Tag: travel

  • AirAsia bags Airline Treasury Team of the Year award

    AirAsia bags Airline Treasury Team of the Year award

    AirAsia has bagged the Airline Treasury Team of the Year at the Asia Pacific Aviation 100 awards.

    In a statement today, the low-cost carrier said the Airline Economics Magazine Aviation 100 awards recognize the air travel industry’s most outstanding performers, as well as the most innovative and successful finance and leasing deals,  closed in the last 12 months.

    AirAsia said it won the Airline Treasury Team of the Year based on the company’s efficient fundraising deals that translated to strong financial performance as well as impressive fleet expansion activities.

    In the 2018-2019 year, AirAsia sealed two major aircraft portfolio deals with BBAM and Castlelake LP for a combined US$3.6 billion.

    The completion of the two transactions involved more than 100 aircraft and proved the team was not only efficient in their fundraising efforts, but also able to design financing structures which were not prevalent in typical aircraft financing transactions.

    This year, AirAsia also made global headlines with two significant commitments for new aircraft.

    At the 2019 Paris International Airshow, the company announced it would upsize its future Airbus single-aisle fleet, by converting orders for 253 Airbus A320neo to the larger Airbus A321neo.

    In August 2019, its long-haul affiliate AirAsia X expanded its order book with Airbus by signing a US$5 billion agreement for 12 Airbus A330-900 and 30 A321XLR aircraft.

    AirAsia Group Bhd chief executive officer Tan Sri Tony Fernandes said the sale of its aircraft leasing operations was the culmination of a long-running strategy to dispose of the group’s physical assets, and by doing so, it was able to monetize the aircraft at high prices and reduce residual risk.

    “This strategy has allowed us to invest that cash into a fleet expansion program and our many digital ventures, while at the same time provide shareholder returns and accelerate our vision to become Asia Pacific’s leading travel and financial platform company.

    “This would not have been possible without my incredible aircraft finance team, and I can’t think of anyone else more deserving to win Airline Treasury Team of the Year,” he said.

  • Asia Pacific to drive global travel-retail sales

    Asia Pacific to drive global travel-retail sales

    A new report has shown that the Asia Pacific region will continue to be a major driver of global duty-free and travel retail sales.

    According to the study, titled ‘Economic Impact Report of Duty Free and Travel Retail in Asia Pacific,’ the Asia Pacific travel retail industry generated an estimated US$36.2 billion in 2017 which accounted for 45 per cent of total global duty free and travel retail sales, and is projected to maintain its global market leadership at an estimated 8.7 per cent annual growth rate between 2017 to 2022.

    The report identifies several key trends in the industry across Asia Pacific. It finds that East Asian markets are driving growth, with South Korea being the world’s largest duty-free market accounting for nearly US$12 billion in sales. China and Japan are also globally significant markets, with Mainland China anticipated to strengthen its position as the second biggest player in the region.

    Findings also show a growing diversity in product demand and observe that duty-free is becoming increasingly digital with shoppers in the Asia Pacific region increasingly looking to digital platforms to facilitate their purchases. There is also a marked channel diversification beyond aviation – downtown duty-free in Asia Pacific comprises a significant portion of sales for all land channels, and ocean cruising is an emerging sector in Asia.

    The study was commissioned by the Duty-Free World Council (DFWC) and the Asia Pacific Travel Retail Association (APTRA).

    Amid increased regulations, the report aims to highlight the impact of duty free and travel retail sales in real economic terms, while also calling out the trends affecting the increases.

    “Asia Pacific is registering exceptional growth in duty-free and travel retail sales. We are also seeing the regulatory landscape become more complex and dynamic across the various product categories,” said, Duty-Free World Council president Frank O’Connell. “This report is an important investment on the part of DFWC and APTRA in getting the data that will help us engage policymakers and regulators in protecting the sustainable growth of our industry.”

    “The report highlights the significance of the Asia Pacific region to global duty-free and travel retail, and on a macro level to economies in the region through job creation and contribution to GDP,” said the president of APTRA Grant Fleming. “As the industry body that supports, protects and nurtures the growth of the travel retail industry, we are encouraged by the positive trends indicated by the report findings.

    “Understanding the industry’s size and its impact on the regional economy as well as the underlying impetus for emerging travel retail trends is critical to ensuring industry relevance and long-term growth. As the travel retail landscape evolves, the regulatory environment is evolving too. APTRA looks forward to applying the report findings and working with regional stakeholders to help frame and develop policies that will contribute to the sustainable growth of the industry in years to come.”

  • Tigerair expands PBH contract with AJW Group

    Tigerair expands PBH contract with AJW Group

    Australian low-cost airline Tigerair has extended Power-by-the-Hour (PBH) contract with AJW Group. AJW Group specializes in the global management of aircraft spares.

    The company has been providing an integrated component pooling, repair and logistics support program to Tigerair since 2014. The PBH agreement covers Tigerair’s fleet of A320 aircraft.

    Under the support program, AJW will satisfy the airline’s material requirements across a variety of component groups including airframe and engine LRU’s, major assemblies, wheels and brakes, auxiliary power units (APU), thrust reversers and consumables.

    Tigerair is an Australian low-cost airline headquartered in Melbourne with two additional established service bases at Sydney and Brisbane Airports. Tigerair operates a fleet of Airbus A320 and Boeing 737 aircraft, across 21 domestic routes out of 12 destinations around Australia.

    Christopher Whiteside, chief executive officer of AJW Group said: “Tigerair was AJW’s first major contract in Australia and our work over the past five years has demonstrated the Group’s strength across the Australasia region.”

    Over the past five years, AJW Group has successfully delivered improved operational efficiency and cost savings, which according to AJW Group, are ‘key focus areas for the airline’.

  • E-sports set to fly high with AirAsia backing

    E-sports set to fly high with AirAsia backing

    E-sports are set to take off in a big way with the two head honchos at AirAsia giving their full-fledged support.

    According to Allan Phang, president of the AirAsia All-Stars E-Sports Club, Tan Sri Dr Tony Fernandes, Group CEO, AirAsia Bhd, and Datuk Kamarudin Meranun, executive chairman, AirAsia Bhd, have been very “visionary and supportive” when it comes to e-sports as the low-cost carrier is among the first airlines to back e-sports on a regional scale.

    AirAsia was the main strategic partner of the World Electronic Sports Games Southeast Asia (WESG SEA) Regional Finals, which concluded at the Quill Convention Centre in Kuala Lumpur last weekend.

    Phang said AirAsia made its first foray into e-sports in 2017 with the setting up of the AirAsia All-Stars E-Sports Club.

    “The club had about 10 members upon its inception, but now there are more than 200 members,” said Phang, underlining the surging popularity of e-sports and its future direction.

    As Agri Mind, the organizers of the WESG SEA Regional Finals, have a long-standing relationship with AirAsia, they were able to push through the initiative for the low-cost carrier to come onboard as a partner.

    “AirAsia provided support in terms of flights (to the gamers), which was in support of the e-sports ecosystem, in line with the government’s initiative,” said Phang.

    He added that there are four key verticals of AirAsia’s role in the burgeoning e-sports arena: employee engagement, employer branding, e-sports tourism and supporting the eco-system by way of sponsorship through teams and events.

    “AirAsia is targeting the next generation of consumers as it realizes that the government wants to connect with the youth e-sports generation,” said Phang.

  • Vietjet to expand fleet with 20 long-range Airbus jets

    Vietjet to expand fleet with 20 long-range Airbus jets

    Budget airline Vietjet has ordered 20 Airbus long-range A321XLR aircraft to expand its international reach as Vietnam’s aviation market keeps growing.

    With a range of up to 8,700 kilometers, the aircraft will serve Vietjet’s plans to expand its international flights network, the airline said in a statement Thursday.

    The contract increases Vietjet’s order book with Airbus to 186 aircraft, with the first A321XLR to be delivered in 2023.

    The single-aisle A321XLR will “modernize Vietjet’s fleet as we look to strongly grow our international flight network,” Vietjet CEO Nguyen Thi Phuong Thao said. The airline currently operates 66 Airbus jets.

    Also Thursday, the carrier ordered two A320/321 aircraft simulators for pilot and technician training on top of the one simulator it already has.

    A321XLR’s range is 15 percent more than the previous model A321LR, it also burns 30 percent less fuel per seat compared with older generations.

    Vietjet’s order follows similar moves by other Vietnamese airlines to expand their fleet as air travel heats up. Private airline Bamboo Airways has ordered 50 narrow-body Airbus A320neo aircraft and is expected to receive the first next month, while national flag carrier Vietnam Airlines plans to get 50 new narrow-body aircraft by 2025.

    Vietnam’s fleet of over 200 aircraft last year could quadruple by 2038, aircraft maker Boeing said last week.

    Last year, the country’s 21 state-run airports served 103.5 million passengers, up 11 percent year-on-year, and the figure is set to rise to 112 million this year, according to the Airports Corporation of Vietnam.

  • AirAsia starts Bacolod-Manila flight

    AirAsia starts Bacolod-Manila flight

    Recognizing the huge tourism potential of Bacolod, low-cost carrier AirAsia has started flying to the Negros Occidental capital city as its 12th and only domestic destination opened this year.

    AirAsia chief executive officer Ricardo Isla said in a press conference at the Bacolod-Silay Airport that they are honored to be part of the city not only in providing socio-economic programs but also in boosting tourism.

    Isla said the airline knows Bacolod City will be one of its fast-selling destinations. Thus, it will continue to expand and build more programs in the near future.

    “This new route will pave the way for us to connect and promote this wonderful destination for its charming location, and of course its local food delicacies and beautiful smiles,” he said.

    He added that now that AirAsia is in Bacolod, “we are committed to offer our affordable products and services so everyone can fly.”

    Initially, the airline has six flight schedules daily — three each for the Bacolod-Manila route and vice versa.

    Its officials announced that ever since they started accepting bookings weeks ago, there were already around 10,000 booked seats for these flights scheduled from the late part of October to December this year.

    Given the initial bookings, they believe that there is a demand in Bacolod City and Negros Occidental.

    Isla, however, said because of their application that has been approved by the airport’s Terminal 4 in Manila with regards to parking and runway slots, the airline has maximized its resources or opportunities for a total of six flights from Manila-Bacolod and vice versa.

    He pointed out that every November and December, there is an increment of about 20 to 30 percent from the regular months.

    “So we are really expecting huge traffic not only for Manila-Bacolod, but also with our 11 other destinations,” Isla said, adding that given these figures, “if we can fly same with other provinces, it should be eight flights here.”

    The 10,000 booked passengers are only about 15 percent of AirAsia’s overall capacity of 64,000 for two months, particularly for its newest domestic route.

    Thus, it can still cater to over 50,000 more passengers, a figure which the airline company is upbeat to cover. Gilber Simpao, chief commercial officer of AirAsia, said the 10,000 booked seats for the next two months is a good start.

    Simpao said they can compare Bacolod versus other flights and that it is ahead of the curve.

    “We’re confident that it’s going to be a healthy route,” he added.

    For Bacolod City Mayor Evelio Leonardia, who was also at the press conference, having more players will always be healthy for the consumers, which is something they expect to happen.

    Citing the reputation of AirAsia and the impression toward it as less expensive, Leonardia said its presence will somehow equalize the playing field.

    “We are expecting AirAsia to be a game changer in Bacolod,” he stressed, adding that the more convenient for the people and more schedules of flights, the better for the city.

    In his speech during the welcome program, the city official said “this is a very much anticipated landing in Bacolod.”

    Leonardia said the 10,000 already-booked passengers are indications of good things to come.

    As he welcomed the new “member of the family,” Leonardia said AirAsia will change the complexion of things.

    “We would like to thank you for responding at a time when there was an uproar over pricing of airfares,” the mayor said, as he expressed hopes that AirAsia’s presence will somehow affect the so-called law of supply and demand.

    For AsiaAsia, making Bacolod City as its newest destination is both a personal choice and corporate decision.

    Lawyer Joseph Omar Castillo, chairman of the Board, said Deputy Speaker Michael Romero, whose family has the largest share at AirAsia, has close relations with the city officials.

    Castillo said the company also sees Bacolod as one of the key cities in the Visayas.

    “So we really wanted to be here for a long time,” he said, adding they waiting for a slot for a long time. “Good thing that we were given.”

    The airline opened only two new destinations this year. Aside from Bacolod-Manila, it also started flying to Osaka, Japan.

    The local government, it recognizes that tourism is going to be the biggest industry in the world. Thus, its programs and plans are also aligned to that.

    Leonardia said AirAsia’s presence will increase the tourism volume for sure.

    “Bacolod is trying to grow, trying our best to be one of the most progressive cities in the Philippines. Let’s grow together,” he added.

    The airline company takes pride in its purpose as a low-cost carrier.

    Simpao said AirAsia believes that flying is not just for rich people as they want everyone to be able to afford to fly.

    He said that when they looked at the market, Bacolod was one of the biggest unserved markets in their network.

    “People from Bacolod should be able to afford good value travel. So we need to be here,” Simpao added.

    Meanwhile, Isla pointed out that the price range varies depending on the timing. Meaning, if the booking is closer to the scheduled flight and if it is during the high-demand period then the airfare cost goes higher, he said.

    If the cost is lower compared to other airlines, it would be five to 10 percent but it still varies depending on the timing, Isla said.

    In terms of on-time performance, AirAsia has 80 percent rate.

    “Hopefully, we will maintain it considering that there is going to be an expected higher traffic in all our airports which most likely we will not encounter that problem in Bacolod,” he added.

    Potential hub

    The airline revealed that two to three more domestic destinations will be added probably by the first quarter of 2020.

    For other areas connecting to the city, officials said they are studying Cebu-Bacolod and Clark-Bacolod routes.

    AirAsia currently has four hubs in the country, namely Manila, Clark in Pampanga, Kalibo in Aklan, and Cebu.

    When pressed if they are looking at Bacolod as another hub.

    “The advance bookings it has are already indications that the focus right now is travelers going to Bacolod,” Isla said, stressing that “for now, there’s no plan but that is actually an option for the future.”

  • AirAsia X plans for direct flights into Kazakhstan

    AirAsia X plans for direct flights into Kazakhstan

    AirAsia X , the long-haul arm of AirAsia Group Bhd, has met with the Civil Aviation Committee (CAA) of Kazakhstan to discuss the possibility of the airline introducing a direct flight from Malaysia to the Central Asian country.

    The New Straits Times learnt that the meeting was held between AirAsia Group executive chairman Datuk Kamarudin Meranun, AAX chief executive Benyamin Ismail and Kazakhstan CAA chairman Talgat Lastayev as well as representatives from Almaty, Nur-Sultan and Karaganda airports and Kazakhstan embassy to Malaysia.

    The meeting includes discussions on the potential for AAX to introduce a direct route from Kuala Lumpur to Kazakhstan as well as a presentation on the development of the aviation industry in Kazakhstan and the country’s adoption to the Open Skies policy.

    “The interest is there but we must do further research on how to introduce this plan. They (AAX) have expressed interest to use Kazakhstan as a hub for them to fly to the US and Europe,” a source said.

    The potential US and European cities that AAX might fly into include New York, Rome, Milan and Nice.

    The meeting was held at AirAsia’s RedQ office in Sepang on Tuesday.

    Recently, Kazakhstan President Kassym-Jomart Tokayev asked the country to adopt Open Skies policy and expand its international routes while attracting more foreign airlines.

    The sources said that although the move will pose a big competition to Kazakhstan-based airlines, it was time to open the country to the world with more flight connections.

    The move will also help to develop the Astana International Financial Center as well as the country’s tourism industry.

    “Kazakhstan is very excited to have AAX to introduce a direct flight, but of course this is all preliminary. But on Kazakhstan’s side, the country is ready to fully support them (AAX),” another source said, adding that the discussion also included incentives that would be given to the airline such as airport and tariff fees, and marketing support for flight promotion.

    Currently, the only direct flight available is from Almaty to Kuala Lumpur and vice versa via Kazakhstan’s national carrier, Air Astana.

    AAX would be the first international budget airline to fly into Kazakhstan should the carrier introduces the direct flight.

    Meanwhile, Kamarudin expressed his gratitude to Kazakhstan for showing strong interest and offering attractive airport incentives for the airline to fly to various airports in the country.

    “Having been to Kazakhstan, both Nur-Sultan and Almaty, it definitely suits our expansion plan and we have agreed in forming a working team from both parties to seriously explore this possibility.”

    “I would not be surprised to see the flights into Kazakhstan from any of our various hubs some time next year,” he said yesterday.

  • AirAsia to link Lombok with Surabaya, Yogyakarta

    AirAsia to link Lombok with Surabaya, Yogyakarta

    Low-cost carrier AirAsia is set to launch new routes to Surabaya in East Java and Yogyakarta from Lombok, West Nusa Tenggara.

    The inaugural flight from Lombok to Surabaya will depart on Nov. 25 and be available four times a week, namely on Mondays, Wednesdays, Fridays and Sundays.

    The flight from Lombok International Airport Praya leaves at 8:35 p.m. local time and arrives at Juanda International Airport at 8.40 p.m. local time. The Surabaya-Lombok route, meanwhile, departs at 9.05 p.m. local time and arrives at 11.20 p.m. local time. Surabaya is one hour ahead of Lombok.

    The Lombok-Yogyakarta route will begin on Nov. 26 with thrice-weekly flights, namely on Tuesdays, Thursdays and Saturdays.

    The flight from Lombok will leave at 8.35 p.m. local time and arrive at Adisucipto International Airport in Yogyakarta at 9.10 p.m. local time. The return flight from Yogyakarta to Lombok will depart at 9.35 p.m. local time and arrive at 12.05 a.m. local time. Yogyakarta is also one hour ahead of Lombok.

    Both routes will use the Airbus A320, which has a capacity of 180 passengers.

    Veranita Yosephine, deputy CEO of AirAsia Indonesia, said the new routes were expected to boost Lombok’s tourism.

    “The routes also provide options for travelers in Lombok who wish to extend their vacation to destinations in East Java and Yogyakarta, and vice versa,” she said in an official statement.

    Tickets are available at the airline’s official website and app, with prices starting from Rp 446,000 (US$33.91). Promotions are available until Nov. 25 for the travel period of Nov. 25 to March 28, 2020, for AirAsia BIG members.

    As with AirAsia domestic routes, passengers are allowed free luggage of up to 15 kilograms on both routes.

  • Flight Centre fined $252,000 for misleading promotions

    Flight Centre fined $252,000 for misleading promotions

    Flight Centre Travel Group has paid $252,000 in fines after misleading customers with unclear promotions during the 2018 Christmas and 2019 Easter periods.

    The travel group offered customers who spent $1500 on a holiday package during these periods a $250 voucher to use for their next holiday – though failed to disclose that the next holiday needed to be worth more than $5000 to qualify.

    According to the ACCC, over 35,000 customers received these vouchers as part of the promotions.

    “We are concerned that consumers were enticed to purchase their holiday through Flight Centre to obtain a voucher they were not able to use without spending another $5000 when this was not adequately disclosed,” ACCC Commissioner Sarah Court said.

    “Businesses are warned that the terms and conditions of any deal or promotion must be prominent so that consumers understand what is involved in redeeming the offer.”

    In addition to the fine paid, Flight Centre has also waived the $5000 minimum spend condition and has extended the redemption period for the vouchers. Those earned during the 2018 Christmas period will be extended from 30 June 2019 to 31 December 2019, while those earned during 2019 Easter will also be extended to 31 December 2019.

    The ACCC notes that the payment of a penalty specified in an infringement notice is not an admission of a contravention of Australian Consumer Law.

    Earlier this year, the ACCC also targeted online retailer Kogan for misleading promotions, stating it made “false or misleading representations about a 10 percent discount promotion”, and would be taking the retailer to court.

    The consumer rights commission alleged Kogan had advertised a 10 percent discount on certain products, though raised the price of around 600 products before the promotion began – in some cases by at least 10 percent.

    “We allege that Kogan’s advertisements were likely to have caused consumers to think they were getting products below their usual price,” Court said in a statement in May.

    “In fact, Kogan had inflated product prices which we say created a false impression of the effective discount.”

    At the time, Kogan denied the allegations, stating they ignore critical facts and matters that are relevant to the situation.

  • AirAsia X’s 3Q flight frequencies fail to boost overall capacity

    AirAsia X’s 3Q flight frequencies fail to boost overall capacity

    AIRASIA X Bhd’s additional flight frequencies in the third quarter of the year (3Q19) were insufficient to boost overall capacity, MIDF Amanah Investment Bank Bhd said.

    The long-haul affiliate of low-cost carrier AirAsia Group Bhd increased flight frequencies to Gold Coast, Sydney and Melbourne to cater for increased demand following the school-term holidays in Australia.

    However, this was insufficient to boost overall capacity, causing AirAsia X’s average stage length to remain flat on a yearly basis between July and August this year.

    In 3Q19, AirAsia X’s average seat per kilometer (ASK) declined by 3% year-on-year (YoY), outpacing the 2% YoY dip in revenue per kilometer (RPK).

    “This was due to seasonal capacity management which saw the total capacity (-3% YoY) decline more than the number of passengers carried,” MIDF said in a research note yesterday.

    The destinations involved were Sapporo and Taipei in response to weaker demand during the leanest season of the year for these routes.

    Meanwhile, AirAsia X Thailand recorded a 32% YoY increase in passengers carried in 3Q19, underpinned by additional seat capacity and the inauguration of the fifth Japanese destination, Fukuoka, on July 2019.

    ASK grew at a faster pace of 48% YoY due to high capacity, leading to a decline of 10 points in load factor to reach 77% in 3Q19.

    MIDF forecasts a loss of RM8.1 million for AirAsia X in the financial year ending Dec 31, 2019 (FY19), and lower earnings of RM45.6 million for FY20.

    “We are imputing a lower jet fuel estimate as our Brent crude oil estimate for FY19 has been lowered to US$63 (RM264.60) per barrel (previously US$70 per barrel).

    “Nonetheless, the effect of lower estimated fuel expenses is moderated by a higher US dollar to ringgit rate of 4.15 (previously 4.08). We have also taken into account lower growth in capacity amid the group’s ongoing network rationalization exercises in its key markets,” the research house said.

    Moving forward, lower passenger service charges (PSC) of RM50 for international departures from Asean will deliver an additional boost to the current traveling trend.

    The PSC was revised last month for passengers traveling outside of Asean from RM73 to RM50, effective Oct 1, 2019.

    “Notwithstanding this, we believe the ongoing capacity deployment will remain a headwind for the rest of FY19,” MIDF added.

    The adoption of the Malaysian Financial Reporting Standard 16 will be a hurdle to AirAsia X, since the majority of the group’s fleet are leased, with gains from lower interest to be realized beyond the fifth-year of the leased term.

    MIDF maintained a Neutral call on the low-cost long-haul carrier with a target price of 17 sen per share based on the adjustment in earnings.

    AirAsia X share price closed one sen higher yesterday at 17 sen, valuing the airline at RM705 million.

  • AirAsia sees in-flight Wi-Fi as next income source

    AirAsia sees in-flight Wi-Fi as next income source

    AirAsia has been exemplary in using digital and disruptive technologies in increasing its ancillary income, including the introduction of in-flight Wi-Fi, which is expected to create a US$130 billion global market by 2035, according to London School of Economics research.

    AirAsia is the pioneer of low-cost airline in-flight Wi-Fi in the region.

    “Currently, we have about slightly over 50% of our aircraft (in Malaysia) Wi-Fi-enabled. We expect AirAsia Wi-Fi to be installed fleetwide in all AirAsia Malaysia in 2020,” chief executive officer Riad Asmat said.

    The other AirAsia companies are expected to follow suit, he said.

    “Wi-Fi these days is like oxygen. The moment you sit in a place the first thing we ask is if it has Wi-Fi and it is slowly gaining traction in the aviation sector,” he told Bernama when asked on the growing sector.

    For the Malaysian operation, the flights are all within the one-to four-hour range.

    “Within the AirAsia Wi-Fi ecosystem, the airline has entertainment, we have our e-shop, digital in-flight magazine and some level of entertainment, especially for kids. Besides enhancing the experience of passengers, the service also enables them to connect with their loved ones on air,” said Riad.

    “Hooking up to the AirAsia” Wi-Fi ecosystem is free (browsing kids entertainment, e-shop and magazine) but if you want to use your social media or do real work, then you’ve got to pay and I believe our rates are competitive as compared with other airlines around the region,” he said.

    A check on the service revealed that the Wi-Fi plans range from RM9 to RM58, with the most basic plan capped at 10MB. There is also a top-of-the-line 200MB plan, which is best for streaming. Riad said more than 30% of its passengers have accessed the AirAsia Wi-Fi services and the figure is expected to hit 50% soon.

    Knowing AirAsia, Riad was also quick to point out that incorporating a lot of its services in the AirAsia Wi-Fi ecosystem would also help them cut costs via fuel-saving.

    “Once the aircraft is Wi-Fi-enabled the in-flight magazine (hardcopy) should not be there. It is fuel-saving,” he said, adding that although the hardcopy uses some of the lightest paper material available, going 100% digital would save kilos for every fleet.

    Hence, Wi-Fi is crucial for AirAsia’s business, he said, noting “it is part and parcel of embracing technology.” Riad, however, said the portion of WiFi contribution now to its overall ancillary income is negligible.

    “But the growth potential is phenomenal because once all the aircraft have the service, people start using dependent on the needs of that day. I am sure you can get business out of it, directly and indirectly, especially when passengers browse and make a purchase via OURSHOP,” he said. OURSHOP is AirAsia’s e-commerce platform.

    However, for the service to have a bigger impact on its ancillary income, Riad said it has to remain attractive, noting the company is constantly on the lookout for more content providers.

    AirAsia currently uses the high-speed Ka-band platform, which claims to provide connectivity beyond basic broadband, supporting real-time video, music streaming and more.

    A recent survey by the International Air Transport Association, which represents some 290 airlines comprising 82 percent of global air traffic, revealed that some 53 percent of surveyed passengers found Wi-Fi important to have.

    The importance is highest in Africa (71 percent), followed by Latin America (68 percent) and the Middle East (67 percent), with the lowest in Europe (44 percent) and North America (49 percent).

    The 2019 Global Passenger Survey was based on 10,877 responses from passengers across 166 countries.

    “With the availability of Wi-Fi connectivity continuing to have a direct impact on the overall travel experience, adopting the latest onboard Wi-Fi technology continues to be an effective way for airlines to distinguish their product offering,” said the association.

    Besides WiFi, Riad said there is also a huge potential to increase ancillary income through its cargo business Teleport, which is the second-largest cargo airline group in Southeast Asia by capacity after Singapore Airlines Cargo as of July 2019, according to the Centre for Aviation.

    “We’re currently utilizing only approximately 15% of the available belly space for cargo, in which approximately 40% of our revenues are generated from connections through our network,” he said.

    It delivered approximately RM206 million in revenue in the financial year 2018 and is on track to deliver approximately RM400 million in financial year 2019.

    “We have invested in technology, with the goal to deliver the same day as standard anywhere within Southeast Asia. Airports are at the heart of this ability to do so,” he noted.

    Riad said AirAsia foresees bigger growth in the small parcel business.

  • Tigerair eyes Davao-Taipei flights

    Tigerair eyes Davao-Taipei flights

    Another international air link will be added to Davao City as Tigerair Taiwan plans to service the Davao-Taipei route within the year or early 2020.

    Department of Tourism Davao Regional Director Tanya Rabat-Tan revealed that the new route will boost the region’s tourism, trade, and investments

    She said a group of 12 Taiwanese travel agents and an executive from the airline visited Davao Region in July.

    “We tour(ed) them around the city and region. The highlight of our tour was our beach destinations especially in Samal, Davao del Norte,” she said during the agency’s presentation of its accomplishments and updates on Monday, October 7, at Seda Abreeza Hotel in Davao City.

    The regional director said the Taiwanese visitors were impressed with Davao’s tourism destinations.

    “They appreciate more about the people’s hospitality and the food. The tour has strengthened their intention to set up Davao-Taipei route,”she said.

    Rabat-Tan added that Tigerair Taiwan initially planned to launch a chartered flight only but later on decided to push regular direct flights due to the routes viability.

    “If it is not going to push through this year, it will be early next year. Also, we are expecting another visit from them any time within the year but most likely a bigger group will be coming,” she said.

    Sustaining flights

    Following the launch of more direct flights to the city, Rabat-Tan acknowledged the necessity of programs and plans to sustain these flights.

    Trade and tourism roadshows and missions are already set to promote Davao Region and Mindanao as a whole to international markets where Davao has direct link and vice versa.

    “A mission to Taipei composed of Davao tour operators and other stakeholders including city officials is presently being organized. It is more like a Business-To-Business (B2B) meeting. We are in constant communication with the Taiwan group,” she said.

    She also mentioned a Manado, Indonesia travel roadshow with Mindanao Development Authority (MinDA) and Department of Trade and Industry (DTI) is happening this month or in November.

    How are other flights doing?

    Rabat-Tan shared that, in a meeting last week, the Qatar Airways country manager said he was happy with how the Davao-Doha route is performing. She said plans of increasing the flight frequency of the route is being discussed.

    Qatar Airways’ Doha-Davao route, the first long-haul flight in Mindanao, was launched on June 18. It is operating once a week, every Friday.

    Meanwhile, around 50 travel agents from Hong Kong are also set to visit Davao City sometime in November to promote the Davao-Hong Kong link.

    She also shared that Davao-Tokyo route is currently being discussed with the City Government of Davao and Davao City Chamber of Commerce and Industry, Inc.

    At present, Davao City has five international direct air links – Singapore; Hong Kong; Quanzhou, China; Qatar; and Manado, Indonesia.

    These routes are currently being served by six airlines namely Cebu Pacific, SilkAir, XiamenAir, Qatar Airways, Cathay Dragon, and Garuda Indonesia.

  • Thai Airways eyes passenger growth

    Thai Airways eyes passenger growth

    Financially struggling Thai Airways is eyeing 8% in passenger growth by year’s end as it plans to launch new routes.

    Nond Kalinta, Vice President of Sales at Thai Airways International Public Company Limited (THAI) told the media the airline’s financial situation is likely to improve. The airline’s debts by the end of the year will be reduced to under six billion baht thanks to the steady rise of passengers throughout the year.

    Over the past nine months, the airline has achieved passenger growth of 4%-5%, which is higher than last’s year figure year-on-year. The national carrier is hopeful of growth as projected passenger numbers for the last quarter shows an 8% uptick.

    Mr Nond said more routes will be launched by the end of the year, especially popular routes to Europe such as Bangkok-Vienna, Bangkok-Brussels, and Bangkok-Paris, as the airline seeks to make the most of the recent improvement in passenger numbers.

    Mr Nond said business will be brisker next year thanks to the well-performing baht as well as positive signs from the economy. He added that THAI has already seen advanced bookings for the first quarter of next year. Next year, THAI will also place emphasis on routes to East Asia, maintain its hold over Europe, and nourish growth in emerging markets such as India.

    “The Japan route has been a potential market for some time now, so more routes to Japan will be available to serve the needs of a certain group of passengers,” he said.

    “Also, flights to Europe should not be ignored as 80% of these flights have been booked in advance.”

  • AirAsia’s inflight WiFi is getting faster

    AirAsia’s inflight WiFi is getting faster

    WiFi on planes is the next-gen convenience, or potential annoyance, depending on your attitude to people being ‘connected’ all around you. But for business people, parents with families or bored flyers, it will be a welcome addition to the low-cost flying experience.

    Now, passengers, onboard AirAsia can look forward to an “enhanced inflight entertainment and connectivity experience” with the low-cost airlines’ recently upgraded WiFi services.

    Six AirAsia Malaysia planes and two aircraft operated by Thai AirAsia have now been equipped with Inmarsat’s high-speed Ka-band platform, GX Aviation. AirAsia Group president (RedBeat Ventures) Aireen Omar said this development is the “next logical step” for the airline.

    AirAsia formerly carried a system called ‘Rokki’ but has phased that out in preference to the newer, faster system.

    “As the pioneer of low coast inflight WiFi in the region, we are always looking for ways to redefine the digital inflight experience for our guests.”

    Guests will be able to stay connected throughout their journey and perform data-intensive activities, including live streaming. Ka-band claims to provide connectivity beyond basic broadband, supporting real-time video, music streaming and more.

    The AirAsia WiFi Internet plans range between 9 Ringgit (65 baht) and 58 Ringgit (420 baht) with the most basic plan capped at 10MB speed. There is also the top of the range 200MB plan which is best for streaming.

    The service will be rolled out to the rest of the Air Asia fleet over the next 12 months.

    The Thaiger tried out the new system on a flight from Kuala Lumpur to Phuket on Tuesday. We were only using the 10MB speed internet but was perfectly adequate for our work and saving documents in the ‘cloud’.

  • Vietjet Celebrates Autumn with Hundreds of Thousands of Promotional Tickets

    Vietjet Celebrates Autumn with Hundreds of Thousands of Promotional Tickets

    Vietjet has announced its latest deal with hundreds of thousands of promotional tickets going from S$0 to travel around Asia in the Autumn season.

    Promotional tickets are available for purchase on Vietjet’s official website or on the “Vietjet Air” mobile app from now until 10 October 2019, between the golden hours of 1.00 pm – 3.00 pm (GMT+8). The promotion includes daily return tickets from Singapore to Hanoi and Ho Chi Minh City, and all international routes between Vietnam and Japan, South Korea, Taiwan, Hong Kong, India, Indonesia, Thailand, Malaysia, Myanmar and Cambodia. All routes operated by Thai Vietjet are also applicable for this promotion.

    Vietjet Vice President Nguyen Thanh Son said, “With an expanding flight network across Asia that includes convenient departure timings with more than 400 flights daily and super-saving tickets priced from just VND0, VND99,000, VND199,000, etc., customers can easily fly anytime and anywhere. Vietjet aims to bring millions of flying opportunities to everyone, meeting air travel demands of passengers, pioneering new direct routes such as Da Nang – Taipei/ Tokyo (Haneda), Ho Chi Minh City – Bali; Ho Chi Minh City/ Hanoi – New Delhi, which helps save transit time for passengers and give them more time to experience the destinations. Besides Hanoi, Ho Chi Minh City and Da Nang, travelers from other localities like Hai Phong, Nha Trang, Phu Quoc, etc. can now easily take direct flights to Japan, South Korea and Taiwan.”