KHAZANAH Nasional today rolled out a 12-point plan to rescue ailing national carrier Malaysia Airlines (MAS) and return it to profitability by 2017, which will involve terminating 6,000 staff, among other measures.

The state investment fund’s blueprint for a comprehensive overhaul of MAS was unveiled this afternoon at a press conference, after shares were suspended this morning.

At its core, the plan involves the creation of a new company. It also includes details of the strict conditionality attached to restructuring and further Khazanah investment into the new company, amounting up to RM6 billion (US$1.9 billion) over a three-year period.

The plan, entitled Rebuilding A National Icon – The MAS Recovery Plan, details recovery in stages: delisting MAS and announcing leaders of the new company by end-2014; formal transition to the new company by July 1, 2015; new company achieving profitiability by end-2017, three years after delisting; new company relisting between 2018 and 2020.

Azman Mokhtar, managing director of Khazanah, said: “The combination of measures announced today will enable our national airline to be revived. While funds have been made available, they come with strict conditions, so as to ensure that MAS truly resets its business model and cost structures, in order to be truly sustainable.”

This announcement comes one day after MAS published its financial results for the second quarter of this year, predictably taking damage from the MH370 disaster.

MAS’ losses during the quarter totalled RM307 million, close to double the figure from the same period a year ago. Revenue fell five per cent to RM3.6 billion year-on-year.

It attributed this to a nine per cent capacity increase despite seat factors recording a fall of 6.7 percentage points, a 10 per cent rise in fuel expenditure for the quarter, and the weakening of the ringgit against the US dollar.

Group CEO, Ahmad Jauhari Yahya, said in a press statement yesterday: “We operate in a harsh business environment of stiff competition from regional and global carriers, and high operational costs. Coupled with the impact of the two tragedies which have damaged our brand, the need to restructure the company was accelerated. The full financial impact of the double tragedies of MH370 and MH17 is expected to hit MAS in the second half of the year.”

Ahmad Jauhari will continue to lead current company as group CEO during this period, until July 1, 2015, when the new company is envisaged to come into force.

SINGAPOREANS aged between 34 and 54, otherwise known as Generation X, demonstrate a dimension of pragmatism in travelling that combines both functional and comfort factors.

This was revealed in a nation-wide study on Gen X conducted by Brand Alliance Group in the first half of 2014 to discover this demographic’s consumption habits. While Gen X has higher purchasing power due to their stage of life and careers, they are looking for a balance between “discretionary and necessity spending”.

When it comes to holidays, Gen X hopes to visit more developed destinations including Japan, South Korea, Australia, Taiwan and Hong Kong.

To get there, this group has shown a preference for travelling on Singapore Airlines, Cathay Pacific Airways and Qantas. Scoot and Jetstar are their favoured LCCs.

Pricing aside, this group said flight timing and in-flight experiences were cruicial factors in picking which airline to travel on, indicating a mixture of both functional and comfort factors.

These ‘digital immigrants’ are getting the hang of their mobile devices. While print sources are still a major source for news, Gen X consumers are increasingly turning to online and social platforms as their go-to news providers.

Brand Alliance’s advice for brands seeking to reach this target group is to increase reach through other platforms such as print and outdoors in addition to online platforms to engage them at different stages of their daily lives.

JINAN in Shandong Province is the latest destination in Tigerair Singapore’s network expansion, with the LCC to launch first flights between Singapore and the provincial capital on September 16.

The weekly service leaves Singapore on Tuesdays at 12.30, arriving in Jinan at 18.40. Return flights take off from Jinan at 07.30 on Wednesdays, touching down in Singapore at 13.10.

Jinan is Tiger’s 10th destination in Greater China.

Ho Yuen Sang, managing director and COO of Tigerair, commented: “Jinan is another historical Chinese city that we’re pleased to be flying directly to from Singapore. Already an economic and cultural hub, Jinan will have a bigger role to play in Shandong’s growth through further integration with its neighbouring cities, leading to a growing affluent population who might see Singapore as a preferred holiday destination.

“Its prosperous modern city surroundings aside, Jinan also possesses some 2,000 years of abundant historical relics, and visitors from Singapore and the region can take the opportunity to relax in the acclaimed city of springs.”

To celebrate the launch of the only direct flight between Singapore and Jinan, Tigerair is offering a one-way fare of S$155 (US$124), including 15kg in pre-paid luggage allowance, a hot meal onboard, and tax from Singapore.

The deal is valid for travel between September and October 2014, available onwww.tigerair.com.

THE Department of Tourism (DoT) last week soft-launched in New Delhi and Mumbai an online education programme, which will also come with a reward and incentive system for high-performing travel consultants.

The eight-module Philippine Specialist Programme (PSP) will be formally launched in January next year and gradually expanded to cover other areas in India.

Glen Agustin, chief tourism operations officer, DoT, said: “PSP is an education certification tool with lots of imagery and facts, including visa requirements and processes, and is specifically designed for Indian travel consultants to become experts in the Philippines.”

Indian travellers are tech-savvy and search for information on the Internet. “But when they plan their trips, especially the first-timers, they speak to travel consultants,” he noted. “Travel consultants are influential enough to sway or convince them to travel to the Philippines.”

Agustin said the Indian market is on a growth path despite Philippine Airlines’ pull-out from the market last year, and the Indian presidential election that took a toll on outbound travel.

Agencies can access the programme at www.psptraining.in.

TRAVEL providers, including airlines and OTAs, will be able to offer UnionPay as an online payment method directly via the Amadeus Payment Platform after a new agreement signed between the Chinese cross-border payment service provider and the technology solutions provider.

With this agreement, Chinese travellers will now find it easier to travel overseas as they pay with their preferred payment card, allowing travel providers to gain a strong foothold into Chinese outbound and domestic tourism.

Celia Pereiro, head of Amadeus travel payments, said the new agreement offers travel providers a quick and easy link to UnionPay’s large base of cardholders in China.

UnionPay is the biggest card scheme worldwide with over 4.3 billion cards in circulation, supporting every major Chinese consumer bank. Last year, the UnionPay network accounted for 80 per cent of total payments made by outbound Chinese tourists.

This latest development rides on the back of Amadeus’s recent agreement with Alipay, one of China’s leading online payment service providers that accounts for nearly 50 per cent of all online payments, according to Pereiro.

She said: “With (Alipay and UnionPay), we help our customers to target new segments that are already paying with this method of payment. We can now integrate the process of payment with this new method in the selling process, which facilitates the whole process and makes it faster and more efficient.

“Our customers will have a shortcut to the Asian giant (China) by offering millions of potential Chinese travellers the option to pay with their preferred payment methods. They are not limited to Chinese outbound travel – they will also be able to access Chinese consumers who live outside China,” Pereiro added.

China was ranked by UN World Tourism Organization as the world’s top-spending tourism market in 2012.

HOMEGROWN brand Hotel Clover is looking to expand in Asia, with a target to open 10 new properties overseas within the next three years.

This two-year-old boutique hotel chain, which aims to provide an “alternative experience” currently has four properties to its name, with the newest being the 88-key Hotel Clover 33 Jalan Sultan that opened earlier this month.

According to Hotel Clover’s CEO, Teo Kok Hwee, the brand is set to open its fifth hotel in Singapore by 3Q next year and will focus efforts overseas thereafter.

Each Hotel Clover is furnished according to a unique theme. The brand’s first property, Hotel Clover 769 North Bridge Road, is branded as a vintage-themed hotel. Its second, Hotel Clover 5 Hong Kong Street, is a modern business hotel, while its third, Hotel Clover The Arts, is an art-themed hotel.

General manager of the one-month-old Hotel 33 Jalan Sultan, Karis Sun, said: “The theme in this hotel is all about creating a serene urban sanctuary to make our guests feel relaxed in the woods and greenery.”

Occupancy rates have been highly favourable at 90 per cent since opening, with most guests coming from South-east Asian countries, shared Sun.

However, new measures implemented by the Urban Redevelopment Authority in July to prevent the proliferation of hotels, boarding houses and backpackers’ hostels in areas not intended for hotel use has put a damper on Teo’s plans to open more boutique hotels in historic areas, encouraging Hotel Clover to look beyond Singapore.

Two new four-star hotels in Shanghai and Bangkok are set to open in 2Q 2015 and early 2016 respectively, but unlike their local counterparks, both will offer over 300 rooms each.

Teo said: “It is also appropriately timed as now that we have established ourselves in Singapore, we can take the brand to greater heights overseas like in Thailand, Malaysia, China, Indonesia and even Japan.”

PATA’s Malaysia Chapter is organising a hub city forum in Kuala Lumpur to address the challenges and opportunities arising from the implementation of the ASEAN Economic Community (AEC) next year.

This one-day forum on October 15, themed ASEAN Economic Community 2015 – Where is Tourism Heading?, is expected to attract around 250 delegates, comprising government officers and tourism industry players from the private sector.

PATA Malaysia Chapter chairman, Azizan Noordin, said: “During this forum, we will get expert views from invited speakers from the European Union on the challenges and opportunities faced by the European community.  Issues raised at the forum will be brought to the attention of the Ministry of Tourism and Culture Malaysia as well as ASEAN Summit 2015, where Malaysia is the chair.”

Three panel discussions are scheduled:
–       Tourism Development Policies under AEC2015, which will explore the role of policies and regulations, and how it can facilitate the industry’s development in 2015 and beyond
–        ASEAN Implementation Plan, which looks at improving connectivity, crisis management and recovery, multi-country thematic circuits, integrated products and aligned accreditation
–       Embracing AEC New Opportunities, centred around the importance of regional partnership, branding, human capital development and sustainability in the rapidly growing ASEAN market.

Panellists will include representatives from NTOs including the Singapore Tourism Board, Tourism Authority of Thailand and Department of Tourism Philippines, as well as Alexander Kesper, team leader, ASEAN – EU Management Programme, and Klaus Geil, head of sector, external aviation policy, European Commission.

M Ali, honorary secretary of PATA Malaysia Chapter, said: “It is timely to have this forum as AEC 2015 is just round the corner. While it is a game changer that will enhance travel facilitation and connectivity within ASEAN, many issues need to be addressed such as free flow of tourists into the region, free movement of coaches and free movement of tourism personnel.”

HOSTED association planners attending EIBTM in Barcleona this November are being granted greater freedom of choice and flexibility in how they use their time during the show.

Prompted by feedback from association meeting planners and a focus group help in London in May, EIBTM has launched the My Association My Club initiative.

Graeme Barnett, EIBTM senior exhibition director, Reed Travel Exhibitions, said: “Association meeting planners have very specific needs and this new offer includes flexibility at its core.

“From freedom to explore the show floor and discover new suppliers, building an education programme of their choice, and having the time to meet with members of their community. It’s all about creating their own personalised programme and that is what the launch of My Association My Club aims to deliver.”

Benefits from the new programme include:
–       Flexible schedule with time to explore and discover new suppliers and innovations
–       A personalised diary with pre-scheduled appointments of the association hosted buyer’s choice
–       Opportunity to connect with contacts and meet other international association peers at networking events
–       Selection of education sessions that association planners can choose from to meet their own business needs
–       Access to a dedicated business-style Club Lounge on the show floor with free lunch, refreshments, and Wi-Fi. It also functions as a chance to meet contacts and peers
–       Support from a dedicated helper for registration
–       Free flights, trail travel, and transfers
–       Four- to five-star association accommodation

All hosted buyer applications are individually reviewed and accepted based on strict qualifying criteria.

For more information about My Association My Club, visit www.eibtm.com/myclub

A SUBSIDIARY of Singapore-listed Straco Corporation announced today it has signed an agreement to purchase the Singapore Flyer and will reveal plans for the iconic attraction at a later date.

Wu Hsioh Kwang, chairman of Straco Corporation, commented in a press release: “The Singapore Flyer is a defining Singapore attraction, and represents an exciting opportunity to expand our presence in the region and contribute to the Singapore tourism industry. As a Singaporean company, we are especially proud to add this unique icon to our portfolio of high-quality assets.”

“Future plans for the Singapore Flyer will be shared when Straco Leisure officially takes over,” he added.

Straco Leisure is a joint venture company between Straco Corp subsidiary Bay Attractions and WTS Leisure, with a focus on attractions and tourism-related projects in China.

The Singapore Flyer is the company’s first attraction in Singapore.

Placed under receivership Ferrier Hodgson in 2013 or five years since it first opened, the Singapore Flyer was reported by local media to have been struggling to attract visitors.