GARUDA Indonesia’s LCC subsidiary, Citilink, is one step closer to being spinned off from its parent airline (TTG Asia e-Daily, August 4, 2011), having been granted a scheduled commercial airline license by Indonesia’s Ministry of Transportation.

Citilink is expected to receive its Air Operator Certificate (AOC) within the next three months, which will enable the carrier to operate independently of Garuda.

Garuda’s strategic business unit Citilink vice president, Elisa Lumbantoruan, said in a media statement: “With the issuance of the license and the AOC, Citilink will officially operate independently from Garuda.”

“This also means that Citilink will have to take various business expansions and actively participate in the national airline market,” he added.

Citilink currently operates a mix of nine Boeing 737-300 and Airbus 320 aircraft to provide connections between Jakarta, Surabaya, Denpasar, Batam, Balikpapan, Banjarmasin, Makassar and Medan.

As part of its expansion strategy, Citilink will operate a fleet consisting of one B737-400, six B737-300s and 13 A320s by year-end. The airline is scheduled to receive 25 new A320s between 2014 and 2018.

Meanwhile, new destinations earmarked for the year include Jogjakarta, Padang and Pekanbaru.

THE TAIWAN Tourism Bureau has appointed New Delhi-based Think Strawberries Luxury Travel Marketing as its marketing representative in India.

Think Strawberries, a niche marketing representation firm that promotes international travel products in India and Dubai, will be responsible for raising awareness of Taiwan as a MICE and leisure destination.

Meanwhile, the Taiwan Tourism Bureau will be organising a workshop in New Delhi on February 23 and another in Mumbai in March, to educate the Indian travel trade about the various products and destinations in Taiwan.

Several senior representatives from five leading Taiwanese DMCs, as well as Taiwanese tourism officials, will be present during the workshops. About 80 members of the Indian travel trade are expected to attend each session.

THE UNITED States has announced a series of initiatives to increase its share of the international travel market, especially from emerging economies with growing middle classes – such as China, Brazil and India.

The Secretaries of Commerce and the Interior will co-lead an interagency task force to develop a National Travel & Tourism Strategy, and coordinate with the Corporation for Travel Promotion (currently known as BrandUSA) and Tourism Policy Council to ensure private sector participation and cross-agency coordination.

The Departments of State and Homeland Security will work towards increasing non-immigrant visa processing capacity in China by 40 per cent in 2012, and are aiming for 80 per cent of these applicants to be interviewed within three weeks of receiving their application.

Other efforts include a pilot programme and rule change for visa processing in China – to simplify and speed up or even waive the non-immigrant visa process for certain applicants, as well as an expansion of the Global Entry Programme, which facilitates expedited clearance for pre-approved, low-risk travellers upon arrival in the US.

In addition, Taiwan will be nominated to join the visa waiver programme, which allows participating nationals to travel to the US without a visa, for stays of 90 days or less.

Mike McCartney, president and CEO of Hawaii Tourism Authority, said: “The initiatives to increase the number of Chinese visas processed, and ensuring that visa applicants are interviewed within three weeks, are huge milestones for Chinese tourism to the US and Hawaii.”

According to McCartney, Chinese arrivals to Hawaii are expected to reach 125,394 this year, up 28 per cent over 2011. Chinese visitors spend US$380 per person per day, more than any other market, he added.

The visa waiver status for Taiwan would be another boon, said McCartney.

“Following the visa waiver programme with South Korea in 2008, arrivals from the region increased 35 per cent and have grown year-after-year,” he said. “We would anticipate seeing similar growth out of Taiwan.”

MANILA’s Ninoy Aquino International Airport (NAIA) Terminal 1 will be lowering airport taxes for all international travellers from PHP750 (US$17.40) to PHP550 by February 1, and has kickstarted long overdue renovations worth a reported PHP 1.16 billion.

The Manila International Airport Authority (MIAA) will also scrap the PHP200 security facility upgrade tax imposed since February 2007, while the renovation funds will be spent on structural retrofitting of the terminal building, landscaping, and upgraded facilities such as more immigration counters and restroom amenities.

More than one-third of the funds will be spent on the construction of a rapid entry taxiway aimed at decreasing flight congestion, allowing up to 40-50 flights per hour.

Emy Malate, vice president of marketing at Image Travel & Tours Corp said: “(The lower taxes) are good news since it lowers overall travel costs.”

She added: “What we are looking forward to hearing about is the transfer of international flights from Terminal 1 to 3, which is much more convenient for visitor sendoff and welcoming.”

Meanwhile, MIAA general manager Jose Angel Honrado confirmed last week that PIATCO, the entity overseeing construction of NAIA Terminal 3 together with German firm Fraport, had decided to drop its US$565 million lawsuit against the Philippine government. Honrado said the development should “pave the way for full commercial operations at NAIA Terminal 3”.

Many commercial airlines operating in the Philippines and represented by the Board of Airline Representatives have long clamoured for a transfer to the new Terminal 3 from Terminal 1, which according to the Department of Tourism is operating at 66 per cent capacity, compared to Terminal 1’s 162 per cent.