Latviski English По-русски
Friday 19.10.2018 | Name days: Drosma, Drosmis, Elīna

airBaltic: weakness in Europe will pressurize travel

(No Ratings Yet)

Despite the forecast easing of the oil price, fuel remains the largest single cost item that incentives airlines to upgrade their fleets with the all-new or re-engined jet and turboprop aircraft.

Weakness in Europe to pressurize travel. With the lingering debt challenges and continued austerity measures, the European economy is likely to continue to be challenging. For the aviation industry it means weak consumer confidence and also corporate travel budgets under constant review, where critical-only business trips are authorised. The response from airlines to these challenges will be further efficiency gains through consolidation and restructuring to keep ticket prices low, and offering tailored products – low cost airlines will upgrade their service to appeal to the corporate traveller (e.g. assigned seats, more flexibility), while more traditional, hybrid and niche airlines will continue to diversify their offering, to include affordable and personalised travel products, based on individual needs, said airBaltic Corporate Communication Vice President Janis Vanags.

Furthermore, to insure against the potential dilution in corporate/business travel, airlines will focus on leisure destinations this summer.

Ancillary revenues set to soar. Airlines acting as travel megastores and selling everything from luggage allowance and car rental to insurance, sunglasses and lasagne have changed the fundamentals of the business. Ancillary revenues are critical for financial viability of many airlines around the world as they offset cost increases elsewhere; furthermore, they are behind a better and fairer service – passengers travelling light are not forced to subsidize the luggage of heavy packers, if check-in luggage fee is charged separately from the flight ticket, and other products (tablet computers for in-flight entertainment, WiFi internet, beverages, insurance, special meals, flowers) tend to have a better value-for-money, if offered for a fee to customers. In 2013, airlines will offer a new range of ancillary products from personal airport check-in, hand luggage to fancy devices for in-flight entertainment, content for your own device, as well as various eye-catching new experiments to explore the sales potential of innovative future offerings.

Personalisation to become an industry standard. With tens of flight-related and hundreds of ancillary products available from airline websites and on-board, personalisation of service is not new to the airline industry. However, personalisation options have so far been largely limited to airline websites. With International Air Transport Association (IATA) currently developing new standards enabling airlines to offer their full product options also through other channels, including travel agencies, travel personalisation is set to become a new norm in the industry, where every customer can tailor the service to his/her needs, explains the airline.

Green flying defines the future. Despite the postponement of the EU ETS until a global solution is agreed, climate change policy remains a potential financial threat. Additionally, as government finances in Europe are worsening, airlines may become targets for new “green” taxes that merely fill the state coffers at the expense of air travellers. This, coupled with the high oil price, stimulates airlines to increasingly practice green flying. In 2013, we will see green flying initiatives from biofuels to state-of-the art navigation procedures and infrastructure, that aim to reduce flying time and circuitous routings, thus saving fuel.


Leave a reply

Latvijas Radio predicts to have 35.7% of radio market in the near future

In the next five years Latvijas Radio expects to own 35.7% of the radio market. Additionally, it is also expected that the audience listening over the internet and social media will increase significantly. «Eight out of ten listeners completely trust the content reported by public media,» as reported by Latvijas Radio representative Ieva Aile.

Producer price level in Latvian industry down 5%

Compared to August, level of producer prices in the Latvian industry fell by 0.4 % in September 2018. Level of prices of products sold on the domestic market reduced by 0.7 %, but of exported products – by 0.2 %.

ABLV Bank successfully pays 69% of all guaranteed remuneration amount

The liquidated ABLV Bank has repaid clients EUR 328.66 million, which is 69% of the guaranteed remuneration amount, as confirmed by Citadele Bank’s corporate communications manager Ieva Prauliņa.

CEC to approve and announce the final 13th Saeima election results

On Friday, 19 October, the Central Election Commission will organize a meeting, during which it is planned to approve the final results of 13th Saeima elections and announce deputies elected to the parliament, as reported by CEC representative Kristīne Bērziņa.

Corruption watchdog asked to look into Ventspils City Council’s and Ventspils nafta termināls’ EUR 2.5 million deal

Latvia’s State Audit has asked Finance Ministry and Corruption Prevention and Combating Bureau to investigate the deal worth EUR 2.5 million between SIA Ventspils nafta terminals and Ventspils City Council, as noted in the report from State Audit’s inspection of the 2017 report on state and municipal budgets’ completion.

EU in favour of using sanctions against cyber-attacks, chemical weapons' threats

The member states of the European Union have in this week's summit decided to implement sanctions over threats of chemical weapons and expressed readiness to implement sanctions against cyber-attacks.

Canadian cannabis shops face shortages on 2nd day of legalisation

Cannabis stores in Canada have experienced shortages on the second day since the legalisation of recreational cannabis, as the demand is much higher than the supply of the drug.

Latvian parties’ talks with the president fail to outline a prime minister candidate

Parties that met with Latvian President Raimonds Vējonis on Thursday, 18 October, failed to name prime minister candidates they would support. Nevertheless, parties did confirm the desire to form as wide a coalition as possible by continuing talks with all parties except Harmony.

Putin: People in ex-Soviet Republics had more opportunities during USSR

Russia's President Vladimir Putin has asserted that people in Russia's neighbouring countries, once under Soviet occupation, regretted the end of the Union of Soviet Socialist Republics.

Autumn-like weather to end October’s unusually warm period

Soon enough, the warm weather that was present throughout this week and most of October will be replaced be colder weather. Air temperature will drop considerably at the end of the week. Wind will pick up in strength at the beginning of next week, as reported by Latvia’s Environment, Geology and Meteorology Centre.

Merkel finds Brexit agreement still doable, but time running out

German Chancellor Angela Merkel evaluated after this week's summit of the European Union, that there is not much time left for an agreement on the UK leaving the bloc, but it a deal should still be realistically attainable.

Lithuania opposition MP: «The ruling majority muddles through a «foxy» budget»

For the fifth consecutive year, Lithuania’s new budget, now for 2019, is described as «record» due to the size of surplus and the hefty allocations to education, health care, innovations and reduction of social inequality.

Majority of Latvian residents believe the government does not respect their opinion

The majority of Latvian residents are convinced their government does not respect society’s opinion on different matters, according to results of a survey by SKDS.

Minister: results of European Council talks on Brexit are not surprising

The fact that talks organized by the European Council regarding Britain’s exit and conditions have concluded with no real progress, is nothing surprising, says Latvia’s Foreign Affairs Minister Edgars Rinkēvičs.

After Crimea college shooting, authorities look for accomplice

After a school in Russian-annexed Crimea suffered a shooting and explosive attack, with 20 people killed, the Russian occupation authorities have stated that a search is on for a possible accomplice to the attacker.

Number of newborns continues to decline in Latvia

The number of births registered over the first nine months of 2018 is 1,267 children or 8 % smaller than that registered in the respective period of 2017.

State Audit finds it difficult to follow use of funding for Latvia’s Centenary events

According to Latvian State Audit, it is hard to follow the use of funding intended for Latvia’s Centenary events.

EU and Britain agree to disagree, maybe for several months

After the European Union's summit decided that not enough progress has been achieved in Brexit talks to hold a separate Brexit summit in November, London has expressed readiness to consider the prolonging of the divorce transition period for some months.

Anti-Money Laundering Service to be supervised by Latvia’s Cabinet of Ministers

On Thursday, 18 October, members of the Saeima supported amendments to the Law on the Prevention of Money Laundering and Terrorism Financing in the first reading.

Latvian Saeima conceptually approves new Law on the Handling of Weapons

On Thursday, 18 October, members of the Latvian Saeima conceptually supported the project for a new Law on the Handling of Weapons. The legislative draft provides new classifications of arms and munitions, as well as coordination with EU regulations on weapons handling, as reported by Saeima’s press-service.

Latvia’s smallest 10th grade class has only three pupils

Latvia’s smallest 10th grade class has only three pupils, says Education and Science Ministry’s Education Department director Līga Buceniece.

Clocks to be turned one hour back on 28 October

28 October marks the end of daylight savings time in Latvia and elsewhere in the world. This is when all clocks are to be turned one hour back, Latvian Economy Ministry reminds.

Political parties in Latvia reject New Conservative Party’s proposed government model

None of the political parties currently engaged in government-formation talks in Latvia have agreed to the government model offered by the New Conservative Party.

Early voting option to be provided for all election sites during EP elections

On Wednesday, 17 October, Saeima’s Public Administration and Local Government Committee supported submission of amendments to European Parliament Election Law to the Saeima for the final reading.

Opinion: Attīstībai/Par! party would very much like to work with NCP

Attīstībai/Par! would very much like to work with New Conservative Party in the new government in Latvia given the opportunity, as journalists were told by AP co-chairman Daniels Pavļuts.

Who would be the best choice for the next prime minister of Latvia?

View Results

Loading ... Loading ...

Polls Archive

Category feed: Feed: