A JOINT venture agreement between Malaysia’s National Aerospace & Defence Industries and Indonesia’s Lion Group was signed this afternoon, marking the start of the formation of a new Malaysia-registered low-cost carrier.

Named Malindo Airways, the LCC will begin operations in May 2013, and will have its hub in Kuala Lumpur International Airport 2, which is also slated to open next year.

Although routes have not been confirmed, Lion Air president director, Rusdi Kirana, said Malindo Airways would fly to South-east Asia, South Asia, East Asia and within Malaysia.

Kirana added: “The airline will be positioned as a low cost carrier; pricing will be lower than AirAsia’s fares. Its differentiating features are comfort through a seat pitch of 31 inches, and the provision of inflight entertainment and Wi-Fi access.”

The airline will operate on Boeing 737 aircraft initially, and Kirana said Boeing 787 Dreamliners would be introduced to the fleet in 2015.

Malindo Airways will receive 12 aircraft a year, over the next 10 years.

IN OUR online article dated September 7, 2012, we reported that “Bangkok Airways will commence a daily service to Vientiane, marking a comeback to the Lao capital after a hiatus of four years”. In fact, the new service is Bangkok Airways’ inaugural flight to Vientiane as the carrier has never flown to the Lao capital before.

We are sorry for the error.

TTG Asia e-Daily has revised the article as such:

From December 1, Bangkok Airways will commence a daily service to Vientiane, marking the carrier’s first-ever connection to the Lao capital.

Using Airbus A319 aircraft, the outbound flight will depart from Bangkok’s Suvarnabhumi International Airport at 08.15 and arrive in Vientiane at 09.30. The return flight will leave Vientiane at 10.10 and land in Bangkok at 11.25.

Other carriers serving the Bangkok-Vientiane sector include Thai Airways International, Lao Airlines and Lao Central Airlines.

HOTEL rates in Koh Samui saw a drop in the first half of this year, although unprecedented occupancies resulted in an overall growth in RevPAR.

Market-wide room occupancy in Koh Samui peaked in the first half of 2012, the best six months since the global financial crisis of 2008.

Data collated by C9 Hotelworks recorded 67 per cent occupancy for 1H2012, compared to 59 per cent for the same period last year, driving average RevPAR up by 12 per cent in 1H2012, despite a one per cent decline in ADR to US$144.

“Many resorts have dropped rates because the market is very competitive with a lot of big brands coming in,” said Manish Jha, general manager, Anantara Bophut Resort & Spa, Koh Samui.

“We realised that by dropping rates and creating value, we could generate volume. ADR at my resort fell five per cent year-on-year, and as a result occupancy increased from 71 per cent in the first half of 2011 to 83 per cent in 2012. As a result, RevPAR surged 16 per cent,” he added.

The upscale segment reported 73 per cent occupancy, followed by midscale and luxury hotels at 69 per cent and 59 per cent respectively. The budget segment lagged behind at 52 per cent, suffering from a lack of budget airline access to the island.

Increased arrivals, partially driven by improved connectivity between the island and key regional hubs of Singapore, Malaysia and Hong Kong, also boosted occupancy, rising 16 per cent year-on-year. International arrivals jumped 25 per cent, with strong growth from traditional European markets, pushing up the average length of stay from 4.8 to 5.5 days.

Bill Barnett, managing director, C9 Hotelworks, said growth was sustainable in the long term.

“The development pipeline is limited to just a few properties over the coming years, and air connectivity is likely to improve. Meanwhile arrivals should continue to grow, lured by branded properties and destination fatigue in longhaul markets to places like Bali and Phuket,” he explained.

Jha shared his optimism, but was more cautious in his assessment. “Obviously 16 per cent growth in arrivals cannot hold, and this will probably drop to around four per cent growth through the next year.”

BEST Western International celebrated its 10th year in Asia with a four-day event in Kuala Lumpur, Malaysia.

The chain held its 8th Asian & Middle Eastern Members’ Meeting, themed The Great Golden 10, from August 27-30 at Best Western’s new luxury hotel, Best Western Premier Dua Sentral, Best Western’s new Malaysian flagship hotel.

Delegates took part in a series of day trips, talks, evening soirees and social events, topping off the four-day event with a gala dinner and award ceremony at Dua Sentral’s fusion restaurant, Hugo’s On 6.

Best Western set up its regional headquarters in Bangkok in 2001 to oversee operations in Asia and the Middle East. The chain now has 205 hotels across 24 countries under three distinct brands.

AIR India is planning direct flights to Sydney from November, having taken delivery of its first Boeing 787 Dreamliner last Saturday.

The first of 27 B787s, the new aircraft arrived at New Delhi from Seattle.

The B787 is expected to operate on major domestic routes like Delhi-Mumbai. Thereafter, Air India intends to commence daily flights to New York, Melbourne and Osaka from Mumbai, Chennai and New Delhi. It is also looking at converting their existing flights to Chicago and New York into non-stop direct flights.

Chairman of Air India, Rohit Nandan, said: “The 787 will allow us to open new routes.”

Air India sources stated that the Australia route is top priority as it is a very lucrative one. An estimated 150,000 Indians will travel to Australia in 2012, and the volume is expected to rise to 500,000 in the next decade or so.

The Mumbai-Sydney flight route will kick off in November. The new route is part of the airline’s turnaround plan as it was recently given a new lease of life with substantial funding by the Indian government.

The airline expects to take delivery of two more 259-seater 787s by early October and the remaining 24 by 2016, which will all be used on longhaul routes.

Anil Punjabi, chairman-east, Travel Agents Federation of India and managing director of AR-ES Travels said: “Air India needs to keep costs at the minimum and leverage the advantages of the 787 to the maximum in order to start making profits. It has the experience to do well on longhaul routes.”

*Our writer was informed by an Air India source that Melbourne is the only Australian destination that Air India flies to but this was incorrect. Air India does not fly to Australia currently. We have removed the error from our original article.

THE European boutique hotel-style Azamara Journey and Azamara Quest will undergo renovations in 2012 and 2013.

Azamara Quest will enter drydock in Cadiz, Spain on November 7. Once renovations are finished, the ship will take off on a 13-night Madeira and Canary Islands voyage, followed by a four-night Spanish and African voyage, before making a trans-Atlantic voyage to Rio De Janeiro to begin its South America season.

Azamara Journey will dock at Singapore’s Sembawang Shipyard on January 6, 2013. On January 13, it will set sail on a 13-night Indonesian round-trip as part of its Asia season.

The 694-guest ships, which offer a combination of 347 suits and staterooms, will receive an extensive facelift and feature a new dark blue hull.

Enhancements include carpets, upholstery, mattresses, veranda furniture for suites and staterooms, the pool and sun loungers.

Upgrades have also been made to the ships’ two specialty dining areas. The first, Aqualina, will boast a new caviar and champagne bar, while the new Chef’s Table concept has three separate wine degustation menus on offer – Italian, French and Californian.

TRAVELPORT has initiated a programme to streamline the uploading of hotel negotiated rates, which will help to instill more confidence in travel consultants when serving their customers according to those rates.

Already operational in the US and Canada, it will be deployed globally later in the year.

According to research by CWT Solutions Group, some 25 per cent of hotel negotiated rates are uploaded incorrectly, if uploaded at all, at initial audit.

Some reasons stated were, the hotel’s failure to load data into the Property Management System or Central Reservation System; missing or inaccurate code information, with many outdated or duplicated, and the multitude of processes for uploading data.

To remedy the situation, Travelport is conducting rate audits with hotel suppliers and removing the outdated and duplicated codes within its system, while streamlining the uploading process for hotels and designing and implementating new processes.

The new process has already seen supplier compliance rise from below 80 per cent to more than 97 per cent.

Keith Harrison, global head, hospitality suppliers, Travelport, said: “Some of the positive changes we’ve introduced include building a feedback process, asking hotel chains to put service level agreements in place with local properties and increasing the frequency of updates in the Travelport GDS channel.”

AN INAUGURAL new travel expo set to kick off in 1Q2014, Wonders of the World (WOW) aims to link the industry with some 600 million potential travellers in the world’s largest marketplace – the Internet.

Developed by 3rd Planet, a proprietor of interactive online travel experiences, the event allows the tourism industry to participate by reconstructing destinations in an interactive 3D format online. Consumers will then be able to virtually visit and explore a country’s key attractions from their computers or tablets.

3rd Planet CEO, Terence Mak, said: “WOW is a global initiative that will change the way consumers look and understand destinations. It provides the tourism industry with a new and exciting new way to market destinations and encourages the unique nuances of each country or destination through immersive new media. It will also inspire and spearhead global partnerships with the entire tourism industry and lower the cost of online marketing.”

To enable users to have a hassle-free and uninterrupted experience, 3rd Planet will be linking hands with local top-tier broadband operators in each country to roll out the high-speed event.

“Due to the partnership with broadband operators and device manufacturers, WOW will also forge new ways for the tourism industry to reach out to affluent consumers as well as tap the capabilities of the latest consumer devices, such as tablets like iPads and Android tablets,” Mak said.

WEST Java Tourism Promotion Board established last Saturday an office in Kuala Lumpur to raise awareness of tourism destinations beyond Bandung. It has also appointed Helmi Abdul Razak as its marketing manager (see TTG Asia e-Daily, May 2, 2012).

The Board’s executive director, Hilwan Saleh, said: “Many Malaysians only know about Bandung. But there are other interesting places to visit such as Tasikmalaya, Garut and its surroundings.

“By setting up a promotion office in Kuala Lumpur, we hope to see a five to 10 per cent annual increase in visitors, and we hope to capture more of the MICE market from Malaysia. We also hope to attract repeat visitors to West Java to visit these places and to venture beyond Bandung.”

Malaysia’s PYO Travel senior manager, customer support, John Chan, said: “We welcomed the setting up of an office here. The travel industry has always been focusing on primary gateway capital cities. The new office will spotlight secondary and out-of-the-way destinations that have never been on the radar. A local office will also improve the knowledge of travel consultants and support them with promotional literature.”

Bandung receives an average of 12,000 Malaysian visitors monthly, which makes Malaysia the biggest regional market to West Java.

During the West Java Tourism Exchange conference earlier this year, Indonesia Hotel and Restaurant Association West Java chairman, Herman Muchtar, said the aim was to secure 300,000 to 350,000 arrivals from Malaysia over the next four years.

West Java Tourism Promotion Board also plans to set up an office in Singapore soon.