MALAYSIA Airlines (MAS) has increased the frequency of its Kuala Lumpur-London (Heathrow) services from three times a week to a daily, effective August 12.

The route is currently served by the airline’s two existing Airbus A380 aircraft, which are configured in a three-class layout, seating a total of 494 passengers.

MAS group CEO, Ahmad Jauhari Yahya, said: “We are also on track to providing the A380 service on the main ‘kangaroo’ route between London and Sydney, when (our) third A380 begins daily operations between Sydney and Kuala Lumpur by end November.”

MANDALA Airlines launched its maiden flight between Jakarta and Bangkok on August 10, intensifying competition on the route, which is also served by Thai Airways International, AirAsia and Garuda Indonesia.

The daily Jakarta-Bangkok flight is operated using the airline’s new Airbus A320 aircraft, which can seat up to 180 passengers.

Mandala president director, Michael Coltman, said: “The launch of Jakarta-Bangkok services is part of our plan to develop a network between Indonesia and the rest of Asia.”

The Thai capital is Mandala’s third overseas destination after Singapore and Kuala Lumpur (TTG Asia e-Daily, June 13, 2012).

MINOR Hotel Group (MHG) has added the Bundarika Villas & Suites to its portfolio in Phuket, and is planning to rebrand the resort as an Anantara in 2013.

Located on Layan Beach on Phuket’s north west coast, the resort features 77 villas and suites. MHG has also acquired five hectares of adjacent hillside land with panoramic views of the Andaman Sea, which it plans to develop into a high-end residential project.

MHG’s total investment is approximately three billion Thai baht (US$95.5 million), including funds for a refurbishment of Bundarika Villas & Suites over the coming months, before it is rebranded as Anantara Phuket Layan Resort & Spa in 2013.

Dillip Rajakarier, CEO of MHG, said: “We are very excited to announce this new addition to Minor’s portfolio and what will become a second Anantara resort in Phuket. Bundarika offers guests an exclusive retreat, and is ideal to be rebranded to an Anantara next year after renovation and an operational improvement programme.”

MHG currently operates two upscale hotels on Phuket’s Mai Khao beach, namely Anantara Phuket Villas and JW Marriott Phuket.

A SIGNIFICANT depreciation of the Indian rupee against the Malaysian ringgit has resulted in stronger outbound demand to South India, with some agencies reporting longer stays and higher budgets for clients during the ongoing Hari Raya festivities till end August.

Travel consultants interviewed by TTG Asia e-Daily said demand for the South Indian cities of Chennai, Kochi and Tiruchirappalli was especially buoyant, catalysed by low fares and direct connections provided by low-cost carriers.

Nantha Travel & Tours managing director, M Nantha Gopal, has seen a 15 per cent increase in business to Chennai, Kochi and Tiruchirapalli from mid-July till end-August. He explained that low airfares offered by budget carriers coupled with ongoing retail sales in South India were driving the growth in demand.

Topaz Travels travel consultant, Sharitha Rajendran, has seen a 20 per cent year-on-year increase in business to South India this Hari Raya season, with the average length of stay rising from four days to six days.

“There is also increased demand for four-star properties, whereas previously the trend was budget accommodation,” she added.

On the flipside, travel consultants reported slower business to Mumbai and New Delhi due to hikes – by some 15 to 20 per cent – in Malaysia Airlines airfares. The flag carrier became the sole operator on the route following AirAsia X’s exit earlier this year (TTG Asia e-Daily, January 13, 2012).

– Read more in TTG Asia, Aug 24, 2012 issue

THE TRAVEL Agents Association of India (TAAI) and Travel Agents Federation of India (TAFI) have jointly suggested a phased in implementation of IATA’s weekly remittance system, which was previously scheduled to take effect in November (TTG Asia e-Daily, June 8, 2012).

The two associations have proposed that the current fortnightly payment scheme be extended till June 30, 2013. For a one-year period thereafter, a 10-day billing cycle with a two-week credit period from the last day of sale will be implemented.

The weekly remittance system will finally be phased in from July 1, 2014 till June 30, 2015.

The joint proposal will be discussed with IATA at the upcoming World Passenger Symposium 2012 in Abu Dhabi this October.

Iqbal Mulla, president, TAAI, said: “Neither the airlines nor we can function or survive in isolation. Our discussion with the airlines has been fruitful and we are confident that our proposal will be unanimously accepted at the conference in Abu Dhabi.”

Ajay Prakash, president, TAFI, said: “The period of transition is necessary for the trade to adapt their business models around fund management and for clients to adjust to shorter credit tenure.”

INDIA’S private airlines Jet Airways, IndiGo and SpiceJet are set to add a large number of international flights by October, which are expected to ease fares. This is a long-awaited result of the Ministry of Civil Aviation’s move to cease Air India’s right of first refusal on overseas routes.

Having been granted permission for capacity increases, Jet Airways will add 14 weekly flights to Singapore, and seven each to Dhaka, Chittagong, Male and Dar-e-Salam. IndiGo will increase frequencies to Bangkok, Kathmandu and Singapore with 28 weekly flights. SpiceJet will start 35 additional weekly flights to Bangkok, Guangzhou, Hong Kong, Kabul and Male.

Iqbal Mulla, president, Travel Agents Association of India, said: “It augurs well for fliers and travel companies, as the increase in flights will offer a wider choice of itineraries and bring fares down.”

Seema Ahmed, general manager, Gainwell Travel & Leisure, said: “With the private Indian carriers entering the fray to garner a larger share of the rapidly growing aviation market, airfares are expected to rationalise and consumer confidence will rise.”

According to government sources, the three private carriers will also allocate more flights to their Middle East routes.

Out of the 63 flights that IndiGo has received permission for, 28 will go to Dubai and seven to Jeddah. SpiceJet will fly seven flights each to Dubai and Riyadh of the 49 flights it has been given a nod to. Jet Airways has received the thumbs up for 56 new flights, of which 14 will be used for Kuwait.

TURNOVER at pre-NATAS fairs over the last two weekends grew by 25 to 30 per cent over 2011, taking major travel agencies here by surprise.

The latest jump in bookings is a welcome development, given the somewhat muted performance in the second quarter and at the pre-NATAS sales at the beginning of the year (TTG Asia e-Daily, February 16, 2012).

According to travel consultants whom TTG Asia e-Daily spoke to, Europe has leapt ahead to become the leading destination for Singapore holidaymakers.

ASA Holidays’ head of marketing communications, Eileen Oh, said: “Singaporeans, being bargain hunters, tend to head where currency rates are favourable. We have seen a strong surge in the number of bookings to Europe (at our pre-NATAS fair) due to the all-time low euro against the Singapore dollar.”

Alicia Seah, CTC Travel’s senior vice-president of marketing & public relations, remarked that the rise of “affluent, experienced travellers” was another key factor driving the spike in demand for Europe.

“Having visited regional destinations, these (well-off) travellers are now looking for countries farther afield. Naturally, with the euro at a low, Europe has become the natural choice, particularly Spain and Portugal, which are reporting cheaper prices owing to the eurozone crisis,” she explained.

However, Clifford Neo, managing director for Dynasty Travel, said it was difficult to predict if this upward trend would continue into 2013, given the economic uncertainty.

“We are delighted that bookings in July grew by over 100 per cent compared to the pre-NATAS fair we held in February. Of course, we hope that this will continue, but it is a matter of wait and see,” he said.

ASA Holidays’ Oh was slightly more optimistic. “Barring any unforeseen circumstances, we should see an overall year-on-year sales growth of at least 20 per cent for 2012,” she said.

“In 2013, we feel that free-and-easy travel will continue to grow significantly, especially with additional new and/or direct routes to various destinations served by the low-cost carriers.”

CEBU Pacific (CEB) is planning to sell its entire fleet of 10 Airbus A319 aircraft to US-based Allegiant Travel Company, replacing them with brand new A320 and A330 planes.

CEB will take delivery of 15 new A320s and four A330s between now and 2014, and is also exploring the possibility of bringing forward its orders for A320s scheduled for delivery between 2015 and 2016.

The airline is slated to begin its longhaul services in the third quarter of 2013. With a range of up to 11 hours, the A330s will allow the airline to serve markets such as Australia, the Middle East, Europe and the US.

Meanwhile, the A319s will be transferred to Allegiant over a 15-month period commencing March 2013.

Lance Gokongwei, president & CEO, CEB, said: “The Airbus A319s are our oldest and smallest jet aircraft. While they have served us well for the last six years, as we have grown our business and developed new markets, the time is right to trade up to bigger, brand new Airbus A320 aircraft.”

CEB currently operates a fleet of 10 A319s, 20 A320s and eight ATR-72 500s. Between 2012 and 2021, the carrier will receive 22 more A320s and 30 A321neos.

PHM Hospitality, a member of Panorama group, has launched The BnB brand, with its flagship property under construction in Kelapa Gading, north Jakarta.

Targeted to open on Christmas Eve, The BnB Kelapa Gading will have 171 air-conditioned rooms, TV and Wi-Fi access. Its opening rate starts from Rp399,000 (US$42), including breakfast for two.

PHM Hospitality managing director, Kristian Kuntadi, said: “The difference from the rest of two-star properties in the market is that our room sizes are bigger (18m2) and with dedicated place for luggage, allowing guests to move around freely in the room and bathroom.

“We have an all-day cafe, not just a breakfast (outlet), which will be operated by (sister coffee chain) Kaffein. (We will also have) an Internet corner, a self-check-in facility,and shuttle service to the nearby Mall of Indonesia, Mal Kelapa Gading and ITC Cempaka Mas.”

The hotel will also have five meeting rooms with capacity between five and 25 seats.

Kristian explained that Kelapa Gading was a good business and leisure location. “It showcases how an economy hotel with modern design and facilities can be developed in a prime location, which we call ‘urban budget’,” he said.

PHM Hospitality first revealed it was developing new hotel brands at the start of the year (TTG Asia e-Daily, January 17, 2012 and TTG Asia e-Daily, February 21, 2012). Also due to launch by year-end is its three-star premium themed hotel brand, Alaia. It will debut on Canggu Echo Beach in Bali.

AirAsia X, the longhaul affiliate of AirAsia, is investing US$500 million to lease six Airbus A330-300 aircraft, scheduled for delivery over the next two years.

It signed a letter of intent with International Lease Finance Corporation (ILFC) yesterday on a 10-year lease term for the six aircraft, four of which will be delivered next year and the remaining two in 2014.

These six aircraft, coupled with deliveries of eight A330-300 aircraft from Airbus within the next two years, will see AirAsia X’s fleet size increase from the present 11 to 25 in 2014.

AirAsia X CEO, Azran Osman-Rani, said the new aircraft ordered would be deployed to serve its core markets of Australia, China, Taiwan, South Korea and Japan. The airline will increase frequencies on some existing routes and introduce new routes between Kuala Lumpur and these countries.

“We don’t want to be overtaken by others,” he added.

This is the first time that AirAsia X is leasing from ILFC, a wholly owned subsidiary of American International Group, Inc.