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World's Best Airline

Singapore Airlines was voted the best in the world for the second consecutive year by an annual survey of passengers which was dominated by Asian and Gulf Arab carriers, including Australia's Qantas. British-based consultancy Skytrax's 2008 survey involved more than 15 million questionnaires completed by passengers over an 11 month period and includes categories for catering, in-flight entertainment and airport lounges. Singapore Airlines, the first to fly the Airbus A380, retained the top spot as world's best overall airline and also garnered the award for the best business class.

Hong Kong-based Cathay Pacific took second place overall, and was also awarded the world's best first class and best first class catering. Qantas, which had a series of safety scares recently and put in place a string of belt tightenings because of high fuel costs, was voted third best airline and best first class lounge.

In the overall rankings, Thai Airways was voted number four as well as picking up 4th place in the best cabin staff section. Korea's Asiana Airlines showed one of the biggest improvements in the list, rising to the number 5 spot worldwide from number 12 last year, as well as taking the world's best cabin staff award and the best economy class.

Malaysia Airlines came in at number 6, followed by Qatar Airways, which also collected awards for the best airline and best cabin staff for the Middle East as well as best business class catering. Air New Zealand was voted 8th worldwide, and the best trans-Pacific airline, while Dubai's Emirates kept its position as the world's 9th best, as well as the carrier offering the best in-flight entertainment. Abu Dhabi's Etihad Airways rounded off the top-10 overall airlines, debuting at number 10. 

(Source: Reuters)

Airlines sign a Deal

BA, American and Iberia sign deal for flights between North America and Europe. British Airways PLC, American Airlines and Spain's Iberia SA have signed a joint business agreement on flights between North America and Europe. The three airlines add that they plan to file for worldwide antitrust immunity from U.S. authorities. They will also notify European regulatory authorities. A deal between the trio has long been anticipated. Virgin Atlantic has preemptively written to both U.S. Presidential candidates to warn that a deal will be anticompetitive on the lucrative trans-Atlantic route.

BA, AMR Corp.'s American and Iberia argued that a closer relationship on pricing and seat capacity will benefit customers by providing improved connections and flight schedules. Under the joint business agreement, the three airlines will co-operate commercially on flights between the U.S., Mexico and Canada, and the European Union, Switzerland and Norway while continuing to operate as separate legal entities. They will expand their codeshare arrangements on flights within and beyond the EU and U.S., significantly increasing the number of destination choices that the airlines can offer customers. 

(Source: The Associated Press ) 

Aviation to be included in the EU's Emission Trading Scheme

To howls of protest from airlines, the European Parliament approved a deal with governments on July 8 to include aviation from 2012 in the EU's Emission Trading Scheme, a key tool to fight climate change. Aviation generates 3 percent of all carbon dioxide emissions in the 27-member bloc but has been left out of the ETS so far because of concerns that its inclusion would damage the industry's ability to compete in international markets. With air traffic set to double by 2020, however, Europe is keen to apply the "polluter pays" principle as it tries to reduce output of greenhouse gases blamed for global warming.

The European Parliament voted 640 to 30 for a rule that airlines would have to cut emissions of carbon dioxide by 3 percent in the first year, and by 5 percent from 2013 onwards, paying for 15 percent of their emissions permits initially. The vote was the last step to turn the proposals into law. The system will apply to all airlines flying into and out of the EU, including non-European carriers.

A spokesman for German airline Lufthansa, one of Europe's biggest carriers, said: "From our perspective, the Emission Trading Scheme is ecologically counter-productive and economically harmful." Lufthansa estimates the scheme as approved will distort competition and cost it hundreds of millions of euros a year from 2012, he said.

The decision seems bound to raise the price of air travel and pit consumer-friendly deregulation policies that have brought cheap flights to the masses against the EU's ambition to lead the world in fighting climate change. 

(Source: Reuters)

Rolls-Royce, British Airways launch alternative fuel test program.  

Rolls-Royce and British Airways announced in July the start of an alternative fuel test program that "will seek to identify practical alternatives to the current industry-standard fuel kerosene."  The engine producer and the airline will initiate a joint tender process in an effort to find suppliers willing and able to offer samples for testing on a Rolls-Royce RB211 used to power a BA 747. The tests will be carried out on an indoor engine testbed at the Rolls-Royce facility in Derby.  The companies plan to select up to four alternative fuels for testing. Each company will be asked to supply up to 60,000 liters of its alternative fuel. "In each case, the engine will be operated through its full range of power settings including idle, acceleration, takeoff and cruise," Rolls and BA said. Testing is expected to be completed by the end of March 2009.

BA joins Air New Zealand, Continental Airlines, Japan Airlines and JetBlue Airways among carriers that have committed to test biofuels. Virgin Atlantic Airways is to date the only airline to carry out a biofuel demonstration flight.  

(Source:  Air Transport World)

Emirates feels financial pinch  

Emirates President Tim Clark said he expects the increase in fuel prices to cost the carrier as much as $500 million this year.  Speaking to la Repubblica, Clark said, "this year we expected profits to grow by about $500 million to nearly $2 billion, but the rise in crude [oil prices] already costs us more or less that amount. We too are enacting a cost reduction plan."

Clark revealed that EK pays $30 million more for fuel per week than it budgeted. "2008 is a tough year. Our yield is 15% up. But we need [the extra cost reductions] because our costs are 25% to 34% higher [year-over-year]," he added. Asked by this website if he expects a full-year profit, he said, "We have to wait and see."

One challenge will be to produce higher load factors, now needed in order to make flights profitable. "Before the high fuel prices we needed a load factor of 62% for the A380 to break even. Now we need a 70% load to do so," Clark said. 

(Source: Air Transport World)