TTG Asia
Asia/Singapore Friday, 16th January 2026
Page 2640

AirAsia charts path from regional to global airline network

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LOW-cost brand AirAsia is morphing into a global player by connecting its shorthaul and longhaul networks, and entering into joint ventures to establish multiple hubs in key cities.

Giving the conference’s opening keynote yesterday on the changing travel landscape, AirAsia X CEO, Azran Osman Rani, said: “Traditionally LCCs said we’re just these simple regional networks; we fly people from point to point…With AirAsia X, we found there were tremendous advantages in linking up the longhaul to the shorthaul model.”

He added that a huge percentage of Australian passengers flying AirAsia X into Kuala Lumpur were taking connecting flights on AirAsia to nearby destinations such as Bangkok, and even farther north to China, South Korea and Japan.

“An LCC that doesn’t have a longhaul component will suddenly find itself at a significant disadvantage. For example, in South-east Asia, how does a standalone LCC compare to an AirAsia network which is not only capturing the market within South-east Asia but able to tap markets from Australia, North Asia and the Middle East who are also flying within the South-east Asia network.”

Closely related is AirAsia’s strategy of adopting a multi-hub model in cities across Asia, with its longhaul arm acting as a feeder. Azran said this would involve “using joint ventures as a way of bringing in partners and dealing with a lot of the regulatory issues on foreign ownership”.

– Read more in TTG Asia May 18, 2012

Where is the money in social media?

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THE ABILITY of social media to translate into profits is overhyped, said Scoot’s head of commercial, Steven Greenway, during a panel discussion at EyeforTravel’s Travel Distribution Summit Asia.

“Not a single airline has been able to co-relate how engaging consumers through social media adds to the bottom line,” said Greenway.

In addition, social media could potentially wipe out the intangible benefits it brings. “Scoot’s Facebook page, for instance, has also become a platform for customers to air their angst and complaints, which can be erroneous and highly damaging,” he said.

Grand Hyatt Singapore’s director of revenue management, Fiona Lau also pointed out that social media works better for leisure-oriented hotels rather than properties with a multi-market mix. Unlike leisure travellers who can make decisions based on recommendations, corporate travellers are “constrained by corporate travel policy that dictates where they can stay”, she added.

Greenway emphasised the relevance of social media in brand management, but concluded that it was hard to justify its use for revenue generation. “At the end of the day, someone has to pay the (advertising) bills,” he said.

Webjet to launch flight and hotel bundled deals

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WEBJET, Australia’s largest OTA, is poised to launch bundled flight and hotel packages in the second half of 2012.

The packages, which will be marketed as flash sales, will be first rolled out in New Zealand, followed by Australia, Hong Kong and Singapore respectively.

Webjet’s managing director, John Guscic, said: “The precursor to our decision (to offer these packages) lies in our committment to offer our customers value. So we experimented with daily deal offers – offering around two deals on our so-called Cheap Tuesdays. Soon enough, we observed an uptick in demand.”

The OTA adopts a cautious stance when it comes to expanding its reach, with no “immediate plans to go beyond where (it is) now”.

“For us, it’s not about accumulating large transactions. Instead, we want to build the Webjet brand (in Asia) for the long term by ensuring that we offer a value proposition that resonates with individual markets,” Guscic added.

When questioned about the reported loss in profit in Asia last year, Guscic replied: “Hong Kong and Singapore are now doing better than when we first started in Australia, and owing to the consistent level of investment received, we are optimistic that we will be successful in these markets.”

Qatar Airways to resume Yangon service

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QATAR Airways will resume service to Yangon from Doha on October 3, operating thrice-weekly flights using an Airbus A319 and A320 aircraft.

The airline will extend the service to daily from October 28 and will use a B777 aircraft in future if there is increased demand.

Under a bilateral agreement, the carrier can fly 14 times a week between the two countries.

An industry source said the resumption would enhance access between Myanmar and Europe, Africa and the Middle East

Qatar signed a bilateral agreement with Myanmar in 2004 to start operating a Doha-Yangon-Doha flight four times a week from January 2005. The service was halted in January 2008.

Flocations to go from visual meta-search to booking engine

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FLOCATIONS, a Singapore-based online travel start-up, is seeking additional capital to propel its interactive website onto the global arena.

In a presentation at the conference, Tudor Coman, one of the start-up’s four founders, demonstrated how the website automatically recognises the location of a user on an interactive map. By using the price slider, one can view flight and hotel options based on a chosen budget.

Currently, the fledgling startup derives its main source of revenue from Agoda.com’s affiliate programme. However, this is set to change.

“Monetising our wishlist function will enable businesses to offer targeted online advertising on our site. Further down the line, we hope to go the way of Groupon or Deals.com by offering flash sales.”

The website, which mainly targets shorthaul travellers within South-east Asia, has garnered around 7,000 visits a month since it was launched.

Flocations ultimately aims to transform itself into a “travel discovery and booking engine” by integrating information on local events and attractions, as well as curated content. It also intends to feature legacy carriers and not just LCCs in the future.

Said Coman: “With the interactive tools we provide, consumers will be able to create bespoke itineraries in a much shorter span of time than they do now.”

“Given that our interface is so unique, we’ve not even begun exploring the possible horizons it represents.”

Sri Lanka anticipates 10 times more cruise visitors this year

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SRI Lanka is readying itself for a surge in cruise arrivals – from 4,000 last year to more than 50,000 this year.

The country is expecting 23 to 25 cruise liners in 2012, said Indrajith Fernando, deputy director marketing, Sri Lanka Tourism Promotion Bureau. The bureau is promoting Sri Lanka by taking part in tradeshows and preparing DVDs on the country for visitors.

FTI Berlin, a liner service promoted by Diethelm Travel Sri Lanka, will bring in 4,000 tourists during the coming winter season.

Sailing from Dubai via India, FTI Berlin will make five calls at Colombo, said Abbas Esufally, chairman, Diethelm Travel Sri Lanka. Embarking and disembarking passengers — about 400 each way — will have the option of spending between three to seven days Sri Lanka, unlike other liners that usually make a one-day/night stop, he added.

Abbas said: “There is a huge (potential) for cruise liner tourism and we hope the FTI Berlin will be a catalyst for other luxury liners.”

Other luxury liners calling at Sri Lanka’s shores this year include the QE2 with 1,890 passengers from the UK, Australia, South Africa, Japan and France; the Oceania Nautica with 700 passengers; the Arcadia with 2,100 passengers from New Zealand and Brazil; and the Costa Deliziose with 2,150 passengers.

SIA posts surprise US$30 million loss in 4Q

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SINGAPORE Airlines (SIA) recorded an unexpected loss of S$38 million (US$30 million) in the fourth quarter of its 2011-2012 financial year, hurt by soaring jet fuel prices, an uncertain global economy and the cost of phasing out its last B747-400 aircraft.

The loss, the airline’s first since the second quarter of 2010, contrasted with the S$171 million profit posted by the airline a year earlier.

Group revenue rose three per cent to S$3.7 million, but was outpaced by an eight per cent increase in expenditure and fuel costs — which rose 15 per cent during the last quarter. As a result, the group reported an operating loss of S$5 million.

Analysts surveyed by Dow Jones Newswires had forecasted declining profits for SIA due to high oil prices and weak yields, but none of them predicted a loss.

In the meantime, the national carrier also reported a sharp drop in its full-year net profit, down 69 per cent to S$336 million.

Uniworld adds Italy as river cruising gains Asian interest

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UNIWORLD, The Travel Corporation’s boutique river cruise brand, has added Italy to its collection.

The 13-day Splendors of Italy itinerary combines a seven-night river cruise along the Po and the Venice Lagoon with a two-night land stay in Florence and three nights in Rome. A cruise only option, Venice and the Po River, lasting eight days is also available.

Both itineraries are scheduled to debut in Spring 2013.

Melvin Loh, senior sales manager for The Travel Corporation, said that bookings for any itinerary in the preview 2013 brochure made up to June 30 would receive an early bird discount of up to US$2,400 per couple. Travellers have to make full payment to receive the discount.

“We believe that these cruises will appeal to discerning Singaporeans who have been to Europe before who now want to tour at a leisurely place and who are keen to experience the richness of Italy,” said Loh.

The new itineraries will also be sold in Indonesia, Thailand and the Philippines via the firm’s GSAs.

New travel consultants will be offered a commission of 10 per cent if they sign up to sell Uniworld’s 2013 brochure, which will be officially launched in August.

Chan Brothers Travel product manager Tevin Ong said that river cruises offered clients an interesting alternative to touring Europe.

“However, we often find that we need to tell customers that the prices quoted are all-inclusive, and that the cruises offer good value for money to convince them to make a booking.

“Nonetheless, although this is still a relatively new product for us, we’ve noticed that once a client has been on a Uniworld cruise, they are apt to want to go again,” he said.

Costa homeports in Singapore

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COSTA Cruises, a first mover in China, has now opened an office in Singapore and, for the first time, is homeporting a ship in the city.

It will base the Costa Victoria in Singapore in November and offer 11 sailings to Malaysia and Thailand with three-night, four-night and seven-night itineraries, the shorter duration being ideal for Asians.

Costa is eyeing the Singapore cruise market and a booming regional leisure traffic to Singapore to fill the 2,394 pax ship.

“In the past, Singapore was just a port-of-call for us during winter. We have observed that in the last three to four years, Singapore has made tremendous development in tourism attractions and has become a final or true vacation destination for Asian travellers.

“For us, a home port must be a big source market and Singapore has become one,” said Leo Liu, Costa Cruises’ vice president of strategy.

Read the full report in TTG Asia, May 18, 2012

Finnair inaugurates Chongqing flights

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FINNAIR inaugurated flights to Chongqing on May 9, the first carrier to open direct services between Europe and the inland Chinese megacity.

Mika Vehviläinen, CEO of Finnair, said: “We believe Chongqing has the potential of developing into a hub for travel between Western China and Europe, both for business and leisure travellers.”

Chongqing’s population of 32 million, about the size of Austria, is expected to double over the next five years. Chinese and Western companies, especially in the electronics, automotive and chemical industries, are currently expanding their operations in Chongqing, said the airline.

Chongqing also provides convenient access to river cruises on the Jialing and Yangtze rivers, and the city is well connected to Lhasa, Xian and Kunming.

Finnair is using Airbus A330 and A340 aircraft on this route, which takes eight and a half hours.

The airline first announced its plans to fly to Chongqing last year. The new route is in line with its strategy to offer shorter connections between Asia and Europe via Helsinki.

In addition to four flights per week to Chongqing, Finnair also flies daily to Beijing, Shanghai and Hong Kong from Helsinki.

This summer, Finnair will operate 81 flights per week to 11 destinations in Asia.