SPEAKING at the IATA 67th AGM and World Air Transport Summit in Singapore this morning, outgoing IATA director general and CEO, Giovanni Bisignani, gave a dramatic overview of the aviation sector over the last decade during his state of the industry address.

Bisignani noted that the aviation sector had been continually battered over the least 10 years by terrorism, wars, revolutions, pandemics, earthquakes, volcanoes, failing economies and skyrocketing fuel prices.

Even though the industry posted its best performing year of the decade in 2010, with profits of US$18 billion, this represented a “pathetic margin of 3.2 per cent”, he said.

Bisignani said 2011 looked to be a continuation of this trend of challenges for the aviation industry – the disaster in Japan, unrest in the Middle East and oil spiking above US$120 per barrel. Airlines will probably earn about US$4 billion this year, according to IATA, down from its previous US$8.6 billion forecast in March.

Bisignani added that the decade had left the aviation industry with the knowledge “that cheap oil is history, we must be ready for constant shocks and that aviation’s centre of gravity is shifting eastward”.

PATTAYA’S MICE industry is doing well, buoyed by ongoing infrastructure and tourism development, as well as business growth at industrial parks in Rayong and Chonburi.

Pullman Pattaya Aisawan general manager, Clinton Lovell, explained that Pattaya’s proximity to Suvarnabhumi Airport has helped entice more MICE groups. So have efforts in recent years to position the city as a family- and MICE-friendly destination through the building of international-standard hotels and medical, tourism and shopping facilities.

According to Pattaya hoteliers, business growth at five industrial parks in Rayong and Chonburi were a boon for MICE business, especially as car manufacturers were keen to hold car launches and dealer conferences at hotels in the city.

Lovell said that Pullman Pattaya Aisawan hosted more than 150 events last year, and was looking to improve on that result this year.

Amari Orchid Pattaya general manager, David Cumming, said MICE business to Pattaya “started returning from July at a fast pace, and has since been growing”.

Between January and May this year, the Amari Orchid Pattaya handled four to five residential MICE groups per month, each ranging from 20 to 200 rooms. It has secured bookings for two residential meetings from Singapore in July and August, and two conferences from Israel in September.

Furama Jomtien Beach, Pattaya, has been handling about one to two residential meetings a month since January, including a one-week, 100-pax training held earlier this year.

The hotel is currently in discussions for a two-night, 100-room Japanese car manufacturer meeting in July, and a two-night regional conference for three 300-pax groups in August.

By Sirima Eamtako

INDONESIAN outbound traffic in the first four months of 2011 increased by 16.1 per cent to 3.3 million passengers, compared to the same period last year.

Data from the Central Board of Statistics of Indonesia revealed that outbound traffic was highest through Jakarta’s Soekarno-Hatta International Airport – at 1.7 million passengers – followed by Bali’s Denpasar International Airport, with 920,400 passengers.

Among Indonesian airlines, Indonesia AirAsia ranked first in carrying outbound traffic with 818,453 passengers, followed by Garuda Indonesia with 690,336 passengers, and Lion Air with 207,119 passengers.

Domestic travel during the same period increased by 25.6 per cent to 16.2 million passengers, with Jakarta’s airport recording the highest traffic at 5.4 million passengers, followed by the Juanda Airport in Surabaya with 1.7 million passengers.

Lion Air dominated the domestic travel market, with a 36.6 per cent share serving 5.7 million passengers, followed by Garuda with 2.95 million passengers (18.9 per cent), and Sriwijaya Air with 1.78 million passengers (11.4 per cent).

Lion Air general affairs director, Edward Sirait, said that apart from the growing economy and strengthening Indonesian currency, improved connectivity also played a part in Lion Air’s good results.

“The increasing number of aircraft and growing network have resulted in Lion Air’s positive performance,” he said.

MYANMAR-based domestic airline Air KBZ intends to expand its network, after taking delivery of a new 72-seat ATR72-500 aircraft late last month.

Air KBZ assistant general manager, U Myat Thu, said the airline was planning to introduce services to Myitkyina and Kawthoung from early August.

More domestic destinations will be added after the airline receives two more propeller planes later this year, he said.

Although the airline has already received permission from the Department of Civil Aviation to operate international flights, U said: “We will operate international routes in the near future, but our priority is expanding our domestic network.”

Air KBZ began operating regular flights after its April 1 launch to six domestic destinations – Nyaung Oo, Mandalay, Heho, Tarchileik, Dawei and Myeik – with a fleet of one 64-seat ATR72-500 aircraft (TTG Asia e-Daily, March 30).

MALAYSIA Airlines (MAS) is scheduled to join the oneworld alliance in late 2012.

“With the world airline industry increasingly focused on alliances, we have carried out careful analysis of the global airline groups, and oneworld is clearly the best option for us,” said MAS’ managing director and CEO, Tengku Azmil Aziz, adding that the alliance would “allow (MAS) to fast-track (its) own expansion plans”.

MAS already code-shares with oneworld partners Cathay Pacific and Royal Jordanian, and will be expanding bilateral links with other oneworld member airlines.

Aside from tapping into the alliance’s global coverage of almost 950 destinations in 150 countries, MAS will also integrate its Enrich frequent flyer programme with those of the alliance’s other member airlines.

Malaysian Association of Tour & Travel Agent chairman, Mohd Khalid Harun, said: “This is a great strategy that will directly benefit both ticketing and inbound travel agents, as well as enhance the viability of MAS’ hubs in Malaysia.”

“The Malaysian government should now focus on making MAS a more competitive and reliable airline, by benchmarking its product and services against other quality airlines,” he added.

INDONESIA AirAsia (IAA) yesterday expanded its Bandung-Kuala Lumpur and Bandung-Singapore services with Airbus 320 aircraft. Two more daily flights have been added to the Kuala Lumpur route and one daily flight added to the Singapore route.

IAA president Dharmadi said: “Our other flights are still served by our Boeing 737-300s, and we will gradually change them to A320 aircraft.”

With the ramped-up services, AirAsia now has five daily services between Bandung and Kuala Lumpur, and three between Singapore and Bandung. Capacity has increased from 149 to 180 seats.

Dharmadi said the increased frequency and capacity would strengthen the airline’s business out of Bandung, one of the most popular Indonesian destinations among the Malaysian travellers.

Commenting on the increased capacity, Batik Holidays Bandung managing director, Maktal Hadiyat, said: “Malaysian arrivals are really booming for Bandung. The majority of travellers (from Malaysia to Bandung) are ethnic Malay, and they have been coming here several times.”

“On one hand this is good for the local economy, as travellers know their way around Bandung, and spend their money on shopping and eating, but it gives little business to the travel trade,” he added.

KOREAN Air, which in late March added four weekly flights to its popular Seoul-Singapore route using a B777-200ER, has boosted this service to a daily frequency.

Together with the airline’s other daily service using the larger B777-300, travellers from Singapore to Seoul now have the option of either a night (arriving in Seoul early in the day) or afternoon flight (arriving in Seoul late at night).

INTERCONTINENTAL Hotel Group’s (IHG) new Global Sales Office (GSO) in New Delhi and Mumbai will offer its B2B clients a single point of contact to access its global hotel inventory.

With India’s outbound travel spending set to hit US$35-40 billion over the next five years, IHG COO South West Asia, Chris Moloney, said there was a need to align resources and collectively meet the demands of this high-growth economy.

“(Establishing the) GSO is about supporting the business and generating greater efficiencies,” he explained. “It will build a capable sales force trained to deliver the needs of our evolving client base, and offer customised products and services to match the diverse hotel, conference or meetings needs of this dynamic market.

“India is a great growth engine for our business in Asia and Australasia. The establishment of the GSO demonstrates our commitment and confidence in this region,” he added.

By Anand & Madhura Katti

THE THAILAND Convention and Exhibition Bureau (TCEB) has launched a Luxury MICE initiative to boost Thailand’s image and presence in the high-end sector.

TCEB president Akapol Sorasuchart said the initiative was “designed both to extend market penetration in the existing luxury MICE market, and also to increase the size of this niche market”.

“In order to spearhead this campaign, TCEB has selected five chic & charming destinations – one each in Bangkok, Hua Hin, Chiang Mai, Phuket and Samui, to offer a captivating experience and unrivalled standards to the most discerning MICE groups,” he said.

“We are confident that the initiative will add 15 to 20 per cent to Thailand’s overall MICE industry revenues, with the luxury MICE segment projected to contribute around US$130 million this year,” he added.

To promote the luxury MICE segment, TCEB intends to organise activities such as a luxury fam trip, offering a unique, exclusive and first-hand experience, as well as the chance to inspect the country’s luxury MICE products.

Regarding the industry’s long-term prospects, Akapol said: “We plan to boost Thailand’s share of key longhaul MICE markets, and will also be organising corporate familiarisation trips and seminars to highlight the potential of Thailand’s fast-growing luxury MICE niche.”

Last year, Thailand welcomed around 679,000 MICE visitors, generating 55 billion baht (US$1.8 billion) in revenue. This year, MICE visitor numbers are set to increase to 720,000, generating 57.6 billion baht.

ONLINE discount voucher seller Groupon and travel booking website Expedia have joined forces to form Groupon Getaways with Expedia.

The partnership will first offer discounted deals from the 135,000 hotels on Expedia’s hotel database using the Groupon model, where consumers have a limited time frame to make their purchase.

Groupon Getaways with Expedia will then move on to offer package deals for airline tickets, car rentals, cruises and destination activities.

The two companies are intending to launch the new offering in the US and Canada later this month, with plans to expand globally in the future.