Philippine Daily Inquirer
September 21, 2011
Recognizing the opportunity offered by social media in expanding customer reach, Airphil Express introduced a round-the-clock dedicated customer support service on popular social media sites Twitter and Facebook.
Airphil Express’ 24/7 social networking presence is in line with its customer-oriented policy, not just during flights but also in the crucial before-and-after sales.
The development of Airphil Express’ customer service feature is instructive of what it takes for a brand to be receptive to the pulse of consumers. When first launched in March this year, Airphil Express provided social media customer support during office hours from 9 a.m. to 5 p.m.
Less than three months later, the servicing period was extended until 10 p.m. initially on weekdays and, later, even on weekends, which more than doubled the incoming number of comments from Twitter and Facebook users. Noting that messages asking for updates about flights especially during the rainy season were being posted in the wee hours, the airline pushed for the August launch of its “any time of the day, any day of the week” customer assistance to provide an almost real-time responses, just less than six months since the airline started the feature.
Wednesday, September 21, 2011
Saturday, September 17, 2011
Qantas Airways to target China travelers with 5 separate airlines
Manila Bulletin
September 17, 2011
MANILA, Philippines — Qantas Airways Ltd., seeking to revive unprofitable international operations, is counting on five different airline units to win travelers in China, a country 60 times bigger than its home market of Australia.
The company is forming a premium carrier in Southeast Asia and a budget venture in Japan that will give its bases closer to China, Chief Executive Officer Alan Joyce, 45, said in an interview in Sydney Friday. The two new airlines, which begin flights next year, will add to Qantas’s existing operations in Vietnam, Singapore, and Australia.
“There is a huge opportunity for Qantas within the Asian markets,” Joyce said. Having premium and low-cost units serving China and the rest of the region is “critical,” he said.
Winning sales in the world’s most populous country is central to Joyce’s plans to turn around overseas operations now losing about A$200 million ($207 million) a year because of competition from Middle East carriers on European routes. Delta Air Lines Inc. and American Airlines also added flights to China, where international air travel may grow 11 percent a year through 2014, according to the International Air Transport Association.
“I really think it is hard to overestimate China’s potential,” said Peter Harbison, chairman of the Sydney-based CAPA Center for Aviation, an industry adviser. The country’s size and rising intra-Asia trade provide “unbelievable upside internationally,” he said.
Sydney-based Qantas, Australia’s largest airline, will order as many as 110 Airbus SAS A320s, including 78 of the revamped neo version, to support the new Southeast Asia premium carrier and the Japan budget venture. It announced the new international airlines last month alongside plans to pare flights to Europe and shed 1,000 jobs in Australia.
Qantas’s low-cost budget arm Jetstar has led the company’s growth in China by offering flights to eight cities from its hub in Singapore. The budget carrier’s Vietnam unit also plans to add China flights, Joyce said. The main Qantas airline flies to Shanghai and Hong Kong from Australia.
Chinese services now represent more than 10 percent of Qantas’s international revenue, compared with “low single digits” five years ago, Joyce said. The Dublin-born CEO founded Jetstar in 2004, four years after joining Qantas. He previously had stints at Aer Lingus Group Plc and Ansett, which was Australia’s No. 2 carrier before collapsing 10 years ago.
September 17, 2011
MANILA, Philippines — Qantas Airways Ltd., seeking to revive unprofitable international operations, is counting on five different airline units to win travelers in China, a country 60 times bigger than its home market of Australia.
The company is forming a premium carrier in Southeast Asia and a budget venture in Japan that will give its bases closer to China, Chief Executive Officer Alan Joyce, 45, said in an interview in Sydney Friday. The two new airlines, which begin flights next year, will add to Qantas’s existing operations in Vietnam, Singapore, and Australia.
“There is a huge opportunity for Qantas within the Asian markets,” Joyce said. Having premium and low-cost units serving China and the rest of the region is “critical,” he said.
Winning sales in the world’s most populous country is central to Joyce’s plans to turn around overseas operations now losing about A$200 million ($207 million) a year because of competition from Middle East carriers on European routes. Delta Air Lines Inc. and American Airlines also added flights to China, where international air travel may grow 11 percent a year through 2014, according to the International Air Transport Association.
“I really think it is hard to overestimate China’s potential,” said Peter Harbison, chairman of the Sydney-based CAPA Center for Aviation, an industry adviser. The country’s size and rising intra-Asia trade provide “unbelievable upside internationally,” he said.
Sydney-based Qantas, Australia’s largest airline, will order as many as 110 Airbus SAS A320s, including 78 of the revamped neo version, to support the new Southeast Asia premium carrier and the Japan budget venture. It announced the new international airlines last month alongside plans to pare flights to Europe and shed 1,000 jobs in Australia.
Qantas’s low-cost budget arm Jetstar has led the company’s growth in China by offering flights to eight cities from its hub in Singapore. The budget carrier’s Vietnam unit also plans to add China flights, Joyce said. The main Qantas airline flies to Shanghai and Hong Kong from Australia.
Chinese services now represent more than 10 percent of Qantas’s international revenue, compared with “low single digits” five years ago, Joyce said. The Dublin-born CEO founded Jetstar in 2004, four years after joining Qantas. He previously had stints at Aer Lingus Group Plc and Ansett, which was Australia’s No. 2 carrier before collapsing 10 years ago.
Monday, September 12, 2011
9/11 made Philippine airlines more efficient, cost-effective
Philippine Daily Inquirer
September 12, 2011
MANILA, Philippines—Exactly a decade after the country woke up to the new realities of the post-9/11 world, the hard-hit local airline industry claimed it had already recovered from the massive adverse effects of that fateful September 11 event.
According to airline executives, carriers like Philippine Airlines and Cebu Pacific have emerged stronger in the 10 years since the day that the landscape of air travel was changed forever.
But there is no denying the fact that the effects of the terror attacks on the United States continue to be felt to this day even by Filipino travelers embarking on the shortest of trips.
“The most obvious change for the industry is that it has become more expensive for everyone,” said Philippine Airlines president and COO Jaime Bautista.
In the wake of the 9/11 attacks, the international aviation industry was faced with the need to implement a major overhaul of security procedures—from installing bulletproof cockpit doors secured by electronic locks to acquiring more x-ray machines and hiring more people to man them.
According to Bautista, the impact on PAL was estimated to have cost an additional $20 million a year over the last decade. Some of these costs were borne by the passengers, while the rest had to be absorbed by the airline.
“We were able to pass on maybe around $10 million to our passengers through additional fees, but the rest we had to absorb,” he said.
The “additional costs” included higher insurance premiums that airlines had to pay for their aircraft, passengers and “third party liabilities” that could arise out of any terrorist-induced event.
“There was even a time when airlines were asking for governments to issue guarantees to insurance firms who refused to insure aircraft after 9/11,” Bautista said.
To help cushion the blow of the higher fees to passengers—at least psychologically—Bautista said airlines had to resort to the practice of “unbundling” where airline tickets would give a detailed breakdown of every single expense for clients to see.
The practice of unbundling also helped PAL save on the commissions it paid to travel agents, who would get paid based only on their airfare and not on other fees like insurance and fuel surcharges.
Cebu Pacific vice president for marketing Candice Iyog said the country’s largest budget carrier was now unbundling its fees and charges as a common practice.
“When you book on Cebu Pacific nowadays, it is automatically [set] for zero bags. But you have the option to buy baggage allowance,” Ms. Iyog said.
“If anything, we have become more efficient over the last few years,” she added.
However, for a carrier like PAL, it had to make some investments for things that would normally be shouldered by the government, such as equipment for security.
Additional costs notwithstanding, both executives from PAL and Cebu Pacific agree that 9/11 helped the industry become more efficient and cost effective—traits that helped them survive in the face of high fuel prices.
“There are positives and negatives after 9/11,” Bautista said. “But because of it, we are better prepared for the challenges.”
September 12, 2011
MANILA, Philippines—Exactly a decade after the country woke up to the new realities of the post-9/11 world, the hard-hit local airline industry claimed it had already recovered from the massive adverse effects of that fateful September 11 event.
According to airline executives, carriers like Philippine Airlines and Cebu Pacific have emerged stronger in the 10 years since the day that the landscape of air travel was changed forever.
But there is no denying the fact that the effects of the terror attacks on the United States continue to be felt to this day even by Filipino travelers embarking on the shortest of trips.
“The most obvious change for the industry is that it has become more expensive for everyone,” said Philippine Airlines president and COO Jaime Bautista.
In the wake of the 9/11 attacks, the international aviation industry was faced with the need to implement a major overhaul of security procedures—from installing bulletproof cockpit doors secured by electronic locks to acquiring more x-ray machines and hiring more people to man them.
According to Bautista, the impact on PAL was estimated to have cost an additional $20 million a year over the last decade. Some of these costs were borne by the passengers, while the rest had to be absorbed by the airline.
“We were able to pass on maybe around $10 million to our passengers through additional fees, but the rest we had to absorb,” he said.
The “additional costs” included higher insurance premiums that airlines had to pay for their aircraft, passengers and “third party liabilities” that could arise out of any terrorist-induced event.
“There was even a time when airlines were asking for governments to issue guarantees to insurance firms who refused to insure aircraft after 9/11,” Bautista said.
To help cushion the blow of the higher fees to passengers—at least psychologically—Bautista said airlines had to resort to the practice of “unbundling” where airline tickets would give a detailed breakdown of every single expense for clients to see.
The practice of unbundling also helped PAL save on the commissions it paid to travel agents, who would get paid based only on their airfare and not on other fees like insurance and fuel surcharges.
Cebu Pacific vice president for marketing Candice Iyog said the country’s largest budget carrier was now unbundling its fees and charges as a common practice.
“When you book on Cebu Pacific nowadays, it is automatically [set] for zero bags. But you have the option to buy baggage allowance,” Ms. Iyog said.
“If anything, we have become more efficient over the last few years,” she added.
However, for a carrier like PAL, it had to make some investments for things that would normally be shouldered by the government, such as equipment for security.
Additional costs notwithstanding, both executives from PAL and Cebu Pacific agree that 9/11 helped the industry become more efficient and cost effective—traits that helped them survive in the face of high fuel prices.
“There are positives and negatives after 9/11,” Bautista said. “But because of it, we are better prepared for the challenges.”
Thursday, September 1, 2011
Airphil Express flies Manila-Tacloban
Manila Bulletin
September 1, 2011
MANILA, Philippines — Airphil Express recently opened a new domestic route – Manila-Tacloban - which is expected to generate tourist interest in a culturally rich and nature abundant destination.
According to Alfredo Herrera, Senior Vice President for Marketing and Sales, the Manila-Tacloban opening flight achieved “100% load factor,” which means that every seat was occupied. The flight from Tacloban to Manila was likewise well received.
Despite having only one flight daily from Manila to Tacloban and vice versa, Herrera confirms that passengers’ traffic is building up since its inaugural flight last July 21. By October 2011, the company expects to improve its flight schedule to twice daily.
Tacloban in Eastern Visayas is home to nationally important locations such as the site of the Leyte Landing that represents a watershed episode not just in the Philippines but in world history. There is also the San Juanico Bridge, the longest in the country that spans between Leyte and Samar, and underneath it where adventurers can engage in kayaking. Those looking to experience Tacloban in a more physically charged way can engage in activities like cave exploring, mountain climbing, dipping in waterfalls, or skimboarding and surfing. Dining by the sea is a rare treat for work-weary urbanites who will enjoy relaxing in local cafés and restaurant-hopping to feast on freshly caught seafood.
“It’s about time that Filipinos got to know another special destination in the Visayas because the area is really a delight to explore. We want Filipinos to appreciate Tacloban for all the good reasons already known about the place, and the other possibilities that it can offer travelers who want to go on an adventure vacation,” Herrera says.
The new route is part of the company’s operation expansion and in promoting Airphil Express in the country as a Low Cost Carrier (LCC) therefore dominating and giving the airline market choices of air transportation that give value for money.
Frequent domestic travel is encouraged by Airphil Express’ affordable airfare deals and is in line with the thrust of the Department of Tourism. With the Manila-Tacloban route, the airline is expected to further enhance its market share in the Visayas region and
September 1, 2011
MANILA, Philippines — Airphil Express recently opened a new domestic route – Manila-Tacloban - which is expected to generate tourist interest in a culturally rich and nature abundant destination.
According to Alfredo Herrera, Senior Vice President for Marketing and Sales, the Manila-Tacloban opening flight achieved “100% load factor,” which means that every seat was occupied. The flight from Tacloban to Manila was likewise well received.
Despite having only one flight daily from Manila to Tacloban and vice versa, Herrera confirms that passengers’ traffic is building up since its inaugural flight last July 21. By October 2011, the company expects to improve its flight schedule to twice daily.
Tacloban in Eastern Visayas is home to nationally important locations such as the site of the Leyte Landing that represents a watershed episode not just in the Philippines but in world history. There is also the San Juanico Bridge, the longest in the country that spans between Leyte and Samar, and underneath it where adventurers can engage in kayaking. Those looking to experience Tacloban in a more physically charged way can engage in activities like cave exploring, mountain climbing, dipping in waterfalls, or skimboarding and surfing. Dining by the sea is a rare treat for work-weary urbanites who will enjoy relaxing in local cafés and restaurant-hopping to feast on freshly caught seafood.
“It’s about time that Filipinos got to know another special destination in the Visayas because the area is really a delight to explore. We want Filipinos to appreciate Tacloban for all the good reasons already known about the place, and the other possibilities that it can offer travelers who want to go on an adventure vacation,” Herrera says.
The new route is part of the company’s operation expansion and in promoting Airphil Express in the country as a Low Cost Carrier (LCC) therefore dominating and giving the airline market choices of air transportation that give value for money.
Frequent domestic travel is encouraged by Airphil Express’ affordable airfare deals and is in line with the thrust of the Department of Tourism. With the Manila-Tacloban route, the airline is expected to further enhance its market share in the Visayas region and
Wednesday, August 24, 2011
Airphil gets new Airbus
Philippine Daily Inquirer
August 24, 2011
Airphil Express recently got itself a new 180-seater Airbus A320, increasing its fleet of this aircraft to seven.
The new Airbus A320 recently taxied into the Ninoy Aquino International airport from Toulouse, France, with the airline’s own pilots in command.
The additional aircraft will enable the airline to bring more customers to more destinations in a shorter time at an affordable price, said Alfredo Herrera, AirPhil SVP for marketing and sales.
“We aim to play a dominant role in the industry by bringing more tourists around the country while beefing up our presence in the region,” Herrera said.
Airphil Express has mapped out a $250-million expansion plan and is scheduled to purchase two more A320 units later in the year.
Apart from the seven Airbus A320, AirPhil Express also has three Q300s and five Q400.
August 24, 2011
Airphil Express recently got itself a new 180-seater Airbus A320, increasing its fleet of this aircraft to seven.
The new Airbus A320 recently taxied into the Ninoy Aquino International airport from Toulouse, France, with the airline’s own pilots in command.
The additional aircraft will enable the airline to bring more customers to more destinations in a shorter time at an affordable price, said Alfredo Herrera, AirPhil SVP for marketing and sales.
“We aim to play a dominant role in the industry by bringing more tourists around the country while beefing up our presence in the region,” Herrera said.
Airphil Express has mapped out a $250-million expansion plan and is scheduled to purchase two more A320 units later in the year.
Apart from the seven Airbus A320, AirPhil Express also has three Q300s and five Q400.
Friday, August 19, 2011
Cathay Pacific beefs up fleet with 12 new Boeing aircraft
Manila Bulletin
August 19, 2011
MANILA, Philippines — Cathay Pacific Airways is continuing to make significant investments to modernize and grow its fleet with an agreement with Boeing Company to purchase four Boeing 777-300ER passenger aircraft and eight Boeing 777-200 Freighters.
The 12 new aircraft have a list price of about HK$25.6 billion but will be acquired at a considerable discount, as is the usual practice in such transactions.
The aircraft are expected to be delivered to the airline between 2013 and 2016 and will be powered by General Electric GE90 engines.
Cathay Pacific already operates 22 Boeing 777-300ERs on its key long-haul routes, and with the latest purchase will have another 28 on order for delivery up to 2015.
The airline plans to retire the older aircraft in its fleet, including 21 Boeing 747-400s and 13 Airbus A340-300s, before the end of the decade as it progressively takes delivery of new-generation aircraft that will provide much greater fuel and operating cost efficiencies.
The Boeing 777-200F is a new aircraft type for Cathay Pacific and will be used to grow the freighter fleet and at the same time replace older, less fuel-efficient Boeing 747-400BCF Converted Freighters. For a typical 3,000 nautical mile trip, the 777-200F will burn 15% and 24% less fuel per payload ton than the 747-400F and 747-400BCF respectively.
The new aircraft, which can fly 4,900 nautical miles with a full payload of 102 tons, will primarily be used on regional and European routes.
The airline is also taking delivery of 10 new Boeing 747-8 Freighters, with the first two now scheduled to arrive in late September and another three being delivered by the end of 2011. The 747-8s, with a payload of nearly 130 tonnes, will be used almost exclusively on routes between Hong Kong and North America.
Cathay Pacific currently has 21 wide-bodied freighters in its fleet, but two Boeing 747-400BCFs will be sold to the airline’s cargo joint venture with Air China, while one or two more will be dry-leased to all-cargo subsidiary Air Hong Kong. Following the arrival of the new purchases and the departure of the BCFs, Cathay Pacific’s freighter fleet will number up to 35 aircraft by 2016.
With the latest purchases, Cathay Pacific now has a total of 97 new aircraft, including 79 wide-body passenger and 18 freighter aircraft, on its books for delivery up to 2019. The value of these aircraft at list prices is almost HK$200 billion. These aircraft on firm order include: 28 Boeing 777-300ERs, 19 Airbus A330s, 32 Airbus A350-900s, 10 Boeing 747-8Fs and eight Boeing 777-200Fs.
August 19, 2011
MANILA, Philippines — Cathay Pacific Airways is continuing to make significant investments to modernize and grow its fleet with an agreement with Boeing Company to purchase four Boeing 777-300ER passenger aircraft and eight Boeing 777-200 Freighters.
The 12 new aircraft have a list price of about HK$25.6 billion but will be acquired at a considerable discount, as is the usual practice in such transactions.
The aircraft are expected to be delivered to the airline between 2013 and 2016 and will be powered by General Electric GE90 engines.
Cathay Pacific already operates 22 Boeing 777-300ERs on its key long-haul routes, and with the latest purchase will have another 28 on order for delivery up to 2015.
The airline plans to retire the older aircraft in its fleet, including 21 Boeing 747-400s and 13 Airbus A340-300s, before the end of the decade as it progressively takes delivery of new-generation aircraft that will provide much greater fuel and operating cost efficiencies.
The Boeing 777-200F is a new aircraft type for Cathay Pacific and will be used to grow the freighter fleet and at the same time replace older, less fuel-efficient Boeing 747-400BCF Converted Freighters. For a typical 3,000 nautical mile trip, the 777-200F will burn 15% and 24% less fuel per payload ton than the 747-400F and 747-400BCF respectively.
The new aircraft, which can fly 4,900 nautical miles with a full payload of 102 tons, will primarily be used on regional and European routes.
The airline is also taking delivery of 10 new Boeing 747-8 Freighters, with the first two now scheduled to arrive in late September and another three being delivered by the end of 2011. The 747-8s, with a payload of nearly 130 tonnes, will be used almost exclusively on routes between Hong Kong and North America.
Cathay Pacific currently has 21 wide-bodied freighters in its fleet, but two Boeing 747-400BCFs will be sold to the airline’s cargo joint venture with Air China, while one or two more will be dry-leased to all-cargo subsidiary Air Hong Kong. Following the arrival of the new purchases and the departure of the BCFs, Cathay Pacific’s freighter fleet will number up to 35 aircraft by 2016.
With the latest purchases, Cathay Pacific now has a total of 97 new aircraft, including 79 wide-body passenger and 18 freighter aircraft, on its books for delivery up to 2019. The value of these aircraft at list prices is almost HK$200 billion. These aircraft on firm order include: 28 Boeing 777-300ERs, 19 Airbus A330s, 32 Airbus A350-900s, 10 Boeing 747-8Fs and eight Boeing 777-200Fs.
Thursday, August 18, 2011
Qantas establishing two Asia airliness
Manila Bulletin
August 18, 2011
SYDNEY (Reuters) – Australia's Qantas Airways is setting up two new airlines in Asia and ordering $9 billion of new Airbus aircraft as part of a do-or-die makeover to salvage its loss-making international business.
Qantas will also cut 1,000 jobs in Australia as it shifts its focus to the world's fastest-growing aviation market, triggering threats by unions to block the move and a government pledge to scrutinize the plans.
Qantas, which has been reviewing its offshore operations to cut costs and unprofitable routes, said it will launch a new, premium Asian airline and a Japanese budget carrier, the latter jointly with Japan Airlines and Mitsubishi Corp.
The new airlines will fly Airbus A320 jets, cementing their reputation as the plane of choice on regional networks over archrival Boeing Co . Qantas plans to acquire up to 110 of them, worth more than $9.4 billion at list prices.
As Qantas rebases its loss-making international operations in Asia, it also plans to give up some of its long-haul routes and retire older planes as well as cut jobs.
''Right now 82 out of every 100 people flying out of Australia are choosing to fly with an airline other than Qantas, not including Jetstar,'' the airline's Irish-born chief executive, Alan Joyce, told a news conference.
Joyce has cut costs and jobs since taking the helm at Qantas in 2008, with growth increasingly focused on the budget offshoot Jetstar, which he ran before becoming chief executive.
''To do nothing, or tinker around the edges, would only guarantee the end of Qantas International in our home Australian market. That would be a tragedy,'' he said, adding that the international operation's cost base was around 20 percent higher than its major rivals.
Joyce said the new premium airline was expected to be launched next year with an initial fleet size of 11 A320s.
August 18, 2011
SYDNEY (Reuters) – Australia's Qantas Airways is setting up two new airlines in Asia and ordering $9 billion of new Airbus aircraft as part of a do-or-die makeover to salvage its loss-making international business.
Qantas will also cut 1,000 jobs in Australia as it shifts its focus to the world's fastest-growing aviation market, triggering threats by unions to block the move and a government pledge to scrutinize the plans.
Qantas, which has been reviewing its offshore operations to cut costs and unprofitable routes, said it will launch a new, premium Asian airline and a Japanese budget carrier, the latter jointly with Japan Airlines and Mitsubishi Corp.
The new airlines will fly Airbus A320 jets, cementing their reputation as the plane of choice on regional networks over archrival Boeing Co . Qantas plans to acquire up to 110 of them, worth more than $9.4 billion at list prices.
As Qantas rebases its loss-making international operations in Asia, it also plans to give up some of its long-haul routes and retire older planes as well as cut jobs.
''Right now 82 out of every 100 people flying out of Australia are choosing to fly with an airline other than Qantas, not including Jetstar,'' the airline's Irish-born chief executive, Alan Joyce, told a news conference.
Joyce has cut costs and jobs since taking the helm at Qantas in 2008, with growth increasingly focused on the budget offshoot Jetstar, which he ran before becoming chief executive.
''To do nothing, or tinker around the edges, would only guarantee the end of Qantas International in our home Australian market. That would be a tragedy,'' he said, adding that the international operation's cost base was around 20 percent higher than its major rivals.
Joyce said the new premium airline was expected to be launched next year with an initial fleet size of 11 A320s.
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