Tag Archives: aviation

Branson pins profit hopes on Dreamliner

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Branson pins profit hopes on Dreamliner

By Robin Searle

Branson pins profit hopes on DreamlinerDelivery of Boeing’s troubled 787 aircraft will be crucial to Virgin Atlantic’s aim of returning to profitability by 2015, according to the airline’s president Sir Richard Branson.

Speaking to Travel Weekly during the inaugural celebrations for Virgin’s domestic offshoot Little Red in Edinburgh, Branson said he felt the target was viable and dependent on the integration of more cost-effective aircraft.

“As long as the 787s don’t get delayed again, there is every chance that it can be possible,” he said.

Virgin is due to take delivery of Boeing’s 787 Dreamliner in late summer 2014 as part of a wider fleet overhaul. It also hopes to boost revenue with the launch of Little Red services from Heathrow to Edinburgh, Aberdeen and Manchester and through an expected tie-up with Delta Air Lines in the US.

Virgin’s new chief executive Craig Kreeger believes the airline can transform a loss, expected to be about £130 million for the financial year to February 2013, into a profit within two years.

“(To return to profit) our strategy includes trying to find new sources of revenue, and that includes creating connectivity through Little Red and through the relationship with Delta,” said Kreeger.

“We have made some tough decisions, including a pay freeze for staff, but we have to ensure that no decisions are made at the expense of the customer or our people.”

The two airlines filed an application with the US Department of Transportation seeking antitrust immunity for their joint venture this week.

Speaking about the appointment of former American Airlines executive Kreeger, Branson said: “Craig has a lot of experience in the States, and through the Delta deal the States is going to play a bigger and bigger role in Virgin Atlantic’s future.”

Take-off for Google Flight Search in UK

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Take-off for Google Flight Search in UK

by Lee Hayhurst
by Lee Hayhurst

 

Google has rolled out Flight Search in the UK as part of a first move into international markets.

The product, which is the result of Google’s controversial buyout of software firm ITA, has been live in the US since September 2011.

Its speed and ability to search for flights according to a diverse range of criteria has made it the source of much speculation, although Google has not rolled it out as quickly as expected.

However, today’s launch in the UK, France, Italy, Spain and the Netherlands with local pricing and in eight languages ends speculation that Google has reined in its ambitions for Flight Search.

The main difference between the US and UK product is the absence of a commercial unit that sits at the top of natural search results.

Google said it was assessing this before deciding whether or not to include this in its international version.

Other than that the non-US version is an exact copy, the Google spokesman saying it was aimed at people in the early stages of research when they do not know where they want to go.

Using a map-based interface, Flight Search allows users to filter their results based on how much they want to spend and flight time.

The biggest omission for the European market is the absence of Ryanair and easyJet, although Google said negotiations were ongoing.

In terms of fulfilment partners, Google has struck deals with a number of European intermediaries including Bravo Fly, Budget Air and fly.co.uk.

The Google spokesman said: “These are big markets. The plan with all our products is to go global as quickly as we can.

“With something as complex as flights there are a lot more partners to negotiate with. This is the first market beyond the US, but logic would suggest there are more to come.”

Chancellor: no change on APD

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Chancellor: no change on APD

Chancellor George Osborne signalled no change in government policy on Air Passenger Duty today in a Budget speech which made no mention of the tax.

Osborne announced a freeze in petrol duty and a cut in the duty on beer, but made no reference to APD.

However, documents released by the Treasury alongside the Budget measures showed projected revenue from APD rising year by year to 2017-18.

The Treasury has previously said APD would rise annually by the rate of inflation.

Government revenue from APD is forecast to rise 3.6% year on year to £2.9 billion in 2013-14 and to £3.8 billion in another four years.

Osborne did look to address business concerns by cutting the rate of corporation tax on profits to 20% from April 2015, hailing it as “the lowest business tax of any major economy in the world”.

He also announced help for home buyers. But otherwise the Chancellor said there would be no change in policy on deficit reduction and spending, insisting: “Cyprus is a sign the crisis is not over.”