AIR Australia was placed into voluntary administration earlier today after creditors discovered the airline had insufficient funds to cover basic operational expenses.

The carrier, which operates scheduled services to Brisbane, Melbourne, Perth, Derby and Port Hedland, and to international destinations such as Denpasar (Indonesia), Phuket (Thailand) and Hawaii, has been forced to suspended all services indefinitely, leaving about 4,000 passengers stranded without flights.

Qantas and Jetstar are offering fares to stranded passengers at the same price as their Air Australia tickets, while Virgin Australia said it would offer discounted tickets to passengers stuck in Denpasar, according to a report in ABC News.

These passengers were earlier asked to make their own alternative travel arrangements.

KLM Royal Dutch Airlines will offer additional flights from Singapore to Denpasar starting March 26, boosting frequency on the route from five-weekly to daily.

The Netherlands flag carrier will operate its Singapore-Denpasar services using Boeing B777-300 and B777-200 aircraft configured with 35 business-class seats, and 390 or 283 economy-class seats, respectively.

“We recognise the growing popularity of Bali as a travel destination,” said Paul Rombeek, general manager Singapore, Indonesia, Australia and New Zealand, Air France KLM.

“The introduction of daily flights to the destination will offer customers greater convenience and flexibility in planning their travel schedule.”

THE CHARTERHOUSE Causeway Bay has joined Great Hotels of the World as the only member of its classic collection in Hong Kong.

“In less than two months since our co-operation began, the hotel has been accepted by reputable consortia agents and received a few meeting and convention business leads,” said Bernard Rodrigues, general manager of The Charterhouse Causeway Bay.

“We are ready to work closely with the Great Hotels of The World in order to develop more opportunities and drive business in the corporate market.”

Great Hotels of the World provides global hotel reservation, sales and marketing services for a selection of over 250 primarily independent hotels and resorts worldwide.

TRAVEL insurance will become compulsory for all outbound tour packages sold by members of the Malaysian Association of Tour & Travel Agents (MATTA), starting March 1.

“There have been many cases of travel companies becoming insolvent or absconding with the money of consumers,” said MATTA president, Mohd Khalid Harun.

“That is why MATTA has been pushing to make travel insurance mandatory, so that the interests of consumers are looked after.”

The new ruling follows the launch of MATTA’s outbound travel insurance coverage scheme yesterday, as well as the appointment of six insurance firms as official service providers.

The scheme will cover various aspects identified by MATTA, such as claims for medical, hospitalisation and treatment expenses, emergency medical evacuation and repatriation, and reimbursement of deposits/full payment of air tickets and tour packages.

Also covered under the scheme are claims for repatriation of mortal remains, compassionate visitation benefits, accidental death and permanent disability.

Reporting by N. Nithiyananthan

INDONESIAN carriers are putting on a show of might at the ongoing Singapore Airshow 2012, and are splashing the cash on a range of new aircraft purchases to expand their domestic and international networks.

Garuda Indonesia bought 18 CRJ1000 NextGen aircraft from Canada’s Bombardier Aerospace, with the option for another 18. Five planes are scheduled for delivery between October and December.

Garuda president and CEO Emirsyah Satar said: “We will strengthen the Garuda network by operating the new aircraft through the Makassar, Medan and Balikpapan hubs and increasing connectivity with neighbouring cities.”

Lion Air snapped up 201 Boeing B737 MAXs and 29 B737-900ERs for a total outlay of US$22.4 billion, with rights for an additional 150 planes. First delivery is scheduled for 2017.

The deal brings the airline’s overall ledger with Boeing to 408 planes (of which 57 have been delivered), and is the largest commercial aircraft order in Boeing’s history by both dollar value and number of jets.

In addition, Lion Air forked out US$64 million on two Hawker 900XP aircraft from Wichita, Kansas-based Hawker Beechcraft Corporation, to be delivered by mid-2012, with an option for a further two, and acquired 27 ATR 72-600 turboprop planes, valued at US$610 million at list price.

According to Lion Air general affairs director Edward Sirait, the Hawker 900XP, with capacity for 11 passengers and crew, and the ability to fly six hours nonstop and take off/land on shorter runways, was perfect for Jakarta-Timika/Jayapura (Papua) or Jakarta-Hong Kong nonstop chartered operations.

The 70-seater ATR 72-600s, meanwhile, will be used by Lion Air’s regional subsidiary Wings Air on new and existing routes departing from Sumatera, Kalimantan, Sulawesi, and the Papua Islands.

TWELVE at Hengshan, branded under the Luxury Collection by Starwood Hotels and Resorts banner, will open in August in the heart of Shanghai’s former French Concession.

Marketing itself as a chic oasis in the heart of a bustling modern metropolis, the five-star, 177-room hotel will focus on the leisure and corporate FIT segment, and will also attempt to achieve a 35 per cent business share of small- to medium-sized corporate meetings.

Twelve at Hengshan’s director of sales & marketing, David Campbell, said: “Although the Shanghai market is facing the challenge of oversupply of five-star hotels, Twelve at Hengshan is located in vibrant Shanghai’s cosmopolitan, tree-lined French Quarter, and is in fact the only new five-star hotel in this area.”

The hotel will feature two restaurants and a lounge bar, a spa, and 1,303m2 of meeting space consisting of a grand ballroom, pre-function area, VIP rooms, meeting rooms and boardrooms.

Twelve at Hengshan joins other Luxury Collection-branded properties in China such as The Astor Hotel in Tianjin and The Hongta Hotel, also in Shanghai. The brand will see two more additions when The Castle Hotel, Dalian and The 1958, Suzhou open in January 2014 and January 2015, respectively.

Reporting by Patricia Wee

MALDIVES authorites have pleaded with foreign media outlets to be more objective when reporting about the political crisis in the country, saying it was beginning to affect its tourism industry.

Tourism Minister Ahmed Adheeb, who was appointed just five days after the country’s president Mohamed Nasheed was forced to resign on February 7 (TTG Asia e-Daily, February 8, 2012), said: “The situation is under control, but there have been alot of bad messages, exaggerated reports and misinformation going out through the international media. This is affecting tourism.”

According to Adheeb, visitors to the Maldives could be assured of safety due to the destination’s “one island, one resort” concept. “No tourist or hotel has been harmed in Male,” he added. “Whichever side (of the conflict) we are on, we know tourism is key and no one wants it harmed. We need to get this message across to the world.”

Regular clashes between Nasheed’s supporters and state elements, though confined to the capital Male, have already precipitated into an increasing number of cancellations from overseas markets.

Maldives Association of Tourism Industry members have so far reported some 500 cancellations, according to its secretary-general, Sim Mohamed Ibrahim.

“There is some concern, with lots of inquiries from China in particular,” he said. “Flights (from China) that are normally 80-90 per cent full are now coming in with only 60 per cent seats filled.”

David Kevan from UK-based CHIC Locations said while the company was still sending clients to the Maldives, they were actively monitoring the situation, “and without doubt it is negative destination publicity”.

Michelle Flake, contracting & marketing manager for Scaevola Travel, an inbound operator that handles the China market, said they were still getting enquiries and bookings on a daily basis.

“When clients ask me (about the situation), I tell them that as a foreigner living in the capital, I am not affected,” she said. “As for clients on a resort, unless they watch the news, they are unlikely to be aware of anything going on in the outside world.”