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Kazakh air travel market growth slows

Air Astana and SCAT Airlines, twin leaders of Kazakhstan’s air travel market, added five aircraft last year (ATO.ru)

Kazakhstan’s airports handled 14 million passengers in 2018, the country’s Civil Aviation Committee reports, pointing out that the figure is level with that of the previous year. In the same period, the number of transfer passengers in the total traffic increased by 40 per cent.

Compared to 2017’s high performance – inspired by the Expo world fair held in Astana, which engendered a 23.3 per cent growth in traffic – last year Kazakh airlines saw their traffic grow by 6.8 per cent to 7.9 million passengers, which is still considered an encouraging development, the authorities note.

The regulators consider that the greatest potential lies in developing the central Asian country’s international transfer business. “The transportation of transfer passengers is showing unprecedented growth,” reveals the committee. In 2018 some 900,000 transfer passengers travelled through Kazakhstan, a number that is expected to reach 1.6 million in 2020, according to Zhenis Kasymbek the nation’s minister for industry and infrastructure development, who also points out that less than a decade ago, in 2010, the number of transit passengers barely totalled 20,000.

A three-day visa grace period for Chinese citizens travelling through Kazakhstan – an incentive that has been in effect for a few years and was last year extended to citizens of India – may have had a significant positive effect on the transfer numbers. That visa-friendly regime has been prolonged to this year as well.

According to Russian Aviation Insider’s data, in 2018 Kazakhstan’s two major airports at Almaty and Astana collectively handled some 10.2 million passengers, with their share in the country’s total air travel market rising to 73 per cent.

Sustainable development is also being seen in the country’s international air travel sector, the Civil Aviation Committee report continues. Last year the country’s airlines launched 14 new international flights: from Astana to Russia’s Kazan, Tyumen, Chelyabinsk, Krasnodar, Tomsk and Sochi; to Dushanbe in Tajikistan, Vilnius in Lithuania and Helsinki in Finland: and also from Almaty to Riga (Latvia) and Krasnoyarsk (Russia), between Pavlodar and Novosibirsk (Russia), Atyrau and Frankfurt (Germany) and Kzyl-Orda and Moscow (Russia).

“From 73 in 2013 the number of international routes increased to 96 in 2018. There are 23 foreign airlines offering scheduled service to Kazakhstan,” the report reads.

Last year Zhenis Kazymbek projected that, by 2020, the annual traffic of Kazakh carriers could collectively reach 10 million passengers. For this to become reality, this year’s traffic improvement should add at least two million to 2018’s results and, to facilitate reaching this goal, national carrier Air Astana has created a low-cost carrier (LLC) subsidiary called Fly Arystan, with its launch flights expected in May.

The local authorities are counting on the new LCC introducing at least one million passengers in the first year of its operations and it is felt that the new service will attract people who otherwise could not afford air travel.

Last year demonstrated that the Kazakh population’s aviation mobility remains quite low, as the total traffic of the country’s airports is still less than that of its population of 18.4 million people. In 2018 the industry was also plagued by a combination of the devaluation of the tenge national currency, spiking fuel costs and increased airport handling fees.

After air travel chaos, lawmakers propose funding FAA in future shutdowns

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Two House lawmakers proposed legislation on Friday that would ensure federal aviation personnel such as air traffic controllers and airline safety inspectors would be paid in a government shutdown, as another funding deadline looms next week.

The proposal came two weeks after a shortage of air traffic controllers, who were working unpaid during the partial government shutdown last month, delayed flights throughout the eastern U.S. Lawmakers and the Trump administration reached a deal to temporarily fund the government shortly after the air travel disruption.

Lawmakers now have until Feb. 15 to come up with a border security deal or risk another shutdown. The aviation industry had been among the most vocal against the 35-day shutdown, the longest ever, as passengers faced long lines at some of the country’s busiest airports due to absences of unpaid Transportation Security Administration screeners. Airlines also faced approval delays for new routes and aircraft because federal safety inspectors were furloughed.

The bill was introduced by Peter DeFazio, an Oregon Democrat and chairman of the House Committee on Transportation and Infrastructure, and the aviation subcommittee chair, Rick Larsen, a Democrat from Washington. It proposes using a special fund to continue to pay FAA personnel, including the country’s roughly 14,000 air traffic controllers.

The funding wouldn’t apply to TSA officers because they work under the Department of Homeland Security, not the FAA.

Using the Airport and Airway Trust Fund, which is fed by taxes from airline tickets, jet fuel and cargo, would “ensure essential personnel who work under immensely stressful situations continue to get paid, and that the largest, busiest and most complex airspace system in the world remains safe for passengers and employees,” Larsen said in a statement.

Paul Rinaldi, president of the National Air Traffic Controllers Association, the union that represents air traffic controllers, supported the bill. He said that controllers “experienced financial stress due to a lack of income, which led to distractions and significant fatigue for people who need to be 100 percent focused on safety.”

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Freshman Congresswoman Alexandria Ocasio-Cortez introduced her Green New Deal this week. If you thought the radical left couldn’t get any more radical—think again. Within a 10-year time frame, Ocasio-Cortez’s new deal would see the abolishment of air travel, the end of the combustion engine, and the end of meat consumption. At first glance, the deal reads like a parody. But she’s serious. And the shocking thing is, nearly all of the potential 2020 Democratic candidates back the Green New Deal. On the first half of today’s show, we take a closer look at the radical left’s utopian fantasy.

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United Airlines selects GoJet as operator of CRJ550

United Airlines is planning to introduce 50 of Bombardier’s new CRJ550 aircraft to its regional fleet and has selected its regional partner GoJet to operate the new aircraft.

United plans to begin introducing the aircraft to fleet this year, subject to government certification, and has executed a letter of agreement with GoJet for a deal to operate the aircraft for 10 years, subject to agreement on final terms and conditions.

The agreement will go into effect with the introduction of the first CRJ550, with planned entry into service by the summer of 2019. GoJet will operate the CRJ550 on select routes from Chicago, O’Hare, followed by Newark/New York.

The plan is for the airline to have 25 in service by year-end and all 50 aircraft in service by the summer of 2020.

“We are proud to be the provider chosen to fly this newly launched premium product for United Airlines,” said Richard Leach, president and CEO of GoJet Airlines. “Being part of a new product launch is very exciting for us and solidifies our importance as a strategic service provider in the regional airline marketplace, while providing long-term stability and growth for our company and our employees.”

United said the new aircraft will offer a state-of-the-art interior featuring LED lighting, a self-serve beverage and snack station for customers in the premium cabin, Wi-Fi and more overall legroom per seat than other 50-seat aircraft flown by US carriers.

The CRJ550 will also feature four storage closets for carry-on bags, the airline said this also makes the CRJ550 the only regional jet where customers will not need to routinely gate check their bags.

United’s aircraft will have a two-cabin configuration and will feature 10 United First seats; 20 Economy Plus seats and 20 Economy seats. United said the CRJ550 aircraft will eventually replace existing single-cabin 50-seat aircraft and will bring a higher percentage of two-cabin departures to smaller cities across the carrier’s network.

The announcement forms part of United’s plan to “revolutionise the regional flying experience”. The airline is also adding more than 1,600 United Polaris business class and United First seats to nearly 250 international and domestic aircraft.

Image: United Airlines introduces the Bombardier CRJ550

United Airlines Adds More Service at Huntsville International Airport

United Airlines has announced more service options beginning this year for passengers traveling direct from Huntsville, Alabama to Denver International Airport (DEN). Passengers will enjoy two classes of service on regional Wi-Fi equipped aircraft. United’s increased nonstop service to Denver starts February 14, 2019.

“We are thrilled that United made the decision to add service to the Huntsville market and we know that our customers will appreciate more options and will utilize this service,” stated Dr. Carl J. Gessler, Jr., Chairman, Board of Directors, Huntsville International Airport.

While officials at Huntsville International Airport recognize the tremendous benefits of the added service, they are quick to point out that continued growth will require the support of the community. According to Rick Tucker, Executive Director, Huntsville International Airport, “These additions are another step to provide all of the citizens of the Tennessee Valley more air travel options and phenomenal savings. United sees potential in Huntsville’s market, and we are glad they chose to expand their presence in HSV. This is great news and if the business community and our residents support our local airport we will all enjoy more air travel options with guaranteed lower fares.”

For more information or to make reservations, visit united.com. Reservations can also be made at no additional charge using the Huntsville Hot Ticket Hot Line service by calling 256-258-1944 Monday – Friday from 9 a.m. to 5 p.m. 

Expedia profit falls, faces legal fight with United Airlines

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Expedia has just released its Airplane Etiquette report that details which flight habits are the most infuriating to other passengers. Tony Spitz has the details.
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BELLEVUE, Wash. (AP) — Expedia Group Inc. boosted fourth-quarter revenue by selling more hotel rooms and airline tickets, but write-downs pushed profit down 69 percent, to $17 million.

The results still beat expectations for the online travel agency.

The shares jumped $9.13, or 7 percent, to $137 in extended trading Thursday after losing a penny in the regular session. At Thursday’s close, the stock had gained 13.5 percent since the beginning of the year, while the Standard Poor’s 500 index rose nearly 9 percent.

Expedia said that fourth-quarter adjusted profit was $1.18 per share, topping the $1.07 average forecast of 11 analysts surveyed by Zacks Investment Research.

Revenue rose 10 percent to $2.56 billion. Eleven analysts surveyed by Zacks expected $2.54 billion.

About two-thirds of Expedia sales come from booking lodging on sites including Hotels.com, and that revenue grew 10 percent. Growth in the vacation-rental segment HomeAway — a competitor to Airbnb — slowed to 20 percent in the fourth quarter but grew 29 percent for the full year.

National Strike in Belgium to Cause Major Air Travel Disruptions

A national strike in Belgium is set to disrupt air travel and public transport. The strike is set to take place next Wednesday, February 13, officially running from 10 p.m. the night before to 10 p.m. the night of February 13 (all times local). 

Brussels Airlines reports that it expects major flight disruptions on February 13. The airline had already cancelled 28 out of the total 222 flights planned for that day as of last week; however, as more information on the scale of the strike has become available, the airline has decided to cancel an additional 122 flights. That is a total of 68 percent of the airline’s flights canceled, affecting 11,288 passengers. 

Brussels Airlines says that passengers with canceled flights who no longer wish to travel can request a full refund of their ticket. Refunds can be requested online on www.brusselsairlines.com/refund. Rebookings are also available via the airline’s call center at 32-2-723-2362. 

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The list of all cancelled Brussels Airlines flights is available here. 

According to the Brussels Times, unions are holding the strike to protest a breakdown in talks involving wages within the Group of Ten, an organization comprised of unions and managers. While the breakdown in talks only affects private sector unions, public sector unions – including those representing rail workers – have joined the strike call, which could lead to disruptions in public transportation on February 13. The SNCB rail service is legally obligated to hold a minimum service; however, other areas of public transportation could experience even more severe disruptions. 

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Green New Deal: Ocasio-Cortez aims to make air travel obsolete, aid those ‘unwilling’ to work

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Rep. Alexandria Ocasio-Cortez responds to criticism from Wall Street Journal columnist Peggy Noonan

Rep. Alexandria Ocasio-Cortez responds to criticism from Wall Street Journal columnist Peggy Noonan following the State of the Union.

In what may be the most far-reaching proposal to ever be considered in Congress, Rep. Alexandria Ocasio-Cortez, D-N.Y., unveiled her “Green New Deal” on Thursday — a government-led overhaul of virtually every aspect of American life that would guarantee a host of taxpayer-covered benefits for all and phase out fossil fuels.

Along the way, her office says the plan would aim to make air travel obsolete, upgrade or replace every building in America to ensure energy efficiency and give economic security even to those “unwilling” to work.

“Today is the day that we truly embark on a comprehensive agenda of economic, social and racial justice in the United States of America,” she said alongside Sen. Ed Markey, D-Mass., and other lawmakers outside the Capitol. “That’s what this agenda is all about.”

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The plan, which calls for a massive package of big-government proposals including health care for all, quickly picked up the backing of major 2020 Democratic presidential hopefuls including Sens. Kamala Harris, D-Calif., Elizabeth Warren, D-Mass., and Cory Booker, D-N.J. — who all co-sponsored the resolution.

“Our history is a testimony to the achievement of what some think is impossible — we must take bold action now,” Booker tweeted.

While the resolution itself would do very little because it is non-binding, it is the first time the policy proposal has been formally outlined in Congress. The resolution says “a new national social, industrial and economic mobilization on a scale not seen since World War II and the New Deal” is an opportunity to tackle systemic injustices toward minority groups, create millions of high-wage jobs and “provide unprecedented levels of prosperity and economic security for all people of the United States.”

Its proposals include “net-zero greenhouse gas emissions through a fair and just transition for all communities and workers;” job creation; infrastructure investment; guarantees of clean water, healthy food and sustainable environment; and a curiously undefined “access to nature.”

Beyond those broad proposals, the plan and accompanying documents from Ocasio-Cortez include a range of far-fetched goals — and drew swift scorn from Republicans and other critics. The Republican National Committee dubbed it a “socialist wish list” that would kill at least 1 million jobs and disrupt global trade — while costing trillions.

The resolution, for instance, includes a proposal to “upgrade all existing buildings” in the country in order to achieve energy efficiency, safety, affordability, durability and comfort.

An accompanying FAQ, released by Ocasio-Cortez’s office and obtained by NPR, goes even further, calling to “upgrade or replace every building in US for state-of-the-art energy efficiency.” A second similar FAQ on her website echoed some of those prescriptions though was later removed.

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The resolution also backs the concept of high-speed rail as a proposal to reduce carbon emissions — but the FAQ goes so far as to urge that development “at a scale where air travel stops becoming necessary.”

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It also promises “economic security for all who are unable or unwilling to work.” What constitutes economic security is not clear, but the plan does call for programs including a federal job guarantee, universal health care and “affordable, safe, and adequate housing.”

The FAQ also notes that it has set a goal of net-zero, rather than zero, emissions in 10 years “because we aren’t sure that we’ll be able to get rid of farting cows and airplanes that fast.”

However, the push is likely to see resistance not only from Republicans, but even some Democrats. Sen. Mazie Hirono, D-Hawaii, was asked about the plan to replace planes with high-speed rail, and did not seem impressed.

“That would be pretty hard for Hawaii,” she laughed.

On Wednesday, House Speaker Nancy Pelosi appeared to dismiss the plan.

“It will be one of several or maybe many suggestions that we receive,” Pelosi told Politico on Wednesday. “The green dream or whatever they call it, nobody knows what it is, but they’re for it right?”

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Pelosi took a more conciliatory tone on Thursday, saying: “Quite frankly, I haven’t seen it, but I do know it’s enthusiastic and we welcome all the enthusiasm that is out there.”

But in the press conference outside the Capitol Thursday, Ocasio-Cortez said she didn’t mind the phrase “green dream.”

“I don’t consider that to be a dismissive term,” she said. It’s a great term.”

Fox News’ Jason Donner contributed to this report.

Expedia posts $11B in 2018 revenue as travel giant gears up for legal battle with United Airlines

Expedia CEO Mark Okerstrom. (GeekWire Photo / Todd Bishop)

Expedia closed out 2018 by besting Wall Street expectations for revenue while sharply increasing profits and the amount people are spending on the platform.

Revenue: Expedia reported $2.56 billion in revenue in the fourth quarter, bringing the 2018 total to $11.2 billion. Those figures just beat analyst expectations and represent growth of 10 and 12 percent respectively.

Profits: Expedia posted net profits of $191 million in the fourth quarter, or $1.24 per share, an increase of 45 percent over a year ago, well ahead of analyst expectations of $1.08 per share. For the year, Expedia brought in $902 million in net profits, up 33 percent over 2017.

Gross bookings: This figure is an important one for Expedia as it represents the total amount spent by customers booking rooms, flights and other travel across Expedia’s brands. In the fourth quarter, gross bookings rose 11 percent year-over-year to $21.96 billion. For all of 2018, gross bookings were $99.73 billion, a 13 percent rise over 2017.

Expedia stock is up slightly in after-hours trading.

Expedia’s latest financial report comes the same week that a federal court in New York unsealed a lawsuit brought by the travel giant against United Airlines. The lawsuit alleges United is locking Expedia out of fare data as part of a contract dispute.

If the dispute continues, Expedia said in the suit that it will no longer be able to offer United Flights on its platforms starting Sept. 30. Expedia said in the lawsuit that customers have already reserved more than 2,000 seats on United flights departing after Sept. 30.

Expedia is alleging breach of contract and asking the court to bar United from withholding fare data.

Other Highlights

  • Expedia now has more than 1 million lodging properties on its platform, with 200,000 of those added in 2018 alone. HomeAway, the Airbnb competitor that Expedia acquired in 2015 for $3.9 billion, is responsible for 370,000 of those 1 million total properties on the platform.
  • Expedia has a big year ahead as it gets set to move into a new Seattle waterfront headquarters. Set to open this fall, the campus has room for 5,000 people, giving it some growth potential beyond its current 4,500-person workforce. Expedia says the new campus will feature “biophilic design,” which involves connecting people and nature to increase physical and mental well-being through views of the water, mountains and open office spaces with plenty of natural light.