ON TOUR: ERA Gathers in Rome for its Spring Meeting
Alison Chambers of Emerald Media reports
The traditional role of a regional airline ” providing valued feeder services to major hub airports from the regions ” is certain to change, the European Regions Airline Association (ERA) conceded last week. Air fares will also rise. This is the inevitable outcome of the controversial new EC law on passenger compensation which came into force on 17 February. It gives new rights to passengers who are denied boarding; face long delays or cancelled flights. Once again, no other mode of transport is discriminated against in this way.
ERA is so outraged by the inaccurate information being issued by the EC to media ” through leaflets, fact sheets, posters, a video and a press release on its website ” that it has taken the unprecedented step of lodging a complaint of maladministration against the EC with the European Ombudsman. It wants the EC to stop misleading airline passengers via the media, the materials withdrawn and an apology made to airlines. It is certain that IACA will follow its action.
Speaking in Rome, director general Mike Ambrose said that the disproportionate nature of punishing airlines for cancellations beyond their control, without any consideration for safety, ”demonstrates obvious inexperience in day to day airline operations and shows brutal disregard of industry knowledge.”
”We have lost patience with the Commission,” he stated, pointing out that ERA had tried every other means to try and get it to listen to industry advice. ERA cites the Commission”s press release, which confirms to passengers that: ”current technological development makes it possible for a ”plane, in almost all cases, to take off or land in the most difficult conditions. Furthermore, ”fog or other weather conditions such as rain, storms, snow, etc, only rarely constitute exceptional circumstances.”
With airlines facing bands of compensation charges of between E250 and E600 in the case of denied boarding, depending on sector length, and rules on when they should provide meals, accommodation, or refunds in the event of cancellations or delays, they are disinclined to interline. Passengers will be the losers as no longer will they, for example, be able to through check their bag from Inverness ” Manchester to travel on to New York. It will be point to point travel from now on. The financial implications for a small regional carrier, when things go wrong, are just too great.
The industry continues to throw challenges at us, said ERA president and COO of Aegean Airlines, Antonis Simigdalas, but he reminded delegates that collectively, ERA airlines provide air services to 80m citizens.
Traffic growth in 2004 was buoyed by the Baltic countries joining the European Union. ERA members Air Lithuania, Lithuanian Airlines and Air Baltic reported a traffic growth of more than 22% last year. Overall, the Association saw a 4.1% passenger growth with RPKs averaging 7.1% and passenger load factor averaging 60%. Today, the European regional airline business supports 130 airlines and 1,450 airports. Passenger numbers have trebled since 1980 to 2000 and aircraft have become 75% quieter and 70% more fuel-efficient.
It is also apparent, listening to delegates in Rome, that regional aircraft are working harder than ever before and there is now a shortage of second-hand types available to lease/buy. The decision by Lufthansa to take 11 BAe 146-300s means that BAE Systems will have all its -300s placed and flying. Saab Aircraft Leasing says it has all its 340Bs flying and there is a shortage of Saab 2000s and Fokker 50s available. The 2000, just like the ATR and Bombardier Dash 8, has seen a resurgence of interest in Europe as airlines value the turboprop once more. Eastern Airways is adding two Saab 2000s, putting two ex-Swiss/Crossair examples on to the UK register and Air Southwest of the UK is adding a fourth Dash 8-300 for new flights from Newquay to Bristol and Leeds Bradford.
Roberto Stinga, formerly CEO of Air Exel and latterly low cost carrier V Bird, confirmed he is behind a new Maastricht, Netherlands-based ACMI airline called Interstate Airlines which hopes to start flying this summer. AvCraft Aerospace GmbH was also in Italy to meet with 328Jet and turboprop operators and update them on the status of the programme. Interim administrator Dr Martin Prager has drawn up a tentative date of 1 June to line up new investment that would enable the 328Jet to remain in production and secure the future of its 345 employees who are still on site and working in Oberphaffenhofen. There is also an air of optimism from the Rekkof team, which is getting closer to being able to announce some positive news on the restart of the Fokker 70 and 100 lines in the Netherlands. The company is in active dialogue with airlines, including several ERA carriers, says Matthijs de Haan, director marketing and sales.
With more aircraft coming on the market and more passengers flying, Bruno Frentzel, senior VP sales and marketing at SITA, highlighted that there is still more work to be done on improving airport security. In 2002, airlines paid out E3bn on additional security measures imposed by European governments, he said. SITA is leading the way in developing biometric technology which has been a success at London City Airport with fingerprint identity implemented for all its staff working airside.
ERA will mark its 25th birthday this year coinciding with its annual general assembly in Gothenburg, Sweden during 12-14 October.
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