Showing posts with label How do you hear me. Show all posts
Showing posts with label How do you hear me. Show all posts

Wednesday, 11 June 2014

New airport fuel station planned for Cairo International Airport

A new fuel station covering 19,000 metres and costing EGP 55m is to be created at Cairo International Airport, according to Mohammed Saeed, chairman of EgyptAir Ground Services. The company also intends to build an awning for workers and equipment with an area of 6,000 metres.
He added in a statement to Al-Borsa newspaper that the company hopes to build a supply and fuel station for ground equipment at Luxor Airport costing approximately EGP 2m. Fuel will be provided onsite for equipment operation, and the plan will be implemented in approximately two fiscal years.
Saeed added that the company will not be able to achieve its revenue goal for the current fiscal year. Reasons for this shortfall include smaller aircraft used by airlines operating at Egypt’s airports and a decrease in air traffic in the country.
He mentioned that anticipated profits for the end of the current fiscal year stand at EGP 26m, as compared to the goal of EGP 80m.
He added that EgyptAir Gound Services currently depends on its revenues from the 120 daily flights to Sharm El-Sheikh and Hurghada. The company also provides ground services at Cairo Airport and Alexandria’s Burg El-Arab airports.
Saeed explained that EgyptAir Ground Services is negotiating with 16 new foreign companies with the goal of providing goods and passenger transportation services within ground terminals. The negotiations will help the company to compensate for the recent freezing of several contracts with foreign companies due to their fear surrounding the deteriorating security situation in Egypt.
He pointed out that the company partnered with Nesma Airlines last February to provide ground services in 5 airports in the Kingdom of Saudi Arabia.
Those airports are Riyadh, Medina, Qassim, and Dammam, which represent the largest growing airports in the Kingdom of Saudi Arabia.
Ashraf Lamloum, Chairman of Nesma, said in previous statements to Al-Borsa, that the goal of an alliance with EgyptAir Ground Services is to increase both companies’ revenues. He added that Nesma hopes to compete to offer services in the Ha’il and Taif airports in the near future.
Lamloum noted that Nesma will provide all necessary equipment for operation, and EgyptAir will use its own employees for operations processes due to their extensive experience in the field.
Saeed pointed out that the company received several technical demands from workers, including travel allowances, who want equality with their colleagues in other airline companies.
EgyptAir Ground Services currently has contracts to service 168 foreign companies within ground terminals managed by the company, and to host approximately 104 incoming flights daily.

Newcastle Airport's fears over Scottish independence

Scottish independence could cost Newcastle airport thousands of passengers a year, its planning director has claimed.
Speaking to the BBC, Graeme Mason said he was concerned that the Scottish National Party’s pledge to half and then end APD north of the border should it win the devolution vote will tempt English travellers to book flights from Scotland.
He added: “Customers are very mobile; they’ll shop around for the cheapest flight and they’ll travel quite long distances to get those flights.”
And he called upon the British government to be ready to step in should Scotland vote for devolution adding: “There are a number of options open to the government.
“They could abolish APD altogether, or they can match any reductions made by Scotland.
“But if they don’t do this the North of England is going to be at a serious disadvantage to the rest of Scotland.”
However, Ivan Mckee, of Business For Scotland, argued abolishing APD would help the north east, adding: “Scotland is doing what it should be doing; we’re bringing ourselves into line with other countries across Europe who have much lower levels of air passenger duty than we currently have.
“It’s the best thing for the Scottish economy to do, and a growing Scottish economy would be good for the north east of England.”
Meanwhile, aviation minister Robert Goodwill argued a devolved Scotland would not be able to cut APD by as much as it is claiming.
A Treasury spokesman added: “The government has announced it will provide support for regional airports such as Newcastle with the Regional Air Connectivity Fund, which will encourage new routes from regional airports.”

Emirates Cancels Airbus A350 Order

Airbus lost a major order on Wednesday when Emirates cancelled its purchase of 70 A350s, dealing an unexpected blow to the plane maker and engine maker Rolls-Royce. The decision cuts the order book for Airbus's newest jet, which is due to enter service in around six months, by around 10 percent. Airbus said it followed a "fleet requirement review" as Emirates shifts towards the large A380 superjumbo, for which it is the biggest customer. Emirates was among the first buyers for the A350 when it placed the order for 50 A350-900s and 20 A350-1000s in 2007.
The deal was worth around USD$16 billion at 2007 list prices - or close to USD$22 billion based on the current list price - although launch customers typically negotiate discounts. Emirates was due to start taking deliveries of the A350 in 2019. The first A350 is due to be delivered to Qatar Airways in the fourth quarter of this year. "We are confident that we will sell the (production) slots in the coming months," an Airbus spokesman said. "There's no impact on the programme as deliveries were scheduled to start at the end of the decade."
Emirates has been pushing for Airbus to upgrade the A380 superjumbo with an upgraded engine, after increasing its total orders for the world's biggest passenger jet by 50 in November to 140 planes.
The carrier's chief executive, Tim Clark, said earlier this month that an upgraded A380 could have a 10-12 percent performance improvement and that "we are hoping to move on that pretty soon".
Emirates is also in the process of firming up an order for 150 Boeing 777Xs, of which Emirates has ordered 150 worth USD$76 billion at list prices.
Asked about the A350 order cancellation on Wednesday, an Emirates spokesman said: "The contract which we signed in 2007 for 70 A350 aircraft has lapsed. We are reviewing our fleet requirements."
Airbus said in a statement that it remained "very confident" in the A350 programme and that it expected the A350 order book to grow in 2014.
Rolls-Royce, which is the sole engine maker for the A350, said the Emirates decision would result in a GBP£2.6 billion hit to its order book.
"While disappointed with this decision, we are confident that the delivery slots which start towards the end of this decade vacated by Emirates will be taken up by other airlines," Rolls-Royce said in a statement.

Tuesday, 10 June 2014

Air Shows' Link to Military Recruitment Iffy

Flying free from federal budget cuts that grounded them last year, the Navy's Blue Angels will zoom at Mach-1 over the Latrobe area on Sunday at the Westmoreland County Air Show. But even at 700 mph, the Navy daredevils -- and other flashy military demonstration teams -- can't outrun questions about their future. Congress is debating whether those teams land enough recruits to justify multimillion-dollar costs, especially in an era of Pentagon austerity. The sequestration budget deal between Congress and the White House is expected to trim $45 billion annually from the Defense budget, and lawmakers have slashed other noncombat programs such as ceremonial bands.

A Tribune-Review analysis of Defense spending on the Blue Angels and the Air Force's Thunderbirds puts combined annual expenses at $70 million to $140 million, depending on how the budgets are calculated. The budget for the Army's Golden Knights is $303,000 this year without personnel costs, down 25 percent since 2012. Military officials defend the teams as time-honored institutions that woo youngsters into uniforms. Yet some experts say there's no way to track whether air shows lead to enlistments.

"We know that people who go to military air shows likely have served, or have no negative feelings about military service, and they're willing to reinforce that by taking their children to events like parades or air shows," said David Segal, a University of Maryland sociologist and armed forces expert.

"There probably is a payoff there, but we don't know what it is yet. The only way to study that would be to ask people, year after year, whether they went to an air show and whether it influenced their decisions as young adults to enlist."

The Navy and Air Force teams take turns headlining about 70 of the more than 300 air shows held annually in the United States, according to the Virginia-based International Council of Air Shows, the industry's trade organization.

Understated numbers?

Without providing detailed budgets, Air Force officials told Congress that the Thunderbirds cost taxpayers about $35.5 million a year.

Air Force Maj. Darrick Lee said the Thunderbirds' budget this year is about $30 million, not including personnel costs. When in host cities for days, Lee said, "We're going into schools and meeting with a wide range of citizens. We're educating people about their Air Force."

Air Force studies say it consistently met enlistment goals since 1999, including 2013, when sequestration grounded planes. With the Thunderbirds mothballed, the Air Force and Air National Guard enlisted 44,858 recruits -- 2,266 more than planned, according to the Pentagon. The Navy says it spends about $40 million annually on the Blue Angels program, including the Marines Corps' "Fat Albert" C-130J Super Hercules support plane. With the joint Navy-Marine program grounded last year, the two services exceeded enlistment goals with 86,614 active and reserve personnel. A 2012 analysis performed at the Naval Postgraduate School by senior officers Andre Fields, Donald Gardner and Christopher Cousino suggests the Navy failed to disclose the full costs of the Blue Angels.

Adding up the 2009 estimated expenditures for pay, housing, medical services, retirement benefits, fuel, maintenance and aircraft costs spread over time -- plus the risks of damage to planes or injury to personnel -- brings the Blue Angels' real price tag to nearly $99 million per year, at least twice the official estimate, they said.An F-18 Hornet for the Blue Angels costs more than $21 million. A new "Fat Albert" runs nearly three times that, according to recent congressional testimony.

"The Navy leaders left out relevant costs," explained Hoover Institution research fellow David R. Henderson, a professor of economics who supervised the analysis.

Henderson notes he does not speak for the Navy, but he defends the study and its conclusion: When it comes to recruiting, the team's "costs outweighed the benefits."

For every $100 spent on the team, he said, the Navy recoups 83 cents in recruiting benefits -- and it remains a bad deal even if the Navy's lower cost estimates are used.

The Navy did not return messages seeking comment.

Demographics matter

Industry surveys reveal air show spectators are similar to those who watch professional tennis or golf: overwhelmingly white, married, well-educated and affluent. Couples in their mid-40s, who bring children, dominate the crowds; two of every five adults boast a household income above $75,000. "For advertisers, we're right in the sweet spot," said International Council of Air Shows President John Cudahy.

But it might not be so sweet for military recruiters.

An Army National Guard sports marketing campaign landed the service in the congressional hot seat. A 2012 report found the Guard spent $32 million on NASCAR and IndyCar sponsorships but could not prove it netted one recruit. Like 66 percent of adults at an air show, about seven in 10 NASCAR fans is older than 35 -- too old to enlist.

Sociologists say military recruits are a diverse group, but certain factors make someone more likely to enlist. Generally ages 19 to 21, they typically grew up in single-parent or nontraditional families and enlisted a year after high school. The more education and wealth their parents have, the less likely they will join.

The proportion of blacks and Hispanics enlisting is far larger than those attending air shows.

All-American events

Beyond recruitment or a temporary economic spark, experts say air shows might fulfill a more important purpose.

Only a few Americans are able or willing to enlist. Congress continues to shave costs by closing and consolidating bases. Veterans from World War II and the wars in Korea and Vietnam are aging, and the military likely never will be as large as during the draft era.

So for millions of Americans, air shows are one of the few tangible ties to their armed forces.

Military branches "want to continue to connect to the American people, and air shows do that so organically," Cudahy said. "When you go to a show, you'll see military aircraft from earlier times next to the most high-tech machinery built today.

"Only 1 percent of Americans will serve in the military, which is why air shows have become a continuing conversation with the American people. They showcase the military at its finest and remind everyone what a great brand they are.

"It's hard to watch a cutting-edge ballistic submarine going through its paces, but everyone can look up to the sky and see the Navy's Blue Angels."

United Airlines overhauls frequent flier program

United Airlines on Tuesday made a dramatic change to its frequent-flier program, basing earnings on dollars spent rather than miles flown. Chicago-based United’s new MileagePlus program mirrors a move made by Delta Air Lines earlier this year. It’s aimed at rewarding big-spending fliers who are most profitable for the airline, making corporate travelers the big winners and most leisure travelers the losers. The switch to base awards on fares, specifically base fare plus carrier-imposed surcharges but not taxes and airport charges, will take effect March 1 of next year and applies to flights on United, United Express and most United-issued tickets for flights on the company’s airline partners.
 
“It’s a risky move given United’s current underperformance versus Delta on both operating and financial measures,” said Brian Karimzad, director of MileCards.com. “Many of United’s most frequent flyers are frustrated with the airline right now.”
 
Years ago, fares correlated more closely with miles traveled, so miles were a good gauge for money spent with the airline. That's no longer true. Flights of the same number of miles could cost $200 or $1,000. Karimzad said American Airlines, the only network carrier to continue to use miles, will likely follow suit by switching to a dollar-based award system, although it probably won’t announce a change until its merger with US Airways is further along next year, with changes potentially taking effect in 2016. Southwest Airlines, the biggest carrier at Chicago Midway, and JetBlue Airways already base awards on spending, rather than miles.
 
However, Brian Kelly, of ThePointsGuy.com, said American might continue with miles-based awards to differentiate itself from the competition.
 
He called United’s change “brazen” and a “cut-and-paste” of Delta’s reward program announced in February. “United is still stumbling from their merger,” he said, referring to the 2010 combination with Continental Airlines. “Their customer service is terrible and they’re losing money…to throw this curveball at customers is bold move.” By contrast, “Delta at least has gotten their act together,” he said.
 
United fliers overall are likely to earn fewer awards with the new program, he said. Under United’s plan for next year, frequent fliers will earn five miles for every dollar spent, while those with premier status will earn accelerated rewards. For example, Premier Silver fliers, the lowest premier tier, will earn seven miles per dollar, while Premier 1K fliers, the highest tier, will earn 11 miles per dollar.
 
“These changes are designed to more directly recognize the value of our members when they fly United,” Thomas F. O’Toole, president of MileagePlus, said in a statement.
 
The clear winners are fliers who often buy pricey tickets for short flights. For example, a $1,000 flight from Chicago to Kansas City will earn 5,000 miles under the new program, compared with just 800 miles under the current one, Karimzad said. And international fliers who buy first-class or business class tickets will do well. For example, a $7,000 ticket from New York to London will earn 35,000 loyalty miles, compared with 10,500 today. Losers are business travelers who fly long distances in coach and leisure travelers, he said. However, the change is a mixed bag for most business travelers who fly on a variety of fare types, he said. And those who earn most of their miles on the ground -- through an airline credit card, for example -- won’t be affected.
 
United’s change could affect how business travelers book travel, providing an incentive to buy pricey tickets so they can accumulate more award miles, Kelly said. Many business travelers keep their frequent-flier awards even though the company pays for the flight. United said that next year it plans to offer members new ways to use award miles, including for single-flight purchases of extra legroom and to buy subscriptions that include extra legroom and checked baggage. That change is likely aimed at infrequent fliers who will have something to spend awards on because they won’t rack up enough miles under the new plan to pay for a roundtrip ticket, Karimzad said.
 
The new earning structure will not affect the way members qualify for premier status in 2015, the airline said.
 
Overall, United’s change, along with its new dollars-spent requirements to achieve elite status, might affect which airlines Chicagoans fly.

“This is a point when you reevaluate your loyalty,” Kelly said. “Instead of hustling to get elite status on United, maybe you start flying an airline you actually enjoy flying or one that gives you better perks."