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Boeing scraps 2019 financial forecast, halts share buybacks in wake of 737 MAX disaster

April 24, 2019 by Forimmediaterelease

World’s biggest aerospace corporation was forced to pull its full financial forecast for the current year due to unresolved issues surrounding Boeing’s once best-selling 737 MAX aircraft.

Boeing also announced plans to pause share buybacks, citing “a challenging time for our customers, stakeholders and the company.”

“Across the company, we are focused on safety, returning the 737 MAX to service, and earning and re-earning the trust and confidence of customers, regulators and the flying public,” Boeing Chairman and CEO Dennis Muilenburg said in a statement.

The manufacturer had previously posted a report on the first-quarter earnings that managed to fall in line with analysts’ expectations, while its revenue was slightly less than projected. Boeing’s earning per share totaled the expected $3.16 from January through March, while the revenue amounted to $22.92 billion against $22.98 billion forecasted by London-based provider of financial markets data Refinitiv.

Boeing stressed that the previous guidance didn’t reflect the impact of two crashes of the company’s flagship planes, leading to the grounding of all 737 MAX 8 jets by global regulators, lawsuits from some air carriers and a decline in market value.

According to the producer, more than 135 test and production flights of updated software for the 737 MAX have been carried out so far.

Boeing’s bestseller crashed on March 10 not far from the Ethiopian capital of Addis Ababa six minutes after takeoff on the way to Nairobi, Kenya. The tragedy, which killed 157 people, marked the second crash involving the same jet model in less than six months. In October, the same type of aircraft, operated by Indonesia’s Lion Air, crashed in the Java Sea shortly after takeoff, claiming the lives of 189 people.

Travel News | eTurboNews

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Ethiopia, Rwanda and Uganda: Top 10 improved world travel destinations

April 10, 2019 by Forimmediaterelease

Three Eastern African nations have emerged among the top ten fastest-growing destinations for tourism in the world.

The 2019 annual report compiled by the World Travel and Tourism Council (WTTC) shows that Ethiopia is the fastest-growing travel destination in the world with Rwanda in sixth place and Uganda holding a twelfth position on the list.

Ethiopia’s tourism sector grew by a staggering 48.6 percent in 2018, making up 9.4 percent of the economy and creating 2.2 million jobs. Over 8 percent of Ethiopia’s total workforce now works in tourism.

Rwanda also saw growth rates of 13.8 percent and Uganda 11.3 percent, with all 3 showing the pull of East Africa both in terms of its wildlife, history, and beaches, the Nation Media Group reported from Nairobi.

Kenya also saw a big growth in 2018  at 5.6 percent  which had created 1.46 million jobs and made up 8.8 percent of the total annual economy.

Kenya stands as the leading tourist hub in Eastern Africa, taking an advantage of its rich wildlife, historical sites, and beaches on the Indian Ocean coast and improved tourist services, mostly hotels and air transport facilities.

In its annual analysis quantifying the global economic and employment impact of travel and tourism in 185 countries and 25 regions, the World Travel and Tourism Council’s research reveals that the sector accounted for 10.4 percent of global GDP and 319 million jobs, or 10 percent of total employment in 2018.

It adds that travel and tourism’s growth in 2019 is expected “to remain resilient” despite a slowing global economy.

“Our forecasts point to a 3.6 percent expansion for travel and tourism, faster than an expected global economy growth of 2.9 percent in 2019,” the report says.

It adds that one in 5 of all new jobs were created by travel and tourism over the past 5 years showing the growing importance of the sector to the global economy.

Travel and tourism GDP grew by 5.6 percent in 2018, significantly above the African economic growth rate of 3.2 percent.

This places Africa as the second fastest-growing region in 2018, behind only Asia-Pacific.

Such growth is partly explained by North Africa’s rebound from security crises as well as the development and implementation of policies that stimulate travel promotion.

Travel News | eTurboNews

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Gleam of hope for tourism

April 9, 2019 by Forimmediaterelease

On March 27, all roads led to Mombasa, Kenya, for a joint business meeting organized by Uganda and Kenya and the two Presidents of both countries actually attended. The meeting gathered ministers, key business persons from both countries to discussing topics of mutual interest for the growth. I was personally hesitated to go because my wife and daughter were traveling same week and did not want them to leave without me saying a goodbye.

I also do not like meetings where people talk and do not come up with real solutions for the existing problems. I only made the journey after my family blessed it. I took a morning flight aboard Kenya Airways to join two Kenya friends (Shivam Vanayak and wife) out of Nairobi to Mombasa and thankfully, they had managed to secure three tickets on Madaraka train. Securing seats on the train from Nairobi to Mombasa is an uphill task because of high traffic.

I had been to Nairobi a number of times with an aim of securing seats and failed because of the demand. The business class is even worse because the tickets are booked out first way in advance.

The staff of Madaraka train dress more like air hostesses with a proper Kenyan hospitality. The train carries about 1,500 people each way and there are two trains departing Nairobi daily for Mombasa and vice versa which means 3,000 individuals are dropped into Mombasa daily which is a massive business opportunity for the Mombasa service providers such as hotels, restaurants, taxi drivers, entertainment joints, boats, bars, etc.

The train goes through Tsavo National Park which is Kenya’s largest and oldest standing at 13,747 square kilometers. While on the train, we also saw the 300 kilometer long Yatta Plateau, the longest lava flow in the world. Tsavo is home to the larger mammals, vast herds of elephants, rhinos, buffaloes, lions, leopard, pods of hippo, crocodiles, water bucks, lesser kudu, genenuk and the prolific bird life.

At the business forum in Mombasa, I was given an opportunity to address the audience which included President Museveni and President Uhuru Kenyatta on behavior Uganda and Kenyan tourism group. My address focused on seven points we had agreed upon before the Presidents arrived at Sarova sands where the meeting took place.

The first point focused on the flights between the East African countries especially Kenya and Uganda. Our observations are that the tickets between Uganda and Kenya are very expensive because of the high taxes levied by both governments. Kenya for example charges $50 on every ticket and Uganda charges $57 which makes a total of $107. That figure is what should be the cost of a ticket between the two countries. We actually recommended that flights between the two countries be domesticated.

The second point focused on the East African tourists’ visas which have Uganda, Kenya and Rwanda working together. Our proposal was that the two presidents convince the Tanzanian leadership to join the good arrangements. Many tourists are finding it easy paying $100 for a visa that covers the above three nations which allows them to move back and forth.

Since some local airline operators such as coastal want to fly into Ugandan national parks, it would positively affect the tourism business between the four nations. The third point focused on politics. Overtime, we as the tourism operators in the region have seen politics affect tourism a lot especially during campaigns and since insecurity and tourism can’t co-exist, foreign tourists will fear to travel in the region.

The leaders were asked to remember what their actions mean to business and practice restrain. This particular point was well received by both leaders and we hope to see some change with time. The fourth point focused on trans-boundary tourism opportunities which focus on the shared tourism attractions such as Lake Victoria and Mountain Elgon.

The tourism fraternity feels we need a combined effort in exploiting the above because we miss out on potential billions of dollars that could come out of activities such as cruises, sport fishing, water transport, accommodations on the shores and the many islands found on the lake. We also talked about the joint marketing opportunities across the globe that would see millions flock to Uganda and Kenya hence more revenues.

We asked the presidents to go easy on the yellow card requirements for citizens from both countries because it inconveniences the business travelers most since they are frequent.

Travel News | eTurboNews

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19 more hotels with 3000 rooms to be added to Marriott Hotels in Middle East and Africa

April 8, 2019 by Forimmediaterelease

Marriott International expects to add 19 new properties and more than 3,000 rooms to its  Middle East and Africa portfolio in 2019.  Underpinning a strong demand for its diverse brands, the new additions are in line with the company’s expansion plans to add more than 100 new properties and nearly 26,000 rooms across the region by the end of 2023.  Marriott estimates its development pipeline through 2023 represents up to $8 billion of investment from property owners and is expected to generate over 20,000 new jobs across the region.

“Our growth across the Middle East and Africa is fuelled by a strong demand for our diverse range of well-established brands, each offering different attributes that cater to this region’s ever changing and evolving marketplace,” said Jerome Briet, Chief Development Officer, Middle East & Africa, Marriott International. “This region continues to present us with opportunities to further grow and enhance our portfolio across new and established markets.  While the majority of our growth will be through new-builds, we are seeing an increasing number of conversion opportunities, especially in the luxury space.”

Year-to-date, the company has opened five new properties in the region and is expected to add 14 more – bringing its portfolio across the Middle East and Africa to nearly 270 properties and over 60,000 rooms – by the end of the year.

Unwavering Demand for Luxury Brands that offer Unrivalled Experiences

The company is poised to expand its luxury footprint in the region by more than 70 percent by the end of 2023, with more than 25 luxury properties under development.   The company expects to grow its luxury portfolio in 2019 with seven anticipated openings across four brands:

  • With the recent opening of W Dubai – The Palm and the anticipated openings of W Muscat and W Yas Island, W Hotels should double its portfolio in the region.
  • St. Regis anticipates debuting in Jordan and Egypt with the openings of The St. Regis Amman and The St. Regis Cairo.
  • The iconic North Island is expected to of world-renowned hotels and resorts.
  • JW Marriott anticipates marking its entry into Oman with the opening of the JW Marriott Muscat Convention Center.

Substantial Growth across Premium Brands

The growth of Marriott’s premium brands remains steady across the region with more than 30 hotels expected to be added to the portfolio by the end of 2023. By the end of 2019, the company expects to have added four new hotels under its premium portfolio for the region:

  • The Autograph Collection anticipates marking its debut in Kenya with the addition of Sankara Nairobi.
  • Marriott Hotels and Marriott Executive Apartments strengthened its presence in Saudi Arabia with the recent openings in the Diplomatic Quarter of Riyadh.  Marriott Executive Apartments is also expected to open a new property in Madinah later this year.
  • Marriott Hotels is also planning to open its second property in Algeria, in the capital city of Algiers

In addition to the openings in 2019, Marriott is also focused on the transformation journey of Sheraton Hotels & Resorts, the company’s most global brand.  In the region, Sheraton Jeddah Hotel and Sheraton Grand Hotel, Dubai are currently undergoing renovations that represent the brand’s vision for the future.

Regional Demand for Select-Service Hotels Continues to Fuel Growth

Currently representing over 40 percent of the company’s development pipeline through 2023, select-serve brands continue their rapid growth trajectory across the Middle East and Africa.  Building on the momentum from 2018 – with ten properties added across the region, including four Aloft hotels in the UAE – the company expects to add seven new properties by the end of this year:

  • Four Points by Sheraton anticipates expanding its portfolio with a total of four openings in 2019.The brand recently opened properties in in Sharjah (UAE) and Setif (Algeria) and is on-track to open two more properties this year including, Four Points by Sheraton Dar es Salaam New Africa in Tanzania and Four Points by Sheraton Lahore in Pakistan.
  • Residence Inn by Marriott expects to make its debut in Algeria with the opening of Residence Inn by Marriott Algiers
  • Protea Hotels by Marriott plans to expand the brand in Uganda with the opening of Protea Hotel by Marriott Naguru Skyz.
  • Element Hotels is set to launch its first property in Africa with the opening of Element Dar es Salaam in Tanzania.

Travel News | eTurboNews

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WTTC Summit 2019 Seville: The Untold Story

April 7, 2019 by Forimmediaterelease

The World Travel and Tourism Council just finished their annual summit 2019 in the Spanish City of Seville.

A record number of delegates listened to presentations from top leaders in the largest industry in the world. All of this was live streamed except for the conversation everyone had waited for with former US President Barak Obama. Perhaps the $4,000.00 price tag for non-members required the organizer to shield the former president from public listeners.

eTN reached out to about 100 of the CEO’s, delegates and ministers that attended the 2-day event last week and everyone said the networking opportunities at WTTC summits to have top people meet with other top people is the real value here. Some delegates only attended the opening and the Obama session and met in the hallways, at side venues with business partners, fellow ministers.

Big business is done this way. It starts often with an exchange of ideas and can trickle down to billion-dollar transactions.

This is the place a CEO can have a cup of coffee with a fellow CEO from a competing company.

Former Seychelles Minister of Tourism, Civil Aviation, Ports and Marine of Seychelles Alain St. Ange, who now leads his own consulting company met with Kenya Tourism Minister Najib Balala consolidating the working cooperation between the two tourism personalities.
St.Ange and Balala have been friends for a number of years and both men are seen as continent leaders in the field of tourism.  Alain told eTN about his exchange with the First Lady of Kenya who delivered her speech at the WTTC summit.
St.Ange said:  “Minister Najib Balala of Kenya and me are expected to meet again in Nairobi shortly to discuss tourism and the development of tourism in Africa.”
WTTC is a different event, an event of changemakers and networking hiding behind the facade of top-notch presentations and opportunity for every destination that is hosting such a high-level event.

 

 

Travel News | eTurboNews

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Boeing 737 MAX’s disasters could impair global Artificial Intelligence development

March 23, 2019 by Forimmediaterelease

Two deadly crashes involving Boeing’s newest airplane in less than six months puts in jeopardy not only the credibility of the manufacturer, but also new technologies actively being pushed by the world’s top tech firms.

All Boeing 737 MAX 8 planes operated by global carriers were grounded earlier this month after an Ethiopian Airlines aircraft crashed shortly after take-off, taking a steep nosedive not far from Nairobi.

The fatal accident which claimed 157 lives followed a similar crash in Indonesia, which killed all 189 people on board in October.

The two crashes appear to have something in common. The crews of both aircraft reportedly struggled with the MAX 8 autopilot system which pointed the nose of the airplane down before the crash.

The implications of the deadly incidents are much bigger than aviation itself, according to Alessandro Bruno, an independent international affairs and aerospace industry analyst.

“I think this accident shows the limitations of artificial intelligence and it should convince Elon Musk and Tesla to slow down efforts to push down self-driving cars,” the expert said, highlighting that the latest crashes occurred due to software problems, not mechanical ones.

A recall of Boeing’s flagship planes, lawsuits from global air carriers and a fall in the manufacturer’s market value may undoubtedly result in the firm lagging behind Airbus, its key rival, according to international finance experts, who say that if this scandal is not ‘extinguished’ in time, it may trigger deep concerns over the entire sector of artificial intelligence and its credibility.

Travel News | eTurboNews

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Trump appoints former Delta Air Lines executive new FAA chief

March 20, 2019 by Forimmediaterelease

Former chief of flight operations for Delta Air Lines was appointed by President Trump to run the Federal Aviation Administration, currently under scrutiny for allowing the troubled Boeing 737 MAX 8 to carry passengers.

Steve Dickson, who spent 27 years with Delta before retiring in October as senior vice president of flight ops, is joining the agency in the midst of its most turbulent period in recent history, with Transportation Secretary Elaine Chao having requested an audit of its certification of the aircraft, two of which have been involved in horrific crashes over the past five months.

While Dickson’s name had reportedly been under consideration since November, Trump allowed the FAA to go without an official head for over a year following the end of Obama-era agency chief Michael Huerta’s term. Daniel Elwell, who led the FAA under George W. Bush, has been running the agency in an interim capacity without being confirmed by the Senate.

The man from Delta will be the first FAA head in three decades to have come directly to the job from a senior airline position – something of a pattern for Trump, who has recruited a number of cabinet members from the ranks of corporate America to staff the agencies tasked with regulating their former employers. Acting Defense Secretary Patrick Shanahan, who previously worked for Boeing, is just one such appointment.

The FAA is under fire for allowing Boeing to conduct crucial parts of its own safety testing and certification process. A group of current and former engineers from both the regulator and the aircraft manufacturer claims the FAA merely took Boeing’s word that their new plane was safe – an oversight that other countries then allegedly magnified by conducting only minimal testing of their own, assuming the US watchdog wouldn’t have certified an unsafe aircraft. Boeing is also accused of “cutting corners” to quickly certify the plane in order to compete with the new Airbus A320 Neo – between them, Airbus and Boeing comprise the lion’s share of all passenger airliners – and of failing to properly train pilots to work with the onboard systems.

Ethiopian Airlines Flight 302 crashed earlier this month shortly after taking off from Addis Ababa en route to Nairobi, killing all 157 people on board after diving unexpectedly into a field. It was the second Boeing 737 Max 8 to meet such a fate in under six months, and investigators have pointed to “clear similarities” between this crash and the Lion Air Flight 610 disaster in October, which killed 189 people.

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