Travel |Update|
Issue 213
1. AirAsia X to hop on Kangaroo route
The Centre for Asia Pacific Aviation says A$1,000 return flights between
Australia and UK are on the horizon. CAPA says AirAsia X plans a Gold
Coast-Kuala Lumpur-London launch by late 2008, and a second Australian
destination from October. Key points from the latest CAPA report include-AirAsia
X to offer regular fares between Australia and UK for A$1,000 (plus
taxes/charges); Promotional fares could be much cheaper; Kuala
Lumpur-London Stansted services to commence by the end of 2008 with two leased
A340s; AirAsia X to announce second Australian destination by May-08, with
services from Oct-08; Third Australian destination from Feb/Mar-09;
"Active discussions" with Melbourne although other cities bidding aggressively.
Source: Business Standard; 27.3.2008
2. Air China on the move
Air China has moved its operations at Beijing Capital
International Airport to the new Terminal 3. The move signals the next step in
an important string of milestones for China's national flagship carrier. "Over
the past year, Air China has made a number of strategic moves that has put our
airline on course to becoming a leading regional and global player," said Kong
Dong, deputy chairman of Air China. "In December 2007, we joined Star Alliance.
This emphasizes our commitment to international standards and provides our
frequent flyers with a truly international network. "Now we are moving into
Terminal 3, which will expand our network potential and make us the airline of
choice, not only for flights to and from China, but also across Asia and the
world. "And in August 2008, we will join hands as an official Olympic sponsor to
welcome visitors to the Beijing Olympic Games. We are extremely excited about
the year ahead," Kong said. With more flights going into and out of Beijing than
any other international or domestic airline, Air China is poised to benefit from
the recent Terminal 3 expansion. The airport is now the world's largest by
landmass, and with 90 million passengers forecast by 2012 it is scheduled to
become the world's largest airport in terms of passenger numbers. Terminal 3
expansion, along with its third runway, will also propel the Beijing airport
from ninth to third busiest air hub in the first year.
Source: Business
Standard; 27.3.2008
3. Emirates launches low cost carrier
Emirates has responded to the
growing influence of budget carriers in the Middle East by launching its own low
cost carrier. Emirates Executive VP Commercial Operations, Ghaith Al-Ghaith, has
been appointed CEO of the new airline. The unnamed Dubai LCC will be part of the
Emirates Group, operating to destinations up to 4.5 hours flying time from its
base. This includes the Middle East, all the key points in the India,
Bangladesh, Sri Lanka and Northeast Africa, Southern Europe and Central Asia.
The new carrier plans to lease or buy single-aisle aircraft (B737s or A320s) and
will begin operations within a year. However, the Centre for Asia Pacific
Aviation believes it is only a matter of time before A380 equipment is
eventually deployed at the airline "a move that would strike fear into airline
managements in Europe and Asia". CAPA said 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. 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 Emirates LCC move follows the success of Air Arabia, based in the
neighboring 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.
Source: Economic Times; 20.3.2008
4. Abacus seeks the sexiest hack
Abacus International is hosting the
Abacus Hack Day on March 26-27 for the second time. Aimed to encourage and
empower local innovations and differentiated solutions amongst the Abacus
developer community, the event in Singapore will see around 30 participants
coming together from all over Asia and U.S. to show off what hacks (or software)
they can put together within a 24-hour window. 'Hack' is a jargon to mean "an
incredible good piece of work that produces exactly what is needed". There is no
restriction on the type of hack that can be submitted - all that is needed is
ingenuity and the ability to make the hack work. The teams or individuals will
pit idea against idea in a 24-hour coding marathon, vying for the following
awards:
1) Ultimate Geek Hack
2) Sexiest Hack
3) What were you smoking about?
4) Most Marketable (for travel industry)
5) Hacker's Choice
Source: Economic Times; 20.3.2008
5.
JetBlue latest in line to use LAX
JetBlue Airways Corp. has never
been a big user of Los Angeles International Airport. "Then out of the blue last
month, the low-cost carrier stunned LAX officials by asking for gates there.
Moreover, it wanted them in Terminal 6 next to Virgin America, the airline
started by eccentric British billionaire Richard Branson," says the LA Times. It
was no surprise to industry observers. Mr Branson is once again shaking up the
industry with an airline that is offering low fares and unusual onboard
amenities, says the newspaper. The result at LAX is that competition there is
getting more lively than ever. LAX passengers flying to popular domestic
destinations such as San Francisco and New York are getting some of the lowest
fares in years despite record fuel prices."We've become a hotbed of
competition," said Paul Haney, the airport's deputy executive director. "I don't
know if we could say that without Virgin America."Since Virgin America began
flying out of LAX in August with fares as low as $44 one-way, competitors have
been beefing up flights and lowering fares. The result is that even JetBlue has
been prompted to enter the market.Forest Hills, N.Y.-based JetBlue, which has
had its part in shaking up the industry with discount fares since it started
flying in 2000, said last month that it would begin serving LAX passengers with
four daily flights to New York and Boston beginning in May. The sudden flurry of
choices for flights to some of the more popular destinations has been a boon for
LAX consumers, who are seeing fares as much as half of what they had been used
to paying.
Source: Economic Times; 20.3.2008
6. BA increases Iberia shareholding
British Airways has increased its
shareholding in Iberia from 10.1% to 13.15%. It has bought 28,745,767 shares of
the Spanish airline at an average price of €2.34 per share. The airline, which
abandoned takeover plans for Iberia last November, said it was planning further
investment in the airline. BA chief executive officer Willie Walsh said: "This
purchase reflects the strategic importance we attach to our relationship with
Iberia and our continued confidence in its management. We will consider further
opportunities to increase our stake."
Source: Financial Times; 20.3.2008
7. Etihad opens new Bangkok office
Etihad Airways
has opened a new office in Bangkok located the 11th floor of Tonson Tower,
centrally located on Ploenchit Road in the city. Mr. Florian Preuss, Manager
Thailand and Mekong Region, Etihad Airways said, "We believe that our new office
will provide an elegant ambience in which our customers can expect to receive
the same high level of service on the ground as they do in the air. The
attention to detail is indicative of our strong customer focus and our
commitment to providing exemplary service." The new premises feature separate,
personalized customer service areas, which aim to ensure privacy and comfort for Etihad's customers.
Source: Financial
Express; 20.3.2008
8.
Air Mauritius to connect Bangalore from April 29, 2008
With healthy load factors accounting for 78 per cent
on the Mumbai route, 75 per cent on Delhi route and approximately 68-71 per cent
on the Chennai route, Air Mauritius is gearing up to launch its fourth gateway
Bangalore from April 29, 2008 and a series of media campaigns with new
strategies to strengthen its position in the Indian market. The airline is
slated to launch three media campaigns across both the electronic and print
mediums. States Rajesh Busgheet, Regional Manager Indian Sub-Continent and
Middle East, Air Mauritius, "We will be commencing our electronic campaign on
Zee TV from April 1, 2008. The focus of the campaign will be on promoting the
destination and its leisure offerings to the end consumer. In addition, we will
also be running our print campaigns in the same month." With regards to the
print campaigns, plans are underway to focus on network connections that promote
Mauritius and beyond for Indian travelers. Triangular destination offers from
Mauritius are also on the cards but are being worked upon. The next interesting
development will be the onward connection to Australia connecting Perth, Sydney
or Melbourne via Mauritius as a stop-over, which accounts for the same flying
time from any Far East destination. Elaborating on the plans, Busgheet
mentioned, "There is a huge traffic going to Australia, and travelers want newer
options for their transit. Going via Mauritius will also allow them the benefit
to explore the destination as visa is not an issue. Apart from just connecting
Australia, we are also looking to promote connections to South Africa." Plans
are underway for the advertising campaign to promote connections to Australia
through student traffic. In this regard, the airline will offer special fares to
students. With all the advertising campaigns well in process and good load
factors, number of other developments are being undertaken. "We are refurbishing
five A340's and converting them into two class configurations Business (34)
and Economy class (251). These aircraft service the Mumbai Mauritius route
apart from other international sectors. The new aircraft will be inducted on the
Mumbai route from July 2008," informed Busgheet. Indian traveller can also look
forward to the new Mauritius Madrid connection that will commence from July 7,
2008.
Source:TravelBiz
Monitor; 27.3.2008
9.
Emirates to offer 2 flights daily to Delhi
The Dubai-based Emirates Airlines
is to operate a double daily flight to Delhi from July 2, apart from increasing
its operations to eight times a week to Ahmedabad from March 30 this year. In a
statement the airline has said that from March 30 it will operate twice-a-day
between Dubai and Delhi every Tuesday, Thursday, Friday and Sunday. From July,
the airline will make the twice-a-day service daily.
Source: Business Line; 27.3.2008
10.
‘Deccan’ soon to go off from the skies
Prepared by
The 'Deccan' brand is likely to be
extinguished once the merger of Deccan Aviation and Kingfisher Airlines is
completed, quite in reversal of what was last said on the matter."Deccan will
cease to exist as the merger process is about to be completed," Mr Vijay Mallya,
Chairman of United Breweries’ group-owned Kingfisher Airlines, said on Thursday.
While he did not elaborate on the brand as it were, a person with knowledge of
developments in the low-cost carrier that the name of Deccan would be changed
after merger procedures are over. It may be recalled that in December last year
at the time of the approval of merger by the boards of both companies; Capt
Gopinath, Deccan Aviation’s Chairman had said that brand Deccan would continue
to remain even after the merger with Kingfisher Airlines. He was unavailable for
comment on the new development. Capt Gopinath would be a director in the merged
entity, most likely in the Vice-Chairman's post. Air Deccan is widely regarded
to have pioneered the low-cost carrier model for the Indian aviation industry.
It was re-branded as 'Simplify Deccan' sometime back, when its interiors, livery
and other aspects had also been changed. Elaborating on the development, Mr Ravi
Nedungadi, President and Chief Financial Officer of UB Group, said, "While there
will be no change in the low-cost model of Deccan, we will decide on whether to
keep the name (for the low-cost service) or change it in another two to three
months. It is not a corporate decision and would depend on the surveys regarding
the brand in the market." The Karnataka High Court has convened a meeting on
April 17 for the merger of Kingfisher Airlines and Deccan Aviation, Mr Mallya
told a group of journalists in Baramati on the occasion of first grape crushing
of the season at his winery on Thursday. Late last year, Kingfisher Airlines
picked up a 26 per cent stake in Deccan Aviation for Rs 550 crore and made an
open offer for 20 per cent stake taking its holding to 46 per cent. After the
stock ratio is finalized, UB Holdings will have in excess of 51 per cent in the
merged entity.
Source: Business Line; 27.3.2008
Jennifer Kumar, BBA (NAU) Alumni
Skyline Business School
Hauz Khas Enclave, New Delhi 110 016
Tel: 2686 4848, 2652 4399
http://www.skylinecollege.com