News & Current Affairs

December 1, 2008

Empty aircraft fly from Bangkok

Empty aircraft fly from Bangkok

Stranded passengers at Suvarnabhumi airport, Bangkok

Thousands of passengers have been stranded by the protests

About 40 empty planes have flown out of Bangkok’s international airport after authorities reached a deal with protesters camped there for seven days.

Thousands of travellers have been stranded since anti-government groups took over two airports last week.

The deal allows a total 88 planes to be flown out to other Thai airports, where it is hoped they can evacuate some of the blockaded tourists.

The crisis has economically damaged the country since it intensified last week.

Thailand’s deputy premier for economic affairs is reported to be meeting senior figures in commerce, industry and tourism today to discuss the damage being done.

As the backlog of stranded foreigners grows with each day, foreign embassies are beside themselves with frustration.

Foreign airlines

A spokeswoman for Airports of Thailand said: “Thirty-seven aircraft have left Suvarnabhumi (international airport) since the first aircraft of Siam GA (a regional airline) took off on Sunday evening.

“International airlines will have to contact us to take those stranded aircraft out of Suvarnabhumi.”

Twelve planes belonging to foreign airlines are stranded at Suvarnabhumi, as well as 29 from Thai Airways, 16 of Thai Airasia, 15 from Bangkok Airways, and 22 aircraft from other airlines.

With thousands of British citizens among the estimated 100,000 travellers, a spokesman for the UK’s Foreign Office said: “Bangkok’s two main airports remain closed but airlines have been able to arrange flights and transfers to and from alternative airports.

An anti-government protester outside Bangkok airport

“Some British nationals have been able to fly out but not in the necessary numbers.

“We have continued our consultations with airlines and Thai authorities…and action is being stepped up to enable people to travel in greater numbers, for example via Chiang Mai.”

Chiang Mai, in the north, is 700km (435 milies) by road from Bangkok, while the other option – Phuket, a resort in the south – is 850km (530 miles).

France has said it will send a “special plane” to fly its citizens out of Thailand on Monday, with “those in the most pressing situations…given priority,” AFP news agency reported.

Air France-KLM has already said it would fly travellers out of Phuket.

A few airlines have been using an airport at the U-Tapao naval base, about 140km (90 miles) south-east of Bangkok.

On Sunday more than 450 Muslim pilgrims stranded at the international airport were taken by bus to the base where they were to board a plane for the annual Hajj in Saudi Arabia.

Spain and Australia have been arranging special flights to evacuate their citizens.

Thailand’s tourist industry is losing an estimated $85m (£55.4m) per day, and the government warns that the number of foreign tourists arriving next year may halve, threatening one million jobs.

The protesters from the People’s Alliance for Democracy (PAD) are a loose alliance of royalists, businessmen and the urban middle class.

They opposition want the government to resign, accusing it of being corrupt, hostile to the monarchy and in league with exiled former Prime Minister Thaksin Shinawatra.


Are you stranded in Thailand or do you have family affected by the protests? What are your or their experiences? Send us your comments

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September 13, 2008

Thousands stranded by XL collapse

Thousands stranded by XL collapse

The collapse of the UK’s third largest package holiday group has left tens of thousands of Britons stranded abroad.

The decision to place XL Leisure Group into administration has also left thousands of staff facing the axe.

Chairman Phil Wyatt said he was “totally devastated” by the failure which has grounded XL’s 21 planes. The company flies to about 50 destinations.

There are 67,000 stranded who booked directly with XL, and another 23,000 who booked via other companies.

The Civil Aviation Authority(CAA) also said the firm had 200,000 advance bookings.

‘Sad day’

CAA EMERGENCY HELPLINE
Customers abroad: +44 (0) 2891 856547
Customers in the UK with advance bookings: 0870 5900927

“We’ve made every effort, myself and my fellow directors, to find new funding for the business – and it’s a very sad day for me personally. I am totally devastated,” XL chairman Phil Wyatt said.David Clover, a spokesman for the CAA, said it was making arrangements to help customers of the four tour companies within the XL group.

“In respect of people who are currently abroad we’re making arrangements and working very closely with the travel industry to organize repatriation flights.

“Clearly though, with XL Airways no longer operating, we’re having to bring in substitute aircraft to bring people home.”

He said package deals are covered by the CAA’s Air Travel Organizers’ Licensing (Atol) scheme and those customers will be offered repatriation flights or their money back if they have an advance booking.

Struggling

However, those who booked directly with the airline or XL.com – who are in the minority according to the CAA – will face a fee.

Anyone yet to take their flights should check their insurance policies, and with their banks or credit card companies about refunds, he added.

XL – which carried 2.3 million passengers last year – is the latest travel business to face financial difficulties, as the industry struggles with high fuel costs and an economic downturn.

But an agreement has been reached whereby Straumur investment bank has acquired XL’s German and French subsidiaries, which Straumur considers to be financially viable and sustainable businesses.

They will continue operations as separate commercial entities.

Share prices in holiday firms TUI Travel and Thomas Cook were up 6% and 7% following the collapse of their rival.

Economic downturn

“As the travel industry matures in Europe, there was always going to be pressure on those operating in the mid-market,” said Lastminute.com chief executive Ian McCaig.

A statement on the XL group’s website said: “The companies entered into administration having suffered as a result of volatile fuel prices, the economic downturn, and were unable to obtain further funding.”

XL COMPANIES
XL Leisure Group
XL Airways UK
Excel Aviation
Explorer House
Aspire Holidays
Freedom Flights
Freedom Flights (Aviation)
The Really Great Holiday Company
Medlife Hotels
Travel City Flights
Kosmar Villa Holidays

BBC travel correspondent Tom Symonds added that the industry would be facing an “enormous challenge” as it deals with the fall out of XL’s collapse.

“XL wasn’t just an airline it was a fundamental link Britain’s package holiday industry,” he said.

“Getting these people to and from their holidays will be an enormous challenge not least because of the shortage of aircraft caused by so many airline collapses in recent weeks.

“XL can’t use its own airliners for among other reasons it has no insurance now.”

The CAA said it was working with the travel industry to bring stranded holidaymakers home, and denied it had been responsible for the grounding of XL’s planes.

Airlines BA, Easyjet, BMI, Flybe and Ryanair have offered to fly some of the stranded passengers home.

Easyjet chief executive Andy Harrison told that its fuel efficient planes had helped it cope with the high cost of aviation fuel although on Thursday it said it would cut up to 60 jobs to remain competitive.

Fuel pressures

Mr Wyatt added that spiralling oil prices had increased the firm’s costs “year-on-year by over $80m”.

“So where many people have been making hay with high oil prices, this is the repercussions of that hay – 1,700 people potentially out of work today in the UK,” he said.

Rival TUI warned that rising fuel costs meant that “airlines with less than robust business models” – such as XL and Futura – were now failing.

It added that the government should take steps to ensure all holiday companies must belong to the Atol scheme, which offers package holiday makers financial protection.

In the US, one flight from Orlando to Manchester managed to set off, while one bound for Gatwick was grounded. A source at the airport said accommodation was being found for the “distressed” passengers.

In the UK, air traffic control prevented three XL aircraft from taking off from Manchester Airport.

The XL group, which is based in Crawley, West Sussex, runs an airline and owns several travel companies, including Travel City Direct, Medlife Hotels Limited, The Really Great Holiday Company, Freedom Flights and Kosmar Holidays.

‘Going nowhere’

The company flies mainly from bases at Gatwick, Manchester and Glasgow airports.

Travel writer Simon Calder warned that many thousands of XL customers hoping to fly to the Caribbean, Mediterranean, North Africa and North America, from airports across the UK in coming weeks and days “simply won’t be going anywhere”.

Jim Duwaine, from Portsmouth, said he was given the news when he arrived at Gatwick where he had been due to catch an early morning flight to Menorca.

HELP OFFERED TO XL CUSTOMERS
Flybe – offering flights for 90 euros (£71.50)
BA– offering a one-way discount
Easyjet– flights offered for £75
BMI – provided aircraft to CAA for transport people home
Ryanair – has offered spare plane to CAA for transport

He said: “Absolutely devastated. Got up at midnight planning on going on holiday, but got let down, unfortunately. We’re here, just trying to get some other flights, but it’s not looking good. I think everyone else has got the same idea.”

Other holidaymakers have said they have been quoted vastly inflated prices for replacement flights.

Robert Spurgeon, of Norwich – an XL customer who had been due to fly to Tenerife from Gatwick – said: “We’ve not been told anything but my wife’s been quoted £2,000 for alternative flights.”

Also among those affected are a 130-strong choir on tour to Canada from Wales who were booked on Zoom and lost £50,000 when it folded last month, and then re-booked with XL.

XL is the current kit sponsor of West Ham United but football club said it would end the sponsorship deal and play on Saturday in an unbranded kit.


Are you struggling to make your way home from your holiday destination? Have you paid for a holiday that you may not be able to take? If you were an employee of XL what are your views? Send us your comments

August 7, 2008

Ruling parties in Musharraf talks

Ruling parties in Musharraf talks

Photo of Pakistani President Pervez Musharraf seen partially torn down on outskirts of Islamabad

President Musharraf hopes to see out his term

Pakistan’s ruling alliance is expected to decide whether to  begin moves to try to impeach President Pervez Musharraf, following three days of talks.

Mr Musharraf has delayed his departure to China to attend the opening of the Olympics, after earlier suggestions he might cancel the trip entirely.

The president’s allies were defeated in elections in February, but he has so far resisted pressure to quit.

The governing coalition is divided over whether to impeach Mr Musharraf.

Latest reports from Islamabad quote “senior coalition sources” saying a deal has been reached in principle on impeaching the president, but these have not been confirmed.

Correspondents say it is also far from clear whether the ruling alliance could muster the required two-thirds majority needed in both houses of parliament.

‘Special relations’

The president was due to leave for the Chinese capital, Beijing, on Wednesday but at the last minute the trip was cancelled. No reason was given.

A statement from the foreign ministry later said that he would leave for China on Thursday.

Work is under way to finalise the draft of a joint statement
PPP spokesman Farhatullah Babar

“In view of our special relations with China, the president has decided to attend the opening ceremony of the Beijing Olympics,” said the foreign ministry statement on Wednesday.

China is one of Pakistan’s closest allies, and it would have been highly unusual for a Pakistani leader to call off a visit at such short notice.

The question of whether or not to impeach Mr Musharraf has threatened to divide the governing coalition.

Early in what was a dramatic day on Wednesday, the threat of a new opposition onslaught appeared sufficient to force him to cancel his Beijing trip. Yet by evening a spokesman said he would travel as planned.

That Mr Musharraf felt confident enough to fly to China would suggest to many Pakistanis that for now at least he feels more secure in his position, our correspondent says.

The president has previously said he would prefer to resign than face impeachment.

Last year, he gave up control of the army, the country’s most powerful institution, but he retains the power to dissolve parliament.

How the military reacts to any efforts to oust him would be crucial in determining his fate.

Opponents’ moves

The governing Pakistan People’s Party (PPP) and its alliance partners appeared deadlocked by Wednesday evening over the impeachment moves.

Asif Zardari and Nawaz Sharif met on 5 August 2008

Mr Zardari and Mr Sharif met on Wednesday

At one point, former Prime Minister Nawaz Sharif stormed out following the announcement that Mr Musharraf had issued orders to reinstate some of Pakistan’s top judges.

Mr Sharif argues that the president is attempting to divide the governing coalition.

But progress appears to have been made since then.

PPP spokesman Farhatullah Babar told the news agency AFP work was under way “to finalise the draft of a joint statement” by Thursday evening.

A spokesman for Mr Sharif’s party also said an announcement was due.

Mr Musharraf’s political allies were defeated in February elections, from which the PPP emerged as the largest party.

In second place was the PML-N of Mr Sharif, whom President Musharraf ousted in a 1999 coup.

The two parties formed an alliance in March, but have since been split over the issues of presidential impeachment and the reinstatement of judges sacked by President Musharraf during a state of emergency in November.

The PML-N pulled out of the federal cabinet in May when PPP leader Asif Ali Zardari refused to move immediately on these issues.

The rift has caused a sense of paralysis in the government, which is under pressure to tackle militancy and a worsening economy.

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