1. Qantas cuts Japan and Asia routes
High oil prices have forced Qantas to make cuts on services between Australia and Japan. Offshoot Jetstar is to suspend a Sydney-Kuala Lumpur service. Qantas will reduce its Boeing 747-400 Sydney-Los Angeles services from 17 to 15 a week, following the start of Airbus A380 flights on the route at the end of the year. CEO Geoff Dixon, said the changes, which follow last week’s announcement regarding domestic services, included market exits, capacity cuts and the replacement of Qantas services with Jetstar services on a number of routes. Dixon said the cost of fuel had changed the way the Qantas Group had to do business over the next two years. “We have to look closely at each individual market, including the number of frequencies we operate and which of our flying businesses is better suited to serve those destinations.” Dixon said Japan and South East Asia would be the most affected markets by the schedule changes. Qantas is to close a pilot base in Cairns, with around 40 pilots returning to Sydney or other bases. Dixon said that as a result of the international schedule changes, there would be a small number of job losses in Cairns and Japan. He said Qantas had done everything possible to mitigate the effects of the schedule changes which it had been forced to make. “We will continue to work with individual markets and look for opportunities as conditions improve to address capacity issues and reinstate services where and when we can.”
Source: Business Standard;5.6.2008

2. Jetstar to offer Siem Reap stopovers
Starting July 28, Jetstar Asia passengers flying to Cambodia can enjoy stopovers Siem Reap as well as direct flights to Phnom Penh. With the new flight schedule, Jetstar Asia passengers will be able to fly to Phnom Penh daily, with four non-stop flights weekly or via Siem Reap thrice weekly on Tuesdays, Thursdays and Sundays. The stopover flights to Siem Reap will also provide travellers departing from Singapore the option of flying between Siem Reap and Phnom Penh. Flight reservations for the stopover flights to Siem Reap are only available for Jetstar Asia passengers traveling to Cambodia from Singapore, and must be made through the Jetstar Call Centre. A stopover fee of SGD20 will be waived for the promotional sale period June 9-15 while prevailing airport taxes/surcharges will be charged to each passenger. A departure tax of US$6 is payable at Angkor International Airport in Siem Reap. “With this new triangular route and flight schedule, passengers can now travel to both Siem Reap and Phnom Penh on our flights, and enjoy more flexibility and convenience when planning their itinerary,” says Jetstar Asia’s CEO Chong Phit Lian.
Source: Business Standard;5.6.2008

3. Thailand targets female travelers
The Tourism Authority of Thailand has launched an online marketing campaign targeting women travellers worldwide with the "Her Own Way: Thailand - The Woman's Paradise" campaign. The micro-site specialises in specific grouped female products with the intention of influencing more women travellers to choose Thailand as their holiday destination. These include golf, shopping, spa and beauty, and accommodation with special facilities for women. These travel products are brought together with the best exclusive deals customised only for the project. According to TAT, the targets are women travelers from Japan, Hong Kong, Singapore and the Middle East. In addition, the mini site contains insights for women on selecting accommodation, where to shop, personal safety, and other issues pertinent to helping female travellers to enjoy safe and cost effective stays in Thailand. Thai Airways will also launch exclusive deals through the airlines' Royal Orchid Plus female members' database.
Source: Economic Times;4.6.2008

4. IATA warns: Don’t bite the hand that feeds you
The bad news just keeps coming for the world’s airlines as the cost of fuel surges and the red ink starts to drip all over balance sheets. IATA forecasts a loss of US$2.3 billion for 2008 based on an average oil price of US$106.5 per barrel, but things could get a lot worse. Losses could reach US$6.1 billion with an oil price at US$135 per barrel for rest of the year, IATA warned. Director general and CEO, Giovanni Bisignani, compared the airline industry to Sisyphus - a mythical character whose fate was to constantly carry heavy loads uphill.  Over the last 60 years the industry made US$11.5 trillion in revenues, but only US$32 billion in profits. Average margin for the entire industry has been just 0.3%. And the industry is US$190 billion in debt. “Since 2001, airlines achieved massive change. Fuel efficiency improved 19% and non-fuel unit costs dropped 18%. The skyrocketing price of oil has eaten these gains and left the industry in the red again. “Oil prices at US$130 a barrel are changing the game for everyone. The situation is grim,” said Bisignani. Bisignani said governments must stop “crazy taxation, change the rules of the game and fix the infrastructure”. “We are in this together. Don’t bite the hand that feeds you," said Bisignani.
Source: The Wall Street Journal;3.6.2008

5. PATA Foundation launches aid appeal
The Pacific Asia Travel Association (PATA) Foundation is calling on the travel industry to support a recovery fund to help rebuild the lives of tourism industry employees in the devastated areas of Myanmar and Sichuan, China. PATA Foundation board of trustees chairman Terry Francis has written to all PATA members, urging them to make donations to the "PATA Foundation Rebuilding Fund" to help speed the recovery process for tourism communities of both destinations. "All of us have been greatly saddened by the tragedy unfolding in Myanmar due to cyclone Nargis and the earthquake in Sichuan. Many of the victims are part of the travel community - and we need to act quickly to help them," said Francis. The fund will be administered by the PATA Foundation, the charitable arm of PATA, which for the last 24 years has made a significant difference by delivering contributions to grassroots conservation, cultural heritage and educational projects in Asia Pacific. Following the 2004 Indian Ocean tsunmani, the foundation co-ordinated the Tsunami Recovery Fund which distributed close to US$250,000 to eight worthy projects in southern Thailand, Sri Lanka and the Maldives. Francis said that to ensure donations were spent wisely, PATA and the PATA Foundation were inviting recommendations from the people in the best position to know what is needed - the National Tourism Offices, the regional authorities, local PATA Chapters, as well as local members - to recommend and submit proposals for recovery projects. "Because our focus is on people, we expect proposals will relate to employment opportunities, to training and re-training. In fact, any initiative which will deliver significant benefits to tourism employees suffering work-related difficulties due to the disaster will be considered by the Fund," he said. "Already we have received recommendations on trustworthy agencies we can work with in Myanmar through our members who have offices in the country." The PATA Foundation will ensure that only highly reputable organisations and community-based action groups, including universities, government training institutes, national chambers of commerce, trade associations and specialised agencies are engaged to implement the programmes. "With solidarity we can turn crisis into hope and hope into opportunity," Francis said. "We must never forget that in the world of tourism, people make the difference." 
Source: Economic Times;4.6.2008

6. British Airways renews Amadeus contract
British Airways is extending an IT services agreement with Amadeus until 2017. The new agreement is the continuation of a strategic arrangement which started in 2000 between the two companies, designed to provide the airline with a ‘new generation’ technology platform for the management of passenger services. As a result, Amadeus developed the Altea Customer Management Solution comprising three fully integrated modules: Altéa Reservation for distribution through BA sales outlets, Altéa Inventory for global inventory management and Altéa Departure Control for passenger check-in and flight departure management. BA now uses the Altea Reservation and Inventory systems which work in conjunction with its own website ba.com and revenue management systems.  The new agreement sets out the terms under which the carrier would move to the newly developed Altéa Departure Control - customer management system for passenger check-in, completing the Altéa suite. The airline plans to complete migration to the full Altéa suite in 2012. BA also uses Amadeus e-Ticket Server to manage its e-ticketing operations and Amadeus Flex Pricer to enhance the experience of booking connecting flight itineraries through www.ba.com. Additionally, BA has finalised the evaluation of Altea Departure Control - flight management for flight departure operations, in open competition with other products. BA chief information officer Paul Coby said: “I am delighted that we have been able to extend our strategic relationship with Amadeus which started in 2000. The Altea Reservation and Inventory systems have been great support for our drive to develop our sales and services to customers.”
Source: Financial Times;London;5.6.2008

7. BA ups fuel surcharge on all flights
British Airways has blamed continuing high oil prices for a further hike in its fuel surcharge to a maximum of £218 return for long haul.The rise will come into force on all tickets bought from today (Tuesday) and will hit holidaying families this summer. The surcharge for short haul flights will go up by £3 per flight (£6 return) from £13 per flight (£26 return) to £16 per flight (£32 return).The fee for long haul flights of less than nine hours will increase by £15 per flight from £63 per flight (£126 return) to £78 per flight (£156 return)The surcharge for long haul flights of more than nine hours will rise by £30 per flight from £79 per flight (£158 return) to £109 per flight (£218)BA said it will also increase its fuel surcharges by similar levels in markets outside the UK.These are the latest in a round of fuel surcharge increases imposed by the airline - the last hike was in April.
Source: Financial Times;London;5.6.2008

8. SIA opens new Bangkok lounge
Singapore Airlines’ has opened the SilverKris Lounge at Suvarnabhumi International Airport, Bangkok. The 350 square metre SilverKris Lounge has a capacity of 102 seats. It is located on Level 3 Concourse A, after the immigrations area. The Lounge is designed in modern-contemporary style, with walls decorated in rich timber, with full–height fabric-laminated glass panels to enhance privacy. The high ceiling gives a sense of space, while full-length windows allow customers to enjoy tranquil views of the garden outside, as they relax in seats upholstered in nature-touch fabric or rich leather. The SilverKris Lounge is equipped with 42-inch Plasma televisions, a small business area where passengers can catch up on work and a WiFi network for wireless Internet connection anywhere within the Lounge. The Lounge was designed by Leo International Design Group Company Ltd from Bangkok, and construction was managed by Jim & Hall’s (Thailand) Company Ltd. While waiting for their flight, customers can also read the latest newspapers and magazines, and sample a variety of delectable food, ranging from Singapore delicacies, assorted din sums and sandwiches, a wide choice of sweet pastries, fruits and Haagen Dazs Ice Cream. To complement the food, beverages such as wine, beer, liquor, fresh coconut juice, soft drinks, coffee and tea are served at the Lounge
Source: Financial Express; 5.6.2008

9. Air India Express launches Hyderabad to Dubai service
Air India Express announced the launch of operations between Hyderabad and Dubai effective from Thursday. “The flight will operate three times a week on Tuesdays, Thursdays and Saturdays departing Hyderabad at 1.20 p.m. and arriving in Dubai at 3.20 p.m. (local time). The return flight will depart Dubai at 5.15 p.m. local time and arrive in Hyderabad at 10.20 p.m.,” Capt P. P. Singh, Chief Operating Officer, Air India Express said while addressing a press conference here on Wednesday. The inaugural fare will be Rs 2,500 onwards plus taxes as applicable for a one-way trip and the inaugural round trip will be Rs 5,440 onwards plus taxes. Capt Singh also said that Air India Express is launching flights from Goa to Dubai from June 17. “The company is also looking at starting operations to Kuwait from Kochi, Calicut and Mangalore by July,” he added. Currently, Air India Express has a fleet of 18, 11 owned and 7 leased, Boeing 737-800 aircraft. During the calendar year 2008 it intends to add three more aircraft. Next year it is expecting to take delivery of four more new Boeing 737-800 aircraft.“Once the operations from Goa also start, we will be operating from 16 locations in India connecting 12 international locations,” he said.Capt Singh also said, depending on the occupancy rate of the flights from Hyderabad to Dubai, they are contemplating to increasing the frequency between the two destinations and also connect other Gulf destinations from the city. Last financial year, he said, the carrier carried around 1.8 million passengers and during the current financial year they expect it to touch 2.5 million passengers.
Source: Business Line;5.6.2008

10. Patel to meet PM on aviation fuel price
With domestic airlines looking to curtail flights and going in for greater cooperation among themselves to minimize the impact of rising cost of aviation turbine fuel (ATF) on their bottomline, the Minister for Civil Aviation, Mr Praful Patel, plans to meet with the Prime Minister, Dr Manmohan Singh, to consider ways to improve the situation for the sector. Addressing a press conference, Mr Patel said that he would be meeting the Prime Minister in a week or so to make a presentation on the “entire problem” being faced by the sector. “The Government is very concerned about the financial health of the sector. Rising fuel prices will hurt the airlines and sector in a big way. All airlines without exception are speaking to the Government and expressing helplessness at the situation and the inability to pass on the entire increase in ATF cost to the passengers by raising the fuel surcharge,” the Minister said. At the moment ATF constitutes 40-45 per cent of the operating cost of most domestic airlines. The sector has been reeling under mounting losses with cost of ATF increasing manifold in the past few months. On Saturday domestic oil companies increased ATF price by more than 18 per cent, a move that saw domestic airlines hike fuel surcharge by up to Rs 550 to Rs 2,900. Despite the increase in fuel surcharge, the industry is expected to post losses in excess of Rs 2,000 crore, according to some analysts. Stating that the Government does not have any “concrete plans or steps” to help the aviation industry at the moment, the Minister said that something needed to be done as aviation has a key role to play in the development of the economy. “There are no plans of doing away with the route dispersal guidelines. The Group of Ministers looking into the civil aviation policy will have to decide whether the existing norms for flying abroad should be changed to help the industry. We have written to the Empowered Committee of State Finance Ministers asking that ATF across the country attract a standard 4 per cent duty, which should be a major relief for the airlines,” the Minister said. Meanwhile, industry is considering various options to curtail losses. “All airlines need not do ground services or have a huge engineering department to look after their individual fleets. We can all cut costs if rules are changed and say IndiGo Airline engineers are also allowed to look after the aircraft of Kingfisher airlines since both operate the Airbus A-320,” said an airline official. The Government could, however, do its bit by reducing the landing and parking charges at airports as also the navigation fees which are among the highest in the world, another airline official said. “These steps may seem small but will go a long way in reducing the cost structure of airlines operating here,” airline officials said.
Source: Business Line;3.6.2008

Prepared by
Jennifer Kumar, BBA (NAU) Alumni
Skyline Business School
Hauz Khas Enclave, New Delhi 110 016
Tel: 2686 4848, 2652 4399
http://www.skylinecollege.com