Thursday, June 26, 2008
Table ronde des journalistes étrangers
Originally broadcast on June 26, 2008
Saturday, June 14, 2008
Reports of Virgin Blue's demise greatly exaggerated
Comment
All's well that ends well, or so the saying goes. But with the current economic issues affecting the airline industry, it might not be a happy ending for all stakeholders writes Justin Wastnage
Mark Twain famously found reports of his death to have been greatly exaggerated, not least by the New York Journal-American, which published a not-so glowing obituary. In the aviation business eulogies are often delivered prematurely, with airlines frequently “on the brink of survival” or “at death’s door”. Like a cat, the world’s carriers seem to have a knack of just about scraping through crises to live another of nine lives.
Thus the news this week that market analyst firm JP Morgan read Virgin Blue the final rites is equally exaggerated. The firm warned that the airline needed to up prices by one tenth or else risk insolvency. The root cause is the sky high cost of aviation fuel, currently hovering at about $30 on top of the $140 per barrel of crude oil. This record price, JP Morgan argued, makes many of Virgin’s routes unprofitable.
This may be true, but Virgin would shy away from raising prices on many routes, for in the shape of Qantas-Jetstar and Singapore Airlines’ subsidiary Tiger Airways, , for there are two competitors with deep pockets willing to take a hit in the short term in return for edging the boys from Brisbane out of the market.
Indeed, Virgin’s boss Brett Godfrey is pragmatic. Hitting back at the report, he outlined several other cost-cutting methods such as reducing capacity and “further cash management” strategies. Godfrey is in a bind for sure. But it far from terminal decline. Over the past two years Virgin has built up a credible (if fledgling) rival to Qantas as a full service carrier. It has invested during the good times in frequent flyer programs, interline deals and premium economy seating that should ensure its survival in the short term. If a move upmarket powering an airline through a possible wallet-tightening period sounds counter intuitive, then consider business class ticket sales in the US. It is not the chief executives and government officials who have lost their homes to dodgy mortgages; it is the rank and file travelling public.
But Virgin cannot easily raise fares either. It can look at its fleet mix with more urgency, using its fuel efficient Embraer jets on routes better suited to the 100-seaters, while trimming the frequency of other routes. Qantas has already pulled off some domestic routes where there was competition and Virgin could do likewise. The Australian economy is still booming and at the moment there is sufficient market for everyone if only it is shared a little better.
But the storm clouds are gathering, however, overseas. IATA director general Giovanni Bisignani has warned that the oil price hike represents a bigger threat to the industry’s survival than all previous catastrophes combined. Michael O’Leary, the loud-mouthed boss of Europe’s largest low-cost carrier Ryanair has welcomed the sustained high oil price as a chance to “get rid of a few crappy airlines”. Bisignani is known for hyperbole, warning previously this year that environmental fears could derail the industry and that electronic ticketing was essential to air transport’s survival. Equally, O’Leary has issued warnings of “bloodbaths” and “massacres” in the low-cost scene each European winter season for years now, and at best a couple of smaller airlines fold into larger ones.
But that is not reason to ignore Mssrs Bisignani, O’Leary or even Morgan. The global aviation industry is now predicted to make a combined loss this year of over 2.5 billion dollars, IATA reckons. This a reversal of fortunes to say the least: IATA’s last forecast, itself gloomier than last year’s estimate, predicted profits of $4 billion.
The only airlines laughing are those flying turboprop aircraft (like the Bombardier Dash-8), which use about half as much fuel as jets, or those who have actually gotten their hands on the next generation of aircraft which also consume much less of the black gold.
There will be some casualties for sure in coming months, but is Alitalia can cling onto life for three years of loss-making and Olympic Airways continue to limp on, it would be hard to believe the most pessimistic reports emanating from the world of aviation.
Like Twain, UK rock fiddler Dave Swarbrick’s death in Coventry was also mistakenly reported. Unlike Twain he was able to read a favourable account of his life and the incident has given him the chance to deliver the gag: "It's not the first time I have died in Coventry". Aviation must also be hoping for a silver lining.
Wednesday, May 28, 2008
New jets aim for a green sky future
Fuel from algae, glide approaches and redesigned aircraft will help cut flying's carbon footprint, writes Justin Wastnage.
An area the size of Belgium could be used to farm enough algae to power the entire world's aircraft, Craig Saddler, president of Boeing Australia told an aviation environment summit in Sydney recently. "Not that we'd actually use Belgium," he added quickly.
Boeing, like many in the air transport industry, sees great potential in diesel produced from organic sources rather than fossil fuels. The current front-runner is biodiesel produced from sea algae, which sucks up carbon dioxide as it grows. Virgin Atlantic recently trialled biodiesel on a short flight from London to Amsterdam and Air New Zealand is planning a trans-Tasman flight using the fuel later this year.
And just this week the Queensland Premier, Anna Bligh, announced $166,000 in government funding for a biodiesel plant and algae farm in Townsville, which would produce about 290 million tonnes of biodiesel by 2010.
However, despite the massive money now going into future aviation fuels, the zero-emission flight is decades off. But that did not stop Giovanni Bisignani, director general of the International Air Transport Association, shocking its annual assembly last September by calling for "carbon-neutral growth in the medium term and eventually carbon-free". By 2050, he predicted, aircraft would no longer pollute at all.
Meanwhile, there are some less headline-grabbing measures being taken to cut aviation's carbon footprint. In Europe, halving 2000's carbon dioxide emissions from aircraft by 2020 is enshrined in law. Most of this is to come from redesigning aircraft and the engines that power them, says Tony Davis, chief executive of the Australian office of engine maker Rolls-Royce.
To read the article in full, click here to go to SMH.com.au
Wednesday, February 20, 2008
How to get your wings
Pubdate: Wednesday 20th of February 2008
Edition: First
Copyright: Section: My Career
Subsection:
Page: 2
Wordcount: 724
The cost of starting a career as a pilot just came down, writes Justin Wastnage.
They're seen as having one of the most glamorous professions on the planet.
Commercial airline pilots spend their days among the clouds, often jetting from one exotic international destination to the next. They enjoy the admiration and respect of the community and can earn up to $350,000 a year.
And yet there is a shortage of applicants for pilot positions. Ian Woods, president of the Australian and International Pilots Association, says he is surprised aspiring pilots are not "crushed in the rush" for jobs with airlines. There are only 350,000 pilots worldwide, a tiny number compared with other occupations with the same earning potential.
Part of the problem is the cost involved in becoming a pilot. To earn their wings, aspiring aviators until recently have had to pay their own way through flight school, starting in light aircraft before graduating to twin-engined aircraft with sophisticated cockpit instruments. Would-be pilots have been forced to save or take out loans to pay the $60,000 needed to get an Australian commercial pilot's licence.
But there is now another way as airlines around the world rethink pilot training.
In Australia, Regional Express Airlines (Rex), facing a severe shortage of pilots, last year announced it would provide sponsored cadetships for raw recruits. "Rex recognises that the high cost of flying training is a major obstacle to many young people who desire to make a career in the sky," Rex chief of staff Jim Davis said at the launch of the program.
Rex spokeswoman Danielle Ross says the regional airline, which will pay for either half or all the training costs, depending on merit, had more than 1000 applications for the first intake of 20 places. Those selected were "the brightest academically". The first batch began training on December 10.
Of the 40 candidates the airline expects to take each year, 20 will be considered for a fully sponsored scholarship program that could see them paying nothing towards the $160,000 training program in return for a guarantee of six years' service. A further 20 will pay half the training costs via a low-interest loan and must stay with Rex for five years.
The program, a joint venture between Rex and Mangalore airport in Victoria, is in many ways a return to the past. Before the 1990s, many big airlines accepted recruits who paid for their tuition through flight. But privatisation made the airline industry more cutthroat and shareholders demanded an end to paid-for training schemes. By 2000, the only paid-for training option was a 10-year stint in the Royal Australian Air Force before shifting to commercial flying.
Woods says the crew shortage is getting more acute as air transport grows and airlines compete with each other to find pilots. The emergence of low-cost carriers is exacerbating the problem. Aircraft manufacturer Boeing estimates a further 10,000 pilots will be needed globally during the next 10 years to meet demand.
However, the Rex scheme is still far from the norm. Some regional airlines, such as Queensland's MacAir, are able to capitalise on their location to capture staff. "It's a lifestyle choice," says MacAir managing director Kevin Gill.
Most pilots are motivated by a love of flying. Virgin Blue pilot Rob Hoey first caught the aviation bug growing up in remote Papua New Guinea, where his parents were missionaries and flying was an essential mode of transport.
Hoey became a mechanic but he and his wife poured their salaries into his flying lessons for two years. When he qualified, he worked for NG Air, an Aboriginal-owned air service based in Alice Springs. After a stint in Papua New Guinea flying for Mission Aviation Fellowship, he returned to Australia, where he worked for several airlines before ending up at Virgin Blue in 2003. He worked his way up from Cessna light aircraft to 19-seat turboprops and large Boeing 767 jets, until finally transferring to the 76-seater Embraer jets on the Canberra to Sydney route.
For others wanting to be pilots, the gold standard is still the Qantas cadet pilot program. The airline has partnerships with Swinburne University of Technology in Melbourne and Brisbane's Griffith University.
How to get your wings
Demand for trained pilots is soaring reports Justin Wastnage
In his portrayal of infamous conman Frank Abagnale Jr, Leonardo DiCaprio confidently strides through an airport lobby with armfuls of adoring female flight attendants. Catch Me If You Can may have been a movie, but it paints a popular cliché. Add to the glamour the prospect of earning the equivalent of an outer suburb house in a year and it’s easy to see the appeal of becoming an airline pilot.
Given this, Ian Woods, president of the Australian and International Pilots Association says he is surprised aspiring pilots are not “crushed in the rush”. Yet there are only 350,000 pilots worldwide, woeful when compared with other occupations with the same earning potential, says Capt Woods.
This shortage is getting more acute as air transport grows and all airlines are fighting each other to find crew, Capt Woods says. The emergence of low cost carriers like Tiger Airways is only exacerbating the problem. Aircraft manufacturer Boeing estimates a further 10,000 pilots will be needed globally over the next 10 years to meet demand.
What puts most off is the cost of getting an Australian Commercial Pilot's Licence, usually at least $60,000.
Mostly people pay their own way. The sponsored cadetships offered by airlines in the Catch Me If You Can days (not that Mr Abagnale ever actually trained as a pilot) dried up in the 1990s, due to shareholder demands. Instead aspiring aviators usually either save or take out loans to pay for basic flight training in light aircraft followed by advanced training flying twin-engined planes and learning all the complex cockpit instruments. Most do so because of a passion for flying rather than earnings potential.
Virgin Blue pilot Rob Hoey is a classic example. He first caught the aviation bug growing up in Papua new Guinea. “My parents were pioneers [missionaries] in the remote areas of PNG and we used to have to fly into tiny grass strips and around mountains in small aircraft,” he says.
After high school and having initially trained as a mechanic, Capt Hoey and his wife both poured their salaries into flight school for two years to allow him to fulfil his dream.
The first job was for NG Air, an Aboriginal-owned air service for remote communities, based in Alice Springs. Flying into Australian communities completely reliant on air services led him back to Papua and the job with Mission Aviation Fellowship that had inspired him so much when he was younger.
Family commitments brought Capt Hoey back to Australia, where he worked for several airlines before ending up at Virgin Blue in 2003. After working his way up from Cessna light aircraft through 19-seat turboprops and large Boeing 767 jets, he has recently transferred to the new sporty 76-seater Embraer jets on the Canberra to Sydney route, the handling of which has reignited his passion for flying, he says.
This is a fairly typical progression up aircraft size, so regional airlines are feeling the pinch worst as their pilots are snatched by larger jet operations. Some, like Queensland’s MacAir still attract pilots seeking a lifestyle change, says its managing director Kevin Gill. But others are suffering.
Sydney-based Regional Express (Rex) has taken matters into its own hands and is offering the first paid-for cadetships in years. “Rex recognises that the high cost of flying training is a major obstacle to many young people who desire to make a career in the sky” said Jim Davis, Rex chief of staff at the launch of the program.
Rex Spokeswoman Danielle Ross says the regional airline, which will pay for either half or all the training costs depending on merit, received over 1000 applications for the first intake of 20 places, with “the brightest academically,” selected.
For others wanting to be a pilot, the gold standard is still the Qantas cadet pilot program, despite being entirely self-funded with no guarantee of a job. But the airline has partnerships with Swinburne University of Technology in Melbourne and Brisbane’s Griffith University to combine practical flying training with theory, making the courses eligible for federal higher education loan programmes. An aeronautical degree like this also equips candidates better for the redundancies the aviation industry periodically experiences. Despite the $120,000 price tag the Qantas scheme is inundated with applicants, chiefly because its pay rates are among the best in the industry. But Qantas is also establishing a training college that could produce 300 new pilots every year, benefiting other airlines as well.
Most pilots will still follow their hearts and the advice of aviator and entrepreneur Dick Smith, whose advice to wannabe pilots is to “head to the Northern Territory, work in a hangar for nothing and eventually you will be noticed and be able to get your [flight] hours up.” Not quite DiCaprio territory.
At present MyCareer articles do not have direct web links. I would be happy to redirect to SMH.com.au or TheAge.com.au once they do.
Sunday, January 20, 2008
Some enchanted island
Crisis, what crisis? Justin Wastnage finds new trends and an optimistic outlook in post-coup Fiji.
Kini looked crestfallen. This man mountain, a former national rugby representative, had just been rebuffed. He'd offered me a ticket to the grand final of the national rugby championship, where his side was defending the cup, and I had turned him down because I was having a spa treatment.
I'm not usually the spa treatment kind of bloke, something Kini may have picked up on as he drove me around Fiji's main island, Viti Levu, so that I could get a sense of post-coup Fiji. Kini and I had chatted about the World Cup and Fiji's prospects and had stopped to take photos of the handmade sugarcane rugby posts the local children use to practise penalty kicks.
We had even been in a minor James Bond-esque scrape, when we were found by sinister French heavies after having breached the fence around the country's $34million wind farm, days before its official opening by coup leader Commodore Voreque "Frank" Bainimarama.
Kini was understandably confused at my priorities as I explained to him that I had booked myself a Fijian body polish and facial at 4pm, the exact time of kick-off at the Lawaqa Park stadium. We drove back to the hotel in silence.
Read the full article here at SMH.com.au
Wednesday, October 24, 2007
Be your own travel agent: tips for saving online
Still think it's cheaper to book flights and accommodation separately on the net? Not so, says Danielle Veldre. With a little bit of savvy, travellers can beat travel agents at their own game and create their own holiday packages online.
The birth of the Internet had the travel industry worried. If people could book their own flights and accommodation online, what role did the travel agent serve, and would it become an entirely redundant one?
Judging by the number of travel agency storefronts in any local shopping mall around Australia, though, it's obvious there is still plenty of demand for the human touch that agents provide.
But dynamic packaging just might be the killer app which makes life difficult for the traditional travel agent.
Right now in Australia, consumers can book their flights directly with an airline or one of the companies which offer comparisons between airlines. And people might also book their accommodation online, separate to their flights.
What dynamic packaging allows people to do is combine flights, accommodation, tours and activities on the fly to create a whole holiday package online. Just like you would in a travel agency.
Katrina Richardson, marketing manager of online travel agent Expedia.com.au, says "Dynamic packaging on Expedia enables consumers to build a holiday tailored to their needs and save money".
She says dynamic packaging gives people greater flexibility and freedom to choose the flight, the hotel, and car that forms their holiday.
"By booking these components together the consumer saves money and our pages will actually show them how much they've saved," she says.
If you were to book your flights and accommodation and car hire separately, you might get a special on a flight, but dynamic packaging gives you the chance to take advantage of deals the online travel company has made with its suppliers and which wouldn't be offered to the general public.
Richardson uses the example of a holiday for two adults for travel dates between February 4 and February 8 next year.
From Sydney to Fiji staying at the Outrigger on the Lagoon would cost an average of $1006 per person using an online package. But booking flights and accommodation separately would cost around $1087 per person. That's a saving of more than 7.5 percent.
A Perth to London trip on the same dates, staying at the Grand at Trafalgar Square would cost an average of $2584 per person using an online package. But booking flights and accommodation separately would cost around $2736 per person. That's a saving of 5.6 percent.
You'd think massive Internet savings would be an immediate hit with holidaymakers. But it's been a relatively slow start for dynamic packaging in the Australian market, whereas it has been popular in the US and UK for some time.
The way dynamic packaging works overseas is that the online companies keep all their data on you, with the idea that each time you go back you get a bigger discount. They also learn your preferences from your bookings and offer suitable options based on your previous choices.
Justin Wastnage, news editor of industry magazine Travel Weekly, says a number of factors have caused Australia to be slower on the uptake of dynamic packaging.
"It's very difficult to get people to book a hotel at the same time as a flight. They disjoint the transaction in their own heads," Wastnage says. "And people don't like having to make the choice right away."
He says another reason for the late take up of dynamic packaging is that the technology hasn't been available to make it a reality, including the fact that broadband speeds in Australia are much lower than comparable countries around the world.
A further complicating factor is that tour providers and hotels don't have all their products online, which makes getting the best deals difficult.
Wastnage also says there are really only a few companies, such as Expedia, which offer "true" dynamic packaging, rather than just booking hotels at the same time as you book a flight. Qantas Holidays is bundling flights and accommodation, as is lastminute.com.au, and Webjet is also dipping its toe into the dynamic packaging waters.
If the rest of the world is anything to go by, however, it shouldn't be long before Australians are cottoning on to the savings online packages can bring them.
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