TTG Asia
Asia/Singapore Friday, 26th December 2025
Page 1049

AirAsia CEO and chairman temporarily step down amid Airbus bribery probe

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Fernandes and Kamarudin have both denied any allegations of wrongdoing or misconduct as AirAsia's directors

AirAsia Group’s CEO Tony Fernandes and chairman Kamarudin Meranun have announced they would be stepping aside for two months, as authorities investigate allegations that Airbus had paid a bribe to win plane orders from the budget airline, reported The Straits Times.

The allegations – in which Airbus paid a bribe of US$50 million – were revealed as part of a record US$4 billion settlement Airbus agreed with France, Britain and the US. Prosecutors said the aircraft maker had bribed public officials and hidden payments as part of a pattern of worldwide corruption.

Fernandes and Kamarudin have both denied any allegations of wrongdoing or misconduct as AirAsia’s directors

The allegations against AirAsia Group and Airbus follow the same that was made against former SriLankan Airlines CEO Kapila Chandrasena and his wife, whose arrests have been ordered by the local court this morning.

A committee comprising the non-executive members of AirAsia’s board will review the allegations and take any necessary actions, AirAsia said in a statement.

Senior company executive Tharumalingam Kanagalingam will be the acting CEO, with changes effective immediately.

Currently, Fernandes and Kamarudin will remain advisers, however, “in view of the current difficult economic circumstances facing the airline industry”, the company said in a statement.

In a joint statement, Fernandes and Kamarudin have denied any allegations of wrongdoing or misconduct as directors of AirAsia, saying they “would not harm the very companies we spent our entire lives building to their present global status”.

Former SriLankan Airlines CEO nabbed over Airbus bribery scam

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Sri Lankan authorities have ordered the arrest of the former CEO of national carrier, SriLankan Airlines (SLA), and his wife after they were implicated in a US$2 million bribery scandal involving the purchase of Airbus planes.

Attorney General (AG) Dappula de Livera on Monday directed police to obtain an arrest warrant from court for former SriLankan Airlines CEO Kapila Chandrasena and his wife Priyanka Niyomali Wijenayake for allegedly accepting bribes from French aircraft manufacturer Airbus over the sale of aircraft to the state-run carrier. It is not known whether the couple is in Sri Lanka or abroad.

Former SriLankan Airlines CEO and his wife have been arrested over money laundering allegations

The alleged bribery took place during the November/December 2013 period. The money was funnelled to a straw company registered in Brunei, which was owned by Wijenayake who had acted as an intermediary in these transactions. Her husband was CEO of SriLankan Airlines from August 2011 to January 2015.

Airbus employees had reportedly offered up to US$16.84 million to Wijenayake to influence SLA to purchase 10 Airbus aircraft and lease an additional four.

The scam was revealed in a UK High Court last week when Airbus was fined 3 billion pounds (US$3.9 billion) for resorting to bribery to secure several contracts in 20 countries. In SLA’s case, it involved the promise by the former CEO to purchase six A330-300s, four A350-900s and lease four other planes.

Airbus had also agreed to pay US$5 million to Wijenayake if SLA didn’t purchase any competitor aircraft at the time, according to a report released by UK’s Serious Fraud Office.

Airbus employees had misled the UK Export Finance to Wijenayake’s name and gender in order to conceal her identity, after US$2 million of the US$16.84 million was paid to her company, added the report.

The report followed a four-year investigation into Airbus, over allegations of external consultants used by the company and paid bribes in Sri Lanka, Malaysia, Indonesia, Taiwan, and Ghana between 2011 and 2015.

When the news broke on Sunday, Sri Lankan president Gotabaya Rajapaksa ordered a thorough investigation and firm action against the responsible parties.

The national carrier said on Sunday it would cooperate fully in any government investigation on the issue.

Asian outbound travel stumbles over flu challenge

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Health and safety concerns rising along with the number of Novel Coronavirus cases in China and beyond are stifling travel confidence in Asian markets, with outbound agencies in Singapore, Indonesia and Sri Lanka reporting cancellations and postponements for the next few months.

Anticipating sliding travel demand from Singaporeans, the National Association of Travel Agents Singapore (NATAS) has postponed its popular NATAS Travel Fair 2020 from February 21-23 to May 1-3 as a measure to “lower the risk potential for the public and staff (of participating travel agencies)”, explained Alicia Seah, director, public relations & communications, Dynasty Travel, a member of NATAS.

Coronavirus has put a damper on Asian tourism markets

Within Dynasty Travel, there are plans to reduce advertising and marketing expenditure, and to scale down events in response to the “sharp drop in travel demand”, shared Seah.

Nam Ho Travel Service is seeing some deferred travel bookings, especially those to China, shared Joe Lim, a consultant for the company. He described: “The market is currently quiet, because it is post-Chinese New Year when travelling has slowed down compared to any other times of the year. Some bookings were deferred, especially those to China, while the rest (of our customers) are adopting a wait-and-see (for how the situation will develop).”

In Indonesia, outbound travel agents are claiming large financial losses from cancellations by nervous Indonesian customers.

Pauline Suharno, managing director of Elok Tour, told TTG Asia that “many cancellations of tour packages” by Indonesians have resulted in the suspension of chartered flights from Indonesia to major Chinese cities, such as Hainan, Kunming and Nanning.

The last chartered flight took off on January 24, she said.

South Tangerang-based Safa Tour’s owner Khairul Gumay said he has recorded 800 million rupiah (US$58,691) in financial losses from six group cancellations. The groups were supposed to visit Beijing, Kunming, Guangzhou and Hong Kong over the Chinese New Year holidays and the coming Valentine’s Day in February.

Khairul said these clients were worried about being infected as well as being trapped in the Chinese cities should travel suspensions worsen.

Pauline, whose business is also bleeding from the outbreak, added that with Japan – a popular destination among Indonesians – having confirmed infections, she has had to propose major domestic destinations as alternatives to customers who are still looking to take vacations.

The adverse business impact is felt in Sri Lanka too, with an anonymous outbound agent saying he is saddled with a large number of postponements or cancellations of incentive tours to various parts of Asia, totalling over 500 participants.

The agent who declined to be named told TTG Asia that the financial loss was “huge”.

With Sri Lankan corporates urging their executives to postpone non-essential overseas travel, outbound travel business can expect deeper dents.

Meanwhile, a number of Chinese visitors in Sri Lanka have requested to extend their holidays instead of returning home immediately. At present, there are between 800 to 1,000 Chinese travellers in the country, immigration officials said. – Reporting by Pamela Chow, Kurniawan Ulung, Feizal Samath

Thailand targets millennials, quality tourists in Indian market

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Indian tourists visiting Wat Phra Chetuphon in Bangkok

Tourism Authority of Thailand (TAT) will be targeting millennials and quality tourists in India this year, projecting a 10 per cent growth from the Indian market in 2020.

TAT’s new marketing campaign for the Indian market in 2020 will also be themed to attract more Thai millennial travellers to India, seeing how the category has grown more than 30 per cent over the past five years.

Indian tourists visiting Wat Phra Chetuphon in Bangkok

“We are inviting a few social media influencers to visit destinations like Bangkok and Koh Samui as part of our strategy to attract millennials, who we expect will project themes like 10 things to do in Bangkok or Koh Samui,” Klissada Ratanapruk, executive director, ASEAN South Asia, and South Pacific Region, TAT told reporters on the sidelines of a roadshow in New Delhi.

TAT will also work closely with Indian travel agents, airlines and social media platforms to create awareness about Thailand as a quality destination, with a focus on niche segments like wedding and golf to draw high-value Indian tourists.

“We are targeting a modest growth from the Indian market this year compared to the previous year as our focus is on high-value tourism. We understand that by focusing on quality tourists, we will be able to achieve our revenue target from the Indian markets,” said Kulpramote Wannalert, deputy executive director, ASEAN South Asia and South Pacific Region, TAT.

At a time when growth from Thailand’s key source markets like China and Europe has plateaued, South Asian and South-east Asian markets have emerged as extremely important markets for the destination to achieve its targets in tourist arrivals and receipts.

Around 1.9 million Indian tourists visited Thailand in 2019, a growth of over 20 per cent from the previous year, on the back of more than 300 flights per week that connect India and Thailand.

Growing tech-savviness among independent hotels: SiteMinder

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Today’s independent hoteliers have a greater awareness and appetite around technology when it comes to their marketing and distribution strategies, noted new research backed by hotel guest acquisition platform SiteMinder.

According to eHotelier’s Marketing & Distribution 2020 Journal, 68.4 per cent of independent hotels already have a digital marketing strategy implemented for their business, while a further 24.4 per cent intend to implement their strategy over the coming year.

Number of independent hoteliers leveraging technology to drive business on the rise: study

Only 7.2 per cent of independent hoteliers do not understand the relevance of a digital marketing strategy or how it can help their hotel business, found the study which surveyed 461 hotel industry professionals from around the world, with 80 per cent from independent hotels.

James Bishop, senior director of global demand partnerships at SiteMinder, said: “These figures seemed almost unimaginable as recently as 13 years ago, when SiteMinder first opened its doors to hoteliers all around the world who yearned for a way to market and sell their rooms online.”

When it comes to the value of booking channels in driving revenue, direct website bookings remain perceived among respondents as the most important booking channel for independent hoteliers, with 62.1 per cent ranking direct website bookings as either very valuable or valuable – a sentiment accentuated among hotel chains and franchises (87.9 per cent).

Owned channels, such as direct mail and a hotel’s website, trumped paid channels, such as paid social media, in terms of their perceived effectiveness in driving business.

The study also underlined a growing desire for hoteliers to better know their customers, with direct feedback seen as the most important channel in defining how they approach their marketing strategy.

“Unsurprisingly, direct website bookings remain perceived as the most important channel, a heartening outcome for the health of the market, as it displays the enthusiasm that hoteliers of all sizes currently have to embrace the tools and innovations at their disposal. However, hotels should also remember that having a balanced distribution strategy between channels, such as OTAs, wholesalers and GDS – as well as direct – remains key in the success of marketing your hotel online,” Bishop said.

“At SiteMinder, we are encouraged to also see hoteliers looking at the distribution of data from their core platform to other applications, such as CRM, upselling tools and guest messaging, to support their overall strategy in 2020 and beyond.”

PATA chief will serve his final 11 months with the association

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Mario Hardy

In a letter yesterday to travel trade colleagues, Mario Hardy, CEO of the Pacific Asia Travel Association (PATA) has expressed his intentions to not extend his term and to serve the association until the end of December 2020.

Hardy, who was appointed to the position at PATA almost six years ago, said he has achieved what he had set out to do for the association.

Hardy has announced his resignation as PATA chief

“I was appointed…almost 6 years ago with the goal of reshaping this now 69-year-old organisation, which at the time was struggling to stay relevant. PATA is now financially sustainable, steadily growing its reach, and thriving with new initiatives to support the sustainable development of the tourism industry,” he said in the letter.

His decision was conveyed to the PATA Executive Board on Monday morning.

“I am proud of all the achievements the organisation has accomplished and the amazing support I have received from the staff at the secretariat, our chair Chris Bottrill, our members and industry partners,” he added.

“One my strengths is merging/cross-pollinating key factors of success in one industry with those in another to drive innovation. I have come to be known for my ability to successfully reshape organisations and businesses in distress and look forward to my next venture either in tourism, in another sector, or to simply enjoy my life for a while. Wherever I land you can be assured that I will continue to monitor the activities of the organisation, after all my own private company is still a fully paid PATA member.”

Hardy will continue to work closely with the PATA chair and the Executive Board during the transition period.

Onyx to open two Bangkok hotels; targets 99 hotels by 2024

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A rendering of Shama Yen Akat

Shama Serviced Apartments by Bangkok-based Onyx Hospitality Group will be doubling its presence in the Thai capital with the addition of Phrom Phong and Yen Akat to its portfolio in 2020.

The two new properties – Shama Sukhumvit 39 Bangkok and Shama Yen Akat Bangkok – will complement the existing Shama Sukhumvit Bangkok in Ploenchit and Shama Lakeview Asoke Bangkok.

A rendering of Shama Yen Akat

Developed by Walton Asset and managed by Onyx Hospitality Group, Shama Sukhumvit 39 Bangkok in Phrom Phong is scheduled to open in February 2020 as an extended stay residence with 52 apartments in five different one- and two-bedroom layouts. The property will feature a pool and terrace, gym and kid’s playroom.

Shama Yen Akat Bangkok, developed by SP Plus Property Company and managed by Onyx Hospitality Group, is scheduled to open in September 2020 with 136 units, welcoming both short stay as well as extended stay guests. The property will offer a restaurant, gym and a rooftop pool terrace with barbeque pit.

Shama currently has a portfolio of 11 properties in China, Hong Kong and Thailand, with upcoming openings in Johor, Malaysia and additional locations within mainland China.

Onyx Hospitality Group has a growing regional portfolio of 50 operating properties across three core brands in eight markets. It has a robust development pipeline of 25 new properties in markets such as China, Malaysia and Laos, and has set a target of having 99 hotels open by 2024.

KLIA pilots facial recognition technology

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KLIA trials facial recognition technology as it seeks to improve the passenger experience

Select visitors to the Kuala Lumpur International Airport (KLIA) will now be able to take advantage of its Single Token Journey concept which leverages facial recognition technology to provide passengers with a single identification verification at all airport touchpoints, from check-in to the boarding gate.

Launched by Malaysia Airports (MAHB), in collaboration with Malaysia Airlines and IT firm SITA, the concept is part of the Airports 4.0 initiative that aims to transform KLIA into a smart airport through the use of big data analytics.

KLIA trials facial recognition technology as it seeks to improve the passenger experience

During the three-month pilot period, passengers on two daily Malaysia Airlines flights to Narita International Airport, Tokyo and Kansai International Airport, Osaka will get to enjoy this convenience.

Facial recognition scanners have been installed at check-in counters H5 to H8, while e-gates have been placed at the security screening touchpoints and boarding gates.

Passengers on these flights will only need to scan their faces to verify their “token” at all the touchpoints. They no longer need to present their passports or boarding passes when going through these checkpoints.

Malaysia Aviation Group CEO Izham Ismail said that the new concept will allow passengers to enjoy reduced check-in time as well as manage the queue at the airport’s check-in counters, especially during peak periods. The company hopes to fully adopt this system by 4Q2020, he added.

Kampong Ayer Walking Trail

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Kampung Bakut Berumput

Why
Despite being the world’s largest floating village and having been in existence for more than a millennial, Kampong Ayer in Brunei’s capital has flown largely under the tourism radar. To educate visitors about Brunei’s historic settlement, the tourism board launched a Kampong Ayer walking trail last May, giving visitors access to designated abodes across five villages in the overwater city.

Once home to about 30,000 inhabitants, that number has since dwindled to about 9,000 as residents flock to the mainland. Unlike my last trip here more than five years ago, where I admired Kampong Ayer from a distance via water taxi, this time round, I decided to explore the Floating City on foot.

What
Crooked wooden walkways spanning 30km connect the 30 villages that collectively make up Kampong Ayer. Timber homes wrapped in sun-bleached pastel hues sit next to mosques, schools, restaurants, clinics and gas stations.

The 2km Kampong Ayer walking trail, which takes about two hours at a leisurely pace, led me from the souped-up Gallery Awang Haji Ahmad Bin Haji Bujang (home of the village head), to the Pottery House, before I descended on the turfs of the prawn cracker maker, woodcrafter and boat maker. For a taste of local life, Kunyit 7 Lodge beckons homestay guests with its freshly renovated unit boasting a large patio with expansive views of the city.

How
A motorised canoe zips visitors across the Brunei River to the mini-metropolis where old-world charm flourishes. Led by Freme Travel’s senior tour coordinator, Min Salazar, my trip began at the Kampong Ayer Cultural and Tourism Gallery, which exhibits the traditions, arts and history of Kampong Ayer’s long and storied past.

In recent years, the water village has been equipped with amenities like electricity, running water, Wi-Fi, and even satellite TV. But beneath its modern-day trappings, the traditional way of life lingers, as local fishermen and craftsfolk continue to ply their trade. I caught glimpses of daily life in the 1,300-year-old Floating City: an old man fishing from his veranda, schoolchildren heading home from classes, and the sight of salted fish and clothes being hung out to dry.

Perhaps the most flamboyant of the lot, the Pottery House stood out for me with its decorative knick-knacks and bold array of coloured blooms. Elsewhere, several rattan trays of sunbathing keropok udang slices greeted me at the prawn cracker maker’s house, where a 300g pack of prawn crackers goes for B$5.00 (US$3.70).

Further down the route, a cluster of boats-in-the-making ushered me into the boat maker’s abode. Aided by my group’s tour guide-slash-translator, we shoot the breeze with the boat maker’s helper, a wisp of a girl, who told us that it takes about a week to cobble together a boat, which is then sold for about B$30,000. As one-third of a boat-making trio and the only registered boat makers in the entire village, she called it “easy money” as compared to eking out a living on land.

My tour wrapped up with a visit to one of the locals’ houses, one of the most lavishly done up in the village, where we enjoyed local snacks like kuih cincin and kuih bahulu, paired with hot tea.

Verdict
An engaging history lesson and scenic jaunt rolled into one tranquil walking trail. With its storied past and picturesque surrounds, this tour will not only appeal to the trigger-happy millennial, but also the cultural buff keen to visit a national landmark with remnants of a bygone era.

Duration: Approximately two hours
Rate: S$30 (US$22)
Contact
Website: freme.com
Email: fremekub@brunet.bn

Artistic greats to brighten walls of National Gallery Singapore

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A previous exhibition on show at the National Gallery Singapore

Visitors to National Gallery Singapore (NGS) will be able to catch the works of some of the world’s most renowned artists, such as Pablo Picasso, Henri Matisse and Nam June Paik, at four international special art exhibitions slated to take place over the next four years.

Held in partnership with the Singapore Tourism Board and major art institutions around the world, the exhibitions are part of NGS’ efforts to introduce global art movements and artistic pioneers to Singapore and the region.

A previous exhibition on show at the National Gallery Singapore

First in the line-up is the three-month Matisse & Picasso exhibition, which will open in May 2020 as the only stop outside of Australia. Organised in partnership with the National Gallery of Australia, it tells the story of the duo’s artistic relationship and will feature works from around the world.

Slated to open in October 2021 is an exhibition featuring more than 200 works of Korean-American artist Nam June Paik, widely touted as the godfather of video art.

Organised in partnership with Tate Modern and San Francisco Museum of Modern Art, Singapore will be the only stop in Asia for the exhibition.

NGS director Eugene Tan said in a statement: “These exhibitions play a key role in opening visitors’ minds to important artists and artworks that have had a deep influence not only on the global art scene but also the development of modern art in Singapore and South-east Asia.

“They also continue our ongoing partnerships with international museums such as Centre Pompidou, Musée d’Orsay, and the Museum of Modern and Contemporary Art, Korea since the museum’s opening.”

Details about the other two exhibitions will be unveiled at a later date. All four exhibitions will be held at the Singtel Special Exhibition Gallery.