With the help of some experts, Sim Kok Chwee takes stock of the most headline-worthy happenings across Asia’s aviation scene in 2012

The good, the bad & the ugly

LCCs in full flight
Budget carriers have flourished even as full-service airlines struggled to stay profitable.

Executive chairman of the Centre for Aviation (CAPA), Peter Harbison, said: “LCCs in Asia are really making a difference to the entire scene, generating new travel opportunities, innovations and spreading economic activity into regional centres. This year, they even penetrated the arcane Japanese aviation system.” He believes that there are still “massive opportunities” for expansion in North-east Asia.

Some LCCs have also notably been able to undermine rigid international regulations through their cross-border joint ventures, while the hastened evolution of LCCs in the region has yielded longhaul budget airlines such as AirAsia X, Jetstar International and Scoot.

Incheon, Narita cut operating costs
Against a backdrop of economic uncertainty, South Korea’s Incheon International Airport and Japan’s Narita International Airport are cutting airline operating costs and improving their competitiveness.

Reductions at Incheon will result in savings of over US$15 million, while Narita will see operating costs slashed by more than US$35 million per year.

Air Koryo enters the digital age
North Korea’s national airline, Air Koryo, came closer to catching up with the region when it began offering an online booking service in August. Despite teething problems – slow response and dropped bookings – it is nonetheless a bold step forward.

Preparing the next generation for take-off
This year, a total of 99 students pursuing aviation courses at Singapore’s Temasek Polytechnic took up internships at various airlines operating at Singapore Changi Airport and aviation-related companies such as Changi Airport Group, Civil Aviation Authority of Singapore, Dnata and SATS. The internships placed them in positions ranging from cabin attendants to ground/traffic and operational staff, nurturing the upcoming generation of aviation professionals.

The good, the bad & the ugly

Airport capacity trailing demand
The lack of airport capacity poses an issue in certain Asia-Pacific countries, said IATA’s regional vice president for Asia-Pacific, Maunu von Lueders.

“(At) the top of the list would be Bangkok, which urgently needs to expand Suvarnabhumi; Manila, which needs a new airport to replace Ninoy Aquino International Airport that is not 100km away; and Mumbai, which desperately needs to move forward with its Navi Mumbai project,” he said.

The free-rider effect
Protectionism continues to hinder attempts to liberalise Asian skies. Some governments are prepared to share the benefits of access to other markets while restricting access to their own, lamented CAPA’s Harbison, who said such old-fashioned protectionism had “no place in the Asia of the future.”

Cathay pacification
Chinese passengers appear to have acquired a penchant for staging sit-ins each time a flight is delayed, with cash compensations the ulterior motive, even when delays are weather-related.

On a few isolated occasions, passengers burst forth from the aircraft to take their protests to the airport’s ramp and taxiway. Airlines are left with little choice but to keep beefing up the compensations paid out, which does nothing but encourage the trend.

The good, the bad & the ugly

Kingfisher Airlines’ fortunes nosedive
Kingfisher Airlines takes the cake for failing to pay its staff for consecutive months, as far back as April 2012, even as the airline continues to sponsor a Formula 1 Grand Prix team and its owner, Vijay Mallya, swans to various races via his corporate jet or luxury yacht.

Furthermore, Kingfisher’s mountain of debt to airport operators and aircraft leasing companies led to the trimming of its fleet and eventual abandonment of international services. By October 2012, the Indian government had suspended Kingfisher’s aircraft operating certificate citing safety concerns. As of December 1, the airline remains grounded. An estimated minimum of US$500 million is required to recapitalise the company.

The ETS U-turn
When the European Union (EU) forced airlines from around the world to subscribe to its Emissions Trading Scheme (ETS), it was met with forceful resistance from China, Russia and the US. IATA threw its weight behind the International Civil Aviation Organization (ICAO), calling on the EU to suspend ETS while a solution was prepared.

“What could be more ugly than the EU’s unilateral attempt to legislate environmental rules for the whole world with its ETS? Even if the basic idea is right, the airline industry is already actively targeting reduced fuel costs and improved efficiency,” said CAPA’s Harbison.

The EU has since relented and suspended ETS for a year. The ball is now in ICAO’s court and it should waste no time in making a concerted push for a permanent solution. When the one-year grace period is up, it should hopefully have reached this objective – or at least, achieved measurable progress to convince the EU that the ETS should be burned and buried.

Ridiculous rates at India’s airports
IATA’s von Leuders’ vote for ugly happening of the year goes to New Delhi and Mumbai’s airports. New Delhi has increased charges by a whopping 346 per cent, while Mumbai has proposed a mind-boggling increase of 881 per cent!

The Airports Economic Regulatory Authority has tentatively decided to “moderate” Mumbai’s proposal to 151 per cent, but more can be done to reduce charges further.

My good, bad & ugly

Industry bigwigs tell S Puvaneswary what caught their eye this year

Andrew Herdman
Director general
Association of Asia Pacific Airlines (AAPA)

The good The global aviation industry has seen growth over 2011, despite concerns of political uncertainty and the risk of the break-up of the eurozone. Asian airlines have witnessed a 7.5 per cent increase in passenger demand. European airlines have also posted passenger growth despite pressure in terms of cost. So profit margins are squeezed.

The bad Fuel prices are stubbornly high due to political risks and concerns in the Middle East.

The ugly There’s nothing ugly in the aviation scene this year. It would be ugly had passenger growth followed the cargo business, which saw a four per cent dip in volume over last year. However, this is not the case as passenger traffic, accounting for 80 per cent of airline business, has seen growth.

Patrick Yeung
CEO
Dragonair

The good It has been an unprecedented year for Dragonair. Ten new destinations were launched this year, within Asia and China. We also had four new Airbus A320s delivered.

The bad Oil prices are still up, which result in higher operating costs.

The ugly There’s nothing ugly I can think of. This has been a very good year for us, with the expansion of our network.

Jurriaan Stelder
Regional general manager
South China Sea, Air France-KLM

The good Air France has announced it will commence thrice-weekly services to Kuala Lumpur on April 22, 2013. I am very excited about these flights, as it is an opportunity for us to contribute good results to the company. For the Malaysian travelling public, this is also great news because now they can buy a seat to London and also get two other cities in Europe (Paris and Amsterdam) at no additional charge, provided they are on flexible fares.

The bad Air France-KLM’s overall financial results this year were not good, and have not been for quite a while now. Air France-KLM’s staff will have to make sacrifices in the coming years to restore the health of the company.

The ugly The economic crisis in Europe has been putting a strain on the results of all European airlines, including ours.

This article was first published in TTG Asia, December 14, 2012, on page 12. To read more, please view our digital edition or click here to subscribe.

NTOs, tour operators and attractions across Asia-Pacific reveal what they will be calling attention to in 2013

From left: Johor’s Legoland Malaysia; elephants in Khao Yai; Marine Life Park’s SEA Aquarium; Coron, Palawan

Malaysia: Johor
Raaj Navaratnaa, general manager, New Asia Holiday Tours & Travel, Malaysia

We are promoting Johor as a theme park destination for families as there are two new theme parks – Legoland Malaysia and Puteri Harbour Family Theme Park. They will attract families travelling with young children.

We have come up with Twin Theme Park tour packages combining accommodation, transfers and entrance fees to the parks, and will promote them to the regional market.

We are also selling optional tours to Endau Rompin National Park and Sibu Island, both of which are near Johor.

Thailand: Khao Yai
Santi Sawangcharoen, chief – ASEAN, South Asia and South Pacific marketing integration section, Tourism Authority of Thailand (TAT)

TAT will promote Khao Yai more aggressively to the international market next year. The area, in the north-east of Thailand, has yet to receive much international attention despite being a popular weekend getaway among Thais and home to one of Thailand’s oldest and best-known national parks.

We will bank on Khao Yai’s wide range of attractions – vineyards and wineries, golf courses, dairy farms, soft adventure options, resorts and shopping outlets – to appeal to diverse travel segments.

Singapore: Marine Life Park
Clement Ng, spokesperson, Resorts World Sentosa

Newly opened on November 22, Resorts World Sentosa’s (RWS) Marine Life Park (the last of the integrated resort’s facilities) has been billed as the largest oceanarium in the world. It houses over 100,000 marine animals from across 800 species in more than 60 million litres of water. The park comprises two key experiences, the Adventure Cove Waterpark and the SEA Aquarium.

RWS also plans to unveil a brand new ride within Universal Studios Singapore next year, as well as a new theatrical performance, to be staged at the Festive Grand Theatre, which is currently unnamed.

Indonesia: Muslim travel
Rizki Handayani, director, MICE and special interest marketing, Ministry of Tourism & Creative Economy

While Indonesia has the largest Muslim population in the world, not all products are halal or in accordance with Muslim laws.

Next year, we will launch syariah (Muslim) travel products together with Indonesia’s tourism stakeholders. Tourism players have called for a way to identify, package and market Muslim travel to earn the full confidence of Muslim travellers coming to Indonesia. A standard for such products and services is in the making.

The Philippines: Palawan
Hazel Tan, marketing executive, Pacific Leisure Marketing for Department of Tourism Philippines 

We’re pushing for Palawan, where the Puerto Princesa Underground River is located. It is something new, following its recent achievement as one of the New7Wonders of Nature. It is still a living cave – inhabited by birds and bats, and there is no artificial light – so it’s very unique. There are already airlines flying into Puerto Princesa, and we’re hoping there will be more direct flight connections.

We’ll also be focusing more on niches such as diving and cuisine.

South Korea: Jeju Island
Caitrin Moh, MICE manager, Korea Tourism Organization Singapore

One destination we will be promoting next year is Jeju Island. It features 27 golf courses and three UNESCO World Natural Heritage sites, including Mount Halla, Seongsan Ilchulbong Tuff Cone and Geomunoreum Lava Tube System, as well as haenyeo, or sea women, who earn a living by diving and harvesting products from the sea.

The island is also perfect for hosting conferences since it offers visa-free entry to 180 nationalities, and has an abundance of direct air connections from Japan, China, Taiwan and the Philippines.

China: Eastern Yunnan
Julien Monnerie, product manager, Exotissimo China

We plan to highlight remote and lesser-known destinations in Eastern Yunnan through our new 8D/7N Yunnan, Photographer’s Paradise tour. The package spans places like Luoping, Puzhehei and Yuanyang, spotlighting the area’s diverse range of colourful landscapes, from the patchwork of oxidised lands to fields of canola flowers and karst peaks dotted among rice terraces.

Japan: Ibusuki, Kagoshima
Hiroyasu Konishi, manager – overseas division, Kyushu Tourism Promotion Organization

We would like to promote Ibusuki in Kagoshima prefecture, which is famous for sunaburo, sand baths that are said to provide a range of health and beauty benefits. Bathers put on robes and are buried along the shores of Ibusuki’s beaches, where geothermal forces warm the sand to 40°C.

Sunaburo can be found on public beaches for about 1,000 yen (US$12) but they are free for guests at hotels such as the Ibusuki Hakusuikan ryokan.

Australia: Ayers Rock Resort
Ray Stone, executive general manager for sales & marketing, Voyages Indigenous Tourism Australia

Having noticed a steady growth in visitors from Asia to Ayers Rock Resort in Northern Territory, operator Voyages Indigenous Tourism Australia is making an unprecedented push to grow its client base from the region.

A recommended experience is Tali Wiru, which sees guests dining under the stars with Ayers Rock as a backdrop. Guests are treated to champagne and canapés around a firepit, followed by a four-course dinner, matched with premium wine. After dinner, a local storyteller will relate Aboriginal tales that showcase the language, spirituality, land and culture of Australia’s indigenous people.

Additional reporting from Mimi Hudoyo, S Puvaneswary, Linda Haden, Hannah Koh, Gracia Chiang and Brian Higgs

The TTG Asia team asked buyers near and far which destinations are flying off the shelves and what they have their bets on for next year

For 2012, our bestselling destination was Europe, in particular Italy and Switzerland, due to the attractive airfares offered by Emirates and Etihad Airways via the Middle East, which also facilitated popular, two-night stopovers in Dubai and Abu Dhabi.

Nepal should sell well in 2013. It is a beautiful place to visit, with its mountain ranges, natural attractions and local culture. AirAsia X and Malaysia Airlines launched direct flights between Kuala Lumpur and Kathmandu earlier this year.
Lina Tsen, manager, Ibanika Tours & Travel, Malaysia

Thailand was our top seller for 2012 and it will still probably be for 2013. We just started selling it this year, and we already see that the culture, cuisine and climate are extremely attractive to South Korean travellers. Thailand is also relatively cheap, with good deals found in places such as Phuket, Koh Samui and Bangkok. The volume is especially high for leisure travellers.
Edmond de Fontenay, CEO, Evasion, South Korea

Vietnam is up 20 per cent so far this year on 2011 bookings, making it our fastest-selling destination. Singaporeans flock to Vietnam for its culture and food, and let’s not forget, the shopping.

It’s hard to tell which destination will do well in 2013 given the uncertainty in the global economy. My bet is that countries in Indochina, including Vietnam and Myanmar, will continue to grow, as more Singaporeans yearn for adventure.
Jimmy Sim, product development director, Dorison Travel, Singapore

We sold Finland really well, and sales for the Northern Lights itineraries have tripled this year. Having done the traditional West Europe circuit, Singaporeans are now looking for alternative destinations.

Based on what we’ve seen, there is a strong chance Spain will be our bestseller for 2013. Spain is number one for one reason alone – its cuisine. Andalucia is a popular region for self-drive holidays for Singaporeans because of its scenery.
Rufus Tan, head of media and marketing, Quotient TravelPlanner, Singapore

This year, destinations like Taiwan, Malaysia, Singapore and Japan have done quite well. These places are very accessible because of the availability of direct flights, a good choice of hotels and decent service standards.

For 2013, I have seen good growth for Thailand, where rates are low. I think South Korea will emerge stronger, while Japan is definitely recovering and the country is holding more promotions than before.
Kevin Cheong, supervisor – meetings & incentives, BCD Travel, Hong Kong

We send almost 35,000-40,000 travellers annually to Singapore/Malaysia/Thailand, and they will continue to be the biggest destinations for us. These are nearby, weekend destinations for Indian travellers. They are what I call over-the-counter destinations. Indians like the shopping and theme parks there, plus pricing is cheap. Cruise holidays are also getting very popular, resulting in travellers coming back to Singapore again and again. There are also no language or food problems.
Raghuvinder Singh, director, D Paul’s Travel & Tours, India

For this year, it has to be a tie between India and Thailand. It was the Year of India in Canada in 2011, so there was a huge campaign and that motivated people to visit India. We also get a lot of FITs and small groups going to Thailand, which is easy to sell because it’s the gateway to South-east Asia and has beautiful beaches.

There is growing interest in Myanmar because of news reports on how it has opened its doors. I am also thinking of increasing the number of yoga trips I do for Bhutan, which has been growing in popularity due to word of mouth. Travellers can also access it via India or Thailand.
Bernard Bacle, director, Club Aventure Voyages, Canada 

The extensive international media attention alongside new and increased air routes mean Myanmar is the latest hot seller. Myanmar often exceeds clients’ expectations, so when they return home from their vacations, they provide extremely excellent feedback of their trips and the word spreads. Hopefully the country will grow with improved infrastructure and hotel development. Myanmar will continue to be popular in 2013, followed by growing interest in Indonesia and Japan, which is already back on the travel radar.
Maeve Nolan, product & operations manager, Backyard Travel, Thailand

Myanmar. Many people have shown interest to travel to this country since sanctions were lifted in 2010. We have seen a 40 per cent year-on-year increase in demand this year. Interest will remain high next year and we expect group tours to Myanmar to do better as compared to the FIT segment, as the country has become more expensive over the past year.
Neill Prothero, product manager – Far East, Cox & Kings, UK

Hong Kong is a hot seller, as Filipinos like going there for shopping in places such as Mong Kok, as well as to visit theme parks. Singapore has taken away some traffic with its new attractions, but still cannot overtake Hong Kong. Another upcoming destination is South Korea because of religious reasons. The Philippines is a Catholic country, and there is interest in South Korea’s Our Lady of Naju. The destination is also good for shopping.
William Po, director of marketing, Wonder Resort Travel Centre, Philippines

This article was first published in TTG Asia, December 14, 2012, on page 6. To read more, please view our digital edition or click here to subscribe.

Additional reporting from Xinyi Liang-Pholsena, Hannah Koh, Linda Haden and Brian Higgs

“Batten down the hatches to be ready for some stormy weather (in 2013), but don’t forget to pack the swimmers as there will be some sunshine as well!”

“The year ahead will be a little cloudy and potentially stormy, but with good chances of sunny spells sprinkled throughout the year.”

“I believe I will still see enough sunny skies next year with the ongoing growth in the hospitality business.”

Michael Issenberg, chairman & COO, Accor Asia-Pacific, Singapore

What’s the biggest deal you made this year, or what to you was big deal?The Mirvac transaction, where we added 43 hotels in Australia and New Zealand.

Describe 2013 in climatic conditions.
Unpredictable.

How are you preparing yourself and your team for it?
Batten down the hatches to be ready for some stormy weather, but don’t forget to pack the swimmers as there will be some sunshine as well!

Chanin Donavanik, CEO, Dusit International, Thailand

What’s the biggest deal you made this year, or what to you was big deal?
The opening of Dusit Thani Maldives marked the continuing expansion of the Dusit International  brand. We expect Dusit Thani Maldives to also make a significant contribution to the local economy particularly in hospitality industry education through Dusit Thani College. We also signed a hotel management agreement with property owners Tanota Partners for an upcoming Dusit Thani Guam, which is located in the island’s prime commercial and tourist precinct.

In 2013, we will be ready for five hotel openings in Guam, New Delhi, Abu Dhabi, Pasadena (US) and Hainan.

Describe 2013 in climatic conditions.
I believe I will still see enough sunny skies next year with the ongoing growth in the hospitality business. Despite the effect of the current cloudy economic problems in European countries, we see that while some markets show little or no growth, others such as China clearly have enormous potential for both outbound and inbound tourism.

In Asia, tourism in most countries continues to increase, with RevPAR for example, growing at a fast pace. Medical tourism also continues to grow, particularly in Thailand, Singapore, Malaysia and India. A sharp increase is also being seen in longhaul clients.

How are you preparing yourself and your team for it?
I have a great team that always helps to achieve business success, thanks to its commitment and dedication. We are already achieving a presence in new regional and international markets but there is still much more to be done.

My philosophy is to follow a strategy of innovation without losing sight of our founding principles – service and welcoming, sunny Thai hospitality.

At the same time, I strongly believe that developing people is fundamental to the success of any organisation, especially in light of the upcoming ASEAN Economic Community in 2015.

Iqbal Jumabhoy, managing director & CEO, SilverNeedle Hospitality, Singapore

What’s the biggest deal you made this year, or what to you was big deal?
We acquired a major asset in Brisbane, the Chifley at Lennons, for A$57million (US$60 million).

Describe 2013 in climatic conditions.
Sunny with rainy spells.

How are you preparing yourself and your team for it?
Raincoats and waterproof character!

Choe Peng Sum, CEO, Frasers Hospitality, Singapore

What’s the biggest deal you made this year, or what to you was big deal?
We launched Capri by Fraser, then followed it up with the opening of Capri by Fraser, Changi City/Singapore in September. We managed to cut through the traditional perception of what a hotel or serviced residence is supposed to be. We dared to take a step sideways. Potential partners, supporters and friends of Fraser have given us the thumbs up for this urban-inspired, design-led brand, aimed squarely at the e-generation. It’s big deal for me when the whole team comes together to produce something all of us are proud of.

Describe 2013 in climatic conditions.
A little cloudy and potentially stormy, but with good chances of sunny spells sprinkled throughout the year.

How are you preparing yourself and your team for it?
Grey suits and raincoats could be part of our daily wardrobe, but along with that, these same raincoats can be peeled off adroitly to reveal more colourful reversible sides, with fashionable zippers which could change the entire look of the sombre rainy day staple. In short we will tamper caution with dexterity so as to seize the opportunities when they present themselves.

Bernold O Schroeder, CEO, Jin Jiang International Hotel Management, China

What’s the biggest deal you made this year, or what to you was big deal?
Putting a new international team together. Most of the leadership team are highly-motivated PRC nationals with an international background. Building a new headquarters with new owner- and consumer-friendly service platforms. Changing the sales and marketing structure, including a five million-member strong loyalty programme. Signing 15 new management contracts and opening eight hotels. And our financials are good – in an often over-supplied market, this is big deal for me and the credit goes to a great team.

Describe 2013 in climatic conditions.
Mainly sunny in this part of the world. The industry here (in China) has become very flexible, there is overall enough demand and everyone knows what to do when there is some intermittent rain or scattered showers.

How are you preparing yourself and your team for it?
Don’t overreact and think it’s a typhoon when it is actually only drizzling. This can be avoided with regular monitoring of the weather forecast, having a finger on the pulse and having a grassroot management that focuses on the execution. As management, we review and plan for all scenarios, from sunshine to rain to special scenarios like poor visibility.

Marc Dardenne, CEO, Patina Hotels & Resorts, Singapore

What’s the biggest deal you made this year, or what to you was big deal?
It was the introduction of Patina Hotels and Resorts, our new luxury hospitality collection, to the global luxury hospitality market. The response to the new brand has been tremendous – we are busy developing our flagship property, due to open 2014 in Singapore, as well as working on an exciting project pipeline of hotels in Asia and the Middle East.

Describe 2013 in climatic conditions.
I am an optimist and always see the glass half full. I don’t deny that there are some clouds in the sky, especially over the US and Europe, but I think Asia is the place to be and Singapore is in a better position to weather the storm than other parts of the world.

How are you preparing yourself and your team for it?
We are focused on developing our flagship property; introducing new breakthrough ideas and key service differentiators that will set us apart in the luxury hospitality market when we open our hotel in 2014. We are also working with like-minded partners to continue developing our pipeline of hotel projects that we feel will be able to take full advantage of the upswing in business when the global economy eventually recovers.

Loh Lik Peng, founder & CEO, Unlisted Collection, Singapore

What’s the biggest deal you made this year, or what to you was big deal?
Ha ha hmmm…bought a hotel site in Sydney that will be converted into a 60-room boutique hotel and three restaurants. An exciting development, and it’s big deal for me (monetary and expansion-wise) moving into Sydney for the first time.

Describe 2013 in climatic conditions.
Rain clouds and the occasional heavy shower with brighter conditions later in the day.

How are you preparing yourself and your team for it?
We’ve been distributing raincoats in the last few years but remarkably they have proved to be less useful that my initial forecasts, at least in the places we’re operating in, so 2013 could be the year we’re finally going to use them. I hope the rainstorms are sharp but very short!

MPS Puri, founder and CEO, Nira Hotels & Resorts, UK

What’s the biggest deal you made this year, or what to you was big deal?  
Managed to create two new F&B concepts that will launch next year. Also, acquired a project in Thailand that we have been waiting for for quite some time.

Describe 2013 in climatic conditions.
Unpredictable.

How are you preparing yourself and your team for it?
Everyone has two sets of clothes, one for rain, one for shine.

Allen Law, CEO, Park Hotel Group, Singapore

What’s the biggest deal you made this year, or what to you was big deal?
Being named Best Regional Chain at the TTG Asia Travel Awards 2012 and securing Park Hotel Group’s first two hotel management contracts were definitely the highlights for this year. The results are strong testaments of our efforts and recognition of Park Hotel Group’s management capabilities.

Describe 2013 in climatic conditions.
Generally sunny in Asia.

How are you preparing yourself and your team for it?
We always pack clothing for all seasons, but will certainly stock up on ice cream and sun-tanning lotion for 2013.

Jason Peck, CEO, Furama Hotels International, Singapore

What’s the biggest deal you made this year, or what to you was big deal?
The biggest deal or achievement was the TTG Travel Award for Furama RiverFront, our flagship hotel, as Best Mid-Range Hotel for the fourth year running. It gives us satisfaction to get such recognition from the trade.

Describe 2013 in climatic conditions.
The European debt crisis will have some effect on our business. But Asia is strong, and we are an Asian brand. With a positive mindset, we will still be heading towards a good year ahead.

How are you preparing yourself and your team for it?
We are all prepared and mentally set for the positive challenge.

Peter Henley, CEO, Amari  Hotels & Resorts, Thailand

What’s the biggest deal you made this year, or what to you was big deal?
Our deal with the BBC to bring Dancing with the Stars here (Thailand) as an exclusive sponsor to raise awareness of Amari in the Thai market and give life to our Colours and Rhythms tagline.

Describe 2013 in climatic conditions.
Watery sun with dark clouds rumbling in the distance.

How are you preparing yourself and your team for it?
Equip everyone with sunblock and Amari umbrellas as well.

This article was first published in TTG Asia, December 14, 2012, on page 4. To read more, please view our digital edition or click here to subscribe.