TTG Asia
Asia/Singapore Monday, 13th April 2026
Page 2501

India’s aviation sector catches tail wind of recovery

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SIGNS are pointing to a revival of India’s aviation sector this year thanks to Air India’s recovery, a flood of new seat entitlements and measures that will tackle the hot-button issue of high aviation turbine fuel (ATF) sales taxes.

Revealing this at Routes Asia, civil aviation minister Ajit Singh said recent discussions with Maharashtra state representatives would see changes on the ATF front that will be announced tomorrow.

Maharashtra’s Mumbai airport is a key gateway to India, but has one of the highest ATF sales taxes in India, at about 25 per cent. One of the primary issues facing carriers in India is the inconsistent tax rates across the country.

He also said that Mumbai had the potential to serve as a hub, but this would work only when tier two and tier three cities were connected and plans were in place to “incentivise” rather than “mandate” carriers to fly to smaller cities.

Singh also pointed out that enhanced traffic rights for Indian carriers had granted an additional 81,000 overseas seat entitlements, with clearance to come into effect for summer and winter 2013.

Air India’s fortunes are on the rise too, beginning the current 2013/2014 Indian financial year with a positive balance of Rs200 million (US$3.7 million) EBIDTA, the first time since 2007. This is welcome relief after it started the previous financial year with negative Rs20 billion.

The airline’s market share grew to 20 per cent in 2012 from 15 per cent in 2011, as did its load factor, which sprung to 85 per cent last year from 75 per cent the year before.

Looking ahead, Singh said that India’s FDI policy would not only boost the industry locally but in other parts of Asia as well. “The various joint ventures (Tata-AirAsia’s proposal and the potential Jet-Etihad) are examples of growing business confidence in the Indian civil aviation sector.”

By Renuka Vijay Kumar 

LCCs in the region must adopt a local approach: airline execs

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ADAPTING an LCC to the local market is critical as a cookie-cutter approach would not work in Asia, agreed panellists at the Routes Asia Strategy Summit.

SpiceJet CEO, Neil Mills, said: “In Asia, the LCC model is very different from the traditional networks.”

The Indian LCC is 80 per cent identical to LCCs elsewhere, “but the last 20 per cent is catered to the local market”, he added.

“We serve hot food on board SpiceJet but would never dream of doing it elsewhere. Because in India, food is a very important part of the experience,” he explained.

Venggataro Niadu, head of network and fleet management, AirAsia X, said: “We will see not just LCCs moving towards the hybrid model but also other full-service airlines (doing the same).”

He further predicted that with rising costs, cost per seat for both LCCs and legacy carriers would increase. The margin would still remain significant and that was when customers will turn to LCCs, he said.

The idea of collaboration among LCCs was also mooted. Giorgio De Roni, CEO, GoAir, suggested that LCCs work towards bundling services such as using common airport security and luggage handling systems. He added that GoAir was in discussions with airport regulators to facilitate these processes.

“There can be value in low-cost alliances, but most of the time, ego gets in the way of business,” said Mills.

Meanwhile, both Mills and De Roni said they saw no threat from the upcoming AirAsia India venture, and were confident about their products, value offerings and expect continued business from the regions their airlines cater to.

By Renuka Vijay Kumar 

Singaporeans make beeline for Switzerland

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SWITZERLAND saw impressive double-digit growth in arrivals from Singapore in 2012, which it hopes to further nurture with its e-learning course for travel consultants, launched in January.

According to Switzerland Tourism during a media conference yesterday, tourist numbers from Singapore shot up by a whopping 27.6 per cent from 55,310 in 2011 to 70,565 last year.

While group tours continue to dominate tourist arrivals from this market, Ivan Breiter, Switzerland Tourism’s director-South-east Asia, said FITs were a growing market, with “more individual travellers in search of unique experiences”.

Singaporeans were also extending their stays beyond the usual one or two days, he added. Hotel overnights increased by 18.2 per cent to 129,970 from 2011 to 2012.

Breiter said: “These additional nights spent show us that they are taking time to explore deeper into Switzerland.”

Switzerland Tourism’s e-learning course hopes to help travel consultants better plan and market trips. Upon completion of the eight-module online course and final test, they will be recognised as Certified Switzerland Specialists.

Seleen Koh, manager for outbound group travel, Dynasty Travel, said: “This course helps to refresh our memory and allows us to advise the FIT group better as we need to customise their itineraries more.”

Sam How, general manager, Asia-Euro Holidays Singapore, added: “Switzerland is very convenient for FITs because transport there is very synchronised. You only need the Swiss Pass to go anywhere by train, bus or boat. It also helps that it is very safe compared to neighbouring countries in Europe.”

In June last year, Switzerland Tourism opened a South-east Asia office in Singapore to draw more arrivals from the region. Singapore was the largest South-east Asian market in 2011, accounting for some 35 per cent of total arrivals from the region (TTG Asia e-Daily, February 22, 2012).

Citadines brand lands in Jakarta and Kuching

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THE Ascott has debuted the Citadines brand in Indonesia and Malaysia with the opening of Citadines Rasuna Jakarta and Citadines Uplands Kuching.

Alfred Ong, managing director for South-east Asia and Australia, The Ascott, said the new serviced residences “complement our existing Ascott and Somerset serviced residences in Indonesia and Malaysia, allowing us to reach out to a wider segment of customers”.

“This positions us for stronger growth in Indonesia and Malaysia, where demand for serviced residences continues to rise on the back of strong economic fundamentals and high foreign direct investments,” he added.

Part of The H Tower, an integrated development, Citadines Rasuna Jakarta is located in Jakata’s CBD and close to embassies, MNC offices and shopping centres such as Kota Kasablanka.

Citadines Uplands Kuching is situated in Jalan Simpang Tiga, a 15-minute drive from the Kuching International Airport, Borneo Convention Centre and Samajaya Free Industrial Zone where MNCs and local companies are located. It is also part of an integrated development known as ST3, which encompasses a shopping mall with over 200 retail outlets.

Both the 153-unit Citadines Rasuna Jakarta and 215-unit Citadines Uplands Kuching offer studio, one- and two-bedroom apartments, which come with fully-equipped kitchens and home entertainment systems. Residents can make use of the swimming pool, gym and laundrette, among other services. Internet access is free at Citadines Rasuna Jakarta, but chargeable at Citadines Uplands Kuching.

To mark the occasion, Ascott is offering deals from Rp750,000 (US$77) per night until April 29 at Citadines Rasuna Jakarta, and from RM168 (US$54) per night until March 31 at Citadines Uplands Kuching.

Chong Kee Hiong, CEO, The Ascott, said: “To cater to the demand (for Citadines-branded properties), we will be opening 13 more Citadines in China, India, Indonesia, Malaysia, the Philippines and Germany by 2015.”

Our article earlier reported that Internet access at both Citadines Rasuna Jakarta and Citadines Uplands Kuching is free. This was a mistake and has been duly amended.

Second-largest Courtyard by Marriott opens in Hong Kong

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MARRIOTT International launched the Courtyard by Marriott Hong Kong Sha Tin yesterday, the second biggest property under the Courtyard brand.

Owned by the Nan Fung Group, the hotel features 539 rooms and suites, including the 165m2 Presidential Suite on the 30th floor. Rooms include a work area and high-speed Internet access.

Guests may make use of the hotel’s GoBoard in the lobby for up-to-date local information, weather forecasts, maps, headline news as well as the latest on attractions, flights and events on the GoBoard’s 55-inch LCD touchscreen. Users can send directions from the GoBoard directly to their smartphones.

Besides that, the hotel also offers an all-day dining café with two private rooms, an open-space lobby lounge, an executive lounge, a business centre, a 24-hour gym, an outdoor swimming pool and a 515m2 pillar-less ballroom with capacity for up to 430 people. Complimentary Wi-Fi is also available throughout all public areas.

Japan rolls out guidebook for Muslim travellers

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JAPAN National Tourism Organization (JNTO) has published its Japan Travel Guide for Muslim Visitors as part of the country’s efforts to attract more Muslim visitors from South-east Asia (TTG Asia e-Daily, October 8, 2012).

Highlighting Muslim-friendly restaurants, mosques, attractions and Muslim organisations in Japan, the guide will be distributed through travel consultants and available for online downloads.

Unsurprisingly, Malaysia’s travel trade has welcomed the publication.

Malaysian Harmony Tours & Travel CEO, Cooper Huang, said the guidebook would increase awareness among Muslims of Japan’s Muslim-friendly facilities and increase their comfort in planning a vacation to Japan.

The publication was also timely since the yen had depreciated, making holidaying in Japan cheaper, he observed.

Fazal Bahardeen, CEO of Crescentrating, a Singapore-based travel website catering to halal-conscious Muslim travellers worldwide, said: “Muslim travellers are increasingly looking to explore new destinations and Japan is definitely one of them.

“Up until now it was not clear what services Japan has when it comes to serving the basic needs of these travellers, such as halal food and prayer facilities. This visitor guide is an important step to give the comfort level needed for Muslim holidaymakers to plan their trips to Japan.”

Earlier this year, JNTO and the Malaysian Association of Tour and Travel Agents signed an MoU to promote cooperation and exchange of tourism ideas between the two countries (TTG Asia e-Daily, January 29, 2013)

Sofitel Philippine Plaza carves out medical tourism niche

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SOFITEL Philippine Plaza is taking aim at the burgeoning medical tourism sector in South-east Asia by opening its own in-house aesthetic centre.

Vietura is a 20-room facility offering a range of customisable programmes including face contouring, body sculpting, weight-management, and remedies for complexion problems and digestive disorders.

It is helmed by chief practitioner Mary Jane Torres with a staff of 12 registered nurses, a dietician and a lifestyle coach.

“Manila is a tremendous destination for international travellers who want cost-effective aesthetic treatments,” said Goran Aleks, general manager, Sofitel Philippine Plaza.

“Watching them exit the hotel for wellness clinics (downtown) sparked an idea: why not take it to the next level, and develop a concept that goes beyond the quick fix to full-on behaviour modification?”

Located in a discreet corner of Sofitel, the aesthetic centre can be accessed via the back of the property and does not come with a common waiting area, allowing for more privacy as guests are directly ushered into the treatment rooms.

Singapore contemplates fourth runway in Changi

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SINGAPORE is planning for even busier air traffic as the government ponders a fourth runway, in addition to upcoming developments such as a new mega terminal and third runway.

According to local daily The Straits Times, the Civil Aviation Authority of Singapore is investigating the need for a fourth runway, which industry watchers say is likely to be built on the same site as the third runway.

Changi’s third runway will be ready by the end of this decade, said Singapore’s minister for state transport, Josephine Teo, last week. The runway will be redeveloped from an existing one currently used for military purposes on a reclaimed piece of land near the airport (TTG Asia e-Daily, July 19, 2012).

Just last month, Changi Airport Group announced that Terminal 4 would open by 2017 (TTG Asia e-Daily, February 14, 2013).

Changi Airport witnessed a throughput of 51.2 million passengers last year. Added capacity will allow the airport to handle up to 85 million passengers annually, as compared to the current projection of 73 million by 2018.

Malindo Air bumps up capacity to East Malaysia

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MALINDO Air is set to take to the skies later this week with cheers from the trade, who welcome the increased capacity and promotional fares on the airline’s first routes to Sabah and Sarawak.

A member of Lion Group, the Kuala Lumpur-based carrier will commence thrice-daily services to Kota Kinabalu on March 22 and four-times-daily services to Kuching the next day, on 180-seater Boeing 737-900ER aircraft.

Malindo Air’s commercial director, Rajasegaran Rajoo, said the airline was looking at connecting Kuala Lumpur to three more points in Sarawak, namely Sibu, Bintulu and Miri by June.

The self-proclaimed “Malaysian hybrid” offers low fares coupled with services offered by full-service airlines such as refreshments, 45-inch seats in business class and 32-inch seats in economy.

Inbound tour operator, World Avenues executive director, Ally Bhoonee, said: “Malindo’s promotional airfares will improve domestic tourism between East and West Malaysia, and provide more flight options and timings for travellers. Hopefully, the increase in seat capacity will also see a reduction in airfares in these sectors, which are currently dominated by Malaysia Airlines and AirAsia.”

Malindo’s one-way, all-in promotional airfare, starts from RM38 (US$12) to Kuching and RM68 to Kota Kinabalu.

In comparison, promotional airfares as seen on AirAsia’s website on Saturday priced the earliest Kota Kinabalu flight at RM134 all-in, and the cheapest flight to Kuching on the same day at RM124 all-in.

Sabah Tourism Board chairman, Tengku Zainal Adlin, said what was more important was the increase in seat capacity. He noted there was a shortage of seats on the Kuala Lumpur-Kota Kinabalu sector, especially during the school holiday season.

Lion Air orders 200 Airbus A320s

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INDONESIA’S Lion Air will today sign a deal with Airbus for over 200 A320 medium-haul jets.

According to news agency AFP, the multi-billion dollar deal marks the first order Lion Air is placing with Airbus, having been equipped solely by Boeing thus far.

Airbus’ new deal with the budget airline will be close to the tune of US$20 billion or more, given that a standard A320 model is priced at US$91.5 million, while the company’s newer fuel-efficient model, Neo, commands more than US$100 million apiece, reported AFP.

On the other hand, Garuda Indonesia is slated to take the delivery of 24 new aircraft this year (TTG Asia e-Daily, November 12, 2013).