NATIONAL carrier Malaysia Airlines (MAS) has reported a net loss of RM443 million (US$137 million) for the three months ending March 31, almost double the loss of RM279 million in the same quarter last year.

Core airline revenue increased by eight per cent year-on-year on the back of a 19 per cent increase in capacity, but overall group performance was dragged down by weak cargo and other revenues resulting in a marginal two per cent growth.

Despite 18 per cent growth in traffic, severe yield pressure due to excess industry capacity and a disadvantageous cost structure caused earnings before interest, taxation, depreciation and amortisation to fall to negative RM101 million compared to RM30 million this time last year. Airline yield dropped nine per cent year-on-year.

MAS Group CEO, Ahmad Jauhari Yahya, said: “Traditionally, the first half is always weaker following the heavy travel period of the previous year-end holidays. The net loss this first quarter is not unexpected.

“However, the results were made worse with the impact on air travel in general following the disappearance of MH370. The whole market has reacted by slowing down demand.

“While the search for MH370 continues today more than two months since it disappeared, our group needs to accelerate efforts to improve its revenue stream and better manage our high costs which have increased in line with greater capacity.

“This need has become even more urgent for MAS’ future survival and sustainability in a market that is not showing any signs of letting up on competition.”

Operations were slowed for several weeks since early March when MH370 disappeared. Marketing activities were also halted out of respect for the families of those on board the Beijing-bound Boeing 777 aircraft.

Meanwhile, there have been suggestions for the airline to be privatised or allowed to declare bankruptcy so it could begin anew, or for its profitable units like engineering and shorthaul Firefly to be spun off in a public share sale, according to Singapore’s broadsheet The Business Times.

DORSETT Tsuen Wan, Hong Kong announces the appointment of Carlos Wong as the new director of sales & marketing.

In his new role, he will take charge of all planning and preparation of sales and marketing campaigns, sales strategy and annual budget.

Wong brings with him more than 30 years’ experience in the hospitality industry. He was previously with Hong Kong SkyCity Marriott Hotel.

STARWOOD Hotels and Resorts is looking for a buyer for the five-star Sheraton on the Park Sydney, which would continue to be managed by the group.

Sheraton on the Park Sydney is situated opposite Hyde Park in the central business district, close to Sydney’s luxury retail precinct. The hotel comes with 557 guest rooms and suites, a restaurant, a tea lounge, a bar, extensive conference and function space, leased retail space and a range of recreational facilities.

JLL’s Hotels & Hospitality Group has been appointed to market the freehold hotel. Expressions of interest are welcome until June 20.

Craig Collins, CEO of JLL’s Hotels & Hospitality Group Australasia, said: “Sydney’s five-star sector is currently experiencing the best trading conditions in many years with RevPAR growth of over 14 per cent for the first three months of 2014, compared to the same period last year.”

“We are anticipating very strong investor interest in this asset, particularly because of its trophy status, freehold title and exceptional trading profile. It’s important to note that a number of other five-star hotels have sold in Sydney over the past two years and are now in the hands of traditionally long-term holders. This may be the last chance for a considerable time for investors to acquire a prime Sydney hotel,” commented Collins.

PAN Pacific Hotels Group has bagged an agreement for its fourth hotel in Malaysia – the Parkroyal Langkawi Resort.

The hotel operator inked an agreement with Gagasan Langkawi for the 262-key property, which will open in 2017 on the prime beachfront location at Pantai Tengah Beach, adjacent to a retail and dining complex.

When finished, the hotel will offer 253 rooms and nine villas, an all-day dining restaurant, a specialty restaurant, beach bar, spa, gym, family lounge, ballroom, meeting rooms and outdoor swimming pools.

The agreement for Parkroyal Langkawi Resort comes shortly after Pan Pacific Hotels Group’s announcement of expansion plans across Asia-Pacific, including opening Parkroyal and Pan Pacific brand hotels in Myanmar (TTG Asia e-Daily, April 2, 2014), Australia, China (TTG Asia e-Daily, February 11, 2014) and Indonesia.

SULAWESI will receive its first Starwood Hotels and Resorts hotel with the scheduled opening of Four Points by Sheraton Makassar by May 2015. It also marks the debut of Four Points by Sheraton in Indonesia.

Four Points by Sheraton Makassar is strategically located in the heart of Makassar’s developing business district at Jalan Landak Baru.

Offering 261 guestrooms, the hotel will also come with a swimming pool, full-service dining, a fitness centre and free Wi-Fi.

The hotel is being developed by IMB Group and will feature Makassar’s largest convention centre when complete. Meeting facilities include two ballrooms and 16 meeting rooms, totalling a meeting space area of approximately 6,500m².

Chuck Abbott, regional vice president, South-east Asia, Starwood Hotels & Resorts, said: “As South-east Asia’s largest economy and the world’s fourth most populous country, Indonesia is one of the fastest growth markets for Starwood, and we look forward to opening our first hotel in the capital of South Sulawesi province.”

MALAYSIA Airlines MH370’s disappearance has helped to drive higher safety standards on the air and ground, with AirAsia Group to launch a passport screening system and Inmarsat offering an airline tracking service for free.

The LCC will become the first airline to fully integrate Interpol’s I-Checkit system into its check-in process later this month, to screen all passenger passports against Interpol’s Stolen and Lost Travel Documents (SLTD) database.

I-Checkit screens the passenger’s travel document number, form of document and country code against the SLTD database without transmitting personal information. In the event of a match, AirAsia will refer the passenger in question to local authorities.

Currently in the pilot testing stage, the I-Checkit system will be deployed on the airline group’s entire network of 100 airports across Asia and 600 international flights per day to more than 20 countries worldwide.

AirAsia Group CEO, Tony Fernandes, said: “AirAsia is extremely pleased to be the first airline globally to collaborate with Interpol to implement I-Checkit. The partnership we have created will result in improved passenger security and will support our desire to offer low fares, but with the added assurance that this system and partnership provides.”

Said Interpol secretary general, Ronald K Noble: “AirAsia has established the new standard for airline security by screening the passports of all international passengers against Interpol’s database. After today, airlines will no longer have to depend solely on countries screening passports to keep passengers safe from terrorists and other criminals who use stolen passports to board flights. Like AirAsia, they will be able to do it themselves as well.”

Earlier this week, global mobile satellite communications services provider Inmarsat also announced that it has proposed to ICAO a free global airline tracking service, for immediate implementation.

It will cover all aircraft equipped with its satellite connection or 11,000 commerical aircraft, close to 100 per cent of the world’s longhaul aircraft.

Furthermore the service extends to a ‘black box in the cloud’ service that will stream historic and real-time flight data recorder and cockpit voice recorder information to authorised recipients under specific trigger events.

Rupert Pearce, CEO of Inmarsat, said: “Because of the universal nature of existing Inmarsat aviation services, our proposals can be implemented right away on all ocean-going commercial aircraft using equipment that is already installed. Furthermore, our leading aviation safety partners are fully supportive of expanded use of the ADS-C Service through the Inmarsat network. This offer responsibly, quickly and at little or no cost to the industry, addresses in part the problem brought to light by the recent tragic events around MH370.”

IATA last month convened a taskforce to relook the aviation industry’s approach to global aircraft tracking and passenger data, with director general and CEO Tony Tyler pledging: “We cannot let another aircraft simply vanish.” (TTG Asia e-Daily, April 1, 2014).

ABU DHABI Tourism and Culture Authority is holding a five-city roadshow in Greater China this week to tap the buoyant Chinese market.

Abu Dhabi saw 32,259 visitors from China and Hong Kong in 1Q2014 or a 208 per cent increase year-on-year. This market provided 50,253 roomnights, a 139 per cent rise over 1Q2013.

Samuel Wong, managing director, Hong Kong-based Jetway Express, said: “The increase in flight connectivity from several cities in China has resulted in larger number of tourists travelling to Abu Dhabi… (Visitor numbers) will grow manifold this year.”

The NTO is joined by hotels, tour operators, destination attractions and Etihad Airways, as it tours Beijing, Shanghai, Chengdu, Guangzhou and Hong Kong.

Featuring product presentations and networking with trade stakeholders in China, the roadshow will end tomorrow.

INDONESIA will host the first international forum on Muslim tourism among the members of the Organisation of Islamic Cooperation (OIC) on June 1-2 in Jakarta.

The 1st OIC International Forum on Islamic Tourism will discuss the prospects and challenges facing this industry, touching on subjects including the growing contribution of Islamic tourism in socio-economic development; the strategy behind the successful integration of Islamic values in tourism activities; as well as product and service delivery, and branding and positioning strategies in marketing Islamic tourism.

Sapta Nirwandar, vice minister, Ministry of Tourism and Creative Economy, said: “The world’s Muslim population accounted for 6.9 billion or 23.4 per cent of the total population in 2012, with total spending on halal food and beverage of US$1.1 billion (17 per cent of total annual spend). Muslim travellers spent US$137 billion on travel in 2012.”

Sapta said while other countries without Muslim majorities like South Korea and China were investing in Muslim-friendly products, it was about time members of the OIC worked on developing the market.

Speakers at the conference will include Fatou Mas Jobe-Njie, Gambia’s minister of tourism and culture; Mohamed Nazri bin Abdul Aziz, minister of tourism and culture for Malaysia; Manabu Sakai, vice minister of land, infrastructure and transport Japan, and representatives of different businesses.

INTERNATIONAL SOS, a medical and travel security risk services company, is advising travellers to South-east Asia to get vaccinated against measles as cases in the region increase.

According to the World Health Organization, over 3,700 cases, including at least 65 deaths, have been reported across the Philippines since the beginning of the year; and 3,000 confirmed cases and more than 100 deaths recorded in Vietnam during the same period.

Singapore’s Ministry of Health issued a health advisory on measles last month stating there has been a significant rise in measles as well.

In light of the outbreak of the virus in the region, International SOS is advising travellers to:
– Get vaccinated against measles regardless of destination, unless one has had it before or an adequate series of measles vaccinations
– Check vaccination records. Measles vaccines require two doses, usually given once to a young child and again before entering school
– Speak to a doctor if unsure about one’s immunity

David Teo, regional medical director at International SOS, said: “Measles is a highly contagious virus that can cause serious complications and fatalities in children. Measles is effectively prevented by vaccination. The virus spreads via the airborne route, as well as through direct contact. In addition, people with measles are infectious for four days before and after they have a rash.

“For these reasons, very large outbreaks occur in communities with low vaccination rates, as we are witnessing in parts of South-east Asia. Every traveller should ensure they are immune to measles, regardless of their destination. Organisations should have a plan for how to respond if measles is diagnosed in an employee,” commented Teo.