INDONESIA’s Batavia Air has stopped operations as of midnight on January 31 following a successful bankruptcy petition by aircraft leasing company International Lease Finance Corporation (ILFC) in the Central Jakarta Commercial Court.

Batavia Air has failed to make a US$4.68 million lease payment to ILFC for two Airbus A330s on December 13, 2012, Antara News Agency reported. The airline’s operation and ticket sales continued normally until the court’s decision on January 30.

Ministry of Transportation’s director of air transportation, Herry Bakti Gumay, said: “The Ministry has requested that Batavia Air give an alternative to passengers who had booked and bought tickets to choose another carrier, and other airline companies to provide services to the default airline’s passengers with the minimum price (available).”

In Singapore, passengers holding Batavia Air tickets can obtain refunds from the airline’s office at the basement of Changi Airport Terminal 2.

In 2012, Batavia Air was the target of a US$80 million acquisition attempt by AirAsia to beef up its presence in Indonesia, but the deal was called off in October last year (TTG Asia e-Daily, October 15, 2012).

Additional reporting by Mimi Hudoyo

FOLLOWING a strategic review of its operations (TTG Asia e-Daily, January 28, 2013), AirAsia has decided not to launch flights from Singapore to India and China.

According to an earlier press statement, AirAsia claims that routes less than three hours allow better revenue returns due to more sectors flown.

The carrier’s CEO Tony Fernandes said: “Routes originating out of Singapore to larger-population countries like China and India tend to be more than five hours, hence AirAsia’s decision not to proceed with any venture there in the foreseeable future.”

Most major Indian cities such as New Delhi, Mumbai, Bangalore and Chennai are approximately a five-hour flight from Singapore or the rest of South-east Asia.

Anil Punjabi, chairman-east, Travel Agents Federation of India, said: “The current connectivity AirAsia offers to Bangkok and Kuala Lumpur from Kolkata has been very useful for our inbound and outbound tourist traffic. It is possible that AirAsia may look at a presence in India in the near future as all flights within India to neighbouring countries like Nepal, Bhutan, Bangladesh, Sri Lanka and the Maldives are all of less than three hours’ flight time.”

* Our article initially stated that AirAsia would be ceasing its flights to China and India, which was factually incorrect and has been amended.

PHM Hospitality has been appointed by Ulimo Baseliob to manage The 101 Palembang, which will become the Jakarta-based company’s first property in the South Sumatran city of Palembang when it opens in mid-2014.

The 1O1 Palembang will target business and leisure travellers from the mid-scale premium market. Occupying 1,800m² on Jalan Rajawali, the hotel will feature 141 rooms and facilities such as a swimming pool, meeting rooms, a coffee shop and a gym.

Meanwhile, PHM Hospitality is currently developing properties ranging from budget to four-star deluxe in major cities in Indonesia such as Jakarta, Bogor, Bandung, Yogyakarta and Bali.

The 1O1 Jakarta Dharmawangsa will open its doors in mid-2013, while The 1O1 Bogor Suryakencana and The 1O1 Yogyakarta Mangkubumi will roll out by the end of this year.

Besides The 1O1 Palembang, other properties expected to debut next year include The 1O1 Bandung Dago, The 1O1 Bali Petittenget, The BnB Bali Sunset Road as well as The Haven Bali Brawa.

Earlier this month, PHM Hospitality renamed The Haven Seminyak to The Haven Bali Seminyak, The 1O1 Legian to The 1O1 Bali Legian, and The BnB Kelapa Gading Jakarta to The BnB Jakarta Kelapa Gading.

EARLIER this week, China’s first luxury cruise ship Henna set sail on her maiden voyage from Sanya Phoenix Island International Port, becoming the first Chinese company to enter the cruise market.

Operated by Cruise Yacht Management, which is owned by HNA Tourism, Henna features 739 passenger cabins, including nine suites with balconies, 432 ocean-view staterooms and 298 interior staterooms. It has a maximum passenger capacity of 1,965.

The cruise ship is outfitted with a range of facilities, ranging from restaurants, duty-free shops and casinos to cinemas, meeting rooms, and a swimming pool.

Homeporting in Sanya and Tianjin from January to April, Henna will sail between Sanya and Vietnam’s Halong Bay and Danang from January to April, and between Tianjin and South Korea’s Incheon and Jeju Island from May to September.

According to the China Daily, the 223m vessel was first built in 1986 for Carnival Cruise Lines, before being bought over by HNA Tourism from Pacific Sun P&O Cruises Australia last year. It underwent a refurbishment to become Henna.

VIETNAM Airlines will commence a weekly service from Nha Trang to Moscow using Boeing 777-200ER aircraft from April 5, marking the country’s third air link to the Russian capital city.

During the winter season, flight frequency on the Nha Trang-Moscow segment will be ramped up to twice-weekly from October 17.

A Vietnam Airlines representative in Russia was quoted by a Voice of Vietnam report as saying that the new route aimed to maintain large numbers of Russian visitors to Vietnam amid a global economic slowdown.

The Vietnamese flag carrier is currently offering a 10 per cent discount for return tickets on this new route until June 30.

LONGHAUL travel consultants at the recently concluded ASEAN Tourism Forum (ATF) in Vientiane have seen growing interest in Sabah and Sarawak, with competitive airfares and hotel rates pushing up demand.

Norway-based Asia Spesialisten’s director of sales and marketing, Oddvar Sivertsen, said: “Low-cost carriers have opened air access to the more remote parts of Sabah and Sarawak, and this too is causing demand for tailor-made, off-the-beaten-track tours.”

Cheaper airfares and hotel rates had driven demand for FIT travel, especially among the 30-50 year-old group, he observed. Tours to these states typically combine a beach experience, a soft adventure component and cultural tours that incorporate educational elements and novel experiences.

Air France’s new thrice-weekly direct flights between Charles de Gaulle Airport and Kuala Lumpur International Airport beginning April 22 has also interested at least one DMC from France.

Abako general manager, Jose Henrique Goncalves, said: “We’re in the middle of preparing a concept paper on Borneo as an incentive destination and once ready, we will promote it to our clients in the automobile, construction, health and finance sectors.

“With direct flights, we don’t have to stop in Singapore for a night, which is expensive. Malaysia’s hotel rates are competitive and one can negotiate with them. The French have a good image of Malaysia as a destination that is modern yet retains an old-world charm.”

Germany-based Kornelius Reisen’s owner, Johannes Harle, said Sabah and Sarawak also appealed to niche travellers keen on nature, culture and adventure.