Lufthansa – not again, surely?

After the debacle of having to sell British Midland at a huge loss, you might have thought Lufthansa would have learned their lesson, but apparently not. According to the Financial Times, they are seriously interested in bidding for another airline basket-case, TAP.

Lufthansa have had a mixed – to be very polite – record in their recent investments. Aside from British Midland, they have had serious trouble with Austrian Airlines, Lufthansa Italia had to be closed almost as soon as it had started and Brussels Airlines is also looking dicey. Only Swiss has been a success.

Lufthansa is now very much under new management and the new bosses have been openly critical of their predecessor’s strategy. So why do they seem to be falling for the same trap?

Maybe they have learned one lesson from past errors. There is some point in going after a country’s flag carrier but no sense at all in trying to establish a second-string airline. Most European countries struggle to support one full-service airline and none have successfully managed to have two which compete head-to-head across the network. Of course, Portugal is in a very weak state financially, and has been since long before the current round of crises. The real attraction for Lufthansa lies in its routes to Brazil and its strong connections to South America. Oh, and the other big plus is that IAG are also interested in buying TAP and Lufthansa do not want to let them get a monopoly.

They are getting their towels out ready to reserve their space across the South Atlantic. You have a feeling that yet more hard-earned German cash is about to be blown in their determination to be a European leader.

Berlin’s new airport delayed

Lordy – Berlin’s new Brandenburg airport is NOT going to open on 3rd June after all. With less than four weeks to go it seems that fire protection services are not going to be in place in time. A new opening date has yet to be set.

On the one hand one of course sympathises, but on the other it’s got to be a world-class omnishambles for the planners to get so close to the opening ceremony to discover such a cock-up. Let’s hope no such googlies arrive on London 2012′s door at this late stage – it would really really spoil some world-class schadenfreude!

What now for Air France?

Imagine you are a large French company in which the government still has a significant shareholding. You are losing money badly and have started a plan to bring employee contracts into line with your European competitors. Whilst you anticipated serious problems, you were fairly sure of government support and hoped that the public would see the move as part of a national process to achieve financial stability. Now, you are suddenly faced with a socialist government which has promised to do away with austerity. 

That is the position of Air France is in today.

The company has said they need to cut costs on their short and medium haul routes by 20% (probably an underestimate). The Air France/KLM group is losing money and the culprit is Air France. Quite simply, it cannot go one as it is. 

Air France has presented plans to cut staff costs by increasing hours worked and cutting some benefits. The unions were always going to fight hard against the measures but now the government and – far more important – the mood of the country, is different.

Iberia is the last of the big European airlines to try to force its staff into 21st century methods of working. They are close to winning the fight and have the government and country on their side. Air France are now in a very difficult position.

Taming the unions is not just a question of cutting costs but of safety as well. After the Rio crash, the unions tried to blame the airline for not having correct operating procedures. The airline tartly replied that since pilots did not always follow the existing rules, it was foolish to ask for more rules! 

One of the reasons for Air France’s bad safety record has been the fact that it is so hard to get rid of staff who do not follow the rules. Why not cut a few corners if you feel like it because the company can’t do anything about it?

It is quite possible that the actual economic policies of M. Hollande will not be so different from those of his predecessor but his election has made life very difficult for Air France. It is already in trouble and unless it is transformed very quickly from being a state-aided playground into a  lean and mean competitive company, the future is grim.

BA move fast

British Airways is keeping British Midland’s summer timetable in operation but they are moving fairly quickly to make sense of their purchase.

The first of British Midland’s Airbuses is now being repainted in BA colours in Shannon with several others to follow this month. If they are going to use these on European routes in the BA name in future they will have to alter the seating configuration so that the rows at the front of the aircraft, used for Club, have 34 inches legroom as opposed to the 31 inches that is standard on the British Midland fleet.

They have also just announced the first new route resulting from the extra Heathrow slots. From this winter, they will be flying six times a week to Seoul. We would not expect a huge rush of new longhaul routes. It would be foolish to launch too many so quickly and, anyway, they do not have sufficient aircraft, but there no doubt other new destinations in the pipeline.

Meanwhile, the situation for the other two British Midland group companies looks pretty grim. It is hard to see anyone buying BMIBaby by the end of October when BA has said it will close the airline. Already, easyJet and Flybe are moving in on their routes. If someone does not make a move soon, there will be little left to buy. Nor can we see much of a future for British Midland Regional. If the rumoured deal does go ahead, then the buyers would surely have to slim the airline down substantially and, even then, it would face a very challenging future.

Route News Stop Press

This month’s route news from Inside Traveller is available here. 

Here are some items that missed our editorial deadline:

Anadolujet has cancelled its Ankara–Stansted service – it had returned to the route with a twice weekly service starting at the beginning of April.

British Airways launches a thrice-weekday London City–Aberdeen service on 24th September.

Etihad is introducing 3-class Boeing 777 aircraft this summer to serve on its Abu Dhabi–Heathrow route. 

LACSA  launches a four-times weekly service to Brasilia on 1st June, as an extension of its San Jose–Bogota route.

OLT Express Poland will introduce daily services to Gatwick from Warsaw and Gdansk this autumn. A weekly Lodz–Edinburgh service is also planned.

Precision Air  launches a thrice-weekly triangle service from Dar es Salaam to Lubumbashi and Lusaka in mid May, and a similar frequency to Lilongwe and Harare in July.

TAP Portugal is cancelling Lisbon–Sao Paulo Viracopos at the end of October. The thrice-weekly service was launched in July 2010.

 
 

Death in the sun – the murky world of Dubai

In April 2011, Lee Brown, an unemployed young handyman from Essex, travelled First Class on Emirates to Dubai and checked in at one of the world’s most expensive hotels, the Burj Al Arab. Allegedly, he threatened a hotel maid while drunk, was arrested and died in prison six days later.

A year later, the case is still “under investigation” and the Foreign Office do not seem to be putting the Dubai authorities under very much pressure to find out exactly what happened to Mr Brown.

The lack of action by the FCO is probably not so surprising. They appear to live in terror of upsetting any important trading partner. However, it is very strange that the story has not been taken up by the tabloids because it seems tailor-made for them. A press that is shell-shocked by the Leveson Inquiry surely have little to fear from doing an in-depth report on this – and it would no doubt be welcomed by Mr Brown’s parents, even if some of the detail did prove a little embarassing.

It seems that Lee Brown’s trip to Dubai was paid for by a local lady he had met on the internet. Now, it is possible to add two and two together and jump to the conclusion that someone in Dubai might not have been very happy about Mr Brown’s arrival. Even if he had been drunk and abusive when he was arrested at the hotel, he did not die of alcohol poisoning because he was in prison for six days before he died. There is credible evidence that he was badly beaten by prison guards and the beatings were the cause of death. Could it be that a local Mr Big (of whom there are many in Dubai) objected to Lee Brown’s interest in the local lady and arranged for him to be arrested on trumped-up charges and beaten up? Maybe things went further than planned. Who knows?

It is also conceivable that the story of the Dubai authorities is reasonably close to the truth – though, quite clearly, their “care” for him in jail was unacceptable. Unfortunately, those in power in Dubai prefer to stick their heads in the sand whenever some problem appears. They do not want to harm the image of Dubai and hope that they can keep promising a report “soon” and that, eventually, people will forget. This is very naive and, if their friends at the FCO really wanted to help them, they should point out that the only way Dubai will ever gain respect in the world is by facing up to issues such as this rather than hiding them.

Dubai has a very curious take on the law and morality. Alcohol is allowed but drunken behaviour is not – yet hotels offer “all you can drink buffets” and then get upset when this leads to the inevitable. Sex is another thorny issue but prostitution is rife – from the very seedy brothels for workers from the Indian sub-continent to the Five Star hotels where leggy Russian blondes ply their trade in a very open and aggressive manner that would not be acceptable in many western countries.

Dubai has had massive growth in the last twenty years but if it ever wants to be taken seriously, it will have to tackle its own demons. Maybe they could start with producing an honest report into what really happened to Lee Brown.

 

European Business Travel in May

We are about to enter a perilous time for anyone planning a business trip to Europe.

I am not talking about the constant risk of short strikes by airport workers, air traffic controllers or general strikes but something much worse – public holidays.

May sees a bewildering range of official days off including religious holidays, traditional holidays and state days. To make it more complicated, some of these holidays are local, or not followed completely throughout a country. And, just to top it off, if one of these days occurs on a Thursday, you can be pretty sure that many people will follow the European tradition of “making the bridge” and not working on Friday either.

Anyone planning a trip in Europe over the next few weeks should consult their calendars carefully. If you want to make a good impression on a client, it is not a good first step to offer to meet him on a day when his office will be closed.

A novel marketing campaign

This is the latest from Kulula Air, a South African low-fare airline based at Johannesburg – and it’s a real offer! Terms and Conditions are tight though – marriage certificates required. It’s valid on the Jo’burg to Cape Town route from 23rd to 30th April, in honour of President Jacob Zuma’s marriage to Gloria,  his sixth wife, on 20th April.

Pprune -what are Etihad frightened of?

Just over a month ago, the airline crew website, PPrune, banned all further mention of Etihad on its forums. This was presumably after legal threats from Etihad. To my knowledge, Etihad is the only airline of any size that has taken such action.

All internet forums can attract malicious posts and PPrune is no different. Every airline has its implacable critics from within its own ranks as well as aggrieved ex-employees. Some of these people do step over the line of what is either reasonable or honest.

Most large companies now have procedures for monitoring internet posts about their company and will take disciplinary action against employees when necessary. Responsible websites, such as PPrune, will also remove posts and ban posters when approached by an aggrieved party.  Any sensible airline knows how to handle this.

There is much of value for airline crew on PPrune and by no means all the posting about Etihad has been negative. Prospective crew use the forum to compare airlines – not just in terms of pay but in matters like crew scheduling, staff accommodation and staff travel. Pilots also use the forum to discuss safety and airline incidents. Whilst some of the comments might be foolish or uneducated, it is fairly easy, even for outsiders, to distinguish between malicious posts designed to trash an airline’s reputation and those that wish to discuss an event sensibly and learn from any mistakes. Now pilots and cabin crew can look at comments on Emirates, Qatar, Gulf and virtually every other airline in the world – but not Etihad.

There are three obvious reasons why Etihad might have taken such draconian action:

- They have something they want to hide about the way they treat staff

- They have something they want to hide about either one or several safety issues

- They are simply inept and do not understand their action is likely to do their reputation more harm than good.

I suspect the answer is a mixture of all three – but mostly the third.

Safe, well-run airlines have nothing to fear from being open. This issue does not just affect airline staff. If an airline wants to keep things hidden, it is a very good reason for passengers not to fly with them.

 

 

All-night flights at Heathrow

Emirates have floated the idea of flying their Airbus A380′s into Heathrow during the current curfew hours. They argue that the A380′s are much quieter than other aircraft and disruption will be minimal.

Unfortunately, this rather misses the point.

If you live in a city, especially if you are near an aircraft flight-path, you get used to noise. It is not just aircraft noise but traffic, police sirens and all the general hub-hub of a big city.

At the moment, the airport is allowed to accept some flights during its normal closed hours when there has been significant disruption to schedules due to weather or some other problem. During normal hours, aircraft are taking off or landing every minute or so. The noise just blends into the background, along with all the standard noise of the city. The occasional “out of hours” landing causes much more disruption because it happens when there is relatively little other noise. Instead of a fairly constant drone, which your brain blocks off, there is a sudden, loud noise for a couple of minutes as the aircraft passes above.

As for A380′s being so much quieter than other jets. Maybe they are, but they are certainly not silent!

In other words, a couple of one-off landings by A380′s during the middle of the night will cause much greater disruption than any normal flight during the day.

Definitely not a good idea!