Emirates to raise fares again
4 June 2008

Emirates is better positioned than most global airlines to ride out the impact of high oil prices but the Dubai-based airline is likely to further increase passenger fares, its president said yesterday.

Emirates' nine per cent fare increase on June 1 was based on an oil price of $110, some $25 below its recent record price.

"We will try and mitigate what we do by improving asset employment and revenue optimisation," said Tim Clark. "These are things behind the scenes that the consumer doesn't see and mitigates the need to pass on extra costs; but oil is now at $130. We have more to do to strip our costs before we go ahead with the next fare increase but I'm afraid it's going to be fairly imminent if the oil price stays where it is." Clark said a $10 rise in the oil price equated to extra annual costs of $500 million (Dh1.8bn) for his airline.

"Our profit last year was $1.5 billion, so you can do the math. We have to find ways of sorting this out quickly. Our growth is still there and the market will take higher fares," said Clark. He is, however, one of the few airline chief executives to offer an upbeat outlook for the aviation industry. "It's amazing how robust this market is and at the moment things are still looking pretty good.

"A high oil price gives us great difficulty but we have a robust network and our income streams our solid.

"We will get through it. We will tough it out," he said.

No Silver(jet) lining

May 30 2008

Another airline casualty as British business-class airline Silverjet became the latest victim of soaring fuel costs; the airline ceased operations on Thursday night suspending its flights after failing to secure a crucial funding. Siverjet was the last of the business class airlines; US based EOS and MaxJet have both ceased operations this year.

The airline, which operates from London's Luton Airport to New York and Dubai and is listed on London's Alternative Investment Market, was suspended from trading last week. The company had signed a funding deal with Middle Eastern fund Viceroy Holdings for $100.0 million and had sought an initial installment of $5.0 million, but the funds failed to materialize.

Silverjet says it is in talks with other investors, but with fuel prices continuing to head north the airline is unlikely to fly again.

Silverjet had a good reputation in its niche market. Emirates and British Airways will be happy to pick up the business class traffic.

Emirates increases India flights

26 May 2008

EK cabin crew will be rejoicing at this news. More long turnarounds.

Emirates will be increasing its frequencies to key Indian destinations effective July 2008. This is being made possible due to the recent bilateral enhancements allowed for UAE carriers to increase capacity to India from their respective hub airports. The additional operational highlights for EK in India are as follows:

Hyderabad - increased from 11 to 18 times a week. Effective 2 July EK526/527 gets 3 additional weekly frequencies on Monday, Wednesday and Sunday. Operated by A330-200.

Effective 3 July a new service is added on Thursday operated by B777-300 and Saturday by A330-200.

EK528 DEP DXB 1515 ARR HYD 2025
EK529 DEP HYD 2150 ARR DXB 2350

Effective 5 October 2 additional frequencies will be added on EK528/529 on Monday and Sunday operated by B777-200.

Delhi - increased from 14 to 18 times a week. From July, all 4 additional flights will be flown using a B 772. Effective 2 July an additional frequency is added on Wednesday on EK510/511 operated by B777-200.

Effective 4 July three additional fequencies are added on Monday, Friday and Sunday on EK510/511 operated by B777-200.

Bangalore - Effective 1 July two additional frequencies are added on Tuesday and Thursday on a new service EK564/565 operated by B777-200.

EK564 DEP DXB 0330 ARR BLR 0900
EK565 DEP BLR 1025 ARR DXB 1255

Effective 1 October five additional frequencies will be added on EK564/565 on Monday, Wednesday, Friday, Saturday and Sunday, all operated by B777-200.

There are likely to be some additions of capacity to other India destinations in coming weeks.

EK announces Durban in time for summer sun

5 May 2008

Emirates announced today that it will start a new daily service to Durban from 1 December 2008. The new service will be Emirates' third direct connection between Dubai and South Africa and is part of the build up of services before the 2010 World Cup of which Emirates is a major sponsor.

Durban lies in the heart of KwaZulu Natal, otherwise known as the Zulu Kingdom, and is a fascinating blend of British, Zulu and Indian history. Located on the east coast of South Africa Durban is a natural hub for trade with the Indian Ocean and Asia Pacific countries, boosting its status as Africa's largest port and the world's ninth busiest.

Durban is Emirates 16th passenger destination in Africa.

Emirates will serve Durban with an Airbus A330-200 aircraft offering 27 Business Class and 251 Economy Class seats. The Dubai-Durban flight will cover a distance of over 6,600 kms in 8 hours 40 minutes. The flight schedule is:

EK774 departs Dubai daily at 04:45 hours and arrives in Durban at 11:25 hours
EK775 departs Durban at 13:15 hours and arrives in Dubai at 23:45 hours
 

Emirates will move to new Jebel Ali airport

2 May 2008

Emirates Business 24/7 reports that Emirates plans to eventually shift its base to the Al Maktoum International airport coming up in Jebel Ali's Dubai World Central development. This makes sense given the scale of the investment in the new six runway, 125 million passenger airport.

My guess is that the existing Dubai airport would not be used for low cost or business traffic, which can also be housed at the new airport. The existing site is better being returned to commercial developers. However this could all be 5 to 10 years into the future.

Tim Clark, the airline's president. said "clearly, in the future, the whole of Emirates operations would be moved to the new airport in Jebel Ali. Emirates has to go to a hub that it has been heavily involved in the design of. It would not make much sense if we would do that and not go there."

"The government has got consultants working on the airport project at the moment, who are at a very advanced stage of the preparation of the master plan. By the end of the year, they will have a detailed plan of what the airport is going to look like, the final design and so on," he added.

Clark further said the two airports – Dubai International and Al Maktoum International – cannot co-exist.

"Personally, I do not see a place for two airports in Dubai. The new airport has to be built to the scale that Dubai needs. Today, we have real constraints in the current Dubai airport. We have carriers who want to come here and can't and carriers who want to come in at a particular time and they can't," Clark said.

"The Terminal 2 expansion for the regional carriers, on the other hand, is going at such a pace, it is really an airport under pressure," he added. "I am sure the government is taking cognizance of the fact whether there will be one or two airports. If there are two, there will be pros and cons. But I eventually see just one airport in Dubai."

So what about the investment being pumped into the new Terminal 3 and Concourse 2, which are especially being built for Emirates?

"Tough one, isn't it? You have got to look at the big picture. If the government is spending $30bn (Dh1.1trn) on a place such as Jebel Ali, then the reality is what you do with your existing airport structures would have to be faced," said Clark.

Meanwhile, Terminal 2 and Concourse 3 are both scheduled for opening in the fourth quarter of this year. "We should be able to move into Terminal 3 by Q4."

Emirates posts new record profits - Press release

30 April 2008

Eleven airline have already ceased operating in 2008; which means the 2007/8 financial results from Emirates for the year to 31 March 2008 are quite remarkable. The press release follows: the airline also declared a profit share of 14 weeks of base salary for staff. At the top end of staff expectations this should be suitably motivating!

"· Group profit up 54.1% to AED 5.3 billion (US$ 1.45 billion)
· Airline profit up 62.1% to AED 5 billion (US$ 1.37 billion)
· Dnata marks net profit of AED 305 million (US$ 83 million)
· 20th consecutive year of net profit for the airline and group
· Ownership to receive AED 1 billion (US$ 272.5 million) dividend
· Group’s estimated contribution to Dubai economy worth AED 47 billion (US$ 12.8 billion)

DUBAI, UAE, 30th April 2008 - The Emirates Group today reported its 20th consecutive year of net profit, notching a new profit record despite soaring oil prices and challenging business conditions in the second half of its 2007-08 fiscal year.

Group net profits increased 54.1 per cent to AED 5.3 billion (US$ 1.45 billion) for the financial year ended 31st March 2008, on revenues of AED 41.2 billion ($ 11.2 billion) compared to the previous year’s AED 31.1 billion ($ 8.5 billion). The Group net margin improved to 13.2 percent from 11.4 percent in the previous year.

The Group also retained a robust cash balance of AED 14.0 billion ($ 3.8 billion), compared with AED 12.9 billion ($ 3.5 billion) the previous year. Emirates will pay a dividend of AED 1 billion ($ 272.5 million)to its owner, the Government of Dubai. In 2007-08, the Group estimates a direct contribution of AED 22 billion ($ 6 billion), and another AED 25 billion ($ 6.8 billion) in indirect contribution to the UAE economy.

The 2007-08 Annual Report of the Emirates Group – comprising Emirates Airline, Dnata and subsidiary companies – was released in Dubai today at a news conference hosted by His Highness Sheikh Ahmed bin Saeed Al-Maktoum, Chairman and Chief Executive, Emirates Airline and Group.

The Group’s latest record performance reflects its success in growing customer demand through the strategic expansion of its business operations across six continents, supported by ongoing investments in the latest technology, products and customer service while keeping a tight rein on costs. This is illustrated by the 21.2 million passengers who flew with Emirates in the latest financial year, 3.7 million more than in the previous year; as well as the expansion of Dnata’s international ground handling operations to 17 airports in seven countries.

Sheikh Ahmed said: “It was another record year for the Group in spite of a challenging business climate, particularly in the second six months where the soaring cost of jet fuel made a big dent, although the impact was partly offset by other operating gains.

“Despite the long-term forecast of a decrease in the number of passengers travelling in First and Business class, I am happy to report that Emirates once again bucked the trend and boosted our seat factor in the forward cabins. Emirates is fortunate to be located in Dubai at the centre of the new Silk Road between East and West.
I believe the threat of an economic downturn will be offset for Emirates by the boom in the Middle East, especially the thriving travel industry of tourism and commerce.”

Fuel costs remained the top expenditure for the 4th year running, accounting for 30.6 per cent of total operating costs compared with 29.1 per cent the previous year and 27.2 per cent the year before.

The airline’s fuel risk management programme continued to reap rewards, saving the company AED 888 million ($242 million) in 2007-08, as WTI crude oil prices hovered around the US$ 90 per barrel mark in the second half of the fiscal year, 50 per cent more than US$ 60 per barrel in the same period the year before. In total, the fuel risk management has saved in excess of AED 3.7 billion ($ 1 billion) since the financial year 2000-01.

In his opening review in the 2007-08 Annual Report, Sheikh Ahmed highlighted some major milestones for the Group which included the move of most of the company’s Dubai-based staff to the new Emirates Group Headquarters; the launch of 11 new passenger and freighter destinations across the globe including Emirates’ first South American destination; and the massive 2007 Dubai Air Show aircraft order which has been described as the largest in civil aviation history worth US$ 34.9 billion at list prices.

He also noted that the continued ability to attract and retain the best talent for the company’s growing requirements will be one of the Group’s biggest challenges.

He said: “As we plan for the next decade, our biggest challenges will be to find more pilots, engineers, cabin crew and skilled staff across our various business units. Fortunately, Emirates has thus far been a strong employer brand, with more than three million unique visitors browsing job opportunities on our online recruitment website last year, from which we received over 288,000 applications for positions within the Group. Being based in Dubai also has its advantages as the city itself is already preparing to welcome 15 million visitors by 2010 and there is massive investment in infrastructure to serve and attract the increasing number of expatriates.”

He also reiterated the Emirates Group’s support for Dubai’s new low cost airline which has been established as a separate entity from the Emirates Group; and remarked on competition in the region, saying: “This is a big cake and admittedly, Emirates has a big slice of it, but there is plenty for the other airlines and we welcome them to the region.”

Sheikh Ahmed concluded: “The Group’s excellent performance this year is very satisfactory. As with previous years, we do not intend to rest on our laurels. We plan to secure our future growth by investing in the latest technology and products, so that we can continue to provide our customers with the high quality experience that they have come to expect from us.”

Emirates Airline’s revenues totalled AED 39.5 billion ($ 10.8 billion), an increase of 32.3 per cent from AED 29.8 billion ($ 8.1 billion) the previous year. Airline profits of AED 5 billion ($1.37 billion) marked a 62.1 per cent increase over 2006-07’s record profits of AED 3.1 billion ($844 million).

This result was due to improved yields and higher load factors on increased capacity; as well as other operating gains.

In 2007-08, the airline’s fleet expanded with 11 new Boeing 777s delivered, including Emirates’ first 777-200LR passenger aircraft. At the end of the financial year Emirates’ fleet reached 114 aircraft, including 10 freighters, boasting an average age of 67 months – one of the youngest commercial fleets in the skies.

The record aircraft order at the 2007 Dubai Air Show brings Emirates’ total order book, excluding options, to 182 aircraft at the end of March 2008, worth approximately US $58 billion.

During the year, the airline launched passenger services to seven new destinations - Newcastle, Venice, Sao Paulo, Ahmedabad, Toronto, Houston and Cape Town - and strengthened its existing network by adding services onto existing routes most notably to high-demand cities in China, India, Middle East and Africa.

Passenger seat factor increased to 79.8 per cent from 76.2 per cent the previous year. Traffic increased faster by 16.6 per cent to 14,739 million tonne kilometers as compared to the capacity increase of 13.7 per cent to 22,078 million tonne kilometers. While yield improved for the sixth consecutive year to 236 fils (64 US cents) per RTKM (Revenue Tonne Kilometre), up from 216 fils (59 US cents) in 2006-07; high jet fuel prices and rising costs drove breakeven load factor up to 62.7 per cent from 59.9 per cent last year.

Emirates continued to enhance its products in the air and on the ground, completing the refurbishment of four Boeing 777 classic aircraft with its new First, Business and Economy Class seats, as well as the latest ice inflight entertainment system with 1,000 channels on-demand.

On the ground, chauffeur drive services were expanded to operate in about 40 destinations - including the first offline city in Lugano, Switzerland, and in Venice where an innovative adaptation saw luxury powerboats used for the airport transfers. Emirates also continued to develop its dedicated lounge product around its network, launching its latest in Brisbane that offers stunning 360 degree views and is the first in Australia capable of boarding passengers directly from lounge to the aircraft, including to the upper deck of an A380.

Skywards, Emirates’ frequent flyer programme, welcomed its 3.4 millionth member over the course of the year. It also launched The Emirates High Street, an exclusive mail-order catalogue where Skywards Miles or credit card payment may be used to purchase unique items from a wide range of upmarket merchandise.

The airline’s internet and e-commerce gateway, www.emirates.com, was redesigned and launched across 76 different sites in 10 languages, offering improved online booking features and a more user-friendly experience.

Emirates SkyCargo performed well in what was a turbulent year for the air cargo industry, marking healthy revenue and tonnage carried despite high fuel prices, a U.S. slowdown from the sub-prime crisis, and bad weather affecting agricultural production in key areas. The division carried 1.3 million tonnes of cargo, an improvement of 10.9 per cent over the previous year’s 1.2 million tonnes and recorded a revenue increase of 20 per cent to AED 6.4 billion ($ 1.8 billion), up from AED 5.4 billion ($ 1.5 billion) in 2006-07.

Cargo revenue contributed 19 per cent to the airline’s total transport revenue, yet again one of the highest contributions of any airline in the world with a similar fleet. During the year, Emirates SkyCargo introduced freighter-only destinations to Djibouti, Hahn, Toledo and Zaragoza. At the end of the financial year, the freighter fleet was 10 aircraft – five leased and five owned. In all, Emirates SkyCargo carried freight in 114 aircraft, including bellyhold space in the passenger fleet, to 99 cities on six continents.

The Destination & Leisure Management division of Emirates Airline had another billion-dirham year, reaching sales of AED 1.4 billion ($382 million), bettering its 2006-07 performance by 22 per cent. Arabian Adventures and Emirates Holidays cared for a total of 397,000 tourists, an eight per cent increase. Arabian Adventures also played host to 297,000 visitors to Dubai over the year, up 13 per cent from 2006-07.

Emirates Hotels & Resorts expanded from its original Al Maha property into a multi-property hotel operation with International Central Reservations, a Corporate Sales and Business Development unit, global online distribution systems and support services for the design and development of its growing resort portfolio.

The Harbour Hotel and Residence in Dubai Marina opened its doors in November 2007, quickly earning a reputation for quality and increasing occupancy to 85 per cent within three months. Al Maha retained its position as one of the world’s most successful small luxury resorts, recording an average occupancy rate of 78 per cent.

Operations geared up for the opening in May 2008 of Emirates Hotels & Resorts’ luxury Green Lakes Serviced Apartments; and construction began on the conservation-based Wolgan Valley Resort & Spa in Australia’s Blue Mountains, scheduled to open end 2009; and Seychelles’ Cap Ternay Resort & Spa entered the detailed design phases for its late 2010 opening.

Dnata recorded strong revenue growth of 27.2 per cent to AED 2.6 billion ($718 million), compared with AED 2.1 billion ($565 million) the previous year. Profits reached AED 305 million ($83 million) despite a challenging year for airport and cargo operations with ongoing construction at Dubai airport and peak traffic congestion.

As Dnata moves into its 50th year of operation in 2008, it remains at the core of Dubai’s rapid traffic growth, handling 119,510 aircraft (up nine per cent), 35.6 million passengers (up 18.4 per cent), and 632,549 tonnes of cargo (up 18.2 per cent).

During 2007-08, Dnata continued to expand its international ground handling operations, investing in ground handling businesses in Switzerland, Australia and China, to bring its reach to 17 airports in seven countries. It opened FreightGate-5 in Dubai Airport Freezone to handle premium freight, and also saw operations at Dubai Terminal 2 increased with the opening of a 37,000 square foot extension that will serve 700 more flights per week and an annual throughput of approximately 5 million passengers.

Through investments in staff, technology and marketing, Dnata Travel Services continued to win new retail and corporate customers to report revenue growth of 26 per cent. It expanded its retail presence across the UAE with seven new outlets including a one-stop travel shop in Abu Dhabi, extended its successful Holiday Lounge concept to new locations across Dubai, signed new GSA representation contracts, and broadened its portfolio of travel products services with innovative new offerings such as Camel Polo by Gulf Ventures.

In all, the Emirates Group’s Facilities/Projects Management department commissioned and opened AED 2.12 billion ($578 million) worth of new buildings during 2007-08, including the impressive new Emirates Group Headquarters, the Engineering Centre, Dnata Cargo’s Free Zone Logistics Centre, The Harbour Hotel & Residence, and a new crew training college. Projects currently in progress total AED 3.9 billion ($1.1 billion), including new buildings in Dubai such as the Destination & Leisure Management Annexe, Emirates Call Centre and staff accommodation at Ras Al Khor, Al Majan and Media City.

As of 31st March 2008, the Group employed 35,286 staff, representing 145 different nationalities. During the year, the Group hired more than 7,000 people including some 2,000 cabin crew and 400 new flight deck crew."

EOS to cease operations

27 April 2008

There is yet another casualty in the aviation industry with all business class carrier - EOS Airlines - declaring bankruptcy and ceasing operations with effect from today. The business class-only airline is planning to operate its final flights between London's Stansted Airport and New York's Kennedy Airport today.

Chief Executive Officer Jack Williams said in a statement that the "challenging economic and credit environment" forced the company to file a voluntary petition for Chapter 11 bankruptcy.

The airline launched round-trip service for business travelers from New York to London in 2005. It was recently in talks to secure a $50m (£25m) cash injection in the hope of breaking even next year. This obviously fell through.

Media reported that a filing with America’s Department of Transportation shows that the airline lost $37m in the first nine months of last year on sales of $53m.

Since starting flights in October 2005, it had raised $212m from US investors, including Golden Gate Capital, Sutter Hill Ventures and Maveron, a venture-capital firm co-founded by Howard Schultz of Starbucks. According to the filing, the company had net assets of $97m at the end of September.

Silverjet, the British airline that is Eos’s main rival, has seen its shares slump in recent months. It said it had received approaches that could lead to a takeover bid. Failing a trade sale, Silverjet may be the next casualty.

EOS had been planning to expand operations to Dubai. Silverjet already flies to Dubai. Their failures are of course all good news for cash rich Emirates as it protects its premium business to the UK

Dubai LCC latest

20 April 2008

Dubai's new budget carrier is apparently going to start operations in early 2009 from the new Al Maktoum International Airport in Jebel Ali. This is particularly strange given that the airport is a building site at the moment with almost no road access. And the lost opportunity of feeding passengers from the LCC to Emirates makes the decision even stranger. This may change.

The airline will be supported by Emirates in its start up phase but will have separate ownership and will not be a part of the Emirates Group. Expect initial funding from Emirates and the Dubai government and then a partial IPO within a few years.

The airline will apparently seek routes that are not currently flown by Emirates. I suspect there will have to be some duplication if only to build up a critical mass of flights. The CEO designate has already said that the airline will open with as many new routes and new airplanes as possible. Expect the airline to take some of the single aisle fleet that was ordered by the leasing arm of Dubai Aerospace Enterprises at the Dubai airshow in November.

As for routes; there are opportunities into central Asia - Baku, Tashkent,and Ashkhabad; to Nepal; to Izmir and Ankara in Turkey. But there will need to be new flights to India and Pakistan to get the critical mass of passengers.

The Dubai LCC and the A380
19 March 2008

Although the Dubai LCC will start operations with 737s or A320s the A380 offers huge potential for carrying large numbers of people on short haul turnarounds.
Emirates has 58 A380s on order, or 30% of the entire global A380 orderbook. The carrier has previously indicated it could operate low cost services with A380 equipment. In Nov-07, Emirates President, Tim Clark, stated that, had the stretch version of the A380 been available today, “probably two-thirds” of the A380s the Dubai-based carrier had on order (or some 38 aircraft) would be for that model.

He indicated that Emirates (or now the LCC subsidiary) would configure the proposed A380-900 with around 750 seats on a typical service, although some of the aircraft could be configured with 1,000 seats for routes to countries such as Thailand and Saudi Arabia.

The airline is currently officially planning a higher density medium-haul configuration with 604 seats, although the A380-800 model is licensed to handle 853 in an all-economy layout.

The practical recognition of the potential of the A380 as a mass transport, low cost vehicle is sure to stimulate wider interest in the aircraft. Until now, its sales have not been spectacular; they were not helped by successive delivery delays. But as Singapore Airlines' first A380 landed in London this week, the tide may be turning.

The Emirates LCC move follows the success of Air Arabia, based in the neighbouring emirate of Sharjah, which has reported outstanding profitability since its launch and has recently established cross-border JVs in Morocco and Nepal to target the North Africa/Europe and Asian markets, respectively. Kuwait-based LCC, Jazeera Airlines, has also established a base in Dubai.

Dubai Airport is expected to overtake Singapore Changi this year, handling in excess of 40 million passengers. The emirate is developing a new airport at Jebel Ali that will ultimately become the biggest in the world, with capacity for 120 million passenger p/a. The Emirates LCC will become a key ingredient in making the Dubai world gateway vision a reality.

A new airline for Dubai

18 March 2008

Latest update:

New airline will start flying within one year
Lease or buy single aisle airplanes for the first 5 years - A320s or Boeing 737s
Will be managed by Emirates
Will feed to Emirates long haul network
Will be led by Emirates commercial operations director Ghaith al-Ghaith

How are new airlines formed in Dubai? Not off a business plan apparently. And not through raising financing from the usual private equity and iinvestment bank sources.

In Dubai things are done differently and today His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE has instructed, in his capacity as Ruler of Dubai, the competent authorities to set up a new airline company to cater for the growing passenger traffic from and to the UAE.

Shaikh Mohammad envisages the new aviation company as a bridge for love and interaction between the UAE and other sisterly and friendly countries.

While setting fares structure, the company will be taking the financial and living conditions of passengers into consideration.

There have long been rumours of Emirates establishing a low cost airline as part of the group and Shaikh Ahmad Bin Saeed Al Maktoum, head of Dubai Civil Aviation and Chairman of the Emirates Group, said Shaikh Mohammad's instruction will be put in place with immediate effect.

Services will be of low cost due to Shaikh Mohammad's keenness to enable low-income passengers to reunite with their families and relatives at home, said Shaikh Ahmad.

Shaikh Mohammad named Ghaith Saeed Al Ghaith (another Emirates executive) as CEO of the new, as yet un-named airline company.

I am happy to believe that the airline will create greater travel opportunities for the large South Asian community in Dubai but the real issue is is protecting Dubai from and Emirates from increasing competition from Sharjah based Air Arabia and Kuwait based Jazeera - which has established a mini hub in Dubai.

Don't be surprised to see an all economy A380 in the new airlines colours flying to the likes of Cairo, Mumbai and Delhi in the next few years. The focus for the airline will be turnaround flights to a maximum of four hours travel from Dubai.

Air Asia grows China network

14 March 2008

Air Asia will start Kuala Lumpur-Hong Kong flights on May 15, 2008 with fares starting from RM49.99/HK$99.

Direct flights to Haikou on Hainan Island will commence from May 22 with fares starting from RM29.99/CNY68.

Jazeera to the Maldives

10 November 2007

The Kuwait-and Dubai-based Jazeera Airways yesterday announced the launch of its non-stop service from Dubai to the Maldives.

Air Asia to open up Hong Kong routes

23 August 2007

The South China Morning Post reported today that Malaysian budget carrier AirAsia will launch three new daily services to Hong Kong. AirAsia's chief executive Tony Fernandes has said the carrier would launch new daily routes from Bangkok, Kuala Lumpur and Kota Kinabalu between December and January.

Fernandes added that the move was a long-held ambition for the airline, which entered the greater Chinese market with flights to Macau and Shenzhen, but had previously resisted because of Hong Kong's high landing prices. He said improved incentives from the airport had tipped the balance in favour of offering the new service, and hinted their may be more routes in the future.

A Hong Kong airport authority spokesman told AFP the move followed a new package announced last year to target small carriers, which sees a 75 percent rebate in landing charges during the first six months to new destinations and lower parking rates. The LCCs will not use airbridges but will bus passengers to the airplanes. Fernandes praised the discount and said one-way tickets to Bangkok would start at 300 Hong Kong dollars (38 US dollars), and 400 dollars to Kuala Lumpur.

Fernandes also told the Wall Street Journal that AirAsia was in talks with Airbus to buy a further 25 A320 jetliners, in a deal which could be worth 1.63 billion US dollars, to meet its expanding network's demands.

AirAsia earlier this month unveiled a new deal with Richard Branson's Virgin Airlines to develop AirAsia X, the long-haul budget carrier which hopes to build a network of long-haul flights across Asia, Europe and the Middle East.

Thai Air Asia increases flights

12 July 2007

Starting July 23, Thai Air Asia will increase flights from Bangkok to Phnom Penh will increase from once to two daily.

On Aug 1, flights to Surat Thani will increase from once to twice daily, while flights to Hanoi would increase from twice to thrice daily.

Thai AirAsia's domestic network covers Chiang Mai, Chiang Rai, Hat Yai, Krabi, Narathiwat, Phuket, Surat Thani, Ubon Ratchathani and Udon Thani.

Its international destinations include Phnom Penh, Hanoi, Yangon, Kuala Lumpur, Penang, Langkawi, Singapore, Xiamen, and Macau.

On 15 July, it will commence daily service from Bangkok to Shenzhen, making further inroads into the expanding Asian tourism market.

Plans are also underway for Thai AirAsia to offer new routes to China, including Kunming, Chengdu and Chongqing, probably later this year.

Air Arabia's AED2.5 billion IPO opens on March 18

13 March 2007

Air Arabia, the Middle East's first low-cost carrier, shared details of its upcoming initial public offering (IPO), scheduled to open on March 18, 2007. (Official Air Arabia Press Release)

Oasis to launch Vancouver flights in the summer

12 March 2007

Official Press Release from Oasis

Oasis Hong Kong Airlines Grows Fleet to Five Aircraft
Strong momentum underway to open up more destinations with popular Vancouver being next


Oasis Hong Kong Airlines has today finalised an agreement with ANA (All Nippon Airways Co., Ltd.) to purchase three additional Boeing 747-400s, as part of its planned fleet expansion in preparation for the launch of the airlineกฆs new Vancouver route in the second half of 2007. This will bring the Oasis fleet to five aircraft.

Steve Miller, Chief Executive Officer of Oasis Hong Kong Airlines, said, กงThe purchase of three Boeing 747-400s marked another significant milestone in our history, getting closer to our goal of acquiring up to five aircraft a year and eventually expanding our fleet to 25 aircraft by 2010. ANA is an airline known for its excellence, efficiency, reliability and dedication to safety, the very qualities that are at the core of Oasis. These aircraft have been maintained in top quality condition. We look forward to the addition of these aircraft which will allow us to bring our passengers to many exciting destinations around the world in future. The expanded fleet will also greatly enhance our cargo capacity and therefore our airfreight income. Our momentum is strong and weกฆre on track to achieving our business goals.กจ

Peter Shannon, Director of Engineering of Oasis Hong Kong Airlines, added, กงThe three aircraft are amongst the youngest Boeing 747-400s in the world. They were all previously owned and maintained by ANA and are in perfect condition. Deliveries are scheduled to begin from April 2007 and run through to the first quarter of 2008. I am sure passengers will enjoy their flights on these reliable and comfortable aircraft.กจ

Oasis is also pleased to announce commencement of scheduled air services to Vancouver, subject to government approval on 28 June 2007. Vancouver is a popular destination to Hong Kong people, enjoying high demand year round due to a high population of Hong Kong immigrants. And to prepare for the launch of Oasisกฆ second destination, the airline is also hiring 200 more cockpit and cabin crew members, soon bringing its crew size to over 400.

Ken Chad, Commercial Director of Oasis Hong Kong Airlines, commented, กงWe are delighted to have the opportunity to fly to Vancouver. This is a very strong point to point market, one of the strongest out of Hong kong. Itกฆs a market where there is substantially less reliance on feeder traffic. Consequently, it is currently our preferred next destination.กจ
 

Tiger expands Australian routes

1 March 2007

LOW-COST carrier Tiger Airways will start flying between Singapore and Perth this month with daily services to begin in May.

WA Tourism Minister Sheila McHale said the flights — which start from $S320 ($A265.80) return — would boost tourism.

"Each year, about 57,000 visitors from Singapore travel to WA and that should increase significantly as holidaymakers take advantage of Tiger's low prices," Ms McHale said. "This also complements the trade and marketing efforts we are making to grow the Asian market, particularly in China."

Tiger Airways — backed by Singapore Airlines — will start flying between Singapore and Perth on March 23.

Ms McHale said Tiger had planned four services a week but bookings had been so strong that daily services would start more than six months earlier than expected.

Tiger Airways has launched a pre-flight Seat Selection option for all flights on its Perth route. Passengers now have the option to pre-select their seats during the online booking process or via the call centre, for a small fee.

For Sin$5 (one way), passengers now have the option to select the seat of their choice. Of course with most other airlines there would be no cost!

Tiger Airways plans to roll out Tiger Seat Selector to its other Australian route to Darwin in March 2007.

Passengers who do not opt for Seat Selector will be allocated seats during the check-in process on a first-come-first-served basis.

More on TAA

22 January 2007

By 2012, Thai Air Asia plans to operate up to 320 flights a day through its Bangkok hub from 82 a day currently, while doubling the number of passengers per year to as many as nine million from a projected 4.5 million this year.

As part of AirAsia, Southeast Asia's largest no-frills carrier headquartered in Malaysia, the Thai airline also plans to raise its revenue to 12 billion baht in five years from about five billion baht now.

Thai AirAsia chief executive Tassapon Bijleveld has announced that the carrier will receive its first three A320 aircraft in the last quarter of this year. They are the first of 40 brand new A320 jetliners, costing more than US$2 billion together.

It is a major fleet upgrade for Thai AirAsia, which intends to phase out its fleet of 11 ageing and fuel-thirsty Boeing 737-300s over the next couple of years as it embraces the new generation of fuel-efficient planes that have greater capacity.

The new aircraft will minimise flight delays resulting from aircraft maintenance and offer greater comfort to passengers said the airline.

To support its 2007 growth plan, Thai AirAsia plans to have five additional jets, three A320s and two B737-300s (from Air Asia, each capable of carrying 148 passengers) this year.

The first A320 is due to start flying in October, with the second commencing flights in November and third in December. By 2010, Thai AirAsia will be operating with an all-A320 fleet.

With higher seat capacity, Thai AirAsia plans to step up frequencies on its existing domestic and regional routes, including Rangoon, Phnom Penh and Macau.

It also plans to introduce a number of new routes to China, including Kunming, Chengdu, Chongqing and Shenzhen, as soon as in the third quarter of this year. The company also wants to begin flying to Bali by October.

Thai AirAsia now operates more than 18 routes, both domestic and international, through Bangkok. Nok Air operates eight domestic routes through Suvarnabhumi and three other inter-provincial routes, with a total of 60 take-offs and landings each day by seven aircraft. One-Two-Go operates 14 domestic services daily with four 172-seat MD-82 planes.

With domestic routes stretched to the limit and the growth of a regional network, Thai AirAsia expects its proportion of domestic to regional flights to change to 30:70 from 50:50.

Thai Air Asia's 2007 plans

13 January 2007

While its founders continue to break new grounds with the start of long-haul operations to destinations like London, Thai AirAsia is expanding its wings to more destinations in China and penetrating into India.

Chief Executive Officer Tassapon Bijleveld said the three-year-old airline, which flew three million passengers in 2006, will focus on opening three to four routes in middle and small size cities in China this year before going into the untapped markets in India.

He said among the cities in China being considered are Kunming, Guangzhou and Shenzhen while in India, it hopes to fly to Chennai, Bangalore, Calcutta, Bodhgaya which is the spiritual home of Buddhists and several cities along the Indian border with Bangladesh and Myanmar.

AirAsia founder Datuk Tony Fernandes has launched Air Asia X which is under franchise from AirAsia, to operate long-haul flights to destinations in Asia, Australia and Europe starting July.

Tassapon, who worked with Warner Music Thailand before joining Thai AirAsia at its inception in 2004, said the China and Indian market would be accessible with the entry of new aircrafts, adding that it would have 40 Airbus within five years.

"All this destinations are within the range of our aircrafts. We have 11 aircraft in operational now and one for spare and we will be getting three more Airbus and two Boeing this year," he said in an interview here.

Citing China as a huge and untapped market, Tassapon said even smaller and middle size cities have population of more than 10 million with attractive tourism products and beautiful scenery along the Yangtze River.

At the moment, Thai AirAsia flies to Xiamen and Macau in China, besides other overseas destinations - Phnom Penh, Kota Kinabalu, Kuala Lumpur, Penang, Yangon, Singapore, Hanoi and Langkawi.

On destinations in the South East Asia, Tassapon said they would fly to Manila at the end of this year while other routes in the pipeline are Bali, Jakarta and Vientiane, as well as adding more frequencies to Yangon.

He said Thai AirAsia did well last year despite the stiff competition, especially in the domestic market where there are several low cost airlines, earning 3.4 billion baht in revenue compared about 2.3 billion in 2004.

"We achieved our target of flying three million passengers, with average of 80 percent load factor. But despite the increase in revenue, our profit is expected to drop due to high fuel price," he added.

On the domestic market, Tassapon said as they have covered all the major cities, future plans would focus on increasing frequencies as they strive to achieve a six million passenger target this year.

The airline currently flies domestic routes to Bangkok, Chiang Mai, Chiang Rai, Hat Yai, Krabi, Narathiwat, Phuket, Surat Thani, Ubon Ratchathani and Udon Thani.
 

Air Asia and Virgin to partner on low cost link to Europe

3 January 2007

Virgin Atlantic is in talks with a Malaysian budget airline over a potential global no-frills alliance that could offer cheap flights between the UK and Asia.
AirAsia, Malaysia’s leading low-cost airline, is keen to join forces with Sir Richard Branson’s Virgin to form a joint venture that would fly between Kuala Lumpur and London and Manchester, Sharjah in the United Arab Emirates and Amritsar in India. If a partnership goes ahead, it could mean the price of long-haul flights to Asia being slashed, with tickets starting from as little as £40.

Industry sources suggested that Virgin could take a minority interest in any such alliance, similar to that with Virgin Nigeria Airways.

A Virgin Atlantic spokesman said: “We are alert to the many opportunities for delivering even better customer service and value, and we talk to lots of people in the industry all the time. Evidently, there has been a growth in low-cost carriers in Asia following the success of the low-cost model in Europe.”

AirAsia’s chief executive, Tony Fernandes, who is a former managing director of Warner music in Malaysia, has said there was huge potential for a budget long-haul air service. The country’s national carrier, Malaysia Airlines, operates 18 times weekly to London, and charges around £700 for economy class and £2,600 for business class.
After cashing in his AOL Time Warner stock options, Fernandes bought AirAsia, which was on the brink of collapse, in 2001, for the token sum of one ringgit (14p), and assumed its £9mn debt. In just a year he had engineered a turnaround, launching new routes with fares from as little as 14p, massively undercutting Malaysia Airlines.

The company’s aircraft grew from two to 50. It operates flights throughout South-east Asia and China. In June, AirAsia posted profits of £18mn, and it expects passenger volume to hit 18mn this year.

A joint venture with Virgin would also offer flights to Hangzhou, near Shanghai, and Tianjin, near Beijing from as little as £14, according to a report in the Malaysian Star newspaper.

Budget airlines have experienced rapid growth in recent years as customers eschew package holidays for independent travel. A number of business class only carriers have also launched, offering cheaper flights than established airlines, including Silverjet, which is set to fly from Luton to Newark in the US from the end of this month.
Landing costs at Heathrow would be too expensive for a low-cost carrier, but the venture could operate out of Gatwick, which has become a hub for budget airlines. It could also use Luton, where Virgin already operates a rail link between the airport and central London.

Virgin carries around five million passengers a year, and flies to 27 destinations worldwide, including the United States, Hong Kong, South Africa and Australia. – The Independent

Air Asia backs Sri Lankan expansion

3 January 2006

A new Sri Lankan no-frills airline has brought in Malaysian budget carrier AirAsia on board as an investor and plans to launch operations from March 2007.

HolidayAir, which has been waiting in the wings for more than a year to launch mainly regional flights, will finally take off in March, its chief executive officer Arjun Ruzaik said recently.

He said the airline hoped to open its office at the Colombo International Airport next month and launch the first flight on March 10.

Initially it plans to fly to Cochin, Calicut, Trichy and Trivandrum in India, and within 24 months fly 16 to 20 routes in Asia and the Middle East, including Malaysia, Thailand and Singapore as well as the Maldives.

HolidayAir will have only one A320 aircraft, but within two years when the airline gets going to other destinations, it will have eight aircraft.

A consortium of local and foreign investors has come on board of the airline with a US$20 million investment.

"A consortium headed by Sri Lanka's Asia Capital will be investing locally, while there is a consortium of Malaysian investors and we have also tied up with a leading regional airline," said Ruzaik.

He declined to comment on the Malaysian investor or the regional airline concerned. But airline sources said that Malaysia's AirAsia headed by aviation dynamo Datuk Tony Fernandes has acquired a near 50 per cent stake in the company.

Three Sri Lankan companies, HolidayAir together with Deccan Air and Expo Air, were granted approval to fly to four destinations in India late last year by the Civil Aviation Authority (CAA), but the latter two dropped out of the race after a much publicised battle.

HolidayAir is expected to give Sri Lanka's national carrier, SriLankan Airlines, a run for its money with low-cost operations and much cheaper tickets.

Another new state-subsidised airline, Mihin Air, also due to start in the February/March period, will also eat into SriLankan's gradually eroding profitability.

Mihin Air is banking on the lucrative Middle East sector, where thousands of Sri Lankans fly every year to work, with cheaper tickets.
 

Tiger's Indian Plans

2 November 2006

Tiger Airlines is seeking to fly to five destinations in India and one in Sri Lanka after receiving approval from Singapore authorities, the budget carrier said today. Among the cities are exotic Goa on India's west coast, the commercial centre Kozhikode in the state of Kerala, Kolkata (Calcutta), Thiruvananthapuram, Kochi and Colombo in Sri Lanka.

"We have filed the necessary applications with the authorities in India and Sri Lanka and hope to progressively add the six new points to our network from next year," The Straits Times quoted chief executive Tony Davis as saying.

By the end of 2007, Tiger expects to have a fleet of 12 Airbus single-aisle planes and to fly to 21 points out of Singapore.
 

More flights to Borocay

11 October 2006

Asian Spirit, the alternative flag carrier, plans to increase next month by another three its daily frequency to Caticlan, the gateway to Boracay. This will bring to 19 flights to service the growing number of tourists in the resort haven.

According to Asian Spirit Executive Vice President Jack Po, the incremental flights, which will add-up to its existing 16 frequency, will even be faster, taking only 25 minutes to reach Caticlan from Manila.

Po expressed confidence the carrier’s 25-minute service cut-up the market share of its fierce rival Southeast Asian Airlines (Seair) that presently offers a 35-minute flight to the Caticlan.

Asian Spirit will be at an advantage because it will be using a British Aerospace (BAE) 146-100, normally an 80-seater, but reconfigured to 60 seats to enable it to take off and land in the short Caticlan runway, he explained.

Seaair is using a 32-passenger Dornier 328 turboprop for its Manila-Caticlan flights.

"The test flight was successful and went without any hitches," Po pointed out. BAE executives were in Manila last week to test the reconfigured jet.

At the same time, Po disclosed Asian Spirit will be expanding routes in Asia and Micronesia by offering flights to Macau, a former colony of Portugal, now annexed to Hongkong.

Also being worked out is a new route to Pohnpei, in the Federated States of Micronesia from Koror, Palau; and a flight between Cebu and Koror next year, a route currently being serviced by Continental Air Micronesia.

Asian Spirit is focusing on Filipinos as well as FilAmericans who are working and leaving in the Micronesia states.

Po believed that the carrier’s existing route between Koror and Davao City will be a plus factor, citing the ease to connect to Manila or other provinces using the carrier’s other routes.

Tentative maiden flight to Macau will be sometime this December, which will be undertaken through a tie-up with budget carrier, Viva Macau, Po said. The flight will use Viva Macau’s planes, either its 181-seater Boeing 767-200 or 245-seater B767-300.

Tiger gets its paws on the Philippines

29 September 2006

Singapore budget carrier Tiger Airways announced today a marketing deal with a Filipino airline, SEAair, that will establish Tiger's first overseas base and give it a foothold in the Philippines market.

The deal with South East Asia Air (SEAir) gives Tiger a base at Clark Field, a former US Air Force facility north of Manila. Under the deal expected to take effect in February, Tiger Airways will lease two brand new Airbus A320s to SEAair which will operate them on domestic and international routes from Clark, using the Tiger Airways brand.

Tiger think this will be the first of a number of such partnerships. This marketing agreement approach is very different from the ownership role that has been taken by Air Asia in managing its Thai and Indonesian businesses. Tiger want a network of four or five bases across South East Asia over the next two or three years.

Tiger Airways currently operates daily flights from Singapore to the Philippines through Clark Field. Two planes travel directly and a third flies via Macau. SEAir will take over the Macau-Clark leg but the aircraft will still carry the Tiger Airways logo and the airlines will split the direct Singapore-Clark route.

SEAir will also use a leased A320 to operate domestic flights from Clark Field to the Philippine cities of Cebu and Davao using the Tiger Airways logo.

Bookings on the SEAir flights will be made through the Tiger Airways website. SEAir is a privately-owned 11-year-old carrier that flies from Clark to tourist destinations across the Philippines archipelago, including Boracay and Palawan. The airline currently flies small Dornier turboprops. The airline is online at http://www.flyseair.com/

Ownership of the two airlines will not be affected by the deal, Tiger said.
 

Dragonair cancels HKG-BKK

6 September 2006

Dragonair today confirmed that it will be cancelling services to Bangkok with effect from September 27 - the day before the new airport in Bangkok, Suvarnabhumi, opens. The airline cited commercial reasons for the decision. Maybe it has more to do with Dragonair's new owners, Cathay Pacific!

“Hong Kong-Bangkok is a very busy, competitive route, and it has not been performing to expectations for some time,” said CEO Kenny Tang. “That is why we have taken the decision to cancel the service.”

He said alternative arrangements would be made for customers booked on the airline’s flights to Bangkok or Hong Kong after September 27, but no further clarification was given.

Dragonair launched services to Bangkok in November 2003.

Air Asia applies for Singapore flights

5 September 2006

In what could be the biggest shake up in South East Asian air travel Tony Fernandes, CEO of Air Asia has told reporters that AirAsia recently applied formally — for the first time — to fly to Singapore.

Both the Singapore and Malaysian governments appear ready to open the Kuala Lumpur - Singaporesector to competition. Singapore Airlines and Malaysia Airlines together have a virtual monopoly on this highly lucrative route.

Fernandes also said that if Singapore's low-cost terminal reduced its charge then the number of Thai AirAsia flights between Bangkok and the city-state could be doubled to eight a day.

For airlines, landing fees and parking charges levied by an airport constitute a major chunk of flying costs to a particular destination. Fernandes says there is barely any difference between flying to Singapore's full-service, ultramodern Changi airport and the low-cost terminal.

Fernandes later told reporters that he foresees sufficient demand for AirAsia to operate up to 20 flights per day between Kuala Lumpur and Singapore "if the price is right."

He said he was optimistic about eventually flying to Singapore but declined to give a specific time frame. "Of course we want to fly to Singapore but the financial deal has got to be viable," he said.
 

Oasis sets first flight for October 25th

5 September 2006

On Monday, Oasis Hong Kong Airlines, began taking its first-ever reservations. The new airline which is 100% owned by Hong Kong investors, will begin its first non-stop flights from Hong Kong to London Gatwick on October 25. Fares start from as little as HK$1,000 one way.

Sadly demand is such that their web site is already down (on 5 Sept) and is undergoing maintenance. After all the hype they really should have got that right!

For business travellers, businessOasis fares start from HK$6,600 one way. The Seat pitch, designed for long-haul travel, is 32” in economyOasis and in business class 60”, comparing favourably with other airlines. Passengers will be able to enjoy two complimentary hot meals on board from a choice of Asian or Western styles. Tea, coffee and water are complimentary in both classes with soft drinks, snacks and alcohol available for purchase in economyOasis. In businessOasis alcohol and soft drinks are all complimentary. All seats have personal seat-back TV with a choice of up to 16 video entertainment channels offering hit movies and children’s programmes and 12 audio channels. Travellers can also choose to purchase additional products and services such as a deluxe amenities kit and lounge access.

Stephen Miller, Chief Executive Officer of Oasis Hong Kong Airlines, said: “Oasis Hong Kong Airlines believes in making customers’ travel dreams come true by offering them the best choice for long-haul travel at incredibly affordable prices with the same comfort and service as other airlines. After London, we aim to fly to Oakland (San Francisco area) in California and to other European and North American cities including Cologne/Bonn, Milan, Berlin and Chicago. We have hired experienced, enthusiastic staff and currently have 144 cabin crew and 56 flight crew who are undergoing a rigorous training programme.” 

Oasis Hong Kong Airlines currently owns two Boeing 747-400s (previously owned and maintained by Singapore Airlines) and targets to grow to five aircraft by the end of 2007. Engineering and maintenance will be carried out by HAECO, a leading aviation maintenance provider in Asia. The airline will also offer cargo services with Cargolux as GSA and HACTL as cargo handler. Other partnerships include LSG Sky Chefs for catering, Jardine Aviation Services as ground handling agent and customer services by PAM (Oasis).

Oasis Hong Kong Airlines is adopting a partnership approach to working with the travel trade, unlike some other low fare carriers in Asia. Trade commissions will be at market rates of 7% for all travel agents in Hong Kong. Travel trade partnerships are also in place with travel wholesalers, group tour operators, hotel package operators and sales agents for China, and with Radixx and Galileo for GDS and internet distribution services respectively.

Major investors in Oasis Hong Kong Airlines are Rev. Dr. Raymond C. Lee and Priscilla Hwang Lee; Dr. Allan Wong, Chairman and CEO of VTech Holdings; Dr. Richard K. Lee, founder of Trinity Textiles; along with other local investors. Aircraft financing has been arranged and funded by HSH Nordbank. The company has first phase funding commitment of US$100 million.

Thai AirAsia to move to new Bangkok airport on Sept 25

30 August 2006

Budget carrier Thai AirAsia said Wednesday all of its flights will move to Bangkok's new international airport on September 25, three days ahead of the airport's official opening.

Thai AirAsia, a joint venture between Thai telecom giant Shin Corp and Malaysia's AirAsia, said its 70 daily flights will shift from the existing Don Muang airport to the new airport on September 25.

The last 10 flights, both domestic and international, on September 24 will also fly to the new airport, the airline said. This is how they will get all the planes on site at the new airport ready for the early morning departures on the 25th.

TAA said that the early move is to try and avoid traffic congestion at the new airport the night before the opening date.

The government has said all flights must move to the new airport on September 28, when the existing Don Muang will close to commercial traffic.

The airline has already informed passengers about the move. Well sort of - it did this by advertisements in the local newspapers. Not by email or any other contact. I have a flight booked out on Air Asia on 25th September; the e-ticket does not say which airport the flight is from.

Jetstar goes long haul

26 July 2006

Qantas-owned Jetstar today said it would fly to Bangkok, Phuket, Ho Chi Minh City, Osaka, Bali and Honolulu from Sydney, Melbourne and Brisbane.

The first international flight takes off on November 23 from Melbourne direct to Bangkok, followed by a Sydney-Phuket service the day after.

Budget airline Jetstar will charge long-haul passengers extra for blankets and pillows as part of its push into international markets

After the promotional period ends, all inclusive, one way ticket prices will rise to $409 for Bali, $439 for Bangkok and Phuket, $489 for Ho Chi Minh City and $549 for Osaka, with Honolulu prices yet to be announced.

As with its Australian domestic version, the cheap tickets will not include extras such as meals, inflight entertainment or even blankets.

It will set you back $25 for a "Feed Me" package, which will include two meals and a non-alcoholic drink, for all but the Bali flights.

Inflight entertainment kits, including portable video on demand and headsets, will cost you another $10, while so-called "Comfort me" packs, with a blanket, pillow and amenity kit, will be charged at $7 each.

The strangest aspect of this announcement is that it ignores Singapore where Jetstar Asia already has a hub and where Jetstar could transfer passengers into its local Asian network.

Cebu Pacific expands

20 July 2006

Cebu Pacific will resume service to Singapore daily starting August 31, 2006, as part of its regional expansion program, with promotional fares as low as P 1,499 one-way.

The Manila-Singapore flight, using CEB's brand-new Airbus aircraft, leaves Manila at 8:30 p.m., arriving in Singapore at 11:55 p.m. and leaves Singapore at 12:40 a.m. the following day to arrive back in Manila at 4:05 a.m.

Thai Air Asia opens up Yangon

17 July 2006

On 16 August 2006 Thai Air Asia will start a daily return flight to Yangon, Rangoon. The fare starts at Baht 999 plus taxes and fuel surcharges. Air Asia should do well on this route; if you book a flight on 16 August to return say on 19 August the total fare is Baht 3,498. The Bangkok Air fare for flights on the same day is Baht 9,800. Asia's boutique airline is also one of the most expensive! Fuel surcharges on TAA are Baht 600 for each sector. On Bangkok Air the fuel surcharge is US$30 (Baht 1150) each way.

This should be another successful initiative for TAA.

Low cost - long haul from Hong Kong and Macau

5 July 2006

British budget travellers can now set their sights on Asia with the introduction of £75 fares to Hong Kong in the autumn.

Oasis Hong Kong Airlines yesterday announced plans to operate five direct Gatwick-Hong Kong flights a week from October, with tickets costing from £75 one way, plus taxes.

The start-up Asian carrier will offer free food and some business-class accommodation. Passengers can also pay a supplement to upgrade their meals. The new London service will be operated using Boeing 747-400s; these have been acquired from Singapore Airlines.

The airline will be competing directly against British Airways, Cathay Pacific and Virgin Atlantic on the route. BA's lowest Hong Kong return fare is currently £389 flying out of Heathrow.

It is understood that the airline is also looking to serve European hubs such as Berlin, Milan and Cologne/Bonn in the future. As well it plans to fly to Oakland and Chicago in the USA.

The new carrier's chief executive, Steve Miller, said: "We are pleased to announce the first ever low-fare, high-quality long-haul flights from London to the far east and we look forward to launching flights to more destinations in the future.

"Business travellers as well as consumers are increasingly price-conscious and I believe we have an individual business proposition that not only delivers on price, but offers passengers a flexible and high-quality service - a term not often associated with low-fare travel. Oasis Hong Kong Airlines is online at http://www.oasis-air.com/en/index.asp.

In addition Viva-Macau plans to start operations late in the summer from Macau to Asian and European destinations, initially flying with 767s. One of which has flwon with PB Air from Bangkok in a previous life. Viva-Macau Airlines may be found at http://www.viva-macau.com/press.html

United 93 - the film of the year

Peter Bradshaw
Friday June 2, 2006
The Guardian

What other subject is there? What other event is there? Nothing is so important, so inextinguishably mind-boggling as the terrorist kamikaze flights of 9/11. Al-Qaida gave the world a situationist spectacle that dwarfed anything from the conventional workshops of politics and culture. Since then, Hollywood has indirectly registered tremors from Ground Zero, but here is the first feature film to tackle the terrible day head on, and Paul Greengrass has delivered a blazingly powerful and gripping recreation of the fourth abortive hijacking. It is conceived in a docu-style similar to Bloody Sunday, his movie about the 1972 civil rights march in Northern Ireland. He does not use stars or recognisable faces, and many of the characters in the air traffic control scenes are played by the actual participants  themselves.

This is an Anti-Titanic for the multiplexes - a real-life disaster movie with no Leo and Kate and no survivors: only terrorists whose emotional lives are relentlessly blank, and heroes with no backstory. Greengrass reconstructs the story of the hijacked plane that failed to reach its target (the Capitol dome in Washington DC) almost certainly owing to a desperate uprising by the passengers themselves, who were aware of the WTC crashes from mobile phone-calls home, and who finally stormed the cabin, where terrorists were flying the plane. With unbearable, claustrophobic severity, Greengrass keeps most of his final act inside the aircraft itself.

The director is able to exploit the remarkable fact that the sequence of events, from the first plane crashing into the World Trade Centre at a quarter to nine, to the fourth plane ditching into a field in Shanksville, Pennsylvania, at three minutes past 10, fits with horrible irony inside conventional feature-film length, and he is able to unfold the story in real time. It is at this point that a critic might wish to say: caution, spoilers ahead. But we all know, or think we know, how the story of United 93 comes out, and this is what makes the film such a gutwrenching example of ordeal cinema. When the lights go down, your heart-rate will inexorably start to climb. After about half an hour I was having difficulty breathing. I wasn't the only one. The whole row I was in sounded like an outing of emphysema patients.

Every last tiny detail is drenched with unbearable tension, especially at the very beginning. Every gesture, every look, every innocent greeting, every puzzled exchange of glances over the air-traffic scopes, every panicky call between the civil air authority and the military - it is all amplified, deafeningly, in pure meaning. And the first scenes in which the United 93 passengers enter the plane for their dull, routine early-morning flight are almost unwatchable. These passengers are quite unlike the cross-section of America much mocked in Airplane! - with the singing nun and the cute kid - neither are they vividly drawn individuals with ingeniously imagined present or future interconnections, like the cast of TV's Lost. They are just affluent professionals from pretty much the same caste, with no great interest in each other, and nothing in common except their fate. And all these people are ghosts, all of them dead men and dead women walking. When they are politely asked to pay attention to the "safety" procedures, ordinary pre-9/11 reality all but snaps in two under the weight of historical irony.

But what does happen at the end of the story? In his memorial address, President Bush implied that the passengers committed an act of tragic self-immolation, rather than see the Capitol destroyed. Is that what happened? Greengrass evidently disagrees. In his vision, the passengers have a quixotic idea of using one passenger, a trained pilot, to wrest control and bring the plane down safely to the ground - a Hollywood ending, perhaps. But there is something very un-Hollywood in Greengrass's refusal to confirm that without the passengers' action they would have hit the Capitol. On the contrary, his script shows the terrorists making a miscalculation of their own.

United 93 is growing, in popular legend, into the tragic and redemptive part of the 9/11 story: America's act of Sobibor defiance. It is a myth-making which is growing in parallel with jabbering conspiracy theories that the plane was shot down by US air-force jets and the whole passenger-action story is a cover-up. On that latter point, Greengrass's movie shows us that it is easy to be wise after the event; it is a reminder of how unthinkable 9/11 was, of how all too likely it was that the civil and military authorities would not have mobilised in time, and that any action would indeed have to come from the passengers themselves. The film is at any rate fiercely critical of Bush and Cheney, who are shown being quite unreachable by the authorities, desperate for leadership and guidance.

United 93 does not offer the political or analytical dimension of Antonia Bird and Ronan Bennett's 9/11 docu-drama Hamburg Cell; there is no analysis or explanation. The movie just lives inside that stunned, astonished 90 minutes of horror between one epoch and the next - and there is, to my mind, an overwhelming dramatic justification for simply attempting to face, directly, the terrible moment itself. The film might, I suspect, have to be viewed through an obtuse fog of punditry from those who feel that it is insufficiently anti-Bush. It shouldn't matter. Paul Greengrass and his cinematographer Barry Ackroyd have created an intestinally powerful and magnificent memorial to the passengers of that doomed flight. It is the film of the year. I needed to lie down in a darkened room afterwards. So will you.

Air Asia's East Malaysia expansion

2 June 2006

Asia’s leading low fare airline, AirAsia, has announced its expansion plans to develop Kota Kinabalu and Kuching airports into fully operational hubs by July 2006.

In a statement yesterday, AirAsia said low fare travel for East Malaysians will be enhanced with more exciting and affordable intra state travel opportunities between Sabah and Sarawak as well as to the Asean region.

AirAsia will start daily direct flights from Kota Kinabalu to Miri and Tawau from July 11, and Bintulu, Sibu, Miri, Kota Kinabalu from Kuching, beginning July 25 2006.

Bookings for these new flights can be made at all AirAsia’s distribution channels from June 2 onwards.

These flights will be operated with Boeing 737-300 aircraft.

AirAsia would steadily strengthen its route network connecting the peninsular with East Malaysia by boosting flight frequencies from Kuala Lumpur and Johor Bahru.

Flights from Johor to Kuching and Kota Kinabalu will be increased to twice daily (14 flights weekly), and Miri and Sibu would commence seven times weekly operations from July 3 onwards.

AirAsia will enhance its schedule with two times daily flights (14 flights weekly) to Sandakan and Tawau.

Air Asia launches Brunei service

2 June 2006

The first Air Asia flight from KL to Brunei will land at Bandar Seri Begawan on July 11 and bookings are open from June 2.

AA have been given approval to operate one flight a day. The aircraft will depart from the low cost carrier terminal in Kuala Lumpur at 3pm and leave at 6pm from Brunei.

Initially AirAsia will fly a Boeing but very soon will transfer to an Airbus A320. Air Asia's announced goal is to unite Asean.  Brunei is the seventh country in Asean that AA flies to leaving only Laos and Myanmar.

Terminal madness

11 May 2006

Interesting perspective on the new low cost terminal in KL. http://www.malaysiakini.com/letters/49955

Air Asia's Bangladesh plans

5 May 2006

Malaysia's AirAsia has announced a new joint venture airline in which plans to start flights in October 2006.

The company, which will team up with Bangladesh's East West Airlines to launch Ait East Asia, plans to operate daily flights between the capital Dhaka to Chennai and Kolkata in India as well as Singapore, Bangkok and Kuala Lumpur. Air East Asia will be 49 percent owned by AirAsia with the newly-formed East West Airlines taking a 51 percent share.

The airline will be the first budget airline in Bangladesh. AirAsia and East West signed a memorandum of understanding last week in Kuala Lumpur and AirAsia's board is expected to approve the joint venture airline later next month.

Under the Bangladesh agreement, AirAsia is expected to provide two brand new 180-seat Airbus A-320 aircraft to Air East Asia and also technical and management support while East West will bear all local expenses. The airline also plans to fly to four major cities in Bangladesh.

KLLCCT opens for business

24 March 2006

Kuala Lumpur's low cost carrier airport terminal is now open for business; Air Asia's flight AK6315 from Penang was the first to use the new terminal yesterday. International flights started to use the new terminal today. The LCCT is 20km from the main KL International Airport terminal, next to the cargo complex. This will not be ideal for anyone with connecting international flights. It also shows just how massive KL's international airport is !

Access to the airport is by private car, bus or taxi or via shuttle buses from the main KLIA terminal.

At present the KLLCCT will only serve Air Asia and its subsidiaries; Singapore opens its own smaller Budget Terminal this weekend although initially the only user will be Tiger Airways.

Easyjet - east meets west

10 March 2006

Easyjet will bring its low cost model to Istanbul from this summer; a city that traditionally has been the link between East and West. New routes and fares announced by Easyjet today include:

Tiger to launch three Chinese destinations

23 February 2006

Tiger Airways is planning to launch flights to the Chinese cities of Haikou, Guangzhou and Shenzhen in April this year. This takes Tiger more aggressively into the Chinese market than any of Asia's other LCCs.

Tiger Airways will initially be flying four times a week to Haikou and three times a week to both Guangzhou and Shenzhen. The sales of seats to these three destinations are expected to start on 24 February.

Haikou, also known as “the Coconut City” or “Hawaii of the Orient” is the capital of Hainan Province, China’s second largest island. The city has evolved from a simple sightseeing city to an busy seaside resort and business centre.

Guangzhou is the capital of Guangdong province and known as the “Spring City” because its long, sweaty and hot, summers. It is also known as “Yang Cheng” or “Goat City” because of the legend that the city was founded by Five Immortals riding five rams. It is also, frankly, polluted and chaotic.

Shenzhen is a frenetic industrial, commercial and shopping city over the border from Hong Kong. Visitors will be able to find copies of many branded name products and maybe even some original products.

These routes are clearly targeted at business travelers on a budget.  Haikou could be fun for a weekend's golf or partying with China's new rich. They are all long flights from Singapore of at least 3 hours each way.

Asia's LCCs are still barred from Beijing and Shanghai. Air Asia currently only flied to Xiamen.

LCCT at KLIA

22 February 2006

Kuala Lumpur will shortly open its new Low Cost Carrier Terminal. The main tenant will be Malaysia based Air Asia.

This is the link to the official web site for the new terminal.

The LCC Terminal is separated from the KLIA Main Terminal Building (MTB). Construction of the LCC Terminal was on the fast track basis beginning June 2005. The construction and other related costs of LCC Terminal is about RM 108 million.

The LCC terminal is specifically designed to suit the Low Cost Carrier (LCC) business model where it would have no travellators, escalators, aerobridges and would be able to have a shorter turnaround time. The 35,290 square meters LCC terminal comprised one single storey building for departure and arrival. It is designed to handle 10 million passengers a year and there is scope for further expansion should more airlines decide to use it.

The LCC terminal is supported by the existing parking apron and additional infrastructure built includes an extension to the existing parking apron, surface access, curbside road, car parks, and other utilities. The LCC Terminal due to completed in March 2006 and it will be opened on 9 March 2006 and the official opening will be on 23 March 2006. Apart from Air Asia, Malaysia Airports expected to attract other LCCs utilize the Terminal.

The LCC Terminal will offer other services such as a shuttle bus service to link passengers from the LCC terminal to Main Terminal Building, KLIA and vice versa. Others services and facilities such as Foreign Exchange Counter, public phones, Auto Teller Machines (ATM), Passenger Meeting Services, Hotel Reservations, Duty Free Shops and Food and Beverages outlets.

KL's new terminal will open days before the smaller Budget Terminal opens at Singapore's Changi airport.

JetStarAsia expands network

12 December 2005

Jetstar Asia is expanding in India. Starting from 23 January 2006, you can fly 5 times a week to their second Indian destination, Bangalore. Fares to India start from only S$98. Book by 19 December 2005 and travel by 25 March 2006. This route could see good traffic in both directions; the Indian middle classes of Bangalore shopping in Singapore and Singaporeans exploring the Indian IT hub.

Meanwhile its sister company (effectively its controlled subsidiary) Valuair will fly to Bali every Tuesday, Friday and Sunday from 27 January 2006. Make your bookings by 19 December 2005 and you could be flying to Bali from only S$99 return.

Low-cost; long haul

24 November 2005

The world of low cost carriers has in recent years been confined to short haul routes with quick turnarounds, regular flights, no or limited freight and simplicity of operations.

Low costs, long haul was tried by Laker and People Express in the 1970s and 1980s; both failed; in large part because the existing carriers could fill up the back of their airplanes at discounted fares. This approach works even now in Asia where Singapore Air and Cathay Pacific offer very cheap fares in the back of their 747s and 77s on routes where JetstarAsia and Tiger Airways have joined the competition.

So what of the future. There has to be a market for cheap seats on giant aircraft. Emirates President, Tim Clark, thinks the future may in fact be the Airbus A380. He envisages this as the perfect long-haul low-cost aircraft. Possibly hinting at how Emirates might use some of the 45 it has on order, he pointed out that in an all-economy, 780-seat configuration, an airline could operate the A380 from London's low-cost hub at Stansted to Adelaide in Australia via Colombo in Sri Lanka at a fare of US$$516 return and break even at an 80% load factor. Stansted-Burbank, California would cost $387.

Clearly some of these low-cost airports may need modifications to handle the aircraft. The seat-mile costs for a stretched A380 appear to be very attractive. Clark thinks that the A380 would only have beverage stations and passengers would bring their own food. Although in reality the airlines might sell food as many of the LCCs do now. Video-on-demand and all drinks would be charged for and passengers limited to one piece of baggage at 25 kg.

Boeing predictable argue that their new 787 is suited for a long-haul operation, offering similar seat-mile costs to the A380 with much lower trip costs. 

At last airline plans for the A380 and other very big planes are becoming clearer. Forget the talk of on board spas and shopping malls. Get as many bums on seats as possible and get them to where they want to go at a fare they can afford.

The  mother of all airport hubs

24 November 2005

This news should reverberate around the global aviation industry and puts Bangkok's efforts to build a new airport to shame.

Dubai has announced plans for its new Jebel Ali Airport. Their existing airport is modern but restricted in growth due to proximity to the fast expanding city of Dubai. The new airport will be huge measuring 140 sq. km., 10 times the area of Dubai International and as big as London Heathrow and Chicago O'Hare combined.

Airport City ultimately will have six runways and move 120 million passengers and 12 million tons of cargo a year. The first aircraft will touch down in 2007 and the 2009 Dubai Air Show will be held at the airport's 500,000-sq.-m. Dubai Exhibition City site.

In the meantime Bangkok struggles to complete its new airport which may not be operational until 2007 with a capacity of approximately 45 million passengers.

At this rate the world will be flying anywhere via Dubai.

Singapore's struggling LCCs

24 November 2005

After over a year of operation it is time for a report card on the Singapore based low cost carriers. And in terms of executing their original business plans the report would show a resounding F.

Valuair has effectively died to be swallowed up by Qantas backed JetstarAsia. There have been lay-offs. Valuiar flights to BKK and HKG have been terminated allowing JetstarAsia to operate those routes. Valuair does have landing rights in Indonesia. JetstarAsia does not. So Valuair is restricted to twice daily flights to Jakarta and a daily return to Surabaya.

JetstarAsia has itself been forced to cut back its expansion plans - not taking delivery of new planes and forced to find new routes to dubious destinations such as Yangon. Given the Australian government's position of the Burmese dictatorship this appears to be a very questionable piece of business.

The main issue for Tiger and JetstarAsia is that they have not been able to obtain rights to fly into Singapore's nearest neighbours, Malaysia and Indonesia. This is a real issue given the obvious problem that Singapore has no domestic market!

Tiger has a mere three flights a week to the secondary Indonesian destination of Padang. It has no other Indonesian and no Malaysian flights.

Investors in Singapore's LCCs will need deep pockets and a lot of patience; or they will be consolidated into the operations of their wealthier parents.

JetstarAsia to Cambodia

24 November 2005

Jetstar Asia flights to Phnom Penh and Siem Reap (Angkor Wat) have opened for bookings with scheduled direct flights to the two destinations due to commence on December 15th and 16th respectively.

Jetstar Asia will fly direct to Phnom Penh and Siem Reap three-times weekly. To celebrate the launch, special fares from S$128 to both destinations are being offered for bookings made by November 27 for travel completed by March 25th, 2006. Every day low fares to both destinations will start from S$178.

Tiger's Evolution

9 November 2005

Singaporean budget carrier Tiger Airways is planning to start flying between Darwin and the South-East Asian city-state four-times a week from next month.

The company, which is part-owned by Singapore Airlines, said the four-hour flights would start at $A39.98 one-way before taxes and handling charges.

There is strong demand for affordable flights to Australia from Asia, said Tiger Airways Chief Executive Tony Davis, speaking at a press conference in Darwin. His airline has been helped by  the Northern Territory Government which is contributing $350,000 to help Tiger market its new route. The Darwin Airport has also given confidential incentives to bring the airline to the Top End.

Northern Territory Chief Minister Clare Martin says it is great news for tourism, with 37,500 seats available over a year. She added "this gives the Northern Territory a huge opportunity to tap into the new Asian markets of Singapore, Macau, Thailand, India, Vietnam and Southern China."

It remains to be seen whether Singaporeans will be find much to lure them to Darwin. The flights out of Darwin into Singapore may be rather more full!

(ADDITION: 3x weekly Singapore to Danang, Vietnam) flights start on 10 January 2006.)

A bigger Jetstar

20 October 2005

Qantas Airways Ltd's plans to transfer part of its international operations to its low-cost Jetstar franchise are well advanced, with the airline looking to launch Jetstar flights from Australia to Southeast Asia, China and possibly Japan in the second half of next year according to the Australian press.

Qantas is looking to lease longer-range aircraft for the budget airline, which initially will have a mandate to fly to destinations within a 10-hour flying range of Australia.

The newspaper said the Qantas board is expected to sign off plans for Jetstar International in early December.

Like the domestic Jetstar, which was launched in May last year, it is expected the new carrier will take over less profitable international routes, such as Bali, Manila, Bangkok, Fukuoka in Japan and even Honolulu.

Jestar is also expected to open up more routes into Asia from smaller capital cities, such as Adelaide and Perth.

As well as attacking Qantas's cost base, the new Jetstar is also aiming to stem the growing incursion of carriers such as Emirates and Singapore Airlines on air traffic into Australia.

It must be likely that Qantas will transfer its "Australian" low cost brand to Jestar. The links into Jestar Asia could be valuable and alllow Qantas to build a low cost network from Australia into and around Asia.

The SIN-Macau-Manila-SIN Tiger twostep

7 October 2005

Effective 30 October Tiger Airways will be making effective use of fifth freedom rights through Macau and Manila to operate two daily circle routes from Singapore to Macau and Manila and back to Singapore.

The first flight leaves Singapore for Macau at 09.30 each day and routes onto Manila and then back to Singapore. The second flight leaves Singapore for Manila at 11.35 and then goes from Manila to Macau and back to Singapore.

I do not know how they will crew this flight - if it is a single crew operation each day is almost 12 hours from pushback in Singapore until returning in the evening.

With only four planes (there are five dues for delivery in 2006) Tiger will be using two of its planes full time on this schedule; as a result service to Bangkok has been reduced to a single daily flight with an evening departure from Singapore and a late night return from Bangkok.