Branson Predicts…
July 14, 2008“One of the big American carriers will almost definitely go.” Words of Richard Branson as he discussed the aviation industry on Saturday. Tricky Dicky believes that “the financial state of the world is just about the worst I’ve ever known it. It’s getting perilously close to being worse than the 1990s.”
So what is the billionaire going to do about it? Lower his airlines prices to ensure passengers don’t continue to take the brunt of rising fuel costs? Stop wasting resources by flying over-paid billionaires into space? No, express interest in buying the airline bmi. Well I’m sure that’ll mean lower ticket costs for the passengers. Oh, actually, I’m not.
Not that the ever-changing state of the aviation and travel industry will be mentioned by companies at this year’s Farnborough International Airshow as manufacturers showcase new models and technology. Kicking off today, the event also serves a podium for those all important aircraft order announcements.
Living up to it’s new title as ‘focal point’ of the aviation industry, the Middle East offers up some business to Boeing. New low cost carrier FlyDubai has ordered more than 50 new 736-800 aircraft in a deal worth around a cool $4 billion while Etihad Airways has placed a $9 billion order for 45 Boeings – 35 B787s and 10 777-300ERs – with an option for a further 35 planes and rights for another 15. Blimey. Money from oil? Won’t be long before the likes of B.P or Shell start launching their own airlines, We’ve Got All The Money Airlines, perhaps?
Well, someone must have the money these days as more and more people seem to be running out. Air India and it’s owners National Aviation Company of India Ltd (NACIL) don’t. The state-run carrier are looking for a £270 million bailout package from the Indian government as the company faces massive losses thanks to the rising aviation fuel prices and operational costs.
Cathay Pacific have had to hike up premium fares from Honk Kong in an effort to upset increasing fuel costs. Up to 15% on some business and first class tickets after the airline announced a profit warning only last week. “We regret having charge passengers more, but the increase in our fuel bill is too great for us to absorb.” The airline will also be redeploying aircraft over the winter to more revenue-friendly services.
Not a great start to the week for news but lets hope it gets better soon.
