Manila Bulletin
February 25, 2012
by: Jasmine Wang and Kyunghee Park (BLOOMBERG)
Singapore Airlines Ltd., the world's second-biggest carrier by market value, cut freighter capacity by 20 percent because of slumping demand and higher fuel prices.
The cuts took effect recently and will continue into the next operating season, which starts in late March, the carrier said in a statement yesterday. The reductions mainly affect long-haul routes, it said without elaboration.
The airline, which has a fleet of 13 Boeing Co. 747-400 freighters, is paring services as the European debt cisis saps demand for electronics, auto parts and other goods made in China. The carrier filled 58.5 percent of cargo space last month, the lowest amount since April 2009, according to data compiled by Boomberg.
"It's good to see excess capacity being removed from the sector," said Robert Bruce, head of Singapore research at CLSA Ltd., Still, it "can be turned on again very quickly" as the carrier isn't parking or retiring planes, he said
The airline, which generates about 20 percent of sales from freight, had a $40 million ($32 million) operating loss in its cargo unit in the quarter ended December. The unit filled 64.7 percent of capacity in the quarter, compared with the 69.2 percent needed to cover its costs.
The break-even target was 8 percentage points higher than a year earlier because of lower rates and higher fuel costs, the airline said in a Feb. 2 statement. The price of jet fuel has jumped 9.1 percent in the past year in Singapore trading.
"The depressed demand that we are seeing across all markets gives us little reason to be optimistic about the near-term outlook," SIA Cargo President Tan Kai Ping said in yesterday's announcement. The carrier doesn't expect any improvement in the first half, he said.
Singapore Air fell 0.6 percent to S$10.94 at close in Singapore yesterday before the announcement. It has slumped 22 percent in the past year. Cathay Pacific Airways Ltd., has fallen 15 percent Hong Kong.
Cathay, the largest international air-cargo carrier, has been "cutting capacity aggressively" on North America and European routes, it said this month. The carrier expects the cargo slump to extend into the second half, Chief Execusive Officer John Slosar said Feb. 13.
Saturday, February 25, 2012
Friday, February 24, 2012
AirPhil Adds 4 Clark Flights
Manila Bulletin
February 24, 2012
Airphil Express is making Clark one of its major hubs in its on-going expansion growing program this year.
Starting March 29 this year, the country's fastest-growing budget carrier is launching four new routes from the Diosdado Macapagal International Airport (DMIA) in Clark to Cebu, Davao, Kalibo, Aklan and Puerto Princes, Palawan. This will increase to 32 Airphil Express's total domestic destinations.
"With its highly improved road network and increasing flights, Clark is setting out to become a natural entry point to major tourist destionation and a major hub for business and tourism in the country," says Alfredo Herrera, Senior Vice President for Sales and Marketing of Airphil Express.
Herrera said that by operating out of Clark, Airphil Express would be able to target emerging population centers in Pampanga and Central Luzon." It goes hand in hand with our commitment to help spur growth for the country's economy via the promotion of local tourism in the area," he adds.
The new routes would kick off under this new flights schedule-Clark to Cebu route (v.v.) every Monday, Wednesday, Friday and Sunday; Clark to Kalibro route (v.v.) every Monday,Wednesday, Friday and Sunday; and Clark to Puerto Prinsesa route (v.v.) every Tuesday, Thursday and Saturday.
Airphil Express is establishing a separate transfer hub at Clark to serve the immense volume of passengers that are expected to be shuttling to and from the area. The newly opened routes from Clark is also expected to allow for more visitors, who often travel for the purpose of business and leisure, to take advantage of Airphil Expess en route to enjoying resource-rich destinations in Clark and the nearby areas.
February 24, 2012
Airphil Express is making Clark one of its major hubs in its on-going expansion growing program this year.
Starting March 29 this year, the country's fastest-growing budget carrier is launching four new routes from the Diosdado Macapagal International Airport (DMIA) in Clark to Cebu, Davao, Kalibo, Aklan and Puerto Princes, Palawan. This will increase to 32 Airphil Express's total domestic destinations.
"With its highly improved road network and increasing flights, Clark is setting out to become a natural entry point to major tourist destionation and a major hub for business and tourism in the country," says Alfredo Herrera, Senior Vice President for Sales and Marketing of Airphil Express.
Herrera said that by operating out of Clark, Airphil Express would be able to target emerging population centers in Pampanga and Central Luzon." It goes hand in hand with our commitment to help spur growth for the country's economy via the promotion of local tourism in the area," he adds.
The new routes would kick off under this new flights schedule-Clark to Cebu route (v.v.) every Monday, Wednesday, Friday and Sunday; Clark to Kalibro route (v.v.) every Monday,Wednesday, Friday and Sunday; and Clark to Puerto Prinsesa route (v.v.) every Tuesday, Thursday and Saturday.
Airphil Express is establishing a separate transfer hub at Clark to serve the immense volume of passengers that are expected to be shuttling to and from the area. The newly opened routes from Clark is also expected to allow for more visitors, who often travel for the purpose of business and leisure, to take advantage of Airphil Expess en route to enjoying resource-rich destinations in Clark and the nearby areas.
Clark Airport Begins Terminal Expansion
Manila Bulletin
February 24, 2012
Clark International Airport Corporation (CIAC) has secured a P1-billion loan from the Land Bank of the Philippines (LBP) to fiance the Phase II expansion of the passenger terminal and other support facilities at the Clark International Airport (CIA).
CIAC President and CEO Victor Jose I. Luciano and LBP President and CEO Gilda Pico led the signing of the P1-billion loan at the Land Bank of the Philippines main office in Malate, Manila.
"The Land Bank and CIAC have strengthened (their) partnership and we continue to support CIAC's vision for the development of Clark Airport as the premier gateway of the country," Pico stressed. She said "this will contribute in the government's national development which will benefit the whole country by making Clark Airport as the premier gateway."
"Rest assured that we at land bank will continue to support the plans and programs of ciac," Pico added.
For his part, Luciano said "this manifests the continued support and confidence of land bank by granting us a loan facility for the expansion of our Passenger Terminal at Clark Airport."
Luciano also disclosed the slated domestic operations of air Asia Philippines on March 28 and Airphil Express on March 29, 2012.
"In January alone this year, there have been a 37 percent growth of our international flights at the airport, and we expect this to further grow due to the slated domestic flights," he added.
Air Asia will commence Clark-Davao and Clark-Kalibo domestic flights and Airphil Express will start Clark-Davao, Clark-Kalibo, Clark-Cebu and Clark Puerto Prinsesa
The P1-billion loan will be used for the expansion of the Phase II of the Passenger Terminal of the Clark International Airport to meet the demands of passenger growth due to the increase of international and domestic flights this year.
Luciano said that CIAC is slated to start on March 5,2012 the bidding of the Phase II Expansion of the P360 million Passenger Terminal that would further accommodate the growth numbers of passengers at the airport.
The loan will also be used for the improvement other support infrastructure facilities such as the navigational equipments which are vital for the operations of the airport and the remaining funds would be utilized for CIAC's working capital.
February 24, 2012
Clark International Airport Corporation (CIAC) has secured a P1-billion loan from the Land Bank of the Philippines (LBP) to fiance the Phase II expansion of the passenger terminal and other support facilities at the Clark International Airport (CIA).
CIAC President and CEO Victor Jose I. Luciano and LBP President and CEO Gilda Pico led the signing of the P1-billion loan at the Land Bank of the Philippines main office in Malate, Manila.
"The Land Bank and CIAC have strengthened (their) partnership and we continue to support CIAC's vision for the development of Clark Airport as the premier gateway of the country," Pico stressed. She said "this will contribute in the government's national development which will benefit the whole country by making Clark Airport as the premier gateway."
"Rest assured that we at land bank will continue to support the plans and programs of ciac," Pico added.
For his part, Luciano said "this manifests the continued support and confidence of land bank by granting us a loan facility for the expansion of our Passenger Terminal at Clark Airport."
Luciano also disclosed the slated domestic operations of air Asia Philippines on March 28 and Airphil Express on March 29, 2012.
"In January alone this year, there have been a 37 percent growth of our international flights at the airport, and we expect this to further grow due to the slated domestic flights," he added.
Air Asia will commence Clark-Davao and Clark-Kalibo domestic flights and Airphil Express will start Clark-Davao, Clark-Kalibo, Clark-Cebu and Clark Puerto Prinsesa
The P1-billion loan will be used for the expansion of the Phase II of the Passenger Terminal of the Clark International Airport to meet the demands of passenger growth due to the increase of international and domestic flights this year.
Luciano said that CIAC is slated to start on March 5,2012 the bidding of the Phase II Expansion of the P360 million Passenger Terminal that would further accommodate the growth numbers of passengers at the airport.
The loan will also be used for the improvement other support infrastructure facilities such as the navigational equipments which are vital for the operations of the airport and the remaining funds would be utilized for CIAC's working capital.
Singapore Airport passenger Traffic Up
Manila Bulletin
February 24, 2012
SINGAPORE (Reuters) - Passenger traffic at Singapore's Changi Airport, Asia's second biggest after Hong Kong, rose 12 percent in January, Changi is also the world's fifth busiest airport in terms or international passenger volume. The airport handle 4.24 million passengers last month, compared to 3.79 million a year ago, but the long holiday lowered its cargo volume which registered 7.1 percent decline to 136,800 tons in January.
February 24, 2012
SINGAPORE (Reuters) - Passenger traffic at Singapore's Changi Airport, Asia's second biggest after Hong Kong, rose 12 percent in January, Changi is also the world's fifth busiest airport in terms or international passenger volume. The airport handle 4.24 million passengers last month, compared to 3.79 million a year ago, but the long holiday lowered its cargo volume which registered 7.1 percent decline to 136,800 tons in January.
Thursday, February 9, 2012
AirphilExpress to operate new flights out of Clark
Business Mirror
February 9, 2012
AIRPHILEXPRESS expects to launch four new routes to and from Clark beginning March 29 this year. The new additional routes are from Clark to Davao, Cebu, Kalibo and Puerto Prinesa, and the same brings the total number of daily scheduled trips to 32 local destinations.
"With its highly improved road network and increasing flights, Clark is setting out to become a natural entry point to major tourist destinations and a major hub for business and tourism in the country," said Alfredo Herrera, Senior Vice President for sales and marketing, in a statement.
"Aside from being a major part of the company's growth plans this year, one the other reason why we have decided to offer flights from Clark is so we may bring our services closer to the people in Pampanga and nearby areas. It goes hand in hand with our commitment to help spur growth for the country's economy via the promition of local tourism in the area,' he adds.
The newly opened routes from Clark is also expected to allow for more visitors to take advantage of the latest express sale promo fares of AirphilExpress.
AirphilExpress distinguishes itself from other budget carries by offering affordable airfare and conviniencedriven products and services like the web check-in, seat selector, travel insurance, and pre-paid baggage, as well as travel exclusives allowance and an additional 7-kilo free hand carry.
In line with its new routes, AirphilExpress is also expanding its fleet. Early this year, the company added three 180-seater Airbus A320s, which can fly at longer flight distances with lesser fuel consumption. This brings the total number of aircraft to 11 Airbus 320s, three Q300s and five Q400s.
February 9, 2012
AIRPHILEXPRESS expects to launch four new routes to and from Clark beginning March 29 this year. The new additional routes are from Clark to Davao, Cebu, Kalibo and Puerto Prinesa, and the same brings the total number of daily scheduled trips to 32 local destinations.
"With its highly improved road network and increasing flights, Clark is setting out to become a natural entry point to major tourist destinations and a major hub for business and tourism in the country," said Alfredo Herrera, Senior Vice President for sales and marketing, in a statement.
"Aside from being a major part of the company's growth plans this year, one the other reason why we have decided to offer flights from Clark is so we may bring our services closer to the people in Pampanga and nearby areas. It goes hand in hand with our commitment to help spur growth for the country's economy via the promition of local tourism in the area,' he adds.
The newly opened routes from Clark is also expected to allow for more visitors to take advantage of the latest express sale promo fares of AirphilExpress.
AirphilExpress distinguishes itself from other budget carries by offering affordable airfare and conviniencedriven products and services like the web check-in, seat selector, travel insurance, and pre-paid baggage, as well as travel exclusives allowance and an additional 7-kilo free hand carry.
In line with its new routes, AirphilExpress is also expanding its fleet. Early this year, the company added three 180-seater Airbus A320s, which can fly at longer flight distances with lesser fuel consumption. This brings the total number of aircraft to 11 Airbus 320s, three Q300s and five Q400s.
Hawaiian Airlines posts passenger record
Business World
February 9, 2012
HAWAIIAN AIRLINES posted a record number of approximately 8.7 million passengers for 2011, the biggest so far in the company's 82-year history. The new record is an increase of more than 240,000 passengers compared to the carrier's 2010 total.
The carrier also announced plans ro expand its reservations call center by providing round the-clock service, enabling customers, including those based in the Philippines, to call Hawaiian Airlines 24 hours a day, seven days a week, at its toll-free phone number 1-800-367-5320 to book flight reservations and make other inquiries.
"With a growing route network that by June will extend from the Eastern U.S. to Asia, we now bring guests to Hawaiian from all over the world. Knowing that many travelers still prefer to speak to someone when making flight reservations, we want to ensure they can reach us promptly at anytime of the day," Peter Ingram, Hawaiian's executive vicepresident and chief commercial officer, said.
Apart from the 24/7 operations of Hawaiian Airlines' call center, the Web site www.HawaiianAirlines.com will continue to be a convinient method for customers in the Philippines and the rest of the world to book flights and search for flight information at any time of the day, anywhere in the world.
The sevice enhancement of the reservations call center comes in the early stages of the airline's long-range expansion to new destionation and further development of its existing markets. Last year, Hawaiian Airlines launched nonstop flight services to Honolulu from Tokyo, Seoul and Osaka while increasing its Australia service to daily flights from Sydney.
This 2012, Hawaiian is set to launch daily nonstop service between Honolulu and both Fukuoka and New York City. The carrier will also add a third daily flight year-round between Los Angeles and Honolulu, reintroduction nonstop daily services between Los Angeles and Maui for the summer and increase daily flights year-round between Honolulu and Seoul.
In additional, Hawaiian Airlines is increasing its inter-island flights by an additional 23 to 25 flights daily by mid-March. It is also planning to introduce more new long-range Airbus A330-200 aircraft into its fleet.
February 9, 2012
HAWAIIAN AIRLINES posted a record number of approximately 8.7 million passengers for 2011, the biggest so far in the company's 82-year history. The new record is an increase of more than 240,000 passengers compared to the carrier's 2010 total.
The carrier also announced plans ro expand its reservations call center by providing round the-clock service, enabling customers, including those based in the Philippines, to call Hawaiian Airlines 24 hours a day, seven days a week, at its toll-free phone number 1-800-367-5320 to book flight reservations and make other inquiries.
"With a growing route network that by June will extend from the Eastern U.S. to Asia, we now bring guests to Hawaiian from all over the world. Knowing that many travelers still prefer to speak to someone when making flight reservations, we want to ensure they can reach us promptly at anytime of the day," Peter Ingram, Hawaiian's executive vicepresident and chief commercial officer, said.
Apart from the 24/7 operations of Hawaiian Airlines' call center, the Web site www.HawaiianAirlines.com will continue to be a convinient method for customers in the Philippines and the rest of the world to book flights and search for flight information at any time of the day, anywhere in the world.
The sevice enhancement of the reservations call center comes in the early stages of the airline's long-range expansion to new destionation and further development of its existing markets. Last year, Hawaiian Airlines launched nonstop flight services to Honolulu from Tokyo, Seoul and Osaka while increasing its Australia service to daily flights from Sydney.
This 2012, Hawaiian is set to launch daily nonstop service between Honolulu and both Fukuoka and New York City. The carrier will also add a third daily flight year-round between Los Angeles and Honolulu, reintroduction nonstop daily services between Los Angeles and Maui for the summer and increase daily flights year-round between Honolulu and Seoul.
In additional, Hawaiian Airlines is increasing its inter-island flights by an additional 23 to 25 flights daily by mid-March. It is also planning to introduce more new long-range Airbus A330-200 aircraft into its fleet.
Monday, February 6, 2012
Weak Asian Jet Fuel Outlook Sees Airlines Cutting On Hedging
Manila Bulletin
February 6, 2012
By JESSICA JAGANATHAN
SINGAPORE (Reuters) – Weakness in Asian prices of jet fuel in the fourth quarter, normally a peak demand period, looks set to persist through 2012 on a dip in air travel caused by Europe's debt crisis, which could tip the world economy into recession.
The bleak outlook is prompting airlines to throttle back on hedging plans, with most just sticking to current volumes. For oil refineries, less income from processing a barrel of crude into jet fuel may force them to switch to more profitable fuels, such as diesel.
''Most airlines have adopted similar strategies as they did in mid-2011, with regard to hedging,'' said Shukor Yusof, a Standard & Poor's analyst in Singapore. ''They will keep monitoring the markets and adjust their requirements within 5 to 10 percent of their fuel needs for the next 12 months.''
For example, Air France is looking to hedge about 52 percent of its fuel costs for the first quarter, sticking to its strategy of last year.
Cathay Pacific aims for hedging coverage of at least 20 to 30 percent for the next 12 to 18 months, depending on prices, a company spokeswoman said. Hedging by Hong Kong's flagship carrier for the 2010-11 financial year was estimated around 35 to 40 percent, and 50 percent for the year prior.
Jet fuel prices relative to diesel are usually at their strongest in the first and fourth quarters of the year, typically spurting as much as 50 percent, when holiday air travel picks up and winter demand for heating fuel kerosene, a product similar to jet fuel, increases.
But there has been no such rise so far in 2012 as a weaker economic outlook pushes people to cut back on vacations and travel. Asia's jet fuel market looks for support to Europe, where any spike in air travel demand draws fuel from Asia.
Jet fuel prices rose nearly 19 percent over the January to October period last year, while diesel prices gained almost 18 percent. In contrast, from November to last month, jet prices gained just 0.77 percent compared with 2.89 percent for diesel.
International air traffic shrank 1.5 percent in November from October, and has grown just 0.5 percent since May, the International Air Transport Association said in a December report.
Europe's passenger market has slowed sharply, with 4.9 percent annual growth in November, just half the figure of 9.5 percent for the first 11 months of 2011, the airline body added.
February 6, 2012
By JESSICA JAGANATHAN
SINGAPORE (Reuters) – Weakness in Asian prices of jet fuel in the fourth quarter, normally a peak demand period, looks set to persist through 2012 on a dip in air travel caused by Europe's debt crisis, which could tip the world economy into recession.
The bleak outlook is prompting airlines to throttle back on hedging plans, with most just sticking to current volumes. For oil refineries, less income from processing a barrel of crude into jet fuel may force them to switch to more profitable fuels, such as diesel.
''Most airlines have adopted similar strategies as they did in mid-2011, with regard to hedging,'' said Shukor Yusof, a Standard & Poor's analyst in Singapore. ''They will keep monitoring the markets and adjust their requirements within 5 to 10 percent of their fuel needs for the next 12 months.''
For example, Air France is looking to hedge about 52 percent of its fuel costs for the first quarter, sticking to its strategy of last year.
Cathay Pacific aims for hedging coverage of at least 20 to 30 percent for the next 12 to 18 months, depending on prices, a company spokeswoman said. Hedging by Hong Kong's flagship carrier for the 2010-11 financial year was estimated around 35 to 40 percent, and 50 percent for the year prior.
Jet fuel prices relative to diesel are usually at their strongest in the first and fourth quarters of the year, typically spurting as much as 50 percent, when holiday air travel picks up and winter demand for heating fuel kerosene, a product similar to jet fuel, increases.
But there has been no such rise so far in 2012 as a weaker economic outlook pushes people to cut back on vacations and travel. Asia's jet fuel market looks for support to Europe, where any spike in air travel demand draws fuel from Asia.
Jet fuel prices rose nearly 19 percent over the January to October period last year, while diesel prices gained almost 18 percent. In contrast, from November to last month, jet prices gained just 0.77 percent compared with 2.89 percent for diesel.
International air traffic shrank 1.5 percent in November from October, and has grown just 0.5 percent since May, the International Air Transport Association said in a December report.
Europe's passenger market has slowed sharply, with 4.9 percent annual growth in November, just half the figure of 9.5 percent for the first 11 months of 2011, the airline body added.
Airphil Express Offering More New Routes Via Its Cebu Hub
Manila Bulletin
February 6, 2012
Airphil Express announces the expansion of its Cebu hub.
Starting February 9, passengers can now fly with ease from Cebu to Cotabato (v.v.), Cebu to Kalibo (v.v.), Cebu to Legazpi (v.v.), Cebu to Surigao (v.v.) and Cebu to Pagadian (v.v.) via Airphil Express.
The additional five routes bring the current total number of Airphil Express’s Cebu hub flights to 14, making the Queen City of the South a major hub for the budget carrier. Previously serviced routes include Cebu to Manila (v.v.), Cebu to Davao (v.v.), Cebu to Caticlan (v.v.), Cebu to Iloilo (v.v.), Cebu to Bacolod (v.v.), Cebu to Cagayan De Oro (v.v.), Cebu to Zamboanga (v.v.), Cebu to Tacloban (v.v.), and Cebu to Ozamis (v.v.).
“The move is seen to boost the number of flyers availing the services of Airphil Express,” says Alfredo Herrera, Senior Vice President for Sales and Marketing. “With more additions in the number of routes and frequencies in daily flights in the pipeline, we are anticipating about 100 percent increase in the number of passengers this year or 8 million flyers in 2012,” he reveals.
Airphil Express also experienced a remarkable growth in its customer base last year. From 2010’s 1.8 million, it ballooned to more than 122 percent in 2011. The growth is attributed to its continuously increasing number of routes and the acquisition of additional aircrafts with bigger seating capacity. The company has also embarked on Adventours, an awareness-building campaign that promotes its new routes by supporting domestic tourism.
“We don’t only advertise the new routes, for instance, Caticlan. We also promote the experience behind a Boracay trip. That is, we hype up its food, its people and its culture,” Herrera explains further. “Our Boracay route was a huge success because we marketed that route as part of our Adventours Package.”
While Airphil Express also considers its much-anticipated regular Express Sales as a key contributor to the growth, it prefers to give more credit to its excellent customer service. “We also offer other intangibles like listening to the consumers and satisfying their needs. We were the first to offer the 24/7 customer support service,” he says.
In line with the additional routes, Airphil Express is also continuously expanding its fleet. This year, it will add three 180-seater Airbus 320s, which can fly at a longer flight distance with lesser fuel consumption. This brings the total number of Airphil Express aircrafts to 11 Airbus 320, three Q300s and five Q400s.
February 6, 2012
Airphil Express announces the expansion of its Cebu hub.
Starting February 9, passengers can now fly with ease from Cebu to Cotabato (v.v.), Cebu to Kalibo (v.v.), Cebu to Legazpi (v.v.), Cebu to Surigao (v.v.) and Cebu to Pagadian (v.v.) via Airphil Express.
The additional five routes bring the current total number of Airphil Express’s Cebu hub flights to 14, making the Queen City of the South a major hub for the budget carrier. Previously serviced routes include Cebu to Manila (v.v.), Cebu to Davao (v.v.), Cebu to Caticlan (v.v.), Cebu to Iloilo (v.v.), Cebu to Bacolod (v.v.), Cebu to Cagayan De Oro (v.v.), Cebu to Zamboanga (v.v.), Cebu to Tacloban (v.v.), and Cebu to Ozamis (v.v.).
“The move is seen to boost the number of flyers availing the services of Airphil Express,” says Alfredo Herrera, Senior Vice President for Sales and Marketing. “With more additions in the number of routes and frequencies in daily flights in the pipeline, we are anticipating about 100 percent increase in the number of passengers this year or 8 million flyers in 2012,” he reveals.
Airphil Express also experienced a remarkable growth in its customer base last year. From 2010’s 1.8 million, it ballooned to more than 122 percent in 2011. The growth is attributed to its continuously increasing number of routes and the acquisition of additional aircrafts with bigger seating capacity. The company has also embarked on Adventours, an awareness-building campaign that promotes its new routes by supporting domestic tourism.
“We don’t only advertise the new routes, for instance, Caticlan. We also promote the experience behind a Boracay trip. That is, we hype up its food, its people and its culture,” Herrera explains further. “Our Boracay route was a huge success because we marketed that route as part of our Adventours Package.”
While Airphil Express also considers its much-anticipated regular Express Sales as a key contributor to the growth, it prefers to give more credit to its excellent customer service. “We also offer other intangibles like listening to the consumers and satisfying their needs. We were the first to offer the 24/7 customer support service,” he says.
In line with the additional routes, Airphil Express is also continuously expanding its fleet. This year, it will add three 180-seater Airbus 320s, which can fly at a longer flight distance with lesser fuel consumption. This brings the total number of Airphil Express aircrafts to 11 Airbus 320, three Q300s and five Q400s.
Abacus rethinks investment in Indon airliner
Business Mirror
February 6, 2012
By MIGUEL R. CAMUS
LISTED Abacus Consolidated Resources and Holdings Inc.’s remains undecided on whether to pursue an earlier-announced plan to acquire a minority interest in an Indonesian budget carrier.
A top official said last week that the investment is not one of the company’s main concerns.
Joaquin San Diego, Corporate Secretary and Vice President, said more information is being sought from the airline regarding its plans, but he admitted that the investment is no longer a “top priority.”
Abacus had until the end of January to pay $1 million for a 33-percent stake in Lite Aviation Holdings Ltd., owner of a 49-percent stake in PT Lite Airways Indonesia (Lite Airways), which expects to start operations by the middle of 2012. The holding firm has an option to further increase its interest to 67 percent, based on an agreement with Lite Aviation.
“The level of interest isn’t that high. This is our first investment abroad,” San Diego said in a phone interview, citing Abacus’ focus on domestic opportunities such as its real estate ventures and gold prospects.
He clarified that the board of Abacus has yet to meet and formally decide on the matter.
Abacus, which disclosed initial plans to invest in Lite Airways in October, said it was drawn to the industry due to the growing prospects for airliners in Indonesia, Southeast Asia’s biggest economy.
Lite Airways has a fleet of 70-seater turboprop aircraft, making it suitable to cater to underserved “secondary airports” in large and affluent population centers, Abacus said.
A check with the air carrier’s website shows a single page stating its plans to begin full operations by April 2012 and contact details listed in Jakarta, Indonesia.
Abacus said in a Philippine Stock Exchange filing in November that it had already paid an initial $50,000 to Lite Aviation.
“In this investment, we would not have gotten into it if we didn’t find it promising good returns. But the size of the investment is what we are weighing now,” San Diego said.
New investments would help diversify Abacus’ revenue stream, which is mainly dependent on dividend earnings from its minority interest in Pacific Online Systems Corp., a listed gaming company.
The company said earlier that revenues declined almost 4 percent to P44.93 million in the nine months to September last year. Net income during the period hit P27.5 million, up 24 percent, as expenses dropped.
Abacus said in December that it plans to sell its 17.88-percent stake in Pacific Online to finance new investments. Shares of Abacus added 1.25 percent to P0.81 each on Friday, giving it a market value of P2.15 billion.
February 6, 2012
By MIGUEL R. CAMUS
LISTED Abacus Consolidated Resources and Holdings Inc.’s remains undecided on whether to pursue an earlier-announced plan to acquire a minority interest in an Indonesian budget carrier.
A top official said last week that the investment is not one of the company’s main concerns.
Joaquin San Diego, Corporate Secretary and Vice President, said more information is being sought from the airline regarding its plans, but he admitted that the investment is no longer a “top priority.”
Abacus had until the end of January to pay $1 million for a 33-percent stake in Lite Aviation Holdings Ltd., owner of a 49-percent stake in PT Lite Airways Indonesia (Lite Airways), which expects to start operations by the middle of 2012. The holding firm has an option to further increase its interest to 67 percent, based on an agreement with Lite Aviation.
“The level of interest isn’t that high. This is our first investment abroad,” San Diego said in a phone interview, citing Abacus’ focus on domestic opportunities such as its real estate ventures and gold prospects.
He clarified that the board of Abacus has yet to meet and formally decide on the matter.
Abacus, which disclosed initial plans to invest in Lite Airways in October, said it was drawn to the industry due to the growing prospects for airliners in Indonesia, Southeast Asia’s biggest economy.
Lite Airways has a fleet of 70-seater turboprop aircraft, making it suitable to cater to underserved “secondary airports” in large and affluent population centers, Abacus said.
A check with the air carrier’s website shows a single page stating its plans to begin full operations by April 2012 and contact details listed in Jakarta, Indonesia.
Abacus said in a Philippine Stock Exchange filing in November that it had already paid an initial $50,000 to Lite Aviation.
“In this investment, we would not have gotten into it if we didn’t find it promising good returns. But the size of the investment is what we are weighing now,” San Diego said.
New investments would help diversify Abacus’ revenue stream, which is mainly dependent on dividend earnings from its minority interest in Pacific Online Systems Corp., a listed gaming company.
The company said earlier that revenues declined almost 4 percent to P44.93 million in the nine months to September last year. Net income during the period hit P27.5 million, up 24 percent, as expenses dropped.
Abacus said in December that it plans to sell its 17.88-percent stake in Pacific Online to finance new investments. Shares of Abacus added 1.25 percent to P0.81 each on Friday, giving it a market value of P2.15 billion.
Lower fares boost local air travel
Business Mirror
February 6, 2012
By LENIE LECTURA
DOMESTIC passenger air traffic in 2011 rose to 18.76 million compared to 16.55 million the year before, aided by the aggressive pricing strategies of the airlines, data from the Civil Aeronautics Board (CAB) showed.
CAB Executive Director Carmelo Arcilla said the growth was expected as airlines continued to add seat capacity and flight frequencies. “But their promotional fares did help a lot. It’s a major factor on why this industry is growing,” he said when sought for comment.
Cebu Pacific, the airline unit of conglomerate JG Summit, recorded the most number of passengers at 8,478,007 out of the 10,507,987 seats allocated for the period. This represented a load factor of 81 percent in 2011.
According to Candice Iyog, Cebu Pacific vice president for marketing and distribution, the growth in passenger traffic in 2011 was mainly due to its increased flight frequencies apart from discounted fares it offered.
Cebu Pacific’s passenger traffic was higher than the 7,972,659 it recorded in the same period the year before.
Philippine Airlines (PAL) came in second with 4,312,325 passengers at end-2011, lower than the 5,311,518 million recorded in 2010. A total of 5,786,611 seats were allocated in 2011 as against 6,747,588.
February 6, 2012
By LENIE LECTURA
DOMESTIC passenger air traffic in 2011 rose to 18.76 million compared to 16.55 million the year before, aided by the aggressive pricing strategies of the airlines, data from the Civil Aeronautics Board (CAB) showed.
CAB Executive Director Carmelo Arcilla said the growth was expected as airlines continued to add seat capacity and flight frequencies. “But their promotional fares did help a lot. It’s a major factor on why this industry is growing,” he said when sought for comment.
Cebu Pacific, the airline unit of conglomerate JG Summit, recorded the most number of passengers at 8,478,007 out of the 10,507,987 seats allocated for the period. This represented a load factor of 81 percent in 2011.
According to Candice Iyog, Cebu Pacific vice president for marketing and distribution, the growth in passenger traffic in 2011 was mainly due to its increased flight frequencies apart from discounted fares it offered.
Cebu Pacific’s passenger traffic was higher than the 7,972,659 it recorded in the same period the year before.
Philippine Airlines (PAL) came in second with 4,312,325 passengers at end-2011, lower than the 5,311,518 million recorded in 2010. A total of 5,786,611 seats were allocated in 2011 as against 6,747,588.
Sunday, February 5, 2012
Airphil Express offers more new routes via its Cebu hub
The Philippine Star
February 5, 2012
MANILA, Philippines - Airphil Express corroborates its claim as the fastest growing budget airline in the country today via the continued expansion of its Cebu hub. Starting Feb. 9, passengers can now fly from Cebu to Cotabato, Cebu to Kalibo, Cebu to Legazpi, Cebu to Surigao and Cebu to Pagadian and vice versa on all flights via Airphil Express.
The additional five routes bring the current total number of Airphil Express’s Cebu hub flights to 14, making the Queen City of the South a major hub for the budget carrier.
“The move is seen to boost the number of flyers availing the services of Airphil Express,” says Alfredo Herrera, senior vice president for sales and marketing. “With more additions to the number of routes and frequencies in daily flights in the pipeline, we are anticipating about 100 percent increase in the number of passengers this year or 8 million flyers in 2012.”
Airphil Express also experienced a remarkable growth in its customer base last year. From 2010’s 1.8 million, it ballooned to more than 122 percent in 2011.
“We don’t only advertise the new routes, for instance, Caticlan. We also promote the experience behind a Boracay trip. That is, we hype up its food, its people and its culture,” Herrera explains. “Our Boracay route was a huge success because we marketed that route as part of our Adventours Package.”
While Airphil Express also considers its much-anticipated regular Express Sales as a key contributor to the growth, it prefers to give more credit to its excellent customer service. “We also offer other intangibles like listening to the consumers and satisfying their needs. We were the first to offer the 24/7 customer support service,” he says.
Airphil Express is also continuously expanding its fleet. This year, it will add three 180-seater Airbus 320s, which can fly at a longer flight distance with lesser fuel consumption. This brings the total number of Airphil Express aircrafts to 11 Airbus 320, three Q300s and five Q400s.
The Cebu hub of Airphil Express is a separate hub dedicated to the city because of the immense volume of passengers shuttling in the region. The Cebu to Dumaguete and General Santos routes fly three times weekly while the Cebu to Dipolog and Puerto Princesa routes fly four times weekly. There are also daily services from Cebu to Butuan.
One other first in the company’s online service is the manage booking feature, which allows Airphil Express passengers to make flight adjustments like rescheduling and rerouting of previously booked tickets through www.airphilexpress.com.
February 5, 2012
MANILA, Philippines - Airphil Express corroborates its claim as the fastest growing budget airline in the country today via the continued expansion of its Cebu hub. Starting Feb. 9, passengers can now fly from Cebu to Cotabato, Cebu to Kalibo, Cebu to Legazpi, Cebu to Surigao and Cebu to Pagadian and vice versa on all flights via Airphil Express.
The additional five routes bring the current total number of Airphil Express’s Cebu hub flights to 14, making the Queen City of the South a major hub for the budget carrier.
“The move is seen to boost the number of flyers availing the services of Airphil Express,” says Alfredo Herrera, senior vice president for sales and marketing. “With more additions to the number of routes and frequencies in daily flights in the pipeline, we are anticipating about 100 percent increase in the number of passengers this year or 8 million flyers in 2012.”
Airphil Express also experienced a remarkable growth in its customer base last year. From 2010’s 1.8 million, it ballooned to more than 122 percent in 2011.
“We don’t only advertise the new routes, for instance, Caticlan. We also promote the experience behind a Boracay trip. That is, we hype up its food, its people and its culture,” Herrera explains. “Our Boracay route was a huge success because we marketed that route as part of our Adventours Package.”
While Airphil Express also considers its much-anticipated regular Express Sales as a key contributor to the growth, it prefers to give more credit to its excellent customer service. “We also offer other intangibles like listening to the consumers and satisfying their needs. We were the first to offer the 24/7 customer support service,” he says.
Airphil Express is also continuously expanding its fleet. This year, it will add three 180-seater Airbus 320s, which can fly at a longer flight distance with lesser fuel consumption. This brings the total number of Airphil Express aircrafts to 11 Airbus 320, three Q300s and five Q400s.
The Cebu hub of Airphil Express is a separate hub dedicated to the city because of the immense volume of passengers shuttling in the region. The Cebu to Dumaguete and General Santos routes fly three times weekly while the Cebu to Dipolog and Puerto Princesa routes fly four times weekly. There are also daily services from Cebu to Butuan.
One other first in the company’s online service is the manage booking feature, which allows Airphil Express passengers to make flight adjustments like rescheduling and rerouting of previously booked tickets through www.airphilexpress.com.
First Bicol carrier to fly soon
Business Mirror
February 5, 2012
By Manly M. Ugalde
NAGA CITY—The first Bicol airline will soon service passengers in four of the region’s six provinces.
The four Bicol provinces to be serviced by the newest local airline are Albay, Camarines Sur, and the island provinces of Masbate and Catanduanes.
Destinations include Manila, Boracay and Palawan.
Albay Gov. Joey Sarte Salceda who is also chairman of the regional development council hailed the investors behind new airline, saying it is the answer to the demand for growing passengers in the region and a boost to the local tourism industry.
Salceda is the brain behind the Bicol international airport project now on the second phase of its construction. The proposed airport is located atop hilly Barangay Comon in Daraga, Albay overlooking the towns of Camalig, Daraga, and Legazpi City. The present airport is located in Legazpi City and has seven daily flights to Manila.
The new airline will have interconnecting flights described as the Bicol-Visayas-Palawan triangle route, according to Capt. Ramon Torres, president and chief operating officer of the South West Air Corp. that operates the newly registered Bicol Air Express.
Torres said the new airline will initially fly a 19-seater LET 410-E turbo-prop aircraft, a British Norman Islander BNI 8-seater aircraft and Fokker 50 twin-engine turboprop with a maximum capacity of 50 passengers.
The Fokker plane, said Torres, will cover tourism destinations not serviced by other airlines while the British Norman Islander BNI 8-seater aircraft will penetrate remote tourist areas such as the Caramoan Peninsula in Camarines Sur and Masbate Island.
The 19-seater LET 410-E turboprop aircraft will interconnect the Bicol-Visayas-Palawan triangle route, Torres said.
Formal launching was initially scheduled on Feb. 10 but was moved to March 8 to coincide with the opening of the Naga City office.
Torres said that the carrier will open the Naga-Virac-Legazpi-Masbate-Caticlan, Kalibo-El Nido-Puerto Princesa routes during the March 8 launch.
The airline, the official said, will also ask the Civil Aeronautics Administration for a Naga-Manila route, saying they are optimistic the regional airline can accommodate the increased passenger traffic after its opening.
Catanduanes Gov. Joseph Cua said his province is being serviced four times a week by two airlines, and that on Tuesdays, Thursdays and Saturdays, no carriers service the Manila-Virac route.
With the newest local airline servicing the regional route, passengers can now avail themselves of the fastest transportation means in addition to the regular sea transport going to the mainland via Tabaco City in Albay.
Cua said the new airline service will certainly boost the province’s tourism industry.
February 5, 2012
By Manly M. Ugalde
NAGA CITY—The first Bicol airline will soon service passengers in four of the region’s six provinces.
The four Bicol provinces to be serviced by the newest local airline are Albay, Camarines Sur, and the island provinces of Masbate and Catanduanes.
Destinations include Manila, Boracay and Palawan.
Albay Gov. Joey Sarte Salceda who is also chairman of the regional development council hailed the investors behind new airline, saying it is the answer to the demand for growing passengers in the region and a boost to the local tourism industry.
Salceda is the brain behind the Bicol international airport project now on the second phase of its construction. The proposed airport is located atop hilly Barangay Comon in Daraga, Albay overlooking the towns of Camalig, Daraga, and Legazpi City. The present airport is located in Legazpi City and has seven daily flights to Manila.
The new airline will have interconnecting flights described as the Bicol-Visayas-Palawan triangle route, according to Capt. Ramon Torres, president and chief operating officer of the South West Air Corp. that operates the newly registered Bicol Air Express.
Torres said the new airline will initially fly a 19-seater LET 410-E turbo-prop aircraft, a British Norman Islander BNI 8-seater aircraft and Fokker 50 twin-engine turboprop with a maximum capacity of 50 passengers.
The Fokker plane, said Torres, will cover tourism destinations not serviced by other airlines while the British Norman Islander BNI 8-seater aircraft will penetrate remote tourist areas such as the Caramoan Peninsula in Camarines Sur and Masbate Island.
The 19-seater LET 410-E turboprop aircraft will interconnect the Bicol-Visayas-Palawan triangle route, Torres said.
Formal launching was initially scheduled on Feb. 10 but was moved to March 8 to coincide with the opening of the Naga City office.
Torres said that the carrier will open the Naga-Virac-Legazpi-Masbate-Caticlan, Kalibo-El Nido-Puerto Princesa routes during the March 8 launch.
The airline, the official said, will also ask the Civil Aeronautics Administration for a Naga-Manila route, saying they are optimistic the regional airline can accommodate the increased passenger traffic after its opening.
Catanduanes Gov. Joseph Cua said his province is being serviced four times a week by two airlines, and that on Tuesdays, Thursdays and Saturdays, no carriers service the Manila-Virac route.
With the newest local airline servicing the regional route, passengers can now avail themselves of the fastest transportation means in addition to the regular sea transport going to the mainland via Tabaco City in Albay.
Cua said the new airline service will certainly boost the province’s tourism industry.
Thursday, February 2, 2012
AirphilExpress return to SoKor remains on hold; CAB to meet with counterpart
Business Mirror
February 2, 2012
By Lenie Lectura
AIRPHILEXPRESS’ plan to resume flights to Incheon will continue to be put on hold until aviation officials are able to secure a schedule for a meeting with their counterparts in South Korea.
The Civil Aeronautics Board (CAB) planned to meet this week authorities from South Korea to appeal a decision that denied AirphilExpress’ application to launch flights to the gateway of the Seoul capital. But the agency, said Executive Director Carmelo Arcilla, has yet to schedule a meeting.
“Obviously, the meeting will be delayed because there is no definite schedule when [it] will take place. But we are working on it so that we can address the issue,” said Arcilla in a phone interview yesterday.
AirphilExpress stopped servicing the Manila-Incheon route six years ago but formalized its intention to return last year. South Korea denied this application, citing the ban imposed by the US Federal Aviation Administration (FAA), the European Union and the International Civil Aviation Organizations (ICAO) on the Philippines.
The FAA had placed the country in “Category 2 safety status” in January 2008. This effectively prohibits local carriers from expanding operations in the US. The ICAO, meanwhile, cited the Philippines as one of the countries with serious safety concerns.
“But those with existing flights to South Korea like Cebu Pacific and Philippine Airlines are not prohibited by the South Korean government to fly there,” said Arcilla. “It only covers those that are operating for the first time and they considered AirphilExpress as a new operator because of the fact that it stopped operating.”
While AirphilExpress’ application was denied, the CAB granted Jin Air to fly the Incheon-Kalibo route until the middle of February.
The CAB’s decision to allow Jin Air into the country is based on the premise of equal opportunity in accordance with Executive Order (EO) 29, the policy implementing “open skies.”
Under the rules of the said EO, third, fourth and fifth freedom rights are allowed. This means foreign airlines can mount flights to and from any airports in the country, except the already congested Ninoy Aquino International Airport, without restrictions on frequency, capacity and type of aircraft.
The rules are meant to attract foreign airlines to operate to the country’s secondary gateways, which are largely underserved or totally unserved by both international and local airlines.
“AirphilExpress complained that there is no reciprocity and Filipino carriers are not given equal opportunity. We want to seek a dialogue with the South Korean government as soon as possible,” added Arcilla.
February 2, 2012
By Lenie Lectura
AIRPHILEXPRESS’ plan to resume flights to Incheon will continue to be put on hold until aviation officials are able to secure a schedule for a meeting with their counterparts in South Korea.
The Civil Aeronautics Board (CAB) planned to meet this week authorities from South Korea to appeal a decision that denied AirphilExpress’ application to launch flights to the gateway of the Seoul capital. But the agency, said Executive Director Carmelo Arcilla, has yet to schedule a meeting.
“Obviously, the meeting will be delayed because there is no definite schedule when [it] will take place. But we are working on it so that we can address the issue,” said Arcilla in a phone interview yesterday.
AirphilExpress stopped servicing the Manila-Incheon route six years ago but formalized its intention to return last year. South Korea denied this application, citing the ban imposed by the US Federal Aviation Administration (FAA), the European Union and the International Civil Aviation Organizations (ICAO) on the Philippines.
The FAA had placed the country in “Category 2 safety status” in January 2008. This effectively prohibits local carriers from expanding operations in the US. The ICAO, meanwhile, cited the Philippines as one of the countries with serious safety concerns.
“But those with existing flights to South Korea like Cebu Pacific and Philippine Airlines are not prohibited by the South Korean government to fly there,” said Arcilla. “It only covers those that are operating for the first time and they considered AirphilExpress as a new operator because of the fact that it stopped operating.”
While AirphilExpress’ application was denied, the CAB granted Jin Air to fly the Incheon-Kalibo route until the middle of February.
The CAB’s decision to allow Jin Air into the country is based on the premise of equal opportunity in accordance with Executive Order (EO) 29, the policy implementing “open skies.”
Under the rules of the said EO, third, fourth and fifth freedom rights are allowed. This means foreign airlines can mount flights to and from any airports in the country, except the already congested Ninoy Aquino International Airport, without restrictions on frequency, capacity and type of aircraft.
The rules are meant to attract foreign airlines to operate to the country’s secondary gateways, which are largely underserved or totally unserved by both international and local airlines.
“AirphilExpress complained that there is no reciprocity and Filipino carriers are not given equal opportunity. We want to seek a dialogue with the South Korean government as soon as possible,” added Arcilla.
Wednesday, February 1, 2012
Korean Air Swings To Net Loss In 2011 of $87M
Manila Bulletin
February 1, 2012
SEOUL (AFP) – Flag carrier Korean Air said it swung to a net loss last year because of higher fuel costs, lower cargo demand and a weaker local currency.
For the whole of 2011, the airline said it recorded a consolidated net loss of 98.2 billion won ($87 million) compared with a net profit of 623.9 billion a year earlier.
Korean Air Lines Co. Ltd. said that it plans to invest 1.8 trillion won ($1.6 billion) in 2012 and purchase 14 aircraft including Airbus' flagship A380 superjumbo.
Sales were up 5.4 percent to 12.27 trillion won while operating profit plunged 62.8 percent to 459.8 billion won.
Operating expenses rose 14 percent to 11.807 trillion won last year as jet fuel prices increased to an average of $126 a barrel compared with $121 a barrel in 2010.
This year the airline set higher business targets, citing less volatile exchange rates and fuel prices.
Korean Air – the world's second-largest cargo carrier by volume after Cathay Pacific – also expects increased shipments thanks to the London Olympic Games and South Korea's new free-trade agreement with Europe.
Korean Air said its fourth-quarter net profit jumped to 146.1 billion won from 24.4 billion won a year earlier due to foreign exchange gains.
Operating profit fell 35 percent to 76.6 billion won, while sales rose 8.5 percent to 3.19 trillion won. The carrier also said in a statement that it targeted 12.8 trillion won in sales this year and an 820 billion won operating profit.
February 1, 2012
SEOUL (AFP) – Flag carrier Korean Air said it swung to a net loss last year because of higher fuel costs, lower cargo demand and a weaker local currency.
For the whole of 2011, the airline said it recorded a consolidated net loss of 98.2 billion won ($87 million) compared with a net profit of 623.9 billion a year earlier.
Korean Air Lines Co. Ltd. said that it plans to invest 1.8 trillion won ($1.6 billion) in 2012 and purchase 14 aircraft including Airbus' flagship A380 superjumbo.
Sales were up 5.4 percent to 12.27 trillion won while operating profit plunged 62.8 percent to 459.8 billion won.
Operating expenses rose 14 percent to 11.807 trillion won last year as jet fuel prices increased to an average of $126 a barrel compared with $121 a barrel in 2010.
This year the airline set higher business targets, citing less volatile exchange rates and fuel prices.
Korean Air – the world's second-largest cargo carrier by volume after Cathay Pacific – also expects increased shipments thanks to the London Olympic Games and South Korea's new free-trade agreement with Europe.
Korean Air said its fourth-quarter net profit jumped to 146.1 billion won from 24.4 billion won a year earlier due to foreign exchange gains.
Operating profit fell 35 percent to 76.6 billion won, while sales rose 8.5 percent to 3.19 trillion won. The carrier also said in a statement that it targeted 12.8 trillion won in sales this year and an 820 billion won operating profit.
Southeast Asian Airlines Seen To Profit As Myanmar Opens Up
Manila Bulletin
February 1, 2012
By HARRY SUHARTONO
SINGAPORE (Reuters) – Southeast Asian carriers are set to profit from the expected surge in the number of leisure and business travellers to Myanmar as it re-emerges from political isolation, but poor infrastructure is likely to slow development.
The former Burma, one of the most isolated countries in Asia, is being welcomed back into the international fold after two decades of sanctions, thanks to democratic reforms including the release of political prisoners by President Thein Sein.
Thai Airways International PCL, SilkAir, AirAsia Bhd, and JetStar, have flown to Myanmar's capital Yangon for a number of years and are seen as the main beneficiaries from the political shift in the country.
''This is a huge country which will provide new growth for airlines, especially the low cost carriers,'' Standard and Poor's analyst Shukor Yusof said, adding that the yields that carriers are enjoying on Yangon routes have been good.
With its pristine beaches and unspoilt cultural sites, Myanmar is an attractive destination for travellers jaded by the rapid development seen elsewhere in Southeast Asia, and tourist numbers are already rising rapidly with potential for much more growth.
During the 2010-2011 (April-March) fiscal year, 424,000 people visited Myanmar, according to official data. That compares with 19 million tourists that its neighboring Thailand attracts each year.
The Thai affiliate of Malaysian budget carrier AirAsia, Thai AirAsia, said it was looking to add new routes into the country's inland cultural centres. AirAsia flies to Yangon from Bangkok and Kuala Lumpur.
''We are considering opening more flights and destinations in Myanmar. We're only operating to Yangon at the moment, but we're currently looking at Mandalay and Bagan,'' Thai AirAsia CEO Tassapon Bijleveld told Reuters.
Silk Air, the regional carrier of Singapore Airlines Ltd., and JetStar, a subsidiary of Qantas Airways Ltd., said they have no current plans to add flights to Myanmar but will monitor any opportunities to expand.
John Rachmat, Singapore-based airline analyst at RBS, said the thawing diplomatic climate would not necessarily translate into new routes being opened in the short term, as airlines would want to make sure that there would be any reversal in the political stance of Myanmar.
''Opening of a new route is quite an investment for an airline and for them to do this they want to make sure that the risk are manageable.''
February 1, 2012
By HARRY SUHARTONO
SINGAPORE (Reuters) – Southeast Asian carriers are set to profit from the expected surge in the number of leisure and business travellers to Myanmar as it re-emerges from political isolation, but poor infrastructure is likely to slow development.
The former Burma, one of the most isolated countries in Asia, is being welcomed back into the international fold after two decades of sanctions, thanks to democratic reforms including the release of political prisoners by President Thein Sein.
Thai Airways International PCL, SilkAir, AirAsia Bhd, and JetStar, have flown to Myanmar's capital Yangon for a number of years and are seen as the main beneficiaries from the political shift in the country.
''This is a huge country which will provide new growth for airlines, especially the low cost carriers,'' Standard and Poor's analyst Shukor Yusof said, adding that the yields that carriers are enjoying on Yangon routes have been good.
With its pristine beaches and unspoilt cultural sites, Myanmar is an attractive destination for travellers jaded by the rapid development seen elsewhere in Southeast Asia, and tourist numbers are already rising rapidly with potential for much more growth.
During the 2010-2011 (April-March) fiscal year, 424,000 people visited Myanmar, according to official data. That compares with 19 million tourists that its neighboring Thailand attracts each year.
The Thai affiliate of Malaysian budget carrier AirAsia, Thai AirAsia, said it was looking to add new routes into the country's inland cultural centres. AirAsia flies to Yangon from Bangkok and Kuala Lumpur.
''We are considering opening more flights and destinations in Myanmar. We're only operating to Yangon at the moment, but we're currently looking at Mandalay and Bagan,'' Thai AirAsia CEO Tassapon Bijleveld told Reuters.
Silk Air, the regional carrier of Singapore Airlines Ltd., and JetStar, a subsidiary of Qantas Airways Ltd., said they have no current plans to add flights to Myanmar but will monitor any opportunities to expand.
John Rachmat, Singapore-based airline analyst at RBS, said the thawing diplomatic climate would not necessarily translate into new routes being opened in the short term, as airlines would want to make sure that there would be any reversal in the political stance of Myanmar.
''Opening of a new route is quite an investment for an airline and for them to do this they want to make sure that the risk are manageable.''
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