Monday, October 31, 2011

Labor row halts Qantas intl flights, including Manila’s

Business Mirror
October 31, 2011


QANTAS has grounded indefinitely all its domestic and international flights, including its four weekly flights out of Manila to Sydney and Brisbane, following a long-running dispute with three different unions.

Qantas flies A330 airplanes from Manila every Monday, Tuesday, Thursday and Saturday to Sydney and Brisbane.

In an advisory, Qantas advised its passengers to check the Travel Alerts page on qantas.com for the latest information.

According to aviation experts, Qantas’s shock decision to ground its fleet of planes is a “calculated gamble that risks trashing not only the ‘Flying Kangaroo’ brand but that of Australian tourism, generally.”

The decision dramatically escalated a months-long dispute with unions over pay and conditions, stranding some 70,000 travelers in airports around the globe and forcing government mediators to step in.

“The move, from an airline that has carefully cultivated a reputation for reliability and safety over the past 90 years, stunned everyone, including the government, rival airlines and the unions involved in the dispute,” the expert said.

But the hardest hit were the travelers who angrily lined up at airport terminals from London to Bangkok to condemn Qantas for abandoning them with no prior notice through the abrupt cancellation of more than 400 flights.

In Manila, protesting union workers of Philippine Airlines (PAL) who had earlier been laid off got the support of the Qantas labor union.

In its message of solidarity, the Australian Licensed Aircraft Engineers Association (Alaea), which represents Qantas engineers, declared: “All Alaea members stand shoulder-to-shoulder in solidarity with the PAL Employees Association [Palea] in their ongoing battle and will support them in their fight against unjust treatment.”

Alaea said it would support Palea efforts through the London-based International Transport Workers Federation for the “linking of all international affiliates” backing Palea members’ full reinstatement.

The Qantas web site said that since the grounding at 5 p.m. on Saturday, over 68,000 passengers have been affected, with 447 flights canceled.

Fair Work Australia has said it would reconvene at 2 p.m. on Sunday to consider the Federal Government’s application for termination or suspension of the industrial disputes between Qantas and the Alaea, the Transport Workers Union TWU and the Australian and International Pilots Union.

QantasLink flights continue to operate as normal, the airline said. These flights have flight codes of QF1400 to 2699.

Jetstar, the airline’s low-cost carrier, also continues to operate as normal, the airline said, admitting that capacity remains very limited.

“Jetstar is working to accommodate as many affected Qantas passengers on its services as possible. Unsold seats on Jetstar flights are being made available to Qantas passengers at discounted fares. These fares are only available at airports to passengers with valid Qantas itineraries, in order to prioritize passengers most in need—they are not available through call centers or web sites,” it said.

Jetconnect-operated Qantas flights over the Tasman are unaffected. Qantas has confirmed that all its trans-Tasman Jetconnect services will operate as normal on Sunday.

Express Freighters Australia and Atlas Freighters will also continue to operate.

“Customers booked on Qantas flights should not go to the airport until further notice. A full refund will be available to any customer who chooses to cancel their flight because it has been directly affected by the grounding of the fleet. Full rebooking flexibility will be available to customers who wish to defer their travel,” the airline said.

Assistance with accommodation and alternative flights, as well as other support, will be offered to customers who are mid-journey, the advisory said.

Qantas contact centers are currently experiencing a high volume of calls and customers may experience lengthy delays. Only customers with bookings for travel in the next 12 hours should call Qantas contact centers.

Qantas said it regrets that this action has become necessary and apologizes sincerely to all affected passengers, according to the airlines’ corporate communications department.

Chaos, hearings as Qantas grounds planes worldwide

Business Mirror
October 31, 2011


CANBERRA—Tens of thousands of stranded Qantas Airways passengers worldwide scrambled to get to their destinations on Sunday after the airline abruptly grounded its global fleet over a dispute with striking workers. Australia’s government sought a court order to force the flagship carrier’s planes back in the air.

Australian officials expressed frustration over the sudden action by the world’s 10th-largest airline and asked an emergency arbitration hearing to order Qantas to fly in Australia’s economic interests.

“It’s not our place to start allocating responsibility, but what I also know is there is a better way to resolve these matters...than locking your customers out,” Australian Assistant Treasurer Bill Shorten told reporters ahead of the arbitration hearing in the southern city of Melbourne. “We want more common sense than that.”

About 70,000 passengers fly Qantas each day, and they were stuck in airports around the world trying to make alternate arrangements after Qantas announced on Saturday that it had grounded all flights until unions reach an agreement with the company.

Qantas already had reduced and rescheduled flights for weeks after union workers struck and refused to work overtime out of worries that a restructuring plan would move some of Qantas’s 35,000 jobs overseas.

German tourist Michael Messmann was trying to find a way home from Singapore on Sunday. He and his wife spent five weeks traveling around Australia but found their connecting flight home to Frankfurt suddenly canceled.

“I don’t know the details of the dispute, but it seems like a severe reaction by the airline to shut down all their flights. That seems a bit extreme,” said Messmann, 68. “After five weeks of traveling, we just want to go home.”

Australian business traveler Graeme Yeatman, however, sided with the airline, even though he was also trying to find a new flight home to Sydney on Sunday after his flight was canceled.

“I think the unions have too much power over Qantas. Even though this is an inconvenience for me, I’m glad the airline is drawing a line in the sand,” said Yeatman, 41.

A court heard testimony on Sunday in an emergency arbitration hearing called by the government.

Qantas CEO Alan Joyce said the airline could be flying again within hours if the three arbitration judges rule to permanently terminate the grounding and the unions’ strike action.

The unions want the judges to rule for a suspension so that the strikes can be resumed if their negotiations with the airline fail.

In testimony to the court on Sunday, Qantas executive Lyell Strambi said suspending the staff lockout for three months could endanger aircraft safety.

He said crews could be distracted or angered by the risk to their future earnings of another lockout, which could cause fatigue and degrade personal performance.

“That could lead to conflicts in the cockpit—an array of things,” Strambi told the tribunal.

“Action is suspended for a period of time, but the threat of action doesn’t go away,” Strambi said. “The genie is out of the bottle.”

Planes in the air continued to their destinations when the grounding was announced, and at least one taxiing flight stopped on the runway, a passenger said. Among the stranded passengers are 17 world leaders attending a Commonwealth summit in the western Australian city of Perth.

When the grounding was announced, 36 international and 28 domestic Australian flights were in the air, the airline said.

Qantas said 108 airplanes were being grounded at 22 airports, but did not say how many flights were involved.

Bookings already had collapsed after unions warned travelers to fly other airlines through the busy Christmas-New Year period.

Joyce told a news conference in Sydney that the unions’ actions had created a crisis for Qantas.

“They are trashing our strategy and our brand,” the chief executive said. “They are deliberately destabilizing the company, and there is no end in sight.”

Union leaders criticized the action as extreme. Qantas is among the most profitable airlines in the world, but Joyce estimated that the grounding would cost the carrier $20 million a day.

The grounding of the largest of Australia’s four national domestic airlines will take a major economic toll and could disrupt the national Parliament, due to resume in Canberra on Tuesday after a two-week recess. Qantas’s  budget subsidiary Jetstar continues to fly.

Prime Minister Julia Gillard said her government would help the Commonwealth leaders fly home after 17 were due to fly out of Perth on Qantas planes over the next couple of days.

“They took it in good spirits when I briefed them about it,” Gillard told reporters.

British tourist Chris Crulley, 25, said the pilot on his Qantas flight informed passengers while taxiing down a Sydney runway that he had to return to the terminal “to take an important phone call.” The flight was then grounded.

“We’re all set for the flight and settled in and the next thing—I’m stunned. We’re getting back off the plane,” the firefighter told The Associated Press from Sydney Airport by phone.

Crulley was happy to be heading home to Newcastle after a five-week vacation when his flight was interrupted. “I’ve got to get back to the other side of the world by Wednesday for work. It’s a nightmare,” he said.

Qantas offered him up to $375 a day for food and accommodation, but Crulley expected to struggle to find a hotel at short notice in Sydney on a Saturday night.

Gillard said her center-left government, which is affiliated with the trade union movement, had “taken a rare decision” to seek an end to the strike action out of necessity.

“I believe it is warranted in the circumstances we now face with Qantas...circumstances with this industrial dispute that could have implications for our national economy,” Gillard said.

Transport Minister Anthony Albanese described the grounding as “disappointing” and “extraordinary.” Albanese was angry that Qantas gave him only three hours’ notice.

All 108 aircraft will be grounded until unions representing pilots, mechanics, baggage handlers and caterers reach agreements with Qantas over pay and conditions, Joyce said.

“We are locking out until the unions withdraw their extreme claim and reach agreement with us,” he said, referring to shutting staff out of their work stations. Staff will not be paid starting Monday.

“This is a crisis for Qantas. If the action continues as the unions have promised, we will have no choice but to close down Qantas part by part,” Joyce said.

Richard Woodward, vice president of the pilots’ union, accused Qantas of “holding a knife to the nation’s throat” and said Joyce had “gone mad.”

Steve Purvinas, federal secretary of the mechanics’ union, described the grounding as “an extreme measure.”

Long-haul budget airline AirAsia tried stepping into the void with what it called “rescue fares” for Qantas passengers. The offer was valid for ticket-holders flying within 48 hours to AirAsia destinations, the airline said.

Malaysia-based AirAsia flies to three Australian destinations, as well as New Zealand.

Qantas infuriated unions in August when it said it would improve its loss-making overseas business by creating an Asia-based airline with its own name and brand. The five-year restructure plan will cost 1,000 jobs.

Qantas also announced in August that it had more than doubled annual profit to A$250 million, but warned that the business environment was too challenging to forecast earnings for the current fiscal year.

Fare hikes okayed for Singapore Airlines

Business World
October 31, 2011


SINGAPORE Airlines Ltd. has been allowed to hike fares for flights from Manila, the Civil Aeronautics Board (CAB) announced during the weekend.
“Please be advised that ... [Singapore Airlines’ request] for authority to increase its published fares from Manila to Singapore, together with the attached fare, destination, inclusion, restrictions and conditions is hereby approved,” Carmelo L. Arcilla, CAB executive director, said in a letter published in a newspaper on Saturday.

The letter, addressed to Teodoro A. Pastrana, counsel for Singapore Airlines, did not indicate how much increase will be slapped on the fares. Representatives of the carrier were not immediately available for comment.

Singapore Airlines was required to publish its fare adjustments via a newspaper notice, and the CAB said further changes would have to be approved anew by regulators.

Singapore Airlines currently offers round trip Manila-Singapore tickets for as low as $270. CAB data show that the airline carried 339,116 passengers on international flights to the Philippines during the first half of the year, down 8% in the comparable 2010 period. -- KAM

Saturday, October 29, 2011

Malacañan Palace acts on tourism exec’s plea

Manila Standard Today
October 29, 2011


MalacaÑang has asked Transportation Secretary Manuel Roxas II and Foreign Affairs Secretary Albert del Rosario to take up the letter of tourism sector leader Robert Lim Joseph to President Benigno Aquino III over the review of Executive Order 29 and 28.

EO 28 revamped the government air negotiating and consultation panels, leaving out Philippine carriers while EO 29 imposed pocket open skies for airports in the provinces.

“We are thankful to President Aquino for acting on our concern. EO 29 which favors foreign carriers over local airlines was highly influenced by pro open skies advocates led by former Tourism Secretary Alberto Lim, the Freedom to Fly Coalition, and the Makati Business Club,” Joseph said in a statement.

The Palace endorsement was signed last Oct. 10 by Deputy Executive Secretary Teofilo Pilando Jr.

Joseph said EO 29 was the same as EO 500 which opened up our airports to foreign carriers without reciprocity. EO 500 was amended by EO 500-A on appeal of fair open skies advocates.

But pro open skies groups came up with EO 500-B, which remained unsigned during the Arroyo administration only to show up as EO 29, he noted.

“Our only concern here is reciprocity. We want local carriers to have equal chance to compete with foreign airlines,” Joseph said.

He wrote Mr. Aquino on Sept. 28, 2011, citing the disadvantageous provisions of the two EOs and how Philippine carriers and the local aviation industry would be edged out of competition.

In his letter last March 14, Joseph, chairman of Tourism Educators and Movers Philippines and one of the convenors of the Fair Trade Alliance, said g pocket open skies in airports outside of Metro Manila had no guarantee of reciprocity to local airlines.

“The EO granted unprecedented fifth freedom rights to foreign airlines without assurance that Philippine carriers will get the same reciprocal arrangements from their governments,” he said.

Under a fifth freedom environment, Singapore Airlines can fly to Diosdado Macapagal International Airport in Clark, Pampanga, pick up passengers there and then fly them to Los Angeles, USA.

“But Philippine carriers like Cebu Pacific and Philippine Airlines cannot do the same as Singapore would not give a fair exchange of rights,” he said in the letter.

According to Joseph, foreign airlines are welcome to bring tourists in and out, “but we should also give local carriers a fair chance to compete... Because of the open skies policy in airports outside of Metro Manila, foreign airlines can now set up their hub in say, Clark or Cebu, which is a lucrative market.”

He expressed surprise over EO 28 why Filipino airlines are excluded from the air negotiating and consultation panels whjile bveing allowed to sit merely as observers.

“Airlines are the biggest investors in the industry. One Airbus 320 alone costs US$120 million, which can already fund 3 five-star hotels. Philippine carriers are major stakeholders in the industry, generating thousands of direct and indirect employment and developing technical skills,” Josepha said.

“They are top contributors to the country’s tourism promotions drive and the tourism, hospitality and service industries, as such they should have a say in negotiating for air rights. Thus excluding them from the two panels would be unfair.”

Joseph also took a dig at the inclusion of the Department of Labor and Employment and the Department of Trade and Industry in the air panels, wondering what they have “to do with negotiations for air rights.”

Wednesday, October 26, 2011

Airphil Express offers honeymoon promo

Manila Bulletin
October 26, 2011


Airphil Express is offering honeymoon travellers for just P88 one-way for flights from Manila to San Jose, Catarman, Calbayog, Tacloban, and Tagbilaran or vice-versa; and from Cebu to Bacolod, Cagayan de Oro, Iloilo, Ozamiz, Tacloban, Zamboanga, and Davao, or vice-versa.
Selling and ticketing dates are on October 27 and 28, 2011, while travel period is from June 1 to August 31, 2012.

Under its express sale for honeymoon spots in Bohol, the honeymoon couple can proceed to Bohol’s Panglao Island, renowned for its whitesand beauty and diving site attractions. The two will likely spend some time in their lodging and so depending on their budget they can opt for a

luxurious resort stay or an affordable and comfortable accommodation with some view. You can also mention that you are honeymooners and maybe get discounted rates.
For just P88 one-way, “Airphil Express gives tourists an opportunity to save a significant part of their travel fund,” says Alfredo Herrera, Senior Vice President for Marketing and Sales. “We want to help send off newlyweds, couples celebrating their anniversaries, or any traveling group to experience the honeymoon or vacation of their dreams, at best value.

Traveling for pleasure as a couple, and discovering the islands together will bring them closer, especially when they do it often, which is possible with our seat sale promos.”

Kuwait airways workers strike

Manila Bulletin
October 26, 2011


KUWAIT CITY - Hundreds of Kuwait Airways Corp. staff began an indefinite strike Monday to demand a pay increase for national workers, disrupting flights of the flag carrier, head of the trade union said.

"We have started an open strike from today. It will continue until the government meets our legitimate demands of raising our wages," Abdullah al-Hajeri told AFP.

State-owned Kuwait Airways cancelled five outbound and five incoming flights to various destinations and more flights were likely to be cancelled.

The loss-making privatisation-bound KAC operates around 25 flights daily using its old fleet of 15 Airbus and two Boeing jets.

Hajeri said that the union had called off a strike that was due to start earlier this month after the government promised to "meet most of the demands immediately, but nothing happened."

The government had agreed to increase the basic salary of all Kuwaiti employees by 30 percent but failed to deliver, said Hajeri, adding that the union has about 4,000 members, half of them nationals.

The union is currently demanding raises for nationals and later it will make similar demands for expatriates, Hajeri said. It was unclear how many foreign workers have joined the strike.

Hajeri said the response so far to the strike call "has been excellent."

He said the union has decided to exempt flights for Jeddah and Medina in Saudi Arabia that will carry thousands of pilgrims next week for the annual hajj pilgrimage.

KAC management however held the trade union responsible for the consequences of the strike, accusing the union of failure to fulfill an agreement reached early October that requires the strike to be put off until November 3.

In a written statement, KAC said the management has agreed to most demands made by the union although implementing the agreement required some time.

The oil-rich Gulf state of Kuwait has been hit by a wave of industrial action amid a major political showdown between the opposition and government in the wake of an alleged corruption scandal involving several MPs and possibly state officials.

Two weeks ago, more than 3,000 customs employees stopped work for two days demanding a pay raise and called off the strike after government promises to meet their demands.

Tuesday, October 25, 2011

ECCP: More foreign carriers bound to leave Philippines

Philippine Daily Inquirer
October 25, 2011


Other foreign airlines may soon take Air France-KLM’s move to leave the Philippines if the government continues to ignore their plea to rationalize the current airline tax regime.

European Chamber of Commerce vice president for external affairs Henry Schumacher said the country should strike a balance between generating revenues and attracting more investors into the country.
“The question is, ‘What does this government really want?’ We’ve been arguing for a long time that these taxes are discriminatory and have led to airlines leaving the country. The Philippines can actually make more money by bringing more airlines here,” he said in a telephone interview Monday.

Schumacher said foreign carriers like Air France-KLM, which would be scrapping its Manila-Amsterdam direct flights by April next year, could opt to make Bangkok or Hong Kong as their hubs. Governments in those territories, he said, did not charge excessive taxes to foreign carriers.
Foreign airlines that would choose to continue operating in the Philippines might end up reducing their flights to the country because of the tax issue, he added.

“The common carriers’ tax is one of the major issues here. It’s unique to the Philippines,” he said.

The Joint Foreign Chambers of the Philippines (JFC), of which ECCP was a member, had sent numerous appeals to Congress and the Office of the President to remove the common carriers’ tax and the gross Philippine billings tax.
“Continuation of these taxes risks losing some of the present international air services into the country, as well as deterring new ones, and departs from standard international practice,” the JFC said.

Instead of giving an answer, however, the Office of the President passed the letter on to the Department of Finance, which thumbed down this request.

In a memorandum to President Aquino, Finance Secretary Cesar Purisima said the airlines’ requests—coursed through the JFC—needed changes in tax laws and, as such, these should be directed to Congress.

Foreign carriers want Malacañang to certify as an urgent administrative measure a bill pending at the House of Representatives seeking the exemption of international air carriers from the payment of the 2.5-percent gross Philippine billing tax and the 3-percent common carriers’ tax.

Local carriers are not slapped with such taxes.
The Export Development Council and National Competitiveness Council also called for the scrapping of those taxes to encourage more foreign airlines to operate in the country.

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tuesday, October 18, 2011

Qantas Sydney flight turns back

Manila Bulletin
October 18, 2011

SYDNEY (AFP) – A Sydney-bound Qantas flight was forced to turn back to Bangkok after a bang was heard on board, the airline said Monday, as the carrier separately grounded five aircraft due to a labor row.
The 'Flying Kangaroo', which is locked in increasingly heated talks with pilots, engineers and baggage handlers on wages and conditions, was also explaining how it fumbled the delivery of an unaccompanied 11-year-old boy.

Qantas said QF002 from Bangkok to Sydney turned back about one hour into its journey Sunday after a noise was heard and excessive vibrations reportedly felt.

''There was some noise reported on board the aircraft,'' a Qantas spokeswoman said, adding that engineers had identified the probable cause as one of the aircraft's Rolls-Royce RB211 engines.
The Boeing 747-400, carrying 356 people, touched back down in Bangkok without incident.

''There was some white sparks shooting out of the engine and then they informed us of what was going on, that the engine had been shut down and we were returning to Bangkok,'' one passenger told Macquarie Radio.

The incident comes as Qantas grounded five aircraft for a month, removing some 400 flights and 60,000 seats from its schedule, after rolling strikes by engineers caused a maintenance backlog.

Qantas has said the industrial action was also affecting forward bookings as unions remain fixed on negotiating pay increases and job security with the carrier refocusing its business towards Asia.

Etihad Airways celebrates double daily Manila services with promo fares

Manila Bulletin
October 18, 2011

MANILA, Philippines — Etihad Airways has unveiled special airfares from Manila to the United Arab Emirates and Europe to celebrate its new double daily services between the Philippines capital and Abu Dhabi.

The new schedule, from November 1, also improves connectivity to the popular European business and leisure destinations of Athens, Brussels, Dublin, Dusseldorf, Frankfurt, Geneva, Istanbul, London, Manchester, Milan, Munich, and Paris.

Etihad Airways Country Manager Philippines Roberto Hukom said the changes offered travellers more choice and convenience.

“Etihad Airways has an unbeatable offer for travellers from the Philippines. Fourteen flights per week; the convenience of morning and evening departures; seamless connections to Europe; luxuriously appointed aircraft; award-winning service; some of the finest cuisine and entertainment in the skies; and great value airfares make Etihad Airways the number one choice for travel to the UAE and Europe,” Hukom said.

Roundtrip airfares from Manila to any of Etihad Airways’ European destinations are available for US$1400 in Pearl Business class and US$700 in Coral Economy class. Business class roundtrips to Abu Dhabi and Dubai cost US$1777 and economy class US$753. A fuel surcharge and applicable Philippines taxes are additional to these base fares.

The special promotional airfares are on sale now until October 31 for travel to December 31, 2011.

Thursday, October 13, 2011

AirAsia junks Vietnam joint venture

Manila Bulletin
October 13, 2011


KUALA LUMPUR (AFP) _ Asia's biggest carrier AirAsia has called off a propsed joint venture with VietJet Aviation to launch a low cost airline, citing a failure to obtain Vietnamese regulatory approvals.

In a filing with the Malaysian stock market late Tuesday, Air Asia said the venture had failed to gain gowvernment permission to employ the AirAsia brand across VietJet's commercial operations, and other required approvals.

"As those conditions are fundamental for the successful conduct of the business model for the intended joint venture, the company has decided to allow the joint venture to lapse with immediate effect, "it said.

AirAsia said it would face no legal or financial impact from the move.

The Malaysia-based budget carrier, which has expanded rapidly through joint ventures in neighboring countries, announced in February it had bought a 30 percent stake in VietJet, intending to set up a Vietnam-based low-cost airline.

The carrier was to be known as VietJet AirAsia.

AirAsia has become one of the air-line industry's biggest success stories after former music industry executive Tony Fernandes acquired the then failing company a decade ago.

Its 2010 full-year net profit nearly doubled to 1.07 billion ringgit ($340 million) compared to 2009.

In July, AirAsia and Japan's All Nippon Airways announced they would form a joint venture to establish a Tokyo-based low-costairline.
Airasia already has similar joint ventures in Indonesia, the Philippines and Thainland.

SIA long-haul budget carrier to start operations in April

Manila Bulletin
October 13, 2011

Singapore Airlines' new low-cost, long-haul carrier is slated to take off in April next year with one Boeing 777-200 and expand to four planes in the first three months.

The longer-term plan is for Scoot Airlines, as the new entity could be called, to operate 14 of the twin-aisle planes by the middle of 2016, The Straits Times has learnt.

Regional carrier SilkAir, another SIA subsidiary, has a fleet of 18 aircraft.

The new airline, a critical part of SIA's strategy to deal with intensifying competition from rival carriers, is expected to fit each of its B-777 with about 400 seats.

SIA, which will provide the initial few aircraft from its existing fleet, currently configures its B-777 to carry up to 323 passengers in two classes.

The Straits Times has also found out that as part of the retrofitting, the new carrier intends to make its aircraft Wi-Fi enabled.

This will allow passengers, willing to pay for the service, to surf the Internet and access Web-based applications using laptops, tablet computers and smartphones.

The airline is also studying the feasibility of renting the devices for inflight entertainment. Charging customers for extras, which also include food and drinks, is part of the low-cost model adopted for the new carrier.

When contacted, a spokesman for the new airline did not confirm any of the information which The Straits Times had obtained from documents provided to vendors for the aircraft-retrofitting works.

She said operational and other plans are still being finalised.

Industry watchers note that SIA's entry into the market is well-timed. If there is a global slowdown, the premium air travel market will be hit as customers settle for cheaper options.

Hence, the need for a Scoot alternative for which SIA is targeting destinations which are more than four hours from Singapore, such as those within the region, Australia, New Zealand, Europe and the United States.

Low-cost competitors in the long-haul market include Jetstar and AirAsia X.

With about six months to go before the launch of the new carrier, recruitment of B-777 pilots has kicked off with advertisements placed on Saturday in The Straits Times and Malaysia's The Star.

The airline spokesman did not say how many pilots will be recruited but hiring of cabin crew will be done later.

The new entity - announced in May - will be run independently of the parent carrier.

SIA already owns about a third of budget carrier Tiger Airways which flies short-haul out of Singapore. Tiger also operates a domestic Australian carrier.

Mr Shukor Yusof of Standard & Poor's Equity Research said the key to the new airline's success will lie in picking the right routes, markets and fares.

For example, fares should be at least 20 to 30 per cent below what SIA charges, he added.

"There is a lot of potential if they can get it right."

He noted that the new entity, which could pose stiff competition to second-tier full-service rivals like Thai Airways and Malaysia Airlines, should appeal to younger and cost-conscious travellers.

Tuesday, October 11, 2011

Strike forces qantas flights' cancellation

Manila Bulletin
October 11, 2011


SYDNEY (AP) - Qantas Airways says thousands of its passengers are facing delays and cancelled flights because of a strike by its engineers.

Australia's flagship airline says four hour strike Monday by the Australian Licensed Aircraft Engineers Association is forcing the airline to cancel 40 flights and delay another 24 by up to three-and-a-half hours.

The union has staged a series of strikes over the past six weeks as it flights the airline over pay and work conditions.

Monday, October 10, 2011

Roxas to protect local airlines

Manila Bulletin
October 10, 2011

MANILA, Philippines -- Secretary Manuel “Mar” Roxas II plans to inject modifications in the recently implemented Open Skies policy of the Department of Transportation and Communications (DoTC) to protect the local airline industry from stiff competition with foreign carriers.

During his presentation of the DoTC’s 5-year infrastructure development plan to the business community, Roxas said he has instructed the Civil Aviation Authority (CAB) to balance local and foreign interests in granting air rights to ply domestic routes.

“We shall support modified open skies in order to support our country’s tourism promotion efforts. We shall be mindful though that this is not to be at the expense of our domestic commercial airline industry. As I did at the WTO in battling for fair trade, likewise I shall be for fairness in the opening up of our domestic airline markets,” he said.

It was recalled that several groups in the aviation and tourism sectors have assailed the DoTC, under the leadership of then Secretary Jose “Ping” de Jesus, for opening up domestic flights to foreign airlines without having to demand for reciprocity in seats.

Aside from modifying the Open Skies policy, Roxas said the Civil Aviation Authority of the Philippines (CAAP) is focused on regaining the country’s Category-1 status and meeting the international standards for aviation safety.

He said the CAAP has been working on this over the last year and that he has made attaining full compliance with the international standards of the Federal Aviation Administration (FAA) and the International Civil Aviation Organization one of the DoTC’s priorities.

“Out of the 127 total individual findings of the FAA and ICAO, we believe we have satisfactorily attended to all but seven. Among the remaining unresolved items are the hiring of additional employees, the comprehensive training here and abroad for all CAAP inspectors and the conduct of regular flight checks for pilots and aircraft,” he said.

Roxas disclosed that the FAA is scheduled to conduct a “technical review” of the Philippines’ airline industry this December and that the government is optimistic about the progress that the DoTC and CAAP have made.

“This is a good example where our cultural predisposition for the easygoing, ‘okay lang’ and ‘pwede na yan,’ ‘bahala na’ clearly hurts us. The principal operating requirement for Category 1 status is quite simple: The setting up of objective international best practice standards and the unrelenting and rigorous application thereof,” he added.

To further boost tourism, Roxas also said the government plans to increase the handling capacity and eventually reduce the load of the Ninoy Aquino International Airport (NAIA).

Citing the records of the Manila International Airport Authority (MIAA), Roxas said the congested NAIA is currently operating beyond its rated capacity. NAIA caters to an average of 43 movements every hour, this is beyond the standard weighted capacity of 36 movements.

“Our goal is to increase the handling capacity of the airport by improving its ‘cycle rate.’ We shall do this by constructing first one, then another rapid exit taxiway to reduce runway occupancy time; thus, shorten the 1-minute and 40-second cycle for each movement. This will take a few hundred million pesos and up to a year as we can only do construction work during the airports ‘downtime,’ which is from 1 a.m. to 4 a.m.,” he said.

Roxas added that he will continue De Jesus’ plan to free up space at the vicinity of NAIA and eventually reduce the passenger load for NAIA Terminals 1, 2 and 3 to other nearby airports.

“More near term, we also shall be reducing the load on the runway and taxiways by transferring general aviation to either Sangley and/or Lipa air bases. This is already in the works and we have started with the flying schools by restricting their takeoff and landing times, as well as helping them relocate to other sites. Private flights, particularly propeller aircraft, will soon follow,” he added.

Roxas said the reforms that he will inject to the DoTC’s management of the air sector, and the rest, are all aimed to protect the millions of passengers who use the public transportation system.

“We shall maintain the strict, consistent, effective fair and transparent standards in the application of these myriad regulations aimed at protecting the millions of passengers who use our public transportation system,” he said.

Saturday, October 8, 2011

Airphil Express bares promotion sale

Manila Bulletin
October 8, 2011

MANILA, Philippines — Planning to take family trips outside of the metro but still worried about where to get the budget for your out-of-town trip, which could usually cost you an arm and a leg?

Airphil Express, the country’s fastest growing budget airline, announced that from October 6 to 7, anyone can book a flight from Manila to Iloilo (and vice versa) via Airphil Express for only P500 through its Express Sale promo fares.

To further boost air travel between Manila and other provinces in the Visayas, Airphil Express is also offering a similar Express Sale promo worth P500 for travel from Manila to Cebu (and vice versa), Manila to Legazpi (v.v.), Manila to Tacloban (v.v.), and Manila to Tagbilaran (v.v.).

For passengers coming from Mindanao, Airphil Express is also offering the same rate for travel from Zamboanga to Davao (v.v.), Zamboanga to Jolo (v.v.) and Zamboanga to Tawi-Tawi (v.v.). These P500 express promo sale would be available for sale up to October 7 only, or until seats last. Travel period is from November 1 to December 20, 2011.

Aside from these regular Express Promo Sale, Airphil Express is also proud to have pioneered the 24/7 customer support service — a first in the local budget airline industry. “By primarily utilizing the modern tools of social media such as Twitter and Facebook, we are able to get in touch and be responsive to our customers’ needs, any time of the day, or any day of the week,” beams Herrera.

Airphil Express offers free check-in baggage allowance of 15 kilos plus free 7 kilos hand-carry luggage. This particular service, previously standard and free with most other budget airlines, has since become an additional at-cost service.

Friday, October 7, 2011

7 top Asian airlines opt for wide-body aircraft – CAPA

Manila Bulletin
October 7, 2011

MANILA, Philippines — Seven of the top ten airlines in Asia are expected to take delivery of wide-body aircraft over the next 12 months with only Emirates, Lufthansa, and Qatar Airways leading the group, according to the Center for Asia Pacific Airlines (CAPA).

ANA heads the list, thanks to its hectic B787 induction schedule, while Cathay Pacific, Air China, and China Southern all have 15 or more widebodies on order for delivery over the next 12 months.

Malaysia Airlines, Air India and Japan Airlines are also present in the Top 10. Asia Pacific airlines are likely to be in hot demand for airport route developers worldwide in coming months.

Among the Top 30 carriers by wide-body deliveries worldwide, 13 are from Asia Pacific, 10 are based in Europe, five are from the Middle East/Africa and just three are from North America, according to Ascend data. There are four  dedicated cargo operators in the Top 30 list – CargoLux, FedEx, UPS and Yangtze River Express.

ANA, which on Sept. 26, 2011 took delivery of the first B787, has 20 widebodies scheduled for delivery over the next 12 months. At present, the carrier has 112 wide-body aircraft in its fleet accounting for 72.3% of its fleet total, with 63 wide-bodies on firm order, comprising 71.6% of the carrier’s orderbook.

B787s will constitute a considerable number of the 20 deliveries, with the carrier scheduled to take delivery of four B787s in the remainder of 2011 and an additional eight in 2012. By the end of 2017, the carrier will have all 55 on-order B787s in service for deployment on domestic and international routes, based on the current schedule. The carrier also has three B767-300ERs and five B777-200ERs on order to supplement its wide-body fleet.

Emirates, one of the world’s fastest growing carriers, has 19 widebody aircraft scheduled for delivery over the next 12 months. Emirates, which only operates wide-body aircraft, is building the world’s largest A380 fleet and is also one of the largest customers for the A350, as it seeks to reinforce Dubai as a leading intercontinental travel hub.

The carrier has 161 wide-bodies in service at present, with a further 194 on firm order, including A350s, A380s, B747-8Fs and B777s, according to Ascend.

Cathay Pacific, like Emirates, operates an all-wide-body fleet of 126 aircraft.

In 1H2011, Cathay Pacific took delivery of six new aircraft with a further eight deliveries scheduled in 2H2011 for a total of 95 for delivery between now and 2019.

The value of these aircraft at list prices is almost HKD200 billion.

Air China has 16 wide-bodies scheduled for delivery over the next 12 months, further highlighting its future international expansion aspirations.

At present, just 18.7% of Air China’s total seats are deployed internationally, highlighting significant scope for expansion.

China Southern Airlines, which had 15 wide-bodies scheduled for delivery over the next 12 months, is also expanding its fleet with new aircraft, including A380 and B787 equipment to support its international growth aspirations. The airline is seeking to add more wide-body aircraft to its fleet as it boosts its international network amid intensifying competition on domestic routes following the development of the high-speed rail network in China.

Malaysia Airlines (MAS) has 15 wide-bodies scheduled for delivery over the next 12 months, including the delivery of six A380-800 aircraft between Apr-2012 and Jun-2012. London, Sydney and Melbourne are likely destinations for A380 operations.

The carrier has 95 aircraft in service and 60 aircraft on firm order, including the six A380s and 13 A330s. At present, the carrier's fleet is split 50:50 between narrow-bodies and wide-bodies, although future deliveries are more eighted to narrowbodies (68%).

Thursday, October 6, 2011

IATA: Global passenger traffic, cargo volume slump further in August

 Manila Bulletin
October 6, 2011

The airline industry has shifted gears downward, with passenger demand slowing down and freight shrinking at a faster pace in August due to the continued slump in business and consumer confidence, according to the International Air Transport Association (IATA).

While international passenger demand increased 4.5% in August this year versus the same period in 2010, it was a significant fall from the 6.0% recorded in July.

On the other hand, the 3.8% contraction in freight markets recorded in August was more than double the pace of July’s 1.8% decline.

“There’s not much optimism for improved conditions any time soon,” confirmed Tony Tyler, IATA’s Director General and CEO.

Comparisons of July to August more clearly indicate the slowdown. The total passenger market fell by 1.6% inAugust compared to July. International markets declined by 1.8%, while already weak domestic markets shrank by 1.0%. The total cargo market fell by 1.3%.

Passenger load factors were high at 81.4%, almost as high as in July.

While this is close to historically high levels reflecting the industry’s ability to efficiently allocate capacity, it too showed weakness—falling by 1.3% compared to July.


International passenger demand was up 6.2% in August compared to the previous year. However, when compared to July, demand contracted by 1.8%.

Asia-Pacific carriers reported 5.3% demand growth for August, slightly below a 5.6% capacity expansion. This is slightly better than the year-to-date  growth of 4.4%, reflecting the recovery in Japanese international travel. Load factors of 78.9% were below the industry average of 81.2%.

Middle Eastern carriers recorded the second highest demand growth at 6.7%, behind capacity expansion of 7.6%, leaving load factors down at 76.2%.

North American carriers reported the weakest performance with growth of just 2.9%, which was partly a result of equally slow growth in capacity.

This is a sharp downturn from stronger growth earlier in the year, as reflected in the 5.6% year-to-date demand expansion. The region’s carriers posted the highest load factor at 86.1%.

European airlines achieved the strongest growth ininternational passenger traffic in August with a 7.9%
increase, just slightly below a capacity expansion of 8.2%. Although domestic economies and leisure travel are weak, strong exports have led to increased business travel on international markets. Load factors of 83.9% were at historically high levels.

Tuesday, October 4, 2011

Finnair to slash 155 more jobs as it cuts costs

Manila Bulletin
October 4, 2011

HELSINKI (AP) - Finnair said it will lay off 155 more workers as it streamlines operations to cut costs and retain its competitive edge.

The layoffs will mainly be in support functions and the marketing and distribution sectors, the airline said.

CEO Mika Vehvilainen said it was necessary to increase efficiency as ``Finnair simply has to change to be able to meet the increasingly tougher competition and take our share of market growth.''

In March, the national carrier announced 450 layoffs in technical services, and the transfer of dozens of other jobs as it outsourced services.

Finnair has been struggling to cut costs amid declining demand, competition from budget airlines and overcapacity in the European airline sector. It has laid off hundreds of workers and last year was plagued by several strikes, including by cabin crews, that cost it more than (euro) 25 million in lost earnings.

It also doubled an annual savings program to (euro) 200 million with most cuts aimed at personnel costs.

Last month, Finnair reported a second-quarter loss of (euro) 23 million and announced a new savings target of (euro) 140 million ($191 million) by 2014. It said that profitability had not matched expectations, citing increased competition from budget airlines as ``more efficient business models'' had entered the market.

Finnair PLC, which is 56 percent government-owned, flies to about 50 destinations with a fleet of 65 aircraft. It employs 7,500 people - down from 7,600 a year

Monday, October 3, 2011

Airphil Express partners with M. Lhuillier

Philippine Star
October 3, 2011

MANILA, Philippines - Airphil Express recently signed a partnership with M. Lhuillier, a renowned financial services group that operates in more than a thousand locations nationwide, to give passengers more options to make their flight arrangements.

For the initial phase of the tie-up, passengers will be able to book their preferred flights and also purchase their airplane tickets in 15 pilot branches of M. Lhuillier in Metro Cebu. The second stage, which will be instituted in less than a year, will extend the booking and ticketing services in all its more than 1,500 branches, “to the farthest points in the Philippines.” Selected M. Lhuillier branches are open 24 hours.

Airphil Express and M. Lhuillier find common ground in their desire to deliver total customer satisfaction and service excellence to Filipinos who want to spend their hard-earned pesos on products and services with added value. Now as partner establishments, both companies will continue to provide practical offers that are relevant to the experience and lifestyle of today’s customers.

“We will keep finding ways to make budget air travel even more within reach, not just in terms of competitive rates, but also through services and partnerships with reliable companies like M. Lhuillier to help make Filipinos’ access to their dream destinations easier and more attainable,” reported Alfredo Herrera, Airphil Express SVP for Marketing and Sales.

The most aggressively growing budget airline in the country, Airphil Express continues to make enhancements in its delivery of products and services. Special features like the web check-in, seat selector, travel insurance, and pre-paid baggage make passengers who travel budget with Airphil Express feel that their needs and comfort are prioritized. The airline is also the only budget carrier to allow as much as 15-kg free baggage allowance and additional seven-kilo free hand carry.