Looking to expand into Europe, Hong King Airlines has ordered 10 Airbus A380 aircraft worth approximately $3.8bn, or £2.5bn, at list prices.

The Financial Times and the BBC both reported that the deal was at risk of being derailed by a dispute between the European Union and China.

However, the airline’s head of corporate governance, Kenneth Thong, told a television interview with Bloomberg that the order would go ahead.

This was despite the Chinese government’s opposition to an EU plan that international airlines comply with a scheme to tackle carbon emissions.

Hong Kong Airlines (HKA), born in 2011 as CR Airways, is likely to have got a large discount on the order for the A380, Airbus’s flagship super-jumbo. The airline is small by Asian airline standards with fewer than 20 planes, but is thought to have 100 aircraft on order.

It is currently providing passenger and cargo services with neighbouring countries and Mr Thong said that the aircraft were needed to boost HKA’s growth, particularly business class services with Europe.

Mr Thong told Bloomberg television in Hong Kong: “We think the business connection between Asia and Europe is going to be very exciting for the next couple of years, after the current (economic) crisis is over. We are planning for the aftermath.”

While rival Boeing posted its 2011 sales report last week, Airbus is expected to acknowledge the HKA contract formally with its 2011 annual report on January 17.

With big order backlogs, the world’s two largest aircraft makers are looking for ways to streamline production and, in Boeing’s case, to source parts from more suppliers to increase throughput.

Source: The Manufacturer

Picture: Ndecam

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The holiday and baggage handling arm of Emirates Airline, Dnata, has bought control of one of the largest online travel agents in Britain.

The company has been on a sort of buying spree of late, as they attempt to strengthen their position in the online travel market.

The company recently bought Travel Republic for an undisclosed fee, according to The National, and it has the potential to channel more UK traffic through the Dubai company.

Over two million people a year use Travel Republic’s website to book their holidays, and Iain Andrew, the divisional senior vice president of Dnata’s travel business, told The National: “Travel Republic will complement our existing leisure and corporate travel services in Dubai and internationally.

“The company has an impressive, dynamic management team and I can be confident that together we can further develop the business, in line with the outstanding service and quality for which Dnata is renowned.”

Dnata is part of the Emirates Group and has more than 20,000 employees, spread across 76 airports around the world, who are involved in ground handling, flight catering and IT services.

In the past six years the company has spread from being primarily focused on Dubai, to being a global aviation firm and it has managed to increase its revenues fourfold.

Travel Republic, which is now owned by Dnata, has an impressive reputation for building business around the demand from people to book their travel online, independent of traditional tour operators.

Since Travel Republic launched in 2003, it has continued to grow and is now one of a handful of travel agents to dominate the online market in the UK along with Expedia and Lastminute.com.

Kane Pirie, the managing director of Travel Republic, also spoke to The National saying: “We are excited that Travel Republic has joined the Dnata family. Dnata is forward-thinking and ambitious and will help accelerate our growth across Europe and beyond.”

Picture: Simon_sees

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