EasyJet profits triple as budget airline attracts more passengers

by Sean McLachlan on

Budget carrier easyJet almost tripled its profits in the past 12 months as fuel prices dropped and passengers flocked to book cheap flights, BBC reports.

The airline released figures for the past twelve months through September, revealing a profit of £154m million ($247 million). The previous 12 months saw profits of £55 million ($88 million). A total of 49 million people flew on easyJet in the past year, up 8 percent.

While a 9 percent drop in fuel prices helped all airlines, there’s been a continued shift away from national carriers such as British Airways and Air France in favor of budget carriers, and no budget airline has as much share in the European market as easyJet. The carrier now accounts for 7.6 percent of the European market.

The airline also announced it will pay a dividend for the first time in 2012, and will be buying 24 airplanes in order to expand its services.

[Photo courtesy Antony J Best via Wikimedia Commons]

Gulfstream’s $500 million expansion of Savannah, GA headquarters to create 1,000 jobs

by Darren Murph on

According to many pundits, the so-called recession that gripped the world in 2009 is far from “over,” but we’ve been noticing steady signs of recovery in the travel industry over the course of 2010. While consumers and businesspeople alike are still pinching pennies and thinking twice as hard about where their funds are going, more and more bodies are moving about, particularly by plane. Gulfstream, which maintains a headquarters in Savannah, Georgia, seems more convinced than ever that we’re on the rebound, and it’s announcing today a huge investment that’ll better position it “to meet future demand for business-jet aircraft and support services.”

The spend? $500 million over the next seven years, and that’ll buy significant expansion of its Savannah plant as well as around 1,000 full-time Gulfstream Aerospace jobs (a hike of about 15 percent from its current level of 5,500 employees). According to Savannah Now, those positions will include production specialists, engineers, and support technicians. Needless to say, quite a few folks in the Peach State are celebrating the news, with Gov. Sonny Perdue being one of many on hand today for the announcement. Moreover, the expansion will result in new facilities at the northwest quadrant of the Savannah / Hilton Head International Airport.

Gulfstream suggests that the investment will also help it meet a growing demand for large-cabin aircraft, with large chunks of the cash used to build production plants for G650 (“Like a G6!”) and G250 jets, as well as maintenance capacity for all of the models that the company manufactures. Unsurprisingly, we’re hearing that the bulk of that demand is coming from international clients (Asia Pacific, specifically), but the company seems bound and determined to keep its roots in the south.

We know Gulfstream doesn’t speak for the entire aviation industry, but it’s definitely good to see a major player like this making such a tremendous investment in the future of air travel. Here’s hoping it’s just the beginning of a beautiful turnaround.

[Via Twitter (@mksteele)]

Deloitte says business travel up for 2011, 80% to hit the road more

by Tom Johansmeyer on

Business travelers are back in 2011. At least, that’s what global professional services firm Deloitte is saying. After two years of corporate austerity, the business traveler is taking to the skies and road again, and this has to be great news for airlines and hotels, as it’s the corporate set that really brings in the cash they count on. The numbers look good for next year, according to this survey, which means a little more elbow room for the beleaguered tourism and travel industry.

The company surveyed 1,001 business travelers and found that 80 percent are expecting to take more trips than they did in 2010, with 79 percent forecasting that spending will be the same or higher. This follows gains in 2010, in which only 29 percent said they expected the full year to net out to a decline relative to 2009.

According to Adam Weissenberg, vice chairman and tourism, hospitality and leisure sector leader, Deloitte LLP, “The travel industry was not immune to the economic slowdown, but the confidence demonstrated by business travelers who responded to our survey suggests a brighter outlook for the industry as a whole.”
This follows a tough period for business travel. Deloitte noted in a statement:

Due to the recession, 72 percent of survey respondents had monitored their business travel expenses in various ways this past year. In particular, business travelers said they had cut back on overall travel costs (37 percent), reduced the duration of their trips (33 percent), or spent less on food/restaurants (32 percent). More than one in five (21 percent) booked less expensive hotel rooms.

Not only were belts tightening, but people were watching. Deloitte found that 59 percent of respondents indicated their companies were enforcing corporate travel policies more strictly. Fifty percent revealed that they have to get pre-trip approval for business travel, with 42 percent saying that “their company guidelines currently covered booking accommodations in advance.” Close to a third reported dollar limits on accommodations.

High-speed rail deal may mean more services between UK and Europe

by Sean McLachlan on

The UK government has leased its High Speed One line to a Canadian consortium. The line, which cost more than £5 billion ($8.1 billion) in taxpayer money to build, will be run by Borealis Infrastructure and the Ontario Teachers’ Pension fund on a 30 year lease. They paid £2.1 billion ($3.4 billion) in the deal.

The High Speed One line is the route that Eurostar uses in its journeys from London to Paris and Brussels. The consortium plans to open the line up to more train companies in a move that will see more competition, and hopefully lower rates, on the popular route.

The line will continue to be under the ultimate authority of the UK government and subject to its regulations.

[Photo courtesy user Sunil060902 via Wikimedia Commons]

Business travel to U.S. from overseas spikes

by Tom Johansmeyer on

Suits and ties are no longer in short supply on visits to the United States from overseas. The latest data from the U.S. Department of Commerce shows 11 percent growth year over year for the first six months of 2010 … for total travel. Business travel led the way, with a 19 percent year-over-year gain for the same period. Leisure travel was up 9 percent.

Of course, this follows the staggering losses of 2009, in which business travel to the United States from overseas plunged 40 percent year over year, thanks in large part to the effects of the global financial crisis and the collapse of Lehman Brothers in September 2008. So, this year’s double-digit gains aren’t nearly enough to recover for the business activity that has been lost.

We’re headed in the right direction with business travel exports, but we still have a long way to go. The Department of Commerce notes in a statement, “[T]he double digit gains in business travel that most of the top overseas countries registered in the first half of 2010 are a welcome change.”

For the top 20 countries in travel to the United States, all posted gains for business-related travel, but only six showed leisure travel growth.

The suits are back, and they’re probably bringing some cash with them!