After several months of sometimes tense negotiations - the USA and the European Community have reached agreement on the framework of OpenSkies 2 according to Reuters.
This is healthy for everyone.
The basics include expanded ownership on both sides. Open Market access has been expanded, however the thorny issue of cabotage has not been resolved and will have to wait for another round.
Cheers
Showing posts with label Open Skies. Show all posts
Showing posts with label Open Skies. Show all posts
25 March 2010
24 November 2009
JAL Gets Lifeline - Short Term - And What of the Future?
JAL - still reeling from the huge losses - has secured a brief lifeline from its troubles. In Japan the line between government and industry is not as clearly defined as in other economies. This is not a criticism - just a statement of observation. The loan was secured from a company (Development Bank of Japan Inc) 100% owned by the Japanese Government's Ministry of Finance.
According to media reports in Japan the size of the loan is over 100 billion Yen (approx $1.1 Billion) roughly equivelent to the past 6 months worth of losses.
Effectively JAL its management and the Government entity charged with fixing broken companies in Japan - Enterprise Turnaround Initiative Corp. of Japan - has 6 months to right the ship. This is hardly enough time for them at the moment to do that. So the clock is ticking.
It seems that a Billion here a Billion there is the game for JAL. The ETI Corp and JAL have three basic tasks in front of them. In a normal economy and in a normal world any of the three would be regarded as a significant challenge. These are not normal times.
The Three Challenges are:
1. Restructure the corporate financial structure of JAL all without appearing to file the equivalent of Chapter 11.
2. Restructure the company work practices and functions to streamline the company and make it effective as an entity against the competition of ANA and in a new more competitive local market.
3. Secure an international partner who will help power the business to a sustainable position outside of the domestic market.
I have commented before that the size and scale of JAL's issues are greater than most people had imagined. The amount of unhappy people will be legion. These range from workers who will lose their jobs, to investors who will lose their stock value to bankers who will also be out their cash. At this point I find it hard from the international perspective to see how American/OneWorld can benefit JAL more than Delta and Skyteam.
Against this backdrop are some interesting negotiations on OpenSkies between Japan and the USA. The new Japanese Administration are getting a baptism by fire. I can only wish for the best for everyone concerned. But as in many cases the answers do not lie in the old ways. The Government of Japan has an opportunity to foster the development of a new order in Air Transport in Japan. Opening the market to Low Cost Air services would be a way to expand the market and ultimately to turn one of the most closed markets into a true example of open competition where land (high speed rail) and air can compete fairly. Lowering the cost of flights to Japan could open up a huge tourist market. Perhaps the Japan of 2010 is ready for this.
Now that's a thought
Cheers
According to media reports in Japan the size of the loan is over 100 billion Yen (approx $1.1 Billion) roughly equivelent to the past 6 months worth of losses.
Effectively JAL its management and the Government entity charged with fixing broken companies in Japan - Enterprise Turnaround Initiative Corp. of Japan - has 6 months to right the ship. This is hardly enough time for them at the moment to do that. So the clock is ticking.
It seems that a Billion here a Billion there is the game for JAL. The ETI Corp and JAL have three basic tasks in front of them. In a normal economy and in a normal world any of the three would be regarded as a significant challenge. These are not normal times.
The Three Challenges are:
1. Restructure the corporate financial structure of JAL all without appearing to file the equivalent of Chapter 11.
2. Restructure the company work practices and functions to streamline the company and make it effective as an entity against the competition of ANA and in a new more competitive local market.
3. Secure an international partner who will help power the business to a sustainable position outside of the domestic market.
I have commented before that the size and scale of JAL's issues are greater than most people had imagined. The amount of unhappy people will be legion. These range from workers who will lose their jobs, to investors who will lose their stock value to bankers who will also be out their cash. At this point I find it hard from the international perspective to see how American/OneWorld can benefit JAL more than Delta and Skyteam.
Against this backdrop are some interesting negotiations on OpenSkies between Japan and the USA. The new Japanese Administration are getting a baptism by fire. I can only wish for the best for everyone concerned. But as in many cases the answers do not lie in the old ways. The Government of Japan has an opportunity to foster the development of a new order in Air Transport in Japan. Opening the market to Low Cost Air services would be a way to expand the market and ultimately to turn one of the most closed markets into a true example of open competition where land (high speed rail) and air can compete fairly. Lowering the cost of flights to Japan could open up a huge tourist market. Perhaps the Japan of 2010 is ready for this.
Now that's a thought
Cheers
01 April 2009
Did Open Skies Lower Air Fares?
Some regulators seem to be congratulating themselves for the reduction in Air Fares across the Atlantic after the implementation of Open Skies last year.
http://www.ajc.com/business/content/business/delta/stories/2009/03/29/open_skies_delta.html
However I would caution anyone who thinks that the benefits were immediate.
Yes air fares have been reduced across the Atlantic. But so has capacity - that normally should not happen. Capacity was supposed to increase so was choice.
In fact the reverse happened. Delta has reduced traffic and competition on at least 2 key routes - LAX-LHR (AF-DL) and SEA-LHR (NW) came and went bye-bye pretty quickly.
What we have seen is a significant reduction of Transatlantic service from London Gatwick. AA has pulled all of its services from LGW with significant reductions from DL, NW, and CO to mention just a few. Capacity across the Atlantic has been reduced by most airlines and BA is in a world of hurt with its traffic falling quite precipitously in the key premium markets.
Long term - I remain optimistic - but as negotiations for the next round of Open Skies between the EU open up - don't expect big expansive true Open Skies agreements to occur any time soon. And Air fares - well they are down all round. That means there are some significant bargains around. Too bad about the taxes though!
Cheers
http://www.ajc.com/business/content/business/delta/stories/2009/03/29/open_skies_delta.html
However I would caution anyone who thinks that the benefits were immediate.
Yes air fares have been reduced across the Atlantic. But so has capacity - that normally should not happen. Capacity was supposed to increase so was choice.
In fact the reverse happened. Delta has reduced traffic and competition on at least 2 key routes - LAX-LHR (AF-DL) and SEA-LHR (NW) came and went bye-bye pretty quickly.
What we have seen is a significant reduction of Transatlantic service from London Gatwick. AA has pulled all of its services from LGW with significant reductions from DL, NW, and CO to mention just a few. Capacity across the Atlantic has been reduced by most airlines and BA is in a world of hurt with its traffic falling quite precipitously in the key premium markets.
Long term - I remain optimistic - but as negotiations for the next round of Open Skies between the EU open up - don't expect big expansive true Open Skies agreements to occur any time soon. And Air fares - well they are down all round. That means there are some significant bargains around. Too bad about the taxes though!
Cheers
13 January 2009
Varig PNRs to migrate to OpenSkies
Here is a note from World Aviation on behalf of VRG (aka New Varig). So if you have any RG bookings in any GDS - please note the change. contact numbers are at the bottom
Cheers
Timothy
VRG are migrating all PNR from RG reservations host (Amadeus) to the G3 reservations host (New Skies.)
This process will involve all PNRs with RG flights between 17JAN09 and 02MAR09, except the reservations from/to CCS and BOG. The flights for these cities will temporarily continue with RG designator, due for migration late January 2009.
Please Note:
The reservations will receive an advice code of cancellation (HX) on all RG segments and a SSR with the new G3 flight, date, segment and the New Skies record locator.
Therefore, the GDS’s PNRs will not have an active RG flight anymore and the new flight will appear only at the SSR item as an information.
As the link of communication between the migrated PNRs to New Skies and the GDSs will break, if any modification on these PNRs are required, they must be requested to the Call Center Gol/Varig *.
The travel agencies that use Gol web services or site will be able to access the new PNR on these environments, if they request the Call Center to add their IATA number or Gol travel agency code, in the new PNR.
Tickets associated to the migrated reservations will be used as a form of payment in New Skies and the travel agent will not be able to access them anymore.
Refunds of these migrated PNRs can be requested through the Call Center or chat. Open 042 tickets can also be reimbursed or changed in to a Gol credit, if previously requested to the Call Center or via chat.
After migration, flights with RG designator will not show any seats available on the GDS availabilities and later on they will be canceled.
We do emphasize that all ticketed reservations will be migrated to New Skies system and it is not necessary to create a new PNR. Reservations with no tickets – i.e. live sectors not ticketed - will not be migrated.
VRG Linhas Aéreas S.A. – GOL Group
Chat Argentina, Bolívia, Brasil, Chile, Paraguai, Peru e Uruguai: www.voegol.com
Chat Other countries: http://gol.directtalk.com.br/clientes/custom/voegol/init_help_online.htm
* Call Centers:
ARGENTINA: 0810 266 3232; BOLÍVIA: 800 10 21 31; BRAZIL: 0300 115 21 21; CHILE: 1 888 0042 0091 (Telefonica), 1230 020 9105 (Entel) ; PARAGUAY: 009 800 55 1 0008; PERU: 0800 52 917; URUGUAY: 0004 055 126 ; OTHER COUNTRIES: 55 11 5504 4410
Cheers
Timothy
VRG are migrating all PNR from RG reservations host (Amadeus) to the G3 reservations host (New Skies.)
This process will involve all PNRs with RG flights between 17JAN09 and 02MAR09, except the reservations from/to CCS and BOG. The flights for these cities will temporarily continue with RG designator, due for migration late January 2009.
Please Note:
The reservations will receive an advice code of cancellation (HX) on all RG segments and a SSR with the new G3 flight, date, segment and the New Skies record locator.
Therefore, the GDS’s PNRs will not have an active RG flight anymore and the new flight will appear only at the SSR item as an information.
As the link of communication between the migrated PNRs to New Skies and the GDSs will break, if any modification on these PNRs are required, they must be requested to the Call Center Gol/Varig *.
The travel agencies that use Gol web services or site will be able to access the new PNR on these environments, if they request the Call Center to add their IATA number or Gol travel agency code, in the new PNR.
Tickets associated to the migrated reservations will be used as a form of payment in New Skies and the travel agent will not be able to access them anymore.
Refunds of these migrated PNRs can be requested through the Call Center or chat. Open 042 tickets can also be reimbursed or changed in to a Gol credit, if previously requested to the Call Center or via chat.
After migration, flights with RG designator will not show any seats available on the GDS availabilities and later on they will be canceled.
We do emphasize that all ticketed reservations will be migrated to New Skies system and it is not necessary to create a new PNR. Reservations with no tickets – i.e. live sectors not ticketed - will not be migrated.
VRG Linhas Aéreas S.A. – GOL Group
Chat Argentina, Bolívia, Brasil, Chile, Paraguai, Peru e Uruguai: www.voegol.com
Chat Other countries: http://gol.directtalk.com.br/clientes/custom/voegol/init_help_online.htm
* Call Centers:
ARGENTINA: 0810 266 3232; BOLÍVIA: 800 10 21 31; BRAZIL: 0300 115 21 21; CHILE: 1 888 0042 0091 (Telefonica), 1230 020 9105 (Entel) ; PARAGUAY: 009 800 55 1 0008; PERU: 0800 52 917; URUGUAY: 0004 055 126 ; OTHER COUNTRIES: 55 11 5504 4410
08 October 2008
Realignment is a Euphemism for ??? AF Yanks LHR-LAX
Ah those heady days in March when oil was leaping and bounding and Heathrow was opening up.
Fast forward... global slump, oil in free fall and AF is yanking the much ballyhooed LHR-LAX flight.
"We need the plane elsewhere".
Well the truth is it didn't work. Loads and yields were not up to snuff.
So plan B...
The 777 will be deployed to LHR-JFK giving the DL-AF-KL-NW alliance 3 Nonstops between NYC and LHR.
If this is the decision for the big twin - can the SEA-LHR route be far behind?
What is clear that there is now excess capacity on the Transatlantic routes. Even the cutting back at LGW is not taking up the necessary slack. There will need to be more reductions.
Hmmm so much for Open Skies?
Will this bolster the case for BAAABI?
Time will tell
Cheers
Fast forward... global slump, oil in free fall and AF is yanking the much ballyhooed LHR-LAX flight.
"We need the plane elsewhere".
Well the truth is it didn't work. Loads and yields were not up to snuff.
So plan B...
The 777 will be deployed to LHR-JFK giving the DL-AF-KL-NW alliance 3 Nonstops between NYC and LHR.
If this is the decision for the big twin - can the SEA-LHR route be far behind?
What is clear that there is now excess capacity on the Transatlantic routes. Even the cutting back at LGW is not taking up the necessary slack. There will need to be more reductions.
Hmmm so much for Open Skies?
Will this bolster the case for BAAABI?
Time will tell
Cheers
09 March 2008
Is Singapore picking off Europeans one country at a time?
Portugal last week joined the UK in a simple Open Skies bilateral treat treaty with the Republic of Singapore.
What is interesting about this is not that it happened but the fact that the EU has been trumpeting its common aviation policy stance particularly with the USA, yet individual countries still make deals like this.
The EU should be much more consistent on these matters.
What is interesting about this is not that it happened but the fact that the EU has been trumpeting its common aviation policy stance particularly with the USA, yet individual countries still make deals like this.
The EU should be much more consistent on these matters.
17 October 2007
Detla and Air France announce new Atantic JV
Delta Airline and Air France have just announced the first major foray into the transatlantic Open Skies venture. By making it a JV they resolve any issues about how it will be operated.
Initially covering JFK-ORY, JFK-LYS, and of course JFK-LHR and ATL-LHR. 3 new slots at LHR will be accomodated by Air France surrendering some of its slots to Delta who will operate the service.
Reported by both CNN.com and USA Today - the deal has been in the works for some time and will start in March 2008 and run for 8 years. It will eventually the joint venture is expected to increase revenues, competition and customer travel choices on key routes across the Atlantic.
The first phase will begin April 2008 and will include all non-stop flights operated by Air France and Delta between Air France's Paris-CDG, Orly, and Lyon hubs, and Delta's Atlanta, New York - JFK, Cincinnati and Salt Lake City hubs. It will also include flights operated by both carriers between London-Heathrow and the U.S.A combined 19 daily flights and more than 4,500 seats per day -- a 45% increase -- are expected to be part of the first phase of implementation.
Specifics about the SLC-LON service has not yet been clarified.
Initially covering JFK-ORY, JFK-LYS, and of course JFK-LHR and ATL-LHR. 3 new slots at LHR will be accomodated by Air France surrendering some of its slots to Delta who will operate the service.
Reported by both CNN.com and USA Today - the deal has been in the works for some time and will start in March 2008 and run for 8 years. It will eventually the joint venture is expected to increase revenues, competition and customer travel choices on key routes across the Atlantic.
The first phase will begin April 2008 and will include all non-stop flights operated by Air France and Delta between Air France's Paris-CDG, Orly, and Lyon hubs, and Delta's Atlanta, New York - JFK, Cincinnati and Salt Lake City hubs. It will also include flights operated by both carriers between London-Heathrow and the U.S.A combined 19 daily flights and more than 4,500 seats per day -- a 45% increase -- are expected to be part of the first phase of implementation.
Specifics about the SLC-LON service has not yet been clarified.
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