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JetBlue, Lufthansa Ink Codeshare Deal

NEW YORK – JetBlue Airways and German air carrier Lufthansa have signed a codesharing agreement following the decision by Lufthansa's parent to buy a stake in JetBlue.

Codesharing allows airlines to sell seats on each other's flights.

The companies said Monday that under the agreement, JetBlue would be allowed to place the Lufthansa code on JetBlue flights. Initially, the airlines plan to offer connecting service between 12 JetBlue destinations in the U.S. and Puerto Rico and Lufthansa's network of 180 destinations in Europe, the Middle East, Africa and Asia.

The agreement was filed for authorization from the U.S. Department of Transportation.

In January 2008, Lufthansa's parent company agreed to buy a 19 percent stake in JetBlue Airways Corp. Lufthansa is a unit of Deutsche Lufthansa AG.

Pending authorization, codeshare flights will be available for sale by early October, and will be available to be booked on the two airlines' Web sites and through local and online travel agencies.
Emirates Sees Return of New York A380 Flights

NEW YORK – The top executive at Dubai-based Emirates airline said Monday that he expects that the carrier's Airbus 380 flights will return to New York in the first six months of 2010, because passenger demand should be recovering by then.

The airline started New York service with the double-deck aircraft in April of last year, but pulled it two months later and replaced it with the smaller Boeing 777. Emirates has stretched its network as demand sank in the recession, especially in the U.S.

Emirates currently has five A380s in its fleet.

CEO Tim Clark said in an interview with The Associated Press that the company is also interested in expanding to other U.S. cities like Washington, Seattle, Boston and Chicago. But Clark doesn't expect the airline will add new U.S. destinations anytime soon.

"(History) has hardened us to knee-jerk reactions," Clark said.

Clark said the airline has been filling planes in other U.S. cities it serves; including Houston, San Francisco and Los Angeles. But it's kept a lid on the number of flights out of those cities because demand has been so soft.

The airline has also kept a close eye on the size of airplanes it uses at certain ports, choosing to replace bigger planes — like the A380 — with smaller ones to keep occupancy rates up during the downturn.

But the airline is still growing despite Emirates' passengers numbers globally have jumped by about 21 percent since this time last year, Clark said.

Clark told the AP in June that the Arab world's biggest carrier should stay profitable for the year through next March, even after its net profit last fiscal year tumbled 72 percent.

"The U.S. is coming along, but not as fast as Europe and Asia," Clark said.

The International Air Transport Association said Thursday that global air passenger demand fell 2.9 percent in July, indicating that demand is improving, but hasn't yet recovered.

And as demand is starting to show signs of recovery, Emirates has begun to raise fares again, Clark said, although fares are still discounted by as much as 50 percent on some routes.

Emirates serves nearly 100 destinations in 60 countries. It plans to launch service from its Dubai hub to Durban, South Africa, On Oct. 1 and to Luanda, Angola, on Oct. 25. The carrier has 128 passenger planes in service, with 123 on order — valued at more than $52 billion.
Etihad Unveils Heathrow Lounge

Etihad Airways is to open a new premium lounge at London Heathrow airport.

The new lounge is part of the airline’s flights moving from Terminal 3 to Terminal 4 on September 30.

First and business class customers and Etihad Guest Gold and Silver card holders will have access to the new lounge, located opposite the gates most commonly used by Etihad for flight departures.

It will have individual treatment rooms where therapists from Six Senses Spa will offer facials, foot and leg massages, plus five-star dining facilities.

Other features include a prayer room, a relaxing seating area with Poltrona Frau leather chairs and bathroom and shower facilities.

WTO Poised to Outlaw Airbus State Aid

The World Trade Organization is set to rule today what is being dubbed as the biggest trade dispute in history - between aerospace giants Boeing and Airbus. The US planemaker is accusing the EU of handing out illegal subsidies to its arch rival, and it is believed that the WTO is expected to agree.

The decision would force a change in the way the world’s biggest plane manufacturers fund their development. However, the EU has also issued a counterclaim against the US for its support of Boeing, and a ruling on that is due in the next six to eight months.

The WTO’s judgement will come today with a final decision expected three to four months later. It follows five years of deliberations.

The panel will release its findings to Airbus and Beoing, but the results will not be made public.

Louis Gallois, the chief executive of Airbus’s parent company EADS, has said he believes the company has a “very good case”.

Experts say the WTO’s decision will set the boundaries for acceptable government funding in civil aviation.

However they believe that despite today outcome, there remains a long way to go in the saga.

“This whole WTO process is going to last four to five years. It’s going to be 2013 at least before we get a final settlement on this,” said Howard Wheeldon, senior strategist at BGC Partners.

He added that Boeing and Airbus have to find terms so that they can work together based on what the WTO actually rules.

Trade rules do not allow subsidies for exports, or subsidies that distort the market. Boeing does not receive launch aid from the US government but European member states have argued that the company gets state funding through research and development money.

Last month, Lord Mandelson announced the UK would lend Airbus £340m to develop its new wide-body plane, the A350 XWB. The government has made a return of £1.6bn on its previous £1.2bn investment in Airbus, according to the Department for Business, Innovation & Skills, headed by Mandelson.

At the time, a spokesman for the US Trade Representative called the UK loan “a major step in the wrong direction”.

France and Germany have also offered €1.4bn (£1.2bn) and €1.1bn respectively in launch aid for the A350.


UNWTO warns: Prepare For Second Wave of Flu Pandemic

MADRID – In expectation that a second wave of the H1N1 swine flu pandemic will coincide with the beginning of the flu season in the northern hemisphere in coming months, international organisations need to increase their vigilance.

The World Tourism Organisatiion (UNWTO) held a two-day review and preparation exercise on Travel and Tourism under Pandemic Conditions in Madrid last week.

The workshop was convened to anticipate the challenges the virus will bring over the next few months and ensure that the travel and tourism sector is fully prepared for the evolving pandemic.

UNWTO stressed the need for a transparent, consistent and timely exchange of information and communication among the different stakeholders of the sector.

In particular, participants welcomed the regular exchanges within the Tourism Emergency Response Network, managed by UNWTO, and encouraged its consolidation.

It was also recommended that countries should review and confirm that tourism is appropriately included in overall pandemic preparedness plans.

The World Health Organisation said that in tropical climates, where the pandemic virus arrived later than elsewhere, authorities also need to prepare for an increasing number of cases.

WHO said that evidence from multiple outbreak sites demonstrates that the H1N1 pandemic virus has rapidly established itself and is now the dominant influenza strain in most parts of the world

It said the overwhelming majority of patients continue to experience mild illness. Although the virus can cause very severe and fatal illness, also in young and healthy people, the number of such cases remains small.
 
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