Global network expansion

Star Alliance and Oneworld have both been busy expanding their networks this year with new additions to both groups of airlines. Star Alliance welcomed Swiss International Airlines and South African Airways earlier this year, bringing the number of airlines in the group to 18, while Japan Airlines has announced plans to join Oneworld in early 2007.

The incorporation of the first African airline into the Star Alliance will expand the network to include 21 destination points in Africa, while the addition of Swiss International Airlines will mean that the group can now offer connections through 11 European hubs. Overall, the network now covers 842 airports in 152 countries.

Chief Executive of Star Alliance, Jann Albrecht, said that the network was now looking to secure partners in the developing markets of China, India and Russia. Discussions have previously been held with Air China and Shanghai Airlines, while the group has also been reported to be in discussions with Jet Airways in India and government-owned Air India and Indian Airlines.

Italian carrier, Air One, has also announced that it has initiated moves to join Star Alliance, although it has yet to determine whether it will pursue full or regional membership. Meanwhile, within the global group, an expansion of the codeshare agreement between Star Alliance members US Airways and TAP Portugal has increased the number of destinations offered to customers of the two airlines.

Jose Guedes Dias, Vice President of International Relations and Alliances at TAP, said, "The new codeshare destinations in the US signify an important extension to TAP';s network, placing attractive cities within easy reach to business and leisure travellers. We are looking forward to working with US Airways to maximise opportunities and offer numerous benefits to our customers."

Air Asia celebrate successful sponsorship

"Our partnership with Manchester United FC is bringing the club closer than ever before to all the fans in Asia," said Tony Fernandes, Air Asia';s Group Chief Executive Officer, adding, "We are thrilled that our partnership with Manchester United has led to the club';s involvement with the development of youth and sports [training] in Malaysia."

Paper tickets are set to become a thing of the past if the International Air Transport Association (Iata) has its way. It has issued a deadline of Dec 31 2007, after which time no paper tickets will be issued on its Billing Settlement Plan (BSP) system, which is widely used.

Many of Iata';s members already offer e-tickets – 161 larger airlines do so and these represent 90.5 per cent of the BSP volume – however, Iata said that in fact, only 47.8 per cent of tickets currently issued on its system were e-tickets.

The move to e-tickets is expected to save US$3 billion a year in costs, but Iata';s year-end targets for 70 per cent penetration have not been met.

"If you have not started [planning for e-tickets] yet, you have no time to lose," Iata';s Philippe Bruyere told delegates at the World Air Transport Summit. "If you have already started, the challenge is to speed up."

UK airports operator BAA has agreed a UK£10.3 billion (US$19 billion) takeover bid from a consortium led by the Spanish Grupo Ferrovial. The operator, which owns London';s Heathrow, Gatwick and Stansted airports, earlier rejected a hostile bid from the Spanish group and was also receiving offers from Goldman Sachs. In the final deal, Ferrovial offered to pay BAA 950.25 pence per share.

A new airline tax could be used to treat people in the developing world suffering from Aids, malaria or tuberculosis after an agreement was reached between four governments, the United Nations and the world';s soccer federation. The tax, which took effect from July this year, is expected to raise US$300 million per year and is currently being supported by Brazil, Chile, France and Norway, although other countries have also expressed an interest in taking part.

According to the International Air Transport Association, international air traffic increased by 9.9 per cent in April, compared with the previous year. "Strong demand is good news for an industry that continues to take a beating from oil prices averaging US$20 for a barrel more than in 2005," said Iata Director General, Giovanni Bisignani.

Hong Kong's Cathay Pacific Airways is due to announce a takeover of its rival Dragonair in a deal reported to be worth up to US$3.1 million. The buyout will give Cathay Pacific control of a number of valuable Chinese routes and create a formidable rival to China Southern Airlines and China Eastern Airlines.

US airline Delta Airlines has announced a number of new and expanded services to the Caribbean and Latin America, including new flights from Atlanta, Los Angeles and New York to Jamaica, Puerto Rico and Ecuador and added flights to Cancun and Sao Paulo.

The US Federal Aviation Administration has lifted restrictions on Ecuadorian airlines flying to US airports after raising their safety rating. In 1995 the FAA gave Ecuador a category two airline safety rating, restricting Ecuadorian flights into the USA. The organisation also recently increased Venezuela';s airline safety rating from category two to one, allowing Venezuelan air carriers to fly routes to the USA.

The Finnish Tourist Board is capitalising on Finland';s recent triumph in this year';s Eurovision song contest by promoting the country as a tourist and rock concert destination.

Italian low-cost carrier, Blu-express, has launched a new route to Libya, following a trend by European low-cost airlines to offer cheap flights to the area. Currently, flights are available between Europe and Egypt, Tunisia, Morrocco and now Libya and the twice-weekly flight will cost US$92 for a return flight including taxes.