QANTAS inked a new global agreement with Emirates today, which will terminate its Singapore stopover on the long-established ‘Kangaroo Route’.

Besides codesharing, Qantas will be moving its base for European flights to Dubai as part of the 10-year deal, marking the beginning of a major restructuring of flights within the airline’s network.

Emirates and Qantas will also coordinate prices, sales and scheduling, and set up a benefit-sharing model. Their frequent flyer programmes will be aligned, allowing reciprocal access to tier-status benefits such as end-to-end customer recognition, lounge access, priority check-in among other benefits. Subject to regulatory approval, the two airlines will start their partnership in April 2013.

“With European services transiting through Dubai, Qantas’ Asian services will no longer be a subsidiary of the ‘Kangaroo Route’,” said Qantas Group CEO, Alan Joyce. Qantas will launch daily A380 services from Sydney and Melbourne to London via Dubai.

He explained that Qantas’ current Asian schedule was based on travel via Asia to Europe, but Australian business customers were demanding better access to Asia.

“We will increase dedicated capacity to Singapore and retime flights to Singapore and Hong Kong to enable more ‘same day’ connections across Asia. We believe this will significantly improve the economics of our Asian operations,” said Joyce.

The Australian airline will also stop servicing the Singapore-Frankfurt route, which it said has been “underperforming”.

On the other hand, Qantas has turned out former bedfellow British Airways (BA) and will axe their joint business. Established in 1995, both cooperated closely on all BA and Qantas flights between the UK and Australia. However, the airlines are still part of the oneworld alliance and will continue to work together through bilateral codeshares.

INDIAN airfares shot up today, as a steep hike in aviation fuel prices last week caused fuel surcharges to soar, affecting Air India, Jet Airways and JetKonnect.

The surcharge for distances flown up to 1,000km is now Rs1,750 (US$31.30) after an increase of Rs150, while the surcharge for distances above 1,000km has risen to Rs3,500 with a Rs250 adjustment. One-way international tickets have experienced a US$15 increase in surcharge.

This is the fourth time since July that oil companies in India have raised prices.

Aviation turbine fuel price rose by 7.6 per cent to an unprecedented high of Rs72,282 per kilolitre, which means fuel cost now accounts for about 50 per cent of an Indian carrier’s operating costs, compared to a much lower 25 per cent for most international airlines.

State taxes on aviation turbine fuel in India range from as high as 30 per cent to a more reasonable four per cent. International airlines buying fuel in India are not required to pay state taxes but still fork out about 16 per cent above average international prices.

Officials of LCCs like IndiGo and SpiceJet declined to comment if they would raise airfares too but stated that they were waiting to see the impact on their operating expenses.

Reduction in the number of Kingfisher flights has helped full-service carriers and LCCs come closer to breakeven point per ticket sold. As compared to a previous Rs1,000 shortfall, the gap is only Rs250 now, with the LCCs commanding 70 per cent market share in Indian skies.

STAR Cruises will introduce the re-christened SuperStar Gemini next year in Asia following a US$50 million renovation.

Refurbishment works will give the ship upgraded navigational systems, a new hull design and a host of onboard facilities for dining, leisure and shopping. Notably, the shopping area will cover more than 368m2 and offer duty-free goods from luxury retailers such as high-end wristwatches and jewellery.

Formerly known as Norwegian Dream, the vessel has a capacity of 1,532 people and will offer 766 guestrooms in various configurations, including deluxe executive suites, junior suites and oceanview staterooms.

SuperStar Gemini will make its round of inaugural cruises in early 2013 calling on ports in Malaysia, Thailand, Vietnam, Hong Kong and China, before starting its summer homeport deployment in Shanghai, where it is expected to sail to Japan, South Korea and Taiwan from April to October. It will later homeport in Sanya in winter, calling at Vietnam ports among others.

Star Cruises’ other vessels – SuperStar Virgo, SuperStar Aquarius and Star Pisces – also underwent renovations last year at a cost of more than US$38 million. SuperStar Libra is scheduled for refurbishment in early 2013.

COO of Star Cruises, William Ng, said: “With the strengthened fleet, we are well-positioned to further develop the Asia-Pacific cruise market by introducing world-class cruising experience as a holiday option to the growing (number of) North Asian holidaymakers.”

SHENZHEN Airlines is making a return to the Singapore market after an absence of two years.

Starting October 28, the fifth largest airline in China will operate a daily service between Shenzhen and Singapore using a Boeing 737-900 with 167 seats (eight in business and 159 in economy).

When the Chinese carrier suspended service on this route on September 14, 2010, it was operating a thrice-weekly service using the smaller Boeing 737-800.

The service will depart Shenzhen at 22.30 and arrive in Singapore at 02.10, while the return flight will leave Singapore at 08.15 and land in Shenzhen at 12.05.

Shenzhen Airlines is currently offering discounted round-trip fares for RMB800 (US$126), excluding taxes.

Shenzhen Airlines was formally accepted into the global airline network Star Alliance in July last year.

NOVOTEL Hua Hin Cha Am Beach Resort and Spa has started welcoming guests at its 243 rooms.

Fronting the beach between Hua Hin and Cha Am, the resort is a two-and-a-half hour drive from Bangkok and 10-15 minutes away from the Hua Hin Airport. Each guestroom is guaranteed a view of the Gulf of Thailand and free Wi-Fi access is offered throughout the property.

Available also are four F&B outlets, two bars, children’s play areas and a kids’ club, and the internationally known Pevonia Spa.

The resort also caters to MICE clients. Meeting facilities on the grounds include a 576m2 ballroom for up to 400 people and 10 well-equipped function rooms for small- to medium-size gatherings.

General manager, Alexander Parry, said: “Long renowned as a leisure destination, Hua Hin-Cha Am today represents one of Thailand’s top meeting and incentive destinations. With our comprehensive capacity and prime location, the hotel hopes to attract more of the lucrative meeting and event market while also welcoming visitors looking for a place to indulge themselves on the beach and pamper their families with well-being retreats.”

STARTING this year, the Philippines’ Department of Tourism (DoT) will mount an international marketing blitz to promote Philippine Amusement and Gaming Corporation’s (PAGCOR) Entertainment City, which is located along the Manila Bay area.

Among the first to benefit from the marketing offensive is the US$1 billion Solaire Resort and Casino, the first to open among the four integrated gaming and leisure resorts that comprise Entertainment City.

Slated to open during Solaire’s first phase in 1Q2013 are the Solaire Manila Hotel with 500 luxury rooms, suites and villas; a 1,900m2 column-free grand ballroom for 1,600 dinner guests; a 18,500m2 gaming space on two levels; 300 gaming tables and 1,200 slot machines; various F&B outlets and wellness facilities and parking space for up to 3,000 cars.

Assistant tourism secretary, Domingo Ramon Enerio III, said: “We want to highlight the concept of total entertainment where the specific products therein would target various markets such as locals and international tourists, whether its families, children and youth, senior citizens, students, PMEBs or the MICE market.”

He said the Philippines would also be promoted as a leisure and entertainment city that could compete with Macau, Malaysia and Singapore.

Enerio said the DoT’s assistance in promotions would cover “international marketing sorties of the Tourism Promotions Board, (and the) availability of brochures and other promotional materials in our 17 overseas offices and market representative offices”.

WYNDHAM Hotel Group’s inaugural Singapore properties, the 405-room Days Hotel Singapore at Zhongshan Park and the 384-room Ramada Singapore at Zhongshan Park, will be targeted chiefly at individuals and companies seeking quality and value (see TTG Asia e-Daily, July 13, 2012).

Days Hotel Singapore is scheduled to open in mid-December, while the Ramada Singapore is set to welcome its first guests in early 2013.

“Wyndham is entering the market during a rather unsettled period. The shaky global economy is compelling both businesses and leisure travellers to keep a watchful eye on budgets. Nonetheless, we don’t see this as a problem. This is an opportune time, given that both Days Hotel and Ramada offer cost effective price prepositions in their respective categories,” said Tony Cousens, the GM for both hotels.

Special weekend opening hotel rates for SIngapore residents at the Days Hotel, which sits in the economy band, are projected to be in the region of S$160 (US$127.70) per night, while the upscale Ramada will have a special weekend opening rate of between S$200 to S$300 per night. “We have been able to price the Days Hotel and Ramada at competitive rates as both properties are located on the city fringes, where naturally, operational costs are lower,” said Cousens.

He anticipates that approximately 75 per cent of the Days Hotel customer mix will comprise leisure bookings. Comparatively, 60 per cent of Ramada’s guests are expected to be holidaymakers, with the remainder deriving from corporate sources and MICE.

Key target markets for both properties include Hong Kong, China, Taiwan, India, Australia and New Zealand.

SINGAPORE Airlines (SIA) will begin daily services to Yangon from October 28 on the back of rapidly growing demand for travel to Myanmar. Together with its subsidiary SilkAir, the SIA Group will serve Yangon with 16 weekly flights.

SilkAir currently operates 16 weekly flights to Yangon with single-aisle Airbus A320-family aircraft. SIA will take over seven of these flights with larger 323-seat Boeing 777-200 aircraft, increasing weekly seat capacity by 55 per cent.

“Demand has been growing strongly for both business and leisure travel to Myanmar, and Singapore Airlines looks forward to serving the country for the first time,” said SIA executive vice president commercial, Mak Swee Wah, who is also chairman of SilkAir.

“SIA and SilkAir are constantly looking at new market opportunities, and the launch of SIA services enables us to quickly meet the growing demand for travel to this increasingly popular destination.”

SIA is the latest in the wave of international carriers launching services to Yangon. Korean Air, Dragonair, EVA Air, All Nippon Airways and Qatar Airways are all commencing flights to the city in September and October.

AIRASIA will commence daily flights between Kota Kinabalu and Davao from November 1, making it the third air link connecting Sabah and the Philippines.

Currently Cebu Pacific Air operates thrice-weekly services between Manila and Kota Kinabalu, while AirAsia offers daily Clark-Kota Kinabalu flights and SEAIR flies three weekly flights between Clark and Kota Kinabalu.

Sabah Tourism Board chairman, Tengku Zainal Adlin, said: “Direct air access to Davao will attract the high-yield business community as Davao is the (economic) and ecotourism centre for southern Philippines.”

The board’s senior marketing manager Noredah Othman believed the direct flights would attract the expatriate community working in Davao and enhance Kota Kinabalu’s appeal as a pre- and post-tour destination.

To entice weekend travellers, Trek Finder Tours general manager Auther J Kimon will develop 3D2N packages and 2D1N packages to promote nature-based activities in Sabah, including the Kinabalu Park and Weston River cruise.