Posts in category Gulliver


Business and financeGulliver

Legacy airlines are facing new competitors on transatlantic routes

EVEN for a global industry like aviation, Primera Air’s business model seems remarkably cosmopolitan. The Icelandic-owned budget airline is headquartered in Latvia, but mainly operates low-cost flights from Denmark and Sweden to sunny places in the Mediterranean. This summer, it will begin long-haul flights from Britain and France to America. The company bears more than a passing resemblance to Norwegian Air Shuttle, another nominally Scandinavian airline with global aspirations. More than two-thirds of Norwegian’s capacity by passenger-km now bypasses its home country, and the rapid growth of its long-haul operations are proving to be a serious challenge for legacy carriers such as British Airways. And its tentacles are spreading around the world. This autumn, the carrier will begin operating domestic Argentinian flights, 12,000km away from its home base.

Low-cost airlines are not new. Ryanair, founded in the 1980s, has grown to become…Continue reading

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Business and financeGulliver

The days of the A380 look numbered

ASK frequent flyers which is their favourite aircraft and most come up with the same answer: the A380 superjumbo made by Airbus, a giant European planemaker. Able to carry 525 passengers in a typical three-class layout, on two full-length decks, the aircraft still feels spacious, with wide aisles and plenty of headroom. Frequent flyers also admire the freshness of the cabin air, the lighting systems that are designed to reduce jet lag and the quietness of the cabin. “You can hardly hear it take off,” one fan recently told Gulliver. “And I can actually go to sleep on the plane unlike any other I’ve been on before.”

But less than a decade after it carried its first paying passengers, the age of the superjumbo looks like coming to an end. When Airbus announced its plans to build the plane in 2000, it hoped to sell up to 1,200 of them over two decades. Eighteen years later it has sold just a quarter of that figure, and has…Continue reading

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Business and financeGulliver

Turkish Airlines bounces back to growth

A LITTLE over a year ago, Gulliver gave a downbeat assessment of the prospects for Turkey’s aviation sector. Having enjoyed a decade of uninterrupted growth of more than 10% a year, Turkish Airlines, the country’s flag-carrier, was grounding aircraft and closing routes amid growing unrest at home and violence across its border with Syria. Concerns about regional security were also making life difficult in the United Arab Emirates (UAE) and Qatar, two other countries that have built aviation empires by connecting far-flung parts of the globe through their hub airports. Yet whereas the Gulf carriers remain in the doldrums, Turkish is gaining altitude again.

There had been just cause for concern about Turkey at the end of 2016. The year unleashed a failed military coup, a resultant purge of dissenters, and a wave of attacks mounted by Islamic State terrorists. When Istanbul’s Atatürk Airport was struck by bombers in June, even transit passengers started to…Continue reading

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Business and financeGulliver

Supersonic jets may be about to make a comeback

IN OCTOBER 2003, the age of supersonic passenger travel came to an inauspicious end. That month British Airways withdrew from service its last Concorde jet, a Franco-British aircraft from the 1970s that could fly at twice the speed of sound. Since the 1940s executives in the aerospace industry had predicted that the future of passenger travel would be supersonic. But since the retirement of Concorde there have been no passenger jets that can fly that fast in service. Worse still, even conventional sub-sonic jetliners these days fly slower than their equivalents from the 1960s.

In 2017 the race to break the sound barrier gained new momentum. In December Aerion, an aerospace start-up from Nevada, Lockheed Martin, a defence giant, and GE Aviation, an enginemaker, announced a joint venture to develop what they are calling the world’s first supersonic business jet, the AS2. Aerion’s executive chairman, Brian Barents, has said that he hopes the jet will be able to carry up to 12 passengers at 1.4 times the speed of sound—about 60 percent faster…Continue reading

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Business and financeGulliver

Are America’s airports the worst in the world?

SOME airports are known for being the antithesis of elegance. The reputation of Luton Airport in Britain was famously trashed by a television advert for Campari, a posh drink, in the 1980s. In the clip, a well-dressed man offered a drink of the stuff to a fashion model on holiday and asked, “Were you truly wafted here from paradise?” She replied in her full cockney accent, “Nah, Lu’on Airport!” Its reputation as a place to fly from has never quite recovered since. In August it was named Britain’s worst airport by Which?, a consumer group.

But at least Luton’s terminals are modern and safe—and that cannot be said of others around the world. In this week’s print issue, Gulliver’s colleagues from around the globe have reviewed some of the world’s worst airports. These range from departure lounges with no toilets in…Continue reading

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Business and financeGulliver

America’s Department of Commerce imposes a tariff of 292% on Bombardier’s C-Series jets

Flying away from BoeingFlying away from Boeing

A YEAR ago Dennis Muilenburg, the chief executive of Boeing, the American aerospace giant, had a big problem. Tweets written by Donald Trump, America’s newly elected president, were hitting Boeing’s share price. Their value was initially lifted by the new president’s promise of extra spending on defence. But in December last year Boeing’s shares fell after a tweet from Mr Trump suggested that an order for new presidential planes worth $4bn should be cancelled. The newly-elected president then picked a fight with its rival Lockheed Martin over its new fighter jet; Boeing’s executives were left in fear of being the next target in his gunsight.

And so, it seemed, Mr Muilenburg came up with a plan: snuggle up to Mr Trump’s “America First” agenda to avoid the flack. Boeing started to stress in its press releases how many American jobs it was creating; it asked to president to unveil the first 787-10 jet produced in February and in April…Continue reading

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Business and financeGulliver

Ryanair stops Christmas strikes, but at a cost

AIRLINES respond to greater demand for travel around Christmas by increasing fares. But this year, Ryanair has found that it is not the only one taking advantage of the desire to be home for the holidays. To avert proposed strikes by pilots across Europe, the Dublin-based carrier offered on December 15th to recognise pilot unions for the first time in its history. The offer came just in time to avert a four-hour strike by Italian pilots scheduled that afternoon. Pilots in Ireland and Portugal also called off a strike they had planned for December 18th. Ryanair may have saved Christmas, but its stock price fell by 8% on the day of the announcement.

Michael O’Leary, Ryanair’s chief executive, acknowledged that union recognition marked a “significant change” for the company. During a dispute with baggage handlers in 1998, Mr O’Leary said that Ryanair would recognise unions “when a majority of our people wishes to do so.” Nonetheless, Ryanair has strongly resisted attempts by its employees to join independent unions, preferring to…Continue reading

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Business and financeGulliver

Donald Trump holds off hitting the Gulf carriers with sanctions

WHEN Donald Trump became America’s president nearly a year ago, lobbyists campaigning for protection for the country’s airlines against competition from the Middle East were overjoyed. But they were less happy on December 13th when it was revealed that Donald Trump has decided to hold off on imposing sanctions against the three big Gulf carriers—Emirates of Dubai, Etihad of Abu Dhabi, and Qatar Airways—for what America’s big airlines allege are unfair subsidies that they receive from their governments. For now, the administration will continue discussions with the UAE and Qatar, the trio’s home countries. But it has not taken off the table the possibility in the future of amending or terminating its Open Skies agreements that allow the Gulf carriers to fly to any American airport they want. A document from an administration meeting in September, obtained by Politico, a news website, states that “additional…Continue reading

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Business and financeGulliver

Why the Trump administration has enraged flyers across America

FOR a president elected on a populist campaign message, Donald Trump is not doing much to make himself popular with flyers in America. On December 7th, the Trump administration announced that it was withdrawing a regulation proposed under Barack Obama to require airlines and other plane-ticket sellers to disclose baggage fees when customers begin the process of buying tickets. Airlines already have to display checked baggage fees on their websites. But the Obama administration’s proposal would have forced them to do so up front in the shopping process, so that travellers could compare the fees for various airlines and routes when choosing their itineraries. Mr Trump is also scrapping another Obama-era proposal to require airlines to report to regulators how much money they make from add-ons such as paid carry-on bags and seat selection.

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Business and financeGulliver

British Airways’ franchisee in South Africa throws off two black passengers

IN THE latest—and possibly most alarming—in a recent string of allegations of racism against airlines, two black musicians claim they were downgraded from business class on a British Airways-branded flight in South Africa to make room for a white woman. Thabo Mabogwane and Bongani Mohosana, a South African musical duo known as Black Motion, purchased business-class tickets for a flight on December 4th from Cape Town to Johannesburg on the South African-based Comair, branded in British Airways’ colours. They wrote on Instagram, a social-media website, that a white woman in business class complained that her seat was broken, and they “happened to be the only two young black men in the British airline business class.” They were asked to move to economy class, and when they complained they were told to leave the plane, both claim.

The airline denied to the Continue reading

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Business and financeGulliver

How airlines are squeezing more seats onto their planes

WHEN Gary Leff, a prominent travel blogger, took his first flight on one of the new “no legroom” planes operated by American Airlines, he found that the experience was not nearly as bad as he feared. American had drawn howls of protest from customers when it announced it was reducing the distance between rows of seats—“seat pitch”, in industry jargon—on its new Boeing 737 Max planes to 29 inches, compared with the 31-inch pitch on its existing 737-800s. So in June it capitulated, and settled on 30 inches. Mr Leff tried out these new seats last week and was pleasantly surprised to find that “the seats themselves are no worse than” in American’s current layout in economy. That may seem counterintuitive, but aircraft-interior designers had come to…Continue reading

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Business and financeGulliver

The case for reforming airport-slot allocation

GULLIVER is back from the 141st Slot Conference in Madrid, a meeting of airlines and airport co-ordinators run by the International Air Transport Association (IATA), an airline lobby group. In this week’s issue, he opened the lid on how landing and take-off slots are allocated at congested airports around the world:

Instead of letting airports decide who would use their runways and when, the system was designed to have schedules hammered out by committees of airlines. In the 1960s, as growing traffic started to fill up some airports, the committees became a way of parcelling out the most prized slots.

Since the 1970s, allocation has been steered in most countries by IATA’s “Worldwide Slot…Continue reading

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Business and financeGulliver

America’s culture wars are spreading to hotels

CHOOSING a hotel for a trip is generally seen as an apolitical decision. In contrast, restaurants and cafes have sometimes taken on an ideological tinge, with conservatives mocking liberals for their latte coffees, and liberals ribbing conservatives for their deep-fried everything and well-done steaks. But for most hotel users, location and good wi-fi matter more than the ideology of the owners. In some places that now appears to be changing: a trend turbocharged since the arrival of Donald Trump, an owner of an international hotel brand, in politics.

Suddenly the new Trump International Hotel in Washington, DC—on the same street as the White House and Capitol building—became the most politically-charged building in the city, if not the country. Celebrity chefs scrapped their plans to open restaurants there after Mr Trump made incendiary comments about Mexicans. Meanwhile, organisations such as the Kuwaiti embassy Continue reading

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Business and financeGulliver

Hotels are finding out what amenities guests really want

IT HAS been more than once that Gulliver has found himself putting the incorrect electrical plug into the wrong socket or dock at a hotel—whether it be for a smartphone, laptop or shaver. Since such gadgets have proliferated, the hotel industry too has been confused about what facilities they should offer to service weary travellers. But after much trial and error, hotels finally seem to be figuring out which amenities guests truly value—and which ones are little more than gimmicks.

The latest survey of American hotels from the American Hotel and Lodging Association, an industry group, reveals a plethora of shifts in the hospitality industry, including the rapid disappearance of smoking rooms. But when it comes to gadgets, the trends are particularly interesting, since they are not always in the direction of more technology.

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Business and financeGulliver

Proposed changes to frequent-flyer programmes may be bad news for budget travellers

ALONGSIDE Eurocrats, straight bananas and anyone who opposes Brexit, Britain’s tabloid press has found something new to hate this year: British Airways (BA). Britain’s flag carrier has been criticised for cutting legroom in economy, axeing free food and drink on short-haul flights and—horror of horror—the amuse bouche that used to be served before dinner in first class. To save face, this week BA’s chief executive, Alex Cruz, who has come under sustained criticism for the cuts to service quality, announced that the carrier would be tarting up its offer. This would include more free meals, better wi-fi and 72 new planes. “We’re bringing back the glory days”, Mr Cruz proudly crowed. But not all of the improvements may be as good for frequent flyers as he advertised.

Among the changes planned for 2018, BA is moving to so-called “dynamic award pricing” in Executive Club, its loyalty programme. This means that tickets paid for with points from the programme will be no longer calculated in distance, but the cost BA is…Continue reading

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