Travel News
Doncaster Airport to Close After Failing to Find a Buyer - BLOOMBERG
BY , Bloomberg News
(Bloomberg) -- Britain’s Doncaster Sheffield Airport will close due to a lack of “tangible proposals” for its future ownership and financial viability.
Owner Peel Group Ltd. conducted a strategic review of the airport and will wind down services from Oct. 31, it said Monday. Peel pointed to high fixed costs and uncertainty over future income in saying it couldn’t responsibly accept an offer of public cash to keep the terminal running into next year.
The closure will leave Leeds-Bradford as the only airport in Yorkshire, impacting travel in the region, though Manchester, East Midlands and Humberside airports are all no more than 50 miles away. New UK Prime Minister Liz Truss had promised to “protect this airport and this infrastructure” when questioned in the House of Commons after taking on the role.
According to data from Cirium, Doncaster Sheffield was the 26th biggest airport in the UK pre-pandemic. More than 1,800 departing flights were scheduled last year, with Wizz Air Holdings Plc its largest operator, followed by TUI AG. Wizz closed its base at the airport in June.
Manchester Airports Group, which like many other UK aviation firms has been short on staff since the Covid pandemic roiled travel markets, offered Doncaster Sheffield staff a guaranteed interview at its three hubs of Manchester, East Midlands and London Stansted.
(Updates with Manchester Airports recruitment in final paragraph)
Airlines Would Have to Disclose Fees Under New US Proposal - BLOOMBERG
(Bloomberg) -- President Joe Biden lashed out at airlines over “hidden fees” he said took money from Americans already facing persistent high inflation, as he unveiled plans for new regulations that would force air carriers and internet-service providers to be more transparent about charges.
“Junk fees are hitting families at a time when they can’t afford it,” Biden said at a meeting of the White House Competition Council on Monday, detailing efforts by the White House to battle rising costs that threaten Democrats’ prospects in November.
“I’m directing members of the council to sharpen their focus on lowering costs for families,” he said. “This isn’t just some abstract goal, because the problem isn’t just theoretical.”
A proposed rule would require airlines to disclose more information about the fees they charge -- such as those levied on passengers for canceling a trip or parents seeking to sit next to their children on a flight.
Biden said consumers shouldn’t be forced to pay fees to rebook flights, even if the airline had canceled. “Come on, man,” the president said. “It’s just not fair.”
In the agriculture sector, the administration is also proposing to strengthen competition rules in poultry and livestock markets. Biden said major meat processors act as middlemen, controlling the market at the expense of ranchers and consumers.
And he touted expected Federal Communications Commission requirements for internet-service providers to offer a clear breakdown of fees and other charges -- similar to the nutrition label found on food purchased at grocery stores -- to help consumers more easily comparison shop.
“It’s all taking money out of the pockets of average Americans,” Biden said.
Polling Troubles
The efforts come amid the highest inflation in decades, which has damped prospects for Democrats to keep their narrow control of both chambers of Congress in the midterm elections. A Gallup survey earlier this month found that a 56% majority of Americans say inflation is causing financial hardship for their household, while around eight in 10 Americans rate the economy as “only fair” or “poor,” despite strong employment data.
Biden has planned a series of events throughout the week intended to highlight government efforts to combat rising prices, including one on health-care costs scheduled for Tuesday and a summit on food security planned for Wednesday.
The new airline regulation would require that carriers, travel agents and online-ticket portals display all costs related to baggage options, flight changes and seat selection, the Department of Transportation said in a press release.
“Airline passengers deserve to know the full, true cost of their flights before they buy a ticket,” Transportation Secretary Pete Buttigieg said in the release. “This new proposed rule would require airlines to be transparent with customers about the fees they charge, which will help travelers make informed decisions and save money.”
The proposal will dramatically improve consumer protections over more generic disclosure requirements imposed a decade ago, said Charlie Leocha, president of advocacy group Travelers United Inc. But the trade group Airlines for America said carriers, which are fiercely competitive, already offer “transparency to consumers.”
Flight Delays
Buttigieg and the airlines have sparred for months over a surge in flight delays and cancellations as travel resumed rapidly in the aftermath of the coronavirus pandemic. In recent weeks, the Department of Transportation unveiled a new online dashboard that details what services US airlines offer when flights are delayed or canceled -- a move the White House says led some carriers to proactively improve offerings for waylaid passengers.
The White House also said action is expected on an FCC proposal for mandatory disclosure of broadband fees. The requirement will help consumers comparison shop among internet-service options, something that will promote competition and lower prices, the White House said.
The FCC proposed the so-called “broadband nutritional label” in January. Chairwoman Jessica Rosenworcel may ask fellow commissioners to adopt the item this week, said Paloma Perez, an agency spokeswoman.
Broadband providers, in comments to the FCC, said requiring too many details would confuse consumers and burden companies. Consumer advocates in their comments have said the industry’s current disclosures are incomplete and confusing.
Remote Work Drove Over 60% of House-Price Surge, Fed Study Finds - BLOOMBERG
(Bloomberg) -- The shift to working from home drove more than half of the increase in house and rent prices during the pandemic and will likely drive up costs and inflation going forward as the shift becomes permanent, according to research from the Federal Reserve Bank of San Francisco.
“The transition to remote work because of the COVID-19 pandemic has been a key driver of the recent surge in housing prices,” economists Augustus Kmetz and John Mondragon, of the San Francisco Fed, and Johannes Wieland of the University of California, San Diego, wrote in a note published Monday.
House prices rose 24% in the two years ended November 2021, the authors wrote. More than 60% of that increase is attributable to the rise in work from home during the pandemic -- a trend that has persisted, with 30% of work still being done from home as of last month.
“This suggests that the fundamentals of housing demand have changed, such that the persistence of remote work is likely to affect the future path of real estate prices and inflation,” the economists wrote.
The authors, who adjusted housing data to account for the migration from expensive cities to more affordable areas that occurred during the pandemic, found that each 1 percentage point increase in remote work results in about a 0.9 percentage point increase in house prices. The impact on rent prices has been identical.
Abuja-Kaduna train remains shut, says FG - PUNCH
The Federal Government has said that the Abuja-Kaduna rail lines will remain shut until those held captive by bandits are released.
Speaking to journalists in Lagos on Wednesday, Managing Director, Nigeria Railway Corporation, Fidet Okhiria, disclosed that four railway workers were among those still being held captive.
He noted that the corporation had restored the damaged rolling stock and fixed the track, but the train service would not resume without the safe release of the remaining passengers held hostage.
“Government has set up a committee to ensure maximum security for both train passengers and facilities during operation. We believe proper security measures should be put in place and until then, the Federal Government won’t approve the functioning of the train station. The minister of transportation is leading the struggle for the safe release of those still in captivity. We could not go with force to ensure no one loses their life. We are talking about present-day technology so that we can have real-time monitoring and deploying a lot of security agencies to be at strategic locations. We have made several visits to the IG, to the ministry for information, and we are working together to ensure that Nigerians are safe, not just the rail users. Anytime they release some people, we crosscheck from our manifest to ensure that their names are on the manifest and we do the report to the appropriate authority.”
Okhiria further said that the suspension of the Abuja-Kaduna train service within five months had cost the Nigerian Railway Corporation N531m in revenue loss, noting that the amount represented what could have been made through ticket sales for the standard gauge passenger train, which was attacked by terrorists about six months ago.
“Since terrorists on March 28 attacked the Abuja-Kaduna train, killing eight people and abducting 62 passengers, it has not resumed operation. We have lost N531m between March 28 when the train attack happened and August through the expected ticket sales on the suspended Abuja-Kaduna Train Service.”
The NRC boss said the Lagos-Ibadan standard gauge train was running four trips daily, just as the other regular train service, including Warri-Itakpe line.
Abuja airport hosted five million passengers in 2021 – FAAN
No fewer than 5,323,905 passengers passed through Nnamdi Azikiwe International Airport, Abuja, between January and December 2021.
This shows a 37.23 per cent increase from 2020.
The Managing Director/Chief Executive Officer of Federal Airports Authority Abuja, Rabiu Yadudu, who was represented by Muktar Muye, Director of Operations of the agency, revealed this to journalists at the 40th anniversary ceremony of the airport in Abuja.
He said the Abuja airport had continued to grow in leaps and bounds, liking it to the stages in the product life cycle (concept in marketing) which included introduction, growth, maturity and decline.
He also said the airport had been progressive in terms of capacity upgrade, noting that in 2017 the airport was closed for flight operation.
Yadudu noted that for easy movement of passengers, the Major General Muhammadu Buhari-led administration, completed and commissioned a world-class, brand-new international terminal, with a N15m per annum passenger processing capacity. The regime also commissioned the terminal D and linked the airport to the railway line in Abuja.
He further said that in 2018, the International Civil Aviation Organization audited the airport and certified it safe for flight operations with a 96 per cent score, noting that the recertification process was ongoing.
“The trajectory of progress has been upward ever since, as passengers and stakeholders have commended the level of facilities and service delivery at the airport. As a testament to this, the airport was adjudged the Best Airport in Safety for the year 2018 by Airport Council International, Africa Region. The airport also received ACI’s Airport Service Quality Award in the year 2020, amongst several others.
“Therefore, I am particularly elated that the Nnamdi Azikiwe International Airport, Abuja, is not only celebrating its 40th anniversary, but has continued to wax stronger and stronger.
Abuja airport hosted five million passengers in 2021 – FAAN
EU green travel plan could cost Spain millions of tourists as flights get more expensive - EURONEWS
European Union plans to cut greenhouse gas emissions by at least 55 per cent before 2030 could discourage tourists from visiting Spain, according to new estimates.
The report from consultancy firm Deloitte looked at the potential impact of the European Commission’s ‘Fit for 55’ plan on the tourism industry.
It predicts that environmental measures like ticket taxes and sustainable aviation fuel could mean the loss of 11 million international tourists to Spain. The country could also lose billions of euros in tourism revenue and 430,000 jobs that rely on the industry.
What green measures is the EU planning to introduce?
The EU is looking to cut its carbon emissions using a number of different measures - including many aimed at reducing the aviation industry’s impact on the environment.
The measures established by the European Commission under the Fit for 55 plan include a quota for the use of sustainable aviation fuels set at 5 per cent, tightening caps on carbon emissions, and higher taxes on aviation fuel and tickets.
Together, the report concludes, the introduction of these measures by 2030 would result in travel to Spain becoming more expensive. The higher costs could end up discouraging tourists from visiting the country.
How will the EU’s green measures impact Spain?
Overall, Deloitte predicts that 11 million international tourists could be put off by higher costs. Across accommodation, food, drink and other sectors that rely on tourism, this would account for around €12 billion of spending.
Looking at predictions for employment in 2030, the report also found that 430,000 jobs could be lost - mostly due to passengers lost from the tax on fuel and tickets.
Are the EU’s changes to the aviation industry worth it?
Though the EU measures may seem as if they come at a high price, they are necessary to achieve net zero - a goal many in the travel industry are dedicated to.
“In the aviation sector we are committed to achieving net zero emissions by 2050,” says the president of Spain’s Association of Airlines (ALA), Javier Gándara.
“We share the goal with the EU and with our Government, but we believe that there are other solutions on the way to achieve that goal that are more effective and favourable for the economy and employment.”
Gándara has asked the Spanish government to reconsider a tax on jet fuel, instead calling for other “more effective and favourable” measures like sustainable aviation fuels.
Air Canada adds U.S. direct flights from Halifax, Vancouver - FINANCIAL REVIEW
Air Canada will add new daily direct flights from both coasts to the United States in a push to meet travel demand and strengthen its trans-border partnership with United Airlines.
The airline announced Monday that year-round routes between Halifax and Newark, N.J., and Vancouver and Houston, will begin Dec. 16.
“These routes will give customers in Atlantic and Western Canada more convenient options for flying to the U.S.,” senior vice-president Mark Galardo said in a statement.
Galardo said the flights will provide Western Canada customers with more options for reaching destinations in Latin America and the Caribbean through United Airlines’ Houston hub, as well as reinforce links between Atlantic Canada and New York.
He said these will also facilitate many new one-stop connections from the U.S. to Air Canada’s domestic and global network.
The carrier said with the new routes, its U.S. network will expand to six per cent above its pre-pandemic capacity for summer 2023. It serves 51 U.S. airports.
Other major Canadian airlines have also recently announced added routes, as the travel industry recovers from a pandemic-induced slump.
Flair Airlines Ltd. said Wednesday it will expand its fleet to 27 aircraft in a bid to grow capacity by 50 per cent by next summer, with a focus on key domestic routes.
In June, the WestJet Group said it will add new routes and centre its existing wide-body 787 Dreamliner fleet around Western Canada.
London's Heathrow to lift daily passenger cap in late October -WSJ
(Reuters) -London's Heathrow airport has told airlines it will lift a cap on passenger numbers at its terminals later this month, the Wall Street Journal reported on Monday, citing people familiar with the decision.
The airport capped the number of passenger departures at 100,000 a day in July and in August extended the cap until Oct. 29 in a move to limit queues, baggage delays and flight cancellations after struggling to cope with a rebound in travel.
A Heathrow spokesperson did not directly respond to a Reuters request asking if the cap will be removed on Oct. 29.
The spokesperson, in an emailed statement, said, "The cap resulted in fewer last-minute cancellations, better punctuality and shorter waits for bags. Our focus has always been on removing the cap as quickly as possible – but we will only do so if we are confident that adding in more passengers will not erode the service levels that the cap has secured."
Airlines and airports across Europe struggled to cope with the rebound in post-lockdown travel, with many failing to recruit enough staff to handle check-ins and baggage.
(Reporting by Anirudh Saligrama and Kanjyik Ghosh in BengaluruEditing by Chris Reese and Leslie Adler)
FG warns against fake recruitment agencies for Nigeria Air - BUSINESSDAY
BY Ifeoma Okeke-Korieocha
The federal government has announced that the attention of the Management of Nigeria Air Limited has been drawn to some recruitment advertisements and announcements by certain unscrupulous elements claiming to be agents or staff of the upcoming airline.
James Odaudu, the Special Assistant, Public Affairs to the Minister of Aviation, in a statement, on Tuesday, said the so-called agents have created a host of fake websites and links supposedly for the submission of applications by unsuspecting members of the public.
“We wish to inform the general public, especially those who have applied for the earlier officially advertised positions that no recruitment interviews or tests have been scheduled. All such announcements or invitations for such should be disregarded as they are the handiwork of fraudsters and scammers.
“For the avoidance of doubt, the official website is www.nigeriaair.world, and only those pre-qualified as meeting the B737 requirements will be contacted by the management of Nigeria Air Limited individually, and certainly not by public announcements,” Odaudu stated.
He stated that all those concerned are therefore advised to ignore such announcements or invitations, as responding to or dealing with them in any way, will be at their own risk.
“Management appreciates the unprecedented level of interest shown by Nigerians in the airline which has resulted in the receipt of over 20,000 applications for positions in the organisation so far, and wish to state that the recruitment process for other positions will begin in due course,” he added.
Controversy trails Ethiopia’s visa on arrival ban - PUNCH.
Ethiopian Airlines has said it will no longer issue visas on arrival to Nigerian citizens and those of other African countries.
According to a document sent by the airlines and made available to The PUNCH, the aviation company stated as thus, “Please be informed that effective immediately, no more visa on arrival for Nigerian Citizens.”
The circular explained that “passengers are to obtain their visa at the Ethiopian embassy in Abuja before travelling.”
The PUNCH had earlier reported that the Minister of Aviation, Hadi Sirika, disclosed that Ethiopian Airlines emerged a core investor in the Nigerian National Carrier, Nigeria Air, following a bid. Sirika, who disclosed this at a press briefing in Abuja, said Ethiopian Airlines won the bid with a consortium and would have 95 controlling shares in the airline.
Speaking on the latest developments, an expert in the industry, Olumide Ohunayo, noted that Ethiopia’s decision was not in fair interest of its partnership process with Nigeria.
“I doubt if Ethiopia has given us some respect. Here is an airline that is trying to partner us as a national carrier, who already has about three points of entry into the country using the Togolese national carrier.”
MARKET NEWS
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