BARBADOS (May 10, 2008) - High airfares are grounding the development of future air travelers, asserts a young travel expert.

Griffith, who works as a part-time server at the Fish Pot Restaurant in Barbados, said affordable travel options help to shape the youth’s world view and address their need to understand “the scope of tourism’s impacts, the level of job creation and the valuable foreign exchange to be earned from the sector.”

“Our young people need to understand the value of being employed in the sector - they should feel proud to know that they are making a contribution to the development of their country,” he said.

The upcoming CMEx meeting, produced by Counterpart International and hosted by the Puerto Rico Tourism Company, is supported by Almond Resorts, American Eagle/Executive Airlines, Association of Caribbean Media Workers, The Barbara Pyle Foundation, Bahamas Ministry of Tourism, Bay Gardens Resorts, Bermuda Department of Tourism, Black Entertainment Television (BET J), Caribbean Broadcasting Union, Caribbean Tourism Development Company (CTDC), Caribbean World News Network, Choice Hotels International, Coco Resorts, Counterpart Caribbean, Harry Edwards Jewellers, Jamaica Tourist Board, La Concha - A Renaissance Resort, Mayberry Investments Ltd., Ruder Finn, SpeakEasy M.E.D.I.A., Spirit Airlines, Tourism Development Company Limited of Trinidad and Tobago, and the St. Lucia Tourist Board.

For further information, visit www.caribbeanmediaexchange.com.

ENDS

The world’s airlines are struggling to meet the impending deadline for the global switch to “paperless” tickets, a leading travel agency group has warned.

With little more than three weeks remaining until the International Air Transport Association’s June 1 deadline for 100% e-ticketing, Flight Centre Limited has warned of a number of outstanding concerns.

The company said while 90% of its customers’ tickets would be unaffected, significant issues had not been resolved in relation to:

· Customers travelling with infants, as most carriers would not allow infants to travel on e-tickets

· Some codeshare and interline fares involving more than one carrier

· Some round-the-world fares

· Some international carriers not having e-ticket functionality by June 1

· Carriers being unable to provide e-tickets on some routes, including flights to parts of India, China, Vietnam, Africa and South America

· Airlines’ inability to offer ticketing services outside normal work hours

“While we support the move to e-ticketing, it is clear that airlines in general are not ready to make the switch to a 100% paperless environment by June 1,” Flight Centre Limited managing director Graham Turner said.

“Significant progress has been made but, at the same time, significant issues have not been resolved.

“For example, with the deadline rapidly approaching, it is still unclear exactly which international locations do not have the systems in place to accept e-tickets.

“It is also unclear how long customers will have to physically wait to receive their tickets in cases where travel agents cannot issue them after May 31. Generally, airlines are not equipped to effectively deal with this additional ticketing workload.

“Another concern is that travellers needing after hours tickets to some locations may find there are fewer options in emergency situations as most airlines do not provide ticketing services around the clock, particularly outside their home country.

“Already, we have seen some fares withdrawn because of their inability to be offered by e-ticket.”

Flight Centre Limited has voiced its concerns to the International Air Transport Association through industry body the Australian Federation of Travel Agents.

The company has also advised its global network of travel agents to fast-track ticketing processes relating to affected bookings to beat the deadline and to minimise disruption.

“In some cases, airlines are in the process of upgrading their systems to alleviate some concerns,” Mr Turner said.

“We urge these airlines to fast-track their efforts ahead of the June 1 deadline to minimise disruption and delays.

“We also believe IATA should reconsider its 100% target and perhaps aim for 90% compliance from airlines by June 1 and 100% compliance within 12 months.”

May 6, 2008

The US Federal Aviation Administration did not perform several recommended safety reviews at major carriers in recent years, the Wall Street Journal said on Tuesday, citing a recent evaluation by the agency.

The reviews, from those of flight crew training to aircraft de-icing, are meant to be completed at least once every five years, the report said.

Acting FAA Administrator Robert Sturgell, responding to a query, said in a letter that in addition to Southwest Airlines, the FAA hasn’t performed dozens of five-year reviews at seven other major airlines, including American Airlines.

The Journal said it reviewed a copy of the letter.

American Airlines cancelled more than 3,000 flights last month over wiring systems problems on its MD-80 planes, leaving over 300,000 passengers stranded.

(Reuters)

May 4, 2008

If United Airlines parent UAL and US Airways Group merged, the pairing could result in massive cost savings for the new carrier as well as higher fares for the troubled industry.

But, in order for a merged airline to win those benefits through consolidation, the two carriers — reported to be deep in merger talks — would have to take on the painful tasks of closing hubs, grounding planes and slashing jobs where United and US Airway overlap.

“There’s definitely the potential for it,” said Stuart Klaskin at KKC Aviation Consulting. “What I question is whether those two airlines will have the political will to actually do that.”

Industry experts say the prime benefits of consolidation come from reductions in capacity — the number of seats for sale. Less capacity lets carriers charge more for tickets.

In the last two years, major carriers have removed capacity from less profitable domestic routes and bolstered lucrative international routes. The strategy has led to higher ticket prices and stronger airlines.

Fare increases, however, have not kept pace with rising fuel costs, which are directly linked to the price of oil. As a result, airlines posted big losses in the first quarter, and pressure is mounting on carriers to merge.

“Absent the removal of meaningful capacity reductions from the domestic airline industry, you don’t get substantial consolidation benefits,” Klaskin said. “That’s the ugly, sad truth.”

Klaskin said a United/US Airways merger could lead to a 25 percent reduction in their combined capacity. But he predicted capacity cuts closer to 10 percent.

Sources said last week that United and US Airways could reach a merger deal soon. An agreement would come on the heels of one announced last month by Delta Air Lines and Northwest Airlines, which are planning to form the world’s largest airline, to be known by Delta’s name.

The Delta deal features cost savings and revenue improvements amounting to about USD$1 billion a year. But the proposal currently offers no capacity reductions as the two airlines’ operations have little overlap.

While Delta and Northwest may be depriving themselves of hefty cost savings, their pairing may have a relatively easy time winning approval from the US Justice Department, unions and travelers.

United and US Airways, on the other hand, could face higher antitrust hurdles resulting from the strong presence of both airlines on the East Coast, especially in Washington DC. They also would risk customer backlash if they cut service or raised fares in popular markets.

“The consumer won’t like it. But the fact of the matter is the consumer won’t like all these airlines going out of business either,” said airline consultant Robert Mann.

Since March, four small airlines — Aloha Airlines, Champion Air, ATA Airlines and Skybus Airlines — have shut down amid increasingly hostile industry conditions.

Low-cost carrier Frontier Airlines, meanwhile, filed for bankruptcy protection but said it would continue flying during its reorganization.

Experts say the industry desperately needs consolidation, but the jury is still out on what mergers make the most sense.

Although UAL Chief Executive Glenn Tilton and US Airways CEO Doug Parker have long advocated consolidation, their airlines may be particularly unenticing merger partners.

United, which completed a massive bankruptcy reorganization in 2006, suffered the largest first-quarter loss of the major airlines this year. The carrier still faces ill will from its labor groups, which made steep sacrifices to save the carrier.

US Airways, itself the product of a 2005 merger of America West Airlines and the former US Airways, still operates with two separate labor forces. The integration of a third labor force would present further complications, although experts generally believe labor issues would not torpedo a merger with United.

“It’s not the most attractive pairing, but any kind of consolidation is good for the industry,” said Jim Corridore, analyst at Standard & Poors.

(Reuters)

May 2, 2008

American Airlines is poised to say in a report to be delivered on Friday that it wouldn’t have had to cancel over 3,000 flights last month if a tentative agreement it had with local aviation officials hadn’t been overruled, according to a newspaper.

The Wall Street Journal report will say that the carrier thought it had a “hand-shake” pact with regional Federal Aviation Administration managers, through which it meant to repair wiring systems on its MD-80 planes on a schedule that would not have forced it to cancel flights, which left over 300,000 passengers stranded last month.

But FAA headquarters overruled those local officials and pressed forward with a tougher enforcement plan literally overnight, the report said, according to the Journal.

The report, to be delivered to the US Department of Transportation, is also expected to say that FAA officials did not check any of the affected planes or raise doubts about the initial wiring work until March 2008, the Journal reported.

The FAA and American Airlines were not immediately available for comment.

(Reuters)

April 28, 2008

The parent of United Airlines, which held unsuccessful merger talks with Continental Airlines, said it would pursue all options to ensure a sustainable future.

“Ensuring you have the right partner is everything,” UAL said in a statement. “We will pursue all options to ensure a strong, sustainable future for our airline and will not shy away from the tough choices necessary to create value for our shareholders.”

Earlier on Sunday, Continental said it had decided against merging with any other airline, but will explore alliances with other carriers.

Continental had called off talks with United due to the other carrier’s weak financial condition, and “the increasing cost of oil increases the risk of doing an airline merger,” a source briefed on the matter said.

(Reuters)

April 28, 2008

Continental Airlines has called off talks with United Airlines because of the other carrier’s weak financial condition, and “the increasing cost of oil increases the risk of doing an airline merger,” a source briefed on that matter said.

The source also said Continental Airlines is in “advanced talks” with British Airways and American Airlines about a potential alliance, with plans to seek antitrust immunity.

Separately, Continental said in a letter to its employees it has chosen not to merge with any other airline at this time but will continue to consider an alliance with other carriers.

“We have significant cultural, operational and financial strengths compared to the rest of the industry, and we want to protect and enhance those strengths — which we believe would be placed at risk in a merger with another carrier in today’s environment,” Continental Chief Executive Larry Kellner and Vice President Jeff Smisek said in the letter.

Several details had been agreed upon in the merger talks between Continental and United, including Kellner being chief executive of the combined company and Smisek being president, the source said. United CEO Glenn Tilton was to get a seat on the board of the combined company.

But talks broke off this weekend, with Continental now focusing on an alliance with British and American.

Such alliances allow partners to streamline their costs while sharing revenues. Without antitrust immunity, the data and revenue shared on the routes would normally be considered collusive.

Earlier this month, the US Department of Transportation granted tentative antitrust immunity to the SkyTeam alliance involving Delta Air Lines, Northwest Airlines, Air France-KLM, Alitalia and CSA Czech Airlines.

This approval came just before the announcement of a merger between Delta and Northwest that would create the world’s largest airline.

“Every US carrier, including Continental, is under enormous pressure from record high fuel prices, a slowing US economy and a weak dollar,” the two executives said in the letter.

Continental, which has a marketing alliance with SkyTeam but was not part of the group that received antitrust immunity, will review its participation in that alliance.

American Airlines is part of the 10 member oneworld alliance, which includes British Airways, Cathay Pacific, Finnair, Iberia and Japan Airlines. But Continental’s talks, for now, would focus on grouping with only British and American.

(Reuters)

April 26, 2008

Latin America’s major airlines are still going strong despite rising fuel prices, buoyed by growing passenger traffic as the region’s economies expand at a healthy rate.

From Chile to Mexico, air travel is surging as economic gains trickle down to the masses, allowing millions to fly for the first time. Thanks to the jump in demand, fierce cost-cutting and often steep fares, Latin America’s top carriers are either making money or moving closer to profitability while the rest of the industry is bleeding losses.

In Brazil, where two deadly plane crashes and an air traffic control crisis in the last year and a half have done little to cool the aviation market, foreign carriers and new players are lining up to get a piece of the pie.

In recent months, Germany’s Lufthansa, LAN Peru and TAP Portugal have all signed code-share agreements with TAM Linhas Aereas, Brazil’s leading airline. KLM Royal Dutch Airlines and Air France, teaming up with TAM’s rival, Gol Linhas Aereas.

And last month, JetBlue Airways founder David Neeleman unveiled plans to start a new low-cost, discount carrier in Brazil that will take to the skies in 2009.

“Brazil is Latin America’s most important aviation market, and if it did not have attractive long-term fundamentals, I don’t see why these international airlines would be hammering down the door to get in,” said Stephen Trent, an aerospace analyst at Citicorp in New York.

Still, Brazil is not immune to the woes plaguing the industry in the United States, where airlines are under pressure to merge as a way to cut costs and boost revenue.

Last November, local carrier BRA collapsed after it couldn’t come up with the revenue to cover rising costs. This month, OceanAir suspended flights to Mexico, and Virago — the debt-ridden carrier Gol bought last year — canceled all routes to Europe and Mexico. Both blamed soaring fuel costs.

TAM and Gol, which command more than 90 percent of Brazil’s aviation market, have also seen their earnings shrink in recent quarters. But both remain profitable despite the jump in fuel prices, with TAM earning USD$264.5 million in 2007 and Gol pocketing USD$52.6 million.

That contrasts sharply with the United States, where Delta Air Lines and Northwest Airlines just posted a combined USD$10.5 billion in losses for the first quarter because of record-high fuel costs.

Chile’s LAN Airlines and Panama’s Copa Airlines are also making money, and lots of it. LAN’s net profit surged 28 percent last year to USD$308.3 million while Copa Holdings, the parent company of Copa and Colombian carrier Aero Republica, made a record USD$160.4 million.

LAN, whose cargo business helps it offset downswings in passenger traffic, has stimulated demand by reducing short-haul fares and kept a lid on costs by adopting more fuel-efficient planes and cutting out frills such as free meals and newspapers.

It has also cushioned the impact of rising oil prices by passing on a fuel surcharge to cargo customers.

In Mexico, the aviation market is more crowded. About a dozen airlines operate, half of them low-cost carriers born in the last two years, and most would likely already be profitable if it were not for steep fuel costs and a saturated market.

Traditionally, Mexico’s skies were dominated by Aeromexico and Mexicana, formerly government-owned airlines that were privatized in recent years. They are still the top two airlines but others like Volaris and Alma are hot on their heels.

Like their Brazilian counterparts, Mexican carriers are benefiting from surging passenger traffic as more people fly instead of traveling by bus. Passenger traffic is growing in double digits, both at home and between Mexico and the United States, boosted by new travelers and a tourism boom.

“Mexico is a model country with the low-cost carriers and the two legacy carriers all expanding the market and growing their traffic with new travelers,” said Bob Booth, an aviation specialist and chairman of Miami-based AvGroup.

An indication of the growing market is the fast pace that Mexican airlines are adding routes.

Mexicana will add flights from Monterey to New York in May and from Mexico City to Edmonton, Canada, in June. Aeromexico is launching service to China next year and the low-cost carriers are adding domestic routes and flights to the United States.

But the crowded market also means that consolidation may be on the horizon.

“We will see some form of consolidation taking place, with mergers and or acquisitions,” said Booth.

(Reuters)

April 26, 2008

American Airlines has had early-stage merger talks with US Airways and is in advanced talks for an alliance with Continental Airlines, sources briefed on the situation said on Friday.

News of the talks comes after Delta Air Lines and Northwest Airlines announced nearly two weeks ago they planned to merge to become the world’s largest airline, seeking to counter rising fuel prices, a weak economy and a growing competitive threat from European carriers as trade barriers fall on trans-Atlantic travel.

American Airlines’ talks with Continental are focused on forming an alliance that could share passengers, much like the SkyTeam partnership that includes Air France-KLM, Alitalia, CSA Czech Airlines, Delta and Northwest Airlines, the people said.

Alliances have flourished in the industry because they generate profits through marketing programs and flight code-sharing without the headaches of combining operations.

But Continental is also in advanced talks with United Airlines for a full merger, the sources said. Continental will choose either the merger or the alliance, not both, sources said.

Meanwhile, United Airlines is also in serious merger talks with US Airways, and will choose to merge with either Continental or US Airways soon, the people said.

American’s talks with US Airways were not serious at this point, one person said.

Aviation consultant Bob Mann said a US Airways-American Airlines merger would not be a marquee matchup and would give American, currently the largest US carrier, little extra depth overseas.

“It doesn’t match Northwest-Delta and it would not match the global presence of a Continental-United, if that were going to happen,” Mann said. “But I think if Delta-Northwest does happen and Continental (and United) does happen, about the only thing left on the board is US Airways.”

All of the airlines declined to comment.

Continental, which has said it would prefer to remain independent unless the competitive landscape changes, had laid most of the groundwork for a merger with United even before Delta and Northwest announced their deal, the sources said.

Under the terms being negotiated, Continental Chief Executive Larry Kellner would be CEO of the combined airline and UAL CEO Glenn Tilton could be chairman, the people said. Other details are still being negotiated in what would be another all-stock deal.

Combining United with Continental would create a company with a combined USD$35 billion in revenue and nearly 100,000 employees, surpassing the Delta-Northwest combination.

But that merger may not happen. United Airlines, whose shares plunged 40 percent when it reported a quarterly loss earlier this week, is also talking to US Airways.

Analysts have said a merger of United and US Airways would be less complex than a United/Continental combination.

JP Morgan analyst Jamie Baker said earlier this week a deal between United and US Airways could be easier when it comes to aligning pilot pay, combining fleets and cutting flights and seats.

Baker also said the merger would be easier because United and US Airways already have code-share agreements and are part of the Star Alliance.

“United was interested in America West in 1998, US Air in 2000. Today, both are available under one roof,” Baker said. America West and US Airways merged in 2005.

After racking up USD$35 billion in losses and finally emerging from a five year slump in 2006, US airlines are hoping mergers could give them greater market power to reduce flights and raise fares.

The airlines also face a renewed sense of urgency to cut costs as jet fuel prices have more than doubled since the start of last year.

The carriers will be forced to make decisions in the coming weeks as they would like to have any mergers approved under the administration of President George W. Bush, which is considered more merger-friendly but ends in January.

All talks have been ongoing since January this year, after people heard that talks between Delta and Northwest had become serious. Delta and Northwest announced their merger April 14 in an all-stock deal then valued at just above USD$3 billion.

The Justice Department has said it would, if necessary, weigh multiple merger proposals in the airline industry and try to complete any reviews before the Bush administration leaves office.

While there is broad industry belief that the Northwest/Delta combination stands a good chance of being approved, some competition experts believe a follow-on deal could face a tougher challenge due to a further narrowing of competition that could lead to higher fares and fewer choices for travelers.

(Reuters)

The International Air Transport Association has signed a historic commitment to tackle climate change.

IATA Director General and CEO Giovanni Bisignani was joined by the industry’s other top leaders in a signing ceremony at the 3rd Aviation and Environment Summit in Geneva, Switzerland.

This declaration is a great step,” said Bisignani. “IATA’s four-pillar strategy on climate change is now an industry commitment. This commitment will drive us forward—first to our 25% fuel efficiency improvement target, and more importantly towards our vision of carbon neutral growth leading to a carbon emission free industry.

” “Environmental responsibility is a core promise of the aviation industry, alongside safety and security. We have taken this responsibility seriously long before Kyoto with impressive results - a 70% improvement in fuel efficiency over the last four decades. All the industry partners have a common goal - to keep aviation as a benchmark of environmental responsibility for others to follow,” said Bisignani. “Today’s commitment is unique. What other industry is so united in its approach to environment?”

“But governments must play their part if we are truly to succeed. They must invest more effectively in environmental technologies – from alternative fuels to radical dynamics. And they need to match our efforts at efficiency – such as implementing next generation traffic management systems globally. A Single European Sky could save 12 million tonnes of CO2 at a stroke,” said Bisignani.