SINGAPORE Airlines (SIA) stated on Monday that it is in talks to sell off its 49 per cent stake in Virgin Atlantic to unnamed parties.

In a short statement, the airline said:” Singapore Airlines wishes to announce that it is in discussions with interested parties concerning the possible divestment of its 49 per cent shareholding in Virgin Atlantic Limited.”

It added that “these discussions may or may not result in a transaction.”

According to Britain’s Sunday Times, Delta Air Lines is reportedly one of the interested parties that hopes to buy the stake to increase its presence in London’s Heathrow Airport, which is the busiest airport in Europe.

SIA bought the Virgin Atlantic stake for 600 million pounds (US$967 million) in 1999. Richard Branson, the founder of Virgin Atlantic, owns the majority 51 per cent stake in the latter.

Market analysts said the move comes as no surprise since SIA had not benefited much from Virgin Atlantic through the years.

“Virgin contributes very little to Singapore Airlines; they have been unable to generate any real synergies and there’s essentially been no marriage of the brands, no leverage of network opportunities,” said Timothy Ross, head of Asia-Pacific transport research at Credit Suisse in a Channel NewsAsia report.

RB CAPITAL Hotels has appointed Park Hotel Group to manage its 300-room hotel at Farrer Park in Singapore. Part of a S$450 million (US$369 million) mixed-use project, it is expected to be completed in the first half of 2015.

The hotel will be operated under the upscale Park Hotel brand.

Kishin R K, the head of RB Capital Group and RB Capital Hotels, said: “Park Hotel Farrer Park will serve the fast-growing population of business and leisure travellers seeking a high-quality hotel located in the vibrant shopping and entertainment district of Little India. With its location on top of the Farrer Park MRT station, the hotel will be well connected to the city and the Central Business District (CBD).” An underground pedestrian walkway will also link the hotel to City Square Mall.

Kishin also observed that with the upcoming Connexion healthcare and hospitality complex across the street, Farrer Park will become a medical hub serving both locals as well as medical tourists from the region.

Park Hotel Farrer Park is Park Hotel Group’s fifth Park-branded hotel in the country, with its latest announcement being a 450-room project in Alexandra, also slated to open in the first half of 2015.

AIR India’s increased fuel surcharge is expected to raise its international airfares, which are already at a high for the October-January peak travel season in India.

Fuel surcharge on flights to North America and Europe has increased by US$20 for a one-way ticket and US$40 for a return ticket. The surcharge in other sectors including Seoul, Bangkok and Singapore has increased by US$10 for a one-way ticket and US$20 for a return ticket.

“Outbound international fliers from Delhi already need to pay a user development fee and airport development fee. The increase in fuel surcharge will further hit the pockets of fliers. However, airlines in India are bound to increase fuel surcharge (from time to time) due to high aviation turbine fuel prices.

“Operating costs for airlines in India are steep. (The) Delhi international airport has become the most expensive airport in the world (today), thanks to the 345.9 per cent hike in aeronautical charges, which include landing, parking, fuel uplift and use of common user terminals tariffs that was implemented in the recent past,” said Subhash Verma, managing director, Travel Plus.

Vineet Gopal, secretary, Outbound Tour Operators Association of India and director Engee Holidays added: “ At this time of the year, the demand for outbound travel is always high but for many travellers, the current fares may seem prohibitive. A round-trip ticket to New York is selling at US$1,800 whereas it normally sells at US$1,250. High fares will certainly impact the length of stay abroad and spending per person on such trips. Indians usually travel with family so the increased cost impact is compounded.”

Additional reporting by Shekhar Niyogi

ASIA reigns as the driving force in global tourism, with a seven per cent rise in outbound trips this year and a predicted six per cent growth next year, according to the latest ITB World Travel Trends Report.

Both China and Japan reported double-digit growth in outbound travel and had the most frequent travellers worldwide. During the first six months of this year, the number of outbound trips from China grew by 20 per cent. Japan, having recovered from its tsunami crisis last year, registered a 13.7 per cent growth for the first nine months of 2012.

Outbound trips from South Korea increased by 6.7 per cent, while most markets in South and South-east Asia lost momentum. India, Thailand, Malaysia and Singapore reported less than five per cent growth. The report also forecasts that only Indonesia and the Philippines will exceed 10 per cent growth this year.

However, the outlook for most Asian markets remains positive, with only one-third of Asians saying the global financial crisis would affect their travel plans, while two-thirds said it would have no impact at all.

Next year, 29 per cent of Asians intend to travel more, while only 16 per cent aim to travel less. A little over 50 per cent said they would undertake the same amount of trips.

Martin Buck, director of the Competence Center Travel & Logistics at Messe Berlin said: “Over the coming years Asia will continue to be one of the main forces driving international tourism. Despite the economic uncertainty threatening major markets such as China and other countries in North-east Asia, travellers from those countries will play an important role in global tourism.”

THE West Nusa Tenggara (NTB) regional government aims to score two million tourists yearly to Lombok and Sumbawa by 2015, following the success of the Visit Lombok-Sumbawa 2012 campaign, which saw one million domestic and international visitors arrive for the first 11 months of this year.

Speaking during the Lombok-Sumbawa Travel Fair in Jakarta last weekend, NTB tourism and culture director, Lalu Gita Ariyadi, said: “The domestic market holds the biggest potential for Lombok, and we expect it to contribute 65 per cent of arrivals, with the rest from the international market.”

International tourists comprised 25 per cent of arrivals this year.

To grab the international market, the NTB government and the regional tourism promotion board will organise sales missions to Malaysia, Saudi Arabia, China, Hong Kong, Singapore and Australia next year. Two events commemorating the 200^th anniversary of Mount Tambora’s eruption will be held in Sumbawa in 2015.

Ariyadi said: “MICE has been an important market in achieving the one-million mark, and we will continue to boost it. A number of investors have shown their interest in developing a convention centre in Lombok and we are in the process of selection now.”

He added that the regional government needed the support of airlines as well, and expressed hope that Garuda Indonesia, which recently began Makassar-Lombok services, would operate more direct flights to the destination.

On regional and international routes, Ariyadi said the authorities were dangling funding to airlines that implemented services to Lombok. AirAsia, which began Kuala Lumpur-Lombok flights in October, was the first carrier to receive Rp500 million (US$52,148) for promotions. “We would like to help the airline grow traffic to enable it to keep flying this route.”

He added that the NTB government was talking to airlines such as Tiger Airways Australia, to run services between Australia and Lombok, especially from Perth.

AS PART of its strategy to strengthen its Asia-Pacific presence, Emirates welcomed its first permanent Airbus A380 flight at Changi Airport’s Terminal One on Saturday, officially bringing the number of destinations served by its double-decker aircraft to 21.

With the addition of the A380 services, Emirates’ total capacity across its four daily services between Singapore and Dubai has now increased from 1,142 to 1,659 seats. The airline operated a two-week A380 ad hoc service on the route between September 8 and 21.

Nick Rees, Emirates’ manager for Singapore and Brunei, said that the extension of the A380’s services to the Far East plays a crucial part in the Middle Eastern carrier’s carefully calibrated plan to expand its presence across the Asia-Pacific, as it primes itself for its joint venture with Qantas.

“Over the years, we’ve seen strong demand on the Dubai-Singapore route, and Emirates has been boosting its flight services on this route progressively. Singapore is a prominent aviation hub in the region and naturally, it made sense to base an A380 here, which of course permits us to connect more Asian travellers to Dubai and beyond,” he said. Rees expects the load factor for the Singapore-Dubai A380 route to vary between 80 and well over 90 per cent depending on the season.

When queried about how the proposed collaboration with Qantas, scheduled for an early 2013 start date, would impact Emirates’ expansion plans in the region, Rees replied that the airline would continue to focus on developing connections between key Asia-Pacific cities and Dubai.

“There’s so much growth happening within Asia and the Pacific, especially within the longhaul segment. Both inbound and outbound traffic within the region are on an upward trajectory. China and Indonesia are still largely untapped, and we hope to be able to make further inroads into these markets,” he said.

The new service offers First and Business class passengers access to an onboard lounge serving a wide selection of snacks and beverages. First class passengers have the added luxury of shower spas and private suites.

ACCORDING to a source within India’s Ministry of Civil Aviation, Jet Airways is set to sell 24 per cent of its stake to Etihad Airways in a deal valued at Rs1,600 crore (US$292.2 million) and expected to close by March 2013.

The deal follows reports speculating that the airlines would enter such an arrangement. Jet Airways and Etihad Airways, already in a codesharing agreement, are expected to share technical know-how and slots as part of the deal. The sale will also allow Jet Airways to optimise the use of its 100-strong fleet.

“The deal will help Etihad Airways extend its reach in India and infuse liquidity in Jet Airways. The new entity will also pose stiff competition to other major players operating in the Middle Eastern market, including Air India and Emirates,” said Arun Anand, managing director, Midtown Travels.

In September, the Indian government began allowing foreign carriers to buy stakes of up to 49 per cent in Indian carriers. The move is welcome relief to Indian airlines, which have been bleeding because of high operating costs.

Etihad Airways acquired a four per cent stake in Virgin Australia for close to US$35.6 million in June, and had raised its stake in Air Berlin to 30 per cent in the past. It has also bought a 40 per cent share in Air Seychelles.

SENTOSA’S Underwater World Singapore is keeping mum about future plans even after the opening of Resorts World Sentosa’s Marine Life Park, with its only response being slashing of ticket prices.

Between December 1 and 31, all visitors to the attraction,  which is operated by the Haw Par Group, will pay a flat price of S$15 (US$12.30) per person ­– a rate last seen in the 1990s. Currently, an adult pays S$25.90, while a senior citizen pays S$20.80 and a child pays S$17.60. As part of the promotion, every paying adult can bring a senior citizen or a child in free of charge.

When questioned by TTG Asia e-Daily about the attraction’s long-term strategy, a spokesperson reiterated in an e-mail: “Our primary objective is to offer value to our customers and we have been, and we are likely to continue rolling out promotions that will allow both tourists and locals to experience Underwater World as part of their holistic island journey. Visitors can also look forward to attractive price promotions during special periods.”

Hong Thai Travel Services’ assistant general manager for inbound tours, Tony Aw, revealed that he had asked the attraction as early as 2010 about its future plans, but was not given a satisfactory reply.

He said: “I am afraid Underwater World is going to lose out substantially, as visitors will undoubtedly flock to the Marine Life Park despite the higher admission prices because of its novelty and its sheer size.”

Helen Goh, director of marketing (inbound), Vacation DMC remarked that Underwater World had been overshadowed by the Marine Life Park, which she felt offered visitors more activities.

She said:” My guess is that (Underwater World) will continue to resort to discounting to pull in visitors for the time being. But of course, this is unsustainable in the long term.”

THE Royale Bintang Hotels & Resorts Group is readying the launch of two properties, one each in Penang and Cherating.

The 180-key, five-storey Royale Bintang Penang will open in Weld Quay in July 2013, while the 101-key Royale Bintang Villa Cherating is scheduled to debut in mid-2015.

“Targeted at business travellers, (The Royale Bintang Penang) will have a ballroom with a seating capacity of 400 pax in banquet style, four meeting rooms and complimentary Wi-Fi throughout the hotel,” said Mokhtar Khir, director of operations of Boustead Hotels & Resorts, which manages The Royale Bintang Hotels & Resorts Group.

“(The Royale Bintang Villa Cherating) will be located on a hill, with great views of the Cherating sea and its own private beach. We are targeting the leisure market, especially Europeans and Singaporeans for this property,” he added.

Meanwhile, The Royale Chulan Kuala Lumpur, the group’s five-star flagship property, “is doing well,” said Mokhtar, adding that the average occupancy of this hotel is approximately 65 per cent this year.

While there are no plans to expand overseas, the group is looking at venturing into the three-star hotel segment to cater to the domestic market and aims to have a three-star property in every state in Malaysia within the next five years, Mokhtar revealed.

GARUDA Indonesia has ramped up its Jakarta-Bangkok services from twice to thrice daily from December 1 amid improving economic situations in both countries.

Garuda’s vice president corporate communications, Pujobroto, said: “Thailand’s economy has increased by 3.6 per cent this year and is expected to rise by up to four per cent next year.”

According to the data from Indonesia’s Ministry of Tourism and Creative Economy, arrivals from Thailand are set to reach 105,900 this year and are projected to increase to 120,000 next year, Pujobroto said.

Meanwhile, the number of Indonesian arrivals to Thailand is expected to reach 265,200 this year and is likely to grow to 286,000 next year, he added.

Garuda currently serves the Jakarta-Bangkok route with Boeing 737-800 aircraft with 162 seats in two classes. The new GA864 flight leaves Jakarta at 16.20 to arrive in Bangkok at 20.10, while the return GA865 flight leaves Bangkok at 06.35, arriving in Jakarta at 10.10.