Showing posts with label The Economist. Show all posts
Showing posts with label The Economist. Show all posts

Monday 28 May 2018

Why airliners in Cuba and Iran crash so much


Full article on economist.com

When the dream of a smooth flight turns into the nightmare of an airliner crash, understanding what went wrong is sometimes straightforward. That was the case with a Malaysia Airlines flight which crashed in the summer of 2014, killing 298. This week Dutch and Australian investigators conclusively showed that it was shot down by a missile fired by Russian armed forces. But in other cases it is much harder to apportion blame. Such is the complexity of civil aviation that investigators spend years sifting through wreckage, recordings and data logs to work out what went wrong. Often technological, human and environmental faults are the main culprits. Yet another factor can be argued to have caused many of the world’s deadliest air disasters so far this year: economic sanctions...

Thursday 17 May 2018

Zimbabwe Airways: Flights of fancy


Full article on economist.com

Having one loss-making state-owned airline is bad enough. What, then, of a government that wants two?

Earlier this year Zimbabweans were startled to learn that the government had concluded a secret $70m deal to buy four second-hand Boeing jets from Malaysia to form the core of a new national airline, Zimbabwe Airways. This venture is supposed to compete with Air Zimbabwe, the flag carrier, which ran up huge debts thanks to poor management and ex-President Robert Mugabe’s habit of commandeering its planes so his wife could shop abroad...

Tuesday 1 May 2018

The great foreign exchange rip-off is coming to an end


Full article on economist.com

Some years ago, when Gulliver was a wide-eyed reporter on his first business trip, he sidled up to a bureau de change in London’s Heathrow Airport to buy some foreign currency. His nervous excitement quickly turned to dismay when the teller gouged 12% from the transaction, justifying the theft by tapping on a display-screen of ruinous exchange rates. Today, Gulliver knows better than to buy foreign currency at an airport. But many do not: in 2016 Heathrow raked in £50m ($68m) by renting retail space to bureaux de change. New technology and startups could soon change that...

Tuesday 10 April 2018

Gulf Air tries to reclaim its crown


Full article on economist.com

With their geographical advantage for connecting flights between far-flung places, there is plenty to keep the airlines of the Gulf countries busy. Yet Bahrain’s skies are nearly empty compared with its neighbours. About 9m passengers used its airport last year, far fewer than the 88m for Dubai, 37m for Qatar and 26m for Abu Dhabi. The difference is striking given that Gulf Air, Bahrain’s flag carrier, was for decades the most prestigious airline in the Middle East. In its heyday in the 1970s and early 1980s, none of its three neighbours even had national airlines...

Friday 23 March 2018

Ukraine convinces Ryanair to return


Full article on economist.com

Almost one year ago to the day, Ryanair, Europe’s largest low-cost carrier, announced plans to begin serving Ukraine, its largest country. Ukraine had been a glaring white spot in the airline’s route network, deliberately avoided because of the anti-competitive advantages afforded to Ukraine International Airlines (UIA), the flag-carrier. A new infrastructure minister, Volodymyr Omelyan, brokered the deal between Ryanair and Boryspil Airport, the capital’s main gateway and home base of UIA. But it collapsed within months. Now, Ryanair, the government and the airport are trying again...

Thursday 15 March 2018

Come fly with Xi


Full article on economist.com

In ancient times, traders on the Silk Road connecting China with Europe rarely ventured into the northern Caucasus region that is now home to Georgia. Diverting from established routes through Armenia and Anatolia to the south served little purpose unless conflict made the trackways impassable. Today, advances in transport and logistics mean that geography is less of a hurdle for traders. But friendly relations are just as important. Having signed free trade agreements with China and the European Union, Georgia is keen to pitch itself as a trade-and-transport hub for President Xi Jinping of China’s One Belt One Road initiative...

Wednesday 14 February 2018

How to ensure Ryanair foots the bill for flight delays


Full article on economist.com

There is little doubt that Ryanair takes umbrage at EU261, the piece of European law that guarantees passengers compensation in the event of most flight delays and cancellations. Michael O’Leary, the airline’s boss, insists that he complies with the “ridiculous” piece of legislation. But many say otherwise. Last year, when a pilot rostering mishap grounded thousands of Ryanair flights, the UK’s Civil Aviation Authority (CAA) accused it of “persistently misleading” customers about their rights. Which?, a British consumer group, agreed that Ryanair fell “woefully short” of its obligations. Media reports exposing poor treatment of passengers abound. Yet, in the past five months, your correspondent has received two EU261 pay-outs from Ryanair. Claims that the company swindles its customers are exaggerated...

Thursday 18 January 2018

Legacy airlines are facing new competitors on transatlantic routes


Full article on economist.com

Even for a global industry like aviation, Primera Air’s business model seems remarkably cosmopolitan. The Icelandic-owned airline is headquartered in Latvia, but mainly operates flights from Denmark and Sweden to sunspots in the Mediterranean. This summer, it will begin flying from the UK 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 now bypasses its home country, and the rapid growth of its long-haul operations is proving to be a serious challenge for legacy carriers such as British Airways...

Thursday 11 January 2018

Turkish Airlines: Flying to the moon


Full article on economist.com

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...

Thursday 26 October 2017

UDAN a good job, Mr Modi


Full article on economist.com

Why would one of the world’s fastest-growing airlines buy a ten-seat propeller plane, when most of its customers fly on 200-seat jets? Switching to smaller, less efficient aircraft defies commercial logic. But it is an appealing thought for those living in isolated communities far from big airports. That is what India’s new regional connectivity scheme, Ude Desh Ka Aam Nagrik (UDAN) or “let the common man fly”, promises to offer. It uses subsidies to improve the commercial viability of seldom-used routes. It also caps half of the fares on such routes at 2,500 rupees ($38) per hour of travel. If properly implemented and funded, the scheme could become a powerful tool for spreading India’s economic wealth more evenly...

Friday 29 September 2017

Ukraine’s aviation sector is holding the country back


Full article on economist.com

Look at a map of domestic air traffic in any rich country and the relationship between flying and economic prosperity becomes obvious. In America, 614 towns and cities have regular flights to other domestic airports. Australia has 144 such places. Even in modestly sized Britain that number is 49. The more complex and headache-inducing a domestic route map becomes, the more a country fosters connectivity between its regions. Development naturally flows. It is a symbiosis that helps to fuel growth in rising economies like India and China. Yet not all emerging markets foster the link between travel and wealth...

Wednesday 9 August 2017

Chucking Kiev


Full article on economist.com

Such has been the success of Ryanair, Europe’s largest low-cost carrier, that the continent is now awash with towns and villages whose economies depend in no small part on access to its route network. This encroachment into small regional airports evolved from an early focus on large European cities, whose gateways swelled with traffic following deregulation in the 1990s. Yet today, there are still European countries not served by the airline. Ukraine, the last big jewel for low-cost carriers in Europe, is an obvious white spot. It may be for some time to come. Despite promising to add four routes to Kiev and seven to Lviv this year, Ryanair has been pushed out by a coalition of local interests who have little appetite for competition. Ukrainians will foot the bill for their protection...

Thursday 6 April 2017

Two flights are better than one


Full article on economist.com

It is a peculiarity of the airline business that a connecting flight is often cheaper than a shorter nonstop route to the same destination. Normally, paying less to receive more is economically preposterous. But in transportation, where the fastest conveyance from A to B is the main utility, it makes perfect sense. For passengers, sitting on a plane any longer than necessary can be an exasperating, even painful experience. For airlines, flying empty seats is no less harmful. This inverse relationship between a journey’s value and its cost is something that Europe’s new breed of long-haul budget carriers may be overlooking...

Tuesday 21 March 2017

America restricts large electronic devices on all flights from the Arab world


Full article on economist.com

Passengers flying nonstop to America from anywhere in the Arab world are now banned from bringing large electronic devices in their carry-on luggage. The Associated Press, citing American government officials, says the restriction applies to eight countries: Egypt, Jordan, Kuwait, Morocco, Qatar, Turkey, Saudi Arabia and the United Arab Emirates. But the only other Middle Eastern or North African country with passenger flights to America is Israel (which is also the country in the region that American carriers fly to). That makes the measure, in effect, a pan-Arab ban. All devices larger than a mobile phone must be checked in under the new rules, including laptops, Kindles, cameras and portable DVD players...

Tuesday 14 March 2017

Middle East slowdown: Narrowing the gulf


Full article on economist.com

Last April, Etihad Airways, the flag-carrier of the emirate of Abu Dhabi, claimed that 2015 had been its fifth consecutive year in the black, with net profits of $103m. James Hogan, the firm’s chief executive, hailed the result as proof that Etihad is a “sustainably profitable airline”. Yet less than one year on, both Mr Hogan and his chief financial officer, James Rigney, have been eased out amid a “company-wide strategic review” to “improve cost efficiency, productivity and revenue”; reforms ill-befitting a healthy business. Just across the sand, Emirates, the flag-carrier of Dubai, has deferred orders for 12 double-decker Airbus A380s in response to a 75% drop in profits. Qatar Airways, the region’s other super-connector airline, has abandoned plans for a subsidiary in Saudi Arabia. After years of uninterrupted and speedy growth, the Gulf carriers are hitting turbulence...

Friday 10 February 2017

Bombardier CSeries: The comfort of strangers


Full article on economist.com

One statistic that never fails to amaze Gulliver is the oft-cited claim by Boeing that one of its 737s lands or takes off somewhere in the world every two seconds. Airbus, the American planemaker’s bitter European rival, makes the same claim for its A320-family model (perhaps surprisingly, given that fewer have been built). So ubiquitous are these mid-sized, short-haul aircraft that you are all but guaranteed to be on one of them when boarding a modern plane with 120-200 seats. That duopoly is nice for Boeing and Airbus, which have collectively delivered 16,800 of the two models. But, in Europe at least, passengers are getting a taste of what else might be...

Monday 9 January 2017

'Poverty pay' for BA's high flyers


Full article on economist.com

Barring a last-minute breakthrough, about 2,500 cabin crew members employed by British Airways (BA) will strike this week over alleged “poverty pay” at the airline. Workers originally planned walkouts for the Christmas period, but suspended the action to consider a revised pay offer. Having rejected that offer by a 7-1 margin, the strikes will now occur on 10th and 11th January. BA says the impact will be minimal, with 85% of cabin crew reporting for duty and just 12 return flights being cancelled each day. Passengers due to travel on those affected flights, which all leave from London Heathrow Airport, will be rebooked onto alternative services. Still, the slightest whiff of disruption will prompt howls of discontent in the capital, which is already reeling from strikes on the London Underground network and some national rail services...

Friday 23 December 2016

A domestic flight in Libya turns into a European hijacking crisis


Full article on economist.com

News that a domestic flight operated by Afriqiyah Airways, a state-owned Libyan airline, has been hijacked and flown to Europe should shock and appal an industry that has, since 9/11, spared no expense to end the scourge of such horrors. Events are still unfolding, but it is clear that two men claiming to have grenades forced the aircraft, an Airbus A320, to bypass its intended destination of Tripoli and fly on to Malta, the tiny Mediterranean island nation situated between Libya and Italy. Few details have emerged about the motives or demands of the hijackers. But, at the time of writing, all passengers and some crew had been released, signalling a peaceful end to the crisis...

Wednesday 21 December 2016

Flying while Muslim


Full article on economist.com

Delta Air Lines found itself at the centre of a social-media storm when Adam Saleh, a YouTube personality who posts about life as a Muslim American, was removed from one of its flights for—apparently—no greater crime than speaking Arabic. Mr Saleh is not the first passenger of Middle Eastern descent to allege discriminatory treatment by airline staff and passengers. But, true to his profession, he may be the first to have recorded an encounter in real time (see link). At the time of writing, nine hours after disembarkation, his video had been retweeted an incredible 556,000 times on Twitter...

Thursday 17 November 2016

Turkey losing the power of flight


Full article on economist.com

Until recently, the worst thing about transiting through Istanbul’s Atatürk Airport was the heaving throng of passengers crammed into its over-stretched terminals and under-staffed security lines. It was also the best thing. Witnessed from the sanctuary of a barstool with time on your side, the endless haze of Nigerians, Swedes and Pakistanis dancing around one another creates the most sublime of spectacles. It is a modernist dream that quickly becomes a nightmare, of course, when you join the scrum yourself. Yet the appeal of the global hub endures for all but the most battle-worn and hardened of business travellers...