■ AirlinesQantas alliance blocked
Australian and New Zealand regulators rejected a plan by Qantas Airways Ltd to pay NZ$550 million (US$300 million) for a stake in Air New Zealand, calling it "highly anti-competitive." The decision undermines plans by the biggest airlines in the two nations to cut costs by uniting to control 90 percent of air traffic. "Passengers will be denied choice and increased air fares will be inevitable," said Allan Fels, chairman of the Australian Competition and Consumer Commission. Qantas needs to cut costs to fend off a challenge from Richard Branson's Virgin Blue Airlines Pty in Australia and to cope with a plunge in air travel, aggravated by the outbreak of a deadly virus in Asia. Air New Zealand, rescued from bankruptcy in 2001 by a government bailout, says it may find it difficult to compete with a challenge from Qantas in its home market.
■ Tourism
Thailand urges local travel
Thailand urged citizens to travel locally this month during the nation's biggest festival season to compensate for a loss of earnings as a deadly virus outbreak prompts overseas travelers to stay home. Thailand this week cut its tourist revenue forecast for this year to 340 billion baht (US$7.9 billion) from 360 billion baht as visitors cancel trips because of the spread of the respiratory illness. "Thais should go out and travel," Deputy Prime Minister Somkid Jatusripitak told reporters. "They should not panic about the disease. The government has taken steps to control it." The disease has taken more than a hundred lives worldwide, mostly in Asia. Thailand said this month it would "discourage" tours from affected areas, and asked visitors from China, Hong Kong, Singapore, Taiwan and Vietnam to wear masks and to isolate themselves for two weeks. To attract locals, Thai tour operators plan to cut rates for package tours by as much as 40 percent starting next month, Tourism Minister Sontaya Kunplome.
■ Concord
BA plans to retire fleet
British Airways Plc, Europe's biggest airline, plans to retire its Concorde supersonic jetliner fleet in October as slowing economies and conflict in Iraq hurt demand for its premium trans-Atlantic flights. Air France also said it will end Concorde flights on Oct. 31. "Bringing forward Concorde's retirement is a prudent business decision," said British Airways Chief Executive Rod Eddington in a Regulatory News Service statement. "While the threat of war and resulting military conflict have had a further impact on premium travel demand, the decision to retire Concorde has been based on a long-term revenue and cost trend rather than recent events."
■ Unemployment
Jobs in Australia vanish
Australia's unemployment rate jumped to 6.2 percent in March and economists say it may go higher as a deadly respiratory disease reduces tourism, forcing companies such as Qantas Airways Ltd to fire workers. The economy unexpectedly shed 42,800 jobs, all of them full-time, and the unemployment rate rose from 6 percent in February, as consumer confidence fell to a two-year low because of the war in Iraq and a drought across more than two-thirds of the country. The Australian Tourism Commission said this week international arrivals had fallen as much as 20 percent in the past three weeks because of the disease and war in Iraq.
RSS