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Asia/Singapore Tuesday, 7th April 2026
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With increased capacity and fuel efficiency, new A321neo to form backbone of AirAsia’s operations

By S Puvaneswary
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The new Airbus A321neo is projected to form the backbone of operations in AirAsia’s ambitious push for new destinations and markets in Asia, as the low-cost carrier on Wednesday took delivery of its first of 353 A321neo order in Hamburg, Germany.

The largest and newest variant of the A320neo family, the A321neo is 6.93m longer than the A320neo, fitting 50 more seats per aircraft and 40 per cent more cargo space. The A321neo also offers up to 20 per cent fuel savings and has a longer flight range of up to five hours, an additional one hour more than the flight range of the A320neo.

From left: AirAsia’s top executives Veranita Yosephine and Michael Menking, alongside CFM International’s Sean Kim, at the aircraft handover ceremony in Hamburg

The A321neo aircraft features a single class layout with 236 seats, and boasts some of the latest aircraft technologies including new generation engines and Sharklets, and 50 per cent less noise as compared to previous generation aircraft.

Speaking at the handover ceremony in Hamburg on Wednesday, AirAsia Indonesia CEO, Veranita Yosephine said: ”The A321neo is truly a remarkable aircraft incorporating the very latest technology, and we could not be more thrilled that it will be the new backbone of our operations across the AirAsia group.

“With the 25 per cent increase capacity and 10 per cent reduction in cost per seat, the A321neo will enable us to maintain low fares and it will enable us to grow and be the largest low-cost carrier in Asia.”

Speaking at an earlier press briefing at the Airbus conference centre in Hamburg, a day before the delivery of the first A321neo delivery, AirAsia’s senior manager, aircraft planning & evaluation, Matthew Glaus, said: “Lower fuel burn per passenger will result in lower operating costs per seat mile and improved fuel efficiency. A higher seat capacity will benefit high density routes while a longer flight range will allow AirAsia to open new markets and new destinations.”

The new A321neo aircraft will initially operate from its Kuala Lumpur hub to Kuching and Kota Kinabalu. While no new destinations have been announced, the A321neo has the range capability to fly from Kuala Lumpur to Perth, Shanghai and Beijing, which was not possible with the A320neo. These routes are served by AirAsia’s sister company, AirAsia X, which operates the A330-300 and the A330-900 aircraft.

Asian airlines face headwinds, but pockets of opportunities persist

By Caroline Boey
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Asian airlines are bracing for slower growth in 2020 amid softening Chinese outbound travel demand and economic uncertainty owing to the ongoing US-China trade war, but industry leaders also say it is not all doom and gloom.

That was the common consensus among airline chiefs at last week’s CAPA Asia Aviation Summit and Corporate Travel Summit in Singapore, who said they see pockets of opportunities in growing ancillary fees, focusing on untapped inbound traffic and market segmentation.

Despite slower growth projected for Asia’s aviation industry next year, untapped opportunities still remain in the region, say airline chiefs

For regional LCCs, Jetstar Asia and Thai AirAsia both reported that revenue for ancillary fees are growing – at about one to two per cent annually – and now constitute between 18 per cent and 30 per cent of revenue.

Jetstar Asia’s CEO Barathan Pasupathi said that there are opportunities for airlines in the “vertical chain” and sharing platforms where passengers not only book air tickets, but also a ride to and from the airport via a car-hailing service, and booking of hotel rooms, etc.

Ancillary fees for Jetstar Asia have jumped from the “tens” to around 30 per cent, he noted.

Thai AirAsia’s executive chairman Tassapon Bijleveld said that OTAs were “not selling ancillary (products and services)”, and that the airline would have to drop big OTAs in China and work with those willing to sell ancillary products and services.

Chinese traffic had been slowing down over the last two years, he added, and despite a two per cent pick up, the market was not what it used to be.

Tassapon continued: “The Thai baht is very strong and there are no fundaments to explain why. We are suffering because of the exchange rate.”

For IndiGo, the Indian airline is betting big on the potential of East Asia, with the launch of new services to Chengdu, Guangzhou, Yangon, Ho Chi Minh City and Hanoi, according to the airline’s CCO Willy Boulter.

Boulter said that the airline was changing its domestic focus, going international and tapping the Chinese inbound market to India, both for leisure and business. He added that IndiGo was also eyeing more outbound traffic to Thailand, with the introduction of visa fee waivers.

For full-fledged airline Garuda Indonesia, its strategy is to work with companies that provide services for travellers looking for a luxury experience such as private jet services.

Indonesia is an increasingly consolidated market where the government set a cap for the selling price of airline tickets, said Garuda Indonesia’s CEO I Gusti Ngurah Askhara Danadiputra.

Meanwhile, CAPA – Centre for Aviation chairman emeritus Peter Harbison said that the industry would face four game changers in the coming decade.

He said that there would be environmental headwinds caused by “flight shaming” and the impact on corporate travel; distribution and technology change due to data analytics and big tech companies that know more about the customer; new aircraft technology revolutionising route planning; and partnerships and foreign ownership changes, where individual airlines have to respond to bilateral agreements because of market needs and groupings like Star Alliance, oneworld and SkyTeam being challenged.

Alipay, WeChat Pay now open to international tourists

By TTG Asia
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Chinese payment giants Alipay and WeChat Pay have both opened their platforms to international travellers in China for the first time.

To use Alipay app while in China, visitors will need just an overseas phone number, a visa and their bank card to sign up for Tour Pass mini-programme. They can top up in increments of as much as RMB2,000 (US$285), and use the service to not just make offline payments but also hail cars, purchase train tickets and book hotels, among other features available within the Alipay app. Access to Tour Pass lasts three months, and any leftover funds are refunded automatically.

Alipay and WeChat Pay is now open to international tourists in China

In a similar move, WeChat Pay has partnered with Visa, MasterCard, American Express, Discover Global Network, and JCB to allow foreign visitors to link their credit cards to WeChat Pay. With this new service, WeChat Pay users can add international credit cards directly to their digital wallets on the WeChat app.

While WeChat Pay allows users to make payments directly through its e-wallet, Alipay provides users with a prepaid card that can be topped up with international cards.

Previously, Alipay and Wechat Pay required a local phone number and Chinese bank account to access both payment systems, which precluded short-term international visitors from using the app.

The move by China’s two dominant mobile payment services providers to offer global visitors access will enable Chinese vendors tap the growing number of international visitors to the country, which welcomed 30.5 million international visitors arrived from overseas in 2018, an increase of 4.7% from a year earlier.

At the same time, the Chinese authorities are seeing greater spending from foreign tourists, with expenditure in areas such as hotels, shopping, and food rising 5.1% to a total of US$73.1 billion last year.

Fusion has major expansion, new brands in store for Vietnam

By TTG Asia
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Fusion Resort Quang Binh Main Reception

Wellness-oriented hotel group Fusion has unveiled plans to substantially step up its Vietnam’s presence by tripling the number of properties in the country while introducing new brands to the market.

Over the next three years, the Vietnam-based hotel group will launch 10 new hotels and resorts across the country, representing 1,385 rooms and private villas, suites, and apartments.

Fusion's new properties
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Fusion Resort Quang Binh Main Reception
Fusion Suites Vung Tau Rooftop Pool Bar

“We see a tremendous opportunity to expand Fusion’s presence in the country,” explained Peter Meyer, CEO of Fusion. “Recognising that there are so many beautiful, and largely undeveloped destinations in Vietnam.”

Fusion Suites Vung Tau, opening in early 2020 in the weekend getaway beach destination near Ho Chi Minh City (HCMC), will feature 100 apartments and 71 suites, a spa with 12-double bed treatment rooms, aerial yoga studio, rooftop infinity pool with cocktail bar, and the Suites’ signature Fresh Restaurant.

The oceanfront Fusion Resort Quang Binh, located at the gateway to the UNESCO World Heritage Site of Phong Nha – Ke Bang National Park, is a three-hectare property with 60 private villas, each with its own plunge pool; a spacious spa with treatments included in the nightly rate; and several dining options. This resort will start taking bookings in late 2020.

Come mid 2020, Maia Quy Nhon will mark the first of a new brand line with a food focus. Culinary journeys will be tailored to the location, and guests will be able to choose a different programme each night of their stay. Options include experiences like farm- & sea-to-table dining, a local food tour, cooking classes as well as pop-up dining. One complimentary daily spa treatment will round out this new brand’s offering.

“Food is an integral part of any holiday adventure,” said Meyer. “Vietnamese cuisine has now become popular worldwide. Playing to this cuisine’s popularity, we want to take guests beyond well-known dishes like pho and banh mi, educating them on the histories of these iconic foods and other lesser known regional specialties.”

Next year will also see the launch of HIIVE, a three-star-plus line catering to the lodging needs of business travellers in Vietnam’s industrial zones and developing townships. Five HIIVE hotels are slated for development over the next three years in four different locations, including Binh Duong, north of HCMC; Bac Ninh, just east of Hanoi; Hai Phong, on the northern coast; and, Dong Nai, also near HCMC.

In addition to a existing hotel in HCMC, plans are now underway to add another new Fusion accommodation option in the city. The hotel will open with 146 rooms in the heart of District 1, the city’s culinary and cultural hub.

Similarly, in Danang where Fusion currently operates two hotels – the spa-inclusive Fusion Maia Da Nang and the Fusion Suites Da Nang – the group will open Fusion Resort & Villas Da Nang in 2021 to offer 157 hotel rooms and 85 villas.

With a portfolio of about 550 keys, Fusion currently has four high-end spa-inclusive resorts and two modern apartment-style suite hotels in Danang, Hue, Phu Quoc, Cam Ranh, and HCMC.

APAC key driver for Christmas booking surge to Europe

By TTG Asia
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Helsinki is the top European destination for longhaul visitors this Christmas, with 29.6% growth in flight bookings over the period December 15, 2019 to January 15, 2020, according to a recent study by ForwardKeys.

Helsinki’s growth is mainly attributable to great growth in festive forward bookings from China and Japan, driven by a substantial increase in capacity, said the report.

Helsinki tops European destinations for longhaul visitors this Christmas, driven by growth from China and Japan; Chinese tourists at the Sibelius Monument in Helsinki, Finland pictured

It is followed by Budapest (up 29.3%), Bucharest (up 28.4%), Lisbon (up 27.2%), Porto (up 26.5%), Athens (up 22.0%), Copenhagen (up 18.5%), Madrid (up 18.3%), Prague (up 16.5%), and Amsterdam (up 14.4%).

Budapest’s strong booking position is due to notable capacity growth on routes from New York and Tel Aviv. Bucharest’s boom is due to notable capacity growth over the last two years. Lisbon is benefitting from a new route, operated by Asiana, from South Korea; while Porto is profiting from an increase in flight capacity from Sao Paulo, Brazil’s commercial capital.

As of November 12, Christmas bookings to European countries from outside the European Union were 11% ahead from the same period last year.

However, not every destination has seen growth. Bookings to Stockholm and Venice are behind, 23.1% and 6.5%, respectively. Stockholm is suffering since SAS stopped direct flights to and from Hong Kong last November and Venice has experienced a stalling in bookings from South Korea, the US, Russia and China. Furthermore, with the recent floods, a further slowdown is likely, said the report.

Europe’s largest city destinations by market share are currently all showing very healthy bookings for the Christmas period, found ForwardKeys. The number one destination is London, with a 16.2% share and bookings 10.2% ahead from the same period last year. It is followed by Paris, which has a 13.6% share and bookings 12.9% ahead. The next most visited cities will be, in order, Rome, Madrid, Barcelona, Frankfurt, Amsterdam, Lisbon, Milan and Munich.

Looking at the most important origin markets for global shoppers in order of size, coming to Europe, there is extremely healthy, above inflation, growth from six of the top seven, said the report.

Forward bookings for the Christmas period from the US are 7% ahead; from South Korea, 15.1% ahead; from Brazil, 29.3% ahead; from Russia, 1.6% ahead; from Japan, 15.8% ahead; from China, 19.5% ahead; and from the GCC countries, 3.6% ahead.

Chinese hotel group LvYue raises millions from Tencent and Baidu, among others

By TTG Asia
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China’s LvYue Group, the strategic investment arm of Trip.com, has raised several hundred million dollars as part of its Series A and A+ round financing led by Tencent, Sequoia China, Baidu Capital and Goldman Sachs.

The round also saw co-investment by Ocean Link, Citic Trust, Oriza and Caissa Travel.

LvYue Group raises several hundred million dollars in Series A and A+ financing

The funding raised will aid the company’s continued expansion in the domestic market, and exploration of new possibilities driven by its Internet big data capabilities.

LvYue, which is led by Mark Zhang who also serves as president of Qunar, is an Internet travel service provider that integrates hotel management, IT, trading and procurement, applying innovative internet technologies to traditional hotel industry.

Since its launch in 2016, LvYue has opened more than 1,900 hotels worldwide, in over 10 countries including Japan, South Korea, Thailand and India. By end 2019, LvYue expects that its network will exceed 2,600 hotels.

Aviation roundup: Royal Brunei Airlines, Jetstar Asia and more

By TTG Asia
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RBA flies to Sibu

Royal Brunei Airlines launched its inaugural flight from Bandar Seri Begawan to Sibu, Sarawak last week.

BI6881 departs Bandar Seri Begawan at 06.00 to arrive in Sibu at 07.10 every Monday, Wednesday, Saturday and Sunday, while the return flight BI6882 takes off from Sibu at 07.40 to land in Bandar Seri Begawan at 08.50.

Meanwhile, BI6885 takes off from Bandar Seri Begawan at 13.30 every Thursday and Saturday and arrive in Sibu at 14.40, while the return flight BI6886 departs Sibu at 15.10 to arrive in Bandar Seri Begawan at 16.20.

The six-times weekly flight to Sibu will be operated by Malindo Air using its new ATR 72-600 aircraft.

Jetstar Asia to connect Singapore and Hefei

Jetstar Asia will be launching a direct, five-hour service from Singapore to Hefei, in mainland China, becoming the first Singapore-based airline to fly direct to Hefei Xinqiao International Airport.

The new service is launched in partnership with Shanghai Xihao Aviation Service, as Jetstar looks to strengthen its presence in the Chinese market.

Shanghai Xihao Aviation Service’s chairman and general manager Pan Huan Ying said the collaboration with Jetstar on the Hefei – Singapore route was a milestone in the company’s development.

“This partnership demonstrates our commitment in following and supporting the Belt and Road Initiative of China,” said Pan. “The new route will not only enable the citizens of Hefei to travel to Singapore more conveniently, but also enhance the city as an international aviation hub. In addition, it is going to encourage more economic, cultural and tourism exchange between Singapore and Anhui.”

Using the Airbus A320, the thrice-weekly Singapore-Hefei service will operate every Tuesday, Wednesday, and Saturday from November 28.

3K885 departs Singapore, Changi at 05.05 to arrive in Hefei, Luogang at 10.05, while the return flight 3K886 takes off from Hefei at 11.05 to arrive in Singapore at 16.20.

Emirates to suspend Singapore-Brisbane flights

Emirates will stop all flight services between Singapore and Brisbane from March 30, 2020, according to a report by The Straits Times.

Emirates’ request to pull out of the route was approved by the Competition and Consumer Commission of Singapore after it determined that “seat capacity remains adequate to meet demand”, said the report.

Emirates said the decision was “based on a recent review of our operations which was undertaken to ensure the optimal commercial utilisation of our aircraft fleet”. The Dubai-based carrier cited substantial losses in revenue and seat under-utilisation on its flights as its reason for withdrawal from the market, according to the report.

Three airlines currently service the route between Singapore and Brisbane. Emirates and Australia’s flag carrier Qantas each operate a daily flight, while Singapore Airlines operates four every day.

Emirates and Qantas are currently in a codeshare agreement, which allows them to sell seats on each other’s flights. The affected Emirates flights are EK432 and EK433, which have 4,956 seats per week for both inbound and outbound flights.

Despite Dubai’s withdrawal, the report quoted a Qantas spokesman as saying that the airline will continue to operate its daily flights, QF51 and QF52 which have 4,158 seats per week.

Air France and KLM launch Manila-Taipei-Paris flights

Air France and KLM have started a one-stop flight from Manila to Paris with a faster and smoother connection via Taipei. The service with KLM from Manila to Taipei, now connects KLM from Taipei directly to Amsterdam and Air France to Paris-Charles de Gaulle.

Using a Boeing 787-9 Dreamliner, the Air France flights from Taipei operate every Tuesday, Thursday and Saturday, and from Paris-Charles de Gaulle every Monday, Wednesday and Friday.

Winter schedule (November, 5, 2019 – March 26, 2020)

Airbnb scores nine-year Olympic sponsorship deal with IOC

By TTG Asia
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Airbnb's Joe Gebbia and IOC's Thomas Bach at a

Airbnb has signed a deal with the International Olympic Committee (IOC) to provide accommodation for the host cities until 2028, as the games’ organisers seek to cut costs from hosting the event.

The deal, which closes just in time for the 2020 Olympics in Tokyo, will cover four more games in Beijing, Paris, Milan, and Los Angeles over a nine-year period. Financial details were not disclosed, though a Financial Times report pegged the sponsorship amount at US$500 million.

From left: Airbnb’s Joe Gebbia and IOC’s Thomas Bach

The agreement includes accommodation provisions that will reduce costs for Olympic Games’ organisers and stakeholders, minimise the need for construction of new accommodation infrastructure for the Olympic Games period, and generate direct revenue for local hosts and communities.

Working together with the International Paralympic Committee (IPC), Airbnb said that it will also work to increase accommodation that supports accessibility for people with disabilities or other accessibility needs.

The partnership will generate hundreds of thousands of new hosts over nine years, giving community residents the opportunity to earn extra income by providing accommodation and local experiences to visiting fans, athletes and other members of the Olympic Movement.

The IOC and Airbnb will also launch the Airbnb Olympian Experiences to provide direct earning opportunities for athletes. To be launched in early 2020, this new category will bring Airbnb’s goal of providing economic empowerment through hosting to athletes across the globe. Promoting sport and physical activity, these experiences will include everything from the chance to train with an Olympian, to exploring a city with an elite athlete. In the coming months, Airbnb and the IOC, through the Athlete 365 platform, will provide support and training to athletes interested in becoming a host on the Airbnb Experiences platform.

In addition, the IOC will make at least US$28 million worth of Airbnb accommodation available over the course of the partnership to athletes competing at the Olympic and Paralympic Games for competition and training related travel.

Airbnb co-founder Joe Gebbia said: “Our Olympic partnership will ensure that the Games are the most inclusive, accessible and sustainable yet, and leave a lasting positive legacy for athletes and host communities.”

China piques growing interest from South American luxury market

By Marissa Carruthers
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Luxury South American travellers

China is attracting growing interest among South America’s luxury travellers as trade between the two continents strengthen and luxury bleisure bookings are on the rise.

At the recent Further East luxury travel trade show in Bali, Linda Wong, managing director of Destination Asia China, told TTG Asia that she has seen a surge in bleisure bookings from South America.

South American luxury travellers are increasingly interested in China

She said the trend is being fuelled by the ongoing trade war between China and the US, with Chinese importers ramping up purchases from Latin American countries.

Added Wong: “This has opened up a lot of business opportunities and we are seeing a lot of corporate bookings from South America. A large majority (of business travellers) will bring their family with them (to China) and extend their stay with a luxury experience.”

WildChina’s deputy general manager Jenny Zhao noted that China is a “new trend” for luxury travellers from Brazil, which in addition to Mexico, the UK and the US make up some of the company’s current largest source markets.

Beijing-based DMC Imperial Tours’ managing partner Guy Rubin said that a steadily strengthening economy in South American countries has also sparked a renewal in interest in China’s luxury travel segment this year.

The introduction of new, non-traditional products, Rubin added, is also sparking interest from the South American market. This includes activities such as drinking tours that teach guests how to make rice wine and locally-brewed baijiu, as well as visits to the emerging range of micro-breweries.

Furthermore, China’s authentic range of wellness options are also ticking the boxes for South American luxury travellers. Said Rubin: “Wellness is a buzzword in the west but in China it very much forms part of everyday culture; it’s the way of life.”

High-end South American travellers are also drawn to China’s advanced technology, according to Wong. She said: “We are receiving many requests from South America to experience the AI technology in China; they want smart experiences.”

To cater to this demand, Wong is curating a smart tour that incorporates AI elements, including robot-run restaurants and AI-operated hotels in China.

KTO partners Wego to woo more GCC travellers

By TTG Asia
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Paragliding in South Korea

Korea Tourism Organization (KTO) has partnered travel search engine Wego to boost visitor arrivals from the GCC to South Korea.

To attract more tourists from the Middle East and North Africa (MENA) region, South Korea has been offering GCC travellers visa-free arrival for 30 to 90 days.

South Korea has recorded a steady increase in tourist arrivals from the GCC

KTO’s regional director Kang Kyoosang said: “Arrivals from the Gulf have been witnessing a steady growth year on year. (South) Korea received 25,129 Gulf nationals until the end of August 2019, an increase of 21.5 per cent compared to the same period in 2018.

“One of the key reasons for arrivals to remain steady is our consistent and aggressive marketing efforts in going across all platforms and reaching out to our consumers. With the increased frequency of flight services and luxurious cruise ships, the influx of travellers from Gulf and the Middle East have continued to surge.”

Mamoun Hmedan, managing director, MENA and India, Wego, added: “Searches on our platform to (South Korea) have increased by 16 per cent year-on-year.”

The KTO has been making efforts to raise awareness about South Korea’s Muslim-friendly offerings. It has pushed out initiatives such as the annual Halal Restaurant Week Korea held from September to October to promote Muslim-friendly restaurants across South Korea.

South Korea is home to 14 UNESCO World Heritage Sites, and tourists are increasingly exploring the lesser-travelled islands of the Korean Archipelago like Jeju and Busan.

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Sister Publications
TTG Asia TTGmice TTG India TTGssociations TTG Asia Luxury
TTG Asia | Thai hotels call for travel subsidies amid fuel concerns ahead of Songkran
TTG Asia | Asia drives next growth
TTG Asia | Indonesia shifts focus to shorthaul markets amid longhaul travel risks