Posts Tagged ‘European Union’


[Euractiv.com] Russian Prime Minister Dmitry Medvedev threatened on Tuesday (5 August) to retaliate for the grounding of a subsidiary of national airline Aeroflot because of EU sanctions, with one newspaper reporting that European flights to Asia over Siberia could be banned.

Low-cost carrier Dobrolyot, operated by Aeroflot, suspended all flights last week after its airline leasing agreement was cancelled under European Union sanctions because it flies to Crimea, a region Russia annexed from Ukraine in March.

“We should discuss possible retaliation,” Medvedev said at a meeting with the Russian transport minister and a deputy chief executive of Aeroflot.

The business daily Vedomosti reported that Russia may restrict or ban European airlines from flying over Siberia on Asian routes, a move that would impose costs on European carriers by making flights take longer and require more fuel.

Vedomosti quoted unnamed sources as saying the foreign and transport ministries were discussing the action, which would put European carriers at a disadvantage to Asian rivals but would also cost Russia money it collects in overflight fees.

Shares in Aeroflot – which according to Vedomosti gets around $300 million a year in fees paid by foreign airlines flying over Siberia – tumbled after the report, closing down 5.9% compared with a 1.4% drop on the broad index.

Siberia ban would force EU carriers into costly detours

At the height of the Cold War, most Western airlines were barred from flying through Russian airspace to Asian cities, and instead had to operate via the Gulf or the US airport of Anchorage, Alaska on the polar route.

European carriers now fly over Siberia on their rapidly growing routes to countries such as China, Japan and South Korea, paying the fees which have been subject to a long dispute between Brussels and Moscow.

Vedomosti quoted one source as saying a ban could cost airlines like Lufthansa, British Airways and Air France €1 billion over three months, but industry experts said that figure was probably too high.

Avoiding Russian airspace would probably be 25-50% more expensive than paying fees for transit, said Russian aviation consultant Boris Ryabok, estimating European airlines would lose around $100-200 million per year, less than the cost to Russia of the lost fees.

Lufthansa said it operates about 180 flights a week through Siberian airspace but declined further comment, as did British Airways.

The EU has widened its sanctions after last month’s downing of a Malaysian airliner over territory in eastern Ukraine controlled by pro-Moscow rebels, with the loss of 298 lives.

 

Read the full story at Euractiv.com…..

 


Euactiv.com
6th Aug, 2014


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[Washington Post] DUBLIN — Aer Lingus welcomed a court victory Tuesday that permits British authorities to keep investigating Ryanair over its ownership of a 30 percent stake in Aer Lingus, a sore point between Ireland’s two major carriers.

Ryanair said it would appeal Tuesday’s judgment to the UK Supreme Court. Photo: Wikipedia

Ryanair said it would appeal Tuesday’s judgment to the UK Supreme Court. Photo: Wikipedia

Ryanair sought to block the probe into whether its status as the No. 1 shareholder in Aer Lingus represents a threat to competition on British-Irish air services. Ryanair lawyers argued that Britain’s Office of Fair Trading had no jurisdiction to investigate two Dublin-based airlines, and that the probe launched in 2010 came too late.But the Court of Appeal in London sided with the Office of Fair Trading and Aer Lingus, which wants Ryanair to be forced to sell. Ryanair built its stake as part of a hostile 2006 takeover bid that was blocked both by European Union regulators and Ireland’s government, which retains a 25 percent stake.

Ryanair said it would appeal Tuesday’s judgment to the UK Supreme Court.

Ryanair chief executive Michael O’Leary says he expects eventually to purchase the government’s stake to take control of Aer Lingus because of Ireland’s rapid descent to the brink of bankruptcy, culminating in a……

Read the full story at The Washington Post….


By Associated Press
Tuesday, May 22



[BA-Touchdown] British Airways’ home hub T5 has been voted the World’s Best Airport Terminal by airline travellers at the World Airport Awards held at the Passenger Terminal Expo in Vienna.

“Despite initial teething problems when Terminal 5 opened in 2008, it has since become a firm favourite with passengers,” said Edward Plaisted of Skytrax.

“Despite initial teething problems when Terminal 5 opened in 2008, it has since become a firm favourite with passengers,” said Edward Plaisted of Skytrax: Photo Wikipedia

Organised by independent survey company Skytrax, the awards are based on 12 million customer surveys completed over ten months covering 388 airports.

“Despite initial teething problems when Terminal 5 opened in 2008, it has since become a firm favourite with passengers,” said Edward Plaisted of Skytrax. “The architecture, ambience and terminal layout was repeatedly mentioned in the feedback in the survey, as well as the extensive range of shopping and dining options in the departures area.”

John Holland-Kaye, commercial director of Heathrow, said, “We are thrilled that Heathrow has been rewarded for a third time at the prestigious World Airport Awards.“Terminal 5 is a great showcase of our vision of Heathrow’s future and the level of passenger experience we are working to deliver right across our airport.

“Together with a shopping experience which responds to our customer’s demands, we are proud that our work towards becoming Europe’s hub of choice is being recognised by the most important judge, our passengers.”

Iberia’s home hub, Terminal 4 at Madrid’s Barajas airport, was voted the fifth best terminal in the world. Other airport terminals featuring in the top five this year were Singapore Changi Terminal 3, Beijing Capital Airport Terminal 3, and Terminal 2 at San Francisco International Airport.

Read the original story at BA-Touchdown……


BA Touchdown
3rd May 2012



[Brussels 27th April: Tax-News] Policies are needed that re-invest aviation tax receipts back into the industry  and to ensure that aviation is treated as an economic catalyst not a ‘cash cow’,  says the International Air Transport Association.

Last November, the heads of Easyjet, IAG, Ryanair and Virgin Atlantic wrote to the UK government calling for APD to be scrapped entirely

Last November, the heads of Easyjet, IAG, Ryanair and Virgin Atlantic wrote to the UK government calling for APD to be scrapped entirely

Pointing to the European Union’s (EU) decision to include aviation in its emissions trading scheme (ETS), IATA Director General and CEO Tony Tyler told the International Civil Aviation Organization (ICAO) Air Transport Symposium in Montreal that a globally-coordinated approach is needed to manage the aviation industry’s contribution to man-made CO2 emissions rather than a regional approach which “distorts markets”.

“Aviation has committed to three targets, the most ambitious of which is to cut net emissions in half by 2050 compared to 2005. We cannot do that without government cooperation. As aviation is a global industry, that cooperation   must be coordinated through ICAO,” Tyler said. “That is why Europe’s inclusion of international aviation in its emissions trading scheme is counter-productive. it will not have the positive impact on sustainability of globally coordinated measures through ICAO. On top of that, the unilateral and extra-territorial   approach is seen by non-European states as an attack on their sovereignty.”

The EU Emissions Trading Scheme was extended to aviation activities from or to European soil on January 1, 2012, to provide a solution to taxing aviation emissions, which were excluded from the Kyoto Protocol. Under the ETS, airlines   operating into and out of the EU, regardless of how long that flight is in EU airspace, will be required to surrender varying emission allowances, and will be required to purchase any additional permits outside of their free allowance.

Airlines are required to immediately begin purchasing emissions allowances, but are only expected to remit the sums in 2013 meaning that Europe will have until April 30, 2013 – when airlines will be required to buy polluting rights   for 2012 – to decide whether to follow through with the penalties for non-compliance provided for in the EU Directive. In the event that airlines fail to comply, the European Union has said it will impose fines of up to EUR100 for each tonne   of carbon dioxide emitted without the payment of a permit, and eventually enforce an EU-wide ban on the offending airline.

Last month, the heads of some of Europe’s major airlines and aviation engine   manufacturers called upon EU leaders to take action and stop an escalating trade conflict with China and other countries opposing the ETS. The nine CEOs warned   that countries opposed to the ETS are preparing countermeasures and restrictions on European airlines, such as special taxes and traffic rights limitations. The letters were signed by the bosses of Airbus, Air Berlin, Air France, British Airways, Iberia, Lufthansa, MTU Aero Engines, Safran and Virgin Atlantic and   addressed to Prime Ministers David Cameron of the UK, Francois Fillon of France, and Mariano Rajoy of Spain, and German Chancellor Angela Merkel.

“Nobody wants a trade war,” said…..

Read the rest of this story at Tax-News…..


by Ulrika Lomas, Tax-News.com, Brussels
27 April 2012



[Reuters] China Eastern Airlines (0670.HK) is set to place a $6 billion (3.7 billion pounds) order for up to 20 Boeing 777 jets, while simultaneously emerging at the centre of an aviation row between China and the European Union by stalling a recent Airbus deal, people familiar with the matter said.

The order for wide-body 777s follows a fierce contest between Boeing and Airbus

The order for wide-body 777s follows a fierce contest between Boeing and Airbus

The order for wide-body 777s follows a fierce but discreet contest between Boeing and Airbus and allows the U.S. planemaker to bounce back after China’s third-largest airline cancelled an order for 24 of its latest flagship 787 Dreamliners last year.

Besides handing the 777 order to Boeing, China Eastern is stalling on the completion of a $3 billion order for 15 Airbus A330 aircraft announced last October, two of the people said.

Boeing, Airbus and China Eastern declined to comment.

The deals took shape at different times and for different plane types, but together they highlight the stakes involved as planemakers court the world’s fastest-growing aviation market under the shadow of a recent trade dispute between China and Europe.

China and more than 20 nations oppose EU plans to force airlines to adopt a carbon emissions-capping scheme that they say will penalise foreign long-haul carriers and infringe sovereignty. Airbus has said some…..

Read the full story at Reuters….

 


Reuters: 26th April, 2012
Reporting by Tim Hepher,
Kyle Peterson, Fang Yan



Deutsche Lufthansa AG (LHA) is struggling to offload discount airline BMIbaby, potentially reducing proceeds from the sale of its entire U.K. business to British Airways parent IAG.

German turnaround specialist Intro Aviation GmbH, which had expressed an interest in BMIbaby, has ended talks

German turnaround specialist Intro Aviation GmbH, which had expressed an interest in BMIbaby, has ended talks

German turnaround specialist Intro Aviation GmbH, which had expressed an interest in BMIbaby, has ended talks, Managing Director Peter Oncken said in a e-mail. Charter carrier ACL has also dropped plans to make a bid, said a person familiar with the matter who declined to be identified discussing private talks.

IAG, or International Consolidated Airlines Group SA (IAG), agreed in December to pay 172.5 million pounds ($274 million) for BMI, while negotiating a “significant” discount should Lufthansa fail to find a home for the no-frills operation. The acquisition won European Union clearance on March 30, and London-based IAG is aiming to complete it by April 20.

“BMIbaby is not a very attractive asset,” said Joe Gill, an analyst at Bloxham Stockbrokers in Dublin, who follows low- cost carriers. “It’s getting flame-grilled at the moment because the market in northern England is incredibly competitive.”

BMI said March 5 that two parties were in the running to take over its discount arm, one of them an EU-based airline group operating in several countries, the other a U.K.-based company. Both parties aimed to keep BMI’s bases, it said, adding that a deal would be signed with one “in the next few weeks.”

“Lufthansa rejected a non-binding offer from us, rendering further discussions redundant,” Oncken, who founded Intro with German retail entrepreneur Hans Rudolf Wohrl, said in an e- emailed response to questions, adding that his company could resume talks with IAG after the takeover.

Like Intro, Dublin-based ACL signed an agreement allowing it to examine BMIbaby’s books, but isn’t currently considering an approach, according to the person familiar with its plans. Calls to the company weren’t returned.

BMI spokeswoman Katherine Hill said talks remain “ongoing” with potential buyers for BMIbaby, which has its main base at East Midlands airport between the English cities of Derby and Nottingham, reiterating comments from British Airways last week. Claudia Lange, a spokeswoman for the German company, referred all enquiries to BMI….

Read the full Bloomberg News story here….


By Steve Rothwell and Alex Webb
Apr 17, 2012



Venezuela ’s state-run airline, Conviasa, has been banned from flying to countries in the European Union because of safety concerns, European transportation regulators said Tuesday.

Venezuela ’s state-run airline, Conviasa, has been banned from flying to countries in the European Union because of safety concerns

Venezuela ’s state-run airline, Conviasa, has been banned from flying to countries in the European Union because of safety concerns

The airline’s only European destination was Madrid. Most of its flights are within Venezuela but it also flies to Bogotá, Colombia; Buenos Aires; and several Caribbean islands.

A report by the European Commission  said that the Spanish authorities found “numerous serious safety deficiencies” during inspections of Conviasa planes.

The report also cited two fatal accidents involving Conviasa flights, including one in 2010 that, according to news reports, killed 17 people. It said that Conviasa failed to show it had taken adequate steps to prevent future accidents.

The Venezuelan Foreign Ministry rejected the action as disproportionate.

Full story from The New York Times….


By 
Published: April 4, 2012