VIETNAM’s newest airline, VietJet Air, is scheduled to take off on December 25.

The fledgling low-cost carrier (LCC) received its Air Operator’s Certificate from the country’s Civil Aviation Administration last week.

The LCC will base its operations in Ho Chi Minh City, from where it will launch domestic services starting with four-daily flights to Hanoi (TTG Asia e-Daily, December 8), using a fleet of three new Airbus A320 aircraft.

VietJet Air is planning to expand its services to Danang in early 2012, and to regional destinations including Singapore, Hong Kong and Macau from middle of next year.

VietJet Air is the fifth airline to operate domestic services in Vietnam. The others are Jetstar Pacific, Vietnam Airlines, Vasco and Air Mekong.

TURKISH Airlines will slash Indian travel consultants’ commissions from five per cent to none, with effect from January 1, 2012, much to the aghast of the trade.

The airline’s general manager (India) cited the examples of several European carriers, among 16 international airlines, who recently made similar moves.

The sudden decision has stunned travel professionals, especially when it is by an airline attempting to increase its penetration in the country. Turkish Airlines plans to start flights to Hyderabad, Kolkata and Chennai, as well as develop more business to Istanbul and other destinations beyond that.

Iqbal Mulla, president of the Travel Agents Association of India, said: “We supported Turkish Airlines with their expansion in India, and they are doing well now. We will try to convince them to withdraw this disappointing decision, if not the airline and agents will suffer severe setbacks.”

Separately, Gulf Air is celebrating its 40 years in India by offering an additional commission of 10 per cent to travel consultants for a 60-day period. Including current commissions, they can now earn a total of 12.7 per cent on basic fares.

Anju Desai, vice president of Mumbai-based HMA Travel, said: “This is the way an airline can encourage the agents who support them. This will spur the agents to promote Gulf Air in a big way, and perhaps enable them to keep this commission level for a longer period.”

QANTAS should base its planned full service Asian airline in Malaysia rather than in Singapore if it is serious about gaining a foothold in the region, said AirAsia group CEO, Tony Fernandes.

Fernandes, who is in discussions with the Australian flag carrier and Malaysia Airlines about a three-way alliance (TTG Asia e-Daily, December 2), said basing the new airline in Kuala Lumpur would be the smarter option.

“Singapore is the better business hub for sure, but the majority of Singapore traffic is transit traffic – just like Dubai,” he was quoted by The Australian Financial Review as saying.

“Whether you connect in Kuala Lumpur or Singapore, the key is connectivity,” he added.

According to Fernandes, Qantas would enjoy lower overheads if it picked Kuala Lumpur as its Asian hub. “The main thing is cost savings, and avoiding wasteful competition,” he said.

Meanwhile, Fernandes refused to divulge how alliance discussions with Qantas were progressing, although he did reveal that no full mergers were being considered.

“Mergers are generally driven by a shrinking market, high cost base, or a lack of ideas about how to grow. In Asia, there is less need for that,” he explained.

THE INTERCONTINENTAL Samui Baan Taling Ngam Resort, rebranded from Baan Taling Ngam Resort & Spa earlier this year (TTG Asia e-Daily, February 10), is scheduled to open on February 1, following a 10-month US$26 million overhaul.

Elite Villa managing director Vikorn Srivikorn, also the owner of InterContinental Bangkok and Holiday Inn Bangkok, took over the resort from the defunct Lehman Brothers (Thailand) in May 2010.

The 17-year-old resort also used to run under the Mandarin Oriental and Le Meridien brands, and was previously a member of Small Luxury Hotels of the World.

In its new form, the resort will offer 79 guest residences; 12 standalone Beachfront Pool Villas complete with private sundecks, swimming pools and 24-hour butler service; seven swimming pools; a private beach with a licensed jetty; and a spa.

F&B outlets will include Air Bar, a lounge bar offering 360-degree views of the Gulf of Thailand; Flames, a beachside restaurant serving up modern European cuisine; and Amber, which will offer Thai and Asian fare through an open kitchen concept.

Opening rates for the resort’s Beachfront Pool Villas start from 17,195 baht +++ (US$550) per night, subject to service charge and applicable tax. The introductory rates will be available until March 31, 2012.

Bookings can be made online at www.intercontinental.com/samui or by contacting the resort’s reservations department: +66 (0) 7742-9100, reservations@ickohsamui.com

BUSINESS Event Sydney (BESydney) has so far managed to secure in 2012 a number of conferences, congresses and incentive programmes that will generate over 211,200 delegate days, and contribute an estimated A$191 million (US$191.5 million) to the New South Wales economy.

The events, some of which were secured by BESydney over five years ago, range from small incentive groups, to mid-sized congresses and international mega events.

“The 2012 calendar year is going to be a bumper year for the business events industry here in Sydney,” said Lyn Lewis-Smith, acting CEO of BESydney.

“With thousands of delegates spending 211,200 delegate days in our city, the economic and social legacies of these events will be substantial.”

The events are spread throughout the year, although March is looking to be a standout month with eight international events scheduled, including the 3,200-delegate USANA Asia Pacific Convention, the 1,500-delegate XVI International Symposium on Atherosclerosis, and a 1,500-delegate Tupperware Indonesia Manager’s Incentive Trip.

In total, 9,500 delegates will spend over 39,700 delegate days in Sydney in March.

THE DEAL under which China’s HNA Hotel Group was to have bought a 20 per cent stake in Spain’s NH Hoteles (TTG Asia e-Daily, December 14) has fallen through because of the current state of international markets.

NH informed the Spanish stock market regulatory body, the Comisión Nacional del Mercado de Valores (CNMV), of the development on Monday, blaming the breakdown on the “volatility and uncertainty” of global financial markets.

The value of the proposed investment, which would have made HNA the second largest stakeholder in NH, and anticipated the establishing of a joint hotel management company in China, had already been marked down from the original 431.6 million euro (US$560 million) price tag set in May, to 329.8 million euros.

HNA, the owner of Hainan Airlines, but also with its own Lucky Way International Travel Agency chain, was due to have put some of its existing properties under this new joint banner. In return, NH Hoteles was to receive favoured status for HNA customers visiting Europe.

NH said in its statement to the CNMV that the two sides were still exploring the possibility of some form of strategic alliance.

CATHAY Pacific Airways has released details of its new premium economy-class product (TTG Asia e-Daily, September 1), which will be progressively introduced on its longhaul services from March 2012, and be available for booking for flights departing from April 2012 onwards.

Cathay Pacific CEO John Slosar said: “Premium economy will be a real upgrade over economy, and passengers will get great value for a great product.”

The new premium economy class will feature a quieter, more spacious cabin than the existing economy class with between 26 and 34 seats. The seat pitch will be 38 inches – six inches more than economy class – and the seat itself will be wider and have a bigger recline.

The seat will also come with a large meal table, a cocktail table, a footrest, a 10.6-inch personal television, an in-seat power outlet, a multi-port connector for personal devices, and extra personal stowage space.

On the ground, premium economy-class passengers will enjoy priority check-in at dedicated counters, and boarding before traditional economy-class passengers. There will also be an increase in baggage allowance from 20kg to 25kg, or two pieces of baggage from 23 kg to 25kg each.

In-air service improvements include larger pillows and noise-cancelling headsets, being welcomed onboard with champagne, and an enhanced onboard meal selection.

The new premium economy cabin will be installed on all Cathay Pacific longhaul aircraft including Boeing 777-300ERs, Boeing 747-400s, Airbus A330-300s and Airbus A340-300s. The airline plans to have 87 aircraft fitted with the product by end-2013.

Premium economy will initially feature on the Sydney, Toronto and Vancouver and New York routes, followed by London, Los Angeles, San Francisco, continental Europe and other longhaul services.

THE ECONOMIC crises in Europe and the US will turn the attention of international exhibition organisers to Asia over the next few years, according to Napindo Media Ashatama president director, Herman Wiriadipoera.

Speaking at the recent 4th Indonesia MICE Outlook & Award 2011, Wiriadipoera said: “Asia’s economic situation is relatively positive. Big countries like Indonesia, China and India have become the economic barometer.”

“Organisers who used to concentrate their businesses in Europe and the US are switching to Asia, including Indonesia,” he said.

“There are a growing number—big and public listed companies from the US, Europe and Singapore who are looking either to develop partnerships, to affiliate or even to buy events.”

“I don’t need to mention names, but my company has received several offers,” he added.

Wiriadipoera said that for a successful event that has been around for around 10 years, the offer could be up to 10 times the event’s annual turnover.

“I invite my fellow exhibition organisers to look at the B2B sector more,” he said, adding that at the moment only around 10 per cent of PEOs in Indonesia were focusing on B2B events.

VIETNAM Airlines (VNA) will raise from tomorrow onwards its economy- and business-class domestic airfares by 15-20 per cent and five per cent, respectively.

VNA’s price hike follows a move by the country’s Ministry of Transport to increase the price ceiling for domestic airfares.

“It is expected that Jetstar and Air Mekong will follow with increases shortly,” said Exotissimo Travel Vietnam general manager George Ehrlich-Adam in an email to industry partners.

Ehrlich-Adam said that in order to avoid any cost increase for confirmed bookings from now leading into next year, Exotissimo would issue all domestic air tickets latest by today.

Exotissimo will add the applicable fare increase to any new invoices issued for confirmed bookings from tomorrow onwards.

By Sirima Eamtako

VIETNAM Airlines’ (VNA) new direct flights from Hanoi and Ho Chi Minh City (HCMC) to London’s Gatwick Airport, launched late last week, are expected to be a boon for the country’s inbound tourism prospects.

The flag carrier operates a Boeing 777 aircraft on the service, which departs from Hanoi on Mondays and Thursdays, and from HCMC on Tuesdays and Fridays.

Laurent Kuenzle, Asian Trails group managing director, said: “All additional air capacity to Vietnam from any carrier is most welcome, not only in view of the increase in capacity, but also with the marketing activity by the airline focusing on Vietnam, as well as the flexibility to invite tour operators, travel agents and press trips.”

Exotissimo Travel Vietnam general manager George Ehrlich-Adam said while the new VNA flights would mainly boost inbound traffic from the UK, additional seats on Turkish Airlines flights to Vietnam, as well as increased frequencies on services from France and Russia, would all contribute to hike capacity into the country.

VNA’s new UK links have also contributed business to areas outside of Hanoi and HCMC, with Furama Resort Danang’s executive assistant manager, Nguyen Duc Quynh, saying the property had seen heightened interest from many UK tour operators during the recent World Travel Market in London.

Nguyen said the property had managed to seal a deal with a UK tour operator for a total of 10 groups, each staying seven nights and taking 15 rooms, over the first six months of 2012.

By Sirima Eamtako