GARUDA Indonesia will commence six weekly services from Jakarta to London’s Gatwick Airport in the fourth quarter of 2013, as part of its international network development strategy.

Using the new Boeing 777-300ER aircraft – which Garuda is taking first delivery for this year – the Jakarta-London route will mark the airline’s second Europe service after Jakarta-Abu Dhabi-Amsterdam (TTG Asia e-Daily, December 7, 2012).

Garuda president and CEO, Emirsyah Satar, said the launch of the new route would foster economic activities between Indonesia and the UK, in addition to opening up direct access between South-east Asia and Europe.

Gatwick was selected as the operational airport for “its vast network and choice of accessibilities with other European countries”, said Emirsyah.

Added Gatwick Airport’s chief executive Stewart Wingate: “It is not only because of the significant potential Indonesian business development for the UK, but also because of the absence of direct air links connecting both countries (so far).”

British prime minister David Cameron was also quoted by the airline’s media release as saying that the direct route between the two countries would enable the UK’s business sector to tap the fast-growing Indonesian economy while stimulating Indonesia to be more competitive on the global arena.

Garuda’s B777-300ER aircraft will have 314 seats, comprising eight First Class, 38 Business Class and 268 Economy Class, and will be equipped with Wi-Fi facilities and a Chef on Board service in its First Class cabin.

TRAFFIC from China into the Philippines is showing signs of a comeback, as evidenced from the increased group tour bookings and resumption of charter flights in the run-up to the Lunar New Year period.

Philippine Airlines will start charter flights from Chengdu to Kalibo today and will offer daily charter flights between Hong Kong and Cebu from February 10 to 16.

Zest Air launched charter flights from Shanghai to Kalibo on January 11, while it increased the frequency of its regular Shanghai-Manila flights to four times weekly since last December.

Airphil Express is also expected to start charter flights from Hangzhou and Guangzhou to Kalibo in May 2013, in addition to its charter services from Guangzhou and Shanghai to Cebu since January 24 and from Shanghai to Kalibo since November 30.

“Whereas before there were Chinese airlines (launching flights), now there are more local airlines,” according to a spokesperson from the Philippine Department of Tourism.

However, Performance Travel & Tours’ assistant operations manager, Aileen Cada, estimated that the inbound traffic from China “has recovered only up to 75 per cent of the levels prior to the May-October 2012 travel ban (imposed by China)”.

During the Lunar New Year period in January 2012, the Philippines welcomed 42,868 Chinese visitors, and arrivals from China surpassed the 25,000 mark each month up until the travel ban. Following that, numbers dipped sharply to less than 20,000 monthly and only improved slightly when the ban was lifted.

FOLLOWING a robust start to 2013 that saw the hospitality firm stepping up its presence overseas (TTG Asia e-Daily, January 15, 2013), Dusit International is now turning its sights closer to home with a new DusitD2 hotel in Khao Yai, Thailand.

Scheduled to open in 4Q2014, DusitD2 Khao Yai will be part of Phuphatara Khao Yai, a residential development by Vilailux Development, which plans to build villas and condominiums in addition to the hotel in the Khao Yai area.

Featuring a winery/vineyard concept, the 79-room hotel boasts a grill restaurant, a banquet-style meeting room, a lawn for outdoor events, a hot spring spa and a multi-purpose library.

“Offering classic Thai hospitality with a modern and chic touch, DusitD2 is one of the most promising brands of the Dusit family,” said Dusit International managing director and CEO, Chanin Donavanik.

SICHUAN Airlines will begin thrice-weekly flights between Melbourne and Chengdu on February 28, marking the first direct flights between Australia and western China.

Using Airbus A330 wide-body aircraft, it will provide an additional 76,440 seats every year.

Melbourne Airport CEO, Chris Woodruff, said: “The commencement of Sichuan Airlines’ flights follows the signing of a sister-airport agreement between Melbourne Airport and Chengdu Shuangliu International Airport last year, in which we committed to strengthening the relationship between our airports as well as securing more direct flights between our respective regions.

“Visitors from China will no longer have to transit through other cities en route to Australia, providing Melbourne and Victoria with a unique advantage for visitors from Sichuan and western China.”

Sichuan Airlines had started selling tickets for the new Chengdu-Melbourne service using the imagery of fairy penguins on Phillip Island, Woodruff added.

ETIHAD Airways has launched new daily flights between Abu Dhabi and Brisbane via Singapore, a booster shot for its thrice-weekly Brisbane-Singapore connections which have been in operation since 2007.

James Hogan, president and CEO, Etihad Airways, said the new daily service would add 1,048 seats per week on the Abu Dhabi-Singapore-Brisbane route.

“The additional capacity puts Etihad Airways in a stronger than ever position in the Singapore and Australian markets. It enables us to compete on a more level playing field than in the past,” he said.

The airline has deployed an Airbus A330-200 aircraft for the route, configured in two classes with 22 seats is business class and 240 in economy.

The flight departs Abu Dhabi at 10.25 daily, arriving in Singapore at 22.10. It departs Singapore at 23.40 and touches down in Brisbane at 09.40 the next day.

Meanwhile, flights take off from Brisbane at 11.55 daily to reach Singapore at 18.10 the day before. Abu Dhabi-bound flights depart Singapore at 19.45 and will land in Abu Dhabi at 23.30 the same day.

MALAYSIA Airlines (MAS) officially joined the ranks of the oneworld alliance last week, and has started getting cosy with fellow alliance member American Airlines through a new codeshare agreement.

MAS, which operates flights to more than 60 destinations in almost 30 countries, will expand the alliance’s network in South-east Asia.

The airline’s group CEO Ahmad Jauhari Yahya said: “Oneworld enables its member airlines to deliver more services and benefits to their customers – particularly frequent flyers – than any airline can on its own. For MAS, joining the alliance will strengthen its competitiveness, enabling it to offer customers an unrivalled alliance global network served by the highest quality partners from each of the world’s key regions.”

Members of MAS’s Enrich frequent flyer programme will be able to earn and redeem reward points when travelling with any member airline. Enrich Platinum and Gold members can also make use of the 550 airport lounges worldwide offered by member airlines.

At the same time, through a codeshare agreement with fellow oneworld alliance member, American Airlines, MAS will extend its reach into the US. American Airlines also stands to benefit from new growth opportunities in South-east Asia.

Following government approvals, MAS will place American Airlines’ code on non-stop flights between Kuala Lumpur and its South-east Asian destinations, as well as flights to European cities such as Paris and London.

Bookings for codeshare flights will begin as early as February 24 for travel beginning March 1, according to a press statement from American Airlines.

Meanwhile, in a bid to celebrate MAS’ entry to the alliance, American Airlines is offering members of its AAdvantage programme double miles whenever they fly an eligible fare on the Asian carrier between February 15 and April 15 this year.

WHILE room oversupply continues to be a recurring theme in Thailand’s hospitality landscape, hoteliers are confident of the sector’s outlook for 2013 amid strong tourism growth.

During the Thailand Hotel Leaders Summit panel discussion at the Thailand Tourism Forum 2013, InterContinental Hotels Group COO, Asia Australasia, Clarence Tan, downplayed the issue of room oversupply, saying Thailand’s many destinations would be able to absorb high inbound numbers.

“Pricing is a bigger issue than oversupply,” he cautioned, pointing to Thailand’s low room rates.

Peter Henley, president & CEO, Onyx Hospitality & Hotels, concurred, likening Thailand’s room glut to “a ticking time bomb” as hotel construction still outpaced rates.

Furthermore, delivering sustainable income growth amid rising energy costs and challenges in recruiting staff and boosting productivity was one of the “rain clouds” looming over the hospitality landscape, he added.

But opportunities abound to tackle the challenges facing the Thai hotel industry too, the speakers pointed out, especially in a market mix whose centre of gravity is increasingly shifting from Europe and the US to Asia.

Tan remarked: “China is a big source market, and Chinese customers are trading up rapidly to the upscale segments. Hong Kong experienced (the changing profile of Chinese travellers) within five years, and Thailand will see that too. Increasingly these customers will be chasing (high-end) experiences.”

Minor Hotel Group CEO Dillip Rajakarier, who observed a growing sophistication among the spending habits of Chinese and Russian travellers, agreed: “Chinese used to spend little when they visit our property in the Maldives, even carrying their own water from Malé, but today they are spending three to four times more on F&B and spa.”

At the same time, emerging South-east Asian economies will play a bigger role in Thailand’s tourism future.

Chanin Donavanik, CEO, Dusit International said: “(As) domestic tourism grows and more flights connect to Southern China, Laos and Cambodia, more destinations will open up in Thailand, particularly cities along the border.”

Meanwhile, Henley believes that Thailand’s corporate travel segment still has potential for growth. “There has been significant development of corporate hotels and destinations like Pattaya. Attracting meetings and corporate travel business should be the way forward.”

RUSSIA has piqued Macau’s interest as a new source market, with the number of Russian tourists on package tours skyrocketing by 122.9 per cent last year, though from a small base.

Arrivals from Russia are likely to continue soaring, given the visa-free pact signed by Macau and Russia’s authorities in 2012 that came into effect on September 30, allowing tourists a 30-day visa-free stay.

Gray Line Tours of Macau’s managing director, Andy Wu, urged MGTO to hold promotions in Russia to generate awareness of Macau as a destination.

Wu said: “(Macau) could be an add-on stop for Russians when they plan week-long visits to Hainan Island (in China).”

However, he acknowledged some difficulties in tapping the Russian market. “As (Macau is) a small city, it is hard to persuade (Russians) to stay long. We also face challenges such as (having to) train tour guides (to cater to Russian visitors) and the lack of direct air access between Macau and Russia,” he said.

To get to Macau, Russian visitors must travel via Hong Kong.

The new director of Macau Government Tourist Office (MGTO), Maria Helena de Senna Fernandes, said: “We are still testing waters. Promotions will be implemented step-by-step, so we can’t expect (too much) at this stage.”

She said MGTO would appoint a new marketing representative in Russia.

Fernandes was speaking at the MGTO Annual Press Conference 2013, where it was revealed that Macau would continue to explore different tourist segments and tackle overcrowding at key attractions.

“We hope to divert tourists from jam-packed attractions to other interesting spots in Macau,” she explained.

Wedding tourism is also on MGTO’s rader, having launched a wedding incentive scheme last November. Couples whose nuptials bring at least 50 non-local guests staying two consecutive nights at Macau’s hotels will receive tourism information kits, welcome gifts and other perks to help them better experience the destination.

SINGAPORE-based Asiatravel.com Holdings last week inked an agreement with China Xinhua Travel Network Services to supply the latter’s online wholesale system and provide XML integration of its database for a period of three years.

Xinhua, which has 30 branches and more than 400 retail outlets in major Chinese cities, will adopt Asiatravel.com’s online wholesale system, TAcentre.com, to book hotels, tours, attraction tickets and flight packages.

Asiatravel.com will also supply its global data of travel products to 51you.com’s system, a travel site owned by Xinhua.

Asiatravel.com’s executive chairman and CEO, Boh Tuang Poh, acknowledged the growth of international travel from China and added that “Xinhua Travel’s extensive network of agencies and business travellers will help us strengthen our presence in China”.

Xinhua Travel CEO Su Zhi Yi said: “As more Chinese traveller are seeking overseas destinations, we see a need to provide them with the most accurate data, price and inventory within the shortest possible time, and having this supply from Asiatravel.com will boost our operational and customer service efficiencies.”

INDIA’S Airports Economic Regulatory Authority (AERA) has approved a raft of fee hikes impacting both airlines and passengers at Mumbai and Kolkata’s international airports, a move akin to shooting itself in the foot say trade players.

At Mumbai’s Chhatrapati Shivaji International Airport, fees will rise 154 per cent across the board. Domestic airlines can expect to pay 40 per cent more while international carriers will have to shell out 120 per cent more.

Passengers are not spared. Since February 1, passengers have to factor in the new user development fees in addition to a current airport development fee. Passengers on international flights now have to pay Rs692 (US$13) on top of an airport development fee of Rs600. Those on domestic flights will have to fork out an additional Rs346, on top of a Rs100 airport development fee.

Slight relief will come between April 1 this year and March 31, 2014 when the new user development fees are reduced to Rs274 on domestic tickets and Rs548 on international tickets.

Meanwhile, AERA has also approved a hike in user development fees at Kolkata’s Netaji Subhash Chandra Bose International Airport. With effect from February 16, domestic and international fliers will pay Rs400 and Rs1,000 respectively. This fee will creep up to Rs424 and Rs1,060 from April 1, 2014 and again to Rs449 and Rs1,124 a year later.

AERA based its revised tariffs on air traffic projections for the next four years. It expects a 10 per cent annual growth at the Kolkata airport until 2015/2016.

Industry players were dismayed by the news.

“We are concerned that Indian airports are emerging as the most expensive in the world. How will it be possible for airlines to create hubs here?” said Tom Wright, chairman, British business group, Cathay Pacific Airways.

Rajendra Churiwala, director – eastern region, IATA Agents Association of India, observed: “The pressure on travel consultants is immense as clients demand cheaper airfares…Such high increases (in airport fees) will be counter productive.”

Delhi International Airport raised charges by 346 per cent in 4Q2012, only to have the Indian government order a return to previous rates on January 1, following an outcry from the both passengers and aviation players.