Wednesday, May 11, 2016


Bangladesh: Tourism sector must focus on MICE market Apr 09, 2016 DHAKA, Bangladesh - The tourism sector in Bangladesh should start working towards meetings, incentives, conventions and exhibitions, abbreviated as MICE, to give the largely untapped market a major boost, industry people said yesterday. “MICE is one of the most lucrative niches within tourism. Business people who travel to a country to attend a trade show or conference tend to spend far more than other travelers,” said Raquib Siddiqi, a travel writer, while presenting a keynote paper at a seminar. He spoke at a seminar “MICE Tourism in Bangladesh” at the Novoair Dhaka Travel Mart 2016 at Sonargaon Hotel in Dhaka yesterday. Worldwide, at least 50 million trips are taken each year for MICE purposes. The global MICE sector is worth about $30 billion annually, according to Siddiqi. “Unfortunately in Bangladesh, the MICE market has so far remained almost totally unexplored,” he said, although Bangladesh has workable infrastructure and organising capabilities to hold international conventions, exhibitions and sporting events. Abdul Muyeed Chowdhury, former managing director of Biman Bangladesh Airlines, said foreigners find it difficult to obtain visas to come to Bangladesh compared to many other countries. “We have to simplify visa processing. In case of MICE, visa requirement could even be removed,” said Chowdhury. Bangladesh will have to start off now as it might take up to five years to give MICE a good shape. SAM Showket Hossain, a management consultant, said if service providers can attract corporate bodies in Bangladesh, their MICE sales would double. He, however, said the rent for convention centres and hotels have to be reduced. Abdul Matlub Ahmad, president of the Federation of Bangladesh Chambers of Commerce and Industry, urged all companies under the tourism and hospitality sector to unite first and come under one umbrella. “You also need to stop looking at the government. The government can't grow tourism; it is the private sector that has done the job in other countries and the private sector of Bangladesh has to do so.” Hanif Zakaria, country manager of Etihad Bangladesh, said the Maldives and Sri Lanka have only waters and coconut trees, but they have utilized their resources and been able to attract a huge number of tourists. “On the other hand, we have huge resources, but we have not been able to do the same,” he said. Kazi Wahidul Alam, editor of the Bangladesh Monitor, said the government and the private sector should start working towards MICE. Mofizur rahman, managing director of Novoair, said MICE can help Bangladesh grow its tourism sector exponentially. The four-day international tourism fair began on Friday. The Bangladesh Monitor has organized the fair for the 13th time, in association with Novoair, the Bangladesh Tourism Board and Biman Bangladesh Airlines. Rashed Khan Menon, civil aviation and tourism minister, inaugurated the fair, while Syed Ahsan Hossain Kazi, general manager of Biman Bangladesh Airlines, and Bhuban Chandra Biswas, director of Bangladesh Tourism Board, were present on the occasion. Daljit Singh, adviser to the tourism ministry of Malaysia, and Isra Stapanaseth, director of the Tourism Authority of Thailand, were also present. About 50 companies such as national tourism organizations, airlines, tour operators, hotels, resorts, and healthcare service providers from a number of different countries, including Bangladesh, are taking part in the fair. The Nepal Tourism Board is taking part in the fair to promote a number of destinations of the Himalayan country. The board has brought in two private companies to sell their travel products, said Shradha Shrestha, senior officer of the Nepal Tourism Board. About 20,000 Bangladeshis visit Nepal every year, Shrestha said. All participants are offering discounts at the fair. One of them is Novoair which is offering 15 percent discounts on air tickets in its domestic routes and visa fee waiver in its lone international route Yangon, said Niladri Maharatan, its marketing manager. (source:eTurboNews)

Thursday, May 1, 2014

Survey: Majority of travelers satisfied with airport security

May 01, 2014 PLYMOUTH, MN - In the world of travel, airport security continues to be a hotly discussed topic on many levels, which is why Travel Leaders Group recently surveyed over 2,700 consumers throughout the United States to assess their overall satisfaction, gather feedback on how long it takes to get through airport security and obtain information on whether travelers view TSA PreCheck as helpful to the overall process. With regard to "airport security satisfaction," 87.5% indicate they are satisfied or neutral with today's security measures; however, nearly 62% of those polled can't identify whether the TSA PreCheck program has made any significant difference in wait times for security screenings. The survey includes responses from 2,719 consumers nationwide and was conducted by Travel Leaders Group – a $20 billion powerhouse in the travel industry – from April 6 to April 28, 2014. "Travelers today have become very adaptable in terms of airport security and what procedures they must comply with from airport to airport. That may help explain why such a high percentage of consumers polled are satisfied with – or perhaps even resigned to – what is required of them. In fact, when asked what one security measure they would like to eliminate, the second most common response was that they wouldn't eliminate any of the current requirements," stated Travel Leaders Group CEO Barry Liben. "Throughout all of the changes in procedures over the years, our travel agents across Travel Leaders Group have been educating and reminding travelers what they may encounter at airport security, in an effort to make their overall travel experiences better. While we do have a number of clients who are 'Known Travelers' through TSA PreCheck, our survey findings clearly indicate that the 'verdict is still out' as to whether that program has improved wait times at airports for a majority of American travelers." Here are the initial findings from the recent Travel Leaders Group "Consumer Travel Survey": - Airport Security Satisfaction: When asked, "What is your level of satisfaction with airport security today?" 87.5% indicated they are satisfied with or neutral about today's security measures which is up from 82.0% last year. The percentage of travelers expressing dissatisfaction with TSA is at its lowest level since Travel Leaders Group first began asking this question in 2010. 2014 2013 2012 2011 2010 Satisfied 64.2% 62.2% 66.2% 60.2% 72.9% Neither satisfied nor unsatisfied 23.3% 19.8% 16.8% 18.0% 13.6% Unsatisfied 12.5% 18.0% 17.0% 21.8% 13.5% - TSA PreCheck: When asked, "Has the TSA PreCheck program at U.S. airports made a significant difference in wait times for security screening?" the majority of those polled did not know if it has made a difference in wait times. Yes, I use it all the time 7.6% Yes, it's reduced wait times for regular screening 17.6% No 13.1% I don't know 61.7% Additional Statistics and Findings: - Overall Airport Security Wait Times: When asked, "With regard to how long it takes to get through airport security, are you..." 46.3% of consumers polled "Wish it was somewhat quicker," 39.6% are "OK with the amount of time it takes," and only 14.1% state they are "Frustrated by the amount of time it takes" to get through airport security. - Expedited Screening: It should also be noted that when asked, "Have you experienced 'expedited' screening at an airport in the last 12 months?" 60% of those polled said "No." - Eliminate One TSA Security Measure: With regard to TSA security screening at the airport, when asked, "Which of the following TSA security measures would you most like to eliminate?" the top responses were: "removing of shoes" (31.7%), "none, do not eliminate any security measures" (24.1%) and "limiting liquids in carry-on baggage" (18.2%). In 2013, shoe removal was also the top response with 27.9%. (Those airline passengers who qualify for TSA PreCheck do not need to remove shoes, computers or 1-quart bag carrying liquids.) - Electronics On During Takeoffs/Landings: Last fall the Federal Aviation Administration (FAA) announced it would allow electronic devices to remain "on" from gate to gate, in "airplane mode." When asked in Travel Leaders Group's recent survey, 39.8% of those polled said they are "in favor" of this change, 31.4% are "opposed to the change" and 28.8% did not know how they felt about the change. - Cell Phone Use Inflight: For the second year in a row, consumers were asked about cell phone use inflight; this year, an even greater percentage of those polled are opposed to the idea. Nearly 85% of those polled are against allowing passengers to make cell phone calls during flight. Here are the detailed responses: 2014 2013 I am opposed to it. 57.5% 47.9% I am in favor as long as it is not used for conversations. 27.1% 31.3% I am in favor of it. 5.8% 10.7% I don't know. 9.6% 10.1% - Airline Ticket Purchasing Decisions: When asked, "When purchasing airline tickets, which of these options would you most likely choose?" 56.6% indicate "Direct nonstop flight (in which you may or may not earn Frequent Flyer miles)," 29.1% indicate "Least expensive overall fare" and 14.3% would choose a "Flight which earns Frequent Flyer miles."(Source:www.eturbonews.com)

Monday, December 23, 2013

"Merry Christmas"

Friday, August 17, 2012

Mismanagement kills promise of new era, Biman now struggling to keep its nose up


_By Raquib Siddiqi Dhaka : The promise of a new era has gone out of sight_ behind ominous dark cloud of uncertainty. The operation of 40-year old Bi-man Bangla-desh Airlines Limited (Bi-man) _the national flag carrier of Bangladesh_ is now in disarray. Due to shortage of fund, shortage of aircraft as well as unreliable fleet, the national flag carrier is running on day to day basis and finding hard to keep its nose up. Mismanagement by non-professionals and unreliable fleet have been very much 'inseparable part' of Biman since its birth. Due to lack of effort in the desired direction, the national flag carrier is still stuck in quagmire of serious basic problems_ poor management, unreliable fleet and poor manpower being the three most important. The present situation is very much depressing in all aspects_ both financial and operational. In its struggling history, perhaps the current situation can be termed as most critical. Biman made a small amount of profit is fiscal year 2007-08. Thereafter, it is all down slide_ loss after loss. According to reports, it is now carrying a debt burden of Tk 2,000 million. The situation The airline is not in a position to take delivery of aircraft under repair and replace engines, due to extreme shortage of fund. This situation is resulting in shortage of aircraft and consequent disruption of flights. Owning a fleet which is dominated by old aircraft prone to frequent technical problems, the operation of Bi-man has beco-me very much vulnerable. The fleet of national flag carrier now consist of 13 aircraft of five types one B747, two B777-300ERs, two B737-800s, four DC-10-30s, two A310s and two F-28s. One B747 and two B737s are on lease. As of July 28, 2012 only seven of these aircraft-one B747, two B777-300ERs, two B737s, one DC-10-30 and one A310 are in operation. Two F-28 aircraft are permanently grounded and the rest are grounded with technical problems. Now, the two new B777-300ERs have become mainstay of Biman fleet. But these cannot be properly and profitably utilised due to prevailing situation. Technical problems of DC-10-30 and A310 aircraft have become regular and frequent. To ferry stranded passengers of around 200, Biman has no option but to use 419 capacity B777-300ER aircraft. This underload operation is resulting in much higher cost and heavy loss of revenue for Biman. The B747 in the fleet is one of the two aircraft leased for 2011 Hajj operation. After the Hajj, one was retained in the fleet to use in scheduled flight operation as temporary replacement. With higher cost of operation in addition to lease payment, operation of this aircraft is draining revenue of Biman. Biman has withdrawn operation from most of the domestic routes_ six in all_ on ground of heavy loss. There is also no suitable aircraft following grounding of all the two F-28s. It is now operating only on two feeder routes, Dhaka-Sylhet and Dhaka-Chittagong using Boeing B737 aircraft. The operation of B737 on very short domestic routes is considered as commercially unviable. At present the number of international destinations of Biman is 19. Five types of aircraft in the fleet also making crew-both cockpit and cabin-composition different and operation cost higher. Low product value For quite some time, the schedule regularity of Biman is very poor. According to a senior executive, it is hovering around only about 20 per cent. A pathetic situation indeed. The flight disruption has become so frequent that reliability of Biman has gone down to almost zero. Its existing bad image has taken further hit. Except in two B777-300ERs Biman cannot offer reliable as well as quality services. The airline is also not in a position to offer more frequency. At its own home base, Biman is facing highly uneven competition from almost all the other airlines including low cost ones, operating in Bangladesh market. With modern equipment, these airlines are offering reliable flights, better services and more frequencies to different destinations. Compared to the products being offered by foreign airlines, value of Biman's product is considerably low. No immediate solution With delivery date of 3rd and 4th B777-330ERs shifted to April 2014 instead of September 2013, there is no immediate solution to the fleet problem in slight. Biman failed to make pre-delivery payment of US$ 114 million for 3rd and 4th B777-300ER, so Boeing shifted the delivery by date by about six months. Under the circumstances, Biman has no alternative but to continue operate highly technically unsound DC-10-30 aircraft up to April 2014, though there was a decision to phase out the aircraft by September 30, 2007 due to frequent break down and increasing maintenance cost and leases B777 as replacement till delivery of the aircraft under order. The failure to replace DC-10-30s by B777s or suitable aircraft is primarily responsible creation of current critical situation for Biman. This failure also resulted in failure of Biman to restore all the suspended destinations, consolidate flight operation and expand. What has gone wrong? Not very long ago, Biman envisaged a bright new era with new fleet, new brand image and identity and new management. After turning Biman into Public Limited Company (PLC), during the rule of immediate past Care Taker Government, the first Board of Directors of Biman ordered 10 aircraft_ four Dreamliner B787s, four B777-200ERs and two B737s with option for equal number of aircraft, for modernisation of Biman fleet. Efforts to attract foreign assistance to re-structure the carrier and to recast management, to run the airline professionally, efficiently and commercially were made. The objective was to take Biman into a new era with new generation fleet, new corporate identity including a totally redesigned aircraft livery and company logo, to revitalise the brand image better as well as to reflect Biman's future direction. Following induction of elected government in 2009, the Board of Directors was totally recast with new chairman and members. It is unfortunate that earlier efforts to provide-- new identity, induct professional management and infuse skilled manpower-- to make Biman a modern and efficient airline were abandoned. Thus the bright prospect of the new eras dimmed considerably. Great set-back Biman Bangladesh Airlines Limited got new look in 2010 through new logo and livery, as part of branding. To the joy and delight of all concerned, Biman Bangladesh Airlines Limited took the first step towards a 'New Era' with the unveiling of new logo and livery_ the essential new corporate identity on February 3, 2010. But the joy was short lived, as the progress hit a stumbling block and decision concerning new logo and livery was overturned in April. A sudden unexpected and unexplained decision of the government is the cause and the old logo and livery was reinstated. No professional management To have a fully productive new start professional management is key and vital for Biman. The re-structuring and induction of professional management became very essential to accomplish comprehensive programmes for the development of services and enhancement of standards both on the ground and in the air. But, unfortunately, the efforts that were made to find experienced international operator to assist in getting professional management as well as re-structuring Biman to make it more dynamic, more flexible with rapid response to market demands and customers' needs, stopped after change of government. Instead, the management that Biman got turned out to be totally unsuited compared to its need. Industry insiders consider that current Biman management, installed in 2009 is the weakest in its history. Poor management and inadequate unreliable fleet resulted in inefficiency and negative image and the airline failed. One of the major objectives of turning Biman into a PLC was to free the administration from interference of the Ministry of Civil Aviation and Tourism (MOCAT). MOCAT was replaced by the Board. The Board of Directors, responsible for framing policies, is also involved in execution of those policies. As a result conflict of interest has become regular feature in Biman management. In most cases, the executive directors of the airline have no say. According to allegation of senior Biman insiders, no member of the present board has commercial aviation background and their understanding of the running of an airline is also very poor. They cited two instances in support of their claim. In the airline industry it is maintained that more frequency on any route is one of the aspect to attract passengers. Because, frequency provides passengers more options. It is said that "one flight is no flight and two flights is ferry flight". It means, more the frequency, the better the operation. But Biman board is in favour of reducing frequency and employing higher capacity aircraft instead_ to reduce cost of operation, a senior Biman official said. The board rejected a proposal to open Dhaka-Colombo route to better utilise B737-800 aircraft, on the ground there is no expatriate workers movement on the route. The operation of Mihin Lanka airline on the route and its frequency increase prove that decision of the board generated from lack of knowledge about composition of airline traffic. Being an entity having no commercial aviation background and proper understanding, the board selected a CEO and MD who was equally novice about commercial aviation. It was the time when Biman needed professional leadership with vision and drive. Poor manpower The efficiency and skill level of critical workforce are now also below par. In service industries like airline, people are the greatest asset. But Biman Bangladesh Airlines is suffering from shortage of properly skilled efficient manpower at all levels. In the absence of direct officer level recruitment, the middle management positions are presently manned mostly by promotes. As a result quality of supervision has nose-dived. It may be noted that because of the opposition of the unions, in nearly 40 years history of Biman only about 40 officers in four batches could be recruited. The present vacuum in management is because of that. Huge investment Biman has made huge investment in new aircraft. With modern aircraft joining the fleet, skilled and efficient workforce is needed to ensure quality services, efficiency and profitability. But situation is alarming. The need is immediate corrective action to save the national flag carrier from fatal damage. There is no alternative but to immediately infusion of new blood and intensive training programme to elevate level of efficiency and improve standard of services. After long wait, the carrier got delivery of two ultra-modern new aircraft-B777-200ERs--part of the 10 new generation Boeing aircraft on order-- prior to its 40th birth anniversary. More aircraft are scheduled to be delivered in coming years. With the aircraft, more liability in the form of loan payment will also be on Biman. With the delivery of new aircraft in near future, the problem of unreliable fleet is expected to go and product value is also likely to be enhanced. But unless poor management and poor manpower are replaced, the existing set up will surely ruin the opportunity. Immediate action There was little time to waste in addressing the problems. It is widely being felt, otherwise, the huge investment in fleet modernisation will go waste To survive till delivery of all the new aircraft and bring operation on track, Biman immediately needs infusion of fund and induction of professional management. An effort is underway to appoint expatriate professional as CEO and MD. Eight applicants have been shortlisted for the purpose. But a senior Biman executive said "one expatriate CEO and MD will not do. We need to fill-up key positions from outside to run Biman efficiently." The management has also asked a bailout fund of Taka 1,000 crore from the government to help Biman to meet the crisis. It is learnt, the government in response asked Biman to submit the"recovery plan".SOURCE:Bangladesh Monitor

Thursday, February 16, 2012

Minister: Ukraine has enough hotel rooms for Euro 2012 football fans

Feb 14, 2012 KYIV, Ukraine - European football fans will have no problems finding accommodation during EURO 2012, said the Vice Prime Minister, Minister of Infrastructure of Ukraine Borys Kolesnikov. He explained that the reported shortage of places at hotels in Ukrainian host cities would be compensated by beds at health resorts and dormitories. In his interview with The Independent Borys Kolesnikov informed that reasonably priced accommodation was still available - despite the common opinion that accommodation packages in Ukraine may reach four figures. "There is enough student accommodation [though]," said the minister. It was reported recently that over 60,000 beds are available in Ukrainian EURO 2012 cities, and only 20 percent of accommodation had been booked. Travel agencies are gradually adjusting their offers to the needs of the football fans, increasing the number of affordable, short term packages, said the director of the Local Organizing Committee for EURO 2012 in Ukraine Markian Lubkivskyi. The organizers of EURO 2012 in Ukraine claim all four host cities will be able to accommodate the football fans in rooms from basic to 5*, reports Information centre Ukraine-2012. It is expected that Ukraine will open 49 new hotels in EURO 2012 host cities early in 2012. Understandably, Kyiv not only has extra rooms but its hotels are holding workshops and trainings for personnel in order to prepare for unprecedented amount of guests. Another EURO 2012 host - western Ukrainian Lviv is also reported to be completely ready. "We can assume that some 100,000 tourists will visit the city during the [EURO 2012] championship," reckoned the CEO of the Lviv Tourist Board Andriy Matselyukh. Nearly one million tourists came to Lviv in 2011 and 900,000 in 2010. Being a less popular tourist destination, eastern Ukraine relies on simpler lodging - dormitories and health resorts. UEFA struggled to secure the 6,000 rooms it requires in the Donetsk area; just days ago Kharkiv fulfilled UEFA requirements for accommodation. Talking to The Independent, Borys Kolesnikov said: "Donetsk is an industrial centre. It's impossible to have such a quantity of hotels like you have in London." Nonetheless, fans will have a chance to shop for top notch accommodation in these cities as well. EURO 2012 organizers say prices for rooms in Ukraine will vary between EUR 10 and 192.

Saturday, December 31, 2011

Happy new year 2012

Good evening to all off you & best wishes Happy new year 2012,so I remember again and again Oprah Winfrey: CHEERS to a new year and another chance for us to get it right:-Oprah Winfrey/ this image by IB-Times.

Friday, December 23, 2011

Travel agents of BD losing huge commission as most of the airlines showing fuel surcharge as tax, not fare

_By Raquib Siddiqi Dhaka : Since 2007 some airlines operating to and from Bangladesh have, realised about Tk 3500 crores as fuel surcharge/YQ tax. These airlines are showing it as part of tax, not part of the fare and travel agents are losing their legitimate commission on it. These days, travel-related surcharges and taxes can add up to as much as your base fare_ more in a few cases. In addition to the financial bite, the tax picture is often muddled and hard to decipher, and total taxes seem to be climbing faster than jet aircraft. Total taxes have, in fact, increased in the last few years_ some to fund increasingly expensive passenger services, some for increased security, and some just because travellers are an inviting target. Price of an airline ticket to a particular destination is usually worked out after incorporating all costs. Therefore, the cost of fuel prevailing at the time of pricing is also taken into consideration when fixing the price of a ticket. The dollar amount of a published fare is what is known as the base fare. This amount goes to the airline. On top of the base fare, you must pay a variety of taxes and surcharges. Some airports charge what are called passenger facility charges (PFC) for all passengers going through those airports. These funds are directed to airport improvements. International travel results in additional taxes from other countries. Surcharges and taxes Surcharges and taxes on a ticket come from two sources. Surcharges_ mainly for fuel and insurance-- are imposed by the concerned airline, and taxes are levied by the governments of the country of origin and destination, for a particular journey. Fuel surcharge : Since 2004 many airlines reacted to rising fuel prices by imposing a separate fuel surcharge. The amount of the fuel surcharge varies by airline, route and sometimes cabin of travel. This surcharge is not a government-imposed tax. Insurance and security surcharge : Since the events of September 11, 2001, many airlines have been levying a charge per passenger to cover increased costs of insurance and security. This surcharge is not a government-imposed tax. Other taxes, fees and charges: Some airlines make additional charges for hold baggage, check-in at the airport, priority boarding, card payment and so on. On international flights passengers are also likely to incur taxes, fees and charges levied by other States to the destination airport. These will vary by destination and are too numerous to list here. Except three Except three_ Emirates, Sau-di Arabian and Etihad--most of the foreign airlines operating to and from Bangladesh are not showing a number of surcharges and taxes as part of the fare, albeit passengers are to pay the entire amount to fly. By doing this, these airlines are deriving benefits at the cost of travel agents, passengers and to some extent the country. This practice is in force since 2007, but no action has been taken by the regularity authority_ the Civil Aviation Authority of Bangladesh (CAAB). However, compared to the fuel surcharge imposed by the airlines, government taxes are much small. Bangladesh government charges Taka 2,500 for travelling to destinations other than SAARC countries; Taka 300 as airport tax and Tk 1000 as airport utility tax. For travelling to SAARC only Taka 500 is charged as travel tax. Of course, other governments also get into your pocket. Although rates vary from country to country, most foreign governments and airports add a mix of immigration, customs, airport, and other fees, collected when you buy your ticket. Structure of ticket price Just how much do charges and taxes add to a ticket? I checked early December ticket price of Dhaka-Singapore-Los Angles-Singapore-Dhaka route on Singapore Airlines; Dhaka-Kuala Lumpur-Los Angles-Kuala Lumpur-Dhaka route on Malaysia Airlines and Dhaka-Hong Kong-Los Angles-Hong Kong-Dhaka route on Dragon Air. I also checked early Decem-ber ticket price of Dhaka-Singapore-Sydney-Singa-pore-Dhaka route on Singa-pore Airlines; Dhaka-Kuala Lumpur-Sydney-Kuala Lum-pur-Dhaka route on Malaysia Airline and Dhaka-Hong Kong-Sydney-Hong Kong-Dhaka route on Dragon Air. SIA The total fare for Dhaka-Los Angles-Dhaka on Singapore Airlines was found to be Taka 1,29,411. Of this amount, the airline is showing Tk. 59,644 as fare and Taka 69,767 as surcharges and taxes-Tk.56,536 as fuel (Tk.55,056) and insurances surcharges, Tk. 3,800 as Bangladesh government taxes (Foreign Travel tax-Tk.2,500, airport utility tax-Tk.1,000 and airport tax-Tk.300); Tk.1323 as Singapore government tax and the rest Tk.8,108 are 11 types of US taxes and fees. Total fare for Dhaka-Singa-pore-Sydney-Singapore-Dhaka of the same airline is Taka 1, 01,216. Of this amount, the airline is showing Tk.55,722 as fare and Tk.45,494 as surcharges and taxes-Tk.32,856 as fuel (Tk.31,376) and insurance surcharges; Tk.3,800 as Bangladesh government taxes (Foreign Travel tax-Tk.2,500, airport utility tax-Tk.1,00 and airport tax-Tk.300); Singapore government tax Tk.1,040 and Tk.7,790 Australian taxes. Dragon Air Total ticket price for Dhaka-Hong Kong-Los Angles-Hong Kong-Dhaka on Dragon Air is Taka 1,27,893. Of this amount, the airline is showing Tk.81,622 as fare and Tk.46,271 as surcharge and taxes-Tk.38,244 as fuel surcharge, Tk.3,800 Bangladesh government taxes (Foreign travel-Tk.2,500, airport utility-Tk.1,000 and airport tax-Tk.300) and 7 types of US taxes and fees totaling Tk.4,227. Total ticket price for Dhaka-Hong Kong-Sydney-Hong Kong-Dhaka route is Taka 1,05,956. Of this amount, the airline is showing Tk. 56,462 as fare and Tk.49,494 as surcharge and taxes-Tk.38,244 fuel surcharge, Bangladesh government taxes Tk.3,800 (Foreign travel-Tk.2,500, airport utility-Tk.1,000 and airport tax-Tk.300) and 2 types of Australian taxes totalling Tk.7,450. MAS Total ticket price for Dhaka-Kuala Lumpur-Los Angles-Kuala Lumpur-Dhaka route on Malaysia Airlines is Taka 1,17,964. Of this amount, the airline is showing Tk. 50,690 as fare and Tk.67, 274 as surcharges, charges and taxes-Tk,56,240 fuel surcharge and Tk.1,480 insurance charge, Tk.3,800 Bangladesh government taxes (Foreign travel-Tk. 2,500, airport utility-Tk. 1,000 and airport tax-Tk.300), Tk.1,527 Malaysian government tax and 7 types of US taxes and fees Tk. 4,227. Total ticket price for Dhaka-Kuala Lumpur-Sydney-Kuala Lumpur-Dhaka is Taka 90,217. Of this amount, the airline is showing Tak.45,510 as fare and Tk.44,707 as surcharge, charge and taxes-Tk. 30,340 fuel surcharge, Tk.1480 insurance charge, Tk.3,800 Bangladesh government taxes (Foreign travel-Tk.2,500, airport utility-Tk.1,000 and airport tax-Tk.300), Tk.1527 Malay-sian tax and Tk.7,560 Austra-lian taxes. From these price structures of ticket, it is evident that all the three airlines are realising hefty sum as fuel surcharge from the passengers, but not showing as part of fare, albeit except government taxes everything should be part of fare. This is practice of keeping nearly half and more than half of ticket price away from fare, depriving travel agents their legitimate share of the commission and most of the time misleading the passengers, in regard to the total cost payable by him or her. It may be noted that airlines are paying 7 per cent commission to travel agents on fare part of the ticket price. So by showing surcharge as part of the taxes, the airlines are not only depriving the travel agents, but also the passengers who most of the time, enjoy incentive discount from the agents. With highly reduced commission, agents are not in a position to provide discount to passengers. This also irony that while travel agents are providing more services including collection all the taxes for the airlines from the passengers, they are being deprived of legitimate commission, by some airlines. Had the travel agents been paid the legitimate commission, the country would also have been benefitted, in the form of retaining the commission part of the travel agent's income. Some airline's practice of showing fuel surcharge and insurance charge as part of the tax also harming interest of travel agents another way. Travel agents are to take risk of gross amount of the tickets sold, albeit cannot claim commission against the amount. This is forcing them to do less business against their security deposit. Some airlines also misleading travellers by. Advertisement - mentioning only the base fare and keeping silent about fuel surcharge and taxes. This is a kind of cheating. But airlines are doing it freely. Move of ATAB The Association of Travel Agents of Bangladesh (ATAB) has recently made a move in this regard to end the unhealthy practice and to protect their interest. ATAB said a large number of airlines operating to and from Bangladesh, barring three, are taking away precious foreign exchange depriving country's travel agents of their commissions. In a letter on November 15 to the Minister for Civil Aviation and Tourism, ATAB said, "It has been observed that some local and foreign airlines engaged in business in Bangladesh have been realising 30 per cent more than the amount mentioned in their air tickets as fuel surcharge/YQ tax. As a result passengers are forced to pay an additional amount on the one hand while airlines are taking crores of taka out of the country. It has been estimated that the airlines, since 2007 till date, realised about Tk 3500 crores in the name of fuel surcharge/YQ tax, not paying any commission to the travel agencies from this amount. As a result the travel agencies have been deprived of their due commissions." The letter mentioned that Saudi Arabian Airlines, Emirates and Etihad offering consolidated fare absorbing all expenses including fuel surcharges. ATAB in the letter urged that the ministry of Civil Aviation and Tourism take steps so that the airlines not only pay commissions on the gross amount but also pay the travel agencies commissions from the amount realised by them since 2007 as fuel surcharge/YQ tax. It may be mentioned that while CAAB is sitting on the problem, the Civil Aviation Authority of Sri Lanka issued a circular in 2007 to all airlines operating to and from Sri Lanka instructing them to incorporate fuel surcharge into the ticket price and also to pay commissions to the travel agencies based on the full fare. Civil Aviation Authority of Sri Lanka issued a circular in April 2007 and instructed that "All airlines operating to and from Colombo are instructed to incorporate fuel surcharge into the ticket price and to consolidate the airfare, so that the fare quoted to the passenger should be the final fare payable by the passenger. However, any applicable government taxes should be shown separately." The circular further said that ?The airlines are strictly instructed to adhere to the above instructions and to clearly inform their agents that in any form of advertisement placed, the fare that is advertised should be the fare inclusive of the fuel surcharge and commissions payable to the agent by the airline should be based on the full fare." The CAAB should take lesson from action of its Sri Lankan counterpart, and take immediate action in this regard.

Christmas2011

Christmas or Christmas Day (Old English: Crīstesmæsse, literally "Christ's mass") is an annual commemoration of the birth of Jesus Christ,[5][6] celebrated generally on December 25[2][3][4] as a religious and cultural holiday by billions of people around the world. A feast central to the Christian liturgical year, it closes the Advent season and initiates the twelve days of Christmastide.[7] Christmas is a civil holiday in many of the world's nations,[8][9][10] is celebrated by an increasing number of non-Christians,[1][11][12] and is an integral part of the Christmas and holiday season.

Tuesday, October 25, 2011

Don Muang airport under water

By Luc Citrinot, eTN | Oct 24, 2011 BANGKOK, Thailand (eTN) - With a breach in a floodwall located northwards in Pathum Thani, Don Muang district is now invaded by water, which could reach between 1 to 1.5 meters. Don Muang airport is now under water. Bangkok's oldest airport continued to serve domestic destinations with two low-cost airlines flying on a regular basis, however, the flood has now forced airlines to suspend their flights. According to the English-speaking daily newspaper, the Bangkok Post, Nok Air CEO Patee Sarasin twittered in the early afternoon (1:00 pm local time) that all Nok Air flights will be suspended until November 1. Flights have been relocated to Suvarnabhumi Airport. Orient Thai Airways announced it would also relocate its flights from Don Muang to Suvarnabhumi International Airports starting today. The government's FROC (Flood Relief Operations Centre) agency asked residents in surrounding areas to be ready for an urgent evacuation. The government also just declared a public holiday from October 27-31. Source: Bangkok Post, private report

Sunday, September 18, 2011

Global aviation changes due to impact of September 11 events

By Raquib Siddiqi Dhaka : The incidents and tragedy of September 11, 2001 in the United States of America has left lasting impact on the global aviation. Anyone associated with aviation knew that the industry would never be the same. What was not known was how resilient the industry would be in the aftermath of the tragedy or the direction in which it would change. Situation a decade after the event shows, there can be no doubt about aviation's resilience. By 2004 revenues and traffic surpassed 2000 levels. And by 2006 aviation had returned to profitability-albeit with a weak 1.1 per cent margin. In the interim airlines dealt with SARS, additional terrorist attempts, wars, and rising oil prices. It took three years to recover the US$22 billion revenue drop (6 per cent) between 2000 and 2001. When the global financial crisis struck in 2008, 2009 revenues fell by 14 per cent (US$82 billion) to US$482 billion. This was largely recovered in the following year when industry revenues rose to US$554 billion and airlines posted an US$18 billion profit. Clearly the restructuring of the decade has left airlines leaner and more resilient in the face of crisis. Over the decade, the dimensions of global aviation have also changed. IATA expects 2011 airline revenues of US$598 billion_ nearly twice the US$307 billion of 2001. Airlines are also expected to carry 2.8 billion passengers and 48 million tonnes of cargo. That's a billion more people flying and 16 million more tonnes of cargo than in 2001. While it is difficult to isolate the impact of the events of 2001, it can be said that they were a part of a chain of events that cost the industry three years of growth. The 2008 global financial crisis cost another two years of growth. The legacy of 9.11 is felt most in airport security. Aviation is more secure today than in 2001. But this has come at a great price in terms of passenger convenience and industry costs. As we move forward, there are five major lessons in security over the last decade : n Governments must coordinate the development and deployment of security measures to ensure harmonised global standards and eliminate overlapping and redundant requirements among nations. n Governments are obliged to foot the bill for security threats which are national challenges in the same manner as they would do in any other sector. Airlines and their passengers currently pay a security bill that had ballooned to US$7.4 billion by 2010. n Passengers should and do play an important role in helping keep air travel safe. Vigilance and cooperation with authorities are crucial. n Governments need to embrace a risk-based approach to security screening. n All must accept that there is no such thing as 100 per cent risk-free security. Governments must focus on the probable and not all that is possible and avoid policies driven by knee-jerk reactions. A good place to start is by removing the hassle that comes between check-in and boarding at many airports. The vision for IATA's Checkpoint of the Future is for passengers to be able to get from curb to gate in a seamless and convenient process. For this, it is needed a risk-based approach to security powered by the enormous amount of data that collect on travellers. Combined with this will be technology that will allow most passengers to simply stroll through a checkpoint that can detect metal and harmful substances without stopping, stripping or unpacking. Parts of this vision could be realised with technology that exists today. Others are in development with a three to seven year horizon. 9.11 was the beginning of the most challenging decade in aviation history. But it is important to note that the industry was already in a weak financial position. World trade had slowed and the 'dot.com bubble' had burst the year earlier. Global airline profits had fallen from US$8.5 billion in 1999 to US$3.7 billion in 2000. US Impact n Air Space Closed : On September 10, 2001, US airports handled 38,047 flights. On September 12, they handled 252 commercial flights. One week later (September 18) there were 34,743 flights. n Passenger Traffic : US passenger traffic, measured by revenue passenger kilometres (number of travellers multiplied by the distance travelled) declined 5.9 per cent in 20012 (compared to 2000) and a further 1.4 per cent in 2002. Airlines struggled to match this decline by cutting capacity (available seat kilometers or number of seats multiplied by distance traveled) by 2.8 per cent in 2001 and a further 3.9 per cent in 2002. This was the first time since World War II that industry capacity declined for two consecutive years. After stabilising in 2003, capacity growth resumed in 2004 and continued until 2008, when it declined again owing to soaring oil prices and the global financial crisis. Capacity fell further in 2009, returning virtually to 2000 levels. Between 2000 and 2009, the US commercial aircraft fleet shrank by around 700 units. n Domestic Market : The events of 9.11?marked a permanent decline in [US] domestic airline demand. Passengers found alternatives to short-haul travel to avoid the security hassles at airports. Total US domestic capacity in 2010 was 4 per cent below the level in 2000. n Financial Performance : US airline revenues fell from US$130.2 billion in 2000 to US$107.1 billion in 2002. Losses of US$19.6 billion were reported in 2001-2002. Losses for 2001-2005 totaled US$57.7 billion. Between December 2002 and October 2005 United, Delta, Northwest and US Airways filed for Chapter 11 bankruptcy reorganisation. n Employment : In 2000, US passenger airlines employed 520,600 workers. By 2003, this had fallen 14.6 per cent to 444,700. Employment levels continued to decline each year through 2010 (378,100) before climbing in the first half of 2011 to 382,900.5 n Government Compensation : On September 23, 2001, the US Air Transportation Safety and System Stabilisation Act became law, providing US airlines with US$5 billion in compensation (for losses incurred during the 9.11 shutdown and incremental losses sustained through 31 December 2001) and US$10 billion in future loan guarantees. Global Impact n Traffic : Global passenger traffic (tonne kilometers performed) declined by 2.7 per cent in 2001. Traffic did not surpass the 2000 level until 2003. It continued to rise until 2009 when, owing to the global financial crisis, it declined 2.1 per cent year-on-year. n Revenues : Global airline revenues declined from US$329 billion in 2000 to US$307 billion in 2001 and further to US$306 billion in 2002. Revenues rebounded to US$322 billion in 2003 and then to US$379 billion in 2004. The next revenue dip was in 2009 when they fell US$82 billion to US$482 billion. In percentage terms this 14 per cent drop was more than twice the decline experienced in 2001-2. n Profitability : Airlines lost US$13 billion in 2001 and a further US$11.3 billion in 2002. The industry recorded its first post-September 11 annual profit in 2006 (US$5 billion), and earned US$14.7 billion in 2007. The following year rising oil prices and the global financial crisis plunged airlines back into the red with 2008-9 total losses of US$25.9 billion. n Bankruptcies : Within months of the attacks, Swissair and Sabena went bankrupt as the 9.11 shock pushed these financially weak carriers into collapse.