GARUDA Indonesia has sealed a commercial cooperation agreement with Czech Airlines that will see the latter become a feeder source to its European hub in Amsterdam.

The agreement, signed on February 23, covers passenger codeshare, joint marketing and promotion, maintenance, repair and overhaul, and training.

Dian Ediono, general manager for continental Europe and Russia, Garuda Indonesia, said the codeshare turns the Czech Republic into a feeder market for Amsterdam and that the airline is seeking similar partnerships with airlines from countries neighbouring the Netherlands, though he was unable to disclose which ones.

“There are opportunities to develop other source markets now that we are a (premium) airline and flying the new Boeing 777-300ER (in three classes). We can cater to all segments – tourists and business travellers alike,” said Dion.

Welcoming the move, Herman Rukmanadi, managing director of Bhara Tours, said that while direct flights from Europe would be the best scenario for tour operators, developing feeder markets through codeshares is “one step forward”.

“Taking Garuda means a shorter flight time to Jakarta, with good connections to domestic routes at a more economical price for travellers,” he added.

But Rocky Praputranto, operations director of Panorama Destination, said: “I’m not sure what the extent of cooperation with Czech Airlines is, but what we actually need is a Garuda GSA in the Czech Republic that can push sales for the airline.”

A ready market for Garuda’s Amsterdam-Jakarta connection exists, as evidenced by the feeder markets using KLM flights, but the carrier must drum up awareness beyond the capital of the Netherlands, he said.

Garuda flies Jakarta-Amsterdam-London four times a week in the low season from January to March and five times weekly the rest of the year.

Dion said Garuda is aiming to make the service a daily one.

Marintour Indonesia’s executive director, Ismail Ali, expected that Garuda’s recruitment of feeder markets would not dilute the potential of the sizeable Dutch market.

“Our partner (in the Netherlands) uses Garuda a lot and we receive groups and FITs flying Garuda every week,” he said. “What Garuda needs is to work with preferred tour operators there to continue developing business from the Netherlands.”

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CHARTER flights from the UK, Netherlands and Scandinavia to Sri Lanka are on the way as TUI and Sri Lanka’s Aitken Spence Travels renew old ties.

TUI and Aitken Spence have confirmed weekly charter flights for winter 2016, said Madubhani Perera, director/marketing at Sri Lanka Tourism Promotion Bureau (SLTPB).

Nalin Jayasundera, managing director of Aitken Spence Travels, said: “Aitken Spence Travels last worked with TUI more than a decade ago.

“Aitken Spence will provide these tourists with options for round-island tours, beach stays with excursions, or a combination of both.”

These charters are one of more upcoming flights to link Sri Lanka and Europe, as SLTPB yesterday started discussions with Lufthansa’s low-cost subsidiary, Eurowings, to commence twice-weekly charter flights from Cologne to Colombo in summer 2016, and with Austrian Airlines for scheduled flights between the two countries beginning 1H16.

National flag carrier SriLankan Airlines will also start codesharing operations with AirBerlin for daily Berlin-Colombo flights from March 27, said Kaushal Seneviratne, regional manager for UK, Europe & North America of the airline.

“The European market is an important one for Sri Lanka as the average traveller spends 10-14 days in the destination, as compared with Asians who stay three-four days,” said Perera.

To further increase the length of stay, SLTPB is promoting new destinations on the east coast to Europe, including Trincomalee, Pasikudah, Nilaveli, Arugam Bay, and UNESCO World Heritage Site Sinharaja Forest Reserve.

It will also organise a roadshow to six major German cities in 2H15 to promote to consumers and trade alike. Germany is Sri Lanka’s second largest European market and welcomed 20 per cent more German tourists in 2014 than in the year before.

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EUROPEAN fascination for Myanmar remains untouched, with tour operators attending ITB Berlin reporting growth in bookings for 2015 despite news of violence close to the Myanmar-China border.

Phyoe Wai Yar Zar, chairman of Myanmar Tourism Marketing, said there had been concerns among the trade if Myanmar was safe to visit, but there has been no impact on arrivals.

“Since the conflict on the north-eastern Chinese border, we have been sending updates that the location (of the fighting) is remote and the situation has been contained,” he said, adding that a group of his clients had crossed into Myanmar from Yunnan without incident at the same time the violence was taking place.

Clashes between ethnic Kokang rebels and government troops broke out in northern Shan state in early February.

But Myanmar tour operators say that business has continued to be positive, and the South-east Asian nation has brought 50 travel stakeholders to Berlin, its biggest delegation to date.

Zanaida Des Aubris, sales manager Europe, Myanmar Bavarian Travels and Tours, said: “We have seen growing demand to Myanmar from (German-speaking markets). At this point, bookings for 2015 are up by 20 per cent over last year.”

Customers have approached her with safety concerns, but there have been no cancellations or postponements so far.

Similarly, Thatoe Thuzaraung, director general of Authentic Myanmar Travel & Tours, reported stronger European interest. “We have come up with new special interest products, such as trekking in Kyaing Tong and southern Shan state (for Europeans).”

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GERMAN tour operators are predicting that the devaluation of the euro can turn the tide for Asia, especially if sellers play their cards right and are level-headed about pricing.

While the impact of the falling euro is not being felt yet, as the big tour operators have hedged the exchange rate and are able to sell their packages at the rate of last summer, pricing will be a big issue for 2016, they said.

Asia could seize the opportunity to grab back German tourist flow to the west – Caribbean, Mexico, Latin America – which has been going on since last year, they added.

“Latin America, for example, is running well but we feel it has reached its pricing limits and, with the US dollar being more expensive, it is getting more difficult to sell,” said Holger Baldus, managing director of Marco Polo Reisen.

“In this price-conscious market, (German travellers) may defer their trip there to two or three years later and shift to value-for-money countries.”

This could cause a flow back to destinations such as Vietnam, Thailand and Sri Lanka, said Baldus, pointing out that land costs for a similar tour in Vietnam are half that of Latin America, while airfares and connections are better to the Far East.

Michael Frese, CEO of DER Touristik, which operates DERTOUR, Meier`s Weltreisen and ADAC-Reisen, said German tour operators, not just his company, have seen a tremendous increase to the West, possibly due to incidents such as the coup in Thailand and the Malaysia Airlines accidents, aside from those destinations themselves being affordable.

“We all have seen big increases – 50 per cent or so – to the Dominican Republic, Cuba and even smaller places like St Lucia and Barbados. As well, the Indian Ocean – Sri Lanka, Seychelles and Mauritius. But this can easily change in the coming winter when the price relation between, say, Thailand and the Caribbean, then becomes much bigger (due to the devaluation).

“If hotels in Asia are not increasing rates too much, if the Asian destination has no or small inflation only, and if there are no big currency fluctuations – say the Thai baht falls against the euro – then there could be a shift (back to Asia),” said Frese.

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