HONG KONG: Fuel Surcharges Cause Increase In Flight Tickets Out Of Hong Kong

Travellers on long-haul flights out of Hong Kong will have to pay up to HK$600 (US$76) more if oil prices keep rising and the government allows airlines to recoup fuel costs.

At least four industry sources said they were confident the Civil Aviation Department would deregulate the setting of fuel surcharges in the next few months, giving airlines some wiggle room when oil prices rise.

The department launched a year-long review of its policy on fuel surcharges last March but when approached last week, would only say its new policy was being finalised.

Long-haul flights out of Hong Kong will be the most affected if regulation on fuel surcharges is lifted.

Upon completion of the study, the Civil Aviation Department will consult stakeholders on the proposed way forward with a view to formulating the relevant policy.

Airlines could previously charge fuel fees on passenger and cargo flights from Hong Kong but in January 2016, the aviation regulator scrapped this as oil prices fell to US$35 a barrel from a peak of US$110.

The price of oil as of last week was US$74 a barrel and the last time oil prices were at that level in November 2014.

Airlines with flights originating from Hong Kong were allowed to charge an extra HK$623 for a long-haul flight and HK$143 for regional ones.

All four airlines based in Hong Kong, including Cathay Pacific Airways, had been lobbying over the past year for the surcharge to be reinstated.

A spokeswoman for Cathay Pacific and subsidiary Cathay Dragon would not comment other than stating the airline was keenly awaiting the outcome of the review.

Budget carrier Hong Kong Express only said it advocates pricing transparency.

Competition would influence airlines, particularly Cathay Pacific, to pass on half of the fuel price increase to passengers flying out of Hong Kong.

We expect all the carriers to successfully implement the fuel surcharges, Png said, adding that airlines might grant more discounts on underlying airfares to retain their market share.

About 87 airlines fly in and out of Hong Kong.

Cathay currently adds a fuel surcharge for flights arriving in the city as this is not regulated.

Passengers pay HK$116 for regional flights and HK$516 for long-haul flights.

The reintroduction of a fuel surcharge for outbound flights would harm the city’s competitiveness as a travel hub.

The fuel surcharge mechanism just has to be more transparent so passengers know exactly what they’re paying for.

It is important for airlines to have the power to make their own decisions.

However the fuel surcharge mechanism has to be more transparent so passengers won’t be out of pocket.

Surcharge should be directly linked to the cost of oil rather than the current formula used by authorities.

The department had on multiple occasions refused to disclose its calculations on price regulations.

In launching its review last March, the department had signalled that deregulation would occur, citing the example of other countries.

It said it was searching for the best way to follow similar trends.

Cathay Pacific was caught off guard more than two years ago when the fuel surcharge was suspended.

At the time, the airline’s chief financial officer Martin Murray said the company would be lobbying hard for the reinstatement of the surcharge.

The city’s biggest airline pays for its jet fuel up to four years in advance to secure a significant portion at a slightly discounted rate from the market price of oil.

However, the dramatic collapse in oil prices saw rivals who did not hedge as much profit from lower fuel costs and pass on savings to consumers through cheaper airfares.

Four years straight of fuel hedging losses totalled a cost of HK$24.2 billion (US$3.08 billion) for Cathay Pacific, which led to the struggles of the airline in recent years.

Fuel Surcharge Policies Worldwide

Hong Kong, Japan and Brazil are among the very few jurisdictions in the world that regulate fuel surcharges.

Hong Kong

When oil prices reach a certain level, typically around US$50 a barrel, the city’s civil aviation regulator authorises a surcharge to be added by airlines to a price of a ticket.

Airlines submit a figure they think reflects the oil price and the authorities set the final price based on all airline applications. The method of calculation has never been disclosed.

Japan

A transparent system informs airlines and travellers how much extra they would pay for international flights.

The fuel surcharge cost for passengers is based on the destination and a fixed price band for oil.

Brazil

Fuel surcharges are prohibited in one of Latin America’s largest countries and economies.

This is based on the belief that fuel costs and other carrier-imposed surcharges should be covered in the final airfare price.

Fuel surcharges originating from Brazil do not exist.

Regulators maintain that the stance is fair and gives more transparency to consumers.

European Union

Any airline operating from inside the European Union is free to add surcharges but should indicate the final ticket price at the start of the booking process, including taxes, airport charges and fees.

Lufthansa and British Airways are testing a new class of airfare in Hong Kong, which may cut prices of regular economy-class tickets for flights from the city by nearly 50 per cent.

Passengers will get no allowance for check-in luggage, board last, and forfeit selection of their seats, flight times or even carriers.

We are asking the traveller to give us this flexibility and in return we give them a very attractive price.

That’s how the deal works, said Malte Haut, general manager for the Lufthansa Group’s three airline brands in Hong Kong, southern China and Macau, which include Swiss International Air Lines and Austrian Airlines.

Lufthansa is using Hong Kong as the first international market to test its concept.

Lufthansa, Europe’s largest airline in terms of passengers and British Airways are among the first traditional carriers to alter their offerings with special discounts as passengers increasingly opt for low-cost fares and no-frills service.

Working alongside its Swiss and Austrian partners, Lufthansa wants its passengers to sacrifice flexibility, such as not knowing the exact airline or flight times until a few days before departure, to enjoy cheaper fares.

The German airline giant is using Hong Kong as the first international market to test its concept.

We are asking the traveller to give us this flexibility and in return we give them a very attractive price
Malte Haut, Lufthansa

In its trial programme, Lufthansa is offering a discounted one-way flat fare of HK$2,488 (US$317) to 13 destinations, including Barcelona, Milan and Venice.

Flights from Hong Kong to Lisbon under the scheme cost HK$4,976, but using the regular Lufthansa search function, the lowest price on the same selected date was HK$9,441.

British Airways is exploring additional enticements: lower fares for no checked-in luggage, boarding last, and seating choices left to the airline.

We know that when our customers travel with us their needs vary from trip to trip, the carrier’s chief commercial officer Adam Daniels said.

We need to ensure that the fares we provide reflect those differing needs so customers can select the best option for them on that occasion.

Low-cost Norwegian Air Shuttle has emerged as one of the main challengers to traditional airlines, initially on transatlantic routes and now in Asia.

Yet despite its popularity, Norwegian is under significant financial pressure amid heavy losses from its low fares and expansion.

US carriers have rolled out similar basic-economy fares, with a focus first on domestic flights while rolling out deals for flights to Europe.

Why cheap long-haul flights could be the best deal for savvy travellers

Keen Hong Kong travellers stand to benefit from the higher number of cheaper long-distance flights.

Cathay Pacific Airways last month ruled out any immediate plans to introduce similar basic- economy fare deals that restrict typical booking options.

But CEO Rupert Hogg noted customer behaviour had been changing a lot and forcing full-service airlines to reconsider conventional pricing models.

Cathay Pacific Airways has for now ruled out introducing similar deals.

People are travelling much more frequently and for lots of different reasons, he said.

As people’s needs change and get more varied, clearly we will start looking at how best we can meet those needs.

Airlines need to be very open-minded in the current market.

With budget airlines flying long-distance routes more frequently and reaping greater success, traditional carriers were starting to follow competitors’ offerings and travel conditions with reactive pricing.


Tourism Observer

GERMANY: Lufthansa Will Grow Eurowings,

For years, as low cost airlines have grown in Europe, the Lufthansa Group mostly has stuck to what it knows best — carrying business travelers and higher-end leisure customers from its four key hubs, Zurich, Vienna, Frankfurt, and Munich, to key world capitals in Europe and elsewhere.

But like every other legacy airline group in Europe, Lufthansa, which owns Lufthansa Airlines, Austrian Airlines and Swiss International Air Lines, is feeling more squeeze than ever before from discounters like Ryanair and EasyJet. So after making some half-hearted attempts in recent years to try to compete with lower cost airlines, Lufthansa Group is telling investors it finally has an aggressive plan to thwart the competition.

Lufthansa will grow its low cost subsidiary, Eurowings, in the coming years, hoping passengers will choose it over better-known competition. The airline is not new — it started flying in 1994, and Lufthansa Group assumed control about a decade ago — but until recently it has been a bit player, with a fleet and customer base far smaller than Ryanair’s or EasyJet’s.

Now, through proposed deals with Brussels Airlines and Air Berlin, Lufthansa Group is poised to turn Eurowings into the third-largest point-to-point airline in Europe by next summer, according to Group CEO Carsten Spohr. Eurowings, which historically has not flown traditional hubs, has a much different model than the hub-and-spoke full-service airlines of the Lufthansa Group.

Soon, Spohr said, Eurowings could have more than 160 aircraft, possibly giving it enough scale to compete with Ryanair, which is a little more than twice that size. That’s a major jump from the 30 or so aircraft Eurowings had a few years ago, before it merged operations with Germanwings, another Lufthansa-owned discounter. It’s also a big increase from the roughly 90 aircraft Eurowings operates today.

The decision to grow Eurowings comes as Ryanair, Europe’s most powerful discounter, expands into Frankfurt, Lufthansa’s top hub, for the first time. Ryanair made its announcement on Wednesday as Lufthansa Group reported its third quarter earnings and shared plans for Eurowings’ expansion. Lufthansa Group CEO Carsten Spohr told analysts he was watching the development “with great interest,” promising his company would “react as appropriate.”

Eurowings still does not operate from Frankfurt, though that could change at some point. Lufthansa Group has been increasingly willing to permit Eurowings to operate from its hubs, with the carrier expanding in Vienna this year and Munich next year. Eurowings is also beginning to expand its long-haul operation with widebody aircraft.

“Lufthansa has built an unrivaled operation here in Frankfurt that operates probably the strongest network of all European airlines in Europe,” Spohr said. “We are certainly not nervous to take on more competition. As a matter of fact we are competing already in many airports in Europe.”

Having expanded Eurowings by merging its brand with Germanwings, Spohr is now turning his attention to inorganic growth. New aircraft will help Germanwings add point-to-point routes outside of Germany.

“Eurowings is already the market leader in direct traffic in our home markets,” Spohr said. “But we also want to grow in other markets, and for that, we need partners.”

Perhaps most interesting is Lufthansa Group’s recent decision to wet-lease about 35 aircraft from Air Berlin for six years, beginning in March. Under the agreement, Air Berlin pilots and flight attendants will work the flights, but Eurowings will sell tickets and market the operation. It’s a relatively unusual arrangement, with wet-leases more commonly used by smaller airlines and charter carriers, but Spohr notes it’s cheaper than buying new planes.

“We plan to increase our presence in attractive European markets where we may already be active today,” Spohr said about plans for the Air Berlin fleet.

The cash will be vital for Air Berlin, which has been struggling to make money, disappointing Etihad Airways, one of its larger shareholders. And for Lufthansa Group, the deal helps sideline a competitor. That’s important, Spohr said Wednesday, because the European market has seen fewer airline mergers than its U.S. counterpart.

“Another reason why this step is so important is that it helps drive consolidation, and thereby the capacity discipline that’s so urgently needed in the European airline industry,” Spohr said.

Lufthansa Group also plans to transfer some Brussels Airlines aircraft to Eurowings, assuming the company is able to acquire the 55 percent of the Belgium-based carrier it does not already own. Lufthansa Group’s board approved the acquisition in September, and the transaction is supposed to close early next year.

But on Wednesday’s call, Spohr said it is too early to know how Eurowings would use the aircraft. He said the company will first focus on absorbing the Air Berlin aircraft.

“We’ll take the year of ‘17 to jointly analyze the integration to Eurowings when it comes to brand, when it comes to overhead, and which synergies will be realized,” Spohr said.

Bombardier C Series Aircraft Route-proving Takes Off In Europe

Bombardier Commercial Aircraft announced that it has commenced CS100 aircraft route-proving exercises in Europe. The month-long program is underway with a dedicated CS100 route-proving aircraft operated by Bombardier from launch operator Swiss International Air Lines’ (“SWISS”) base in Zurich, Switzerland. The route-proving exercises are scheduled to include main European cities such a Brussels, Vienna and Warsaw. Additionally, Bombardier also confirmed that the last of eight flight test vehicles – the second CS300 aircraft – successfully entered the flight test program in Mirabel, Québec last week.

The European route-proving program is being conducted as SWISS readies for the CS100 aircraft’s entry-into-service (EIS). The airline’s first CS100 aircraft is scheduled to be delivered by Bombardier in Q2 2016.

“As the launch customer and the first airline that will operate the CS100 aircraft, the European route- proving program is very important to us and will provide a real indication of how the aircraft will operate in our network when we take delivery of our first CS100 aircraft in the next few months,” said Peter Wojahn, Chief Technical Officer, Swiss International Air Lines.

“The CS100 aircraft continues to attract curiosity and keen interest when visiting airports around the world and now, it will be spotted in cities across SWISS’ network — performing as if already a member of the airline’s fleet,” said Fred Cromer, President, Bombardier Commercial Aircraft. “It’s an exciting time as we look forward to these flights and to the close collaboration with our friends at SWISS — together we are preparing for the C Series aircraft’s entry-into-service. The route-proving flights will bring the C Series aircraft closer to the flying public in Europe who will ultimately be amongst the first in the world to fly aboard the aircraft – the first all-new airliner built for the 100- to 150-seat market in close to three decades.”

“March is turning out to be a very productive month for the C Series aircraft program. In addition to the next phase of route-proving, last week we celebrated the first flight of the eighth and final flight test vehicle. It’s only the second CS300 flight test vehicle in the program and one that is equipped with a full production interior,” said Rob Dewar, Vice President, C Series Aircraft Program, Bombardier Commercial Aircraft. “We’re delighted that its test program, which is dedicated to cabin and interior certification, is off to a great start and progressing extremely well.”

The CS100 aircraft will conduct route-proving flights using typical airline flight routings and operational procedures. The flights give a really good indication of how the C Series aircraft will perform in a typical airline schedule to and from different airports. Airfield performance, landings, airport turnarounds and on-ground operations are some of the important characteristics that will be observed.

The European route-proving program follows one conducted last year across North America that included more than 35 cities.

RUSSIA: Rossiya Airlines

Rossiya Airlines JSC , sometimes branded as Rossiya - Russian Airlines is a Russian airline headquartered in Saint Petersburg with its hub at Pulkovo Airport. It is predominantly owned by Aeroflot and serves domestic and some European destinations and additionally operates the aircraft fleet for the Government of Russia.

The airline was established in 1992 and is wholly owned by the Russian government. In 2006 the Russian government merged Rossiya Airlines with Pulkovo Aviation Enterprise and on October 29 the new airline started flying under the name Rossiya. The merger process began in December 2004. In November 2006 it was announced that the merger had been completed and Rossiya Airlines was registered in Saint Petersburg on 9 October 2006 and has a branch in Moscow and 54 offices in Russia and abroad.

In February 2010, the Russian government announced that all regional airlines owned by the state through the holding company 'Rostechnologii' would be consolidated with the national carrier Aeroflot in order to increase the airlines' financial viability.[6] The airline has operated flights under Aeroflot's "SU" since 30 March 2014.

Arising from the merger with Pulkovo Airlines, the bulk of the scheduled service operation is from Russia's second-largest city, St Petersburg, where Pulkovo was the dominant airline, and Rossiya continues to be. Operations based in Moscow are predominantly non-scheduled ones for state organisations, or flights operated on behalf of Aeroflot; Rossiya continues Pulkovo's lead role on the Moscow-St Petersburg route.

Rossiya has codeshare agreements with the following airlines:

- Aeroflot (SkyTeam)
- Air Astana
- Air France (SkyTeam)
- Air Moldova
- airBaltic
- Austrian Airlines (Star Alliance)
- Belavia
- Czech Airlines (SkyTeam)
- Finnair (Oneworld)
- Hainan Airlines
- Iberia (Oneworld)
- Icelandair
- KLM (SkyTeam)
- Korean Air (SkyTeam)
- LOT Polish Airlines (Star Alliance)
- Norwegian Air Shuttle
- Scandinavian Airlines (Star Alliance)
- Swiss International Air Lines (Star Alliance)

USA: Bombardier CSeries Route-Proving Starts In Europe

Bombardier announced today that it has started the CS100 route-proving program in Europe, as the jetliner nears its long-awaited entry into service (EIS) with launch customer Swiss International Air Lines in the second quarter of this year.

The program is expected to take place during a month, and just as the program conducted last year across North America, it will assess the airfield performance, landings, turnarounds and on-ground operations of the aircraft. These data will provide an accurate indication of how the aircraft will perform in a typical airline schedule to and from different airports.

“As the launch customer and the first airline that will operate the CS100 aircraft, the European route- proving program is very important to us and will provide a real indication of how the aircraft will operate in our network when we take delivery of our first CS100 aircraft in the next few months” said Peter Wojahn, Chief Technical Officer, Swiss International Air Lines.

The month-long route-proving program is being operated by Bombardier from Swiss International Air Lines’ Zurich hub. According to Bombardier, the program will include flights to several major European cities including Brussels, Vienna and Warsaw.

“The route-proving flights will bring the C Series aircraft closer to the flying public in Europe who will ultimately be amongst the first in the world to fly aboard the aircraft – the first all-new airliner built for the 100- to 150-seat market in close to three decades” said Fred Cromer, President, Bombardier Commercial Aircraft.

Additionally, Bombardier confirmed that its eighth CSeries Flight Test Vehicle (FTV), the second CS300, has joined the flight test program last week. According to VP-CSeries Aircraft Program Rob Dewar, the company is “Delighted that its test program, which is dedicated to cabin and interior certification, is off to a great start and progressing extremely well.”

The CSeries program has been plagued by ever-increasing cost overruns and a schedule running two years behind the EIS, causing severe financial problems to Bombardier. Last October, the Government of Québec announced a US$1 billion investment in the program.

Last December, the airframer received the certification of the CS100, and it is expected to receive the certification of the CS300 in the coming months, and its EIS would take place in the second half of the year.

As of today, Bombardier has received 678 commitments for both variants, with 243 firm orders. Last month, Air Canada announced a deal to acquire up to 75 CSeries, Based on the list price, the order is valued at approximately US$3.8 billion.

Airline Efficiency Can Be Measured From Employees Per Aircraft Ratio

Employees per aircraft provide one measure of an airlines efficiency with respect to the average number of all its employees per unit of production. The smaller the number of employees per aircraft indicates greater efficiency. An adjustment for average aircraft size would also be relevant when analyzing the number of ground employees an airline employs per aircraft.

The employees per aircraft ratio of Ireland’s Ryanair is just 29.69 because its 9,501 employees are looking after a fleet of 320 aircraft.

SyrianAir (Syrian Arab Airlines) has an employees per aircraft ratio of 400 as its 4,000 employees are taking care of 10 aircraft only!

After SyrianAir, the state-owned Pakistan International Airlines (PIA) has the world’s second worst employees per aircraft ratio of 391 employees per plane.

Employees Per Aircraft Ratio is deemed to be one of the most vital benchmarks of calculating the productivity any airline around the world.

Here follows the staff-to-aircraft ratios of world’s 40 most famous international carriers:

The employees per aircraft ratio of Ireland’s Ryanair is just 29.69 because its 9,501 employees are looking after a fleet of 320 aircraft.

The employees per aircraft of Garuda Indonesia, the flag carrier of Indonesia, is 56.15 because its 7,861 employees are looking after a fleet of 140 aircraft.

The employee-to-aircraft ratio of Turkish Airlines is just 63.36 because its 18,882 employees are looking after a fleet of 298 aircraft.

The employees per aircraft of American Southwest Airlines is only 67.76 only because its 46,278 employees are looking after a fleet of 683 aircraft. Its revenues stand at $18.6 billion.

The employees per aircraft of Air China is just 70.39 because its 25,269 employees are looking after a fleet of 359 aircraft.

The employees-per-airplane ratio of Finland’s FinnAir is 76.01 because its 5,473 employees are looking after a fleet of 72 aircraft.

The employees per aircraft of the Caribbean Airlines of Trinidad and Tobago is 76.19 because its 1600 employees are looking after a fleet of 21 aircraft.

The employees per aircraft of Scandinavian Airlines or SAS is 88.70 because its 12,329 employees are looking after a fleet of 139 aircraft.

The employee-to-aircraft ratio of Swiss International Air Lines is 97.19 because its 8,067 employees are looking after a fleet of 83 aircraft.

The employee-to-aircraft ratio of Air New Zealand Limited is 101.85 because its 11,000 employees are looking after a fleet of 108 aircraft.

The employee-to-aircraft of American Delta Airlines is 110.80 only because its 80,000 employees are looking after a fleet of 722 aircraft. Its revenues stand at $40.3 billion.

The employees-per-aircraft ratio of International Airlines Group is 113.30 only because its 59,484 employees are looking after a fleet of 525 aircraft. Its revenues stand at $22.7 billion.

The staff-to-aircraft ratio of United Airlines is 117.48 only because its 84,000 employees are looking after a fleet of 715 aircraft. Its revenues stand at $38.9 billion.

The employees per aircraft of American Airlines is 120.66 only because its113,300 employees are looking after a fleet of 939 aircraft. The revenues of American Airlines stand at $42.7 billion.

The staff-to-plane ratio of Taiwan’s EVA Air is just 124.04 because its 7,815 employees are looking after a fleet of 63 aircraft.

The employee-to-aircraft ratio of Italy’s Alitalia is just 127.60 because its 14,036 employees are looking after a fleet of 110 aircraft.

The employees per aircraft ratio of British Airways is just 135.07 because its 39,710 employees are looking after a fleet of 294 aircraft.

The employee-to-aircraft ratio of Spain’s Iberia Air Lines is 140.63 because its 18,000 employees are looking after a fleet of 128 aircraft.

The employees per aircraft of Japan Airlines is 141.41 because its 31,534 employees are looking after a fleet of 223 aircraft.

The employees per aircraft ratio of Egypt Air is 142.86 because its 9,000 employees are looking after a fleet of 63 aircraft.

The employee-to-aircraft ratio of UAE’s Eithad Airlines is 148.84 because its 17,712 employees are looking after a fleet of 119 aircraft.

The employees per aircraft ratio of Saudi Arabian Airlines is just 152.40 because its 24,842 employees are looking after a fleet of 163 aircraft.

The employees per aircraft of Air Canada is just 157.89 because its 27,000 employees are looking after a fleet of 171 aircraft.

The employees per aircraft ratio of Chile’s LATAM is just 165.85 because its 53,072 employees are looking after a fleet of 320 aircraft.

The employee-to-aircraft ratio of China Eastern Airlines is 166.36 only because its 68,874 employees are looking after a fleet of 414 aircraft. Its revenues stand at $14.6 billion.

The employees per aircraft ratio of Air France-KLM Airlines is 166.67 only because its 94,666 employees are looking after a fleet of 568 aircraft. Its revenues stand at $27.8 billion.

In case of Iran Air, it is 174.41 because its 7,500 employees are looking after a fleet of 43 aircraft.

The employees per aircraft ratio of China Southern Airlines is 175.78 only because its 90,000 employees are looking after a fleet of 512 aircraft. Its revenues stand at $17.6 billion.

The employees per aircraft ratio of Qatar Airways is just 179.19 because its 31,000 employees are looking after a fleet of 173 aircraft.

The employees per aircraft ratio of Malaysian Airlines is just 181.82 because its 14,000 employees are looking after a fleet of 77 aircraft.

The employee-to-aircraft ratio of Russian Aeroflot is 187.21 because its 30,328 employees are looking after a fleet of 162 aircraft.

The employees per aircraft of Lufthansa Airlines is 193.13 because its 118,781 employees are looking after a fleet of 615 aircraft. Its revenues stand at $33.8 billion.

The employees per aircraft of the South African Airways is 216.81 because its 11,491 employees are looking after a fleet of 53 aircraft.

The employees per aircraft ratio of Australian Qantas is 218.49 because its 28,622 employees are looking after a fleet of 131 aircraft.

The employee-to-aircraft ratio of Singapore Airlines is 219.84 because its 23,963 employees are looking after a fleet of 109 aircraft.

The employee-to-aircraft ratio of Emirates Airlines is 231.53 because its 56,725 employees are looking after a fleet of 245 aircraft. Its revenues stand at $24.2 billion.

The employees per aircraft ratio of Sri Lankan Airlines is 283.33 because its 6,800 employees are looking after a fleet of 24 aircraft.

The employees per aircraft ratio of Air France is 295.97 because its 69,553 employees are looking after a fleet of 235 aircraft.

The employees per aircraft ratio of Thai Airways is 308.82 because its 25,323 employees are looking after a fleet of 82 aircraft.

Pakistan International Airlines (PIA) has the world’s second worst employees per aircraft ratio of 391 staff per plane.

SyrianAir (Syrian Arab Airlines) has an employees per aircraft ratio of 400 as its 4,000 employees are taking care of 10 aircraft only!

SWITZERLAND: SWISS Welcomes First Boeing 777-300ER Aircraft

Swiss International Air Lines (SWISS) took delivery of the first of nine new Boeing 777-300ER aircraft at Zurich Airport at 9:14 a.m. on January 30, marking a new era in Switzerland's aviation history.

The 777-300ER aircraft, which bears the registration HB-JNA and name "November Alpha", was welcomed with the loud applause of a large crowd of aviation fans and other keen spectators. The youngest and biggest member of the SWISS fleet was flown directly to Zurich from Boeing's Everett Factory in Seattle, the U.S.

On January 29, SWISS opened First Class, Business Class and Senator Lounge facilities in Zurich Airport's Terminal E. The two events usher in a new era for SWISS, in the air and on the ground, under its "Next-Generation Airline of Switzerland" strategy.

EU Commission Seeks Airline Pacts In Gulf To Stop Subsidies

The European Union's transport chief sought more leverage to fight alleged unfair subsidies to airlines based in the Persian Gulf in a bid to create a "level playing field" for EU flag carriers.

European Transport Commissioner Violeta Bulc asked EU governments for authority to negotiate aviation agreements with the six countries that belong to the Gulf Cooperation Council. Curbing any market-distorting aid to operators such as Emirates, Etihad Airways and Qatar Airways would be a goal of the negotiations.

Bulc's request is part of a European aviation package that also seeks deals with China, the Association of Southeast Asian Nations, Mexico, Turkey and Armenia; foresees guidelines on the control of EU airlines; and proposes a regulatory framework for the use of drones. The targeted accords with the Persian Gulf states are a priority because countries such as the United Arab Emirates have fast-growing aviation markets and the issue of subsidies in the GCC has become politically sensitive in Europe.

"While the additional connections provided by the Gulf airlines are welcome, there are concerns regarding the conditions under which they operate," the European Commission said in a statement about the package on Monday in Brussels. "The right way forward" is "to bridge the interests of both sides by creating conditions that will allow further market development and growth based on common rules and transparency."

The commission, the 28-nation EU's regulatory arm, is preparing for a bigger battle over state aid to Gulf-based airlines after national governments in Europe joined European carriers such as Air France-KLM Group and Deutsche Lufthansa in raising the issue.

France and Germany voiced concerns about foreign subsidies earlier this year at an EU meeting where transport ministers debated global aviation competition. The chief executive officers of several European airlines, including Air France-KLM and Lufthansa, wrote a letter to Bulc in December 2014 urging her to step up efforts to tackle government support for Gulf rivals.

Total seats on scheduled flights between the EU and the GCC nations have more than tripled over the past decade to 39 million this year, the commission said on Monday. The UAE has more direct traffic with the EU than China, India and Japan combined, according to the commission.

Bulc said she wants EU governments to give her "open and dynamic" mandates to negotiate aviation agreements with the GCC, which also includes Qatar, Saudi Arabia, Oman, Kuwait and Bahrain. The deals being sought are dubbed "comprehensive" because, in addition to provisions on "fair competition," they would cover such areas as market access, investment and technologies for air-traffic management.

At a press conference, Bulc refused to be drawn on the question of subsidies in the Persian Gulf.

"I am very careful about that," she said. "I don't want to generalize in this matter. And that's exactly why we are proposing comprehensive bilateral agreements where fair competition is one of the clauses. We really want to address it in a very comprehensive level."

As part of any accords, she said the EU would be prepared to ease its 49 percent limit on foreign ownership of airlines based in the bloc in return for reciprocal rights abroad for European companies. Etihad Airways has a 49 percent stake in Alitalia and a 29 percent holding in Air Berlin.

An existing EU aviation agreement with the United States has failed to abolish foreign-ownership curbs because of American defense of the country's 25 percent limit on voting equity, while a European pact with Canada foresees the scrapping of control restrictions once the Canadian government takes the necessary steps.

For investors in countries that have no derogation from the EU's limit on foreign ownership of carriers, the aviation package promises "interpretative guidelines" at a later stage on the enforcement of the cap. The limit is enshrined in a 2008 European law requiring that EU states and/or nationals own more than 50 percent of any airline based in the bloc and "effectively control" it.

In their letter to Bulc a year ago, the group of European airline CEOs also pressed her to ensure that foreign investments in EU-based airlines "strictly comply" with the 2008 legislation. In addition to the heads of Air France-KLM and Lufthansa, the letter was signed by the CEOs of three Lufthansa units: Austrian Airlines, Brussels Airlines and Swiss International Air Lines.

The goal of the planned guidelines is to "bring more legal certainty for airlines and investors," Bulc said on Monday.