MALAYSIA Airlines (MAS) and AirAsia yesterday inked several MoUs to enhance mutual cooperation, even as the share swap deal between the two carriers was abruptly called off.

Azman Mokhtar, managing director of Khazanah Nasional, MAS’ majority shareholder, said: “The cross holding of shares was intended to better align the economic interests on the part of the (airlines’) major shareholders, Khazanah and Tune Air. After eight months, however, our assessment is that the cross holding of shares has become a distraction to efforts to turn round MAS and win stakeholders’ support for collaboration.”

Moving forward, MAS and AirAsia have agreed to unwind the share swap deal, and have instead entered into a supplemental collaboration agreement to explore mutual collaboration in joint procurement and aircraft component maintenance, support and repair services, an extension to the comprehensive collaboration framework agreed last August.

“The (new agreement) will focus on specific areas of collaboration while continuing to comply with all relevant anti-trust laws. It is also part of the response to meet challenges brought about by the ASEAN Open Skies policy, which comes into effect in 2015,” said MAS and AirAsia in separate statements.

MAS group CEO, Ahmad Jauhari Yahya, said: “Collaboration is a game-changer in our plan to build a sustainable business for the future. We will continue to drive these collaborations with AirAsia and AirAsia X, as it will enable MAS to exploit potential synergies and efficiency gains.”

Meanwhile, AirAsia’s Tony Fernandes and Kamarudin Meranun have resigned from MAS board, while MAS’ Mohamed Azman Yahya has stepped down from the AirAsia board.

Reporting by N. Nithiyananthan

DETERMINED to cement its status as a top international tourism destination by 2020, China’s Hainan province is making moves to grow its infrastructure and flight connectivity to support the expected increase in domestic and international arrivals.

Speaking at press conference in Singapore yesterday, Luo Shixiang, deputy secretary general, Hainan province said two intersecting expressways cutting through the centre of Hainan Island would be constructed, linking its north and south.

In addition, the existing hi-speed railway in the east will be extended to connect the entire perimeter of the island. Two new airports will also be built in the south and east, with the latter serving the existing and planned MICE infrastructure in Boao.

To bolster international arrivals, the Hainan government recently granted third, fourth and fifth aviation rights to all foreign carriers, allowing them to operate from their home ports to Hainan, and onward to other destinations, without restriction.

Luo said: “Hainan is the only province in China that has granted foreign airlines third, fourth and fifth aviation rights. Foreign carriers are also permitted to establish operation bases in Hainan. Simultaneously, Hainan has eased visa restrictions since 2010, and nationals from 26 countries, if they travel in groups of at least five, can travel into Hainan visa-free.”

In keeping with its open skies policy, the Hainan government has formalised an extension of Jetstar Asia’s Haikou-Singapore flights to Perth. Once operational, the extended service is expected to increase traffic flow from Australia to Hainan and vice versa, via a two-hour transit in Singapore.

Luo said: “The Jetstar extension is just one of many initiatives which will help us to reach out to the Australian leisure market, which is a priority. Simultaneously, it will make travelling to Australia more convenient for the Chinese.”

Over 30 million tourists flooded Hainan in 2011, with the bulk arriving from mainland China. Between 2010 and 2011, tourism revenue jumped by 25 per cent to RMB32 billion (US$4.3 billion).

NIKKI Beach is poised to expand its Asian footprint by opening a beach resort and club in Phuket in 4Q2013. The group’s inaugural foray into the region saw it launch a Koh Samui beach club in 2009.

The Nikki Beach Club and Nikki Beach Hotel & Spa Phuket, nestled in the enclave of Bang Thao, will comprise a five-star hotel with 151 luxurious suites, and 23 villas featuring private pools and gardens.

Other hotels and beach clubs in Bali, Langkawi and Hainan Island, and an extension of the group’s hotel concept to Koh Samui are on the drawing board. Singapore is set to host a Nikki Beach Club, but no specific site has been earmarked thus far.

Michael Penrod, son of Nikki Beach’s founder Jack Penrod, told TTG Asia e-Daily that there was “simply no limit to where Nikki Beach could go and grow in Asia”.

“India and Hong Kong, alongside Thailand and Singapore, where sizeable pockets of our ideal (highly affluent) clientele reside, are in our sights. In fact, clients from these countries have told us time and time again that they want more Nikki Beach properties closer to home,” he said.

Penrod added that the Nikki Beach concept would be tweaked to suit Asian preferences. “For instance, we plan to integrate Asian dishes into our F&B menus,” he said.

Nikki Beach is working with commercial real estate developer, The Castlewood Group Singapore, to source and develop suitable land sites, and to market properties to regional investors.

Christopher Comer, CEO, Castlewood Group said: “The market that Nikki targets is, we believe, immune to economic fluctuations. That’s why we are expecting an uptick in growth despite the uncertain economic climate.”

According to Comer, rates for the Phuket hotel are estimated to start from US$450 a night for a suite, although analysts have advised that a rate of US$730 per night is plausible during high season.

Even though construction on the hotel has not yet started, 5,700 roomnights have already been sold, he added.

THE SHARE swap deal between Malaysia Airlines (MAS) and AirAsia is off, confirming earlier rumours that a combination of union pressure, concerns over conflict of interest and the upcoming general election would force the national carrier’s hand over the issue.

Trading of MAS and AirAsia shares has been suspended to make way for an official announcement later today.

The dissolution of the comprehensive collaboration framework signed last August is likely to see AirAsia’s Tony Fernandes and Kamarudin Meranun exit the MAS board.

On the flip side, the cooperative spirit of the agreement is set to continue, with MAS and AirAsia expected to persist in collaborations on procurement, pilot training, and maintenance support and repair services, in an attempt to secure cost savings.

The carriers are expected to establish several joint venture companies to facilitate this collaboration.

Reporting by N. Nithiyananthan

AIRPHIL Express, the budget arm of Philippine Airlines, is adding Singapore and Kuala Lumpur to its regional network, which is currently limited to Hong Kong.

Starting May 17, the LCC will begin thrice-weekly services from Clark International Airport to Singapore. This will be followed by thrice-weekly flights from Manila to Kuala Lumpur from June 21. Both routes will be operated using Airbus A320 aircraft.

Airphil Express is also set to grow its Hong Kong connections. The airline will launch four-weekly flights from Clark to Hong Kong starting May 17. This comes after its recent doubling of Cebu-Hong Kong services from two to four times a week.

AIR India has signed a codeshare agreement with South Korea’s Asiana Airlines, and is in the process of finalising similar deals with Egypt Air and Air China.

Air India’s partnership with Asiana, which will see the two airlines integrating their frequent flier programmes on the codeshare routes, is part of the Indian flag carrier’s ongoing recovery efforts, and follows recent government approval of its financial restructuring plan.

Jatinder Gupta, partner, Dove Travels Amritsar said: “Air India’s codeshare flights with foreign carriers to important destinations will increase traffic for both Indian inbound and outbound markets. Increased connectivity to Seoul is good for the trade, but now Air India needs to grow capacity on important routes.”

Air India currently has codeshare arrangements with 12 other airlines including Swiss Air, Singapore Airlines, Lufthansa, South African Airways, Kuwait Airways, Air Mauritius, Austrian Airlines, Aeroflot, Sri Lankan Airlines, Ethiopian Airlines, British Midland and Turkish Airlines.

MOVENPICK Hotels & Resorts has become the latest international hotel chain to adopt a Mandarin name and logo in an attempt to woo the burgeoning Chinese market.

Conceptualised following customer research conducted across Hong Kong, Shanghai, Beijing and Guangzhou, Mövenpick will now be known within China as Rui Xiang, which translates into: “brings you enjoyment and luck with Swiss quality”.

The new branding is part of the Swiss hospitality chain’s efforts to grow its Chinese customer base, and follows similar moves by Accor, which rebranded its Grand Mercure brand in China as Mei Jue, and InterContinental Hotels Group’s launching of Hualuxe.

In addition, Mövenpick has unveiled a Mandarin website catering to Chinese-speaking guests, while its Shanghai office has appointed a vice president development, Sunny Li, to steer further expansion in China.

Mövenpick has three projects in the pipeline in China, including the 300-room Mövenpick Hotel Jiading, Shanghai and 380-room Mövenpick Resort & Spa, Phoenix Island, Sanya, both scheduled to open next year; and Mövenpick Hotel & State Guest House Chifeng, Inner Mongolia, due to open in 2015.

WEST Java Tourism Promotion Board (WJTPB) is planning to install a dedicated marketing representative in Malaysia to boost arrivals and promote other Javanese attractions beyond Bandung.

WJTPB chairman, Cecep Rukmana, said: “Malaysia is a very important market for us. In term of numbers, they are the biggest regional market for us. However, (Malaysians) are still concentrating on visiting Bandung for bulk shopping and culinary tours.”

Rukmana added that destinations such as Garut, Tasikmalaya, Cirebon and Kuningan offered an abundance of natural and cultural attractions, in addition to new hotel developments, and were thus ripe for promotions.

According to Indonesia Hotel and Restaurant Association West Java chairman, Herman Muchtar, WJTPB is cooperating with the Indonesian Embassy in Kuala Lumpur and Visit Indonesia Tourism Office (VITO) Malaysia to grow Malaysian footfalls to the region.

“Although the number of arrivals from Malaysia is the largest – 145,000 arrivals in 2010 with an estimated growth of 10 to 13 per cent last year – it is still very small compared to the potential. Our target is to achieve between 300,000 and 350,000 arrivals within the next four years,” he said.

Welcoming the initiatives, VITO Malaysia manager, Mohd Shafie Obet, said: “Having a dedicated representative will certainly help me to promote Indonesia in general, particularly West Java, better.”

BRAND USA, a public private partnership tasked with promoting international travel to the US, unveiled its first-ever global marketing campaign during last month’s International Pow Wow in Los Angeles.

The campaign, which was originally scheduled for launch at ITB Berlin 2012, showcases the diversity of experiences available in the US, inviting travellers to Discover this land, like never before.

Brand USA has adopted an integrated marketing strategy for the campaign, employing a mix of television, digital, billboard and print advertising, in addition to utilising online and social media.

Dedicated Facebook, Twitter and YouTube pages highlight country-specific promotions, while the recently revamped DiscoverAmerica.com portal functions as an information hub for planning trips.

A budget of US$12.3 million has been set aside for the first three months of the marketing blitz, which will target Japan, the UK and Canada. A second wave will target Brazil and South Korea.

According to Chris Perkins, CMO, Brand USA, there are plans to extend the marketing efforts to China and other parts of Asia over the next 12-15 months. “We will also have in-market sales representation, and will hire these partners through an RFP process,” he said.