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Page 1: 13 Mar 2015.pdf
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الجمعة2015مارس 13

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Pilots reject Lufthansa offer to keep Germanwings fleet

stable

FRANKFURT, March 11 (Reuters) - The German pilots' union

Vereinigung Cockpit (VC) rejected an offer by Lufthansa on

Wednesday to hold off from shrinking the fleet at budget carrier

Germanwings in exchange for concessions.

According to a letter seen by Reuters, Lufthansa told VC it

would stick with 59 aircraft at Germanwings until the end of

2020 if it could make costs at the carrier "competitive for the

long run".

"That offer has no substance," VC board member Joerg

Handwerg told Reuters. "It's not even really an offer because

Lufthansa says 'You can only keep flying for us if you're cheap

enough'," he added.

Lufthansa is under pressure to cut costs to compete with low-

cost rivals such as Ryanair and easyJet, and Middle East-

based carriers including Emirates.

Last month, it told staff it needed to save more at its main

airline business to prevent tough competition on fares and

rising external costs from driving it into "a dangerous red

zone".

Plans by Chief Executive Carsten Spohr to expand regional

airline Eurowings into a budget carrier has drawn criticism from

pilots, who went on strike 10 times in 2014 in a row over early

retirement benefits and do not want to see pay and conditions

being eroded.

VC's Handwerg told Reuters on Wednesday the union planned

more strikes this year.

(Reporting by Peter Maushagen; Writing by Maria Sheahan,

editing by David Evans)

http://af.reuters.com/article/energyOilNews/idAFL5N

0WD2JC20150311

Page 16: 13 Mar 2015.pdf

Bright spot for UAE holidaymakers as Emirates and other airlines in price war

A price war among airlines is set to send fares to Europe and the US tumbling.

Emirates Airline, Turkish Airlines and Lufthansa have announced a flurry of deals in the past week amid

fierce competition between regional carriers, and European and North American rivals.

The falling price of oil is also allowing airlines to trim costs.

That will be good news for holidaymakers booking flights out of the UAE, and expatriates planning

summer trips.

“I would expect price wars as lower fuel prices are passed on to consumers,” said Stephen Furlong, an

aviation analyst with the Davy Group in Dublin.

“There is also significant and continuing capacity coming to and from the Middle East and onwards,

which leads to very competitive fares.”

Turkish Airlines yesterday introduced Dh1,370 tickets to Istanbul from Dubai, while Emirates is offering

two for one deals out of the US.

Last week Lufthansa struck back at mounting competition from regional rivals with a $111 fare to Dubai.

The cuts come amid a fierce row between regional airlines and competitors in Europe over whether

Emirates and others benefit from state subsidies.

The Dubai carrier has vigorously denied the claims.

The row increased on Tuesday as a German official with a political delegation in Doha ruled out more

landing rights in Germany for regional carriers until the dispute is resolved.

“Until the problems linked to the subsidies matter are solved and a level playing field for competition

established there will be no additional landing rights,” the German government’s aviation coordinator,

Brigitte Zypries, told Bloomberg.

Sultan Al Mansouri, the Minister of Economy, said this week that accusations of regional governments

subsidising their airlines should be proven.

“The word ‘subsidies’ is really misused,” Mr Al Mansouri said.

Airlines including Emirates and Lufthansa deny their latest fare cuts were related to the dispute.

“Our tactical promotions are not linked in any way to the subsidies issue,” said an Emirates

spokeswoman. “Like all airlines, Emirates offers a variety of fares throughout the year depending on

market forces.”

Competition is particularly fierce on US routes. Emirates, Qatar Airways and Etihad Airways have

added thousands of seats on new routes into airports such as Dallas-Fort Worth, Los Angeles and

Boston.

Price-comparison website Kayak shows Emirates and Qatar vying for the lowest fares out of Dallas-

Fort Worth to Dubai for the next three months at below US$1,000 (Dh3,670) a ticket.

The nearest price from a US carrier for the same period is $1175, from United Airlines.

Pratyush Paul, an IT professional based in Dallas is a regular traveller through Dubai.

“When I travelled in 2012 from Dallas-Forth Worth to Dubai on to India on Emirates I paid $2,475,” Mr

Paul said. “This July when I travel to India on Emirates I will pay $1,600.”

http://www.thenational.ae/business/aviation/bright-spot-for-uae-

holidaymakers-as-emirates-and-other-airlines-in-price-war

Page 17: 13 Mar 2015.pdf

http://air.logistics-business-review.com/news/iata-signs-

deal-to-boost-e-freight-in-china-110315-4529020

IATA signs deal to boost e-Freight in Shanghai, China

The International Air Transport Association (IATA) has signed a Letter of Initiative (LOI)

with Shanghai Customs, Shanghai Entry-Exit Inspection and Quarantine Bureau,

Shanghai Airport Authority, China Eastern Airlines, and Shanghai E-port to boost e-

Freight in Shanghai, China.

The organisations have decided to co-operate to eliminate the use of paper air

waybills (AWB) and implement paperless custom clearance at Shanghai Pudong

Airport.

The parties aim to improve the efficiency of the existing processes by optimising and

streamlining data sharing between the parties. The initiative also intends to bring down

the costs by getting rid of the security check stamp on the paper AWBs.

IATA regional vice president for North Asia Zhang Baojian said: "China is the second

largest market for international freight by air. With much of the world's manufacturing

taking place in China, it is essential that processes are kept as efficient as possible.

This can be achieved through partnership and adoption of global standards.

"This agreement will bolster Shanghai's position as a leading air freight hub in China

and in the world."

China has already launched test initiatives for e-Freight at Shanghai Pudong Airport,

Guangzhou Baiyun Airport and Beijing Capital Airport.

In June 2014, China Cargo Airlines had started e-air waybill pilot at Shanghai Pudong

Airport, which ranks third in the world for the volume of cargo handled and is the

gateway for more than 60% of the country's cargo throughput.

The airport recorded an 8% increase in its cargo throughput in 2014, and is leading

among the Chinese airports, in terms of the number of processed e-AWBs.

The initiative to promote e-freight in order to eliminate the paper-intensive air-cargo

process is expected to enhance the efficiency of the transportation system. It will also

be able to reduce shipping times by 48 hours, IATA said.

Air cargo industry aims for 45% e-AWB penetration globally by the end of this year,

which is expected to go up to 80% by the end of 2016

Page 18: 13 Mar 2015.pdf

http://www.businesswire.com/news/home/20150312006572/en/Air

lines-America-Commends-Confirmation-Christopher-Hart-

NTSB#.VQK0lI4zCO5

Airlines for America Commends Confirmation of Christopher Hart as NTSB

Chairman

WASHINGTON--(BUSINESS WIRE)--Airlines for America (A4A), the industry trade

organization for the leading U.S. airlines, today commended the U.S. Senate’s

unanimous confirmation of Christopher Hart to serve as Chairman of the National

Transportation Safety Board (NTSB).

A4A congratulates Chairman Hart on his unanimous confirmation,” said A4A President

and CEO Nicholas E. Calio. “Chairman Hart is well regarded as a strong leader and

relentless advocate for achieving the highest levels of safety – the NTSB will continue to

benefit from his leadership. The U.S. airline industry is in the safest period in aviation

history due to the ongoing and strong collaboration among the airlines, labor,

manufacturers and government, and we remain committed to working with Chairman

Hart and his team to maintain our role as a worldwide leader in aviation safety and

security.”

ABOUT A4A

Annually, commercial aviation helps drive nearly $1.5 trillion in U.S. economic activity

and more than 11 million U.S. jobs. Airlines for America (A4A) vigorously advocates on

behalf of the American airline industry as a model of safety, customer service and

environmental responsibility and as the indispensable network that drives our nation’s

economy and global competitiveness. Our member carriers and their affiliates transport

more than 90 percent of all U.S. airline passenger and cargo traffic.

America needs a cohesive National Airline Policy that will support the integral role the

nation’s airlines play in connecting people and goods globally, spur the nation’s

economic growth and create more high-paying jobs. A4A works collaboratively with the

airlines, labor groups, Congress and the Administration to improve air travel for

everyone.

For more information about the airline industry, visit our website airlines.org and our

blog, A Better Flight Plan, at airlines.org/blog.

Follow us on Twitter: @airlinesdotorg.

Like us on Facebook: facebook.com/AirlinesforAmerica.

Join us on Instagram: instagram.com/AirlinesforAmerica.

To learn how you can support a National Airline Policy, a better flight plan for everyone,

visit www.nationalairlinepolicy.com.

Page 19: 13 Mar 2015.pdf

Contacts

Airlines for America

Vaughn Jennings

Managing Director, Government and Regulatory

Communications

202-626-4209

[email protected]

or

Melanie Hinton

Managing Director, Airline Industry Public Relations and

Communications

202-626-4034

[email protected]

or

Victoria Day

Managing Director, Corporate and Member Communications

202-626-4141

[email protected]

or

Jean Medina

Senior Vice President, Communications

[email protected]

Page 20: 13 Mar 2015.pdf

http://www.thenational.ae/business/economy/egypt-the-

future-man-from-the-international-given-the-red-carpet-

treatment-in-cairo

Egypt The Future: Man from The International given the red carpet

treatment in Cairo

It is not often that my arrival at an airport is filmed by a waiting TV crew. But

for a moment I feel like Rihanna.

Welcome to Egypt the Future. Or at least welcome to the welcome

committee at Cairo International Airport.

A bored TV crew, it transpires, has been waiting all morning for someone,

anyone, to arrive so they can get some footage.

Some of the biggest names in global finance are coming to Egypt this

weekend to attend the investment conference that everyone has been

talking about, but it’s clearly been a slow morning for arriving captains of

industry. So instead of capturing Christine Lagarde or Jeff Immelt striding

purposefully towards the future, they get me shuffling and dishevelled,

pulling a trolley suitcase that has lost its extendable handle in a Mr Bean-

like baggage carousel incident.

The ladies on the welcome desk give me the sort of slow up and down

appraisal I recognise from my wife’s extensive repertoire of similarly

withering looks.

It looks like the textbook “Are you really going out like that?” look. Or it

could be the “I mean really, how many check shirts is it possible to own in

one lifetime?” look.

They are all smiling, but with the sort of smile you use when talking to

someone who has just lost a long-term pet.

Still, I get the full red carpet treatment – literally.

Everybody seems to be set to hospitality whisk speed. One takes my

passport, another my bag and a third hurries away with my crumpled

itinerary.

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In the VIP arrivals, there is a large group of teenage pharaohs,

groups of bored-looking teenagers dressed as pharaohs, lounging

lazily on the sofas waiting for the proper VIPs to arrive.

I meet one official after another, all effusively friendly and urging

me to tuck into the waiting buffet laid out in a room furnished with

the kind of chairs that you only ever see ambassadors or heads of

state sitting on.

Some officials arrive, others leave.

“He is from The International,” says one to another solemnly.

“It’s actually The National,” I try to interject – but the conversation

has moved on and more officials come to inspect the guy from The

International.

The man from the local TV crew is still filming me sitting on a

swanky sofa in what could be the most boring B-roll ever recorded

in post-Arab Spring Egypt. Questions will surely be asked back at

the studio when they produce their morning’s work.

Then the whisking recommences and we quick-step to the

domestic terminal to fly to Sharm El Sheikh.

I’ve managed to bag what could be the last remaining seat on a

flight to the Red Sea resort for the weekend of the big conference,

and as we climb over the sprawling Cairo skyline, I start to relax.

Thirty minutes into the flight there’s still lots of Cairo skyline and

we don’t seem to be gaining altitude. Then comes the

announcement. The plane has technical problems and we need to

return to the airport.

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http://www.tradearabia.com/news/TTN_277461.html

Lufthansa set to continue cost cutting

Stiff competition from rivals in Europe and the Middle East and falling ticket prices mean

Lufthansa must keep cutting costs if it wants to remain a global airline, the German

carrier said.

Lufthansa is being squeezed by competition from budget carriers on routes within Europe

and rivals such as Emirates and Turkish airlines on long flights.

Profits fell almost 11 per cent last year to €252 million ($266 million) at its core German

airlines division, made up of the Lufthansa and Germanwings brands, it said on

Thursday.

Moves to change costly wage deals and expand budget flights have met with stiff

resistance from pilots who staged 10 strikes last year and have threatened more. The

strikes, and others by security staff, cost Lufthansa €232 million in 2014.

"We are not afraid of conflict because we know we're acting in the long-term interests of

our company," chief executive Carsten Spohr said.

IAG, the parent company of British Airways and Iberia, cut costs and developed low-cost

operations ahead of its continental rivals. It raised its 2015 profit forecast last month.

To lower costs, Lufthansa is expanding its Eurowings regional subsidiary, where crew are

not on the same collective labour agreements as those at Lufthansa and Germanwings.

Spohr repeated that Lufthansa's main brands will only grow if they get concessions from

staff.

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INVESTMENT PLANS

Shares in Lufthansa dropped nearly three percent after the results release,

reversing earlier gains.

Analysts highlighted the pressure on ticket prices and said the company was

not benefiting from lower oil prices as much as initially expected, due to a

strong dollar.

Lufthansa now forecasts a 2015 fuel bill of €6 billion, down from €6.8 billion in

2014 but higher than an estimate of €5.8 billion in January.

The airline said yields, a measure of pricing which fell 3.1 per cent last year,

would fall significantly in 2015.

Lufthansa forecast an increase in adjusted earnings before interest and tax

(EBIT) to more than €1.5 billion from €1.2 billion in 2014. That forecast does

not include the cost of any further strikes this year.

It said it would invest €2.9 billion in 2015, as it takes delivery of new planes.

Lufthansa will then limit annual spending to €2.5 billion in 2016 and 2017 to

ensure it can service its debt, which doubled to €3.4 billion in 2014.

The lower oil price means it can restrict investment in new planes and keep

older planes flying for longer, Spohr

Page 24: 13 Mar 2015.pdf

http://www.shanghaidaily.com/article/article_xinhua.asp

x?id=271996

Egyptair to resume Harare flights

HARARE, March 11 (Xinhua) -- Egyptian airline Egyptair is to resume flights

to Harare five months after suspending them citing viability challenges.

An official at the airline's office in Harare confirmed the development to

Xinhua Wednesday but could not give further details.

"As far as we know they are not yet resuming their flights," said the official.

Egyptair is one of the few airlines that had returned to Zimbabwe in recent

years after leaving the country during the decade of hyperinflation which

ended in 2008.

However, the airline's return was short lived, lasting from June 2013 to

September 2014 due to viability challenges.

Egyptian ambassador to Zimbabwe Bassem Khalil had indicated in October

last year that the flights could resume in December after officials resolve

issues affecting viability of the airline's Cairo - Dar es Salaam - Harare route.

The ambassador said the airline's profitability on the route had been affected

by a decision by the Tanzanian authorities to bar Egytair from picking up

passengers at Dar es Salaam International Airport on its way to and from

Harare.

"The Tanzanian authorities did not allow Egyptair to take passengers from

Dar es Salaam to Harare or vice versa from Harare to Dar es Salaam so the

revenues of the flight went down," he told Xinhua in October.

The pull out by Egyptair was followed by that of KLM Royal Dutch Airline of

Netherlands in October last year, with the airline also citing viability

challenges.

Currently, 17 foreign airlines are landing at the Harare International Airport,

down from a peak of 45 before 2000.

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الشركة القابضة -ادارة العالقات العامة

لمصر للطيران