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India’s Jet Airways halts all international and domestic operations

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One of India’s major airlines, Jet Airways, has announced it is temporarily halting flight operations on Wednesday after the carrier failed to secure the “critical interim funding” necessary for the company to remain afloat.

Jet Airways will operate the last flight on Wednesday as it cancels all its international and domestic flights, the airline said in a statement. It explained that it cannot afford to pay for fuel or other critical services to keep the operations going, as all its months-long attempts to seek both interim and long-term funding were in vain.

“Unfortunately, despite its very best efforts, the airline has been left with no other choice today but to go ahead with a temporary suspension of flight operations,” the statement reads.

Earlier this month, the airline’s fleet was significantly reduced to just five aircraft and it was forced to suspend international operations. On Wednesday, the Jet Airways website listed only 37 domestic flights and had an additional nine-page list of canceled flights, saying that the schedule was impacted by “operational reasons.”

The troubled company failed to receive a stop-gap loan of about $217 million from its lenders as part of a rescue deal agreed in late March, Reuters earlier reported.

“Bankers did not want to go for a piecemeal approach which would keep the carrier flying for a few days and then again risk having Jet come back for more interim funding,” an unnamed bank source in the negotiations on the debt resolution process told the agency.

The uncertainty over the crucial funding crashed Jet Airways stock on Tuesday, with shares plunging around 20 percent.

Employees have been hit hardest by the crisis in the company and have reportedly not been paid in months. The pilots even called on the State Bank of India (SBI) to release the necessary funds and appealed to India’s Prime Minister Narendra Modi to save 20,000 jobs which may be lost in the shutdown.

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Spain-Holiday.com has new owners

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The Spanish holiday rental platform, Spain-Holiday.com, has new owners from the 1st of April. The company’s founder and sole owner until the end of March, Claus Sorensen, will be sharing ownership in equal conditions with Jan Dal Lehrmann, Kenneth Andersen and Jannich Friis Petersen.

  • Jan Dal Lehrmann, Kenneth Andersen and Jannich Friis Petersen have become the new co-owners of the holiday rental platform together with Claus Sorensen, founder and former sole owner, owning 25% shares each.
  • This ownership change will strengthen the activity of Spain-Holiday.com in the Spanish holiday rental industry thanks to the input and knowledge provided by the new co-owners: experience in digital businesses, unique know-how and strategic vision.

For Claus Sorensen this is a step “that will strengthen Spain-Holiday.com’s ability to set a strategy for strong performance in the coming years. With the incorporation of Jan, Kenneth and Jannich to the company we will be able to strengthen our brand value and attribution in Spain and we’ll have the opportunity to develop a more ambitious expansion plan”.

Each one of the new owners provides an important professional value to the management of the company and share the same objective of achieving the long term goals planned for Spain-Holiday.com. The four of them add up many years of experience in managing online businesses in Europe, the knowledge of developing niche and new markets and the development of B2B-B2C strategies.

The new owners of Spain-Holiday.com

Jannich Friis Petersen is 45 years old and is the current CEO for Spain-Holiday.com and with this acquisition, he states that “I have defined even more my commitment and dedication to this company that now has even more potential to offer the best holiday homes in Spain for European travellers. We’ll live exciting years in the holiday rental industry and Spain-Holiday.com will make a landmark”.

Jan Dal Lehrmann is 50 years old and has, after successful exits of Bilbasen (Co-founder) and Benjamin Media (Investor and CEO) devoted the past 8 years of his life to investing in startups, helping them with everything from common sense, strategy, scaling and internationalization via an active non-executive role. Previous investments and exits include Bilbasen, Autobutler, Bazoom and Benjamin Media. For Jan, “the potential of Spain-Holiday.com attracted me since the first time I spoke to Claus and I am sure that we will take the company to the next level”.

Kenneth Andersen is 47 years old and founder and owner of several online businesses, having a portfolio of more than 50 websites. Former Head of motors in eBay Classifieds Northern Europe and CEO of Bilbasen.dk, the leading motors vertical in Denmark. Has been working with building digital business since 1999, both as CEO and investor. Has been a member of the board in Spain-Holiday.com since 2017.

Claus Sorensen is the founder of Spain-Holiday.com and, until the end of March, its sole owner. Currently, he owns 25% of the company and since 2018 he has been developing other new projects in Denmark and Spain.

This change will not affect the normal activity of Spain-Holiday.com, which has its headquarters in Malaga (Spain) since 2002 and has 35 employees. Now, the four owners of Spain-Holiday.com will focus on providing the platform user with a unique experience when renting out or booking a holiday home in Spain, consolidating its activity in the tourism industry and setting up future expansion plans.

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Wynn Resorts ends takeover talks with Australia’s Crown Resorts

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Wynn Resorts released the following statement today:

“Following the premature disclosure of preliminary discussions, Wynn Resorts has terminated all discussions with Crown Resorts concerning any transaction.”

Shares of Melbourne-based Crown spiked 21% in Sydney, after the Las Vegas Wynn Resorts had approached Crown Resorts about a 10 billion Australian dollar takeover.

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Ailing Avianca’s plan to sell airport slots might be rejected

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Avianca is the fourth largest airline in Brazil, and it has been in judicial recovery since December of last year with debts of approximately R$500 million.

A new plan approved by Avianca’s creditors on Friday is not setting well with Brazil’s anti-trust agency, CADE. The agency said that depending on which competitors buy out Avianca’s main airport slots, the operation may not be approved.

The approved plan includes the partition of the company’s assets into 7 parts, called Individual Productive Units (UPIs). Six of the UPIs will be made up of slots (airport landing and take-off times), employees and aircraft, and the seventh will hold Avianca’s loyalty program, Amigo.

It is CADE’s expectation is that agents will find the best solution to suit the private interests of Avianca’s shareholders and its creditors as well as the public interests of Brazilian consumers.

Included in each UPI will be the registration and authorizations of routes and the right to use slots at Congonhas (SP), Guarulhos (SP), and Santos Dumont (RJ) airports, in addition to the temporary right of use of the Avianca Brasil brand and the Air Operator Certificate approved by the National Civil Aviation Agency (ANAC).

CADE stated that the best case scenario would be for a new company to assume the operation of the units for which there would be no change in the concentration level of the sector. But if the UPIs are acquired by Gol or Latam, the agency sees problems, because these two companies already have high market shares in the main routes in which Avianca operates. Both Gol and Latam have announced interest in purchasing some of the Avianca’s assets.

Azul Airlines had announced earlier that it had made an offer to acquire Avianca Brasil’s assets, including airplanes and airport slots for US$105 million.

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United Airlines appoints new VP

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United Airlines today announced Michael Leskinen has been named vice president of Corporate Development and Investor Relations. Leskinen currently serves as managing director of Investor Relations. In his expanded role Leskinen will also lead United’s strategic investment activities including United’s investment activity in partner airlines.

“Mike’s experience as an investor and knowledge of the industry, along with his success in building strong shareholder relationships, make him the right executive to also lead our corporate development efforts,” said Executive Vice President and CFO Gerry Laderman.

“We have demonstrated that United is on the right path with our strategic plan and have just begun to realize United’s full potential. As we look to the future, we will continue to make disciplined investments that further our competitive advantages. Mike’s background makes him uniquely qualified to weigh those investments against the intrinsic value in our own shares,” said President Scott Kirby.

Leskinen joined United in January 2018 and in that time has played a vital role in improving the company’s relationship with shareholders. Prior to joining United, Leskinen was an executive director at J.P. Morgan Asset Management, where he led the firm’s investment efforts in aerospace, defense, and airlines.

Leskinen received his bachelor’s degree in finance from Arizona State University and his M.B.A. from the University of Pennsylvania. Leskinen will report to Laderman. Leskinen and his wife live in Chicago and have three daughters.

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SKAL Bangkok president talks happiness

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Assumption University’s Department of Hospitality and Tourism Management organised a special speaker’s series to Celebrate the International Day of Happiness

Assumption University’s Department of Hospitality and Tourism Management marked the United Nation International Day of Happiness with a special speaker’s session, 20 March, 2019 at Assumption University’s Suvarnabhumi campus. A lively panel discussion was held, focusing on Bhutan’s Gross National Happiness, led by Bangkok’s Skal  President Andrew Wood and Assumption University Alumni  and Skalleague Pichai Visutriratana. Bhutanese students studying at Assumption University shared their thoughts regarding sustainable tourism development in the kingdom of Bhutan.

The event was organized by Tourism Policy students and Dr Scott Michael Smith from Assumption University’s Department of Hospitality and Tourism Management and Skal Bangkok’s Director of Young Skal. The “International Day of Happiness” recognises happiness as the basic human goal and calls upon government and associated agencies to make policies towards improving peoples’ general well-being. The UN also acknowledges that social, environmental and economic well-being is mandatory for global happiness.

Bhutanese student Mr. Thrizong Dawa Gyaltshen provided a historical context of Gross Domestic Happiness of Bhutan. In Bhutan, they calculate GNH using indicators such as sustainable development, environmental protection, effective government, social justice and the preservation of traditions. Student leader, Ms. Anna Purna Sharwma, shares the importance of ‘mindfulness’ as a key to happiness and suggests meditation as being an important part of her daily routine.

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US citizen international departures up 6% in 2018

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U.S. air travel to overseas markets totaled 41.8 million, up nine percent for the year. Regional results were:

  • Europe, 17.7 million travelers, up 12 percent
  • Caribbean, 8.3 million travelers, up five percent
  • Asia, 6.3 million travelers, up eight percent
  • Central America, 3.2 million travelers, up seven percent
  • Middle East, 2.4 million travelers, up six percent
  • South America, 2.1 million travelers, up nine percent
  • Oceania, 861,000 travelers, up 11 percent
  • Africa, 432,000 travelers, up seven percent

U.S. travel to North American markets totaled 51.3 million, up four percent compared to 2017.

  • To Mexico, U.S. travelers totaled a record 36.9 million, up six percent
  • ‘Tourist’ (longer haul travel) 19.1 million, up four percent.
  • U.S. air travel to Mexico (10.1 million), part of ‘Tourist’, was up three percent
  • Border (1+ nights travel) 17.8 million, increased eight percent.
  • To Canada, 14.3 million U.S. travelers, ‘flat’ year-over-year. Air travel (4.6 million) was down four percent

Annual 2018 Market Shares

U.S. air travel to overseas locations accounted for 45 percent of total U.S. outbound travel, up one percentage point from 2017. Regional composition:

    • Europe, a 19 percent share (up one percentage point from 2017);
    • Caribbean, a nine percent share; (down one percentage point from 2017)
    • Asia, a seven percent share;
    • Central America, a four percent share;
    • Middle East, a three percent share;
    • South America, a two percent share);
    • Oceania, a one percent share, and
    • Africa, almost a one percent share

North American markets received 55 percent of all U.S. international outbound travel.

    • U.S. travel to Mexico a 40 percent share;
    • To Canada, a 15 percent share (down one percentage point from 2017).

For detailed information and data tables please click here.

Canada and Mexico numbers are preliminary. The chart will reflect final changes.

In 2011, NTTO (then OTTI) began to report U.S. outbound travel monthly by all modes, expanding beyond air-only traffic. Total travel, inclusive of all modes, to Canada and Mexico is reported in addition to the air-only subtotals. The timing of this report is dependent data from the U.S. Department of Homeland Security, Stats Canada and Banco de Mexico (INEGI), respectively.

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Alitalia airline: The ongoing medley

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The journey of Gianfranco Battisti, CEO of Ferrovie Dello Stato Italiane (FS), to the United States would have borne its first fruits in the definition of the new company for Alitalia, but so far nothing is definite.

Delta Airlines, in fact, should officially join the new Alitalia, but with an initial share of only 10%. The commitment signed with the managing director of FS doubles over the next four years to satisfy the industrial plan still being defined.

The managing director of Delta, Ed Bastian, would, therefore, have confirmed the interest for a percentage of shares similar to those already held in Air France-KLM, even if now FS will have to increase its participation up to 40%.

The US carrier, in fact, will guarantee its gradual investment to the point of controlling 20% as long as the new company makes profits, a scheme that follows the operation that Delta has already successfully experienced with Aeroméxico (from 19 to 49% in the past few years.)

According to the Italian press, the Battisti-Bastian confrontation would have focused on the shares of the new team, its shareholders, and governance, while the definition of the industrial aspects of the plan will need more time. As a result, a further postponement of the presentation of the Alitalia business plan is expected to be scheduled for next March 31.

easyJet’s second thought

In a peremptory tone through a press release, easyJet definitively closes the door on a possible entry into Alitalia. “Following the conversations with FS and Delta Air Lines for the creation of a consortium that evaluated the options for future Alitalia operations, easyJet decided to withdraw. However, the airline told the Adnkronos agency of its intentions to confirm its commitment to Italy and to continue to invest in the three airports of Milan, Naples, and Venice as done in recent years, adding routes and capabilities.”

The NewCo scheme

In the new Alitalia, therefore, 50% would be controlled by FS and Delta and another 15% would be due to MEF (the Italian Ministry of Economy and Finances) through the conversion of a bridge loan. It remains to be clarified how the remaining 35% would be divided. According to the newspaper Il Messaggero, in fact, Battisti would have obtained from the Treasury the availability of Fincantieri to cover 10-15%, while an additional 20% would remain to be covered (there are talks again of CDP – Italian National Promotional Institution) or Poste ( the state mail company) through some subsidiary companies. The new Alitalia could start with a capital requirement of around 1 billion euros.

While waiting for its future to be defined, Alitalia states to have recorded a 2.7% increase in passenger numbers on intercontinental routes compared to the same month of the previous year. And passenger revenue traffic is up by 1.2% on long-haul flights compared to the same period in 2018.

February cargo revenue, as stated by Alitalia, also increased by 4.9%. The results obtained on intercontinental routes have contributed to overall revenues, allowing Alitalia to record for the fifteenth consecutive month, growth in total passenger traffic turnover.

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