Why did the EU Transport Commissioner create a deadline for an open-sky agreement? Because he has the law on his side. At issue is an agreement between the EU and the US to allow airline access between any EU and US city.
On March 22, the EU must get a majority of votes from 27 member states to pass the open-sky agreement for flights across the Atlantic. Ultimately, airline traffic would increase and the creation of more jobs would follow. Currently, US relies on bilateral agreements with member states for flights. A failure to get a majority at the talks would subjugate the member states to the European Court of Justice for violating a law against such bilateral aviation pacts, according to Reuters.
Britain, however, has a potential veto and is likely to be the biggest deterrent. The problem is that it would result in greater access to London's Heathrow Airport. British Airways and Virgin Atlantic may lose competitiveness. The Transport Commissioner believes that a 2008 agreement would lead to access of the US domestic market, offsetting losses.
The US would face new restrictions in the investments of EU airlines. The US has no plans to alter the 49% maximum foreign-ownership policy and open investment opportunities.
Wednesday, March 14, 2007
Tuesday, March 6, 2007
Blowing Hot and Cold
Flight-planning software is the latest strategy for airlines in the evermore competitive airline industry. Increased fuel and operating costs have expanded the use of logic and logarithmic programs used onboard commercial airplanes and in dispatch centers. These traveling-salesmen-problem computations were not previously available, or at least not with the obvious savings, until recently. Now, airlines can benefit from real-time data of wind and weather information to consider the optimal route to save time, fuel, and overfly fees, the charges to fly over airspaces. As flight paths change daily, the Wall Street Journal reported today that airlines can make last-minute changes to reduce expenses.
British Airways, using Deutsche Luftansa's Lido system, reported a savings of $5,767 in overfly fees, one less ton of fuel usage, and 18 minutes for a one-way flight from SAO-Paulo to London. It is estimated that British Airways saves over $23 million each year from the use of alternate routes. Companies offering such software include Lockheed Martin, EDS, Sabre Holdings Corp, SITA, and Boeing's Jeppesen unit.
British Airways, using Deutsche Luftansa's Lido system, reported a savings of $5,767 in overfly fees, one less ton of fuel usage, and 18 minutes for a one-way flight from SAO-Paulo to London. It is estimated that British Airways saves over $23 million each year from the use of alternate routes. Companies offering such software include Lockheed Martin, EDS, Sabre Holdings Corp, SITA, and Boeing's Jeppesen unit.
Thursday, March 1, 2007
Ailing Airbus
The Wall Street Journal reported today that problems are developing concerning the restructuring plans of Airbus. Although, the CEO said these problems wouldn't affect deliveries, already Airbus employees in France in Germany are protesting in the streets.
The issue is the solicitation of foreign investors and the closing of three plants in the two countries. More than 10,000 jobs, nearly 20% of the workforce, are to be cut within the next four years and related costs in 2007 are expected to be nearly $1 billion. Employees are justifiably fearful of more closures in the future. Delays have already occurred in the production of the A380 and the development of the A350 twin-aisle jet has already exceeded expected costs.
These problems come amid a growing rivalry with U.S.'s Boeing. The A380 superjumbo jetliner proved to be effective in test flights and has nearly 200 orders. The quiet-running plane features wide seats and a bar. Production, however, is already two years behind, according to the Economist.
The issue is the solicitation of foreign investors and the closing of three plants in the two countries. More than 10,000 jobs, nearly 20% of the workforce, are to be cut within the next four years and related costs in 2007 are expected to be nearly $1 billion. Employees are justifiably fearful of more closures in the future. Delays have already occurred in the production of the A380 and the development of the A350 twin-aisle jet has already exceeded expected costs.
These problems come amid a growing rivalry with U.S.'s Boeing. The A380 superjumbo jetliner proved to be effective in test flights and has nearly 200 orders. The quiet-running plane features wide seats and a bar. Production, however, is already two years behind, according to the Economist.
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