Struggling Mexicana suspends ticket sales

Mexicana de Aviacion has indefinitely suspended ticket sales as it struggles to restructure its debts.

The airline – the largest in Mexico – confirmed it had begun bankruptcy proceedings in Mexico City and New York earlier this week, but insisted it would continue to operate as normal.

However, ticket sales were suspended at 18:00 local time (23:00 BST) last night.

The latest development does not affect the subsidiary Click and Link airlines, which fly routes inside Mexico.

Mexicana insisted it would continue to operate all flights for passengers who hold existing tickets.

“The decision affects only Companía Mexicana de Aviación ticket sales,” explained a statement.

“MexicanaClick and MexicanaLink are independent carriers and will therefore continue to sell and operate domestic flights as normal through all traditional channels.”

The airline also confirmed negations with employees and creditors were “ongoing” with hope of a “positive outcome”.

Mexico

Mexicana operates roughly 220 daily flights, almost all of them to foreign destinations. However, it remains unclear which will operate following a decision to cancel a number of departures – particularly those to the United States – over the weekend.

An average of 22,000 passengers fly with the airline each day.

Employees have continued to demonstrate proposed job cuts at the airline, with more than 200 pilots and 100 members of the Mexican Electrical Workers union gathering outside Mexicana’s headquarters yesterday.

Many regard the position of chairman, Gaston Azcarraga, as untenable, while there is also anger at proposed pay cuts.

Mexicana has suggested pay cuts of 41 per cent for pilots and 39 percent for flight attendants may be needed, along with a 40 percent reduction in employee numbers, in order keep the company afloat.

The 89-year-old airline has a debt of close to 10 billion pesos ($796 million), and has been hard hit Mexico’s deep recession and a flu outbreak last year.

New low-cost carrier for south-east Asia

Passengers in south-east Asia are set to see a new carrier take to the skies early next year following a deal between Thai Airways and Tiger Airways.

The airlines have agreed to form a new low-fare carrier – called Thai Tiger – targeting travellers in the region.

In a joint statement to Singapore Exchange, it was confirmed Thai Airways, majority owned by Thailand’s ministry of finance, will take a 51 per cent stake in the joint venture, while Tiger will own the rest.

Thai Airways will hold three seats and the chairmanship of the Thai Tiger board of directors, while Tiger will hold two seats.

As a major shareholder in Tiger, Singapore Airlines will also play a role.

The new airline will be positioned to fight the growing competition from Qantas owned Jetstar.

“We believe this move will provide revenue opportunities for Thai Airways and allow it to be more competitive in the region with the anticipated growth in the low-cost market as a result of continued Asean air liberalisation policies, which we expect will lead to growth in air travel in the Asian market,” explained Piyasvasti Amranand, president of Thai Airways.

Suvarnabhumi International

The new airline – to be based in Bangkok - is expected to start operations in the first quarter of 2011.

Thai Tiger will operate international and domestic flights, offering short-haul, point-to-point services within a five-hour flying radius of Suvarnabhumi International Airport in the Thai capital Bangkok.

The companies said low-cost carriers will likely benefit from air liberalisation policies in the Association of Southeast Asian Nations, expected by 2015.

Further information on the corporate structure of the airline is expected to be confirmed closer to launch.

Cheap Flights to Mumbai

BA sinks deeper into the red

After losing £1 billion over the past two years, British Airways has sunk further into the red with a £164 million loss for the last quarter. The flag carrier cited the cabin crew strikes and volcanic ash cloud for costing it an estimated £250 million.

However BA painted a more optimistic outlook, saying that “while some economic experts are flagging the risk of a ‘double-dip’ recession, the steady recovery continues.”

Chief executive Willie Walsh said the airline had seen an improved operating performance despite the disruptions and that BA expects to break even this year after two years of losses. Operating losses narrowed to £72m from £94m in 2009.

Walsh said he saw “positive underlying trends in both cargo and passenger traffic”.

Cabin crew have taken 22 days of industrial action since March and further walkouts could take place from September as the unrest lingers on.

With the threat of cabin crew strikes still lingering, Walsh signalled there will be no let up in his effort to change BA.

“Introducing permanent structural change across the airline remains our priority,” he told reporters.

The results came as it emerged that BA cabin crew was planning a 12 days of Christmas strike action.

Flights to India

Staff are said to want a repeat of the action threatened last year, which was only prevented when a High Court ruled against it.

Walsh said he believed the ‘final’ offer rejected by Unite members earlier this month still formed the basis of a resolution to the dispute. But he also added that he was confident of running 100 per cent of long-haul flights if there was more industrial action.

“We continue to train volunteer cabin crew and that programme is going very well. I am looking forward to hearing what the trade union has to say in light of the poor turnout in the last ballot.

“I want to reach a resolution but we are preparing for further industrial action. I am confident we will operate 100 per cent of our long- haul services and we are looking at the short-haul programme.”

Stelios escalates row with easyJet

Just hours after releasing financial results suggesting the airline had weathered the economic storm, easyJet has hit turbulence with founder Sir Stelios Haji-Ioannou.

The Luton-based airline confirmed yesterday revenue rose by more than five per cent in the three months to June, despite the volcanic ash cloud costing it £65 million.

Despite this performance, the airline has been plagued with punctuality issues during the summer season, resulting in a withering attack from the flamboyant owner.

In a letter addressed to easyJet chairman Sir Michael Rake, Stelios has threatened to withdraw the ‘easy’ brand from the airline as concerns over increases in cancellations and poor punctuality at Gatwick persist.

Branding the company an “operational mess”, the founder – still the largest single shareholder in the organisation – issued a cure notice, threatening to withdraw the brand in 90 days if services did not improve.

Stelios Letter

In his letter, Sir Stelios said: “The result of the operational mess that the company is in is that it has too few staff to meet the number of flights it has sold.

“This leads not just to delays but a serious increase in cancellations, seemingly many at the last minute.

“This is extremely detrimental to the goodwill and reputation of the airline and the brand in particular.

“Many years of carefully building goodwill is being eroded in a matter of months.

“As the owner of this brand I cannot stand by and let this happen.

“This is why I have served a cure notice demanding easyJet improve its punctuality and cancellation performance.”

Reaction

However, easyJet has reacted to the claims by stating Stelios does not have the right to renegotiate the brand licence agreement over punctuality.

“EasyJet is advised that the brand licence does not impose or create any contractual obligation regarding on time performance and consequently easyGroup has no right to terminate the brand licence,” the airline said in a statement.

However, the airline has admitted to staff shortages, with incoming chief executive Carolyn McCall, who has been in the job for three weeks, focusing her attention on alleviating the concerns.

A shortage of pilots has been cited as a key reason for delays, with easyJet laying off a number of pilots during the depths of the economic crisis and failing to react to the unexpectedly busy summer.

Easyjet said cabin crew headcount has increased to 3,580 for the week ending July 12th compared with 3,321 in the same week in 2009 after a recruitment drive over the spring, while pilot numbers have jumped to 1,793 compared to 1,677 a year earlier.

Cheap Flights

Soaring demand sends Singapore Airlines back to black

Singapore Airlines, the world’s second largest airline by market value, has posted stronger than expected quarterly profits on the back of resurgent passenger and freight demand.

SIA registered a first-quarter profit of SG$253m (US$184.7m) for the three months between April and June, comfortably ahead of analyst expectations and compared with a loss of SG$307m for the same period a year ago.

The recovery came despite the volcanic ash cloud that forced the widespread closure of European airspace in April. SIA put the losses due to the crisis at SG$50m.

Passenger numbers rose by 5.5 percent in the quarter, while the amount of cargo space filled rose from 60.6 percent a year ago to 65 percent. Revenue rose to SG$3.47 billion for the quarter from SG$2.87 billion a year earlier, whilst expenditure nudged up from SG$3.22 billion from SG$3.19 billion.

Singapore Airlines flew 4 million passengers last quarter, up from 3.8 million a year earlier.

SIA said the rebound would continue till at least the end of the year.

SIA said in a statement: “Advance bookings indicate that the year-on-year recovery in passenger carriage and yields evident in the quarter to June will hold up for the rest of 2010.”

Singapore Airlines was voted “World’s Leading Airline” at the 2008 World Travel Awards.

cheap flights to india

BAA staff threatens strike chaos

Millions of airline passengers could face severe disruption at the UK’s largest airports during the August bank holiday weekend after the Unite trade union announced a strike ballot at BAA.

More than 6,000 workers, including firemen, security guards and engineers, are to vote on whether to strike over a pay dispute. The ballot closes on 12 August, which could lead to a walk-out on the August Bank Holiday weekend, one of the busiest periods in the travel calendar.

Ticket to India From Heathrow

The owner of Heathrow, Stansted, Glasgow and Edinburgh airports is embroiled in a pay dispute with Britain’s largest trade union

cheap flights to india

Unite, which represents nearly two-thirds of BAA’s workforce, is confident of industrial action after a 1 percent pay increase was rejected in a consultative ballot by nine out of 10 members, paving the way for a formal ballot.

BAA is the UK’s largest airport owner and its terminals handle more than 300,000 passengers per day.

Tickets to India

It has admitted that it would be unable to operate if the staff do go on strike, and would be forced to shut Heathrow, Stansted, Southampton, Edinburgh, Aberdeen and Glasgow.

Flight to Delhi India

The row centres on what Unite, which is also the union behind the BA cabin crew strike, described as a paltry one per cent offer from BAA following a pay freeze last year.

Brian Boyd, Unite’s aviation officer, described BAA’s offer as “measly” and “nothing short of confrontational”.

A spokesman for BAA said its offer was “reasonable” at a time when aviation was seeing a decline in the number of passengers.

“Last year, staff accepted a pay freeze, their generosity helped the company, BAA has returned the favour with no bonus and a one per cent pay offer when inflation is currently five per cent. Over 6000 BAA staff will now begin receiving ballot papers asking them if they are prepared to take strike action.”

Discount Flights to India

The transport secretary, Philip Hammond, said: “We have recently seen the disruption industrial action can cause at our airports, and another strike now is the last thing passengers need. I strongly urge both sides to find a resolution to this dispute so that passengers can enjoy their summer holidays free from the stress and concern that a major strike would bring.”

Japan Airlines Shifts to New Terminal 3 at Indira Gandhi Airport in New Delhi

Japan Airlines (JAL) will relocate its flight operations from Terminal 2 of Indira Gandhi International Airport in New Delhi, to the airport’s newest Terminal 3.

In Terminal 3, JAL customers can check in for their flights at a dedicated JAL check-in island located conveniently near the security screeners and from mid-August*, eligible JAL passengers may also access the lounge of India’s leading domestic carrier - Kingfisher. Kingfisher is slated to join in 2011, the world’s leading quality airline alliance oneworld, of which JAL is also a member. The lounge, designed in hues of red, offers wireless LAN connections, shower facilities and a business center among other amenities. JAL’s top tier frequent flyers who are entitled to use the lounge, may also bring one accompanying passenger each.
*Information of an interim lounge that will be used before the completion of the relocation will be provided to passengers.

The construction of the ultra-modern Terminal 3, a befitting symbol of India’s swift and vast economic growth and expansion, was completed within 37 months and boasts the use of state-of-the-art technologies. An outstanding facility among airports in Asia, its function as a strategic hub in South Asia is highly anticipated. The 120-acre terminal, in which several Indian carriers are also scheduled to commence domestic operations from August 27*2, will enable passengers to smoothly transfer between international and domestic flights. In addition, it is an excellent gateway for passengers traveling from the east of Asia to the Middle East.

Japan Airlines operates 3 weekly flights direct from Tokyo, Narita to New Delhi using a Boeing 777-200 configured with the award-winning JAL Shell Flat Seat in Executive class and JAL Sky Shell Seat in Premium Economy.

Flights to New Delhi