Airline Finance News - Europe.


New York, Geneva (AirGuideBusiness - Airline Finance News Europe) Jul 3, 2011

ECJ advocate general calls for defining 'passenger compensation' more broadly In what can be fairly described as an extreme pro-consumer opinion that will likely increase airlines' costs associated with the EU 261/2004 passenger compensation regulation, the European Court of Justice's advocate general argued Tuesday that passengers may claim reimbursement for "reasonable" expenditures incurred when an airline fails to provide care and assistance in the event of a canceled flight. These expenditures may include "non-material damages" and even an extra day in charges from dog boarding kennels, ECJ AG Eleanor Sharpton said. The newly-defined reimbursements come on top of the obligatory compensation foreseen in the law, of which the amount varies depending on the distance of the planned flight. The advocate general's opinion is not binding on the ECJ, but in most cases the court follows the AG's advice. Final judgment will be given at a later date. According to an ECJ statement issued Tuesday, "The advocate general finds that the reference to 'further compensation' cannot be limited to the compensation of the type provided by the regulation: The regulation does not set any limitation on the type of damage for which a passenger may make a claim. That question must be determined in light of national law, and may, therefore, include non-material damage. The advocate general finds that the reimbursement of such expenses should not be considered as 'further compensation' from which other compensation granted under the regulation may be deducted. The duty to pay compensation for a canceled flight and the duty to provide care and assistance are concurrent and cumulativeNthe airline may not escape liability by offsetting one against the other." The AG's opinion comes in regard to claims presented by several Portuguese families that were booked on an Air France flight from Paris Charles de Gaulle to Vigo in September 2008. The flight took off as planned but returned to CDG a short time later due to a technical problem with the aircraft. All passengers were rebooked onto alternative flights the following day; however, only one person was offered assistance by the airline in the intervening time. One family was rerouted to Oporto and had to take a taxi to Vigo. The ECJ was referred by national courts the question of whether the "further compensation" that a passenger may claim under 261/2004 is restricted to provisions explicitly covered by the regulation (such as accommodation, meals and telephone calls) or whether it can extend to cover other "non-material" damages. Another question referred to the ECJ was whether the Air France flight in question should be considered "canceled" since it did in fact take off. In an intriguing conclusion, the AG found that a flight is "canceled" within the meaning of the regulation ifNeven after departing as plannedNit does not arrive at its scheduled destination but returns to the airport of departure. "A flight is intended to carry passengers and their baggage from A to B," she reasoned. "When it departs from A as planned but then returns to A and proceeds no further, the flight cannot be said to have operated. Nothing of the essence of the operation has been achieved, as the carrier has carried no one, and nothing, anywhere." Jun 29, 2011

Airline Marketing and Management Research and Markets: Airline Marketing and Management, Seventh Edition - New Edition of the Leading Textbook. Through six previous editions, Airline Marketing and Management has established itself as the leading textbook for students of marketing and its application to today's airline industry, as well as a reference work for those with a professional interest in the area. Carefully revised, the seventh edition of this internationally successful book examines an exceptionally turbulent period for the industry. It features new material on: - Changes in customer needs, particularly regarding more business travellers choosing or being forced - to travel economy, and analysis of the bankruptcy of 'All Business Class' airlines. - An explanation of the US/EU 'Open Skies' agreement and analysis of its impact. - The increase in alliance activity and completion of several recent mergers, and the marketing advantages and disadvantages that have resulted. - Product adjustments that airlines must make to adapt to changes in the marketing environment, such as schedule re-adjustments and the reconfiguration of aircraft cabins. - Changes in pricing philosophies, with, for example, airlines moving to 'A La Carte' pricing, whereby baggage, catering and priority boarding are paid for as extras. - Airline websites and their role as both a selling and distributing tool. - The future of airline marketing. A review of the structure of the air transport market and the marketing environment is followed by detailed chapters examining business and marketing strategies, product design and management, pricing and revenue management, current and future distribution channels, and selling, advertising and promotional policies. The reader will benefit from greater understanding of both marketing and airline industry jargon and from knowledge obtained regarding the extraordinary strategic challenges now facing aviation. Written in a straightforward, easy-to-read style and combining up-to-date and relevant examples drawn from the worldwide aviation industry, this new edition will further enhance the book's reputation for providing the ideal introduction to the subject.

Jun 29, 2011

Air Malta Air Malta will reportedly slash more than 500 jobs. Air Malta last week confirmed details of a long-awaited restructuring plan, which it said is needed to Oto save the airline and hundreds of jobs.O However, as airline officials remained vague on the plan, details leaked to a national newspaper disclosed that almost 40% of KMOs workforce, or 500 jobs, will be cut. KMOs long-time struggle for survival prompted the European Commission in November to authorize a U52 million ($74.4 million) short-term loan facility from the government to alleviate the small carrierOs liquidity problems. The EC approved the state aid on a temporary basis until it could take a position on the restructuring plan to be submitted by Malta within a maximum of six months. The plan, the EC argued, must guarantee Ofuture viability of the services currently provided by Air Malta; otherwise, Air...

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