IATA and Star Alliance have renewed their collaboration on traveller document verification.
In a signing ceremony at IATA’s 75th Annual General Meeting in Seoul, the two agreed that IATA’s Timatic AutoCheck solution will continue to power Automated Document Check (ADC) for Star Alliance member carriers.
IATA’s Timatic AutoCheck solution will continue to power Automated Document Check for Star Alliance Carriers
IATA Timatic AutoCheck enables Star Alliance customers checking-in at the airport counter or online to verify that their travel documents are valid and complete for the whole journey, including any transit point before travel begins.
This, IATA says, delivers benefits such as:
• Preventing the embarrassing and distressing situation for passengers of being denied entry to a country on arrival owing to missing or invalid documents,
• Enabling a seamless experience when travel encompasses multiple carriers. Passengers will no longer need to see an agent to have their travel documents checked and rechecked at transit points, and
• Avoiding the passenger fine to airlines for transporting inadmissible passengers
Jeffrey Goh, CEO Star Alliance said: “This marks another milestone in our continuing strategy to improve the passenger travel experience, especially for those customers who fly on multi-carrier journeys. Our partnership with IATA to extend collaboration on passenger document verification through use of IATA’s Timatic AutoCheck to support our proven solution of the ADC will help ensure a seamless travel experience for our members’ 775 million passengers, a priority at the heart of our strategic repositioning.”
“Digital transformation is essential to meeting evolving passenger expectations today and into the future. Star’s selection of Timatic will give its customers a better experience,” commented Alexandre de Juniac, IATA’s director general and CEO.
Qantas and American Airlines are creating a joint venture to better serve customers flying between the US and Australia and New Zealand.
Final approval of the joint business will allow for commercial integration between the two carriers, delivering new routes and customer benefits, including:
The opportunity to launch new routes and flights to new destinations, including to city pairs not currently served by either carrier;
An expanded codeshare relationship and optimised schedules on trans-Pacific services, opening up more connections to more destinations and reduced total travel time;
Better access to seats on each carrier’s network, leading to lower fares.
Additional frequent flyer benefits by further integrating the carrier’s programmes, including higher earn rates for points on each other’s networks beyond what is possible today through oneworld, as well as increased redemption opportunities and improved reciprocal end-to-end recognition of our top-tier frequent flyers;
Co-location at airports, investments in lounges, baggage systems and other infrastructure designed to better serve the carriers’ joint customers
As part of the case put to the US Department of Transportation (DOT), Qantas and American flagged an intention to launch several new routes within the first two years of the proposed joint business.
Qantas expects to announce details of two new routes – Brisbane-Chicago and Brisbane-San Francisco – once final approval is received.
“As was evident in the unprecedented level of public support for this application, the joint business will also create additional jobs at our respective companies and in the industries we serve,” said American’s chairman and CEO Doug Parker.
Qantas Group CEO, Alan Joyce, said: “For more than 30 years, Qantas and American have connected the US and Australia as partners. This joint business means that we’ll be able to deepen this partnership to offer new routes, better flight connections and more frequent flyer benefits.”
A final decision from the DOT is expected in the next few weeks.
Holiday Inn Resorts is inviting little travellers to try their hands “working” in its hotels through the Little Big Hotelier programme.
Four to 12 year-olds are taken through an edutainment experience that brings learning to life through role play in different properties in Asia.
Little Big Hoteliers
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Participants take up make-believe roles in key departments and learn new skills, all under the guidance of the Holiday Inn Hotelier crew and their parents.
Shantha de Silva, head of resorts and Thailand and Indonesia at InterContinental Hotels Group, said: “The programme helps empower children to embrace the world as their classroom. From restaurants to housekeeping, recreation to engineering. A resort is the perfect environment for children to gain invaluable skills, be it effective communication, interaction with others, basic culinary and recreation skills.”
“Children of various nationalities and ages can come together to spend their day with our crew and have a whale of a time learning not only the operational aspects of running a hotel but also learning from each other and the multiple resort personalities that they can encounter during their stay.”
To take part in the programme, kids register at the resort’s Holiday Inn Kids Club, choosing the time and role they’d like to experience across a variety of jobs.
The participating hotels are: Holiday Inn Resort Bali Benoa, Holiday Inn Resort Baruna Bali, Holiday Inn Resort Batam, Holiday Inn Resort Penang,
Holiday Inn Resort Krabi Ao Nang Beach, Holiday Inn Resort Phi Phi, Holiday Inn Resort Phuket, Holiday Inn Resort Phuket Mai Khao Beach, Holiday Inn Resort Vana Nava Hua Hin and Holiday Inn Resort Kandooma Maldives.
An upcoming Japanese animated film has sparked a series of publicity pushes for Singapore, which serves as an unprecedented setting for the show.
Detective Conan: Fist of the Blue Sapphire heavily features iconic scenes of Singapore, and it is the first of 23 movies under the popular Japanese franchise Detective Conan set outside of Japan.
Scenes from the first Detective Conan movie to be set outside of Japan
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In its home country, the movie beat out Avengers: Endgame as the best-selling movie in the box office for three weeks after its debut.
Scenes of Singapore featured in the movie include Marina Bay Sands, Raffles Hotel, Suntec City, Merlion Park, Gardens by the Bay, shophouses and Maxwell Food Centre, as well as local dishes such as chicken rice and kaya toast.
Chang Chee Pey, assistant chief executive, international group, Singapore Tourism Board (STB), shared that the Japanese movie studio committee first approached STB in 2017 with the intent to feature Singapore and continued to consult the NTO on recommendations for locations to feature.
Director Chika Nagaoka revealed that some settings in the movie – such as the Fountain of Wealth at Suntec City and the Marina Bay Sands light show – were written into the script after she was “inspired” by a visit to Singapore.
To capitalise on this release, STB has moved in on a series of product partnerships with tourism players. Chang said: “Local tourism stakeholders have been very supportive, and worked with us to create products that will drive visitorship.”
For example, Singapore Airlines will launch Detective Conan-themed amenities and sakura mochi on all outgoing flights from Japan. STB also partnered with Japan travel wholesaler HIS to create a Detective Conan travel package, under which visitors will tour film locations in Singapore on board Detective Conan-themed buses.
In Bangkok, STB has collaborated with a café to offer Detective Conan-themed sweets and drinks. Fans can also pose for photos against backdrops of scenes from the movie.
Singapore’s Chinatown now also sports a Detective Conan mural depicting protagonist Conan interacting with a traditional street food hawker amidst a durian feast.
The portrayal of Singapore in this movie is hoped to reach key markets in Asia, namely Japan, Thailand and Indonesia, said Chang.
Belitung, a new alternative to Bintan for Singaporeans seeking getaway
The cessation of Garuda Indonesia’s four-times-weekly services between Singapore and Belitung has not only dashed the Indonesian island’s fledgling ambitions for international traffic, but also resulted in loss of business within the travel trade.
Matius Putrawan, CEO of Kasih Karunia Tour, reported that bookings from overseas fell more than 80 per cent since the loss of the Singapore connection.
The flights allowed Belitung to be sold as a new alternative to Bintan for Singaporeans seeking getaways
“From January to March, we had around 300 international travellers. The number has fallen drastically to only 14 since April,” he said.
His efforts to leverage the flights to sell new packages will also be in vain now. “I was planning to develop the Chinese market by selling China-Singapore-Belitung tour packages. I had (made sales calls) to several travel agents in China earlier this year.”
Yudianto Evan Setiawan, director of Billitonesia Tour, is having to cope with similar loss of business.
“A few groups were planning to visit Belitung in June and July, but this (service) closure inevitably made them cancel their trip and we lost the business.”
Without a direct link, Singapore and overseas clients are now “thinking twice” about selling Belitung, as domestic flights via Jakarta are more expensive, he added.
“At this moment, the dream to make Belitung an international destination is broken,” Yudianto said.
Even though demand tends to be slow in the first six months of introducing a new product, he has seen “pretty good response” the the past months. “We might have just introduced products last November, but we already received several tour groups from Singapore during February-April.”
In the absence of direct flights from Singapore, his clients in Singapore and overseas are thinking twice about selling Belitung. The alternate route is through Jakarta, but it is not favoured due to being time-consuming and relatively expensive.
Now, the travel trade is looking to LCCs to possibly pick up where Garuda left off. “We’re relying on AirAsia, which is said to launch flights from Kuala Lumpur in August. Hopefully the regional government will materialise the cooperation with AirAsia,” Yudianto expressed.
Following Garuda’s termination of the route, Isyak Meirobie, deputy regent of Belitung, has moved quickly to meet with several airlines, including AirAsia and Jetstar. “The biggest obstacle in growing Belitung’s tourism lies in access. Garuda’s termination of the Belitung-Singapore flight routes has (disappointed) the industry, “said Isyak in a media statement.
The regional government of Belitung also gained audience with Moeldoko, the chief of staff of president, in hopes the central government would help ensure smooth issuance of flight permits for AirAsia and Jetstar.
If everything goes to plan, AirAsia will start Kuala Lumpur-Belitung-Jakarta route from August 8, 2019, while the regional government expects to welcome Jetstar’s Singapore-Belitung services after July.
Six parties come together to sign the agreement to jointly promote Busan-Singapore trade and tourism
A six-party MoU has been signed to promote trade, business and tourism flows between Singapore and Busan.
The one-year partnership was signed between Changi Airport Group, Busan Metropolitan City (BMC), Korea Airports Corporation (KAC), Eastar Jet, Jeju Air and SilkAir.
Six parties come together to sign the agreement to jointly promote Busan-Singapore trade and tourism
This follows the allocation of traffic rights to South Korean airlines Eastar Jet and Jeju Air, as well as SilkAir, the regional wing of Singapore Airlines, to operate flights on the Singapore-Busan route.
SilkAir’s four-times weekly service to Busan started on May 1, 2019 while Jeju Air will commence its service to Singapore on July 4, 2019. Eastar Jet is expected to connect the cities in the coming months.
The six-party collaboration aims to strengthen air connectivity between Singapore and Busan and raise awareness of the respective airlines’ product offerings.
In the coming year, residents and travellers from both cities can expect various on-ground events such as roadshows, travel fairs and campaigns as CAG, KAC and BMC collaborate to help grow and sustain the Singapore–Busan route.
Busan had been identified by OAG – a leading provider of digital flight information, intelligence and analytics – as the top unserved market for Changi Airport, with an estimated indirect two-way traffic exceeding 75,000 passenger movements annually.
Lim Ching Kiat, managing director, air hub development of Changi Airport Group, said: “For many years, connectivity between Singapore and South Korea has been limited to Seoul with around 60 weekly services. As Changi Airport is the gateway to South-east Asia and given the increasing travel demand over the years between Singapore and Busan, we are pleased to welcome the opening of this new route which will offer greater convenience for travellers between the two cities.”
Almost all visa applicants to the US need to submit social media information
Nearly all visa applicants to the US are now required to submit any information about social media accounts they have used in the past five years under a State Department policy, the Associated Press reported.
Under the newly adopted regulations that started on Friday, the US government will through such account information gain access to photos, locations, dates of birth, dates of milestones and other personal data commonly shared on social media.
Almost all visa applicants to the US need to submit social media information
The wider application of the Trump administration policy to request social media accounts – which was proposed in March 2018 – is estimated to affect 14.7 million people annually.
Only certain diplomatic and official visa applicants will be exempt from the stringent new measures, but people travelling to the US to work or to study will have to hand over their information, according to BBC.
“We already request certain contact information, travel history, family member information, and previous addresses from all visa applicants,” the State Department said in a statement. “We are constantly working to find mechanisms to improve our screening processes to protect U.S. citizens, while supporting legitimate travel to the US.”
Anyone who lies about their social media use could face serious immigration consequences, according to media reports.
IATA has downgraded its 2019 outlook for the global air transport industry to a US$28 billion profit, from US$35.5 billion forecast in December 2018, in the face of rising fuel prices and a weakening of world trade.
The association also restated its 2018 net post-tax profits, estimated at US$30 billion.
In 2019 overall costs are expected to grow by 7.4%, outpacing a 6.5% rise in revenues. As a result, net margins are expected to be squeezed to 3.2% (from 3.7% in 2018). Profit per passenger will similarly decline to US$6.1 (from US$6.9 in 2018).
Costs rising across the board; regional differences significant
“This year will be the 10th consecutive year in the black for the airline industry. But margins are being squeezed by rising costs right across the board – including labor, fuel and infrastructure. Stiff competition among airlines keeps yields from rising. Weakening of global trade is likely to continue as the US-China trade war intensifies,” said Alexandre de Juniac, IATA’s director general and CEO.
“Airlines will still turn a profit this year, but there is no easy money to be made.”
Moreover, the job of spreading financial resilience throughout the industry is only half complete with a major gap in profitability between the performance of airlines in North America, Europe and Asia-Pacific and the performance of those in Africa, Latin America and the Middle East.
“The good news is that airlines have broken the boom-and-bust cycle. A downturn in the trading environment no longer plunges the industry into a deep crisis. But under current circumstances, the great achievement of the industry – creating value for investors with normal levels of profitability is at risk,” said de Juniac.
Costs
The high price of fuel from 2018 (US$71.6/barrel Brent) will continue in 2019 with an average cost of US$70.00/barrel Brent expected. This is 27.5% higher than the US$54.9/barrel Brent in 2017. IATA says fuel costs will account for 25% of operating costs (up from 23.5% in 2018).
Non-fuel unit costs are expected to rise to 39.5 cents per available tonne kilometre from 39.2 cents, because of higher labor, infrastructure and other costs.
Overall expenses are expected to rise 7.4% to US$822 billion.
Overall revenues are not keeping pace with the rise in costs. For 2019, total revenues of US$865 billion are expected (+6.5% on 2018).
Passenger demand
IATA expects passenger demand to strengthen with global GDP growth expected to remain relatively strong at 2.7%, albeit slower than in 2018 (3.1%). Governments and central banks have responded to slower economic growth with more supportive policies, which is providing an offset to trade weakness.
But economic growth and household incomes will still grow more slowly, so total passenger demand, measured in revenue passenger kilometres, is expected to grow by 5.0% (down from 7.4% in 2018). Airlines have responded to the slower growth environment by trimming capacity expansion to 4.7% (ASKs).
Total passenger numbers are expected to rise to 4.6 billion (up from 4.4 billion in 2018).
Passenger yields are expected to remain flat in 2019 after a 2.1% fall in 2018.
Risk factors
Downside risks are significant. Political instability and the potential for conflict never bodes well for air travel. Even more critical is the proliferation of protectionist measures and the escalation of trade wars.
As the US-China trade war intensifies, the immediate risks to an already beleaguered air cargo industry increase. And, while passenger traffic demand is holding up, the impact of worsening trade relations could spillover and dampen demand.
“Aviation needs borders that are open to people and to trade. Nobody wins from trade wars, protectionist policies or isolationist agendas. But everybody benefits from growing connectivity. A more inclusive globalisation must be the way forward,” said de Juniac.
Regional roundup
All regions are expecting a reduction in profitability with the exception of North America and Latin America.
North American carriers will deliver the strongest financial performance with a US$15 billion post tax profit (up from US$14.5 billion in 2018). That represents a net profit of US$14.77 per passenger, which is a marked improvement from just seven years earlier (US$2.3 in 2012). Net margins, forecast at 5.5%, are down from 2018 levels owing to higher than expected fuel costs and slowing growth. The limited downside in this region has been underpinned by consolidation, helping to sustain load factors (passenger + cargo) above 65%, and ancillaries, which limit the impact of higher fuel costs, keeping breakeven load factors to 59.5%.
European airlines will deliver a net profit of US$8.1 billion (down from US$9.4 billion in 2018). That represents a net profit per passenger of US$6.75 and a net margin of 3.7% – both are the second strongest industry results, but below what North American carriers earn. Breakeven load factors are the highest at 70.2%, caused by low yields due to the highly competitive open aviation area, high regulatory costs, and inefficient infrastructure. In 2019, for example, en-route air traffic management delays doubled to 19.1 million minutes. Europe also is one of the more exposed regions to weak international trade and this has damaged prospects this year.
Asia-Pacific airlines will deliver a net profit of US$6.0 billion (down from US$7.7 billion in 2018). That represents a net profit per passenger of US$3.51 and a net margin of 2.3%. The region is showing very diverse performance.
Middle Eastern airlines will deliver a combined net loss of US$1.1 billion (slightly worse than the US$1.0 billion loss in 2018). That equates to a US$5 loss per passenger and a negative net margin (-1.9%). The region has faced substantial challenges in recent years, both to the business environment and to business models. Airlines there are going through a process of adjustment and announced schedules point to a substantial slowdown in capacity growth in 2019. Performance is now improving but the worsening in the business environment is expected to prolong losses in 2019.
Latin American airlines will deliver a net profit of US$200 million. This reflects a moderate improvement from the US$500 million loss in 2018, as the recovery of the Brazilian economy is offsetting higher oil prices. With a US$0.50 profit per passenger, the region’s net margin is expected to be a thin 0.4%.
African airlines will deliver a US$100 million loss (unchanged from 2018), continuing a weak trend into its fourth year. Each passenger carried is expected to cost the carriers US$1.54, leading to a -1.0% net margin. Breakeven load factors are relatively low, as yields are a little higher than average and costs are lower. However, few airlines in the region are able to achieve adequate load factors, which averaged the lowest globally at 60.7% in 2018. Overall, industry performance is improving, but only slowly.
THAI Smile Airways is expected to join the Star Alliance network as connecting partner by the end of this year, joining Juneyao Airlines that entered in 2017.
Connecting partners allow Star Alliance to close network gaps that may exist of a regional basis. THAI Smile Airways will add 11 new destinations to the Star Alliance network, which already comprises over 1,300 airports in 194 countries.
THAI Smile Airways in Chiang Rai
The Bangkok-based airline has begun to implement the necessary technology and commercial links which will allow THAI Smile to begin serving Star Alliance connecting passengers in 2020. Once that is complete, the airline will be able to offer privileges to qualifying Star Alliance Gold Status passengers, including priority check-in, Thai Smile lounge access and priority baggage delivery.
The programme was established by Star Alliance in June 2016 to complement its membership model.
In contrast to full membership in the alliance, which requires the building of commercial ties with all full members, the more regional connecting partner scope calls for commercial relationships with a minimum of three carriers only.
Customers travelling on an itinerary which includes a transfer between a Star Alliance member airline and a connecting partner will be offered standard Alliance benefits such as passenger and baggage through check-in. In addition, customers who have achieved Star Alliance Gold Status in their frequent flyer programme will enjoy premium customer benefits.
Ground Asia has integrated 14 out of 17 sustainable development goals (SDG) into its 50 student travel and community engagement experiences in six Asian countries.
For example, the Rural Business Development Study trip in Cambodia supports goals 1, 8, 9, 10, 11: poverty alleviation; decent work and economic growth; industry innovation and infrastructure; reduced inequalities; and sustainable cities and communities.
UN Sustainable Development Goals
The Physiotherapy in Vietnam student journey supports goal 3: good health and well-being.
Mangrove Protection in Bali supports goals 11 to 15: sustainable cities and communities; responsible consumption and production; climate action; life below water; life on land; and so on.
In the new SDG affiliation, Ground Asia also identifies learning outcomes that students can expect from each trip.
Lauren Groves, general manager of the Thailand-based company, said: “The UN SDGs are not going to be achieved without the efforts of many individuals, companies, NGOs, and civic organisations around the world. So, as Ground Asia is dedicated to the triple bottom line, we are doing what makes sense and committing to a wider, more noble set of goals through educational travel.”
