Saturday, November 24, 2012

AirAsia Posts 3rd Quarter Profit

Manila Bulletin
November 24, 2012
By Chong Pooi Koon (Bloomberg)

AirAsia Bhd., the region's biggest discount carrier founded by Chief Executive Tony Fernandes, posted its third straight increase in quarterly profit as a surge in passenger numbers helped offset higher fuel costs.

Net income increased 3.6 percent to 157.8 million ringgit ($52 million) in the three months ended Sept. 30 from 152.3 million ringgit a year earlier, the Sepang, Malaysia-based carrier said in a statement yesterday. Revenue rose 15 percent to 1.24 billion ringgit.

The airline's main Malaysian unit carried 9 percent more passengers and expanded capacity 10 percent as the region's economic growth spurred travel demand. AirAsia group will take delivery of 11 more Airbus SAS A320s this quarter, it said.

"They are putting a lot of capacity into their fleet," said Ahmad Maghfur Usman, an analyst at OSK Holdings Bhd. in Kuala Lumpur. "That shows they are expecting demand to grow despite new competition in the market."

Shares of AirAsia fell 0.4 percent to 2.85 ringgit in Kuala Lumpur yesterday before the earnings were released. The stock has fallen 24 percent this year, compared with a 6 percent advance in the benchmark FTSE Bursa Malaysia KLCI Index.

Net operating profit in the quarter rose 18 percent to 205 million ringgit, the carrier said. The company had additional deferred tax charge of 96.9 million ringgit in the period.

AirAsia is facing more competition in its home market with Indonesia's PT Lion Mentari Airlines set to start low-cost flights in Malaysia next year. Asia's total air-travel may expand 6.4 percent a year through 2031 because of economic growth, according to Boeing Co.

"We will continue to launch more routes and add more frequencies to cater to the high demand," AirAsia chief Executive Officer Aireen Omar said in a separate statement.

The group, which currently has a fleet of 112 A320s, plans to take delivery of 266 more planes by 2026. AirAsia said it's also in talks to purchase 100 more aircraft to support the growth in Asia.

AirAsia will hedge fuel prices at the "opportune" time, Aireen said. Jet kerosene prices averaged $126.43 a barrel in Singapore trading in the period, compared with $125.76 a year earlier, according to data compiled by Bloomberg.

Wednesday, November 21, 2012

Aviation industry in a rut gives us a bad image

The Philippine Star
Introspective
November 21, 2012
By Tony Katigbak

It is a sad commentary on the state of our aviation industry when agencies in the United States and Europe claim that our Civil Aviation Authority of the Philippines as doing so poor a job, that it is necessary to classify our airport in the Category 2 status as given to us five years ago, because we did not comply with world safety standards. And then, back at the start of this year, the US Federal Aviation Administration (FAA) still found 23 “critical elements” that the CAAP has to address before we can be given a Category 1 ranking.

In 2007, the FAA conducted an International Aviation Safety Assessment on the Philippines and downgraded the country’s status to Category 2. This essentially means that the Philippines does not comply with world safety standards of the International Civil Aviation Organization (ICAO) and cannot expand its services into international airports, but must lease from other operators with Category 1 status. Then in 2009, ICAO conducted its own audit that resulted in more safety concern findings, strengthening the FAA results. It cited unmet issues on the implementation of air safety oversight, deficiencies in registration, and inadequate security systems. To add to the growing concern, in 2010, the European Union, following in the FAA’s lead also blacklisted the Philippines and banned Philippine carriers from flying to Europe.

Another visit is to be set by the US early next year to determine if we have adequately upgraded our airports enough to warrant a category upgrade. However, this seems like a long shot considering the amount of time left to implement so many more changes, and the turtle pace of our government aviation officials in moving towards improving the aviation image in our country and upgrading the prehistoric conditions of our airports and runways.

It seems to be an on-going nightmare when it comes to Philippine aviation. While many of our Asian neighbors, namely Hong Kong, Singapore, and South Korea, have invested billions of dollars to modernize their main international gateways, the international airport in the Philippines is in a sorry state, lacking in repair and innovations, another reason why the Philippines continues to get a bad rap.

Last year, a web blog that ranks global airports and is interactive with consumers and readers, branded the country’s Terminal 1 as the world’s worst facility. This is based on a non-official opinion, but rather the reviews of travelers and customers who have experienced the airport firsthand. They complained of poor facilities, uncomfortable seating, safety issues, and lack of cleanliness among others. And in the social media world in general, where complaints can move at the speed of light, people just continue to talk about our airport facilities, especially in comparison to airports they travel to around the world. In the same article that landed the Philippines as the worse airport, Hong Kong, Singapore, and Malaysia were ranked among the best.

Indeed, it is not just the passenger ranking that hurts the country’s aviation industry, but our current Category 2 ranking is continuing to plague the entire aviation industry in the country. And that’s not all, it has also given the Philippines a bad image as a hospitable destination for foreign business, investment, and travel and undermined the country’s position against its Asian neighbors.

What’s frustrating is that the new and more modern Terminal 3 was completed several years ago and is not being fully utilized because of contractual disputes and issues. It does not house any international carriers. At the same time, safety concerns continue to mount at our older Terminal 1 and 2. This is especially true for Terminal 1, which is the international hub in our country. Due to ongoing problems concerning their facilities, they have had to house several flights on too few operational runways. This results in aircraft having to wait in “traffic” while being cleared to land and can cause an average delay of 30-50 minutes, unnecessary fuel usage, and higher potential for air traffic accidents. Not to mention the delays caused here ripple throughout the entire day causing delays in departures and arrivals alike. Coupled with problems on radar issues and other safety concerns, just seems like a Herculean task to dig ourselves out of this rut.

Poor infrastructure, aging radar systems, and ancient technology all work together to cause problems at the airport including delays and passenger gridlock. These, along with other concerns, have sent international airlines heading for the hills. This year we lost our last and only direct flight to Europe as we bid farewell to Air France-KLM flights from Manila to Amsterdam and other European carriers left long ago.

Which brings us to the country’s current state. In many ways it’s a world of contradictions as the Department of Tourism has successfully launched and pushed its agenda of promoting the Philippines as the “more fun” to visit destination, while actually getting to the Philippines remains a headache. Airlines have even had to re-route to Clark and Subic on occasion due to airport problems. This is an ongoing concern and must be addressed if the country wants to reach its full potential as a tourist and business investment destination. More and more recognition are being given to the Philippines as social media and traditional media continue to push the “It’s more fun in the Philippines” slogan for the country, and I feel this would truly take off more if our airport once and for all, modernize its facilities, address the safety and technical issues and become a world class airport for global passengers.

It’s not an impossible idea, it just needs to be fully addressed by the right officials. Although Category 2 ranking is still in effect, the CAAP receive some positive reviews during a recent validation mission conducted by ICAO. Officials from CAAP claim that the exit interview, on the whole, was positive and was a step in the right direction. They claim that ICAO remains positive that remaining problems could be resolved in the very near future. While they have yet to come out with a final report, CAAP has expressed confidence that corrective measures would be in place for remaining concerns by February 2013.

I am hopeful but also pragmatic about these claims. While it is good to remain positive, we must also be thorough and hardworking to get back Category 1 status and uplift our aviation industry once again. It has been long, past five years, and while much deterioration has happened, it is not too late to turn things around. We just need the funding and the full cooperation of all agencies involved to achieve results. After all, isn’t it time we catch up with the rest of the world when it comes to aviation standards? If we can achieve this, it will truly be more fun in our country.

Tuesday, November 20, 2012

China’s Comac Wins C919 Orders

Manila Bulletin
November 20, 2012

Commercial Aircraft Corp. of China Ltd. announced 50 commitments for the C919, the nation’s first large passenger jet, as it tries to break Boeing Co. and Airbus SAS’s stranglehold on the global aircraft market.

The agreements include five firm orders and five options from General Electric Co., doubling the backlog of the US company’s leasing arm. Two domestic carriers, Hebei Aviation Group and JoyAir, also reached agreements for 20 planes each, according to a statement distributed at the Zhuhai airshow in China.

The accords boost Shanghai-based Comac’s backlog for the 168-seat C919 to as many as 380, with contracts from state-backed Chinese companies masking a shortage of overseas orders. Boeing and Airbus have won a combined total of about 2,500 orders for new planes announced in the past two years that compete with the C919.

“Comac has a long way to go,” said David Wei, an aerospace analyst with Shanghai Securities Co. “Most foreign airlines will wait for overseas certification before considering the aircraft.”

The planemaker reiterated today that it expects the C919 to make its first flight in 2014 with deliveries starting two years later. At the same time, it said its smaller ARJ21 may not enter service for another two years. The regional jet, which has won orders from overseas carriers, is already about five years late.

The plane has been delayed by issues including the weather and difficulties in certification, Comac’s Chief Financial Officer Tian Min told reporters, without elaboration.

“The ARJ21 is a non-plane,” Richard Aboulafia, vice president at industry research Teal Group, in Fairfax, Virginia, said before the show. “It will never enter service.”

Etihad, Air Seychelles HK Code-Sharing

Manila Bulletin
November 20, 2012

Etihad Airways, the national airline of the United Arab Emirates, will commence code-share services to Hong Kong in February, 2013 in partnership with Air Seychelles, subject to regulatory approval.

The three weekly return services between Abu Dhabi and Hong Kong will be operated by the airline’s equity and codeshare partner, Air Seychelles. The new codeshare expands Etihad Airways’ network in Greater China, following the launch of services to Beijing in March, 2008, to Chengdu in December, 2011, and Shanghai in March this year.

James Hogan, Etihad Airways President and Chief Executive Officer, said: “Hong Kong’s fast growing economy and booming middle class have brought a remarkable increase in the number of travellers in recent years. The new service connects two of the world’s leading international financial and tourism centres, a move we believe will stimulate the growth of commerce and trade between the UAE and China, the UAE’s second largest trading partner.”

The flight schedule will provide leisure and business passengers from Hong Kong with seamless connectivity through Etihad Airways’ hub in Abu Dhabi, to key destinations across the GCC and to key destinations in Europe including the United Kingdom, France, Germany and Ireland.

The schedule also allows two-way connectivity between Hong Kong and the Seychelles, supporting a booming tourism industry on the archipelago.

“With our 40 per cent equity stake in Air Seychelles, it makes strong commercial sense for us to work together on opportunities where cooperation is possible. The resulting synergies bring about significant efficiency benefits for both Etihad Airways and Air Seychelles,” Hogan added.

Air Seychelles will operate an A330-200 aircraft in a two-class configuration on the route, with 18 Pearl Business class and 236 Coral Economy class seats.

Etihad Cargo, a division of Etihad Airways, currently operates a three times weekly service from its hub at Abu Dhabi International Airport to Hong Kong.

Hawaiian Airlines Marks 83rd Anniversary

Manila Bulletin
November 20, 2012

Hawai‘i’s hometown airline and the pioneering carrier of the Pacific, Hawaiian Airlines marked its 83rd anniversary of continuous service in Hawai‘i.

“We take great pride in being ‘Hawai‘i’s airline’ and the distinguished place our company holds in aviation history is a tribute to our hard-working employees and loyal customers,” said Mark Dunkerley, Hawaiian’s president and CEO. “After 83 years, Hawaiian is becoming a global carrier, and one that remains comprehensively focused on Hawaii. As we continue building on this legacy of service to our islands, we owe a debt of gratitude to all those who have made this milestone possible.”

Hawai‘i’s introduction to the age of commercial air transportation began on November 11, 1929, when the inaugural flight of Inter-Island Airways (renamed Hawaiian Airlines in 1941) departed from John Rodgers Field (now Honolulu International Airport) bound for Hilo with thousands looking on.

The Sikorsky S-38 amphibian biplane, one of only two in the new fleet, was filled to capacity that day with eight passengers and two crewmembers. With a top cruising speed of 110 MPH, the inaugural flight took more than three hours to complete, which included a stopover on Maui. The first flight to Kaua‘i took place the next day and soon all the islands were receiving air service on a regular basis.

In 1930, its first full year of operations, the new airline carried more than 10,000 passengers – a total that Hawaiian today exceeds daily – and the growing company soon began adding newer, larger, and more aircraft and hiring more employees to improve its quality of service for Hawai‘i, a commitment that is ongoing.

Today, Hawaiian is the largest it has ever been with more flights to more destinations, more aircraft and more employees than at any other time in its history. The airline currently operates more than 200 flights daily serving 11 gateway cities in North America, six in Asia, two in the South Pacific, and one in Oceania with new services planned for Brisbane, Australia (November 27) and Auckland, New Zealand (March 13, 2013). Hawaiian has been providing nonstop service, four times weekly, between Manila and Honolulu since April 2008, and is the only US carrier offering nonstop service on the route.

Continued growth into new and existing markets outside Hawai‘i is planned. Dunkerley noted, “Our long term plan is focused on expansion into markets that have the greatest potential for growth in visits to Hawai‘i, and we look forward to bringing many more visitors to our islands in the months and years ahead as we continue to expand our operations and carry the Hawai‘i brand to more places.”

Philippine AirAsia Adds Flights From Clark To Taipei, HK, Singapore

Manila Bulletin
November 20, 2012
By Emmie V. Abadilla

For the Christmas holidays, Philippine AirAsia is adding more regional flights from Clark International Airport with new daily flights to Taipei, Singapore and an extra 3 times a week service to its daily flights to Hong Kong starting December 15.

AirAsia will be the only carrier operating daily scheduled services on Clark International Airport – Taipei route with flights departing at 12:05 p.m. and arriving at Taoyuan International Airport at 2 p.m.

Taipei is the low fare airline’s fifth and newest regional destination following Clark-Singapore which will commence on December 15 with daily flights departing at 6:10 a.m. and arriving Singapore Changi Airport Terminal 1 at 9:40  a.m.

To push the new routes, AirAsia offers one way promo fare of P888 for Clark-Taipei and P1,699 for Clark-Singapore. All promo fares are available for booking on AirAsia’s website www.airasia.com from 12-25 November 2012, and the travel period will be from December 15-September 30, 2013.

Aside from Taipei, Singapore and Hong Kong, Philippines’ AirAsia also flies daily to Kuala Lumpur, Kalibo (Boracay) and 4x a week or every Monday, Wednesday, Friday and Sunday to Davao.

Metro Manila passengers can also buy seats through AirAsia Travel & Service Centers (ATSC) located in SM North EDSA in Quezon City and in Mall of Asia in Pasay City.

Those in Pampanga and nearby provinces in Central Luzon can go to the ariline’s ATSC in Barangay Malabanias, Angeles City, Pampanga. Davao guests may visit our ATSC in Gaisano Mall.

Monday, November 19, 2012

Full flatbed seat installation complete on Delta’s 747-400 aircraft

The Philippine star
November 19, 2012

MANILA, Philippines - Delta Air Lines has completed the renovation of all 16 Boeing 747-400 aircraft to include full flatbed seats in the BusinessElite cabin and offering more personal space and individual in-seat entertainment throughout the Economy cabin.

Delta operates daily service between Manila and New York’s JFK airport via the Tokyo-Narita hub and 5X weekly service to Detroit via Nagoya using 747-400 aircraft. At the Narita hub, customers can connect to eight other gateways in addition to JFK.

Business elite

Each 747 has 48 BusinessElite full flatbed seats featuring direct aisle access for every seat, USB port and a personal LED reading lamp.  In addition, each seat comes with a 15.4-inch widescreen video monitor with instant access to more than 1,000 entertainment options — including more than 300 films, 88 hours of television programming, nearly 100 hours of premium programming from HBO and Showtime, 27 video games and more than 5,000 digital music tracks.

“Our best customers want a full flatbed seat with direct aisle access and the new BusinessElite configuration of our 747s provides them with an industry-leading experience as they fly across the globe,” said Jeff Bernier, managing director Asia Pacific.  “The days of having to step over a sleeping customer in the seat next to you are over.  These upgrades will make the 747 the premier aircraft in our international fleet and customers will immediately notice the improved experience.”

“We are pleased to deliver this news to our customers in the Philippines” said Steven Crowdey, general manager-Philippines, Australia, and Micronesia.  “The product enhancement is part of Delta’s $3 billion investment in improved global products, services, and airport facilities.”
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Economy comfort

Like all of Delta’s international fleet, the 747s feature the Economy Comfort product, which includes up to four additional inches of legroom for 35 full inches of seat pitch and 50 percent more recline. Delta’s 747 aircraft each have 42 Economy Comfort seats.

In addition to more leg room and recline, customers seated in Economy Comfort will enjoy priority boarding and complimentary spirits throughout the flight.  These benefits are in addition to Delta’s standard international Economy class amenities, including complimentary meals, beer, wine, entertainment, blankets and pillows.

Economy

Changes to the Economy cabin are immediately evident as Delta transitions to new seats, providing customers with additional knee clearance.  All seats feature a headrest with adjustable wings, height and tilt, USB power and an industry-leading nine-inch touchscreen featuring personal on-demand entertainment, including the same extensive library of entertainment choices as those offered in BusinessElite.

Flight schedule

Delta operates daily service to Japan using a 747-400 aircraft. DL 172 from Manila (MNL) to New York (JFK) via Tokyo (NRT) departs at 8 a.m., arriving at NRT at 1:15 p.m. and JFK at 1:45 p.m. the same day.

DL 173 departs JFK at 12:45 p.m., arrives at NRT at 4:50 p.m. the next day, then arrives in Manila at 10:30 p.m. that evening.

DL 630 from Manila to Detroit (DTW) via Nagoya (NGO) departs MNL at 6:05 a.m., arriving in NGO at 10:40 a.m. and DTW at 10:25 a.m.

DL 629 from Detroit to Manila departs DTW at 3:30 p.m., arrives at NGO at 7:05 p.m. and MNL at 12:05 a.m. plus one day.