An excess of capacity, slumping business travel demand and intense competition with rival airlines have led to Cathay Pacific Airways seeing its first full-year loss since the 2008 global financial crisis.
The airline reported an attributable loss of HK$575 million (US$74 million) for 2016, down from the HK$6 billion profit in 2015.
Passenger revenue decreased 8.4 per cent from 2015 to HK$66,926 million in 2016. Capacity grew 2.4 per cent on the back of new routes and increased frequencies, but the load factor dropped 1.2 percentage points to 84.5 per cent while yield fell 9.2 per cent to HK54.1 cents.
Fuel is still the group’s most significant cost, accounting for 29.6 per cent of total operating costs in 2016, compared with 34 per cent in 2015. After taking hedging losses into account, the fuel costs decreased by HK$5 billion (or 15.2 per cent) from 2015.
In response to weak revenues, Cathay Pacific will embark on “a three-year programme of corporate transformation” to seek profitability, announced Cathay Pacific’s chairman, John Slosar, in a press statement.
The airline chief also expects the operating environment in 2017 to remain “challenging” as strong competition and a strong Hong Kong dollar will continue to put pressure on yield.
The Philippine Department of Tourism, Province of Aklan and Royal Caribbean Cruises (RCCL) have sealed a partnership to construct a purpose-built cruise ship terminal in the Western Visayas’ Caticlan or Boracay.
The agreement, signed on the sidelines of the Seatrade Cruise Conference (SCC), will see the Miami-based global cruise company provide all the necessary technical and financial support. It is still under negotiation whether the expected homeport for RCCL will open to other commercial vessels as well.
(From left) Province of Aklan’s Florencio Miraflores; Royal Caribbean Cruise’s John Tercek; and Philippine Department of Tourism’s Benito Bengzon, Jr
Said DoT undersecretary Benito Bengzon, Jr, who headed the Philippine delegation at the SCC: “We are seeing a major shift in the major cruise market. There will be more ships to be deployed in South-east Asia, and we are hoping that the Philippines will get more than its fair share of the market.”
As well, he added that the extended deployment of a number of large cruise ships to the country is a crucial factor in positioning the Philippines as a compelling and attractive value-for-money transit port.
Following Puerto Princesa and Manila, Boracay is the Philippines’ third largest cruise destination with 29 calls over the last four years.
International cruise calls to the Philippines have been growing at an average 27.8 per cent over the past four years, from 56 calls in 2014 to 70 calls in 2015 and 72 calls in 2016. This year, the Philippines expects over a hundred port calls bringing in an estimated 122,000 cruise passengers.
Singapore Airlines (SIA) and regional subsidiary SilkAir have signed an agreement to codeshare on Indian domestic flights operated by Vistara, with effect from March 14, 2017.
The codeshare agreement is Vistara’s first with an airline group, as well as SIA’s and SilkAir’s first with an India-based domestic carrier.
Under the agreement, SIA will add its ‘SQ’ designator code to Vistara-operated flights beyond Mumbai and New Delhi to 10 Indian destinations – Ahmedabad, Bengaluru, Hyderabad, Lucknow, Kochi, Kolkata, Bhubaneswar, Goa, Guwahati and Port Blair – of which the last four destinations are new to SIA Group’s network of 15 destinations in India.
Meanwhile, SilkAir will add its ‘MI’ designator code to Vistara-operated flights beyond Bengaluru and Kolkata to six destinations: Guwahati, Hyderabad, Kochi, Mumbai, New Delhi and Port Blair.
Members of both frequent flyer programmes, KrisFlyer and Club Vistara, can earn miles when travelling on SIA- and Vistara-operated flights. As well, KrisFlyer members can also redeem their miles for Vistara flights, and vice versa.
In addition, PPS Club and KrisFlyer Elite Gold members will enjoy lounge access, increased baggage allowance, and priority baggage handling, check-in and boarding when travelling on Vistara-operated flights.
Likewise, Club Vistara Platinum and Gold members will enjoy the same benefits when travelling on SIA-operated flights. PPS Club and KrisFlyer members will also earn Elite miles when travelling on SIA codeshare flights operated by Vistara.
ASEAN tourism ministers and leaders came together to promote Visit ASEAN@50: Golden Celebration 2017 among international media and the travel trade in longhaul markets at last week’s ITB Berlin, during which a media roundtable discussion, fashion show with cultural performance and cocktail party were held to commemorate the region’s golden jubilee this year. The Visit ASEAN@50 campaign was officially launched in January at ATF2017 in Singapore.
This lifestyle resort impresses with its laid-back vibe and strong suite of amenities. Plus, its location in Bali’s hip enclave doesn’t hurt too, finds Xinyi Liang-Pholsena
Location
Montigo Resorts, Seminyak occupies a prime location in Seminyak on Jalan Petitenget, a street lined with upscale fashion boutiques and hip boutiques – just next door is Potato Head Beach Club. The blue-and-white-themed resort definitely has the chilled vibe of an Australian beach club, and feels like an oasis despite its address in the busy Seminyak enclave.
Room
We checked into the Executive Suite on the ground floor, which comes with an outdoor patio where in-suite BBQs can be had upon request.
The fluffy bed and billowy pillows will appeal to those who like their sleep to be marshmallowy. A tall partition – where the TV is ensconced – separates the bedroom and carves out a different zone for relaxation within the delightful space.
The marbled bathroom is spacious and comes with two basins – couples and families do not have jostle for room in the morning – and Bvlgari shower amenities.
Executive Suite
F&B
Despite being the only on-site dining outlet, the all-day-dining restaurant Tiigo offers a good selection of Western and Balinese options all times of the day.
The food is clearly an expression of the chef’s ingenuity and high-quality, locally sourced ingredients. Our dinner started with cold somen served with wakame and negi on an ice brick, progressed into smoked seafood trio of scallops, salmon and prawns, before rounding off on a sweet note with roasted cardamon panna cotta for dessert.
Facilities
Since its acquisition by KOP in 2015, the former Samara resort has been given a facelift and refreshed facilities are opening in phrases, with a new wing currently underway to add more rooms.
Tiigo Pool
For a resort of its size, it’s quite amazing that there are three swimming pools. Sited at the resort entrance beside Tiigo, the striking azure pool with its floating beanbags is clearly a space for those not shy of attention. The other two pools (open to resort guests only) are sited in more modest surroundings, one in front of the gym and the other hemmed in by palm trees beside the spa.
The nine-suite spa is a haven in itself, where wellness seekers can luxuriate in soothing treatments in the cocoon-like ambience, while young children can be entertained in the 300m2 Tilo Kids Club.
Adorable Vespa scooters in turquoise are available for those keen to explore the bustling environs on two wheels.
Service
Everyone was eager to provide impeccable service and even offer tips on the best Instagram spots in Bali.
Verdict
A high-end lifestyle resort that scores favourably on location, comfort and service.
South Korean start-up carrier KAIR Airlines has placed a firm order of eight A320ceo to launch its new low-cost operation.
Based in Cheongju in central South Korea, the airline is planning to focus primarily on services to international destinations in north-east Asia.
“We see enormous potential for the development of a low cost model linking central South Korea with destinations in China, Taiwan and Japan”, said Byung Ho Kang, KAIR Airlines’ representative director and chairman.
He added that the airline will “focus on point-to-point services at low fares” and that the single-aisle A320 will be “perfect for our business model and customers”.
The Little Guest Hotels Collection has debuted in Asia-Pacific with the appointment of Horus Development & Consulting as its marketing representative in Asia, as it seeks to expand from its current 20 hotels to 50 properties in 2017.
Founded by entrepreneur Jérôme Stéfanski, himself a young father, The Little Guest Hotels Collection concept was created when he could not get an emergency milk bottle for his baby at a five-star hotel in The Hague.
The collection brings together upscale hotels that meet the stringent standards of families with children under the age of 12, offering services such as children’s dedicated programme, shuttle with baby seat, baby cosmetics, pacifiers and milk bottles, and availability of medical expertise in the vicinity, among others.
Members of The Little Guest Hotels Collection include palaces such as Le Negresco (Nice), Royal (Evian) and Beau-Rivage (Lausanne) in Europe, as well as The Slate in Phuket and The Farm at Cape Kidnappers in New Zealand for Asia-Pacific.
The mountainous province of Guizhou in south-west China is hoping to promote its technological attractions, a large radio telescope and a series of high-level bridges, to lure more foreign visitors.
Leading a 40-strong tourism delegation to Europe, the deputy governor of Guizhou, Lu Yongzheng, said they were looking to promote the 500-metre Aperture Spherical Radio Telescope (FAST), which opened in September 2016.
The surrounding landscape near Xingyi City, Guizhou Province
The world’s largest telescope, FAST is located in an area unaffected by man-made light and the visitor-viewing platform currently under construction will soon enable astronomy-based tours at the facility.
In a presentation to the Spanish travel trade in Madrid, Lu related that the province will also promote a series of new high-level bridges that were built specifically to open up the remote province. “We now have five of the 10 highest bridges in the world, including the first, third and fourth,” he said.
The improved accessibility will also help to open up Guizhou to eco-conscious tourists, especially from longhaul markets such as Germany and Switzerland, Li pointed out. “Up to now we have paid more attention to tourism from mainland China and South-east Asia,” he added.
Guizhou Tourism Development Commission’s director general, Li San Qi, believes that these attractions will enhance the province’s image as a destination home to natural landscapes and diverse ethnic groups. He told TTG Asia: “This new infrastructure provides a very different experience for visitors. We want to combine this technology with the beautiful scenic areas we have.”
Princess Cruises has announced that it will continue to feature Penang as a port of call for its homeporting seasons out of Singapore for 2017-2018.
Diamond Princess will make eight visits to Penang this season (November 2016 through March 2017) and Sapphire Princess will follow with another eight calls for the next season (November 2017 through March 2018). Both ships will bring in over 40,000 guests for two seasons.
Diamond Princess
Guests from Penang and northern Malaysia will continue to have the option of boarding the ship from Port Swettenham on her South-east Asian voyages. For the current season,Diamond Princess will call at 13 ports (including Kota Kinabalu for the first time this season) in six countries across the region, offering 16 round-trip departures with 25 itineraries, varying between three- to 12-day voyages.
Farriek Tawfik, director of South-east Asia, Princess Cruises: “Over the years, Penang has become one of our guests’ favourite port of calls, with over 80 percent of guests disembarking the ship when they visit Penang to enjoy the wonderful local food, great shopping and charming sightseeing attractions.”
Meanwhile, the cruise line’s newest ship, the 3,560-guest Majestic Princess, will make her maiden call to Penang in June before sailing to Port Klang, Singapore and then onward to China.
Bintan Resorts and Sriwijaya Air yesterday signed an MoU in Jakarta to promote Bintan as a tourist destination, as well as to develop a multi-destination concept by connecting the integrated resort with Yogyakarta, Bali and Manado.
Bintan Resorts, supported by Gallant Venture Group as its holding company, will develop the infrastructure, improve accessibility to and from Bintan for both domestic and international travellers, and pair destinations in the country.
The Sanchaya’s Sea Suite Bedroom, one of the resorts on Bintan
Frans Gunara, vice president director of Bintan Resorts Cakrawala, said: “Now travellers need to go in and out of Bintan (via) Singapore. For those that need visas to Singapore like the Chinese, they need a multiple visa if they want to go to Bintan via Singapore.
“With the improved access, they can enter Bintan visa-free and out of Singapore with a single visa from the ferry terminal we are building close to the airport.”
Meanwhile, Bintan Aviation Investment is currently developing the airport in Bintan, which when completed in 2018 will be used by Sriwijaya Air as a base.
Toto Nursatyo, commercial director of Sriwijaya Air, said: “Bintan has all the facilities to make it a destination; for now it is a shadow destination for Singapore. With improved accessibility, we expect Bintan to be a destination (in itself) and (act as a) gateway to other parts of Indonesia.”
Bintan Resorts currently has 1,700 rooms and the number will increase to 7,000 rooms by 2020, according to Frans, who expects between six and eight million arrivals per year in the future.
The Indonesian Ministry of Tourism has set a target for both Batam and Bintan to contribute 24 per cent of total arrivals – or 4.8 million tourists – to the country in 2019. Last year, Bintan alone received nearly 700,000 arrivals, and the destination is targeting two million arrivals by 2019.
