Manila Bulletin
September 30, 2012
Etihad Airways, the national airline of the United Arab Emirates, has announced it will fly daily between Abu Dhabi and Istanbul from January 1, 2013.
The Abu Dhabi-based airline launched services to Istanbul, the largest city in Turkey, with four non-stop flights a week in June 2009, increasing to five services per week later that same year.
The daily service will support traffic growth between Abu Dhabi and Turkey and connecting traffic to onward destinations across the GCC, Indian Subcontinent, North Asia and Australia.
To date, Etihad Airways has flown more than 200,000 guests on the route.
James Hogan, Etihad Airways President & Chief Executive Officer, said the move to daily services was motivated by strong performance and the potential for further growth.
"Since launching, we have observed a high point-to-point traffic flow between Istanbul and Abu Dhabi, accounting for the largest share of travellers on the route. This is indicative of the thriving trade and commercial relationship between these two countries, as well as world-class tourism programs. A significant number of passengers on the route travel between Turkey and Northeast Asia and Australasia. Further supporting this traffic is Etihad Airways' ongoing growth in Asia. Tokyo, for example, will increase from five services per week to daily in April 2013 and we also commenced Shanghai and Chengdu services in the last year, enhancing connections to China," Hogan said.
He said, "We continue to look at ways to enhance our codeshare partnership with Turkish Airlines in order to develop our presence in Turkey. By putting our EY-code on their four times weekly flights to Abu Dhabi, in addition to their TK-coding on our flights on the route, we bring strong feeds onto our network and theirs, generating significant revenue for the Istanbul-Abu Dhabi route."
The daily flights to Istanbul will be operated by a two-class Airbus A320 aircraft, configured with 16 Pearl Business class and 120 Coral Economy class seats.
Sunday, September 30, 2012
Cathay Pacific To Upgrade Reg’l Business Class Seats In 2013
Manila Bulletin
September 30, 2012
Cathay Pacific Airways Ltd., Asia's largest international carrier, will introduce new business-class seats in its regional fleet next year as the region's growing economies spur corporate travel.
The new reclining seats will have more leg room than the carrier's current units, according to a statement today. They will also have connectors that will let passengers watch content from Apple Inc. devices on the inflight entertainment system.
Cathay will install the new seats across the Boeing Co. 777s and Airbus SAS A330s it uses on regional routes by the end of 2014.
The airline has also begun rolling out new long-haul business-class cabins and added premium-economy cabins as it competes with Singapore Airlines Ltd. and China Southern Airlines Co. for lucrative corporate travelers.
"We are doing all these because it's a competitive market," Chief Executive Officer John Slosar told reporters in Hong Kong. "I need to give my customers a reason to come back and choose Cathay Pacific."
New regional business-class seats will start appearing in Boeing 777s in January and in Airbus 330s in the fourth quarter, the company said.
Cathay Pacific fell 0.6 percent to HK$12.92 in Hong Kong trading today. The benchmark Hang Seng Index dropped 0.2 percent. The carrier has declined 3 percent this year.
September 30, 2012
Cathay Pacific Airways Ltd., Asia's largest international carrier, will introduce new business-class seats in its regional fleet next year as the region's growing economies spur corporate travel.
The new reclining seats will have more leg room than the carrier's current units, according to a statement today. They will also have connectors that will let passengers watch content from Apple Inc. devices on the inflight entertainment system.
Cathay will install the new seats across the Boeing Co. 777s and Airbus SAS A330s it uses on regional routes by the end of 2014.
The airline has also begun rolling out new long-haul business-class cabins and added premium-economy cabins as it competes with Singapore Airlines Ltd. and China Southern Airlines Co. for lucrative corporate travelers.
"We are doing all these because it's a competitive market," Chief Executive Officer John Slosar told reporters in Hong Kong. "I need to give my customers a reason to come back and choose Cathay Pacific."
New regional business-class seats will start appearing in Boeing 777s in January and in Airbus 330s in the fourth quarter, the company said.
Cathay Pacific fell 0.6 percent to HK$12.92 in Hong Kong trading today. The benchmark Hang Seng Index dropped 0.2 percent. The carrier has declined 3 percent this year.
High Fees Threaten KL Status As Asia’s Budget Airline Hub
Manila Bulletin
September 30, 2012
KUALA LUMPUR (AFP) - Kuala Lumpur (KL) risks losing its status as Asia's busiest low-cost airline hub because high passenger fees could scare carriers away, Tony Fernandes, head of Malaysia's AirAsia said.
Fernandes warned regional airports such as Don Mueang in Thailand and Clark in the Philippines would soon been charging less than the 32 ringgit ($10) passenger fee at the Kuala Lumpur budget terminal used by AirAsia.
"We (Malaysia) are going to lose our competitive edge. Our costs are going up every day," he said at the launch of an AirAsia badminton training academy.
The AirAsia founder urged authorities not to "kill something that is good," as rivals scramble for customers during a global slowdown, and vie for business from China which has a huge number of passengers from the emerging middle class.
Clark is expected to soon cut its fees - levied on each ticket sold - to around $9, while Don Mueang, Bangkok's second airport which AirAsia is shifting to from Monday, is also expected to undercut Kuala Lumpur.
Fernandes warned that high passenger costs would translate to higher fares and this would discourage people from travelling to Malaysia, which would deliver a "blow" to the country's tourism industry.
"The reality is every airport around the region is reducing charges. Clark will cut by at least 30 percent," he said. Don Mueang begins serving low-cost airlines from Monday.
"We want to make sure Malaysia remains the main (low-cost) hub. Everyone will lose out at the end," he said.
AirAsia operates from the Low Cost Carrier Terminal (LCCT) near the Malaysian capital's main Kuala Lumpur International Airport.
Its long-haul budget counterpart AirAsia X has stopped its services to India from its Kuala Lumpur hub due to steep increase in charges at Delhi, Mumbai and Hyderabad airports.
AirAsia X has also pulled out from Paris and London, citing a controversial new carbon tax the European Union has imposed.
AirAsia Malaysia CEO Aireen Omar told AFP the charges in Malaysia were "about 15 to 20 percent of (operating) costs."
September 30, 2012
KUALA LUMPUR (AFP) - Kuala Lumpur (KL) risks losing its status as Asia's busiest low-cost airline hub because high passenger fees could scare carriers away, Tony Fernandes, head of Malaysia's AirAsia said.
Fernandes warned regional airports such as Don Mueang in Thailand and Clark in the Philippines would soon been charging less than the 32 ringgit ($10) passenger fee at the Kuala Lumpur budget terminal used by AirAsia.
"We (Malaysia) are going to lose our competitive edge. Our costs are going up every day," he said at the launch of an AirAsia badminton training academy.
The AirAsia founder urged authorities not to "kill something that is good," as rivals scramble for customers during a global slowdown, and vie for business from China which has a huge number of passengers from the emerging middle class.
Clark is expected to soon cut its fees - levied on each ticket sold - to around $9, while Don Mueang, Bangkok's second airport which AirAsia is shifting to from Monday, is also expected to undercut Kuala Lumpur.
Fernandes warned that high passenger costs would translate to higher fares and this would discourage people from travelling to Malaysia, which would deliver a "blow" to the country's tourism industry.
"The reality is every airport around the region is reducing charges. Clark will cut by at least 30 percent," he said. Don Mueang begins serving low-cost airlines from Monday.
"We want to make sure Malaysia remains the main (low-cost) hub. Everyone will lose out at the end," he said.
AirAsia operates from the Low Cost Carrier Terminal (LCCT) near the Malaysian capital's main Kuala Lumpur International Airport.
Its long-haul budget counterpart AirAsia X has stopped its services to India from its Kuala Lumpur hub due to steep increase in charges at Delhi, Mumbai and Hyderabad airports.
AirAsia X has also pulled out from Paris and London, citing a controversial new carbon tax the European Union has imposed.
AirAsia Malaysia CEO Aireen Omar told AFP the charges in Malaysia were "about 15 to 20 percent of (operating) costs."
Saturday, September 29, 2012
Asia's budget airline boom bypasses China
Manila Standard Today
September 29, 2012
By KELVIN CHAN
HONG KONG (AP) — When businesswoman Ren Hong flew home after a recent trip to Beijing on state-owned Air China, she was hoping for a decent inflight meal to tide her over until she got back to the spicy cuisine of her native Sichuan province.
The airline's meager offering, which was little more than "just bread," was a galling experience for Ren who wondered why the carrier didn't cut both the pretense of full service and the price of the ticket.
Her gripe highlights how Chinese travelers have been left out of the massive budget airline boom that has swept Asia. From almost none a decade ago, the region now has more than 50 low cost carriers. The fast growth of no-frills airlines such as AirAsia and the slew of recent start-ups including Singapore's Scoot and AirAsia Japan underline surging demand in the region for affordable air travel. The rise of budget carriers in Asia follows similar expansion in Europe and North America in previous decades.
But in China, where the government still keeps tight control of the rapidly growing airline industry, three big state-owned carriers dominate. Aviation authorities' efforts to shield them, as well as keep the industry from growing too rapidly and compromising safety, mean travelers like Ren pay up to twice as much.
"I've found that flight tickets domestically sometimes are more expensive than the international ones due to monopolization and less competition," said Ren, a 37-year-old who runs an export business and also blogs about her travels in her spare time. Even for tickets on Shanghai-based Spring Airlines, considered China's only discount carrier, "their price is just as same as the big airlines" during high season, she said.
While Chinese travelers are benefiting from foreign budget airlines flying to some Chinese cities, analysts and consultants say government policy measures are preventing the domestic aviation market from opening up too quickly. China's domestic market is one of the biggest prizes in Asia's travel industry, with 264 million passengers last year, according to the Civil Aviation Authority of China, which forecasts the number will grow about six-fold by 2030.
"The domestic market in China has more or less remained a fortress," Xiaowen Fu, an aviation expert at Hong Kong Polytechnic University, said at a recent conference in Macau organized by the Sydney-based CAPA-Center for Aviation.
Like other essential industries in China, the policy measures are aimed at protecting the chosen few national champions from too much competition. China's three major state-owned airlines, Beijing-based Air China Ltd., Shanghai-based China Eastern Airlines Corp. and Guangzhou-based China Southern Airlines Ltd., carried 191 million passengers among them in 2011. But in the first half of 2012 their profits collapsed because of higher fuel prices and foreign currency losses. The rest of the market is divided between smaller state carriers — some owned by the big three — and a handful of private operators.
An unsurprising outcome of the cossetted state airline industry is a perpetual sense of grievance among travelers at poor service and lack of choice.
"The food on Chinese airlines is worse and more basic than it is on the international airlines," said 25-year-old Li Peng, who recently quit his job in Beijing to travel overseas for a year.
"And when the flight is delayed, I never get any feedback after my complaints. Many flights are delayed more than two hours" he said. "I do wish there were more budget airlines, especially in China," he said.
China's civil aviation policy hinders the country's budget airline industry in two ways, according to experts. First, it makes it almost impossible for a private company to start a new airline. Second, the policy limits growth by existing airlines, including state-run carriers, through measures including requiring approvals for new airplanes and routes.
For airlines operating in China, "they've got constraints whether it be on operating strategy, or what they're allowed to do at the airports, or how they're allowed to recruit pilots, or what the airport charges," said Con Korfiatis, director of Flight Ideas Consulting. "So the low-cost carrier explosion in China is still being constrained."
In contrast, discount airlines continue to spread their wings elsewhere in Asia. Three started flying in Japan this year, including Peach Aviation and local ventures from Malaysia's AirAsia and Australia's Jetstar. Also taking flight in 2012 were Singapore Airlines' Scoot, Thai Airways International's Thai Smile and AirAsia Philippines. Next year, Indonesia's Lion Air plans to start flights on Malindo Airways, a low-cost Malaysia operation, the company said earlier this month.
Even China Eastern Airlines Co. is joining in, although its low-cost carrier is a joint venture with Qantas subsidiary Jetstar that will be based in Hong Kong rather than mainland China.
The Civil Aviation Authority of China hinted in July that it would support budget airlines by loosening price controls. But director Li Jiaxiang stopped short of announcing any major policy reforms.
The measures aren't just aimed at China's private or discount carriers — they also apply to China's state-owned carriers. Analysts say policies are designed to prevent unfettered growth. Authorities clamped down following a spell of supercharged growth during which the number of passengers expanded by 40 percent in 2003-2004. Such red-hot growth puts tremendous strain on pilots and infrastructure such as air traffic control and airports, especially on heavily congested air routes between major Chinese cities including Beijing, Shanghai and Guangzhou.
"The market is already growing at 11-16 percent domestically at average fares," said Mario Hardy, a vice president at research firm UBM Aviation. "Imagine if an AirAsia or a Spring was able tomorrow to lower that price by half. How many more people would be travelling?"
Hardy and other experts and industry insiders believe that Chinese authorities will allow the aviation market to open up gradually so that there's enough time to build up the required infrastructure. China is building 82 new airports and renovating 101 others in a five-year plan that runs until 2015.
"Otherwise it will be a mess," Hardy said. "It would be chaos."
Until then, travelers like Ren, the businesswoman and travel blogger, will have to put up with higher prices. Ren is thinking of going to India on her next trip but is disappointed with the limited options. She could fly with Air China at a cost of 4,000-5,000 yuan ($$635-$790) round trip. Or she could pay 2,000 yuan ($320) on AirAsia — but she would need to change planes at AirAsia's home base in Malaysia.
"It's annoying," said Ren. But "life is not perfect and I have no choice. I could not ask for the flight to be both cheap and offer the perfect route."
September 29, 2012
By KELVIN CHAN
HONG KONG (AP) — When businesswoman Ren Hong flew home after a recent trip to Beijing on state-owned Air China, she was hoping for a decent inflight meal to tide her over until she got back to the spicy cuisine of her native Sichuan province.
The airline's meager offering, which was little more than "just bread," was a galling experience for Ren who wondered why the carrier didn't cut both the pretense of full service and the price of the ticket.
Her gripe highlights how Chinese travelers have been left out of the massive budget airline boom that has swept Asia. From almost none a decade ago, the region now has more than 50 low cost carriers. The fast growth of no-frills airlines such as AirAsia and the slew of recent start-ups including Singapore's Scoot and AirAsia Japan underline surging demand in the region for affordable air travel. The rise of budget carriers in Asia follows similar expansion in Europe and North America in previous decades.
But in China, where the government still keeps tight control of the rapidly growing airline industry, three big state-owned carriers dominate. Aviation authorities' efforts to shield them, as well as keep the industry from growing too rapidly and compromising safety, mean travelers like Ren pay up to twice as much.
"I've found that flight tickets domestically sometimes are more expensive than the international ones due to monopolization and less competition," said Ren, a 37-year-old who runs an export business and also blogs about her travels in her spare time. Even for tickets on Shanghai-based Spring Airlines, considered China's only discount carrier, "their price is just as same as the big airlines" during high season, she said.
While Chinese travelers are benefiting from foreign budget airlines flying to some Chinese cities, analysts and consultants say government policy measures are preventing the domestic aviation market from opening up too quickly. China's domestic market is one of the biggest prizes in Asia's travel industry, with 264 million passengers last year, according to the Civil Aviation Authority of China, which forecasts the number will grow about six-fold by 2030.
"The domestic market in China has more or less remained a fortress," Xiaowen Fu, an aviation expert at Hong Kong Polytechnic University, said at a recent conference in Macau organized by the Sydney-based CAPA-Center for Aviation.
Like other essential industries in China, the policy measures are aimed at protecting the chosen few national champions from too much competition. China's three major state-owned airlines, Beijing-based Air China Ltd., Shanghai-based China Eastern Airlines Corp. and Guangzhou-based China Southern Airlines Ltd., carried 191 million passengers among them in 2011. But in the first half of 2012 their profits collapsed because of higher fuel prices and foreign currency losses. The rest of the market is divided between smaller state carriers — some owned by the big three — and a handful of private operators.
An unsurprising outcome of the cossetted state airline industry is a perpetual sense of grievance among travelers at poor service and lack of choice.
"The food on Chinese airlines is worse and more basic than it is on the international airlines," said 25-year-old Li Peng, who recently quit his job in Beijing to travel overseas for a year.
"And when the flight is delayed, I never get any feedback after my complaints. Many flights are delayed more than two hours" he said. "I do wish there were more budget airlines, especially in China," he said.
China's civil aviation policy hinders the country's budget airline industry in two ways, according to experts. First, it makes it almost impossible for a private company to start a new airline. Second, the policy limits growth by existing airlines, including state-run carriers, through measures including requiring approvals for new airplanes and routes.
For airlines operating in China, "they've got constraints whether it be on operating strategy, or what they're allowed to do at the airports, or how they're allowed to recruit pilots, or what the airport charges," said Con Korfiatis, director of Flight Ideas Consulting. "So the low-cost carrier explosion in China is still being constrained."
In contrast, discount airlines continue to spread their wings elsewhere in Asia. Three started flying in Japan this year, including Peach Aviation and local ventures from Malaysia's AirAsia and Australia's Jetstar. Also taking flight in 2012 were Singapore Airlines' Scoot, Thai Airways International's Thai Smile and AirAsia Philippines. Next year, Indonesia's Lion Air plans to start flights on Malindo Airways, a low-cost Malaysia operation, the company said earlier this month.
Even China Eastern Airlines Co. is joining in, although its low-cost carrier is a joint venture with Qantas subsidiary Jetstar that will be based in Hong Kong rather than mainland China.
The Civil Aviation Authority of China hinted in July that it would support budget airlines by loosening price controls. But director Li Jiaxiang stopped short of announcing any major policy reforms.
The measures aren't just aimed at China's private or discount carriers — they also apply to China's state-owned carriers. Analysts say policies are designed to prevent unfettered growth. Authorities clamped down following a spell of supercharged growth during which the number of passengers expanded by 40 percent in 2003-2004. Such red-hot growth puts tremendous strain on pilots and infrastructure such as air traffic control and airports, especially on heavily congested air routes between major Chinese cities including Beijing, Shanghai and Guangzhou.
"The market is already growing at 11-16 percent domestically at average fares," said Mario Hardy, a vice president at research firm UBM Aviation. "Imagine if an AirAsia or a Spring was able tomorrow to lower that price by half. How many more people would be travelling?"
Hardy and other experts and industry insiders believe that Chinese authorities will allow the aviation market to open up gradually so that there's enough time to build up the required infrastructure. China is building 82 new airports and renovating 101 others in a five-year plan that runs until 2015.
"Otherwise it will be a mess," Hardy said. "It would be chaos."
Until then, travelers like Ren, the businesswoman and travel blogger, will have to put up with higher prices. Ren is thinking of going to India on her next trip but is disappointed with the limited options. She could fly with Air China at a cost of 4,000-5,000 yuan ($$635-$790) round trip. Or she could pay 2,000 yuan ($320) on AirAsia — but she would need to change planes at AirAsia's home base in Malaysia.
"It's annoying," said Ren. But "life is not perfect and I have no choice. I could not ask for the flight to be both cheap and offer the perfect route."
Wednesday, September 26, 2012
Lion Air Eyes More Jets For Growing SE Asia Market
Manila Bulletin
September 26, 2012
By Tim Hepher
PARIS (Reuters) – Indonesia’s Lion Air may add more jets to recent plane orders in order to keep pace with Southeast (SE) Asia’s transport growth as a US analyst said the airline may place a multi-billion-dollar order with Europe’s Airbus.
Lion Air co-founder and chief executive, Rusdi Kirana, said on Tuesday that Southeast Asia’s double-digit increase in air travel demand, spurred by economic growth and rising incomes, was set to continue.
“We think that in the next decade we will need a lot of aircraft,’’ he told Reuters in a telephone interview. “The market is growing very fast. We are looking, but it depends on pricing and many other factors. We are talking, but we have not made any decisions.’’
US aerospace analyst Scott Hamilton said however, that Lion Air was poised to order up to 100 Airbus jets, breaking Boeing’s dominance at Indonesia’s largest domestic airline.
Orders of 100 aircraft would be worth approximately $9 billion at list prices for 150-seat jets like the Airbus A320 or Boeing 737, but airlines usually negotiate steep discounts.
Officials with Airbus could not immediately be reached for comment.
Lion Air shot to attention in late 2010 when a provisional order for 230 Boeing jets got high billing during a visit to the world’s fourth most-populous nation by US President Barack Obama, eager to play up the importance of US exports.
Confirmed in February this year, the record deal took Lion Air’s order book to more than 400 planes, which it aims to use to fly across the Asia-Pacific region.
Bolstered by export credits from Western producing countries, airlines in emerging markets have been placing significant bets on air travel in a region where passenger growth outpaces that of developed nations despite some spillover from Europe’s debt crisis.
Indonesia’s average annual passenger growth is 21 percent, according to Lion Air.
If confirmed, a deal between Lion Air and Boeing’s arch-rival could be seen as a turning point after a series of orders that lifted the airline to be one of Boeing’s top customers.
Airbus, a subsidiary of EADS, and Boeing, have been locked in a fierce price fight for much of this year, often halving official list prices to take or defend market share, according to multiple industry sources and analysts.
Jakarta-based Lion Air competes with one of Airbus’s largest customers, AirAsia of Malaysia, which has itself confirmed plans to order another 100 Airbus jets in addition to a total of 375 already ordered, of which 100 are now in service.
Lion Air this month also announced plans to challenge AirAsia by setting up a new, low-cost airline based in Malaysia as Southeast Asia’s growing middle class fuels demand for cheap flights.
The new carrier, Malindo Airways, will begin flights between Indonesia and Malaysia next May with a fleet of 12 Boeing 727 aircraft, which it plans to expand to 100 planes within a decade, Kirana said when announcing the launch.
Lion Air meanwhile, says it is in talks with Boeing to buy 10 787 Dreamliners worth $1.9 billion to tap the long-haul market. The plan would extend an initial deal in June to buy five 787 Dreamliner passenger jets.
September 26, 2012
By Tim Hepher
PARIS (Reuters) – Indonesia’s Lion Air may add more jets to recent plane orders in order to keep pace with Southeast (SE) Asia’s transport growth as a US analyst said the airline may place a multi-billion-dollar order with Europe’s Airbus.
Lion Air co-founder and chief executive, Rusdi Kirana, said on Tuesday that Southeast Asia’s double-digit increase in air travel demand, spurred by economic growth and rising incomes, was set to continue.
“We think that in the next decade we will need a lot of aircraft,’’ he told Reuters in a telephone interview. “The market is growing very fast. We are looking, but it depends on pricing and many other factors. We are talking, but we have not made any decisions.’’
US aerospace analyst Scott Hamilton said however, that Lion Air was poised to order up to 100 Airbus jets, breaking Boeing’s dominance at Indonesia’s largest domestic airline.
Orders of 100 aircraft would be worth approximately $9 billion at list prices for 150-seat jets like the Airbus A320 or Boeing 737, but airlines usually negotiate steep discounts.
Officials with Airbus could not immediately be reached for comment.
Lion Air shot to attention in late 2010 when a provisional order for 230 Boeing jets got high billing during a visit to the world’s fourth most-populous nation by US President Barack Obama, eager to play up the importance of US exports.
Confirmed in February this year, the record deal took Lion Air’s order book to more than 400 planes, which it aims to use to fly across the Asia-Pacific region.
Bolstered by export credits from Western producing countries, airlines in emerging markets have been placing significant bets on air travel in a region where passenger growth outpaces that of developed nations despite some spillover from Europe’s debt crisis.
Indonesia’s average annual passenger growth is 21 percent, according to Lion Air.
If confirmed, a deal between Lion Air and Boeing’s arch-rival could be seen as a turning point after a series of orders that lifted the airline to be one of Boeing’s top customers.
Airbus, a subsidiary of EADS, and Boeing, have been locked in a fierce price fight for much of this year, often halving official list prices to take or defend market share, according to multiple industry sources and analysts.
Jakarta-based Lion Air competes with one of Airbus’s largest customers, AirAsia of Malaysia, which has itself confirmed plans to order another 100 Airbus jets in addition to a total of 375 already ordered, of which 100 are now in service.
Lion Air this month also announced plans to challenge AirAsia by setting up a new, low-cost airline based in Malaysia as Southeast Asia’s growing middle class fuels demand for cheap flights.
The new carrier, Malindo Airways, will begin flights between Indonesia and Malaysia next May with a fleet of 12 Boeing 727 aircraft, which it plans to expand to 100 planes within a decade, Kirana said when announcing the launch.
Lion Air meanwhile, says it is in talks with Boeing to buy 10 787 Dreamliners worth $1.9 billion to tap the long-haul market. The plan would extend an initial deal in June to buy five 787 Dreamliner passenger jets.
Lion Air Eyes More Jets For Growing SE Asia Market
Manila Bulletin
September 26, 2012
By Tim Hepher
PARIS (Reuters) – Indonesia’s Lion Air may add more jets to recent plane orders in order to keep pace with Southeast (SE) Asia’s transport growth as a US analyst said the airline may place a multi-billion-dollar order with Europe’s Airbus.
Lion Air co-founder and chief executive, Rusdi Kirana, said on Tuesday that Southeast Asia’s double-digit increase in air travel demand, spurred by economic growth and rising incomes, was set to continue.
“We think that in the next decade we will need a lot of aircraft,’’ he told Reuters in a telephone interview. “The market is growing very fast. We are looking, but it depends on pricing and many other factors. We are talking, but we have not made any decisions.’’
US aerospace analyst Scott Hamilton said however, that Lion Air was poised to order up to 100 Airbus jets, breaking Boeing’s dominance at Indonesia’s largest domestic airline.
Orders of 100 aircraft would be worth approximately $9 billion at list prices for 150-seat jets like the Airbus A320 or Boeing 737, but airlines usually negotiate steep discounts.
Officials with Airbus could not immediately be reached for comment.
Lion Air shot to attention in late 2010 when a provisional order for 230 Boeing jets got high billing during a visit to the world’s fourth most-populous nation by US President Barack Obama, eager to play up the importance of US exports.
Confirmed in February this year, the record deal took Lion Air’s order book to more than 400 planes, which it aims to use to fly across the Asia-Pacific region.
Bolstered by export credits from Western producing countries, airlines in emerging markets have been placing significant bets on air travel in a region where passenger growth outpaces that of developed nations despite some spillover from Europe’s debt crisis.
Indonesia’s average annual passenger growth is 21 percent, according to Lion Air.
If confirmed, a deal between Lion Air and Boeing’s arch-rival could be seen as a turning point after a series of orders that lifted the airline to be one of Boeing’s top customers.
Airbus, a subsidiary of EADS, and Boeing, have been locked in a fierce price fight for much of this year, often halving official list prices to take or defend market share, according to multiple industry sources and analysts.
Jakarta-based Lion Air competes with one of Airbus’s largest customers, AirAsia of Malaysia, which has itself confirmed plans to order another 100 Airbus jets in addition to a total of 375 already ordered, of which 100 are now in service.
Lion Air this month also announced plans to challenge AirAsia by setting up a new, low-cost airline based in Malaysia as Southeast Asia’s growing middle class fuels demand for cheap flights.
The new carrier, Malindo Airways, will begin flights between Indonesia and Malaysia next May with a fleet of 12 Boeing 727 aircraft, which it plans to expand to 100 planes within a decade, Kirana said when announcing the launch.
Lion Air meanwhile, says it is in talks with Boeing to buy 10 787 Dreamliners worth $1.9 billion to tap the long-haul market. The plan would extend an initial deal in June to buy five 787 Dreamliner passenger jets.
September 26, 2012
By Tim Hepher
PARIS (Reuters) – Indonesia’s Lion Air may add more jets to recent plane orders in order to keep pace with Southeast (SE) Asia’s transport growth as a US analyst said the airline may place a multi-billion-dollar order with Europe’s Airbus.
Lion Air co-founder and chief executive, Rusdi Kirana, said on Tuesday that Southeast Asia’s double-digit increase in air travel demand, spurred by economic growth and rising incomes, was set to continue.
“We think that in the next decade we will need a lot of aircraft,’’ he told Reuters in a telephone interview. “The market is growing very fast. We are looking, but it depends on pricing and many other factors. We are talking, but we have not made any decisions.’’
US aerospace analyst Scott Hamilton said however, that Lion Air was poised to order up to 100 Airbus jets, breaking Boeing’s dominance at Indonesia’s largest domestic airline.
Orders of 100 aircraft would be worth approximately $9 billion at list prices for 150-seat jets like the Airbus A320 or Boeing 737, but airlines usually negotiate steep discounts.
Officials with Airbus could not immediately be reached for comment.
Lion Air shot to attention in late 2010 when a provisional order for 230 Boeing jets got high billing during a visit to the world’s fourth most-populous nation by US President Barack Obama, eager to play up the importance of US exports.
Confirmed in February this year, the record deal took Lion Air’s order book to more than 400 planes, which it aims to use to fly across the Asia-Pacific region.
Bolstered by export credits from Western producing countries, airlines in emerging markets have been placing significant bets on air travel in a region where passenger growth outpaces that of developed nations despite some spillover from Europe’s debt crisis.
Indonesia’s average annual passenger growth is 21 percent, according to Lion Air.
If confirmed, a deal between Lion Air and Boeing’s arch-rival could be seen as a turning point after a series of orders that lifted the airline to be one of Boeing’s top customers.
Airbus, a subsidiary of EADS, and Boeing, have been locked in a fierce price fight for much of this year, often halving official list prices to take or defend market share, according to multiple industry sources and analysts.
Jakarta-based Lion Air competes with one of Airbus’s largest customers, AirAsia of Malaysia, which has itself confirmed plans to order another 100 Airbus jets in addition to a total of 375 already ordered, of which 100 are now in service.
Lion Air this month also announced plans to challenge AirAsia by setting up a new, low-cost airline based in Malaysia as Southeast Asia’s growing middle class fuels demand for cheap flights.
The new carrier, Malindo Airways, will begin flights between Indonesia and Malaysia next May with a fleet of 12 Boeing 727 aircraft, which it plans to expand to 100 planes within a decade, Kirana said when announcing the launch.
Lion Air meanwhile, says it is in talks with Boeing to buy 10 787 Dreamliners worth $1.9 billion to tap the long-haul market. The plan would extend an initial deal in June to buy five 787 Dreamliner passenger jets.
Tuesday, September 25, 2012
Air France KLM Appoints New GM For South China Sea
Manila Bulletin
September 25, 2012
MANILA, Philippines — Air France KLM announced the appointment of Jurriaan Stelder as new General Manager for South China Sea covering the Philippines, Malaysia and Brunei. He recently replaced Cees Ursem who has moved to Cairo, Egypt for a new assignment.
Stelder first joined KLM in 1998 after he graduated from Universiteit Twente in the Netherlands with a Masters Degree in Technical Business Administration. He has spent his working career in the Netherlands and Kenya. He was posted in Nairobi, Kenya for three years as Commercial Director for Eastern Africa before moving in to Manila in August 2012 to assume his new position as General Manager for South China Sea region.
“The region South China Sea is growing fast in a challenging environment. I am honored and excited to have the responsibility to further build on Air France KLM’s historically strong position in this region,” said Stelder.
Air France KLM, the result of a merger between Air France and KLM in 2004, is one of the leading European air transport groups. Its main activities are the air transport of passengers and cargo as well as aircraft maintenance.
In 2011, Air France KLM carried 75.8 million passengers and 1.1 million tonnes of cargo. The group’s fleet comprises more 586 aircraft, including 173 regional aircraft operated by its partners Brit Air, City Jet, Regional and KLM Cityhopper.
Its network covers 230 destinations in 113 countries from its hubs at Paris-Charles de Gaulle and Amsterdam-Schiphol. The Flying Blue frequent flyer programme is leader in Europe and has over 20 million members. With their partners Delta and Alitalia, Air France and KLM operate the biggest transatlantic joint venture with more than 250 daily flights.
Air France and KLM are members of the SkyTeam alliance which has 15 member airlines, offering customers access to a global network of over 14,500 daily flights to 926 destinations in 173 countries.
September 25, 2012
MANILA, Philippines — Air France KLM announced the appointment of Jurriaan Stelder as new General Manager for South China Sea covering the Philippines, Malaysia and Brunei. He recently replaced Cees Ursem who has moved to Cairo, Egypt for a new assignment.
Stelder first joined KLM in 1998 after he graduated from Universiteit Twente in the Netherlands with a Masters Degree in Technical Business Administration. He has spent his working career in the Netherlands and Kenya. He was posted in Nairobi, Kenya for three years as Commercial Director for Eastern Africa before moving in to Manila in August 2012 to assume his new position as General Manager for South China Sea region.
“The region South China Sea is growing fast in a challenging environment. I am honored and excited to have the responsibility to further build on Air France KLM’s historically strong position in this region,” said Stelder.
Air France KLM, the result of a merger between Air France and KLM in 2004, is one of the leading European air transport groups. Its main activities are the air transport of passengers and cargo as well as aircraft maintenance.
In 2011, Air France KLM carried 75.8 million passengers and 1.1 million tonnes of cargo. The group’s fleet comprises more 586 aircraft, including 173 regional aircraft operated by its partners Brit Air, City Jet, Regional and KLM Cityhopper.
Its network covers 230 destinations in 113 countries from its hubs at Paris-Charles de Gaulle and Amsterdam-Schiphol. The Flying Blue frequent flyer programme is leader in Europe and has over 20 million members. With their partners Delta and Alitalia, Air France and KLM operate the biggest transatlantic joint venture with more than 250 daily flights.
Air France and KLM are members of the SkyTeam alliance which has 15 member airlines, offering customers access to a global network of over 14,500 daily flights to 926 destinations in 173 countries.
AirAsia Buying 100 Airbus Jets
Manila Bulletin
September 25, 2012
By Kevin Lim
SINGAPORE (Reuters) – A plan to buy 100 Airbus aircraft will be submitted to the board of Asia’s largest budget carrier, AirAsia Bhd, in about two weeks, the airline’s CEO Tony Fernandes said in a deal that could be worth $9 billion. Reuters reported earlier this month that AirAsia was putting the final touches on the deal, ending a flirtation with Canada’s Bombardier. Fernandes said the order will involve a mix of aircraft and not just Airbus A320s.
‘‘I’ll be submitting it to the board in two weeks,’’ Fernandes told Singapore’s Foreign Correspondents Association.
AirAsia, with an operating fleet of more than 100 aircraft, has ordered a total of 375 Airbus jets as part of dramatic expansion plans that now include the acquisition of Indonesia’s Batavia Air. It has said it will accelerate deliveries as rising demand helps it offset high fuel costs.
Turning to India, which last week said it will allow foreign carriers to take stakes of up to 49 percent in Indian airlines, Fernandes said he had no immediate plans to enter the market because he thought the aviation fuel tax and airport charges were still too high.
Indian newspapers had speculated AirAsia could be the first overseas carrier to take advantage of the new rules.
Fernandes, who owns Formula One team Caterham, said he is in Singapore to interest Asian bankers in financing aviation deals that historically have been dominated by European lenders. The F1 race in Singapore had attracted financiers from around the region, he said.
“We’re trying to get Asian banks interested. I think by introducing Asian bankers to the aviation market, costs will reduce. Asian banks have much more liquidity than European banks,’’ he said.
He said another source of funding for the aviation industry could come from wealthy individuals who are searching for yield products and would be interested in putting money into aviation trusts that would buy aircraft and lease them to airlines.
‘‘Cost, cost, cost. That’s my focus over the next few months,’’ Fernandes had said in a Tweet earlier on Friday.
He added that the public listing of his long-haul budget carrier, AirAsiaX, was progressing and appeared imminent, although he would leave the final decision to management.
‘‘I reckon it will be in December,’’ he said, without indicating how much the IPO could be worth. Earlier reports this year said the IPO could be worth $250 million.
AirAsia reported last month a 3 percent year-on-year fall in second quarter net operating profit to 130.94 million ringgit ($42.62 million) due to higher user charges and rental commitments even as revenue rose 9 percent to 1.18 billion ringgit.
September 25, 2012
By Kevin Lim
SINGAPORE (Reuters) – A plan to buy 100 Airbus aircraft will be submitted to the board of Asia’s largest budget carrier, AirAsia Bhd, in about two weeks, the airline’s CEO Tony Fernandes said in a deal that could be worth $9 billion. Reuters reported earlier this month that AirAsia was putting the final touches on the deal, ending a flirtation with Canada’s Bombardier. Fernandes said the order will involve a mix of aircraft and not just Airbus A320s.
‘‘I’ll be submitting it to the board in two weeks,’’ Fernandes told Singapore’s Foreign Correspondents Association.
AirAsia, with an operating fleet of more than 100 aircraft, has ordered a total of 375 Airbus jets as part of dramatic expansion plans that now include the acquisition of Indonesia’s Batavia Air. It has said it will accelerate deliveries as rising demand helps it offset high fuel costs.
Turning to India, which last week said it will allow foreign carriers to take stakes of up to 49 percent in Indian airlines, Fernandes said he had no immediate plans to enter the market because he thought the aviation fuel tax and airport charges were still too high.
Indian newspapers had speculated AirAsia could be the first overseas carrier to take advantage of the new rules.
Fernandes, who owns Formula One team Caterham, said he is in Singapore to interest Asian bankers in financing aviation deals that historically have been dominated by European lenders. The F1 race in Singapore had attracted financiers from around the region, he said.
“We’re trying to get Asian banks interested. I think by introducing Asian bankers to the aviation market, costs will reduce. Asian banks have much more liquidity than European banks,’’ he said.
He said another source of funding for the aviation industry could come from wealthy individuals who are searching for yield products and would be interested in putting money into aviation trusts that would buy aircraft and lease them to airlines.
‘‘Cost, cost, cost. That’s my focus over the next few months,’’ Fernandes had said in a Tweet earlier on Friday.
He added that the public listing of his long-haul budget carrier, AirAsiaX, was progressing and appeared imminent, although he would leave the final decision to management.
‘‘I reckon it will be in December,’’ he said, without indicating how much the IPO could be worth. Earlier reports this year said the IPO could be worth $250 million.
AirAsia reported last month a 3 percent year-on-year fall in second quarter net operating profit to 130.94 million ringgit ($42.62 million) due to higher user charges and rental commitments even as revenue rose 9 percent to 1.18 billion ringgit.
Air France KLM Appoints New GM For South China Sea
Manila Bulletin
September 25, 2012
MANILA, Philippines — Air France KLM announced the appointment of Jurriaan Stelder as new General Manager for South China Sea covering the Philippines, Malaysia and Brunei. He recently replaced Cees Ursem who has moved to Cairo, Egypt for a new assignment.
Stelder first joined KLM in 1998 after he graduated from Universiteit Twente in the Netherlands with a Masters Degree in Technical Business Administration. He has spent his working career in the Netherlands and Kenya. He was posted in Nairobi, Kenya for three years as Commercial Director for Eastern Africa before moving in to Manila in August 2012 to assume his new position as General Manager for South China Sea region.
“The region South China Sea is growing fast in a challenging environment. I am honored and excited to have the responsibility to further build on Air France KLM’s historically strong position in this region,” said Stelder.
Air France KLM, the result of a merger between Air France and KLM in 2004, is one of the leading European air transport groups. Its main activities are the air transport of passengers and cargo as well as aircraft maintenance.
In 2011, Air France KLM carried 75.8 million passengers and 1.1 million tonnes of cargo. The group’s fleet comprises more 586 aircraft, including 173 regional aircraft operated by its partners Brit Air, City Jet, Regional and KLM Cityhopper.
Its network covers 230 destinations in 113 countries from its hubs at Paris-Charles de Gaulle and Amsterdam-Schiphol. The Flying Blue frequent flyer programme is leader in Europe and has over 20 million members. With their partners Delta and Alitalia, Air France and KLM operate the biggest transatlantic joint venture with more than 250 daily flights.
Air France and KLM are members of the SkyTeam alliance which has 15 member airlines, offering customers access to a global network of over 14,500 daily flights to 926 destinations in 173 countries.
September 25, 2012
MANILA, Philippines — Air France KLM announced the appointment of Jurriaan Stelder as new General Manager for South China Sea covering the Philippines, Malaysia and Brunei. He recently replaced Cees Ursem who has moved to Cairo, Egypt for a new assignment.
Stelder first joined KLM in 1998 after he graduated from Universiteit Twente in the Netherlands with a Masters Degree in Technical Business Administration. He has spent his working career in the Netherlands and Kenya. He was posted in Nairobi, Kenya for three years as Commercial Director for Eastern Africa before moving in to Manila in August 2012 to assume his new position as General Manager for South China Sea region.
“The region South China Sea is growing fast in a challenging environment. I am honored and excited to have the responsibility to further build on Air France KLM’s historically strong position in this region,” said Stelder.
Air France KLM, the result of a merger between Air France and KLM in 2004, is one of the leading European air transport groups. Its main activities are the air transport of passengers and cargo as well as aircraft maintenance.
In 2011, Air France KLM carried 75.8 million passengers and 1.1 million tonnes of cargo. The group’s fleet comprises more 586 aircraft, including 173 regional aircraft operated by its partners Brit Air, City Jet, Regional and KLM Cityhopper.
Its network covers 230 destinations in 113 countries from its hubs at Paris-Charles de Gaulle and Amsterdam-Schiphol. The Flying Blue frequent flyer programme is leader in Europe and has over 20 million members. With their partners Delta and Alitalia, Air France and KLM operate the biggest transatlantic joint venture with more than 250 daily flights.
Air France and KLM are members of the SkyTeam alliance which has 15 member airlines, offering customers access to a global network of over 14,500 daily flights to 926 destinations in 173 countries.
AirAsia Buying 100 Airbus Jets
Manila Bulletin
September 25, 2012
By Kevin Lim
SINGAPORE (Reuters) – A plan to buy 100 Airbus aircraft will be submitted to the board of Asia’s largest budget carrier, AirAsia Bhd, in about two weeks, the airline’s CEO Tony Fernandes said in a deal that could be worth $9 billion. Reuters reported earlier this month that AirAsia was putting the final touches on the deal, ending a flirtation with Canada’s Bombardier. Fernandes said the order will involve a mix of aircraft and not just Airbus A320s.
‘‘I’ll be submitting it to the board in two weeks,’’ Fernandes told Singapore’s Foreign Correspondents Association.
AirAsia, with an operating fleet of more than 100 aircraft, has ordered a total of 375 Airbus jets as part of dramatic expansion plans that now include the acquisition of Indonesia’s Batavia Air. It has said it will accelerate deliveries as rising demand helps it offset high fuel costs.
Turning to India, which last week said it will allow foreign carriers to take stakes of up to 49 percent in Indian airlines, Fernandes said he had no immediate plans to enter the market because he thought the aviation fuel tax and airport charges were still too high.
Indian newspapers had speculated AirAsia could be the first overseas carrier to take advantage of the new rules.
Fernandes, who owns Formula One team Caterham, said he is in Singapore to interest Asian bankers in financing aviation deals that historically have been dominated by European lenders. The F1 race in Singapore had attracted financiers from around the region, he said.
“We’re trying to get Asian banks interested. I think by introducing Asian bankers to the aviation market, costs will reduce. Asian banks have much more liquidity than European banks,’’ he said.
He said another source of funding for the aviation industry could come from wealthy individuals who are searching for yield products and would be interested in putting money into aviation trusts that would buy aircraft and lease them to airlines.
‘‘Cost, cost, cost. That’s my focus over the next few months,’’ Fernandes had said in a Tweet earlier on Friday.
He added that the public listing of his long-haul budget carrier, AirAsiaX, was progressing and appeared imminent, although he would leave the final decision to management.
‘‘I reckon it will be in December,’’ he said, without indicating how much the IPO could be worth. Earlier reports this year said the IPO could be worth $250 million.
AirAsia reported last month a 3 percent year-on-year fall in second quarter net operating profit to 130.94 million ringgit ($42.62 million) due to higher user charges and rental commitments even as revenue rose 9 percent to 1.18 billion ringgit.
September 25, 2012
By Kevin Lim
SINGAPORE (Reuters) – A plan to buy 100 Airbus aircraft will be submitted to the board of Asia’s largest budget carrier, AirAsia Bhd, in about two weeks, the airline’s CEO Tony Fernandes said in a deal that could be worth $9 billion. Reuters reported earlier this month that AirAsia was putting the final touches on the deal, ending a flirtation with Canada’s Bombardier. Fernandes said the order will involve a mix of aircraft and not just Airbus A320s.
‘‘I’ll be submitting it to the board in two weeks,’’ Fernandes told Singapore’s Foreign Correspondents Association.
AirAsia, with an operating fleet of more than 100 aircraft, has ordered a total of 375 Airbus jets as part of dramatic expansion plans that now include the acquisition of Indonesia’s Batavia Air. It has said it will accelerate deliveries as rising demand helps it offset high fuel costs.
Turning to India, which last week said it will allow foreign carriers to take stakes of up to 49 percent in Indian airlines, Fernandes said he had no immediate plans to enter the market because he thought the aviation fuel tax and airport charges were still too high.
Indian newspapers had speculated AirAsia could be the first overseas carrier to take advantage of the new rules.
Fernandes, who owns Formula One team Caterham, said he is in Singapore to interest Asian bankers in financing aviation deals that historically have been dominated by European lenders. The F1 race in Singapore had attracted financiers from around the region, he said.
“We’re trying to get Asian banks interested. I think by introducing Asian bankers to the aviation market, costs will reduce. Asian banks have much more liquidity than European banks,’’ he said.
He said another source of funding for the aviation industry could come from wealthy individuals who are searching for yield products and would be interested in putting money into aviation trusts that would buy aircraft and lease them to airlines.
‘‘Cost, cost, cost. That’s my focus over the next few months,’’ Fernandes had said in a Tweet earlier on Friday.
He added that the public listing of his long-haul budget carrier, AirAsiaX, was progressing and appeared imminent, although he would leave the final decision to management.
‘‘I reckon it will be in December,’’ he said, without indicating how much the IPO could be worth. Earlier reports this year said the IPO could be worth $250 million.
AirAsia reported last month a 3 percent year-on-year fall in second quarter net operating profit to 130.94 million ringgit ($42.62 million) due to higher user charges and rental commitments even as revenue rose 9 percent to 1.18 billion ringgit.
Wednesday, September 19, 2012
July Long Flight Delays Increase
Manila Bulletin
September 19, 2012
By Samantha Bomkamp
New York (AP) - The number of long delays in July involving planes stuck on airport tarmacs was more than the previous eight months combined, the government said.
Twenty-eight planes were stuck on the ground at US airports for more than three hours that month, the height of the summer travel season. Eighteen of those planes were operated by US Carriers.
Sixteen of the US flights were going in or out of Chicago O'Hare on July 13, a day of severe thunderstorms. All of the longest delays were on regional carriers that operate smaller jets for larger airlines.
There was only one international flight that sat on the ground for more than four hours, and it's susceptible to a big fine. Caribbean Airlines flight 526 from Georgetown, Guyana to New York's JFK Airport sat on the ground for four hours and three minutes. US and international airlines can be fined up to $27,500 per passenger if a flight is stuck for more than three hours.
The last time there were more three hour delays in a single month was October 2011. There was just one long delay last July.
Overall, flights were less on-time in July than they were in both June 2012 and July 2011. United Airlines, which has a base in Chicago, had the worst on-time rate. US Airways had the best on-time rate for a network carrier, but Hawaiian Airlines and Alaska Airlines topped the overall list.
September 19, 2012
By Samantha Bomkamp
New York (AP) - The number of long delays in July involving planes stuck on airport tarmacs was more than the previous eight months combined, the government said.
Twenty-eight planes were stuck on the ground at US airports for more than three hours that month, the height of the summer travel season. Eighteen of those planes were operated by US Carriers.
Sixteen of the US flights were going in or out of Chicago O'Hare on July 13, a day of severe thunderstorms. All of the longest delays were on regional carriers that operate smaller jets for larger airlines.
There was only one international flight that sat on the ground for more than four hours, and it's susceptible to a big fine. Caribbean Airlines flight 526 from Georgetown, Guyana to New York's JFK Airport sat on the ground for four hours and three minutes. US and international airlines can be fined up to $27,500 per passenger if a flight is stuck for more than three hours.
The last time there were more three hour delays in a single month was October 2011. There was just one long delay last July.
Overall, flights were less on-time in July than they were in both June 2012 and July 2011. United Airlines, which has a base in Chicago, had the worst on-time rate. US Airways had the best on-time rate for a network carrier, but Hawaiian Airlines and Alaska Airlines topped the overall list.
Russian-Built Aircraft Carrier For India Suffers Engine Problems Anew
Manila Bulletin
September 19, 2012
Moscow (dpa) - Russia's delivery to India of a $2.3 billion aircraft carrier is expected to suffer a new delay because of severe engine problems encountered during sea trials, Russian media reported on Monday.
Three of the eight steam turbines on the warship INS Vikramaditya failed during high-speed testing in the Barents Sea, and replacing them will take between six and nine months, the magazine Kommersant reported.
The ship was in the final stage of sea trials begun in July, and was to have been turned over to India's navy at the beginning of December.
A contributing factor to the turbines' failure was the use of a new Russia-designed ceramic brick as heat shielding which, at high engine temperature, cracked and in some places disintegrated, the Interfax news agency reported.
Russia's northern shipyard Sevmash is the main contractor for the project, which seeks to overhaul a upgrade a Soviet-era warship into a modern aircraft carrier for India.
The Vikramaditya will now return to the Sevmash docks, in the Arctic Sea port city of Arkhangelsk.
With repair costs estimated at more than $30 million, a Russian government commission is to investigate the engine problems.
Formerly a Soviet navy ship named Admiral Gorshkov, the INS Vikramaditya was sold to India in 2004. Delays and changes to the vessels' design have more than doubled the actual cost of the vessel.
September 19, 2012
Moscow (dpa) - Russia's delivery to India of a $2.3 billion aircraft carrier is expected to suffer a new delay because of severe engine problems encountered during sea trials, Russian media reported on Monday.
Three of the eight steam turbines on the warship INS Vikramaditya failed during high-speed testing in the Barents Sea, and replacing them will take between six and nine months, the magazine Kommersant reported.
The ship was in the final stage of sea trials begun in July, and was to have been turned over to India's navy at the beginning of December.
A contributing factor to the turbines' failure was the use of a new Russia-designed ceramic brick as heat shielding which, at high engine temperature, cracked and in some places disintegrated, the Interfax news agency reported.
Russia's northern shipyard Sevmash is the main contractor for the project, which seeks to overhaul a upgrade a Soviet-era warship into a modern aircraft carrier for India.
The Vikramaditya will now return to the Sevmash docks, in the Arctic Sea port city of Arkhangelsk.
With repair costs estimated at more than $30 million, a Russian government commission is to investigate the engine problems.
Formerly a Soviet navy ship named Admiral Gorshkov, the INS Vikramaditya was sold to India in 2004. Delays and changes to the vessels' design have more than doubled the actual cost of the vessel.
Tuesday, September 18, 2012
India Allows Airlines To Sell 49% Equity To Overseas Carriers
Manila Bulletin
September 18, 2012
By Siddharth Philip and Vipin Nair
(Bloomberg)
India's decision to allow local airlines sell stakes of as much as 49 percent to overseas carriers may be of most benefit to operators least in need of investment.
SpiceJet Ltd., which has said it's in "no rush" for funds, may be the most appealing target for foreign investors because of the discount carrier's low debt and record of profitability, said Sharan Lillaney, an Angel Broking Ltd. analyst. Kingfisher Airlines Ltd. may struggle to win investment, even as billionaire Chairman Vijay Mallya seeks new financing, after posting at least five straight annual losses.
"The biggest beneficiary will be SpiceJet as it has lower debt and a decent brand image," Lillaney said. "Kingfisher needs to restructure its balance sheet and convert debt into equity before it can look at attracting any foreign investment."
The two carriers and Jet Airways (India) Ltd. rose Sept. 14 on speculation the rule change will help the industry win funds following years of losses caused by price wars, high fuel taxes and a weaker rupee. Prime Minister Manmohan Singh's government announced the end of the ban along with a similar easing for retailers as its moves to open up Asia's third-biggest economy. Kingfisher has said it is in talks on investment that depend up regulatory changes as it struggles under an 86 billion rupee ($1.5 billion) debt pile. The carrier has also cut two-third of services, grounded planes and halted international flights in a bid to end losses.
September 18, 2012
By Siddharth Philip and Vipin Nair
(Bloomberg)
India's decision to allow local airlines sell stakes of as much as 49 percent to overseas carriers may be of most benefit to operators least in need of investment.
SpiceJet Ltd., which has said it's in "no rush" for funds, may be the most appealing target for foreign investors because of the discount carrier's low debt and record of profitability, said Sharan Lillaney, an Angel Broking Ltd. analyst. Kingfisher Airlines Ltd. may struggle to win investment, even as billionaire Chairman Vijay Mallya seeks new financing, after posting at least five straight annual losses.
"The biggest beneficiary will be SpiceJet as it has lower debt and a decent brand image," Lillaney said. "Kingfisher needs to restructure its balance sheet and convert debt into equity before it can look at attracting any foreign investment."
The two carriers and Jet Airways (India) Ltd. rose Sept. 14 on speculation the rule change will help the industry win funds following years of losses caused by price wars, high fuel taxes and a weaker rupee. Prime Minister Manmohan Singh's government announced the end of the ban along with a similar easing for retailers as its moves to open up Asia's third-biggest economy. Kingfisher has said it is in talks on investment that depend up regulatory changes as it struggles under an 86 billion rupee ($1.5 billion) debt pile. The carrier has also cut two-third of services, grounded planes and halted international flights in a bid to end losses.
Etihad Airways Counts On Boeing 777s And Dreamliners For Fleet
Manila Bulletin
September 18, 2012
Etihad Airways President and Chief Executive Officer (CEO) James Hogan has visited Boeing's Everett production facility, as the UAE flag carrier prepares to take the delivery of more 777s and awaits the arrival of the 787 Dreamliner.
Hogan is leading a senior delegation of Etihad Airways and Airberlin executives on a one day visit. Etihad Airways owns almost 30 percent of Airberlin, Europe's sixth largest airline.
In March, the two carriers announced plans to strengthen their partnership by integrating their respective Boeing 787 Dreamliner programs.
Together, Etihad Airways (41) and Airberlin (15) have 56 Dreamliners on order.
Inspecting the 777 and Dreamliner assembly lines, Hogan said: "It is exciting to see these aircraft take shape and and we look forward to taking delivery of nine more 777s over the next 15 months. For both carriers the Dreamliner's arrival will be a positive milestone for two strategically aligned partners, who are looking to successfully work with Boeing on our integrated fleet program."
"Already we are sharing infrastructure, streamlining our purchasing activity for engines, rotables, avionics and in-flight entertainment systems, and are also hard at work on common onboard product specifications for our respective brands which will give passengers a consistent product experience," he said.
September 18, 2012
Etihad Airways President and Chief Executive Officer (CEO) James Hogan has visited Boeing's Everett production facility, as the UAE flag carrier prepares to take the delivery of more 777s and awaits the arrival of the 787 Dreamliner.
Hogan is leading a senior delegation of Etihad Airways and Airberlin executives on a one day visit. Etihad Airways owns almost 30 percent of Airberlin, Europe's sixth largest airline.
In March, the two carriers announced plans to strengthen their partnership by integrating their respective Boeing 787 Dreamliner programs.
Together, Etihad Airways (41) and Airberlin (15) have 56 Dreamliners on order.
Inspecting the 777 and Dreamliner assembly lines, Hogan said: "It is exciting to see these aircraft take shape and and we look forward to taking delivery of nine more 777s over the next 15 months. For both carriers the Dreamliner's arrival will be a positive milestone for two strategically aligned partners, who are looking to successfully work with Boeing on our integrated fleet program."
"Already we are sharing infrastructure, streamlining our purchasing activity for engines, rotables, avionics and in-flight entertainment systems, and are also hard at work on common onboard product specifications for our respective brands which will give passengers a consistent product experience," he said.
Thai Airways Picks New Persident
Manila Bulletin
September 18, 2012
Bangkok (AP) - Thai Airways International PCL has selected a media conglomerate chief as its new president after the airline's board sacked his predecessor nearly four months ago.
The airline's board of directors on Friday approved the appointment of Sorajak Kasemsuvan, the chairman of MCOT PLC, a media company majority-owned by the Thai government.
Sorajak, 57, has long experience in media industry and took the job at MCOT in 2011.
September 18, 2012
Bangkok (AP) - Thai Airways International PCL has selected a media conglomerate chief as its new president after the airline's board sacked his predecessor nearly four months ago.
The airline's board of directors on Friday approved the appointment of Sorajak Kasemsuvan, the chairman of MCOT PLC, a media company majority-owned by the Thai government.
Sorajak, 57, has long experience in media industry and took the job at MCOT in 2011.
Lufthansa to present low-cost airline plans
Business World
September 18, 2012 Tuesday
FRANKFURT- Lufthansa management will present a startegy update to the supervisory board on Wednesday including plans for a new European low-cost airline, WirtschaftsWoche said in an advance extract of its Monday edition.
A spokesman for Lufthansa declined to comment on the supervisory board meeting, adding that no strategy decisions are to be expected on Wednesday.
Separately, WirtschaftsWoche, citing unnamed sources, said strikes could have cost the German airline 100 million ($131.5 million) if the lost revenue from passengers who booked with rival airlines as a result of the actions was factored in.
Lufthansa said it was too early to put a final figure on the cost of industrial action and reiterated the strikes were said to have resulted in lost revenue in the double-digit million euro range.
Around 1,737 flights were cancelled during the strikes , with 187,614 passengers impacted, employee magazine Lufthanseat said in its most recent edition.- Reuters
September 18, 2012 Tuesday
FRANKFURT- Lufthansa management will present a startegy update to the supervisory board on Wednesday including plans for a new European low-cost airline, WirtschaftsWoche said in an advance extract of its Monday edition.
A spokesman for Lufthansa declined to comment on the supervisory board meeting, adding that no strategy decisions are to be expected on Wednesday.
Separately, WirtschaftsWoche, citing unnamed sources, said strikes could have cost the German airline 100 million ($131.5 million) if the lost revenue from passengers who booked with rival airlines as a result of the actions was factored in.
Lufthansa said it was too early to put a final figure on the cost of industrial action and reiterated the strikes were said to have resulted in lost revenue in the double-digit million euro range.
Around 1,737 flights were cancelled during the strikes , with 187,614 passengers impacted, employee magazine Lufthanseat said in its most recent edition.- Reuters
Friday, September 14, 2012
It's Coming Back
Philippine Daily Inquirer
September 14, 2012
Brand new airbus, wide connectivity, awesome crew, and sumptuous hot meals on-board -- all of these and more are within your reach as Philippines' AirAsia, the newest low cost carrier in the country brings you to your destination. Fulfill your dream vacation in 2013 because AirAsia is preparing something big for all of its passengers.
Fly to Kalibo, the gateway to Boracay, and experience the best beach in the world. Visit Davao City and stroll its prosperous city. Or you can go to Puerto Princesa where the wonders of nature lie. Create picture perfect moments with these awesome places!
Complement your flight by pre-booking Beef Caldereta and Chicken Yang Chow online. Save up to 7% when pre-ordering hot meals at www.airasia.com. All comes with 100ml water cup.
Visit www.airasia.com for updates, like us on Facebook (facebook/airasiaphilippines) and follow us on Twitter (twitter.com/airasiaph) and stay tuned for big surprises.
September 14, 2012
Brand new airbus, wide connectivity, awesome crew, and sumptuous hot meals on-board -- all of these and more are within your reach as Philippines' AirAsia, the newest low cost carrier in the country brings you to your destination. Fulfill your dream vacation in 2013 because AirAsia is preparing something big for all of its passengers.
Fly to Kalibo, the gateway to Boracay, and experience the best beach in the world. Visit Davao City and stroll its prosperous city. Or you can go to Puerto Princesa where the wonders of nature lie. Create picture perfect moments with these awesome places!
Complement your flight by pre-booking Beef Caldereta and Chicken Yang Chow online. Save up to 7% when pre-ordering hot meals at www.airasia.com. All comes with 100ml water cup.
Visit www.airasia.com for updates, like us on Facebook (facebook/airasiaphilippines) and follow us on Twitter (twitter.com/airasiaph) and stay tuned for big surprises.
4 airports get P4-b facelift
Manila Standard Today
September 14, 2012
President Aquino has ordered the release of P4.6 billion to beef up four priority airport projects under the administration’s public-private partnership program.
Budget chief Florencio Abad said the amount has been released to the Department of Transportation and Communications.
“The release will support the improvement or creation of more gateways into the Philippines, given the administration’s campaign to cement our position as a prime tourist and investment hub,” Abad said on Thursday.
Of the amount, P1.64 billion will be used to rehabilitate Terminal 1 of the Ninoy Aquino International Airport for structural integrity and maintenance activities.
The fund will cover the immediate repair of the terminal’s mechanical, electrical, plumbing, and fire protection systems, as well as the retrofitting of the overall structure.
At least P2 billion has been set aside for the New Legazpi Airport Development Project in Albay for detailed engineering of the airport’s runways and taxiways.
Amid growing traffic demand, Abad said the government has allocated P800 million for the construction of a terminal building for the Tacloban Airport.
The government also released P160 million for the Central Mindanao Airport that will serve a an access point to Central Mindanao through North Cotabato that is intended to facilitate the transport of high-value crops in and out of the region.
September 14, 2012
President Aquino has ordered the release of P4.6 billion to beef up four priority airport projects under the administration’s public-private partnership program.
Budget chief Florencio Abad said the amount has been released to the Department of Transportation and Communications.
“The release will support the improvement or creation of more gateways into the Philippines, given the administration’s campaign to cement our position as a prime tourist and investment hub,” Abad said on Thursday.
Of the amount, P1.64 billion will be used to rehabilitate Terminal 1 of the Ninoy Aquino International Airport for structural integrity and maintenance activities.
The fund will cover the immediate repair of the terminal’s mechanical, electrical, plumbing, and fire protection systems, as well as the retrofitting of the overall structure.
At least P2 billion has been set aside for the New Legazpi Airport Development Project in Albay for detailed engineering of the airport’s runways and taxiways.
Amid growing traffic demand, Abad said the government has allocated P800 million for the construction of a terminal building for the Tacloban Airport.
The government also released P160 million for the Central Mindanao Airport that will serve a an access point to Central Mindanao through North Cotabato that is intended to facilitate the transport of high-value crops in and out of the region.
4 airports get P4-b facelift
Manila Standard Today
September 14, 2012
President Aquino has ordered the release of P4.6 billion to beef up four priority airport projects under the administration’s public-private partnership program.
Budget chief Florencio Abad said the amount has been released to the Department of Transportation and Communications.
“The release will support the improvement or creation of more gateways into the Philippines, given the administration’s campaign to cement our position as a prime tourist and investment hub,” Abad said on Thursday.
Of the amount, P1.64 billion will be used to rehabilitate Terminal 1 of the Ninoy Aquino International Airport for structural integrity and maintenance activities.
The fund will cover the immediate repair of the terminal’s mechanical, electrical, plumbing, and fire protection systems, as well as the retrofitting of the overall structure.
At least P2 billion has been set aside for the New Legazpi Airport Development Project in Albay for detailed engineering of the airport’s runways and taxiways.
Amid growing traffic demand, Abad said the government has allocated P800 million for the construction of a terminal building for the Tacloban Airport.
The government also released P160 million for the Central Mindanao Airport that will serve a an access point to Central Mindanao through North Cotabato that is intended to facilitate the transport of high-value crops in and out of the region.
September 14, 2012
President Aquino has ordered the release of P4.6 billion to beef up four priority airport projects under the administration’s public-private partnership program.
Budget chief Florencio Abad said the amount has been released to the Department of Transportation and Communications.
“The release will support the improvement or creation of more gateways into the Philippines, given the administration’s campaign to cement our position as a prime tourist and investment hub,” Abad said on Thursday.
Of the amount, P1.64 billion will be used to rehabilitate Terminal 1 of the Ninoy Aquino International Airport for structural integrity and maintenance activities.
The fund will cover the immediate repair of the terminal’s mechanical, electrical, plumbing, and fire protection systems, as well as the retrofitting of the overall structure.
At least P2 billion has been set aside for the New Legazpi Airport Development Project in Albay for detailed engineering of the airport’s runways and taxiways.
Amid growing traffic demand, Abad said the government has allocated P800 million for the construction of a terminal building for the Tacloban Airport.
The government also released P160 million for the Central Mindanao Airport that will serve a an access point to Central Mindanao through North Cotabato that is intended to facilitate the transport of high-value crops in and out of the region.
Thursday, September 13, 2012
Offshore airport eyed near Sangley
Philippine Daily Inquirer
September 13, 2012
By Riza T. Olchondria
The developer of Aseana City, which owns key development real estate neighboring the so-called Entertainment City, is looking into the viability of developing an offshore airport by reclaiming land near the Sangley Point military facility in Cavite City.
Delfin Wenceslao Jr., chairman of Aseana Holdings Inc., said in an interview that an offshore airport would ease congestion at the Ninoy Aquino International Airport (Naia) complex, drive tourist growth to the Aseana Business Park that hosts both Aseana City and Entertainment City, and address security concerns posed by the traditional mushrooming of real estate developments around airports and other sensitive facilities located inland.
With four first-class hotels, casinos, business process outsourcing buildings, condominiums and related facilities being put up at the Aseana Business Park, the area could become a convention and tourism hub, Wenceslao said. Its proximity to the convention and shopping areas of nearby SM Mall of Asia complex could attract a huge number of foreign and local tourists, he said. Specialized schools being built in Aseana City would also make it an ideal place for residential and business developments, he said.
Wenceslao said his company already knew through a study that it was technically viable to construct an offshore airport. “What we’re trying to answer is, is it financially viable to put up the airport now?” he said, noting that Hong Kong had the same island-airport model.
Studying the financial viability of having an offshore airport to keep pace with developments in the Aseana Business Park, among others, would require about P100 million to P200 million, the construction expert said.
The offshore airport, he said, would be located six or seven kilometers from the Aseana Business Park. “We’re talking of creating about 1,400 hectares, minimum, with right of way so that we don’t have issues with the military,” Wenceslao said. A two-kilometer causeway could be built to connect the offshore island to the mainland, he said.
The financial study could easily be completed, he said, if the government would support such an undertaking through the current airport administration in Naia.
“The present airport has a single runway and if this gets blocked or congested, the traffic has to be converted to Clark. The recourse is to put up a second runway with a common tower, or just put up an airport in one site. Sangley is expandable and will not be encroached (upon) by other developments because it would be an island,” Wenceslao said.
The financial study would push through if the government would support it, Wenceslao said. If the project would be found viable, the government could provide the site or develop the offshore airport on its own, he said.
September 13, 2012
By Riza T. Olchondria
The developer of Aseana City, which owns key development real estate neighboring the so-called Entertainment City, is looking into the viability of developing an offshore airport by reclaiming land near the Sangley Point military facility in Cavite City.
Delfin Wenceslao Jr., chairman of Aseana Holdings Inc., said in an interview that an offshore airport would ease congestion at the Ninoy Aquino International Airport (Naia) complex, drive tourist growth to the Aseana Business Park that hosts both Aseana City and Entertainment City, and address security concerns posed by the traditional mushrooming of real estate developments around airports and other sensitive facilities located inland.
With four first-class hotels, casinos, business process outsourcing buildings, condominiums and related facilities being put up at the Aseana Business Park, the area could become a convention and tourism hub, Wenceslao said. Its proximity to the convention and shopping areas of nearby SM Mall of Asia complex could attract a huge number of foreign and local tourists, he said. Specialized schools being built in Aseana City would also make it an ideal place for residential and business developments, he said.
Wenceslao said his company already knew through a study that it was technically viable to construct an offshore airport. “What we’re trying to answer is, is it financially viable to put up the airport now?” he said, noting that Hong Kong had the same island-airport model.
Studying the financial viability of having an offshore airport to keep pace with developments in the Aseana Business Park, among others, would require about P100 million to P200 million, the construction expert said.
The offshore airport, he said, would be located six or seven kilometers from the Aseana Business Park. “We’re talking of creating about 1,400 hectares, minimum, with right of way so that we don’t have issues with the military,” Wenceslao said. A two-kilometer causeway could be built to connect the offshore island to the mainland, he said.
The financial study could easily be completed, he said, if the government would support such an undertaking through the current airport administration in Naia.
“The present airport has a single runway and if this gets blocked or congested, the traffic has to be converted to Clark. The recourse is to put up a second runway with a common tower, or just put up an airport in one site. Sangley is expandable and will not be encroached (upon) by other developments because it would be an island,” Wenceslao said.
The financial study would push through if the government would support it, Wenceslao said. If the project would be found viable, the government could provide the site or develop the offshore airport on its own, he said.
July Global Passenger Market Declines
Manila Bulletin
September 13, 2012
By Edu Lopez
MANILA, Philippines — With many major international airports in Europe and North America reporting lackluster figures in passenger traffic in July, overall growth in global passenger markets slowed to 2%.
Airport Council International (ACI) noted that counterbalancing the slowdown in these markets is the continued strong demand in emerging markets.
ACI said the the major airports of Asia-Pacific, the Middle East and Latin America-Caribbean posted robust year-over-year gains. Beijing (PEK), Dubai (DXB) and São Paulo (GRU) achieved growth of +6.1%, +6.0% and +9.0% respectively.
Freight markets suffered a decline of -2% in traffic volumes in July, while many Asian airports experienced a buoyant rise in year-over-year passenger traffic, the opposite is occurring in the freight market.
Hong Kong (HKG) and Shanghai (PVG) saw declines of -1.8% and -7.1% respectively. All but Africa and the Middle East, observed declines in freight traffic. Johannesburg (JNB) and Abu Dhabi (AUH) had double-digit gains of +13.0% and +27.8%.
ACI World’s Economics Director Rafael Echevarne said: “Regional trends in air transport markets continue to be mixed reflecting the combination of resilient demand from emerging markets and the slowdown of European and American economies."
"The net result is a modest overall growth rate in passenger traffic for the month of July. Air freight, on the other hand, is clearly in a contraction phase as business confidence wanes in parallel," Echevarne added.
September 13, 2012
By Edu Lopez
MANILA, Philippines — With many major international airports in Europe and North America reporting lackluster figures in passenger traffic in July, overall growth in global passenger markets slowed to 2%.
Airport Council International (ACI) noted that counterbalancing the slowdown in these markets is the continued strong demand in emerging markets.
ACI said the the major airports of Asia-Pacific, the Middle East and Latin America-Caribbean posted robust year-over-year gains. Beijing (PEK), Dubai (DXB) and São Paulo (GRU) achieved growth of +6.1%, +6.0% and +9.0% respectively.
Freight markets suffered a decline of -2% in traffic volumes in July, while many Asian airports experienced a buoyant rise in year-over-year passenger traffic, the opposite is occurring in the freight market.
Hong Kong (HKG) and Shanghai (PVG) saw declines of -1.8% and -7.1% respectively. All but Africa and the Middle East, observed declines in freight traffic. Johannesburg (JNB) and Abu Dhabi (AUH) had double-digit gains of +13.0% and +27.8%.
ACI World’s Economics Director Rafael Echevarne said: “Regional trends in air transport markets continue to be mixed reflecting the combination of resilient demand from emerging markets and the slowdown of European and American economies."
"The net result is a modest overall growth rate in passenger traffic for the month of July. Air freight, on the other hand, is clearly in a contraction phase as business confidence wanes in parallel," Echevarne added.
Lion Air Plans Budget Airline
Manila Bulletin
September 13, 2012
KUALA LUMPUR (AFP) – Indonesia's PT Lion Mentari Airlines said Tuesday it will launch a new low-cost airline with Malaysian firm NADI that could challenge regional budget giant AirAsia.
The new Malindo Airways will start regional flights by May next year with a fleet of 12 Boeing 737s, said Indonesia's largest privately run airline, which operates as Lion Air, and Malaysia's National Aerospace and Defense Industries (NADI).
Lion Air president Rusdi Kirana said the companies were counting on an increase in travel, with the Asia Pacific region expected to have 2.2 billion passengers in 2030 and need 11,450 new airplanes to meet the demand.
NADI, which specialises in maintenance, repair and overhaul services, will own 51 percent of the joint venture. Lion Air will supply the fleet, based out of Kuala Lumpur, AirAsia's home market.
''We are giving affordable prices but with better services'' than other budget airlines, such as in-flight entertainment, Kirana told reporters before the joint venture signing ceremony in Kuala Lumpur.
The airline plans to initially fly to Kota Kinabalu in Malaysia as well as destinations across Indonesia, Manila, Hanoi and cities in Australia and China.
Over the next decade it hopes to expand its fleet to 100 planes, including five flagship 787 Ddreamliners to arrive in 2015, when Malindo plans to fly to Europe.
OSK Research aviation analyst Ahmad Maghfur Usman said Lion Air working with a local partner to break into Malaysia's regulated airspace could pose a ''real challenge'' to AirAsia.
''Lion Air already has a strong infrastructure to begin with,'' he told AFP. ''As long as they offer a competitive compelling fare, it will put a fight to AirAsia... The winners here will be the consumers.''
AirAsia has become one of the aviation sector's biggest successes, since Tony Fernandes, a former record industry executive, plucked it from insolvency in 2001 and quickly turned it into a profitable, rapidly expanding company.
Last month, the budget carrier announced that it would buy Indonesia's Batavia Air for $80 million, as it spreads its wings in Southeast Asia's largest economy.
It also recently set up a regional headquarters in Jakarta to direct its expansion.
Lion Air flies to 72 destinations with 600 daily departures. It also flies to Singapore, Malaysia, Vietnam and Saudi Arabia while its long-haul arm Batik Air will begin operations in March next year with six Boeing 737s and five Boeing B787 Dreamliners.
This year Lion Air sealed a record $22.4 billion deal for 230 Boeing 737 jets. The first aircraft will be delivered in 2017, and the deliveries will run up until 2026.
September 13, 2012
KUALA LUMPUR (AFP) – Indonesia's PT Lion Mentari Airlines said Tuesday it will launch a new low-cost airline with Malaysian firm NADI that could challenge regional budget giant AirAsia.
The new Malindo Airways will start regional flights by May next year with a fleet of 12 Boeing 737s, said Indonesia's largest privately run airline, which operates as Lion Air, and Malaysia's National Aerospace and Defense Industries (NADI).
Lion Air president Rusdi Kirana said the companies were counting on an increase in travel, with the Asia Pacific region expected to have 2.2 billion passengers in 2030 and need 11,450 new airplanes to meet the demand.
NADI, which specialises in maintenance, repair and overhaul services, will own 51 percent of the joint venture. Lion Air will supply the fleet, based out of Kuala Lumpur, AirAsia's home market.
''We are giving affordable prices but with better services'' than other budget airlines, such as in-flight entertainment, Kirana told reporters before the joint venture signing ceremony in Kuala Lumpur.
The airline plans to initially fly to Kota Kinabalu in Malaysia as well as destinations across Indonesia, Manila, Hanoi and cities in Australia and China.
Over the next decade it hopes to expand its fleet to 100 planes, including five flagship 787 Ddreamliners to arrive in 2015, when Malindo plans to fly to Europe.
OSK Research aviation analyst Ahmad Maghfur Usman said Lion Air working with a local partner to break into Malaysia's regulated airspace could pose a ''real challenge'' to AirAsia.
''Lion Air already has a strong infrastructure to begin with,'' he told AFP. ''As long as they offer a competitive compelling fare, it will put a fight to AirAsia... The winners here will be the consumers.''
AirAsia has become one of the aviation sector's biggest successes, since Tony Fernandes, a former record industry executive, plucked it from insolvency in 2001 and quickly turned it into a profitable, rapidly expanding company.
Last month, the budget carrier announced that it would buy Indonesia's Batavia Air for $80 million, as it spreads its wings in Southeast Asia's largest economy.
It also recently set up a regional headquarters in Jakarta to direct its expansion.
Lion Air flies to 72 destinations with 600 daily departures. It also flies to Singapore, Malaysia, Vietnam and Saudi Arabia while its long-haul arm Batik Air will begin operations in March next year with six Boeing 737s and five Boeing B787 Dreamliners.
This year Lion Air sealed a record $22.4 billion deal for 230 Boeing 737 jets. The first aircraft will be delivered in 2017, and the deliveries will run up until 2026.
Monday, September 3, 2012
Airports Grow 8.5% In 1H
Manila Bulletin
September 3, 2012
By Edu Lopez
Asia-Pacific airports showed a remarkable rebound from 2011 and recorded a strong +8.5% increase in passenger traffic in the first half of 2012 compared to the same period last year.
The Airport Council International (ACI) reported that the Middle East outperformed other regions in the world with an enviable growth of +13.2% year-on-year in passenger traffic.
The latest ACI Passenger and Freight Flash Reports showed that Beijing (PEK) handled more than 39.3 million passengers in the first half of the year and is the second busiest airport in the world after Atlanta (ATL).
Major international hubs in the region such as Bangkok (BKK) recorded an increase of +14.2%, Dubai (DXB), +13.7% while Singapore and Seoul Incheon handled +11.6% more passengers in the first 6 months of 2012 comparing to the same period in 2011.
ACI noted a strong rebound in the Japanese airports. Osaka Kansai (KIX) and Tokyo Narita (NRT) both recorded over +21% year-on-year increase in the first half of 2012.
Passenger traffic in June, 2012 sustained a strong and steady growth.
An increase of +7.7% was recorded in the Asia-Pacific area and +13.1% in the Middle East area.
Once again, Beijing (PEK) topped the list as the airport in the region with the highest passenger throughput, with over 6.7 million passengers.
Tokyo Haneda (HND) came second, with over 5.2 million while Jakarta (CGK), just crossing the 5 million mark, was ranked third. The other 2 airports in the top 5 were Dubai (DXB) and Hong Kong (HKG), both handled over 4.6 million passengers in June 2012.
In terms of air cargo traffic, after being in the negative territory for 2 consecutive months, Asia-Pacific airports recorded a slight increase of +1.7% in June, 2012 compared to June 2011. Middle Eastern airports continue to do well in air cargo with a +9.2% year-on-year increase during the month.
Hong Kong (HKG), once again, is the airport in the region with the highest cargo throughput, with over 334,000 tons in June, 2012. Shanghai Pudong (PVG), Seoul Incheon (ICN), Dubai (DXB) and Tokyo Narita (NRT) remain to be the other 4 airports in the top 5 busiest cargo airports in the region.
Air cargo traffic for the first half of 2012 posted a slight decrease of -1.0% in the Asia-Pacific airports when comparing to the same period last year but the Middle East area remains resilient to the economic downturn and recorded an increase of +4.4%.
While Memphis (MEM) is still the busiest cargo hub in the world, Hong Kong (HKG) is only slightly behind with a throughput of 1.92 million tons of air cargo in the first 6 months of 2012.
ACI Asia-Pacific Regional Director Patti Chau said: “Our region went through a challenging year in 2011 and it is encouraging to see a strong rebound in the passenger traffic in the first 6 months of 2012. Driven by the growth in intra-regional and domestic passenger traffic, the region remains resilient to the economic uncertainty that is still looming in other parts of the World.” “Many airports in the region are undergoing expansion projects or construction of new airports, this positive half-year result proves that they are going the right direction and gives confidence to government and private investors,” Chau added.
September 3, 2012
By Edu Lopez
Asia-Pacific airports showed a remarkable rebound from 2011 and recorded a strong +8.5% increase in passenger traffic in the first half of 2012 compared to the same period last year.
The Airport Council International (ACI) reported that the Middle East outperformed other regions in the world with an enviable growth of +13.2% year-on-year in passenger traffic.
The latest ACI Passenger and Freight Flash Reports showed that Beijing (PEK) handled more than 39.3 million passengers in the first half of the year and is the second busiest airport in the world after Atlanta (ATL).
Major international hubs in the region such as Bangkok (BKK) recorded an increase of +14.2%, Dubai (DXB), +13.7% while Singapore and Seoul Incheon handled +11.6% more passengers in the first 6 months of 2012 comparing to the same period in 2011.
ACI noted a strong rebound in the Japanese airports. Osaka Kansai (KIX) and Tokyo Narita (NRT) both recorded over +21% year-on-year increase in the first half of 2012.
Passenger traffic in June, 2012 sustained a strong and steady growth.
An increase of +7.7% was recorded in the Asia-Pacific area and +13.1% in the Middle East area.
Once again, Beijing (PEK) topped the list as the airport in the region with the highest passenger throughput, with over 6.7 million passengers.
Tokyo Haneda (HND) came second, with over 5.2 million while Jakarta (CGK), just crossing the 5 million mark, was ranked third. The other 2 airports in the top 5 were Dubai (DXB) and Hong Kong (HKG), both handled over 4.6 million passengers in June 2012.
In terms of air cargo traffic, after being in the negative territory for 2 consecutive months, Asia-Pacific airports recorded a slight increase of +1.7% in June, 2012 compared to June 2011. Middle Eastern airports continue to do well in air cargo with a +9.2% year-on-year increase during the month.
Hong Kong (HKG), once again, is the airport in the region with the highest cargo throughput, with over 334,000 tons in June, 2012. Shanghai Pudong (PVG), Seoul Incheon (ICN), Dubai (DXB) and Tokyo Narita (NRT) remain to be the other 4 airports in the top 5 busiest cargo airports in the region.
Air cargo traffic for the first half of 2012 posted a slight decrease of -1.0% in the Asia-Pacific airports when comparing to the same period last year but the Middle East area remains resilient to the economic downturn and recorded an increase of +4.4%.
While Memphis (MEM) is still the busiest cargo hub in the world, Hong Kong (HKG) is only slightly behind with a throughput of 1.92 million tons of air cargo in the first 6 months of 2012.
ACI Asia-Pacific Regional Director Patti Chau said: “Our region went through a challenging year in 2011 and it is encouraging to see a strong rebound in the passenger traffic in the first 6 months of 2012. Driven by the growth in intra-regional and domestic passenger traffic, the region remains resilient to the economic uncertainty that is still looming in other parts of the World.” “Many airports in the region are undergoing expansion projects or construction of new airports, this positive half-year result proves that they are going the right direction and gives confidence to government and private investors,” Chau added.
SilkAir Steps Up Market Expansion
Manila BUlletin
September 3, 2012
The Singapore Airlines (SIA) group is accelerating expansion at full-service its regional subsidiary SilkAir, which has quietly emerged as a strong competitor in a short-haul market dominated by low-cost carriers, according to the Center for Asia Pacific Aviation (CAPA).
SilkAir has thrived as Singapore's low-cost carrier (LCC) penetration rate has exploded. It has steadily outperformed its LCC competitors, including SIA affiliate Tiger Airways as well as SIA's mainline operation.
CAPA said SilkAir is preparing to undergo the biggest expansion phase in the 20-year history of the SilkAir brand.
The SIA group is planning to increase capacity (ASKs) at SilkAir by about 23% in the current fiscal year starting April, 2012, outpacing the planned 3% capacity increase for SIA mainline as well as the expected capacity growth of the three main LCC groups serving the Singapore market – AirAsia, Jetstar and Tiger.
Continued high double digit annual capacity growth is expected over the next decade as SilkAir’s fleet expands from 21 aircraft currently to a projected 54 aircraft by the end of 2021, said CAPA.
SilkAir earlier announced by far the biggest aircraft deal in its history, signing a letter of intent with Boeing to order 23 737-800s and 31 737 MAX 8s with purchase rights for an additional 14 aircraft.
CAPA said the expansion at SilkAir represents sound strategy for the SIA Group given that the airline has emerged as the most profitable brand based on profit margins in the group’s four-brand portfolio.
“The SIA Group has turned to SilkAir to take over or supplement SIA’s intra-Asia routes, several of which have become unprofitable as LCC competition has intensified.” As LCC competition has intensified, narrow-body aircraft have become more suitable for an increasing number of SIA’s regional routes.
“With SIA only operating widebody aircraft, the group looks to SilkAir’s all-narrowbody fleet whenever there is a need to downsize a particular regional route.” SilkAir also continues to expand by opening up new destinations for the group, following its original model of serving smaller boutique markets that help feed SIA’s long-haul network.
SIA, over the next decade, plans to continue rapidly expanding SilkAir in traditional SIA business-focused markets as well in traditional SilkAir markets, which are typically more leisure-focused. (EHL)
September 3, 2012
The Singapore Airlines (SIA) group is accelerating expansion at full-service its regional subsidiary SilkAir, which has quietly emerged as a strong competitor in a short-haul market dominated by low-cost carriers, according to the Center for Asia Pacific Aviation (CAPA).
SilkAir has thrived as Singapore's low-cost carrier (LCC) penetration rate has exploded. It has steadily outperformed its LCC competitors, including SIA affiliate Tiger Airways as well as SIA's mainline operation.
CAPA said SilkAir is preparing to undergo the biggest expansion phase in the 20-year history of the SilkAir brand.
The SIA group is planning to increase capacity (ASKs) at SilkAir by about 23% in the current fiscal year starting April, 2012, outpacing the planned 3% capacity increase for SIA mainline as well as the expected capacity growth of the three main LCC groups serving the Singapore market – AirAsia, Jetstar and Tiger.
Continued high double digit annual capacity growth is expected over the next decade as SilkAir’s fleet expands from 21 aircraft currently to a projected 54 aircraft by the end of 2021, said CAPA.
SilkAir earlier announced by far the biggest aircraft deal in its history, signing a letter of intent with Boeing to order 23 737-800s and 31 737 MAX 8s with purchase rights for an additional 14 aircraft.
CAPA said the expansion at SilkAir represents sound strategy for the SIA Group given that the airline has emerged as the most profitable brand based on profit margins in the group’s four-brand portfolio.
“The SIA Group has turned to SilkAir to take over or supplement SIA’s intra-Asia routes, several of which have become unprofitable as LCC competition has intensified.” As LCC competition has intensified, narrow-body aircraft have become more suitable for an increasing number of SIA’s regional routes.
“With SIA only operating widebody aircraft, the group looks to SilkAir’s all-narrowbody fleet whenever there is a need to downsize a particular regional route.” SilkAir also continues to expand by opening up new destinations for the group, following its original model of serving smaller boutique markets that help feed SIA’s long-haul network.
SIA, over the next decade, plans to continue rapidly expanding SilkAir in traditional SIA business-focused markets as well in traditional SilkAir markets, which are typically more leisure-focused. (EHL)
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