THE proposed merger between American Airlines and US Airways has run into turbulence.

The New York Times reported that the US Justice Department had filed a lawsuit to thwart proceedings, the outcome of which would have been the world’s largest airlines.

The Department was reported by the paper as pointing out that domestic routes were already highly concentrated, and the successful merger of the two heavyweights would put some 80 per cent of the US’ air travel market in the hands of just four airlines.

As such, the merger would hurt consumers and result in less competition, higher airfares and less service to many airports, it said.

However, a joint statement indicated that the two airlines were not ready to throw in the towel.

The carriers said they would mount a “vigorous and strong defence” and that contrary to the Justice Department’s understanding, a combined airline would be able to give consumers more options than either airline would be able to on their own.

News of the proposed merger first came to light early this year (TTG Asia e-Daily, February 15, 2013) as part of American Airlines’ plans to exit bankruptcy.

HAIKOU Meilan International Airport yesterday commenced operations at its new international terminal, following more than two years of construction work.

Located on the east side of the original terminal, the new facility offers a lounge area decorated with coconut trees, in line with the airport’s reputed ecological garden design.

The apron now accommodates 10 international flights, up from three previously.

Jetstar, which runs up to four weekly flights from Haikou to Singapore, was the first foreign airline to use the new terminal at the airport.

Observed the airline’s CEO, Bara Pasupathi: “Since 2009, we have seen double-digit increases year-on-year of passengers from Hainan to Singapore and beyond. Last year alone, we saw a 37 per cent increase in the number of Hainan passengers travelling with us.

“As we enter into our fifth year of flying from Haikou, we anticipate that we will carry more than 200,000 passengers to and from Haikou before the end of the year. “

JOHOR’S new theme park attractions are proving irresistible to the Chinese market, which forms a new and growing source market for the Malaysian destination, according to inbound operators.

Mint Leong, managing director of Sunflower Holidays, said: “As late as 2011, Johor Bahru used to be a city that we largely bypassed (when travelling) to or from Singapore. If the (tour) group stopped in the city, it was merely to get a bite before proceeding to Singapore or Malacca.

“But now with Legoland Malaysia and Puteri Harbour Family Theme Park, we have created mono-Johor tours, and tours combining Johor with Kuala Lumpur, and Malacca and Johor with Singapore.”

She said such tours appealed to the Chinese and her company expected a 10 per cent increase in demand for such products next year.

“We have developed a new edutainment tour package to be rolled out in 2014 combining Legoland with tours to fruit farms and spice gardens in Johor. We think such a tour will appeal to Chinese families with young children,” Leong shared.

Fu Kei Cheong, general manager of Reliance Sightseeing, said his company had also seen increased interest in tour packages to Johor which bundled Legoland Malaysia. He said: “With the closure of Genting Outdoor Theme Park on September 1, Chinese families are looking for other theme park outlets and Legoland Malaysia will benefit from this.”

He said Chinese FITs who had visited Singapore and Kuala Lumpur wanted recommendations for new holiday destinations and were “easily swayed” by Johor’s man-made and natural attractions.

“We easily anticipate a 10 to 15 per cent increase in tours to Johor next year,” Fu said.

Likewise, Cindy Seow, managing director, GIT Tours & Travel, predicts 10 per cent growth from the Chinese market overall and a corresponding increase in demand for Johor tours.

“The theme park attractions, be it Legoland Malaysia or Puteri Harbour Theme Parks, have given tourists a reason to spend a night in Johor,” she said.

THAILAND’S Department of Civil Aviation will extend Krabi Airport’s operating hours on October 1 to keep the facility running 24 hours a day.

The airport presently operates from 06.00 to 21.00, but cost considerations have limited the measure to the upcoming peak tourism season only, which lasts until March 2014, according to The Bangkok Post.

The change in opening hours is meant to deal with the spike in passenger traffic through Krabi during the high season, with most arrivals having been diverted to Krabi to ease the overcongestion at Phuket airport.

Passenger arrivals at Krabi Airport are expected to double during this period for a total of 1.7 million travellers, compared to 800,000 the year before, said the report.

Despite having built to handle 6.5 million passengers annually, traffic volume at Phuket International Airport is expected to hit 10.5 million in 2013.

Airports of Thailand, which operates the facility, last week endorsed the construction of a temporary terminal as a coping measure before Phuket airport’s main expansion wraps up in 2015 (TTG Asia e-Daily, August 6, 2013).

THE Ascott is “on track” to meet its target of 12,000 apartment units in China by 2015, having recently secured contracts to manage three more properties.

The 150-unit Ascott Nanbin Chongqing and the 167-unit Somerset Software Park Xiamen are both due to open in 2015, while the 250-unit Somerset Swan Lake Hefei will welcome guests in 2017.

Kevin Goh, managing director for North Asia, The Ascott, said: “Besides first-tier cities, we are also growing our presence in China’s high-growth cities such as Hefei, Chongqing and Xiamen where strong economic growth and foreign investment have generated a large demand for serviced residences.”

Ascott Nanbin Chongqing is situated on Nanbin Road in the Nan An District, a 15-minute drive from the Yuzhong Central Business District and provides a range of studio to two-bedroom apartments.

Somerset Software Park Xiamen forms part of the Xiamen Software Park, close to Xiamen Airport and Xiamen Exhibition Centre. It features apartments in studio to three-bedroom configurations.

Somerset Swan Lake Hefei is part of the Park Lane Plaza mixed-use development. The property offers easy access to rail stations and the airport and guests can choose from studio to three-bedroom units, and comes with a spa.

All apartments in the properties above come with a fully-equipped kitchen, separate work and sleeping areas and facilities such as a gym, business centre, meeting room, breakfast and residence lounges, swimming pool and children’s play area.

Commented Lee Chee Koon, CEO, The Ascott: “China is our key market and we are growing rapidly through management contracts, investments and strategic alliances. We are on track to achieve our target of 12,000 apartment units in China by 2015.”

This year, the company has entered six cities – Hefei, Nanjing (TTG Asia e-Daily, April 9, 2013) and Wuxi (TTG Asia e-Daily, May 15, 2013) in China, Gurgaon in India (TTG Asia e-Daily, June 27, 2013), and Riyadh (TTG Asia e-Daily, May 21, 2013) and Jeddah (TTG Asia e-Daily, June 4, 2013) in Saudi Arabia.