THE Japanese government has extended the deadline for the sale of Kansai International Airport until July after no companies or consortiums agreed to meet the US$18 billion asking price.

The government is selling off the airport, which was completed on an artificial island in Osaka Bay in 1994, in an effort to reduce Japan’s national debt, but the price has put off potential investors.

A number of companies and consortiums have expressed interest in purchasing the 45-year lease on the airport, including: IFM and AMP Capital, the owners of Melbourne Airport; and Macquarie Capital, another Australian infrastructure investor, Changi Airport Group, and Ferrovial, a Spain-based multinational.

More than 19.4 million passengers used the airport for international and domestic flights in 2014, up nine per cent from the previous year, but the colossal construction costs incurred in the project have weighed heavily on the operator’s bottom line.

Nevertheless, the operator is pushing ahead with plans for a third terminal on the island, dedicated to LCCs, scheduled to open in 2017.

A hub for All Nippon Airways, Japan Airlines and budget carrier Peach, Kansai International operates 780 flights a week to destinations in Asia and Australia, around 60 per week to Europe and the Middle East, and a further 80 to North America.

INDONESIA welcomed the first Raffles Hotels & Resorts property with the launch of Raffles Jakarta earlier this week.

The 173-key property is part of the Ciputra World super block development, which includes offices, shopping mall, and residences, and linked to art centre Ciputra Artpreneur Centre that opened last year.

It pays homage to the iconic Indonesian artist Hendra Gunawan, and guests will find his works incorporated into hotel décor in both guestrooms and public areas.

The entry of the brand in Indonesia is part of the Raffles Hotels & Resorts and Fairmont Raffles Hotels International’s (FRHI) expansion programme, bringing Raffles’ portfolio to 12 strong.

Richard Schestak, general manager of the hotel, said the hotel is opening at a time when the luxury market is growing for Jakarta, despite the unstable current exchange rate. “Indonesia has good potential, it has strong growth of trade within the country.

“We believe the fluctuation of the rupiah will not impact international travel as we quote in the US dollar, while for Indonesian weekenders, we are offering special weekend rates,” he said.

Artadinata Djangkar, president director of Ciputra Adigraha, the owning company, said some Rp1.2 trillion (US$91.6 million) had been invested in the hotel and he expects an ROI within 12 years.

Jakarta has become an international business city like Singapore and Hong Kong, and Artadinata predicts that 90 per cent of Raffles Jakarta hotel guests will be international travellers.

FRHI also has plans to double its Fairmont Hotels & Resorts portfolio from its current strength of 114 properties within the next five years – with the spotlight largely on Asia-Pacific and particularly China.

ASIA-PACIFIC travellers are willing to sacrifice perks offered by LCCs to save more money, according to Expedia’s Low Cost Carrier Airline Index released yesterday.

The study polled about 3,200 travellers in Australia, New Zealand, Japan, South Korea, Hong Kong, India, Malaysia, the Philippines, Singapore, Thailand and Taiwan, examining perceptions regarding customer service and perks between LCCs and traditional carriers.

Key findings include:

• the most important deciding factor when choosing a carrier is the airline’s safety track record;
• men are slightly more willing to sacrifice amenities such as pillows and blankets, free checked luggage and bathroom privileges to save on fares;
• younger fliers (under 35 years) will give up legroom and carry-on luggage while fliers above 55 years old will forgo full-meal service;
• over 56 per cent of respondents will give up in-flight entertainment to save money, followed closely by full-meal service (49 per cent) and pillows and blankets (48 per cent). They are least likely to sacrifice legroom, bathroom privileges and carry-on items;
• 76 per cent will accept a slightly lower level of customer service;
• 51 per cent will consider an LCC for a weekend getaway, slightly more than a third for a flight up to three hours, 23 per cent for five hours, seven per cent for eight hours, and only one per cent for 16 hours; and
• 46 per cent spend more money on a hotel when booking a flight on a LCC.

LCC growth and supply in Asia-Pacific is expected to increase 9.5 per cent year-on-year during March 2015, according to the study.

For country-specific results of study, click here.

MALAYSIA today saw the launch of a new carrier, flymojo, which will be based out of Johor Bahru and Kota Kinabalu.

Speaking at the launch of flymojo at he Langkawi International Maritime and Aerospace (LIMA) 2015 exhibition, Aziz Kaprawi, deputy minister of transport: “With flymojo’s primary hub at Senai International Airport, Johor and secondary hub in Kota Kinabalu, Sabah, the airline’s ultra-modern fleet of CS100 aircraft will play a key role in improving connectivity between the Peninsula and Sabah and Sarawak, as well as other parts of the region.

“In addition, as the only airline utilising the Southern Corridor as its headquarters, flymojo will transform Senai into a key regional aviation and logistics hub – augmenting the government’s initiatives in developing Iskandar Malaysia and the Southern Corridor,” he added.

“Further strengthening Kota Kinabalu’s standing as a gateway into Malaysia, flymojo will also boost tourism into Sabah and Sarawak.”

Flymojo is expected to be the first customer and operator of the CS100 aircraft in the region upon execution of its firm purchase agreement with Canadian company Bombardier Commercial Aircraft.

Both parties signed a Letter of Intent for the sale and purchase of 20 CS100 aircraft, with options for an additional 20, at the LIMA 2015 exhibition.

SINGAPORE Airlines (SIA) and Changi Airport Group (CAG) yesterday announced the extension of their partnership for the Changi Transit Programme to March 31, 2016.

In a joint press statement, SIA’s divisional vice president for sales and marketing, Foo Chai Woo, said: “The Changi Transit Programme has been very well received by our customers since it was launched in October 2012. We are pleased to extend our successful partnership with CAG as we work together to attract more customers to transit through Changi Airport and experience more of what it has to offer.”

Under the extension, SIA and SilkAir customers transiting through Changi Airport through either carrier as well as selected Air New Zealand-operated flights to or from Auckland can redeem a Changi Dollar Voucher of S$20 (US$14) or S$40 value, depending on their point of origin.

The vouchers are valid for one-time use at more than 510 retail, F&B and service outlets in the transit and public areas of Terminals 1, 2 and 3, and are redeemable for one-time access to the Ambassador Transit Lounge at Terminals 2 and 3 for up to two hours.

SOUTH Korea’s Lotte Group will in May complete its acquisition of KT Rental, a major domestic company in the car rental sector, for about one trillion won (US$906 million) as part of its efforts to diversify its portfolio.

The auto rental company is being sold by KT Corp, South Korea’s second-largest mobile communications provider, which has been struggling financially in recent months.

Han Bo-young, a spokesman for Lotte, told TTG Asia e-Daily: “Considering recent consumption trends in Korea and overseas, we believe that the auto rental and sharing services will show high growth in the long run. We also expect it to create synergy with our diverse businesses, from retail to tourism and financial services.”

International and domestic travellers are prime targets for Lotte, which plans to dramatically increase its car rental outlets through its existing retail facilities, but the company also intends to tap into the growing trend for long-term car rental services among local residents.

The new venture will help make Lotte a more influential player in the inbound tourism market by providing a range of connected services for tourists.

It also has its eyes firmly on overseas markets. KT Rental and Lotte already have separate presence in Vietnam, Han pointed out, which creates more opportunities for collaboration in the future.

INDIA has added Sri Lanka to the list of countries accorded visa on arrival (VoA) through the electronic visa authorisation, effective April 14, announced India’s prime minister Narendra Modi during a recent visit to the country.

Modi also revealed that Air India will commence flights between New Delhi and Colombo shortly.

Welcoming the move, Sonal Swamy, director of Mumbai-based Syrisa Travels, said: “Sri Lanka is a huge potential source market for India, and the VoA will boost Buddhist tourism leisure travel greatly and provide an impetus with anticipated growth of 25-30 per cent immediately.”

Industry members in Sri Lanka also laud the move.

Sasi Ganeshan, CEO, VMS Travels, said the VoA will tremendously ease the process of travelling to India. “Getting a visa can be a cumbersome process as it takes a minimum of three days and applicants also have to submit bank details,” he explained.

S Paramanathan, managing director, Atlas Lanka Travels, said: “This is a huge boost. The Indian agency that issues visas on behalf of the Indian embassy here is processing 600 visas a day – that’s the kind of demand for Sri Lankans visiting India.”

Nilmin Nanayakkara, managing director, Nkar Travels, believes the VoA could spur “weekend hoppers”, such as those seeking new destinations apart from Singapore, which also offers VoA.

According to latest available figures, some 300,000 Sri Lankans visited India in 2013 for business, leisure and pilgrimage, with the main destinations being Chennai, Mumbai, New Delhi and Bengaluru.

India also granted Seychelles VoA from March 13, for a period of three months.

Additional reporting from Kolkata and Feizal Samath.

LUXURY helicopter tours for Kuala Lumpur and Langkawi Island, together with exclusive chartered flights to several popular tourist destinations around Malaysia, have been launched by AsiaHeli.com.

James Greaves, director of the Kuala Lumpur-based company which began operations this January, said: “Services are targeted at high-end tourists in search of breathtaking scenery and ‘time-saving’ charter flights.”

The tours include narration from the pilots. In Kuala Lumpur, customers may choose from 30-, 45- or 60-minute tours, with prices starting from RM1,105 (US$299) per person for a 30-minute flight.

In Langkawi, options of six-, 15-, 20- or 30-minute tours are available, with a six-minute flight costing RM185 per person.

There are also charter flights available from Kuala Lumpur to popular tourist destinations around Malaysia, including Tioman Island, Malacca, Cameron Highlands, Penang, Langkawi and Pangkor. Charter services to Singapore are also available.

AsiaHeli.com works with travel consultants and will discuss the commission structure upon enquiry.

TOURISM New Zealand and Changi Airport Group have come together to launch a life-sized Hobbit Hole as part of the NTOs Naturally New Zealand exhibition, in the departure hall of Changi Airport Terminal 3 to the public last Saturday, tentatively until April 5.

Local English-language newspaper Today reported that both parties, together with several partners including DHL and Singapore Airlines, are involved.

Russell Alexander, owner and general manager of Hobbiton, was quoted as saying: “Hobbiton sits in an idyllic landscape in New Zealand and we hope to give visitors a little taste of what New Zealand has to offer.

“You can smell the flowers; the props and the timber were all brought in from New Zealand. We have art directors and builders to make sure everything is made to look like our hobbit holes back home. There are 44 hobbit holes in Hobbiton… this travelling one is our 45^th.”

Jacqui Smith, a representative from Tourism New Zealand was also quoted as saying: “We know there is quite a big appetite for New Zealand in Singapore. The last film in the Hobbit trilogy is the highest grossing among the LOTR and Hobbit series here. Singapore is a key market for visitors to New Zealand and this year, we celebrate 50 years of diplomatic relations as well.”

The same article reported that other activities, including food tasting sessions of New Zealand produce and a 5D simulator ride built next to the hole are being run in conjunction.

Visitor numbers from Singapore to New Zealand have continued to rise, increasing 8.2 per cent as of end-January 2015. Tourism New Zealand’s regional manager of South and South-east Asia, Steven Dixon, said in a press statement the rise is expected to continue with increasing air connectivity and promotional campaigns.

“We were very pleased to officially welcome our national carrier back to Singapore earlier this month and will be working closely to grow both demand and capacity for travel to New Zealand,” he said.