk/1/hi/scotland/glasgow_and_west/7610205.stm

Flight worry after Seguro demise 
 
The Seguro desk at Prestwick Airport in Ayrshire is closed
Travellers stranded by the collapse of package holiday firm Seguro are facing a shortage of available flights, according to a leading travel agent.

Bill Munro, the owner of Scotland's largest travel agent, Barrhead Travel, said a combination of factors meant there were very few flights to sell.

Almost 2,500 holidaymakers are thought to have been abroad when Seguro went into administration on Wednesday.

The firm flew from airports in Kent and Prestwick in Ayrshire.

"It's come at an unfortunate time because there is so little availability just now and I don't think the public realise just how bad it is," said Mr Munro.

"It's been exacerbated with Ryanair cancelling flights from Edinburgh through late delivery of aircraft and there's up to 40,000 people there looking for alternative flights."
 

[andbod]

http://news.bbc.co.uk/2/hi/europe/7614336.stm

seems that Alitalia is not in good shape! If an agreement with unions is not found before Monday planes will start run low on fuel.

[Carlushika]

http://news.bbc.co.uk/2/hi/europe/7614336.stm

seems that Alitalia is not in good shape! If an agreement with unions is not found before Monday planes will start run low on fuel.

Bad news but at least it may keep "You know who" at home!

[SteveH]

Gatwick Airport put up for sale
 
http://news.bbc.co.uk/1/hi/business/7620293.stm

The UK's second-largest airport, Gatwick, has been put up for sale by its owner BAA.

The move comes four weeks after the Competition Commission said BAA may have to sell three of its UK airports because of market dominance concerns.

Several firms are said to be interested in buying Gatwick, which has been valued at £1.8bn by regulators.

Potential bidders include Australian company Macquarie, Germany's Fraport, and the owners of Manchester airport.

Virgin Atlantic said it would also be interested in bidding as part of a consortium.

"We are delighted that BAA has ended the uncertainty over Gatwick's future," said Steve Ridgway, Virgin Atlantic chief executive.

"Virgin Atlantic would relish the opportunity to bid for Gatwick as part of a consortium and inject our customer service expertise into any future running of the airport."

However there were misgivings at the Unite trade union, whose national officer, Steve Turner, said: "It simply beggars belief that a 'For Sale' sign can be hung across the country's second largest airport.

"Gatwick is a core component of the national infrastructure and an essential part of the UK's aviation sector, yet it is to be flogged off with little care for the wider social impact."
 

[lakelander]

Gatwick Airport put up for sale
 
http://news.bbc.co.uk/1/hi/business/7620293.stm

However there were misgivings at the Unite trade union, whose national officer, Steve Turner, said: "It simply beggars belief that a 'For Sale' sign can be hung across the country's second largest airport.

"Gatwick is a core component of the national infrastructure and an essential part of the UK's aviation sector, yet it is to be flogged off with little care for the wider social impact."






 

That's a bit rich considering it's already been previously sold to a Spanish company.

[SteveH]

Russia suspends regional airlines 

 http://news.bbc.co.uk/1/hi/business/7671189.stm

Flights of nine Russian airlines have been suspended
Russia's national aviation authority is suspending the flights of nine regional airlines that have not paid their service charges.

The authority, known as Rosaeronavigatsia, is owed between 10,000 and 19m roubles ($726,000;£416,000) by each carrier.

The suspension will come into effect on 17 October.

The airlines affected include Interavia and Dalavia, both of which fly to the Far East and Asia.

The other airlines stopped from flying are Aeroshchit, the Bugaruslan Flying School, Irkutsk Aeroclub ROSTO, Omskavia, Tesis and Ulan-Ude Aviation Plant Vyborg.

A statement from the authority said: "Despite repeated appeals from Rosaeronavigastia to the management of these companies, they currently have considerable unpaid debts."
 

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