SINGAPORE Airlines’ (SIA) flights to and from Bali are back to normal, after a number of its services to the island were cancelled or delayed yesterday due to increased volcanic activity from Mount Bromo in East Java.

“We have not heard of any cancellation or delay reports today,” said SIA spokesperson Glory Henriette.

According to a statement on SIA’s website, two flights (SQ946 and SQ947) were cancelled yesterday, while SQ948 from Singapore to Denpasar was rescheduled to depart this morning. SQ941 from Denpasar to Singapore, originally due to fly this morning, had been rescheduled to depart this afternoon.

Other carriers have not yet resumed normal services to Bali.

Cathay Pacific’s CX785 service to Denpasar yesterday was en route from Hong Kong to Bali, but was forced to return and land at Hong Kong International Airport, according to a statement on its website. The flight, originally rescheduled to depart this morning, has been further delayed and will fly tomorrow morning.

Jetstar flights today – VF541 and JQ117 from Singapore to Denpasar, and JQ116 and VF542 from Denpasar to Singapore – have been cancelled.

Meanwhile, SilkAir manager Indonesia Joseph confirmed that the carrier’s flight between Singapore and Lombok was also cancelled yesterday.

TWO Asian low-cost carriers (LCC) have placed IPOs on their to-do lists to finance future expansion plans, with increasing demand for cheaper intra-regional flights fuelling the growth.

Shanghai-based Spring Airlines is on the verge of issuing IPO, according to strategic planning department deputy manager Jonathan Hutt. “We are looking at it happening sometime this year.”

Spring Airlines, which commenced flights to Ibaraki in Japan and Hong Kong mid-last year, is looking to expand its network to include more Japanese cities, South Korea, Macau and Taiwan within the next few years.

Good demand for its twice-daily Shanghai-Hong Kong route has prompted the carrier to consider raising frequency to four flights a day.

Philippine-based LCC AirPhil Express, with Singapore its only international destination so far, is planning to issue IPO in 2013 or 2014 to fund fleet expansion and new international routes.

AirPhil Express chief executive advisor Brian Hogan said: “We will have 15 aircraft delivered by 2012 and may consider another five after that. With these new aircraft, we are planning to fly to Hong Kong, South Korea and China.”

A Kalibo-Singapore service may also be introduced by end-2011, adding to the carrier’s current flights from Cebu and Manila to Singapore.

ADDITIONAL air links between India and Thailand have Indian outbound tour operators hopeful of a spike in business to the kingdom this year.

Bangkok Airways’ new six-weekly Bangkok-Mumbai service from March 2, increasing to daily flights from March 28, will add to existing direct weekly services between Thailand and India, which grew from 125 flights in September to 138 flights in December last year.

Attributing his increase in business to Thailand to the new air links, New Delhi-based Rave Tour and Travels director Rajat Sawhney said the company expected a 10 per cent growth this year, on the back of a 10 per cent increase in 2010.

Another New Delhi operator, Starlite Destination Management director Anshuman Mitra, said the company’s 25 per cent growth in 2010, and a further 30 per cent increase expected this year, have prompted the opening of a Bangkok office in March.

However, Andhra Pradesh-based Wellfare Holiday Group director Vijay Mohan was more concerned whether Thailand would extend the tourist visa fee exemption scheme, which will end March 31.

Mohan believed numbers to Thailand would drop if the tourist visa fee for Indian nationals, which costs 1,100 rupees (US$24), is reinstated.

By Sirima Eamtako

NEWLY-opened Hansar Bangkok is offering wholesalers 30 per cent off its introductory rates until March 31.

Introductory rates at the 94-key hotel, which opened last December on Rajdamri Road, start from 4,500 baht (US$145.70).

Published rates, starting from 7,500 baht, take effect in November.

“This is reasonable, considering we are an all-suite hotel,” said general manager Manfred Ilg.

Featuring five categories of suites ranging from 59m2 to 128m2, a stay at the Hansar comes with in-room check-in, free in-room Internet access, consumption of mini-bar items, and a one-hour daily use of the boardroom.

The hotel has four F&B outlets, a spa, an outdoor swimming pool and jacuzzi, and a gym.

Ilg said the hotel was expected to end January with about 15 per cent occupancy, and that the first year’s average occupancy rate is expected to be about 48 to 50 per cent.

By Sirima Eamtako

PHUKET has officially been conferred “MICE City” status by the Thailand Convention and Exhibition Bureau (TCEB), joining Bangkok, Chiang Mai and Pattaya, which were given the status over the last two years.

Phuket governor Tri Akradecha and TCEB chairman Anusak Inthraphuvasak yesterday inked a memorandum of understanding to jointly promote and develop the MICE industry on the southern Thai island.

Tri said Phuket was ready to host more MICE events, citing the province’s developed transportation infrastructure, which is set to improve even further.

He said Phuket International Airport was being expanded to handle 12 million passengers per year by 2012, from a capacity of 6.5 million at present. There are also plans to develop an electric train system and establish more road links to nearby provinces.

Phuket has 628 hotels with 37,653 rooms in all categories, growing at a rate of 6.6 per cent per year, said Tri.

UNITED Nations World Trade Organisation affiliate member DiscoveryMICE and the Cambodian Ministry of Tourism have signed an agreement to strengthen their working alliance towards hosting the 3rd World Ecotourism Conference (WEC) 2011 in Phnom Penh.

The agreement will define the framework within which the two parties can tap and share their resources to organise the conference, which is expected to attract about 500 delegates from around the world.

Lee Choon Loong, president & CEO of DiscoveryMICE, said: “WEC is very important for promoting Cambodia as a leading ecotourism destination in the region.”

The date for the conference, themed “Charting the Future of Ecotourism in Asia”, has yet to be decided on. However, it is likely to coincide with the World Tourism Day celebrations on September 27.

AUSTRALIA-based low-cost carrier (LCC) Jetstar has acquired its 21st interline agreement through a partnership with Finland’s national carrier Finnair, and will also join the Oneworld alliance to increase its presence in Europe.

This follows the LCC’s interline agreement with Air France-KLM in June last year.

Jetstar CEO Bruce Buchanan said the deal with Finnair would increase traffic to Singapore and create a seamless ticketing proposition for European travellers heading to Asia.

Buchanan also said that joining the Oneworld alliance would help promote Jetstar to more European customers.

AIRASIA X has partnered Boston-based Optiontown to give passengers an opportunity to fly business class at a far lower fare.

The service, called Upgrade Travel Option, is available on all AirAsia X longhaul flights out of its Kuala Lumpur hub.

The opportunity for upgrade to a premium class seat is calculated based on factors including seat availability, passenger profile and previous upgrades acquired through the service, said Optiontown founder and CEO, Sachin Goel.

Goel explained that Optiontown’s Upgrade Travel Option creates a “win-win situation for all parties”, as it allows partner airlines to sell all their business and first class seats, provides travel agents an opportunity to offer value-added service to passengers, and gives passengers the chance to fly business class at as much as 75 per cent discount.

To qualify for a possible seat upgrade, passengers need to register at Optiontown’s website and pay a one-time fee, which will fluctuate according to demand.

AirAsia X is the first South-east Asian airline to partner Optiontown, which counts international airlines Air Canada, SAS Scandinavian Airlines, Spanair and Kingfisher Airlines among its portfolio.

Goel said he would be announcing new partnerships with Asian legacy carriers soon.

A BUYER’S market is emerging in the aviation industry as secondary airports woo legacy airlines and low-cost carriers (LCCs) with incentive schemes and enhanced operations.

Centre for Asia Pacific Aviation executive chairman Peter Harbison noted that airlines now have more clout when negotiating charges, as smaller airports “come up with deals because they are keen to get more clients”.

Steven Fitzgerald, Wellington Airport’s chief executive, said: “Ten years ago, airlines assumed that airport charges were non-negotiable. Now, they ask for (discounts and incentives). They can shop around.”

LCCs are far more aggressive when it comes to negotiations, Fitzgerald revealed. “Legacy carriers move capacity to predetermined routes and seek good deals, while LCCs go where the better deal is. LCCs have an idea of where they want to fly, but where they land would depend on the economics.”

According to Fitzgerald, the winners tend to be airports that have a destination base, offer incentives to carriers, and bring down airlines’ operating costs by reducing turnaround time, providing technology to facilitate work processes and assisting with marketing deals to promote some routes.

By Ollie Quiniquini

INDIA extended its visa-on-arrival (VOA) scheme on Tuesday to citizens of Indonesia and Myanmar.

The VOA scheme, first introduced in January last year (TTG Asia e-Daily, January 8, 2010) to promote tourism to the country, is also available to citizens from Japan, Singapore, Finland, Luxembourg, New Zealand, Cambodia, Laos, Vietnam and the Philippines.

The single-entry VOA facility, available in Delhi, Mumbai, Chennai and Kolkata airports, costs US$60 per person and is valid for a maximum of 30 days.

Qualified tourists can avail of the VOA a maximum of two times in a calendar year, with a minimum gap of two months between each visit. It is non-extendable and non-convertible.

A total of 6,569 tourists had used the facility between introduction and December 2010.

By Anand & Madhura Katti