Annex 1: News AIR TRANSPORT: QUARTERLY REPORT NO.11 2nd QUARTER 2006 (April to June) A EU/REGULATORY ............................................................................................................................................................... 2 European Commission approves start-up aid for Toulon – London....................................................................................... 2 European Union signs aviation agreement with New Zealand............................................................................................... 2 Commission updates its aviation blacklist for the first time ................................................................................................... 2 Single market for air transport between EU and Singapore................................................................................................... 2 Commission takes stock of the GALILEO Programme ........................................................................................................... 2 EC approves start-up aid in the UK ........................................................................................................................................ 2 EC approves social aid scheme in Scotland............................................................................................................................ 2 EC approves public financing at City of Derry Airport.......................................................................................................... 3 Reform of European air traffic control takes shape................................................................................................................ 3 European Union signs aviation agreement with Georgia....................................................................................................... 3 EC takes Greece to court for aid to Olympic .......................................................................................................................... 3 EC partly accepts Greece’s approach to 9/11 compensation ................................................................................................. 3 EC sends a Reasoned Opinion to Italy .................................................................................................................................... 3 EC sends a Reasoned Opinion to Cyprus................................................................................................................................ 3 Greece must comply with Court judgement on illegal subsidies to Olympic.......................................................................... 4 B AIRLINES ............................................................................................................................................................................ 4 LCC routes announced for next quarter.................................................................................................................................. 4 EasyJet, Ryanair win significant number of Madrid slots ...................................................................................................... 4 Air France takes legal action against Ryanair's Marseille base ............................................................................................ 4 New low-cost routes, Q1 2006 to March 26............................................................................................................................ 5 Ryanair continues push to increase ancillary revenues.......................................................................................................... 6 Alitalia insists Volare deal still valid despite court block....................................................................................................... 6 FlyMe plans to drive Scandinavian low-cost consolidation ................................................................................................... 6 Air Berlin shares debut on Frankfurt exchange ...................................................................................................................... 6 Iberia takes stake in LCC......................................................................................................................................................... 6 Amadeus casts net for LCCs .................................................................................................................................................... 6 EasyJet escalates row over Milan-Sardinia route rights ........................................................................................................ 6 Cyprus Airways agrees CYP13.4m Eurocypria sale............................................................................................................... 7 MyTravel outlines cost cutting plans for UK business............................................................................................................ 7 MyTravel forecasts UK profitability for 2006......................................................................................................................... 7 First Choice winter losses rise to £78m .................................................................................................................................. 7 German growth helps boost Thomas Cook profits 11.7%....................................................................................................... 7 Tour giant TUI reveals mixed first-quarter figures................................................................................................................. 8 Helios formally rebrands under A Jet name............................................................................................................................ 8 German carriers jostle for pole position ................................................................................................................................. 8 ERA welcomes new aviation policy ......................................................................................................................................... 8 Call for EU-wide safety body................................................................................................................................................... 8 Austrian revamps its short- and medium-haul fares ............................................................................................................... 8 SN Brussels resumes Kigali service......................................................................................................................................... 9 Air France-KLM synergy savings two years ahead of plan.................................................................................................... 9 BA in price-fixing probe........................................................................................................................................................... 9 Bulgaria Air privatisation is back on ...................................................................................................................................... 9 C CARGO AND INTEGRATORS ................................................................................................................................................ 9 AirBridge Cargo to source 747-200Fs from Japan's NCA ..................................................................................................... 9 Austrian and Emirates seal Vienna-Dubai cargo pact............................................................................................................ 9 FedEx cites progress on Paris air freight high-speed rail link............................................................................................. 10 D AIRPORTS ......................................................................................................................................................................... 10 Ownership changes in Spain.................................................................................................................................................. 10 Vienna acquisition of Bratislava receives official approval ................................................................................................. 10 Regional airport for sale in UK............................................................................................................................................. 10 E AIR TRAFFIC MANAGEMENT............................................................................................................................................ 10 ATM reform is “embarrassing” ............................................................................................................................................ 10 Single European Sky under microscope ................................................................................................................................ 11 F SAFETY AND SECURITY .................................................................................................................................................... 11 A380 performs full 16-slide deployment................................................................................................................................ 11 Eurocontrol examines ACAS down-linking to boost safety................................................................................................... 11 French system