Archive for the 'KLM' Category

Best Of AirlineWorld 2007

This is the last day of the year. As billions of people around the world, we also took a look back to what happened in the old year and made some New Year’s Resolutions.

For us 2007 was not a full year as we started our blog in June. It was a nice calm Sunday and Szafi wrote her first post about the Radio Alphabet – a useful tool not just for aviation fans. Balint01 joined her on the 7th with his first post about “Fuller Planes – Good Or Bad?” – a brief explanation of revenue and capacity management of airlines.

A380 

A380 was one of our main topics this year. We could see the a video of an imaginery evacuation of an A380, we reported on that quite unusual initiation that Singapore Airlines sold the first tickets to the A380 on e-Bay and gave the money (USD 1,25 million) for charity. We tried to find out more about the possible cabin configurations and then we reported on the first delivery.

Boeing 787

Boeing 787, the Dreamliner was our other favorite topic. We wrote about it when it was revealed, we put it in our blog header, we reported on the first announcement of delay that predicted 2 months. Now it seems that a 6-month delay is more realistic.

Developments 

Besides A380 and B787 we saw the birth of a Russian jet called Sukhoi Superjet and a Chinese one called ARJ21-700. We kept track of technology trends in aviation. We wrote an article about RFID usage at airlines and airports, about e-ticketing, a new online payment method at Qantas, a weightless flight, a solar powered, unmanned aircraft. Also we were interested in service developments such as the new Virgin Atlantic Clubhouse at London Heathrow Airport, Lufthansa’s new A380 First Class Concept, Boeing’s 747 development to keep up with A380,

Crashes 

Unfortunately again some serious accidents happened. We saw around 200 people dying in a very tragical crash in Sao Paulo, brazil. 19 people died in an accident of Air Moorea on the way to Tahiti. When China Airline’ 737 burst into fire and blew up, everybody could escape in time thanks to the flight crew, who was criticized for being rude – we thought it was better being rude than being inactive. Later it turned out that a loose bolt caused the fire. There was a sad collision of two planes at an Air Show in Radom, Poland. SAS Airlineshad a bad series of crash landings – without serious injuries – of its Dash 8 turboprop planes. Finally they decided on grounding all their Dash 8 fleet. 87 died in One-Two-Go Airlines crash in Phuket, Thailand. A few days later rallye driver champion Colin McRae died in a helicopter crash over Scotland. The most commented article was the weird accident of an Airbus A340 on the ground of the Airbus factory during testing. The last serious accident of the year was an MD-83 crash in Turkey killing 56.

Photo reports 

We received a lot of photos from our friends and airline enthusiasts, so we could show a photo report of a Royal Aircraft in Budapest, Red Bull Air Race in Budapest, an Air Show in Kecskemet and the A340 Airbus crash at the Toulouse Airbus factory.

Innovations 

We criticized airlines and other players of the industry about wrong steps and we were happy to present good initiations of other players. We found KLM’s promotion: a gift of a costmetics set for online bookers a very smart and useful initiation. We loved Iberia’s enviroment-friendly attitude with naming their new aircrafts Royal Owl, Imperial Eagle and other endangered species. We could read funny comments about an interesting topic: Vatican’s Air Mistral. IATA’s initiation of a greener aviation industry was also worth a post.

Sex and rock and roll 

And finally we tried to entertain those not interested in professional matters of the airline business with articles like Sex in an airplane, Sexy stewardess uniforms – with special attention to the self-designed uniform of Easyjet, Superstar pilots, Special aircraft paintings and we learned about where lost luggage end up going.

We also lost a very key figure of the European airline indusry. Tony Ryan, the founder of Ryanair died on 03 October at the age of 71. Net year we will definately write an article about him, because only a few know about his role in today’s aviation business.

And what is our New Year’s resolution? Well, we’ll do our best to entertain you and draw your attention to the magic world of airlines we so much love.

We both wish you a very happy, successful new year and please keep on reading us! 🙂

By Szafi and balint01
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Air France – KLM EUR 1 Billion Offer For Alitalia

Alitalia has been struggling with financial difficulties for a long time. In the past few months more airlines were bidding for it, but in the end all of them backed down.

Thus today’s news were surprising, that finally Air France – KLM offered Eur 1 billion for it. According to gossips in the industry another offer is expected from Lufthansa.

Alitalia is making loss of EUR 2 million per day and so far no investors were interested in buying it.

By Szafi 

Friday Fun – Good Airline Commercials I.

The following video collection is a bunch of good airline commercials. I think it’s not just me. We all love them. More airline commercials to the world! 🙂

KLM 1 – Swan taking off I really love this series. Swan is an elegant, still somehow very funny animal and a very remarkable figure for KLM. This commercial is simple and very funny.

KLM 2 – Swan landing I think this is the better part of th series.

KLM 3 – Ain’t no mountain high enough A perfect song, a perfect match for an airline that wants to communicate reliability. The song is about being there when our loved one needs us.

British Airways – Absolutely my favourite airline commercial. I saw a film about how they created it. it’s just perfect. Thousands of people are conducted to form a smiling face from air that immediately turns into a globe by taking off their top t-shirt. (They have 2 t-shirts on and the second one helps them form earth.

Finnair – animation. I like it very much. I saw it many times in different business lounges in Europe and it reminds me of that period.

To be continued next Friday. Stay with us! 🙂

By Szafi

Paper-free Air Cargo

IATA is working with seven key cargo airlines – Air Canada, British Airways, Cathay Pacific, KLM, Martinair, SAS and Singapore Airlines – freight forwarders (DHL Global Forwarding, Panalpina, Kuehne+Nagel, Schenker, TMI Group-Roadair, Jetspeed) and ground handling agents kick-started the move to a paper-free air cargo environment with the launch of six e-freight pilot projects. Starting today, cargo on key trade routes connecting Canada, Hong Kong, the Netherlands, Singapore, Sweden and the U.K will be processed electronically.

DHL image photo

“The paper-free era for air freight begins today,” said Giovanni Bisignani, Director General & CEO of IATA. “This first wave of pilots will pave the way for a global rollout of e-freight that will eliminate the paper that costs this industry $1.2 billion every year. Combined, these documents could fill 39 B747 cargo freighters each year making e-freight—a win for the business and for the environment.”

“E-freight is a revolution for an industry that is absolutely critical to modern life. For airlines it is a US$55 billion business that generates 12% of their revenues. More broadly air cargo transports 35% of the total value of goods traded across borders. The potential impact of greater efficiency in air cargo has very broad implications across the global economy,” said Bisignani.
E-freight pilots will systematically test for the first time common standards, processes, procedures and systems designed to replace paper documents that typically accompany air freight with electronic information. During the initial phase, selected shipments will travel without a number of key documents that make up the majority of the paperwork, including the house and master air waybills.  Results from the pilots will be used to expand e-freight to other territories.

IATA e-freight requires that business, technical and legal frameworks are in place to allow airlines, freight forwarders, customs administrations and governments to seamlessly exchange electronic information and e-documents.  The six pilot locations were selected based on their ability to meet these criteria along with offering network connectivity and sufficient cargo volumes.

At each location cargo experts from participating airlines, freight forwarders, ground handling agents, local customs administrations and airport authorities worked together closely over the past 10 months to prepare the pilots.
“High oil prices and cumbersome processing requirements are handicapping air transport’s competitiveness with sea shipping,” said Bisignani. “Sea shipping is expected to grow at 6% annually over the next five years, compared to 4.8% for air cargo. E-freight makes a four-decade leap, bringing strengthened competitiveness by cutting costs and improving transparency and consistency throughout the supply chain. This good news for the customer will help shore-up air transport’s competitiveness with sea shipping and other modes of transport.”

E-freight is one of five Simplifying the Business projects being led by IATA to improve service and cut costs. The industry has set a deadline of the end of 2010 for the implementation of e-freight wherever feasible.

Source: IATA.org

Airline Economics – Ticket Prices

We always see fantastic price offers from airlines. But it is never clear if they contain taxes or not? How much is it whith taxes? And what are these taxes anyway? The following article will explain it all to you.

Today I read it in the news, that British Airways will have to pay a penalty of about EUR 20 000 to the Hungarian Competition Committee, because some of their past commercials were misleading for customers. The Committee’s main problem with these commercials were that they did not say taxes were not included in the price. Earlier SkyEurope, Malev, SmartWings, WizzAir and KLM were penalized for the same purpose. Therefore – at least in Hungary – some airlines started to publish their gross prices. However gross prices can be different at the same airline for the same trip bought on the same day. How can it be?

Basic ticket prices

Pricing is a very sophisticated process at airlines. we can say that almost every airline ha s adifferent pricing model. In general we can say that prices can differ:

– by cabin class: economy class tickets are the cheapest, business class ticket prices are higher and first class ticket cost the most

– by the date of departure. The closer we are to the date of departure when buying the ticket, the higher the prices are. It is thought to be the model of low cost airlines, but it is not true. Thishas always been the model of flight ticket pricing.

– by the rules attached. The less flexibility we need, the cheaper the prices are. Cheapest tickets are not refundable, not modifiable, usually a saturday night has to be spent att he destination and the length of the trip may not exceed 2 weeks. If we need a ticket that can be modified later or refunded or has an open segment (for example we do not know the return date) cost more.

(We will explain the reason of this pricing model in a separate article about airline revenue management.)

The basic ticket prices are paid for the airline and in case of a common operated, so called code share flight the operating and the marketing carrier share the money when the ticket is sold by the marketing carrier.

Taxes

Originally taxes were paid only for the airport. The airports publish their handling and other prices in the same reservation systems the airlines use for booking. They publish these prices in their own currency, that is why these amounts differ from day to day, because the currency converting rates change even within days. This minor change is the reason why airlines do not wish to include taxes in the basic price.

It also belongs to the truth that in case of certain currencies this change my reach bigger amounts as airlines publish their prices for 333 days. We could also say – so what? They can change their prices every week if the want to. This is also a possibility, but publishing airline prices is a difficult and expensive procedure as these prices have to be present in all the reservation systems all around the world. Thus it is understandable airlines do not wish to publish gross prices in all markets. However within the EU it is not a risk.

There is a nice trick about taxes airlines happily use. They did not want to increase prices in the same volume as kerozene prices rose in the near past. Therefore they created a so called YQ tax that is basically the fuel surcharge. This way they could keep prices low and include the extra cost into the taxes that are not shown in the comemrcials. Fuel surcharges are not paid to the airports.
“Other fees”

The other fees section of a ticket contains the so called service fee. Service fee came into the picture when airlines stopped paying regular commission to travel agencies a few years ago. (althoguh they still pay super or marketing commission and similar extras to agencies that qualify for these by selling a huge volume of the airline’s tickets) Instead of paying commissions they launched service fees that they also collect and this way they give some space to agencies to collect the missing commission from the clients directly.

At the same time airlines also started to play with this service fee to direct traffic to their more cost efficient sales channels, such as website or call center. It can easily happen that you pay more for the same ticket, same day, same trip in the airline’s airport office than on their website. The most expensive sales channel for an airline is the travel agency (including online agencies), then comes the city or airport office of the airline, then the call center and naturally the cheapest channel is their own website.

So if you would like to get the cheapest price for a certain flight, you should try to book it for yourself on the airline’s own website. Still it is possible that you will find the cheapest price at another website, because when you first look for it on the airline’s website, only a higher class is open, but in the meantime somewhere somebody in the world cacnelled his ticket, a few minutes later a cheaper ticket will be available.

That is the so called revenue management, but we will take a closer look at it in a different post.

By Szafi

Happy Birthday, KLM!

A nice press release from the 88 year-old Dutch airline company:

A new KLM Delft Blue house is being issued to mark our 88th anniversary on October 7. The building selected to be the 88th KLM House is ‘t Lootsje on the Rozengracht in Amsterdam. The Delft Blue miniature houses are all replicas of historical Dutch buildings and are filled with Bols Jonge Jenever. The first “House 88” will be presented by Bart Vos, EVP Inflight Services, to Mr. Huub van Doorne, CEO Lucas Bols.

From 1575, ‘t Lootsje on the Rozengracht, Amsterdam, was the home of the Bols liqueur and jenever distillery and tasting room. Bols is the oldest Dutch company still operating and the world’s oldest distillery brand.

The Delft Blue houses have been presented by KLM to our World Business Class passengers on intercontinental flights since the 1950s. Since 1994, the number of houses in the collection has matched the age of KLM. Every year a new house is added to the collection and they have become popular collectables both at home and abroad.

History of ‘t Lootsje

Lucas Bols headed the Bols company between 1678 and 1719 and turned it into an internationally renowned brand. As a major shareholder in the Dutch East India Company (VOC) he had first choice of exotic herbs and spices which he used to make almost 300 different liqueurs and jenevers.
The drinks became so popular that the company had to keep expanding, buying the buildings on either side. In 1892 a canopy appeared above the entrance to the tasting room ‘t Lootsje and the neck gable became a stepped gable. A decade later Eduard Cuypers designed a long facade for all the Bols buildings. The front of the tasting room at No. 99 remains unchanged to the present day.

Source: KLM

By Szafi 

Air France-KLM Preparing Bid For Iberia

Following earlier indications by British Airways, who are joining a consortium to bid for Spanish Flag-carrier Iberia, Air France-KLM has yesterday admitted that they are preparing to launch a bid for Iberia together with several Spanish companies, Madrid’s Expansion newspaper reported. The consortium likely would include investment firm Torreal and publishing house Grupo Planeta, which currently is the largest shareholder in Vueling Airlines (a Spanish low-cost). The AF KLM offer would keep 51% of Iberia in Spanish hands, allowing it to maintain its traffic rights for non-EU and US routes. In recent weeks, as Airlineworld has reported as well, AF KLM Chairman and CEO Jean-Cyril Spinetta has stated several times that the group is “studying” the Iberia dossier, while admitting that they will be open to Alitalia as well, would the Italians decide to talk to them.

British Airways is also planning a potential merger with Iberia though a consortium which would also probably leave 51% in Spanish ownership for the same reasons (flight rights) as AF-KLM.

It is really interesting to follow this story, that includes several players: Iberia – the bride, with fellow oneworld member BA and bigger rival AF-KLM in the role of the potential grooms! But knowing that AF-KLM is also considering proposing to the ripped-off Italian girl: Alitalia if she would express her interests… What a love-circle! 🙂

by balint01


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