Travel News Weekly - 19 May 2010

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SouTHERN AFRiCA’S TRAVEL NEWS WEEKLY

May 19 2010 I No. 2107

INSIDE

TRAVEL NEWS WEEKLY

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NEWS

AirLink vindicATed CAA finds George runway to blame

rEporT

fEaTurE

THe LATesT neWs FroM indABA 2010

inTo AFricA

Travel continues to boom

Locals out in force

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Airfares set to soar after the ash crisis? sue lewitton

University of Leeds, who says the full effects of volcanic ash on the RAVELLERS may pay up to 5,2% aviation industry remain to be seen. more this year for a European He says the cost of maintenance air ticket as a direct result of of aircraft is likely to increase as losses incurred by airlines during the a direct result of the ash cloud as volcanic ash crisis. This is according various components will require to a study commissioned by Kelkoo. more frequent inspection, including com, a European-based e-commerce the air-conditioning system. “As site, conducted by the Centre for planes taxi round airports, the Economics and Business Research. air-conditioning systems suck up It’s estimated that the losses dirt, which then clogs up the heat incurred by European airlines as a exchangers. Sometimes dirt levels result of the ash crisis sit at around are so high, systems have to be US$1,7bn (R13bn) and although the changed after just three to four European Commission is looking months, whereas they’re expected to at ways of providing relief, CEBR last around 18 months. The planes predicts that up to two-thirds of the will now be sucking up ash as well costs will be borne by the airlines. which will put these systems under “As a consequence, it is expected very high stress.” that this may lead to an increase in Stephen adds: “As a result, the airfares as airlines try to mitigate the cost of engineering budgets is going impact on their already tight profit to rise significantly in the coming margins,” says the CEBR report. months and such cost increases will Bruce Fair, md of Kelkoo UK, says need to be passed on to the end many airlines were already struggling user, unless the carrier has been prior to the crisis as a result very prudent with fuel hedging.” of soaring oil prices, increasing But some experts believe the competition and falling demand. competitive aviation market will force “Based on the impact of oil prices, airlines to keep fares down. Paul economic growth and inflation on Charles, a former airline executive air travel, it is expected that cost with Virgin Atlantic and now crisis pressures and constraint profitability management expert at Lewis will lead to an average rise in fares PR, says: “Airlines would rather of 5,2% in 2010 across Europe, focus their attention on obtaining increasing to 11,5% by 2012,” compensation from governments for says Bruce. the ash cloud and tightening their Airlines may also face additional crisis procedures in case there is unforeseen operational costs in the further disruption. That way, they can 21317 Airlink Nels predicts 30x206 7/9/08 3:02 PMminimise Page 1 any future costs created by coming months, Stephen Wright, an aviation lecturer at the further cancellations and delays.” n

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Tune in with First car rental Over the World Cup, anyone renting a vehicle from the newly upgraded First Car Rental branch at Cape Town International Airport will get free rental of a Tourism Radio device valued at approximately R60 per day. Tourism Radio is a GPS-driven information station for travellers. It tells you all about the area you are travelling through in real-time and draws your attention to prominent landmarks and highlights as you approach them so you don’t miss anything on your journey. Exploring the South African countryside is First Car Rental’s regional manager of Gauteng, Adelle Nel Photo: Tijana Huysamen

XL snaps up more HWTs staff rePorter THE XL Group says its selective growth strategy is paying off with several prominent agencies having joined the group recently. The group’s membership, says coo, Rod Rutter, has steadily increased since the beginning of 2010. “Most recently, the largest Harvey World C M Ypreviously CM MY CY Travel franchise,

situated in Woodmead, has joined us. Now rebranded as XL Nexus Travel, the change from Harvey World Travel to XL coincides with the relocation of the business to prestigious premises on the corner of Engelwold Drive and Oxford Road in Saxonwold.” Sailesh Parbhu, md XL Nexus Travel, explains: CMY “The Kdecision was taken

to move to the XL Group as we had outgrown the Harvey World Travel model over the years. I am grateful to Harvey World Travel for contributing to the foundation phase of the company but we have grown so much that the company needed a fresh, new and different approach to business, and thus the XL Group To page 20


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