AUSTRALIA’S regulatory authority has approved Virgin Australia’s 60 per cent stake in Tiger Airways Australia, a move hoped to tame the latter’s unprofitability and transform it into an effective competitor to Jetstar.

Launched six years ago, Tiger Australia has not reported operating profit since, said the Australian Competition and Consumer Commission (ACCC) chairman Rod Sims.

“We concluded that it was highly likely that Tiger Australia would leave the market if this acquisition didn’t go ahead, and accordingly blocking the acquisition would not serve to protect competition,” he explained.

As such, ACCC would “not oppose” Virgin’s intentions to purchase the Tiger Australia stake for A$35 million (US$35.9 million).

The deal will strengthen the loss-making LCC’s balance sheet by S$128 million (US$103.1 million) and contribute S$120 million to Tiger’s pro forma profit and loss account, Singapore’s The Business Times quoted Tiger Airways group CEO, Koay Peng Yen, as saying. Tiger also completes its S$297 million equity-based fundraising exercise this week.

Both sides have further agreed to inject another A$62.5 million into the business and grow Tiger Australia’s fleet size to 23 aircraft by March 2018, stated the report.

Separately, Singapore Airlines (SIA) is in the process of upping its stake in Virgin Australia through the acquisition of another 9.9 per cent share in the latter to bring its total stake to 19.9 per cent. The move is subject to approval from Australia’s Foreign Investment Review.

SIA acquired 10 per cent of Virgin Australia late last year (TTG Asia e-Daily, October 30, 2012) but the relationship began in 2011 when the two airlines entered into a long-term partnership including codesharing and reciprocal frequent-flyer programme benefits, among others (TTG Asia e-Daily, August 12, 2011).

MALAYSIAN inbound operators strong in the Indian inbound market have reported an increase in bookings for summer, the peak travel period for Indians.

Arokia Das, senior manager, Luxury Tours Malaysia, said he has seen a more than 30 per cent year-on-year increase in business. Travellers were mainly from Mumbai, New Delhi and Ahmedabad.

“A lot of them are travelling from India via Singapore, where there is better connectivity and cheaper airfares,” he observed.

“The travelling crowd is also getting younger. Until a few years ago, travellers were mainly those in their 40s and above, but now we see a lot of Indian travellers in their 30s to 50s.”

Meanwhile, Kuna Seelan Velayutham, managing director of Hibiscus Travel & Tours, said there were more travellers originating from South India. He had also received more requests for Kota Kinabalu this year, mostly from FITs.

Tina Travel & Agencies’ managing director, Adam Kamal, agreed. “We’ve seen a 10 per cent year-on-year increase (in bookings), but it is still too early to tell how this season will fare as many travellers tend to book last minute.”

He said: “There was some concern from our partners on whether there would likely be disturbance during the general election on May 5. We reassured them that based on general elections in the past, it would be peaceful.”

A LOCAL working group established this month in Jakarta will partner the Jakarta provincial tourism and culture office and related shareholders to revitalise the historic Old Batavia area in the capital.

Jakarta’s tourism and cultural authorities had last year announced plans to focus on the reconstruction of Old Batavia, also known as Kota Tua, and the former heart of the Dutch East India Company’s administration and lucrative spice trade, in 2013.

Restoration plans involve 134 buildings in the area of which only five, including a few museums, belong to the Jakarta provincial administration. The rest are owned by state-owned companies and the private sector.

Old Batavia has to be developed comprehensively, from reconstruction to the management of old buildings, as the area is a valuable tourism asset in Jakarta, said Firmansyah Rahim, director general tourism development, Ministry of Tourism and Creative Economy.

Firmansyah pointed out that while a large part of the main Fatahillah Square and buildings around the Plaza had been restored, challenges remained in the form of managing hawkers and rejuvenating other buildings.

AIRASIA Indonesia will revive its Darwin and Bali connection on July 1 with four weekly flights, having axed the service last year.

On the cards are also a new thrice-weekly service between Bali and Kota Kinabalu, and an increase in frequency on the Perth-Bali route, from thrice- to four-times-daily.

Bernard Francis, director of commercial, AirAsia Indonesia, said the airline had cancelled the route last year to concentrate on its high-demand and high-yield routes to help maintain operational efficiencies, but that the carrier’s growth and record profits has allowed it to resume the service.

“Arrival and departure times on the previous service were often inconvenient and a frequent complaint from guests. We have now improved our schedule and made getting to and from Bali even easier,” he said.

Darwin-Bali flights depart Mondays, Wednesdays, Fridays and Sundays at 19.30 and arrive at 20.40, operated by an Airbus A320. On the return leg, flights depart Denpasar at 14.50 and land in Darwin at 18.55.

To mark the return of the service, AirAsia Indonesia is offering discounted one-way fares from Darwin to Denpasar from A$129 (US$132) and one-way fares from Denpasar to Darwin for A$99.

The sale runs until April 28 for the travel period of July 1, 2013 to April 30, 2014.

PAN PACIFIC Hotels Group will launch the 180-key Pan Pacific Serviced Suites Beach Road on May 7, in a lively district rich in Islamic history and culture.

Andrew Donadel, general manager, said: “This location will present the authentic cultural aspect of Singapore to our guests, which is unlike what they commonly see in the CBD area.

“Moreover, we are still located at the fringe of the CBD area so accessibility is not an issue at all.”

Within walking distance of Nicoll Highway and Bugis MRT stations, Pan Pacific Serviced Suites Beach Road has rooms starting from 45m². The building houses a rooftop swimming pool, meeting room with facilities, gym and spacious living room, which can double as a lounge. Complimentary Wi-Fi access is also offered throughout the residence.

Pointing out the difference between this new property and the 126-room Pan Pacific Serviced Suites in Orchard, Donadel said: “There will still be people going for the Orchard belt for the luxurious shopping and city life. But this new one in Beach Road will appeal to those who want somewhere slightly quieter, yet still vibrant enough.”

He revealed that top source markets were Indonesia, Malaysia and China, with most guests staying between one and three months.

Donadel said Pan Pacific Serviced Suites Beach Road had been receiving a “steady flow” of bookings from corporate clients and the target is an 80 per cent occupancy rate.

TWO more properties will open under the GHM-backed Ahn Luh brand by 2015 – the 99-key Ahn Luh Lanting in Shaoxing, Zhejiang and 35-villa Ahn Lu Zhujiajiao in a historic Shanghai suburb.

Launched in May 2012, Ahn Luh was co-founded by GHM, Beijing Tourism Group and Great Ocean Group, with its first project announced as Ahn Luh Dujiangyan in Chengdu.

Under a deal with Qinsen Group, Ahn Luh will manage two properties, both of which will feature antique furniture, ornate wooden beams, stone carvings and Chinese artwork from Qinsen chairman Qin Tongqian’s collection.

Scheduled to open in fall 2014, Ahn Luh Lanting offers 99 rooms in 35 heritage houses. The property’s F&B outlets, library, meeting area, medical hall, spa and wellness centre, and tai chi facility will boast authentic Chinese elements.

Ahn Luh Zhujiajiao will comprise 35 traditional Chinese villas and come with on-site restaurants, a library, a museum, meeting space, a spa and tai chi centre when it opens in spring 2015.

In the Ahn Luh pipeline are Ahn Luh Xunliao Bay, slated for a 2016 opening, and Ahn Luh Dujiangyan, which will open over the next three to five years, according to the Ahn Luh website.