IN BRIEF: 1 December 2008

This week's ABTN news in brief

‘Banning business class is false economy'

Stopping staff travelling business class can be a false economy, the Advantage Focus Partnership said.

The group, which represents about 80 UK independent small travel management companies (TMCs), said many business class fares were now being offered more cheaply than premium economy seats.

Norman Gage, Advantage's director, said: "Understandably perceptions are that business class is more expensive and so companies have automatically imposed a ban on booking business class seats.

"In reality the feedback from Focus Partnership members is that business class seats can come at a far less expensive price.

"Many companies probably do not realise that because their travel policies enforce a ban on business class seats they can end up paying more for their business travel."

Mr Gage added that although many airlines were offering reduced fares in premium economy, they often had restrictions like requiring a Saturday night stay.

www.advantagefocuspartnership.com

Airlines decline to comment on "talks"

UK carriers Flybe and BMI declined to comment on a report in a British newspaper that they are in talks over a possible sale of bmi regional and bmibaby.

Lufthansa will take over the holding of 50% and one share in BMI of Sir Michael Bishop, its chairman, early next year.

But the German carrier is understood to be more interested in BMI's Heathrow slots and possibilities for long haul routes than in its regional and low cost operations.

www.flybmi.com  www.flybe.com  www.lufthansa.com  

Air Berlin reports record turnover

Air Berlin has increased its operating income by 57% in the third quarter, the best result in company history.

With net profit up 43.2% compared to Q3 2007, this is the first quarter in which turnover has exceeded €1bn, despite a fall in passenger numbers from 8.8m to 8.6m.

Air Berlin said the growth was down to an efficiency programme put in place by its board of directors earlier this year.

Revenue per available seat kilometre increased 15.3% while earnings before interest, leasing expenses, depreciation, amortization, interest and taxes (EBITDAR) increased from €177.7m to €209.7m, an increase of 18%.

www.airberlin.com

UK Hotel profits drop 9%

UK chain hotels have suffered a 9% profit drop in October according to the latest HotStats survey from TRI Hospitality Consulting.

The average income before fixed charges (IBFC), or profit per available room, fell from £54.70 daily to £49.76, compared to October 2007.

Sampling 509 UK branded hotels, TRI blamed higher costs and lower demand which fell 3.2% to an average occupancy of 77.4%.

Only cities that hosted large events such as Liverpool and Newcastle saw demand rise.

The rest of Europe fared better, with Berlin's hotels recording an IBFC increase of 8% despite falls in occupancy.

A sporting event and a meeting of the NATO defence ministers lifted room rates in Berlin and Budapest by 7.6% and 7.7% respectively.

www.trihospitality.com

IATAThe International Air Transport Association: IATA represents and serves the airline industry, with a membership made up of around 230 airlines. The association seeks to raise awareness of how aviation benefits the economy, fight for airline's interests and ensure industry regulations are sensible. IATA helps its members directly by offering advice on reducing costs while improving efficiency and on improving safety standards. It also provides professional support in the form of publications, training and consulting. says air travel still declining

The International Air Transport Association (IATA) has recorded a decline in international air travel for the second month running.

Passenger traffic declined 1.3% compared to October 2007, a smaller than the 2.9% drop in September.

The October load factor was 75%, 2% lower than last year.

Air freight traffic fell 7.9%, the fifth consecutive month of severe drops.

Giovanni Bisignani, IATA's director general and ceo, blamed the recession and predicted the slow in decline would only be temporary.

African carriers were the worst having recorded a 12.9% drop in traffic.

Asia-Pacific and North America saw declines of 6.1% and 0.8% respectively.

Only Latin America and the Middle East saw growths of 4.5% and 3.5% respectively.

Europe also saw a slight growth of 1.8% in October.

www.iata.org

Uniglobe expands into Iraq

Uniglobe has increased its international network by signing agencies in the Middle East, Eastern Europe and North Africa.

Among the signings is Dahlan Travel & Tours, a private agency with locations in Jordan, Amman and Bagdad. The deal makes Uniglobe one of the first travel organisations to link with Iraq.

Orbis Business Travel Management, the largest network in Poland, has also signed to the network.

Uniglobe, ranked in the top 20 UK travel management companies (TMCs) and specialising in the SME market, is part of the Uniglobe Travel International Business Travel Network.

www.uniglobetravel.com

Click Travel launches mobile service

Click Travel's Travel Manager system is now available on web-based mobile devices.

The TMM Travel Manager Mobile service gives users access to reservation details via their mobile phones.

The application integrates Google maps and features an online and offline travel booking facility.

Click Travel manages business travel for over 100 corporates.

www.clicktravel.com

Per Arne Watle to chair EU advisory body

Per Arne Watle, has been elected chair of the Industry Consultation Body (ICB).

The retired president and ceo of Norwegian carrier Widerøe's Flyveselskap, will chair the body which advises the European Commission (EC) on aspects of the Single European Sky project.

Watle is joined by Steve James of UK NATSThe UK's air traffic control company, formerly know as National Air Traffic Services. NATS provides air traffic control services for aircraft flying in UK airspace and the eastern part of the north Atlantic. as vice chair.  They take over from Fritz Feitl and Eric Kroese respectively.

The ICB was set up by the EC in 2004 to advise legislators in reforms of the European Air Traffic Management system, known as the Single European Sky project.

www.eurocontrol.int/ses