Globe Merchant Travel Blog

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By Unal Basusta, eTN Ambassador |
Air France-KLM on December 11 lodged a formal complaint with the European Commission regarding the conditions under which Lufthansa intends to takeover the Austrian flag carrier Austrian Airlines.

Air France-KLM has taken part during Fall to the initial bidding process leading to the privatization of Austrian Airlines but had unfortunately to come to the conclusion that it was not in a position to submit a financial proposal in accordance with the instructions imposed by the Österreichische Industrieholding AG (English: Austrian industry-holding stock corporation).

The Franco-Dutch airline group claims that the agreement reached in December 2008 between the Austrian authorities and Lufthansa does not follow the instructions imposed during the bidding process on Air France-KLM, and is in particular conditioned to a €500 million debt cancellation by the Austrian state and based on a potentially lowered equity price for the state shareholder. The agreement signed by Lufthansa and officials of the Austrian government’s privatization agency gives the German carrier the state’s 41.56 percent share in Austrian Airlines. That deal carries a price tag of €366,000 (US$465,000) but foresees additional payments of up to euro162 million depending on whether, and to what degree, Austrian turns profitable again. Lufthansa has also offered to buy the rest of Austrian Airlines for euro4.44 per publicly held share.

This is not the only front Air France-KLM had to face Lufthansa in the battle for European sky. Latest reports indicate Italian unions and politicians appear to be tipping the scales toward Lufthansa and leaving Air France-KLM behind over Alitalia.

CAI, a consortium of top Italian businessmen, came to Alitalia’s rescue with a 427 million euro purchase of its best assets to prevent the carrier being liquidated.

After weeks of suspense, Alitalia was kept flying after pilots and cabin crew members decided to back CAI’s rescue offer. But Italy’s powerful unions could still disrupt a deal with a foreign airline. Major unions like CISL and CGIL say they prefer Lufthansa because of its multi-hub strategy.

CAI said Air France-KLM and Lufthansa are still battling it out for a stake of as much as 25 percent in Alitalia. Despite media reports that Air France-KLM had already sealed the deal, CAI chief executive Rocco Sabelli said the competition was still open. A decision will be made by the year end, with the aim of having a foreign partner in place when Alitalia is relaunched as a smaller carrier on Jan. 12, he said.

CAI had also finalized the purchase of tiny Italian airline Air One, whose operations will be folded into those of Alitalia. It also aims to reduce the average age of Alitalia’s fleet to 8.6 years in 2009 from 12.4 years.

British Airways is also in the running to become a partner, but CAI said it favored Air France-KLM or Lufthansa because they were interested in taking a stake in Italy’s national airline, while BA only wanted a commercial partnership.

Italian Prime Minister Silvio Berlusconi, whose drive to save Alitalia spurred the creation of the CAI group, said he would prefer a foreign rival to strike a commercial alliance with Alitalia rather than buy an equity stake.

Prime Minister Berlusconi has declared that Lufthansa is his preferred choice after saying that Air France-KLM’s failed deal, which he thinks wanted to acquire Alitalia on the cheap. Sensing the feeling chief executive of Air France-KLM, flew to Rome and agreed to back CAI’s decisions on hubs and the network if they were profitable.

Lufthansa, leading the pack in the European airline sector, has agreed to buy Brussels Airlines and is in talks to acquire SAS also. Some thinks Alitalia would gain from allying itself with a major partner rather than waiting to see where it is left in the end.

Now real restructuring will center around Northern Europe by Lufthansa, when they are done Air France-KLM can pick up what is left like Olympic Airlines and Malev Airlines which they look ripe for pickings.

Lufthansa wants Alitalia so that competitors won’t have the Italian market and with Alitalia alliance they can fill the 15 Airbus A380s that it has ordered.

But, Alitalia remains a tough sell given its history of labor action and failed restructuring efforts. But then again they are shopping in a buyer’s market and they’ll have to take whatever they can get.

Examiner
A Staten Island couple who flew into JFK from Athens on November 30 panicked when their little 18-pound terrier, Leo, was nowhere to be found in the baggage claim area.

Though they had been allowed to fly with Leo in the cabin on the way to Athens, Olympic Airlines insisted the dog be transported in the cargo hold during the return flight.

The couple, Matthew Mirones and Lisa Lonuzzi, approached airline officials at JFK. “At first, they gave us the runaround,” Ms. Lonuzzi told The New York Post. “Then they finally told us they had the crate–but no dog.”

An Olympic Airline spokesman explained that when they opened the belly of the cargo hold, the terrified terrier ran across the tarmac and airport employees were unable to catch him.

Asked why the airline did not apologize, the spokesman told The New Post simply, “It’s a regrettable event for us.” (Perhaps they changed their tune when the story got more media coverage. Tonight, ABC News reported that the airline insisted that they “repeatedly apologized.”)

Matthew Mirones and Lisa Lonuzzi with Leo’s now-
empty dog house.

Not knowing what else to do, Ms. Linozzi placed an ad on Craigslist. Her ad received hundreds of responses, and one that mentioned a similar dog who was seen lying dead on Rockaway Boulevard in Queens.

It was Leo.

His devastated parents “scraped him off the side of the road.” “At least we know where he is,” Ms. Linozzi said. “We have closure, just no apology.”

How to Keep Your Dog Safe During a Flight In Cargo

Fortunately for small dog owners, most airlines allow dogs weighing less than 20 pounds to ride in the cabin of the plane, if the dog and carrier are small enough to fit underneath the seat.

For bigger dogs that must be flown in the cargo hold, the internet is rife with websites giving tips on keeping your dog safe during flight. The usual tips range from not tranquilizing your dog, to providing adequate food and water, to using a sturdy carrier that is labeled brightly with “Live Animal” stickers.

Are there other precautions you can take to avoid negligent baggage handlers or a dog that escapes?

Yes, there is. According to the San Francisco SPCA, you can:

* Ask the airline if you can watch your pet being loaded onto the cargo hold.
* When you board the plane, notify the captain and flight attendants that your pet is in the hold so they can take precautions. And don’t be shy about asking the crew to check on the status of your pet.
* Carry a picture of your pet.

The U.S. Department of Transportation provides consumer reports about domestic airlines, who are required to report incidents of loss, injury or death to an animal during flight. You can check their consumer reports website here to check for the safety record of any airline.
It is relatively safe to fly your dog in a cargo hold, but incidents of lost dogs do happen. Luckily, one Boston dog who escaped the cargo hold, was found hours later, shaken, but alive. It’s unfortunate we can’t say the same for Leo.

Each Way From To

Philadelphia, PA Brussels, Belgium $180
New York, NY (LGA) Brussels, Belgium $180
Boston, MA Brussels, Belgium $200
Los Angeles, CA (LAX) Brussels, Belgium $200
Washington DC (DCA) Brussels, Belgium $200
Chicago, IL (ORD) Brussels, Belgium $230
San Francisco, CA Brussels, Belgium $250
Las Vegas, NV Guadalajara, Mexico $165
San Diego, CA Guadalajara, Mexico $175
Phoenix, AZ Guadalajara, Mexico $210

More International USAir e-savers……

ATHENS, Dec 8 (Reuters) – Greek flights will be grounded on Wednesday as air traffic controllers walk out for one day to join a general strike over labour reforms and the government’s economic policies, union officials said.

“All flights from and to Greek airports will be halted and only emergency flights will take place,” Panagiotis Hatzakis, secretary-general of the air traffic controllers’ union, told Reuters on Monday.

Greeks fear the nationwide strike could cause further unrest as rioting continued for a third day across Greece, triggered by the fatal shooting of a teenager by police at the weekend and fuelled by economic hardship.

Dozens of people have been injured and scores of businesses destroyed in Athens and Thessaloniki during the riots, which have piled pressure on the conservative government.

State-owned Olympic Airlines [OLY.UL], which is being privatised, and its rival Aegean Airlines (AGNr.AT: Quote, Profile, Research, Stock Buzz), said they would cancel all foreign and domestic flights on Wednesday.

Greece’s public and private sector unions have called the nationwide strike to protest pension reforms and the government’s unpopular economic policies. (Reporting by Angeliki Koutantou; Editing by Daniel Flynn and Sophie Hares)

ATHENS, Dec 5 (Reuters) – Greek carrier Aegean Airlines (AGNr.AT: Quote, Profile, Research, Stock Buzz) said on Friday it will cut ticket surcharges by up to 3 euros ($3.84) for domestic and international flights thanks to tumbling oil prices.

Greece’s largest private carrier, whose main competitor Olympic Airlines [OLY.UL] is being privatised, raised surcharges in July when oil prices neared $146. But oil this week neared $43, its lowest level in almost four years.

“Due to the drop in oil prices, Aegean is reducing surcharges on domestic and international routes tickets by two and three euros respectively, starting from January,” the company said in a statement.

It was the second surcharge reduction in a two-month period.

Aegean said this week it will expand its European routes in 2009 despite the global downturn. It will add flights to Brussels, Berlin, Barcelona, Vienna and Venice on new Airbus A320/321 aircraft.

The carrier, which said its fleet will number 21 Airbus jets by May, is also seeking permission from local authorities to begin flights to Istanbul and Tel Aviv.

Aegean reported a 21 percent drop in nine-month profit, to 26.5 million euros ($33.88 million), despite an increase of 13 percent in passengers traffic, due to the strengthening of the dollar versus the euro. (Reporting by Renee Maltezou; Editing by Daniel Flynn and Hans Peters)

Each Way From To

Los Angeles, CA (LAX) Los Cabos, Mexico $75
Phoenix, AZ Los Cabos, Mexico $115
Chicago, IL (ORD) Los Cabos, Mexico $125
Philadelphia, PA Frankfurt, Germany $225
Charlotte, NC Frankfurt, Germany $225
Phoenix, AZ Frankfurt, Germany $240
New York, NY (LGA) Rome, Italy $225
Philadelphia, PA Rome, Italy $240
Los Angeles, CA (LAX) Rome, Italy $270
Boston, MA Rome, Italy $270

More International USAir e-savers……

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