IATA, which is finalising a Vision 2050 that will turnaround a sick industry, believes Asia will be the game-changer of world aviation as the region accounts for the largest pie of the global passenger traffic (30 per cent) by 2014.

“With an increase in size comes influence and responsibility,” said IATA director-general and CEO Giovannin Bisignani at a briefing this afternoon to update the media about its Vision 2050 meeting last Saturday involving 35 strategic thinkers discussing the industry’s sustainable development.

Already this year, Asian airlines are expected to account for 50.5 per cent of global aviation’s profit forecasted at US$9.1 billion. Market capitalisation of the five largest airlines in the world also shows a shift eastward, with Air China at US$20 billion, merged Chile’s LAN and Brazil’s TAM at US$15 billion, Singapore Airlines at US$14 billion, Cathay Pacific at US$12 billion and Southern China at US$11 billion.

Bisignani believes China – and to a lesser extent, India – will “take the lead” in changing the rules of the game that were invented 65 years ago primarily with the leadership of the US and Europe. Restrictive policies and barriers to growth saw airlines making an average margin of 0.1 per cent, which he said was “the margin for a charity association, not a business”.

ASEAN was already taking regional leadership by removing barriers to market access and aiming for a Single Aviation Market by 2015, he said. “And even with the political barriers that exist, the region has also found solutions to allow multinational brands like Jetstar or Air Asia to grow. So I have great hope that Asia-Pacific will gradually take on a more vocal, proactive and positive role in driving aviation’s future,” Bisignani said.

IATA will consolidate opinions from the meeting and present the results at its next AGM in June. Four areas were discussed: an industry structure for financial sustainability, understanding the passenger of the future, aircraft and technology for the future and infrastructure for the future.

THAILAND’s Ministry of Tourism and Sports is seeking an additional 300 million baht (US$9.75 million) for the next fiscal year, starting October, to develop tourism in the country.

Permanent secretary Sombat Kuruphan said the funds would be spent on efforts including rehabilitation and development of attractions, and manpower training.

A total of 138 million baht has been earmarked so far for 21 projects across the country, including rehabilitation of four tourist sites, and development of four home-stay and community-based tourism initiatives.

The funding committee approved some 188 million baht in support of 57 projects, including rehabilitation of 19 tourist sites, for the current fiscal year.

By Sirima Eamtako

AIRLINES report a relative status quo for flights between Cambodia and Thailand, despite recent clashes between the two countries over UNESCO World Heritage Site, Preah Vihear Temple.

Only Thai Airways, which operates twice-daily on the Bangkok-Phnom Penh route, has recorded a one per cent fall in traffic this month, due to cancellations from 100 passengers scheduled to travel from Phnom Penh to Bangkok, and 40 passengers on flights from Bangkok to Phnom Penh, according to Narinthorn Prungupta, the airline’s general manager for Cambodia.

Neither Bangkok Airways, with four-daily Bangkok-Phnom Penh and five-daily Bangkok-Siem Reap services, nor Thai AirAsia, which has a daily Bangkok-Phnom Penh flight, has seen any cancellations.

Tour operators had previously reported no cancellations for bookings to both destinations (TTG Asia e-Daily, February 8).

By Steve Finch

ROYAL Caribbean Cruises has signed an agreement with shipyard Meyer Werft to build the first of its new generation of cruise ships.

The order calls for one ship to be delivered in Fall 2014, with an option for a second in Spring 2015.

Developed under the code name Project Sunshine, the 158,000 gross-registered-tons vessel will carry more than 4,100 guests, based on double occupancy. Estimated all-in cost per berth is €170,000 (US$230,074).

The new build, which promises “grand spectacular spaces to small intimate settings”, is a result of more than a year’s research and development.

GARUDA Indonesia, officially listed on the Indonesia Stock Exchange last Friday (TTG Asia e-Daily, January 13), is determined to continue its expansion plans, despite rising fuel prices threatening profitability.

On the same day as its listing, the airline signed an agreement with RBS Aviation Capital to finance four new Boeing 737-800NG aircraft — two of which have already been delivered. The other two are scheduled for arrival in 2013.

Garuda’s acting finance director Elisa Lumbantoruan told the media the carrier was still expecting double-digit revenue growth for the year, despite jet fuel prices increasing to US$118.05 per barrel last week, the highest since September 2008.

Lumbantoruan said Garuda would be able to dampen the impact of the fuel hikes with its 11 new aircraft from Boeing and Airbus due this year, which are easier to maintain and have more economical fuel consumption.

Besides, Lumbantoruan said, Garuda managed earnings of 669 billion rupiah (US$75 million) in 2008 when fuel prices were at their peak.

MALAYSIA registered 24.6 million international arrivals and tourism receipts of RM56.5 billion (US$18.5 billion) last year, the highest numbers recorded to-date, surpassing the government’s 2010 targets of 24 million arrivals and RM55 billion in tourism revenue.

Arrivals from India registered the highest growth over 2009 at 17.1 per cent, followed by South Korea (16.2 per cent), the United Arab Emirates (16 per cent), Iran (14.3 per cent) and Cambodia (12.7 per cent).

China was the only non-South-east Asian country in the top five arrival markets with 1.13 million visitors, an increase of 10.8 per cent over 2009.

Singapore maintained its position as the largest tourist-generating market for Malaysia with 13.04 million arrivals, followed by Indonesia (2.51 million), Thailand (1.46 million), China and Brunei (1.12 million).

This year, the Malaysian tourism ministry is targeting 25 million arrivals and RM60 billion in tourism receipts.

QATAR Airways’ CEO, Akbar Al Baker, has hit back at comments made by the secretary general of the Association of European Airlines about the pressures a growing prominence of Gulf carriers are placing on the global aviation industry, the same day the Doha-based airline announced plans to fly twice daily to Singapore.

Al Baker took issue with several accusations made by Ulrich Schulte-Strathaus at a recent gathering of the International Aviation Club in Washington, DC, among them an alleged “anomaly in aviation” due to the proximity of hubs in Doha, Dubai and Abu Dhabi.

The airline chief cited examples of multiple hubs in Paris, Amsterdam and London as well as Frankfurt, Zurich and Vienna.

Al Baker said comparing the aircraft order book of the Gulf airlines with that of the US carriers in the longhaul wide-body arena was also erroneous as the “backbone of the US air transport industry is domestic operations”.

“The European airlines were pioneers in a large number of areas. We in the Gulf airline community have learnt a lot from them. They should accept competition, and that the customer is in the driver’s seat,” he said.

– Read more in TTG Asia, February 25 issue

TOURISTS from mainland China are expected to spend more on leisure travel this year compared to their counterparts from Hong Kong and Taiwan, according to a report released yesterday by Hong Kong-based Travelzoo Asia Pacific.

The findings, obtained from a survey of 4,200 Travelzoo subscribers from January 4 to 12, showed that 80 per cent of mainland Chinese respondents, compared to 70 per cent from Hong Kong and 65 per cent from Taiwan, intended to increase their travel budget for 2011.

Mainland Chinese travellers said they would spend an average of US$3,780 per person, while the amounts for Hong Kong and Taiwanese travellers were US$2,670 and US$1,782 respectively.

The report revealed that ecotourism holidays, with a focus on Tibet, was the trend to watch among Chinese travellers this year. It also found that the increasingly sophisticated Chinese tourist was keen on exotic and luxury vacations at spa resorts, especially those with onsen facilities.

KUONI Travel Nederland BV has stepped forward to clarify that it did not acquire Best Tours France, adding that the French company is only acting as the sales and marketing outfit of Kuoni Best Tours Belgium.

After receiving many enquiries concerning the status of Best Tours France over the last week, operation director Jan Middelhoek said, in a letter to Thai hotels obtained by TTG Asia e-Daily: “Kuoni didn’t buy Best Tours France and this company is not bankrupt. Till today, Best Tours France is paying (its) own invoices.”

He said: “For departures from February 7 onwards, all payments to suppliers are now done by Kuoni Best Tours Belgium…all payments thus are guaranteed by Kuoni.

“The main advantage for suppliers will be that payments for French customers are also now guaranteed. It’s very important for us to have a smooth operation, with increased trust and confidence in the new Kuoni Best Tours Belgium.”

Despite unpaid debt left behind by the Belgian legal entity which Kuoni did not acquire, Dusit Thani Hua Hin general manager Victor Sukseree said the hotel continued to work with Kuoni Best Tours Belgium and had received bookings up to April.

By Sirima Eamtako