BMI

Full service airline bmi has exposed a loophole in the rules over Air Passenger Duty (APD) that means all of its passengers - business and economy - will pay the lower rate, travelmole reports.
Under the APD rules, passengers travelling with airlines which have only one class of travel - even airlines like Silverjet, Eos and MAXjet that are all-business class - pay the lower rate of APD. However, passengers flying in premium economy cabins on two or three-class airlines are liable for the higher rate.

According to a notice issued by the airline, it has removed the cabin dividers between business and economy class to create just one cabin. This means that, although business passengers still benefit from seating at the front, better catering and lounge access, they will now pay the same duty as economy passengers.

British Airways said it currently has no plans to do the same. A spokesman told travelmole: 'It will be interesting to see what happens.'

The second stage of the competition to supply British Airways long-haul aircraft into the next decade is 'wide open' despite the airlines choice of Boeing for an initial smaller order of up to eight aircraft, Robert Boyle, BA's commercial director, said today.

Earlier, BA announced it has ordered four Boeing 777-200 ER aircraft for delivery during early 2009 and has taken options on four more for delivery the following year. But Mr Boyle said that the decision to opt for Boeing 777s over Airbus A330s was 'a very close decision'.

He said: 'What tipped the balance in the end was the fact that for this initial order, which is for a small number of aircraft, it''s easier to fit them in with an existing fleet,' noting that BA already has 43 Boeing 777s.
Mr Boyle added: 'I do want to emphasise that the competition which is still running for growth and replacement aircraft into the next decade, which will be the much larger order, is still absolutely wide open.' He said considerations about fleet compatibility with existing aircraft will not apply for the second part of the competition, the result of which will be announced in the second half of 2007.

Meanwhile BA turned options for four single-aisle Airbus A320 shorthaul aircraft into firm orders yesterday. The aircraft will have 156 seats in a two-class configuration and will be powered by International Aero Engines V2527-A5. The aircraft will be delivered in 2008 to replace Airbus A320 family aircraft that are leaving the fleet. The order, worth some $270 million at list prices, is however dwarfed by the order for four wide-body Boeing 777s worth roughly four times that amount.

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EASYJET

Low-cost airline easyJet celebrated its 20 millionth passenger at Gatwick Airport yesterday. The number was expected to be reached some time yesterday afternoon, with the passenger to be given free flights to Marrakech.

easyJet's UK market manager, Katie Stitson, said: 'Today marks a great achievement for us. Since operations began in 1999, 20m passengers have chosen to fly with easyJet from Gatwick, with more than 5.7m passengers in the past 12 months.'

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