Will the Gulf’s flying gentry consider venturing below stairs?

Updated 29 December 2017
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Will the Gulf’s flying gentry consider venturing below stairs?

The arrival of Emirates at Stansted, a hub for Ryanair, sets up some potentially interesting options as the luxury and budget ends of air travel respond to the shared experience of tougher competition.
While Etihad’s ill-fated codeshare alliance strategy failed to deliver on its ambitious hopes following the collapse of both Air Berlin and Alitalia, there is still considerable interest in codeshare combinations between big global carriers and their low-cost cousins serving regions from Europe to Asia — and that do not require vast investments.
There has been no hint from either Emirates or Ryanair of any desire for future collaboration, but Ryanair CEO Michael O’Leary has long held the belief that carriers such as his would eventually provide the spokes to the hub model.
“The low-fare airlines will be doing most of the feed for the flag carriers,” he told Bloomberg in a 2015 interview. He saw it as taking between five and 10 years for that to happen.
A similar process has already started in the Gulf with the tie-up between Emirates and sister low-cost carrier flydubai.
Last week easyjet’s Europe managing director also told a German newspaper that it had received “very many inquiries” from other airlines wanting to use his airline as their feeder.
The last year has seen upstart low-cost carriers from Norwegian Air to Wizz Air make encroachments into the long-haul market.
It all makes for an interesting global aviation market in 2018 which may see carriers with very different operating models and passenger expectations becoming unlikely bedfellows.


Libya’s National Oil against paying ‘ransom’ to reopen El Sharara field

Updated 14 December 2018
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Libya’s National Oil against paying ‘ransom’ to reopen El Sharara field

  • Ransom payment would set dangerous precedent
  • NOC declared force majeure on exports on Monday

BENGHAZI: Libya’s state-owned National Oil Corp. (NOC) said it was against paying a ransom to an armed group that has halted crude production at the country’s largest oilfield.
“Any attempt to pay a ransom to the armed militia which shut down El Sharara (oilfield) would set a dangerous precedent that would threaten the recovery of the Libyan economy,” NOC Chairman Mustafa Sanalla said in a statement on the company’s website.
NOC on Monday declared force majeure on exports from the 315,000-barrels-per-day oilfield after it was seized at the weekend by a local militia group.
The nearby El-Feel oilfield, which uses the same power supply as El Sharara, was still producing normally, a spokesman for NOC said, without giving an output figure. The field usually pumps around 70,000 bpd.
Since 2013 Libya has faced a wave of blockages of oilfields and export terminals by armed groups and civilians trying to press the country’s weak state into concessions.
Officials have tended to end such action by paying off protesters who demand to be added to the public payroll.
At El Sharara, in southern Libya, a mix of state-paid guards, civilians and tribesmen have occupied the field, camping there since Saturday, protesters and oil workers said. The protesters work in shifts, with some going home at night.
NOC has evacuated some staff by plane, engineers at the oilfield said. A number of sub-stations away from the main field have been vacated and equipment removed.
The occupiers are divided, with members of the Petroleum Facilities Guard (PFG) indicating they would end the blockade in return for a quick cash payment, oil workers say. The PFG has demanded more men be added to the public payroll.
The tribesmen have asked for long-term development funds, which might take time.
Libya is run by two competing, weak governments. Armed groups, tribesmen and normal Libyans tend to vent their anger about high inflation and a lack of infrastructure on the NOC, which they see as a cash cow booking billions of dollars in oil and gas revenues annually.