Tuesday, October 30, 2012

Etihad Airways Expanding Russian Operations

Manila Bulletin
October 30, 2012 Tuesday

Etihad Airways, national airline of the United Arab Emirates (UAE), celebrating this week four years of its non-stop service between Moscow and Abu Dhabi.

The UAE flag carrier commenced operations to the Russian capital on December 1,2008 and since then has carried almost 250,000 travellers and 620 tons of cargo on the route.

Five weekly flights became a daily service in 2009, and load factors have increased in each year of operation.

Speaking at a press conference in Moscow, James Hogan, President and Chief Executive Officer of Etihad Airways, said: "The UAE is home to almost 25,000 Russians and 400 Russia-UAE joint venture companies, and a result, the business and cultural ties between the two countries have never been stronger. Moscow-Abu Dhabi has been a tremendous success with a strong load factor and good traffic feeds from our codeshare partner, S7 Airlines. The aim now is to expand services and connectivity over both Abu Dhabi and Moscow with S7."

Etihad Airways codeshares on S7 operated services from Moscow to the Russian cities of Kazan (kZN), Samara (KUF), Krasnodar (KRR) and Saint Petersbug (LED).

S7 codeshares on Etihad Airways' daily Moscow-Abu Dhabi service and onwards to Bangkok. Subject to recieving necessary government approvals, the next phase of Etihad Airways' partnership with S7 will see the Russian carrier's flight code placed on Etihad Airways' flight to Sydney and Melbourne. Mr. Hogan cited that additional expansion opportunities are also being actively evaluated.

Etihad Airways operates a two cabin Airbus A320 aircraft between Abu Dhabi and Moscow. This configuration means 1,904 seats a week-224 in Pearl Business, and 1,680 in Coral Economy.

Guests travelling from Moscow in Pearl Business have access to Etihad Airways' premium complementary door-to-door luxury limousine service, complete with a personal chaffeur (within the Moscow MKAD Ring Road to and fromthe airport).

In recent times Etihad Airways has also made it easier for Russian nationals to obtain a UAE visiting visa, through the TT Services online visa application centre. Hogan concluded: "We remain committed to building the Etihad Airways brand in the Russian market, offering customers great choice, connectivity, and value from what is one of the growing destinations on our network. By year end, Etihad Airways will be a US$5 billion business, we'll have carried more 10 million passengers across our global network, and have 1.8 million Etihad Guest loyalty members.

Boeing Affirms Delivery Target For Its 787-9 Dreamliner

Mary Schlangenstein and Susanna Ray (Bloomberg)
Manila Bulletin
October 30, 2012 Tuesday

Boeing Co. affirmed the schedule for the service debut of its 787-9 Dreamliner, a stretched version of the new jet, after American Airlines again said its delivery had been delayed past 2014 by "production issues".

The 787-9 is still due to reach its first customer in 2014, and the jet is set for its maiden flight in 2013's second half, said Marc Birtel, a spokesman for Chicago-based Boeing.

The Dreamliner is the first airliner built chiefly of plastic composites rather than the traditional aluminum. The 787-8's late-2011 commercial debut followed more than three years of delays because of the new materials and production processes. Boeing said last month that work was under way on the 787-9, which is 20 feet (6 meters) longer than the 787-8 and will carry 16 percent more passengersas far as 8,500 nautical miles (15,700 kilometers).

"Delays that took place earlier in the plane's development have been resolved and build rates are rising," said Stephen E. Levenson, a Stifel Nicolaus analyst in New York who recommends buying Boeing shares. "The target rate of 10 per month going into 2014 is still likely."

AMR Corp.'s American, which is reorganizing in bankruptcy, mentioned the postponement of its first 787-9 today in a US regulatory filing, as it had in two prior filings dating back to April. When the airline ordered 42 Dreamliners in 2008, deliveries were set to run from 2012 through 2018.

"We are in discussions with Boeing and are working together toward a new delivery schedule," said Andrea Huguely, an American spokeswoman. She declined to say what production issues led to the delay or comment further on the matter.

The shorter 787-8, which entered service late last year, can fly as many as 250 people on routes of as long as 8,200 nautical miles. Air New Zealand Ltd. has said it will be the first carrier to operate the bigger 787-9.

American has the right to buy 58 more of the planes.

Asian Airlines Cancel Flights

Manila Bulletin
October 30, 2012 Tuesday


HONG KONG- Airlines in the Asia-Pacific region are cancelling flights to New York, after US airlines canceled almost 8,000 flights ahead of Hurricane Sandy's expected landfall on the East Coast of the US.

Hong Kong-based Cathay Pacific Airways Ltd. said in a statement Monday it has decided to cancel a total of eight direct flights between Hong Kong and New York on Monday and Tuesday due to the closure of public transit systems in New York as authorities warned of heavy rains, high winds and flooding when the Category 1 hurricane reaches land late Monday or early Tuesday.

Four flights between Hong kong and New York with a stopover in Vancouver will only operate between Hong Kong and Vancouver on Monday and Tuesday, the Hong Kong based carrier said in a statement.

"It is possible that we may face further disruption," a Cathay Pacific spokesman said.

Singapore Airlines also said Monday that it cancelled all of its flights to Northeastern US Monday and Tuesday.

Japanese and Korean airlines also cancelled services to New York Monday.

A Japan Airlines Corp. spokesman said a flight from Tokyo's Narita Airport that was scheduled to depart at 0210 GMT Monday for New York was cancelled.

The Japanese carrier will delay a Tokyo-New york flight to Wednesday from Tuesday, while All Nippon Airways Co. cancelled four flights between Tokyo and New York Monday.

Korean Air Lines Co. and Asiana Airlines Inc. said flights to the eastern coast of the US Monday will be delayed by as much as 26 hours.

Australia's Qantas Airways Ltd., which operates flights to New York via Loas Angeles, will only operate between Australia and Los Angeles on Monday, a spokeswoman said.

"At the moment we're cancelling the Monday service and then monitoring the situation to see of there's any further impact," the spokeswoman said.

Hundreds of thousands of New York City are residents were ordered to leave their homes Sunday ahead of Hurricane Sandy, a dangerous storm that forced the closure of the nation's largest mass transit system and up-ended daily life for millions.

With Hurricane Sandy looming, US airlines suspended operations at airports from Washington to Boston. Carriers canceled 1,270 flights scheduled for Sunday, according to FlightAware.com, a flight-tracking website. As of Sunday night, airlines also canceled 5,900 flights scheduled for Monday and almost 800 flights Tuesday. FlightAware said it expects airlines to cancel more flights scheduled for Tuesday and Wednesday. Many travellers will have to wait until Wednesday to fly.

Airlines usually waive penalty fees for changing reservations due to disruptions cause by inclement weather.

Monday, October 29, 2012

Boeing Sees Challenges After 2012

Manila Bulletin
October 29, 2012

(Bloomberg)- Boeing Co., which has boosted its 2012 profit foercast three times as commercial and military aircraft sales rose, said it expects challenges next year that include a tougher defense market and higher pension expense.

The projected $3.5 billion in pension expense next year will be about $1 billion more than this year's, the planemaker said. The defense unit, source of more than 40 percent of total sales last year, is bracing for cuts in Pentagon spending, according to Boeing, which won't forecast 2013 performance until January.

Those obstacles may temper sales growth from commercial plane deliveries as Chief Executive Officer Jim McNerney takes advantage of a $307-billion backlog, blostered by airlines seeking to trim fuel expenses with more efficient aircraft. Boeing is increasing the division's output by 60 percent in the four years through 2014.

The non-cash pension expense is about $500 million higher than Barclays Plc. had projected and "will weigh on consensus estimates more than we originally expected," Carter Copeland, a New York-based analyst, said in a note to clients after the company's third-quarter earnings report. " We expect this to be the central push-back point on an otherwise strong quarter."

The expense may prompt a reset of 2013 earnings projections, said JP Morgan Chase & Co.'s Joe Nadol, who called it "a whopper." Higher pension costs have also weighed on earnings this year, lowering third-quarter profit by $194 million.

Boeing Chief Financial Officer Greg Smith said the company plans to make voluntary cash pension contributions next year "to proactively manage our liability and expense." He said his top priority is to return cash to shareholders, and he will give an update on share repurchase plans by the end of the year.

Free cash flow in the quarter was $1.17 billion, up from $69 million a year earlier, Chicago-based Boeing said in a statement. The company increased its outlook for operating cash flow this year by $500 million, to more than $5.5 billion. Earnings in 2012 will be $4.80 to $4.95 a share, Boeing said, a projection that exceeds the $4.70 average estimate of 29 analysts in a Bloomberg survey.Third-quarter sales rose 13 percent to $20 billion as shipments of aircraft and equipment to customers climbed 28 percent.

Boeing Commercial Airplanes, which accounted for more than half of 2011 sales, is respondingto what McNery termed a "dramatic" replacement cycle, with airlines trying to reduce fuel costs by investing in new planes.

August Passenger Traffic Up 6%

Manila Bulletin
October 29, 2012

Asia-Pacific airports continued showing a steady growth in passenger traffic in August 2012 and recorded a 6.6% increase compared to August 2011 while Middle Eastern airports' passenger traffic grew by 16.2% year-on-year, according to the latest ACI Passenger ang Freight Flash Reports.

Year-to-date passenger traffic for the period of January to August 2012 showed an increase of 7.9% and 11.8% respectively for Asia-Pacific and Middle East areas.

Beijing (PEK) handled 7.5 million passengers in August 2012 and remained the airport in the region with the highest passenger throughput. Tokyo Haneda (HND) handled 6.5 million passengers took second place followed by Hong Kong (HKG) with over 5.1 million passengers. The other 2 airports in the top 5 were Dubai (DXB) and Jakarta (CGK), both handled about 4.8 million passengers during the month.

In terms of air cargo traffi, Asia-Pacific and Middle Eastern airports recorded a slight increase of +0.4% and +0.1% respectively in August 2012 compared to August 2011.

Year-to-date cargo traffic showed a decrease of -0.7% in the Asia-Pacific area and an increase of 2.9% in the Middle-East area.

Hong kong (HKG), once again, was the airport in the region with the highest cargo throughput, processing over 328,000 tonnes of cargo in August 2012. Shanghai Pudong (PVG) with 241,000 tonnes, Seoul Incheon (ICN) with 194,000 tonnes as well as Dubai (DXB) and Tokyo Narita (NRT) with almost 191,000 and 157,000 tonnes respectively are the 4 other busiest cargo airports in the region.

Commenting on the August traffic record, ACI Asia-Pacific Regional Director Mrs. Patti Chau said: "With the uncertainty of the global economy still persisting, in particular in the developed countries, air cargo traffic remains flat in August and overall, during the first eight months of the year. With a stronger-than-expected 10% growth in Chinese exports in September, we are hopeful that the cargo traffic for both Asia-Pacific and Middle East will pick up speed again and positive figures will be achieved at the year-end." (EHL)

Korean Air Posts Q3 Profit

Manila Bulletin
October 29, 2012

SEOUL (AFP)- Korean Air reported a third quarter net profit, as robust passenger demand on international routes swung the national flag carrier back into the black.

For the three months ended September 30, the airline showed a consilidated net profit of 340 billion ($308 million), compared with a net loss of 536.3 billion won in the same 2011 period.

Friday, October 26, 2012

SIA Ending World’s Longest Flights

Manila Bulletin
October 26, 2012

NEW YORK (AP) – The world’s longest commercial flight - Singapore to Newark, New Jersey - is being cancelled.

Singapore Airlines (SIA) announced Wednesday that it will end its nonstop flight between Singapore and Newark, a distance of about 9,500 miles (15,300 kilometers). A slightly shorter route between Singapore and Los Angeles will also end. The two routes were flown on gas-guzzling Airbus A340-500s.

The airline found the only way to make the routes profitable was by configuring the plane with 98 business class seats that sell for about $8,000 roundtrip. Other airlines operate the same plane with about 250 seats in first, business and economy classes.

The flight from Newark, right outside New York, to Singapore takes about 18 hours. The trip from Los Angeles is about 1,500 miles (2,400 kilometers) shorter but takes 18 hours and 30 minutes.

Headwinds over the Pacific Ocean slow the Los Angeles flight while the Newark flight goes over the North Pole and can fly faster. The Newark flight is the longest distance flight in the world and the Los Angeles one holds the record for duration. The flights started in 2004.

The new titles for longest flights will go to a Qantas route between Sydney and Dallas - which at about 8,500 miles (13,700 kilometers) is the longest route - and a Delta flight between Johannesburg and Atlanta, which at 17 hours will hold the title of longest duration.

Singapore Airlines is selling its five A340-500s back to Airbus as part of a deal announced Wednesday.

Air Seychelles Posts Revenue Gains

Manila Bulletin
October 26, 2012

Air Seychelles has announced third quarter revenues of US$13.8 million, up 23 percent on the second quarter, as the airline’s restructuring program took effect in the drive towards profitability for 2012.

The growth in revenues was led by a 51 percent quarter-on-quarter increase in passengers, up from 53,066 to 79,887, as seat factors rose from 43 percent to 60 percent.

Air Seychelles’ management team is confident that the airline will achieve its target of profitability in 2012, marking a major turnaround after several years of heavy losses.

Cramer Ball, Chief Executive Officer of Air Seychelles, said: “The scale of the task in turning around this company has been significant. There is a fantastic business here based on enthusiastic and committed people, but it needed a more effective commercial focus.  Working together, we have been able to bring that new focus to bear. In this quarter, we have started to see the results. We are not just attracting more passengers but we are seeing higher yields on all our routes. Our costs are falling quickly, as new efficiencies come into play, and we are now running ahead of budget in our cost-cutting program.”

Ball said the positive impact of cooperation with shareholders Etihad Airways and the Seychelles Government was really starting to be felt. In January 2012, Etihad Airways took a 40 per cent shareholding in Air Seychelles and has a five-year management contract.

Flights to Abu Dhabi have increased to four per week, with onward destinations rising from 57 to 375 per week, opening up hundreds of new markets for quick and easy connectivity to the Seychelles.

“As we add capacity back into our fleet and build up network connectivity,” said Ball, “We are setting the foundations for long term, sustainable profitability, giving the Seychelles the national airline it deserves.”

The number of domestic passengers carried over the last three months also surged, up 30 percent to 43,949 compared to the previous quarter.

Wednesday, October 24, 2012

Birdstrike hits another passenger jet at airport

Manila Standard Today
October 24, 2012
By Vito Barcelo

Another birdstrike hit a Philippine Airlines aircraft, with 152 passengers onboard, as it was landing at the Ninoy Aquino International Airport Monday night.

Mechanics of Lufthansa Tehcnik Philippines said they found bloodstains on the wings of Airbus A320 plane that had just come from Bacolod City landed Manila around 8:45 pm. Fortunately, no passenger was injured.

Mechanics found no serious damage to the aircraft's wing or jet engines, but the flagcarrier issued a statement expressing alarm at the increasing incidents of birdstrikes.

"The number of 'birdstrikes' at NAIA has been steadily increasing over the past months as reported by PAL and other airlines operating in Manila's premiere international airport," the airline said.

The Civil Aviation Authority of the Philippines has recorded 49 bird strikes in NAIA from January to September, compared to 30 bird strikes in 2011, and 25 in 2010.

The CAAP and the Manila International Airport Authority attributed the increase in birdstrikes to the bird sanctuary in the Las Pinas area, which they said is in the direct path of the planes.

Only last September, a birdstrike is believed to have been the cause of the crash of a Nepalese airline that killed 19 passengers.

The Sita Air plane came down minutes after leaving Kathmandu for Lukla before crashing into a river bank and catching fire.

In Scotland, civial aviation authorities also noted an increase in the number of bird strikes at the Glasgow, Aberdeen and Inverness airport over the past two years.

CEB Takes Delivery Of 40th Aircarft, Launches Newest Mindanao Route

Manila Bulletin
October 24, 2012 Wednesday


The Philippines' largest national flag carrier, Cebu Pacific Air (CEB) announced that its aircraft fleet is now 40-strong, with more coming until 2021.

Its newest Airbus A320 was delivered from Toulouse, France and touched down in Manila last October 18, 2012. CEB is the only airline in the Philippines with its fleet acquired 100% brand-new, making it one of the youngest and most modern aircraft fleets in Asia.

This is CEB's 22nd Airbus A320. CEB's fleet is now also composed of 10 Airbus A319 and 8 ATR 72-500 aircraft. One more Airbus A320 will be delivered in November 2012.

"CEB will end 2012 with 41 aircraft, the largest aircraft fleet in the Philippines. CEB passengers will continue to benefit from the airline's newest and fuel-efficient aircraft , as we open new domestic and international routes this year," said CEB VP for Marketing and Distribution Candice Iyog.

CEB recently launched thrice weekly Zamboanga-Cagayan de Oro flights last October 20, 2012, using an Airbus A319 aircraft. "This will make travel more convenient to our passengers in Mindanao, who can now take a 1 hour and 10 minute flight between Zamboanga and Cagayan de Oro, instead of a 12 to 14 hour bus ride," she added.

It will launched three more domestic routes in October, and four more international routes in November and December. These international routes are : Iloilo-Hong Kong, Iloilo-Singapore, Cebu-Kuala Lumpur and Cebu-Bangkok.

In its 16th year of operations, CEB had flown over 65 million passengers. It provides access to the most extensive network in the Philippines, with 32 domestic and 19 international destinations. The airline also remains a pionner in the Philippine aviation industry by being the first to offer web check-in, self check-in, e-ticketing, and Lite Fares.

Between 2013 and 2021, CEB will take delivery of 19 more Airbus A320 and 30 Airbus A321neo aircraft orders. It is slated to begin long-haul services in the third quarter of 2013, with the arrival of 4 Airbus A330 aircraft from 2013 to 2014.

Vietnam Budget Carrier Expands Network

Manila Bulletin
October 24, 2012 Wednesday


VietJet Air is aggressively expanding its major network is a bid to make it Vietnam's largest low-cost carrier, overtaking JetStar Pacific by the end of 2012.

The center for Asia Aviation (CAPA) said that VietJet is also set to overtake rival JetStar Pacific in becoming the first Vietnamese LCC to operate international services.

VietJet, which will expand its domestic network from five to nine destinations in Nov 2012, is looking at launching its first international route- possibly Ho Chin Minh-Bangkok in early 2013.

CAPA noted that JetStar Pacific has been focusing this year on fleet renewal rather than expansion but is planning to resume expansion in 2013, ending a hiatus of four years in which growth was paused due partially to internal uncertainty.

The airline started a more promising new chapter earlier this year after a 70% stake was transfered to Vietnam Airlines which previuosly had been looking at launching its own LCC subsidiary. JetStar owns the remaining 30% stake in JetStar Pacific.

But JetStar Pacific may struggle to keep up with much newer VietJet, which is likely to continue expanding at a faster pace than JetStar Pacific, said CAPA.

VietJet launched services in late Dec. 2011 but has expanded quickly and by its first year anniversary will operate 22 daily round-trip frequencies on nine domestic routes. It currently operates five domestic routes and an average of 10 daily frequencies.

CAPA said the carrier is adding capacity on four of its routes on 16 Oct. 2012, at which point it will operate 16 daily frequencies.

VietJet earlier announced plans to add another four routes in Nov. 2012 and Dec. 2012 - Ho Chi Minh to Hue, Phu Qouc and Vinh and Hanoi to Dalat- and expand its total number of daily frequencies to 22.

CAPA noted that JetStar Pacific had a big head start, becoming Vietnam's first LCC in 2007, when the carrier formerly know as Pacific Airlines was rebranded and adopted the low-cost model following investment from JetStar.

But JetStar Pacific currently only operates four domestic routes and 15 daily roundtrip frequencies , based on schedules on JetStar's website. The airline for now is only planning to add two frequencies for the remainder of this year, giving the LCC five domestic routes and 17 daily roundtrips.

JetStar Pacific currently accounts for about 14% of capacity in Vietnam's domestic market while VietJet accounts for 9%.(EHL)

Singapore Airlines Freezes Hiring of Cadet Pilots Due To Slowdown

Manila Bulletin
October 24, 2012 Wednesday


SINGAPORE (AFP)- Singapore Airlines (SIA) said it had temporarily frozen its intake of cadet pilots, as the industry feels the impact of a slowdown in the global economy and high fuel costs.

The move is the second time in three years that the carrier has put a hold on hiring, and comes months after SIA asked some of its pilots to take unpaid leave as profits slumped.

In a statement SIA, which is considered a bellwether for the full-service airline industry said it adjusted its recruitment policy on a regular basis "on operational requirements" adding that it last recruited a group of cadets earlier this year.

"As we have temporary surplus of First Officers, we are not currently recruiting new cadets," it said but added that it would not give specifics "for reasons of commercial confidentiality."

The decision comes as the global economy suffers a slowdown fuelled by the eurozone debt crisis, a softer growth in China and a patchy US recovery.

SIA encourage its pilot in March to go on voluntary leave without pay and work for other companies. That call came as it saw net profit in the year to March slump 69 percent to Sg$336 million ($275 million) owing to high oil prices and rising competition.

Year-on-year net profit rebounded 73 percent in the first fiscal quarter to June, but SIA painted a gloomy outlook for the rest of the year.

"The global economy remains uncertain as Europe struggles to contain its debt crisis, while the Unites States faces a sluggish recovery," SIA said in July.

Passenger Capacity Between Manila And China Remains Subdued, CAPA Says

by Edu Lopez
Manila Bulletin
October 24, 2012 Wednesday


Passenger capacity between China and the Philippines has been reduced as a result of China issuing a travel warning to Manila and travel agencies subsequently not selling the Philippines.

The centerfor Asia Pacific Aviation (CAPA) said that the dispute between the two nations over the Scarborough Shoal, and the situation has gone largely unnoticed with each nation's general public, let alone the international community.

CAPA noted that the Philippines like Japan, is starting to meet Chinese to ssek to reconcile the disagreement.

While in the China-Japan situation this warming of relations will see the start of a rebound -JAL believes the market has already seen the worst- the China-Philippines market will see little change until China lifts the travel warning, likely to be done once negotiations are concluded, said CAPA.

That longer time-frame is apparent from the planned capacity levels between China and the Phlippines being down 18% year-over-year in Dec. 2012, CAPA said.

"Although the China-Philippines market is a fraction of the China-Japan market. China-Philippines capacity in Oct. 2012 was down 17% and is scheduled to be down 11% in Nov. 2012."

CAPA believes that that more substantial effect of the China-Philippines dispute compared to the dispute between China and Japan is a reminder that the more prominent expressions of public sentiment and attention do not always correspond to the deeper situation.

Traffic flows remain inhibited by low frequencies, legacy airline pricing and limited city-pair links. As the market grows, the improved social and economic links should progressively help to soften the sort of political differences witnessed recently, CAPA added. 

Tuesday, October 23, 2012

Pan Pacific Says Staff Shortage Threat To Hotels In SEA

Manila Bulletin
October 23, 2012
By Sharon Chen

Pan Pacific Hotels Group Ltd. Chief Executive Officer Patrick Imbardelli said retaining employees in markets including Bali, Myanmar and Manila is the Asian hospitality industry’s greatest challenge.

Competition among hotel operators, workers choosing to seek jobs overseas and a lack of suitably trained employees have contributed to the shortage, Imbardelli said. The industry also loses workers to banks, insurance companies and airlines, which are focusing more on service and presentation, he said.

“The single biggest challenge we have is the talent crunch,” Imbardelli said in an interview in Singapore on Oct. 19. The shortage is across the board, from front-office managers to top management, he said.

Pan Pacific, Starwood Hotels & Resorts Worldwide Inc. and Marriott International Inc. are among chains building more hotels in Asia as travel to the region increases. More hotels and a lack of experienced workers for the industry is “a big squeeze on profitability,” said Robert Hecker, Singapore-based managing director of Horwath HTL Asia Pacific.

Hotels in Asia will have to spend more money on marketing to attract new workers and take on the costs of training them, Hecker said.

“There is a huge pipeline of new hotels,” Hecker said. “It probably means that market occupancies are going to be coming down because supply is increasing faster than demand, so that puts a crunch on the revenue side, combined with increasing costs to staff.”

Pan Pacific, controlled by Singapore billionaire Wee Cho Yaw’s UOL Group Ltd., was unchanged at S$2.26 at the close in Singapore on Oct. 19. The stock has advanced 22 percent this year and the parent company has gained 45 percent, surpassing the 15 percent increase in Singapore’s Straits Times Index.

Manila sees a “huge outflux of people” for jobs overseas, Imbardelli said. In Bali, independent hotels and villas compete with established chains for workers, while Myanmar’s nascent travel market lacks experienced employees, he said.

Pan Pacific owns about 30 hotels, resorts and serviced apartments globally.

In Singapore, where the group has eight properties including those under its Park Royal brand, the government’s tightening of rules on foreign workers has hurt the industry’s ability to hire more workers, Imbardelli said.

Etihad, Garuda In Code-Share Accord

Manila Bulletin
October 23, 2012

Etihad Airways, the national airline of the United Arab Emirates, today signed a new codeshare agreement with the Indonesian flag carrier, Garuda Indonesia. The agreement, which comes into effect on October 28, 2012, is the airline’s 42nd codeshare.

In the first phase of the partnership, Etihad Airways will place its ‘EY’ code on Garuda Indonesia’s services between Jakarta and Denpasar (Bali), and Jakarta and Kuala Lumpur. Subject to regulatory approval, Garuda Indonesia will place its ‘GA’ code on Etihad Airways flights from Jakarta to up to 31 destinations in the GCC, Levant, Africa, Europe and North America.

Subject to regulatory approval, the airlines plan to expand the scope of the agreement to include more destinations in each other’s network and offer customer benefits such as frequent flyer program reciprocity and airport lounge access.

James Hogan, Etihad Airways President and Chief Executive Officer, said the codeshare with Garuda Indonesia was a key plank of the airline’s network development strategy.

“The partnership with Garuda Indonesia will contribute to Etihad Airways achieving its goal of expanding its network and brand presence in South East Asia. Indonesia, the world’s fourth most populous nation, is an important source of global tourism growth and this new agreement will position both airlines to benefit from the strong demand for travel between Indonesia and the Middle East and Europe that we have seen in recent years,” Hogan said.

Airline Passengers Want More Control Of Journey, Says SITA Report

Manila Bulletin
October 23, 2012
By Edu Lopez

Airline passengers want more control of their journey and are looking for more self-service and mobile-based offerings to reduce stress during travel, according to the 2012 SITA-Air Transport World Passenger Self-Service Survey.

The survey revealed that 70 percent of passengers now carry smartphones, which is fueling the demand for services such as self-boarding and flight information updates on their mobiles.

Self-service continues to be increasingly popular with passengers: almost two thirds used a self-service channel to check-in on the day of the survey, up from just over half last year. Close to 90% of passengers rated flight status updates on their mobiles and self-boarding as their top self-service technologies.

Francesco Violante, CEO, SITA, said: “What passengers really want is to avoid delays and to be kept informed of what is happening. Nearly everyone surveyed said they would welcome any queue-busting services and 89% voted self-boarding as their top technology.

“It is very clear from our survey earlier this year that airports and airlines are working in the same direction, so we expect to see significant growth in technologies aimed at reducing waiting times.”

He noted that the number of passengers with smartphones has risen dramatically over the past year from 54% to 70%.

“We are already seeing the impact at airports with mobile check-in increasing by one third during this period and as many as 21% of passengers have now used a mobile boarding pass. We’re now at the tipping point of explosive growth in mobile services offered to passengers, which will give them more control over their journey and reduce stress.”

As passengers become used to the services currently on offer, they want more. For example, self-service check-in has been popular for some time, but checking in a bag has remained a barrier.  However, passengers are now showing a willingness to do it themselves, with 68% picking automated bag drop as one of their top self-service offerings.

Philippines’ AirAsia Re-Aligns Flight Sked

Manila Bulletin
October 23, 2012

CLARK, Pampanga – In a move to rationalize and consolidate operations brought about by volatile oil prices and the growing demand for foreign tourism, Philippines’ AirAsia today announced that it is re-aligning flights from Clark International Airport with two new flights to Singapore and Taipei on December and rationalizing flight frequencies to its domestic destinations.

“With our two new international routes, we would like to draw in-bound tourist to the country and help contribute to tourism dollar revenues,” AirAsia Inc. CEO Maan Hontiveros said.

Since DOT’s “it’s more fun” campaign was launched in January, the Philippines has been attracting foreign tourist with South Korea, United States, Japan, China, and Taiwan as the country’s top visitors. Tourism Secretary Ramon Jimenez Jr. has said that a total of 2,143,506 million foreign visitors came to the country from January to June this year or 11.68 percent higher compared to last year’s 1,919,400 visitors.

“We need to build up routes within an infrastructure that supports low-fare services since we are in an industry that is not immune to rising fuel cost and operational challenges. We intend to open up new international routes within these markets, as well as add frequencies on existing routes, thanks to the aggressive campaign of DOT in promoting the country abroad,” Hontiveros added.

Starting 1st December, AirAsia will fly to Singapore and to Taipei on December 15. It will also add frequencies to Hong Kong while rationalizing flights to Davao and Kalibo, and suspending services to Puerto Princesa and Macau.

Guests who are affected by the changes will be offered three options: a full refund of their flight bookings or a credit shell of the value of their flight bookings which is valid for 3 months or an option to change their flight date without any costs, subject to availability. An email will also be sent to the affected guests’ registered member email account where they are able to select their preferred service recovery option. Affected guests will also receive an SMS notification of the flight changes.

Clark Int’l Airport Expects Year’s 1 Millionth Passenger This Week

Manila Bulletin
October 23, 2012

The Clark International Airport expects its landmark one millionth passenger this week, attained even before yearend, Clark International Airport Corporation (CIAC) President and CEO Victor Jose I. Luciano said yesterday.

“This is another milestone for the Clark International Airport as we have achieved for the first time an unprecedented one million passengers in just 10 months of 2012,” said Luciano.

On June 29, 2007, the Clark airport received its first one-million passengers after four years of operations that started in November 2003. The one-millionth passenger was Korean national Lee Eun Hee, a 35-year-old computer programmer that arrived at the Clark airport aboard an Asiana Airlines flight from Incheon, South Korea.

Luciano said the Clark International Airport is on its way to attaining close to 1.4 million passengers by the end of 2012 due to the increase in the number of both international and domestic flights.

The CIAC chief pointed out that seven budget carriers currently operate on a 24-hour basis at the Clark International Airport, the most number of budget carriers compared to other airports in the country.

Budget carriers operating at the Clark International Airport are Air Asia Philippines, Air Asia Berhad of Malaysia, Cebu Pacific Air, South East Asian Airlines (Seair) in partnership with Tiger Airways of Singapore, Jin Air and Airphil Express while full-service carriers include Asiana Airlines of South Korea, and Hong Kong based Dragonair.

The airport is now bustling with 296 aircraft movements per week and is expected to increase further as Zest Airways is slated to launch daily international flights from Clark to Incheon, South Korea later this month.

SIA Engineering Philippines is also set to ground-break their two hangars by December 2012 in a bid to boost their maintenance repair aircraft operations at the Clark Civil Aviation Complex. The two additional maintenance repair and overhaul facilities will accomodate twin-aisle aircraft such as B747 and B777. The first hangar was established in 2009 catering Airbus320s. SIA Engineering is a joint venture project with Cebu Pacific Air.

On June 5, 2012, Hong Kong based aviation company Metrojet Engineering inaugurated their $40 million Maintenance Repair and Overhaul (MRO) facility in a three hectare land inside the aviation complex. Metrojet is the leading business jet operator in Asia committed to providing 6-star service to its clients by offering a complete range of business aviation services including aircraft charter, aircraft management, aircraft maintenance, aircraft co-ownership programs and acquisition and sales.

Luciano had earlier proposed to the Department of Transportation and Communication (DOTC) the setup of a Budget Terminal that would initially accommodate close to 10 million passengers annually. The proposed Budget Terminal is similar to the Kuala Lumpur International Airport in Malaysia.

CEB Takes Delivery Of 40th Aircraft, Launches Newest Mindanao Route

Manila Bulletin
October 23, 2012

The Philippines’ largest national flag carrier, Cebu Pacific Air (CEB) announced that its aircraft fleet is now 40-strong, with more coming until 2021.

Its newest Airbus A320 was delivered from Toulouse, France and touched down in Manila last October 18, 2012. CEB is the only airline in the Philippines with its fleet acquired 100% brand-new, making it one of the youngest and most modern aircraft fleets in Asia.

This is CEB’s 22nd Airbus A320. CEB’s fleet is now also composed of 10 Airbus A319 and 8 ATR 72-500 aircraft. One more Airbus A320 will be delivered in November 2012.

“CEB will end 2012 with 41 aircraft, the largest aircraft fleet in the Philippines. CEB passengers will continue to benefit from the airline’s newest and fuel-efficient aircraft, as we open new domestic and international routes this year,” said CEB VP for Marketing and Distribution Candice Iyog.

CEB recently launched thrice weekly Zamboanga – Cagayan de Oro flights last October 20, 2012, using an Airbus A319 aircraft. “This will make travel more convenient to our passengers in Mindanao, who can now take a 1 hour and 10 minute flight between Zamboanga and Cagayan de Oro, instead of a 12 to 14 hour bus ride,” she added.

It will launch three more domestic routes in October, and four more international routes in November and December. These international routes are: Iloilo-Hong Kong, Iloilo-Singapore, Cebu-Kuala Lumpur and Cebu-Bangkok.

In its 16th year of operations, CEB had flown over 65 million passengers. It provides access to the most extensive network in the Philppines, with 32 domestic and 19 international destinations. The airline also remains a pioneer in the Philippine aviation industry by being the first to offer web check-in, self check-in, e-ticketing, and Lite Fares.

Between 2013 and 2021, CEB will take delivery of 19 more Airbus A320 and 30 Airbus A321neo aircraft orders. It is slated to begin long-haul services in the 3rd quarter of 2013, with the arrival of 4 Airbus A330 aircraft from 2013 to 2014.

China-Philippines air traffic still falling

Philippine Daily Inquirer
October 23, 2012
By Paolo G. Montecillo

Air traffic between China and the Philippines continued to fall despite the recent easing of territorial dispute-related tensions between Beijing and Manila.

A report by research group Center for Asia Pacific Aviation (Capa), which was released last week, estimated that airline passenger capacity  between China and the Philippines would be down by 17 percent in October and 11 percent in November from year-ago levels.

The reduction in capacity is expected to worsen in December, with the number of available seats between the two countries seen going down by 18 percent from year-ago level.

This was based on the scheduled flights of the airlines that fly from China to the Philippines and vice versa.

“The capacity between China and the Philippines has been reduced as a result of the issuance by China of a travel warning to the Philippines, and travel agencies subsequently not selling the country,” Capa said in its report.

In May, the China National Tourism Organization announced the travel suspension amid the ongoing dispute over the Scarborough Shoal, which is believed to be sitting on top of huge oil reserves that both states want to tap.

Capa said the effect that political tensions have had on the Philippine aviation sector had been more significant, considering that the dispute between the two countries was just a blip on the radar for China, which is also dealing with a similar territorial dispute with Japan.

Capa said the dispute between China and the Philippines over the Scarborough Shoal “has gone largely unnoticed with each nation’s general public, let alone the international community.”

Capa said the China-Philippines market would see little change until China lifted the travel warning.

“The more substantial effect of the China-Philippines dispute (proportionally) compared to the dispute between China and Japan is a reminder that more prominent expressions of public sentiment and attention do not always correspond to a deeper situation,” Capa said.

Pan Pacific Says Staff Shortage Threat To Hotels In SEA

Manila Bulletin
October 23, 2012
By Sharon Chen

Pan Pacific Hotels Group Ltd. Chief Executive Officer Patrick Imbardelli said retaining employees in markets including Bali, Myanmar and Manila is the Asian hospitality industry’s greatest challenge.

Competition among hotel operators, workers choosing to seek jobs overseas and a lack of suitably trained employees have contributed to the shortage, Imbardelli said. The industry also loses workers to banks, insurance companies and airlines, which are focusing more on service and presentation, he said.

“The single biggest challenge we have is the talent crunch,” Imbardelli said in an interview in Singapore on Oct. 19. The shortage is across the board, from front-office managers to top management, he said.

Pan Pacific, Starwood Hotels & Resorts Worldwide Inc. and Marriott International Inc. are among chains building more hotels in Asia as travel to the region increases. More hotels and a lack of experienced workers for the industry is “a big squeeze on profitability,” said Robert Hecker, Singapore-based managing director of Horwath HTL Asia Pacific.

Hotels in Asia will have to spend more money on marketing to attract new workers and take on the costs of training them, Hecker said.

“There is a huge pipeline of new hotels,” Hecker said. “It probably means that market occupancies are going to be coming down because supply is increasing faster than demand, so that puts a crunch on the revenue side, combined with increasing costs to staff.”

Pan Pacific, controlled by Singapore billionaire Wee Cho Yaw’s UOL Group Ltd., was unchanged at S$2.26 at the close in Singapore on Oct. 19. The stock has advanced 22 percent this year and the parent company has gained 45 percent, surpassing the 15 percent increase in Singapore’s Straits Times Index.

Manila sees a “huge outflux of people” for jobs overseas, Imbardelli said. In Bali, independent hotels and villas compete with established chains for workers, while Myanmar’s nascent travel market lacks experienced employees, he said.

Pan Pacific owns about 30 hotels, resorts and serviced apartments globally.

In Singapore, where the group has eight properties including those under its Park Royal brand, the government’s tightening of rules on foreign workers has hurt the industry’s ability to hire more workers, Imbardelli said.

Etihad, Garuda In Code-Share Accord

Manila Bulletin
October 23, 2012

Etihad Airways, the national airline of the United Arab Emirates, today signed a new codeshare agreement with the Indonesian flag carrier, Garuda Indonesia. The agreement, which comes into effect on October 28, 2012, is the airline’s 42nd codeshare.

In the first phase of the partnership, Etihad Airways will place its ‘EY’ code on Garuda Indonesia’s services between Jakarta and Denpasar (Bali), and Jakarta and Kuala Lumpur. Subject to regulatory approval, Garuda Indonesia will place its ‘GA’ code on Etihad Airways flights from Jakarta to up to 31 destinations in the GCC, Levant, Africa, Europe and North America.

Subject to regulatory approval, the airlines plan to expand the scope of the agreement to include more destinations in each other’s network and offer customer benefits such as frequent flyer program reciprocity and airport lounge access.

James Hogan, Etihad Airways President and Chief Executive Officer, said the codeshare with Garuda Indonesia was a key plank of the airline’s network development strategy.

“The partnership with Garuda Indonesia will contribute to Etihad Airways achieving its goal of expanding its network and brand presence in South East Asia. Indonesia, the world’s fourth most populous nation, is an important source of global tourism growth and this new agreement will position both airlines to benefit from the strong demand for travel between Indonesia and the Middle East and Europe that we have seen in recent years,” Hogan said.

Airline Passengers Want More Control Of Journey, Says SITA Report

Manila Bulletin
October 23, 2012
By Edu Lopez

Airline passengers want more control of their journey and are looking for more self-service and mobile-based offerings to reduce stress during travel, according to the 2012 SITA-Air Transport World Passenger Self-Service Survey.

The survey revealed that 70 percent of passengers now carry smartphones, which is fueling the demand for services such as self-boarding and flight information updates on their mobiles.

Self-service continues to be increasingly popular with passengers: almost two thirds used a self-service channel to check-in on the day of the survey, up from just over half last year. Close to 90% of passengers rated flight status updates on their mobiles and self-boarding as their top self-service technologies.

Francesco Violante, CEO, SITA, said: “What passengers really want is to avoid delays and to be kept informed of what is happening. Nearly everyone surveyed said they would welcome any queue-busting services and 89% voted self-boarding as their top technology.

“It is very clear from our survey earlier this year that airports and airlines are working in the same direction, so we expect to see significant growth in technologies aimed at reducing waiting times.”

He noted that the number of passengers with smartphones has risen dramatically over the past year from 54% to 70%.

“We are already seeing the impact at airports with mobile check-in increasing by one third during this period and as many as 21% of passengers have now used a mobile boarding pass. We’re now at the tipping point of explosive growth in mobile services offered to passengers, which will give them more control over their journey and reduce stress.”

As passengers become used to the services currently on offer, they want more. For example, self-service check-in has been popular for some time, but checking in a bag has remained a barrier.  However, passengers are now showing a willingness to do it themselves, with 68% picking automated bag drop as one of their top self-service offerings.

Philippines’ AirAsia Re-Aligns Flight Sked

Manila Bulletin
October 23, 2012

CLARK, Pampanga – In a move to rationalize and consolidate operations brought about by volatile oil prices and the growing demand for foreign tourism, Philippines’ AirAsia today announced that it is re-aligning flights from Clark International Airport with two new flights to Singapore and Taipei on December and rationalizing flight frequencies to its domestic destinations.

“With our two new international routes, we would like to draw in-bound tourist to the country and help contribute to tourism dollar revenues,” AirAsia Inc. CEO Maan Hontiveros said.

Since DOT’s “it’s more fun” campaign was launched in January, the Philippines has been attracting foreign tourist with South Korea, United States, Japan, China, and Taiwan as the country’s top visitors. Tourism Secretary Ramon Jimenez Jr. has said that a total of 2,143,506 million foreign visitors came to the country from January to June this year or 11.68 percent higher compared to last year’s 1,919,400 visitors.

“We need to build up routes within an infrastructure that supports low-fare services since we are in an industry that is not immune to rising fuel cost and operational challenges. We intend to open up new international routes within these markets, as well as add frequencies on existing routes, thanks to the aggressive campaign of DOT in promoting the country abroad,” Hontiveros added.

Starting 1st December, AirAsia will fly to Singapore and to Taipei on December 15. It will also add frequencies to Hong Kong while rationalizing flights to Davao and Kalibo, and suspending services to Puerto Princesa and Macau.

Guests who are affected by the changes will be offered three options: a full refund of their flight bookings or a credit shell of the value of their flight bookings which is valid for 3 months or an option to change their flight date without any costs, subject to availability. An email will also be sent to the affected guests’ registered member email account where they are able to select their preferred service recovery option. Affected guests will also receive an SMS notification of the flight changes.

Clark Int’l Airport Expects Year’s 1 Millionth Passenger This Week

Manila Bulletin
October 23, 2012

The Clark International Airport expects its landmark one millionth passenger this week, attained even before yearend, Clark International Airport Corporation (CIAC) President and CEO Victor Jose I. Luciano said yesterday.

“This is another milestone for the Clark International Airport as we have achieved for the first time an unprecedented one million passengers in just 10 months of 2012,” said Luciano.

On June 29, 2007, the Clark airport received its first one-million passengers after four years of operations that started in November 2003. The one-millionth passenger was Korean national Lee Eun Hee, a 35-year-old computer programmer that arrived at the Clark airport aboard an Asiana Airlines flight from Incheon, South Korea.

Luciano said the Clark International Airport is on its way to attaining close to 1.4 million passengers by the end of 2012 due to the increase in the number of both international and domestic flights.

The CIAC chief pointed out that seven budget carriers currently operate on a 24-hour basis at the Clark International Airport, the most number of budget carriers compared to other airports in the country.

Budget carriers operating at the Clark International Airport are Air Asia Philippines, Air Asia Berhad of Malaysia, Cebu Pacific Air, South East Asian Airlines (Seair) in partnership with Tiger Airways of Singapore, Jin Air and Airphil Express while full-service carriers include Asiana Airlines of South Korea, and Hong Kong based Dragonair.

The airport is now bustling with 296 aircraft movements per week and is expected to increase further as Zest Airways is slated to launch daily international flights from Clark to Incheon, South Korea later this month.

SIA Engineering Philippines is also set to ground-break their two hangars by December 2012 in a bid to boost their maintenance repair aircraft operations at the Clark Civil Aviation Complex. The two additional maintenance repair and overhaul facilities will accomodate twin-aisle aircraft such as B747 and B777. The first hangar was established in 2009 catering Airbus320s. SIA Engineering is a joint venture project with Cebu Pacific Air.

On June 5, 2012, Hong Kong based aviation company Metrojet Engineering inaugurated their $40 million Maintenance Repair and Overhaul (MRO) facility in a three hectare land inside the aviation complex. Metrojet is the leading business jet operator in Asia committed to providing 6-star service to its clients by offering a complete range of business aviation services including aircraft charter, aircraft management, aircraft maintenance, aircraft co-ownership programs and acquisition and sales.

Luciano had earlier proposed to the Department of Transportation and Communication (DOTC) the setup of a Budget Terminal that would initially accommodate close to 10 million passengers annually. The proposed Budget Terminal is similar to the Kuala Lumpur International Airport in Malaysia.

CEB Takes Delivery Of 40th Aircraft, Launches Newest Mindanao Route

Manila Bulletin
October 23, 2012

The Philippines’ largest national flag carrier, Cebu Pacific Air (CEB) announced that its aircraft fleet is now 40-strong, with more coming until 2021.

Its newest Airbus A320 was delivered from Toulouse, France and touched down in Manila last October 18, 2012. CEB is the only airline in the Philippines with its fleet acquired 100% brand-new, making it one of the youngest and most modern aircraft fleets in Asia.

This is CEB’s 22nd Airbus A320. CEB’s fleet is now also composed of 10 Airbus A319 and 8 ATR 72-500 aircraft. One more Airbus A320 will be delivered in November 2012.

“CEB will end 2012 with 41 aircraft, the largest aircraft fleet in the Philippines. CEB passengers will continue to benefit from the airline’s newest and fuel-efficient aircraft, as we open new domestic and international routes this year,” said CEB VP for Marketing and Distribution Candice Iyog.

CEB recently launched thrice weekly Zamboanga – Cagayan de Oro flights last October 20, 2012, using an Airbus A319 aircraft. “This will make travel more convenient to our passengers in Mindanao, who can now take a 1 hour and 10 minute flight between Zamboanga and Cagayan de Oro, instead of a 12 to 14 hour bus ride,” she added.

It will launch three more domestic routes in October, and four more international routes in November and December. These international routes are: Iloilo-Hong Kong, Iloilo-Singapore, Cebu-Kuala Lumpur and Cebu-Bangkok.

In its 16th year of operations, CEB had flown over 65 million passengers. It provides access to the most extensive network in the Philppines, with 32 domestic and 19 international destinations. The airline also remains a pioneer in the Philippine aviation industry by being the first to offer web check-in, self check-in, e-ticketing, and Lite Fares.

Between 2013 and 2021, CEB will take delivery of 19 more Airbus A320 and 30 Airbus A321neo aircraft orders. It is slated to begin long-haul services in the 3rd quarter of 2013, with the arrival of 4 Airbus A330 aircraft from 2013 to 2014.

China-Philippines air traffic still falling

Philippine Daily Inquirer
October 23, 2012
By Paolo G. Montecillo

Air traffic between China and the Philippines continued to fall despite the recent easing of territorial dispute-related tensions between Beijing and Manila.

A report by research group Center for Asia Pacific Aviation (Capa), which was released last week, estimated that airline passenger capacity  between China and the Philippines would be down by 17 percent in October and 11 percent in November from year-ago levels.

The reduction in capacity is expected to worsen in December, with the number of available seats between the two countries seen going down by 18 percent from year-ago level.

This was based on the scheduled flights of the airlines that fly from China to the Philippines and vice versa.

“The capacity between China and the Philippines has been reduced as a result of the issuance by China of a travel warning to the Philippines, and travel agencies subsequently not selling the country,” Capa said in its report.

In May, the China National Tourism Organization announced the travel suspension amid the ongoing dispute over the Scarborough Shoal, which is believed to be sitting on top of huge oil reserves that both states want to tap.

Capa said the effect that political tensions have had on the Philippine aviation sector had been more significant, considering that the dispute between the two countries was just a blip on the radar for China, which is also dealing with a similar territorial dispute with Japan.

Capa said the dispute between China and the Philippines over the Scarborough Shoal “has gone largely unnoticed with each nation’s general public, let alone the international community.”

Capa said the China-Philippines market would see little change until China lifted the travel warning.

“The more substantial effect of the China-Philippines dispute (proportionally) compared to the dispute between China and Japan is a reminder that more prominent expressions of public sentiment and attention do not always correspond to a deeper situation,” Capa said.

Monday, October 15, 2012

Korean Air's Business Class Lounges Named Tops by Frequent Business Travelers

The Philippine Star October 15, 2012 Korean Air's Business Class lounges have been named best in the world by the readers of Frequent Business Traveler (www.frequentbusinesstraveler.com), an online publication written for and by affluent frequent business travelers. The Frequent Business Traveler GlobeRunner Awards recognize the world's best travel companies, including airline, hotel, car rental agencies and travel websites. "Korean Air's Business Class lounges have been singled out by the road warrior readers of Frequent Business Traveler," said Jonathan Spira, editorial director of Frequent Business Traveler. "Their very selective preferences and extensive patronage of hotels, airlines and everything travel-related make their votes particularly meaningful." Award nominations were made by the publication's editorial team of experienced travel journalists in more than 20 categories. Voting was conducted online from March 1 through May 15, and almost 50,000 votes were cast. Winners will receive a personalized award. In addition, a donation will be made in their name to the PKD Foundation, an organization dedicated to discovering treatments and a cure for Polycystic Kidney Disease which claimed the life of Frequent Business Traveler co-founder Greg Spira. Coverage of the awards, and the complete list of GlobeRunner awards winners, is available online at www.frequentbusinesstraveler.com/2012/07/globerunner-2012.

Saturday, October 6, 2012

Low-Cost Flying Arrives In Japan With 3 Budget Carriers

Manila Bulletin
October 6, 2012
By Yuki Kageyama

Narita, Japan (AP) - Japan has a reputation for loving expensive things like overpriced real estate, gourmet melons and luxury brands. But the nation is finally discovering the joy of flying cheap, with arrival  this year of three low-cost carriers.

The takeoff of Air Asia Japan, Peach Aviation and Jetstar Japan could change lifestyles. No longer will air travel be mostly confined to business trips and fancy once-in-a-lifetime vacations to places such as Hawaii.

Flying is suddenly growing more casual, including for weekend dining, visits with friends, even day trips. Ticket prices are plunging by about half, to 16,000 yen ($200) trips to the southwestern resort island of Okinawa or a 5,000 yen ($60) hop to Seoul. The airlines are not only out to woo Japanese away from regular leisure activities such as spending money at Disneyland or watching a movie. They are also out to convince the notoriously workaholic Japanese not to work so hard.

They may revitalize Japan's 3 trillion yen ($38 billion) aviation market - already the world's third largest, comprising about 5.5 percent of global traffic and 11 percent of industry revenues - that critics say is untapped for its tremendous potential.

Helping to drive the change is the expansion of two Tokyo airports, Haneda and Narita, which has opened up more landing slots for airlines.

Twenty-two-year-old graduate student Chie Kodama recently used Jetstar for an urban planning research trip to Okinawa, and was surprised at how the planes were "normal," like any other airline's.

"And it is so cheap you forgive any shortcomings," she said.

As with other low-cost carriers around the world, flyers get charged for meals and extra luggage. Efficiency is critical and so the airlines use online advertising and reservations, fit more seats into each jet, and take off quickly after landing.

Booking early is a must for the best deals, and refunds schedule changes aren't allowed. The gates are typically at the farthest end of airports. Flights are sometimes delayed. The wait feels longer because LCC users have to check in extra early.

Masato Yamaguchi, 22, said his friends had to run like mad when their AirAsia flight back to Tokyo from Okinawa was delayed, and they barely had time to catch the last bus.

As he noted: What would be the point of having to pay hundreds of dollars for a cab home, of they had endured the cramped space of a low-cost carrier to pinch premise?

"There was no way to cross your legs," Yamaguchi grumbled. "You wouldn't want to use it if you're going someplace far away."

Still, the carriers are doing well so far.

During the nation's Obon holidays in August, domestic flights at Peach were 94 percent filled, those at AirAsia were at 91 percent and at Jetstar, 89 percent. The companies are hoping to do as well for the year-end and New Year's holidays.

"It's not that the meals on standard fare were ever free. The charge was just part of the ticket price," Kazuyuki Iwakata, president of AirAsia Japan, told the Associated Press. "With us, people pay only for what they need."

As a marketing ploy, AirAsia Japan, which started operations in August, offered tickets for just 5 yen (5 cents) to the first 10,000 people. They quickly sold out.

During the go-go "bubble years" of the late 1980s and early 1990s, Japanese were especially seen as finicky consumers who delighted in 3,000 yen ($30) cups of fancy coffee and snatched up 500,000 yen ($5,000) designer bags.

Such spending has lost some of its glamor as Japanese become less status-concious, perhaps poorer and look for discounts. Such shifts in consumer tastes is  underlined in the popularity, for instance, of Fast Retailing Co.'s no-nonsense  Uniqlo clothing chain, which is also opening shops in the US.

Kingfisher Airlines Fleet Grounded Further

Manila Bulletin
October 6, 2012

NEW DELHI (AFP) - India's cash-strapped Kingfisher Airlines will remain grounded for another week after employees who have not been paid for the last seven months refused to go back to work, the company said.

All Kingfisher flights have been cancelled since Monday as the airline tries to persuade employees to go back to work, but talks to resolve the crisis ended without making any headway on Thursday.

Kingfisher spokesman Prakash Mirpuri voiced "regret' that the staff had refused to return to work, "thereby continuing cripple and paralyze the working of the entire airline".

The airline was extending what it called a "partial lock-out" to October 12, Mirpuri added in a statement released late on Thursday.

A new report by the Centre for Asia Pacific Aviation, a leading aviation consultancy, has cast doubt on the management's efforts to turn the company around, saying Kingfisher's debts now totalled $2.49 billion.

Thursday, October 4, 2012

Asia Pacific Passenger Traffic Grows By 6.7% In August 2012

Manila Bulletin
October 4, 2012

MANILA, Philippines — The Association of Asia Pacific Airlines (AAPA) has sustained an increase in international air passenger traffic in August 2012 in contrast to continued weakness in air freight markets.

Asia Pacific airlines carried an aggregate total of 18.5 million international passengers in August, a 6.8% increase compared to the same month last year, led by relatively strong demand for regional travel.

International passenger traffic, measured in revenue passenger kilometre (RPK) terms, grew more by 5.3%. Offered seat capacity expanded by 3.5%, resulting in a 1.4 percentage point increase in the average international passenger load factor to 80.3% for the month.

Air freight markets remain depressed, as a result of weakening consumer confidence in the major developed economies leading to a corresponding slowdown in exports from Asia.

International air cargo demand, as expressed in freight ton kilometre (FTK) terms, was 4.4% lower in August compared to the same month last year.

Combined with a 4.1% reduction in offered freight capacity, the average international air cargo load factor was almost unchanged, at 64.6%.

Commenting on the results, Mr. Andrew Herdman, AAPA director general said: “The overall trend in international air travel demand remains encouraging, as reflected in the 7.9% increase in the number of passengers carried by Asia Pacific based airlines during the first eight months of this year.”

“While the overall pace of global economic activity is clearly slowing, Asian economies have so far remained relatively resilient with domestic demand still supporting business and leisure related travel.”

“However, we are still seeing persistent weakness in air cargo markets, with Asian carriers posting a 4.4% decline in international air cargo demand during the first eight months of the year, with no sign of any upturn.”

“Notwithstanding the evident slowdown in the global economy, oil prices remain high, averaging US$112 per barrel so far this year, further pressuring airline margins and industry profitability,” Herdman added.

EASA To Amend Rules On Flight & Duty Time Limitations

Manila Bulletin
October 4, 2012
By Edu Lopez

MANILA, Philippines — The European Aviation Safety Agency (EASA) has proposed some changes in the current EU rules on flight and duty time limitations and rest requirements (FTL) for commercial air transport.

The proposed rules contain more than 30 safety improvements compared to current requirements and introduce new limitations to the way crews can be scheduled.

EASA said the proposed rules take full account of the fact that fatigue is one of the main factors affecting human performance and makes no provision for increased pilot flight hours.

On the contrary, allowed duty periods at night are reduced, rest for flights with time zone crossings is significantly increased, and new rules are introduced for limiting crew standby.

These FTL rules are the final step in a fully transparent rulemaking process, with unprecedented scientific input and public consultation. More than 50 scientific studies were analysed, while all concerned stakeholder groups including flight and cabin crew organizations, airlines and member-state representatives were consulted throughout the process.

Commenting on the proposed rules, EASA Executive Director, Patrick Goudou, said: “These harmonized flight crew duty time rules are based on scientific evidence, risk assessment and best practice. EASA proves once again its commitment to make no compromise with the safety of air passengers in Europe and throughout the world.”

The proposed rules would be finalized by the European Commission and must be approved by member-states, with Parliamentary scrutiny. The new rules are expected to be adopted into EU law after mid-2013 and fully implemented by the end of 2015.

Cebu Air confirms offer to look at Zest Airways

Business Mirror
October 4, 2012
By Lenie Lectura

CEBU AIR Inc. said on Tuesday it was offered to take a look at possibly acquiring Zest Airways Inc.

“Cebu Pacific has been approached to indicate its interest in this opportunity. However, any interest which the company may have at this point is at best indicative and non-binding. The company is presently not [conducting] any due diligence on Zest Air,” said the airline in a disclosure to the stock exchange.

Zest Air chairman Ambassador Donald Dee earlier said there are local and foreign carriers interested to invest in Zest Air but nothing has been finalized.

Aside from Cebu Pacific, other airlines are reportedly taking a look at possibly investing into Zest Air are AirAsia Bhd. and Philippine Airlines.

But AirAsia president Maan Hontiveros said, in a chance interview at the Civil Aeronautics Board’s 65th anniversary yesterday, that AirAsia has “nothing to say” [on any possible Zest Air buy-in].

“I haven’t gotten such report. We haven’t done anything. We have nothing to say. I have no comment about the issue. It’s better to ask Zest Air,” she said.

For his part, Cebu Pacific (CEB) president Lance Gokongwei said the Gokongwei-controlled airline will “consider any opportunity” but stressed the airline is not involved in any current discussions.

“We would look at any opportunity if it makes sense with the company and our shareholders. We are not in current discussions with Zest Air,” said Gokongwei.

When he was informed about the statement of Cebu Pacific posted at the stock exchange yesterday Gokongwei said, “This reflects the corporate position of the airline.”

When asked if consolidation in the aviation industry was inevitable amid rising fuel jet prices, Gokongwei took time to explain the situation being faced by the airlines.

“The airline industry is growing very quickly. At the same time, it is very difficult because the price of fuel has gone up tremendously. There’s intense competition given that there are six commercial carriers. But at the end, it’s beneficial to the consumers. That is what it’s all about. The government’s liberalization has created clear benefits to the consumer,” said Gokongwei.

As this developed, CEB said it is set to launch four domestic routes, effectively increasing connectivity within the Philippines.

CEB began thrice weekly Cebu to Coron (Busuanga) services on October 4, providing foreign and local tourists from Cebu and neighboring areas direct access to Coron.

Today, it will launch four times weekly services each from Davao to Butuan and to Dipolog, linking three trade and government centers in Mindanao with approximately hour-long flights.

CEB will also launch thrice weekly flights from Iloilo to Tacloban, kicking off the first of five routes the airline will launch from Iloilo in the second half of 2012. These new routes will utilize CEB’s ATR 72-500 airplanes.

“We are very pleased to expand our Philippine network, especially since these direct flights will boost travel, tourism and trade in different regions of the country. With its trademark low fares and seat sales, Cebu Pacific will continue to enable even more Juans to travel by air to reach their destinations,” said Candice Iyog, vice president for marketing and distribution.

Asia Pacific Passenger Traffic Grows By 6.7% In August 2012

Manila Bulletin
October 4, 2012

MANILA, Philippines — The Association of Asia Pacific Airlines (AAPA) has sustained an increase in international air passenger traffic in August 2012 in contrast to continued weakness in air freight markets.

Asia Pacific airlines carried an aggregate total of 18.5 million international passengers in August, a 6.8% increase compared to the same month last year, led by relatively strong demand for regional travel.

International passenger traffic, measured in revenue passenger kilometre (RPK) terms, grew more by 5.3%. Offered seat capacity expanded by 3.5%, resulting in a 1.4 percentage point increase in the average international passenger load factor to 80.3% for the month.

Air freight markets remain depressed, as a result of weakening consumer confidence in the major developed economies leading to a corresponding slowdown in exports from Asia.

International air cargo demand, as expressed in freight ton kilometre (FTK) terms, was 4.4% lower in August compared to the same month last year.

Combined with a 4.1% reduction in offered freight capacity, the average international air cargo load factor was almost unchanged, at 64.6%.

Commenting on the results, Mr. Andrew Herdman, AAPA director general said: “The overall trend in international air travel demand remains encouraging, as reflected in the 7.9% increase in the number of passengers carried by Asia Pacific based airlines during the first eight months of this year.”

“While the overall pace of global economic activity is clearly slowing, Asian economies have so far remained relatively resilient with domestic demand still supporting business and leisure related travel.”

“However, we are still seeing persistent weakness in air cargo markets, with Asian carriers posting a 4.4% decline in international air cargo demand during the first eight months of the year, with no sign of any upturn.”

“Notwithstanding the evident slowdown in the global economy, oil prices remain high, averaging US$112 per barrel so far this year, further pressuring airline margins and industry profitability,” Herdman added.

EASA To Amend Rules On Flight & Duty Time Limitations

Manila Bulletin
October 4, 2012
By Edu Lopez

MANILA, Philippines — The European Aviation Safety Agency (EASA) has proposed some changes in the current EU rules on flight and duty time limitations and rest requirements (FTL) for commercial air transport.

The proposed rules contain more than 30 safety improvements compared to current requirements and introduce new limitations to the way crews can be scheduled.

EASA said the proposed rules take full account of the fact that fatigue is one of the main factors affecting human performance and makes no provision for increased pilot flight hours.

On the contrary, allowed duty periods at night are reduced, rest for flights with time zone crossings is significantly increased, and new rules are introduced for limiting crew standby.

These FTL rules are the final step in a fully transparent rulemaking process, with unprecedented scientific input and public consultation. More than 50 scientific studies were analysed, while all concerned stakeholder groups including flight and cabin crew organizations, airlines and member-state representatives were consulted throughout the process.

Commenting on the proposed rules, EASA Executive Director, Patrick Goudou, said: “These harmonized flight crew duty time rules are based on scientific evidence, risk assessment and best practice. EASA proves once again its commitment to make no compromise with the safety of air passengers in Europe and throughout the world.”

The proposed rules would be finalized by the European Commission and must be approved by member-states, with Parliamentary scrutiny. The new rules are expected to be adopted into EU law after mid-2013 and fully implemented by the end of 2015.

Cebu Air confirms offer to look at Zest Airways

Business Mirror
October 4, 2012
By Lenie Lectura

CEBU AIR Inc. said on Tuesday it was offered to take a look at possibly acquiring Zest Airways Inc.

“Cebu Pacific has been approached to indicate its interest in this opportunity. However, any interest which the company may have at this point is at best indicative and non-binding. The company is presently not [conducting] any due diligence on Zest Air,” said the airline in a disclosure to the stock exchange.

Zest Air chairman Ambassador Donald Dee earlier said there are local and foreign carriers interested to invest in Zest Air but nothing has been finalized.

Aside from Cebu Pacific, other airlines are reportedly taking a look at possibly investing into Zest Air are AirAsia Bhd. and Philippine Airlines.

But AirAsia president Maan Hontiveros said, in a chance interview at the Civil Aeronautics Board’s 65th anniversary yesterday, that AirAsia has “nothing to say” [on any possible Zest Air buy-in].

“I haven’t gotten such report. We haven’t done anything. We have nothing to say. I have no comment about the issue. It’s better to ask Zest Air,” she said.

For his part, Cebu Pacific (CEB) president Lance Gokongwei said the Gokongwei-controlled airline will “consider any opportunity” but stressed the airline is not involved in any current discussions.

“We would look at any opportunity if it makes sense with the company and our shareholders. We are not in current discussions with Zest Air,” said Gokongwei.

When he was informed about the statement of Cebu Pacific posted at the stock exchange yesterday Gokongwei said, “This reflects the corporate position of the airline.”

When asked if consolidation in the aviation industry was inevitable amid rising fuel jet prices, Gokongwei took time to explain the situation being faced by the airlines.

“The airline industry is growing very quickly. At the same time, it is very difficult because the price of fuel has gone up tremendously. There’s intense competition given that there are six commercial carriers. But at the end, it’s beneficial to the consumers. That is what it’s all about. The government’s liberalization has created clear benefits to the consumer,” said Gokongwei.

As this developed, CEB said it is set to launch four domestic routes, effectively increasing connectivity within the Philippines.

CEB began thrice weekly Cebu to Coron (Busuanga) services on October 4, providing foreign and local tourists from Cebu and neighboring areas direct access to Coron.

Today, it will launch four times weekly services each from Davao to Butuan and to Dipolog, linking three trade and government centers in Mindanao with approximately hour-long flights.

CEB will also launch thrice weekly flights from Iloilo to Tacloban, kicking off the first of five routes the airline will launch from Iloilo in the second half of 2012. These new routes will utilize CEB’s ATR 72-500 airplanes.

“We are very pleased to expand our Philippine network, especially since these direct flights will boost travel, tourism and trade in different regions of the country. With its trademark low fares and seat sales, Cebu Pacific will continue to enable even more Juans to travel by air to reach their destinations,” said Candice Iyog, vice president for marketing and distribution.