VietJet Air to Launch in December
Vietnamese start-up carrier VietJet Air has announced that it will launch commercial flights on the country’s busiest domestic route between Ho Chi Minh City and Hanoi from December 25. The privately-owned carrier secured its operating licence in November 2007 but it has taken it over four years and various legal and political obstacles to formalise its inauguration. The airline will operate three Airbus A320 which are being acquired from lessor ALAFCO and will initially offer a twice daily basis between Vietnam’s two largest cities; increasing to three flights per day from January 10, 2012. It has also revealed plans to introduce flights between Ho Chi Minh City and Da Nang from February 1, 2012 but it has not yet formalised a schedule for this route, while links to other destinations in Vietnam and Southeast Asia are expected to be launched from the middle of 2012 when the last of the A320s is delivered. There are already more than 47,000 seats on offer in each direction between Hanoi and Ho Chi Minh City with more than 200 weekly flights, many of which are operated using widebodied equipment. Vietnam Airlines has the largest share of this capacity (78.9 per cent), but Pacific Airlines also provides up to eight flights per day and Air Mekong has almost 20 rotations per week using its Bombardier CRJ900 regional jets. An estimated 3.2 million O&D passengers travelled on the route in the last year, a growing market up 13.2 per cent on the previous year. Average one-way air fares have remained stagnant at $264 across the last two years but will likely now take a dip as the low-cost entrant enters the route and the established carriers reduce fares to maintain their own market share.
DFW International and Taipei Taoyuan Agree Cooperation
Continuing a growing trend in the airport business, senior executives from Dallas Fort Worth (DFW) International Airport and Taipei’s Taoyuan International Airport (TPE), the largest airport in Taiwan, have signed an alliance agreement designed to allow the two airports to work in close cooperation. The two airports will work collaboratively on business and operational projects with the ultimate goal of jointly bringing direct passenger services between Dallas/Fort Worth and Taiwan. They will also share information and best practices in areas ranging from sustainability to customer service, engineering, airport amenities and airfield operations. "This agreement marks a significant milestone for DFW Airport as we strive to maintain and improve our position as one of the world's most highly regarded airports," said Jeff Fegan, Chief Executive Officer, DFW International Airport. "We have a lot to gain and a lot to share with our new partners from Taoyuan International Airport, and we look forward to a future of mutual cooperation." Mr Fegan signed the Memorandum of Understanding with compatriot Samuel Lin at Taoyuan International Airport at the airport operating company’s headquarters near Taipei this week. The sister airport agreement extends the business relationship between Taiwan and the Dallas/Fort Worth area, which includes a sister city alliance forged five years ago. "Through this kind of airport alliance platform, we will learn more from each other," said Samuel Lin, Chief Executive Officer, Taoyuan International Airport. "We will ensure that Taoyuan Airport would continuously grow and upgrade in respect of service quality and service efficiency to all our airline clients."
ANA and Air Nippon to Merge
Japanese carrier All Nippon Airways (ANA) will increase its network and share of its home market when it integrates the activities of its subsidiary division Air Nippon into the mainline business. A meeting of the two carriers’ respective Boards of Directors formalised a merger agreement this week, although the timescale of the deal was not revealed. Air Nippon was established as an independent entity in March 1974 by ANA, Japan Airlines (JAL) and TOA Domestic, initially as Nippon Kinkyori Airways, and launched flights in October the same year. It is based at Shiodome City Center complex in Minato, Tokyo, Japan and operates predominantly short sector routes and flights to isolated islands from Tokyo Narita. In April 2004 the venture started using ANA’s flight numbers as it became more closely aligned with the airline.
AirAsia Reduces Taipei Frequencies From Kota Kinabalu
Low-cost carrier AirAsia is set to reduce its flights from Kota Kinabalu to the Taiwanese capital Taipei from the first quarter of next year. The budget operator currently provides a daily service on the route but will cut this to four flights per week from February 20, 2012 according to the latest update of its GDS inventory. AirAsia competes with Malaysia Airlines on the route, the latter with a daily offering. An estimated 170,000 O&D passengers travelled on the route in the past year with AirAsia accounting for around 64 per cent of this traffic and Malaysia Airlines the remaining 36 per cent. This represents a 30.3 per cent increase in traffic compared to the previous 12 month period, with AirAsia seeing the most notable growth. As the two airlines offer very different products it is no surprise that one-way average fares on the route differ significantly – Malaysia Airlines’ average ticket price is $254 while the budget carrier’s is just $149.
Cebu Pacific Sees Growth at Puerto Princesa
Filipino low-cost carrier Cebu Pacific Airways has revealed that it carried more than 145,000 passengers on its flights to and from Puerto Princesa, Palawan during the third quarter of this year, a growth of 85 per cent compared to the same period last year. The airline offers three daily flights from Manila and a daily link from Cebu to the city, the gateway to the Puerto Princesa Subterranean River National Park, recently named one of the provisional New Seven Wonders of the World. According to Civil Aeronautics Board 1st half 2011 figures, Cebu Pacific captured a 39 per cent share of the total traffic to and from Puerto Princesa, offering 38 per cent of the available capacity. The airline first served the city in March 2003 and is now reporting loads of around 89 per cent on its flights.
Qantas Boosts Capacity in Western Australia
Qantas has today (November 28) introduced its enhanced network in Western Australia by increasing capacity to a number of markets to meet growing demand from regional communities and industries including the resource sector. The airline has based a second Boeing 737-800 at Perth which will replace smaller equipment on a number of domestic routes. “From today we will be increasing capacity from Perth to Karratha, Newman, Paraburdoo, Port Hedland and Broome,” confirmed Rob Gurney, Commercial Executive, Qantas Group. “The changes will see around nine additional return services per week and 3,466 seats per week added to the market and include the upgrade of several services from B717 to B737 aircraft. On an annualised basis, this equates to more than 180,000 additional seats.” Looking in greater detail, the expanded schedule includes the introduction of three additional weekly rotations to Karratha and the replacement of a 717 with a 737 on the existing four flights; four more services per week to Newman; three to Paraburdoo; the upgrade of its Port Hedland route from a B717 to a B737 and the upgrade of one Broome rotation from a B717 to a B737. “Qantas is always focused on meeting market demands and responding with increased capacity, where appropriate. Western Australia is a very important market for Qantas and we will continue to monitor demand to support regional communities, tourism operators and the resources sector,” added Rob Gurney. Only last week the airline’s regional division QantasLink also launched flights between Perth and Geraldton and enhanced its Perth-Exmouth services by introducing Q400 aircraft in addition to Boeing 717s on the route. The airline also confirmed that frequencies on its Perth-Exmouth route will increase in January from two to eleven services per week, subject to final Government and Department of Defence approvals.
AirAsia Boss Hits Out At Malaysian Airport Tax
The Chairman of low-cost carrier AirAsia has hit out at the increase in Passenger Service Charge (PSC) rates that will impact all international flights departing from airports throughout Malaysia from December 1. According to Aziz Bakar, the charge, commonly referred to as ‘airport tax’, is collected by the carrier for Malaysia Airports Holdings Berhad (MAHB) and as it is being added to the price of all tickets, the airline is seen as profiteering from what he describes as not justified. “As a low-cost travel loyalist, we believe that increased cost needs to be justified with good quality facilities and services for everyone, which are definitely not up to par at the moment; space for check-in counters, limited parking space, security, quality of toilets, cleanliness of the facilities are not worth the increase,” he said. According to Mr Bakar, the new charges, which are around 28 per cent higher than previously, could influence the airline’s network strategy. “Travellers in Kuching and Langkawi have demanded for more international routes, but we might not be able to fulfill this as the raised airport tax will decrease the demand for travel. The substantial price of RM65 is almost half the price of our international route fare. This will discourage people from taking holidays and put the tourism industry at a major risk,” he added.
Hainan Airlines to Increase Long-Haul Options
China’s Hainan Airlines is to increase frequencies on two of its long-haul routes from Beijing according to the latest update of its GDS inventory. The carrier will add two additional rotations per week to the Belgian capital Brussels and four more flights per week to Seattle, increasing the latter route to a daily operation. Hainan Airlines currently offers four flights per week between Beijing and Brussels, a route on which it carried around 40,000 O&D passengers during the past year, around 61 per cent of the total O&D traffic. A fifth weekly rotation will be added from March 25, 2012, according to the revised schedule, with the additional sixth flight following from June 29, 2012. For the Seattle route, the existing three times weekly schedule will be increased to four times weekly from March 25, 2012, to five times weekly from May 15, 2012 and then up to a daily basis from June 10, 2012. In the past year Hainan Airlines carried an estimated 40,000 O&D passengers on this service, a route that is aso served by Delta Air Lines, currently on a four times weekly basis.
South Korea and Macau Sign Open Skies
Aviation authorities in South Korea and the special Chinese administrative region of Macau last week agreed an Open Skies arrangement between the two countries following two days of discussions. The liberalisation of the market will allow airlines from either country to operate as many passenger flights as they wish and will help boost economic and cultural exchanges. There are currently up to 12 flights per week between the Incheon International Airport that serves the South Korean capital Seoul and Macau with Air Macau offering a daily service and low-cost carrier Jin Air five flights per week. The Open Skies agreement is likely to see an increase in capacity in the future as increasing numbers of Koreans travel to Macau to tour the famous casino city or as a gateway to nearby Hong Kong which is just an hour by ferry away.
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