RIAU provincial government-owned airline Riau Air, which launched thrice-weekly commercial services between capital city Pekanbaru and Malacca last weekend, is aiming to connect cities within the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) as it grows its fleet.

Riau governor Rusli Zainal was quoted by the media as saying: “We are planning to add at least 10 more aircraft by the end of this year to enable (Riau Air) to serve not only domestic routes but also intra-regional city routes.”

The airline currently has one leased Boeing 737-500 124-seat aircraft which plies the Pekanbaru-Malacca, Pekanbaru-Tanjung Pinang and Tanjung Pinang-Natuna routes.

Pekanbaru-Malacca used to be served on a charter basis with the Fokker 50, and the airline is targeting a 70 per cent load factor in the first year with this new commercial service.

Riau Air president director Teguh Triyanto told TTG Asia e-Daily: “We would like to position Riau Air as a bridge between cities in the IMT-GT area. We are considering Subang and Ipoh as our next destinations in Malaysia, and a number of cities in Thailand.”

Grand Anoa Tours and Travel Pekanbaru tour manager Samsul Basar said: “I think the potential inbound market from Malacca is the meeting and incentive market as Pekanbaru has the facilities, apart from business and golf.”

FIREFLY’S Boeing 737-800 aircraft will commence services to South-east Asian destinations out of Kuala Lumpur International Airport (KLIA) in the third quarter of 2012.

Managing director Eddy Leong said the airline was looking at routes that were within six hours’ flight time.

The carrier, which has been operating with ATR 72-500 turboprops out of Subang Airport, will launch twice-daily flights from KLIA to Kota Kinabalu and Kuching this Saturday. This will increase to thrice daily for Kota Kinabalu and four times daily for Kuching from January 24.

Firefly would have 13 B737-800s by 2012, up from two now, and by 2015, this would grow to 30 or more.

At a recent press conference, Leong guaranteed airfares would be at least 10 per cent lower than that of its rival, AirAsia.

A random check on the websites of both airlines for airfares from Kuala
Lumpur to Kuching showed that AirAsia’s lowest fare for February 8 was RM223 (US$73), whereas Firefly’s lowest fare was RM148.95.

PYOTravel.com senior manager, operations management, John Chan said pricing was the most important factor for attracting leisure tourists, while business travellers were influenced by flight times.

Leong added that Firefly had plans to set up secondary bases for its B737-800 aircraft in Penang, Kota Kinabalu and Kuching as this would help improve rotation times and schedules.

SINGAPORE will get its very own MICE coalition, which aims to band together key industry stakeholders to create a MICE-friendly environment.

The brainchild of Edward Liu, the Singapore Association of Convention and Exhibition Organisers and Suppliers’ (SACEOS) outgoing president, the proposed entity was given the green light by SACEOS’ executive committee on January 7.

Liu, who will not be standing for re-election this year, told TTG Asia e-Daily that the MICE alliance was something he wanted to create before leaving SACEOS.

The idea was to gather key travel trade associations such as the Singapore Hotel Association, Association of Singapore Attractions and National Association of Travel Agents Singapore (NATAS), said Liu.

This would help create a strong MICE eco-system, and hopefully see a collective effort to winning and executing events in Singapore.

NATAS CEO, Robert Khoo, said Singapore’s first MICE alliance was different from other alliances in the past, that were formed to bid for or manage specific events.

Said Khoo: “There is strength in numbers, especially in winning projects. As many NATAS members are involved in MICE, it is natural that NATAS will support this alliance wholeheartedly.”

CHANGI Airport’s tactic of promoting Singapore as a regional air hub is paying dividends, with nine carriers including China’s Hainan Airlines, the Philippines’ Airphil Express and Malaysia’s Berjaya Air commencing operations at the republic’s national airport in 2010.

The Changi Airport Growth Initiative, launched January last year (TTG Asia e-Daily, February 1, 2010), was introduced as an incentive package to promote the airport’s connectivity and drive up passenger and freight traffic.

This year, the initiative is set to add even more airlines to Changi’s growing network, with Air Macau beginning twice-weekly passenger services to Macau from January 3, and Hong Kong Airlines launching its first passenger flight from Changi on Saturday.

From January to November last year, Changi Airport handled 38 million passengers, an increase of 13.8 per cent over the same period in 2009.

THE INDIAN government has waived travel requirements for foreign nationals to Manipur, Mizoram and Nagaland for the first time in 52 years, in an effort to boost tourism in these North-east Indian states.

Previously, foreign visitors had to pay US$50 for a permit to enter the states, and were restricted to travelling in groups of four over a limited number of days.

“The permit system was seen as an impediment,” said resident commissioner of Manipur Bhawan Rakesh Ranjan. “Now that it has been lifted, we expect to see many tourists.”

MALAYSIA Homestay Cooperative and Malaysia Homestay Association have jointly launched an online portal, MalaysiaHomestays.com, which allows individual and group travellers to book and receive instant confirmation of their reservations.

The portal, which went live January 2, is in line with Malaysia tourism ministry and stakeholder plans this year to extend promotions beyond Asia, and reach out to long-haul markets such as the Netherlands, UK and Germany in Europe and Australia.

Tourism Malaysia will start promoting the homestay packages at international travel markets such as ITB Berlin and World Travel Market this year.

– Read the full report, TTG Asia, January 14 issue

INDONESIA’s new brand campaign Wonderful Indonesia, launched January 1 (TTG Asia e-Daily, January 4), is catchy and faithfully describes what Indonesia has to offer, but critically needs to be backed by improved infrastructure, says the local travel trade.

“Indonesia needs to have wonderful infrastructure too,” said Pacto managing director Susilowani Daud. “Look at the congested airports, the immigration, taxi services, just to name a couple of examples. These crucially need to be addressed.”

Indonesia Hotel and Restaurant Association board member Carla Parengkuan agreed, saying: “We need to improve public services and the transportation system to make it more convenient for travellers.”

The travel trade also had their views on how best to utilise the campaign.

“The general perception of Indonesia is that of a cheap destination,” said Bali Hotels Association chairman Jean-Charles Le Coz. “The government should use the brand to market Indonesia as a quality destination, and educate the market that we have quality products to offer at reasonable prices.”

The government should also place more focus on regional and medium-haul markets like ASEAN, China, Korea and Australia, Le Coz added.

– Read the full report, TTG Asia, January 14 issue

THE NEWLY-opened Radisson Suites Bangkok Sukhumvit is looking to strengthen relationships with travel agents to gain a firm foothold in the market.

General manager Mark Bulmer said the 150-key hotel, which opened November 1 and was already running at peak occupancy last week, received the majority of its bookings from online travel agents and its own reservation system.

Business from traditional travel agents and direct corporate accounts had also started to pick up, he added.

“We will be aggressive with rates, but we will not drop rates to gain business,” said Bulmer.

Bulmer also ruled out contracting parity rate with major players to avoid being tagged as a hotel for certain markets. “As a new hotel, we have to ensure that we are fair with all markets,” he explained.

The hotel is targeting an equal mix of leisure and corporate markets in its first year of operation and plans to increase the corporate mix later.

By Sirima Eamtako

VIETNAM Airlines (VNA) is pressing ahead with plans – launched last year – to become the second largest airline in South-east Asia by 2020.

VNA general director Pham Hong Minh said the flag carrier was able to exceed its 2010 target with a 34 per cent year-on-year increase in passenger numbers. Total revenue grew to an estimated 36.3 trillion Vietnamese Dong (US$1.86 billion) based on the 12.3 million passengers recorded.

The airline has been steadily increasing its regional footprint, with its induction into the SkyTeam alliance last June helping to enhance its position in international and regional markets.

Late last year, VNA launched a thrice-weekly Ho Chi Minh City-Beijing service and a daily Narita-Ho Chi Minh City-Danang flight (TTG Asia e-Daily, November 24). This comes on top of 46 Hong Kong-Danang charter flights, operating November to May.

By Luat Tran

TWO new high-speed services have been added to Seoul’s rail network, with the first a direct rail link between Incheon International Airport and downtown Seoul, and the other connecting Seoul to Chuncheon, capital of nearby Gangwon province.

The new underground airport line, at a fee of KRW13,500 (US$12) per person, can take passengers from Incheon Airport to Seoul Station, the city’s central transport terminus, in about 40 minutes, less than half the travel time of other services.

This new link comes at a time when plans are underway to revitalise the Seoul Station area, which in 2015 will see the completion of the Seoul Station Convention Centre.

This 50,000m2 venue, larger than COEX (46,400m2) – currently Seoul’s main exhibition site – will include Korea’s largest conference facility (23,000m2), a 16,000m2 exhibition space and a 3,000-seat international conference centre.

Meanwhile, Seoul’s Gyeongchun Line launched its new double-track rail service between the city’s Sangbong Station and Chuncheon on December 21.

For a fee of KRW2,600 (US$2.30), travel times between Seoul and Chuncheon have been cut down from 110 minutes to approximately 79 minutes, while a journey on the express service is even faster at 63 minutes.