Singapore, Malaysia to resume essential cross-border travel
A reciprocal green lane (RGL) and a periodic commuting arrangement (PCA) will be established between Singapore and Malaysia to cater to the needs of different groups of cross-border travellers.
The decision was made following a telephone call between Singapore prime minister Lee Hsien Loong and Malaysian prime minister Muhyiddin Yassin on June 26, in which the two leaders discussed the gradual and phased resumption of cross-border travel between both countries, said a press statement by the Ministry of Foreign Affairs (MFA) on Saturday.
The reciprocal green lane (RGL) will facilitate cross-border travel for essential business and official purposes between both countries. Travellers would have to adhere to a set of Covid-19 prevention and public health measures, which are under discussion and will have to be mutually agreed upon by both countries.
The PCA will allow Singapore and Malaysia residents who hold long-term immigration passes for business and work purposes in the other country to periodically return to their home countries for short-term home leave. They will be able to return home for leave after spending at least three consecutive months in their country of work, and they will be allowed to re-enter their country of work after their home leave.
During the call, Lee reiterated Singapore’s commitment to address the needs of Singaporeans and Malaysians who were previously commuting between both countries. Both parties agreed that any bilateral arrangement would have to include mutually agreed public health protocols, to ensure the public health and safety of citizens on both sides, while taking into account the medical resources available in both countries.
The operational details of the RGL and PCA are currently being worked out, said MFA in the statement. In addition, both countries will continue discussions on other proposals to gradually facilitate more cross-border movement of people, so as to ensure a stable recovery by both Singapore and Malaysia from the Covid-19 situation.
Malaysia’s foreign minister, Hishamuddin Hussein, was quoted by the Sunday Star as saying that the reopening will be carried out in stages, with the groups of people divided into four categories.
He elaborated: “The first category is professionals, including those involved in business. The second category refers to Malaysians working and living in Singapore, estimated to be about 20,000 to 25,000 people.”
“The third category comprises Malaysians working in Singapore who commute from Johor on a daily basis, and the fourth category refers to Malaysian and Singapore citizens in general.”
Currently, government discussions are focused on the first two categories, he said, adding that the other two are more complex and that both sides need to ensure that they have the capacity to run Covid-19 tests for them.
Singapore has always been the top generator of inbound tourist arrivals to Malaysia. Last year, Malaysia attracted some 26.1 million foreign tourists, of which 10.16 million were from Singapore.
AirAsia sees rebound in flight demand with record-breaking sales
AirAsia sold a record-breaking 41,000 seats in a single day last Tuesday, in what is the airline’s highest post-hibernation sale day since restarting domestic flights in May, signifying a strong rebound in demand for air travel.
The LCC airline’s website experienced traffic growth of 170 per cent, according to a press release. Some of the most popular routes booked include Kota Kinabalu and Kuching to Kuala Lumpur for Malaysia, Bangkok to Chiang Mai and Hat Yai for Thailand, Manila to Puerto Princesa and Davao for the Philippines, Delhi to Srinagar and Bengaluru to Hyderabad for India, and Jakarta to Denpasar and Medan for Indonesia.
AirAsia Group’s CEO, Tony Fernandes, said in a statement that the airline is encouraged by this positive trend, foreseeing that it will continue in the coming weeks. He added: “We are aiming to increase our flight frequencies to around 50 per cent of our pre-Covid operations and we look forward to resuming all domestic routes in the coming weeks and months to cater to the increasing demand.”
Currently, AirAsia is operating 152 daily flights across the region. “We look forward to the reopening of international borders in recognition of the fact that air transport provides the connectivity that is essential for the resumption of economic activities and the global recovery efforts,” said Fernandes.
He added that the AirAsia Unlimited Pass, which was recently rolled out in Malaysia to stimulate domestic travel in the country, “sold out quickly” and that the pass will be launched in other markets soon.
Nokscoot bites the dust
Thailand’s LCC NokScoot Airlines will enter liquidation as the crisis for the troubled airline deepened due to the coronavirus pandemic.
NokScoot, which is a joint venture between Singapore Airlines’ (SIA) Scoot and Thailand’s Nok Air, said that the difficulties it faced in growing the network coupled with the stiff competition left it unable to record a full-year profit since its inception in 2014. Challenges arising from the Covid-19 pandemic compounded the airline’s woes, it added.
While weighing alternatives, Scoot said it offered to sell its 49 per cent stake in NokScoot to Nok Air for a nominal sum of one baht (US$0.032). However, it was not taken up.
NokScoot’s shareholders will hold a general meeting in about two weeks to discuss the dissolution, Scoot said in a media release.
Rumours were rife that the airline was terminating operations after it announced a massive layoff. NokScoot was among eight airlines in Thailand seeking 24 billion baht in soft loans from the government to tide through the coronavirus crisis, according to the Bangkok Post.
The carrier will return three aircraft from its five-jet fleet to SIA by month-end, said the report.
Singapore begins gradual reopening of attractions
Some 13 attractions in Singapore will be allowed to progressively resume operations from July 1, as the city-state enters the second phase of post-Circuit Breaker lockdown.
They include some of the destination’s iconic tourist draws like the Singapore Zoo, Jurong Bird Park, Flower Dome at Gardens by the Bay, ArtScience Museum, Universal Studios Singapore, and the two casinos at Resorts World Sentosa (RWS) and Marina Bay Sands.
Other attractions and domestic tour operators are welcome to apply with the Singapore Tourism Board (STB) for reopening permits by way of proposals that demonstrate effective implementation of safe management measures with customers and workers in mind. These measures must be tailored to reduce Covid-19 transmission risks. Operations may only resume after approvals are granted by the Ministry of Trade and Industry (MTI).
The 13 attractions to lead the resumption of attractions operations have been cleared for reopening by both MTI and STB.
As a further precautionary measure, most attractions will be restricted to no more than 25 per cent of their operating capacity at any one time, for a start. Access to casinos will be limited to existing casino members and annual levy holders.
Concurrently, STB will step up its efforts to ensure that more tourism businesses, including attractions, apply for the SG Clean national certification of excellence in sanitation and hygiene.
Detailing its safety and hygiene measures, RWS said in a statement that its operations are guided by three principals: Safe Entry, which is upheld by effective systems for guest screening and contact tracing; Safe Experience, which is upheld by a promise to ensure peace of mind for all visitors; and Safe Environment, which is upheld by the highest level of hygiene and sanitisation.
It will reopen its Universal Studios Singapore theme park and S.E.A Aquarium four days a week, with staggered operating hours in the initial phase. All guests will need to make online advanced reservation with specified date of visit.
Shows and street entertainment at Universal Studios Singapore will not be available during the initial phase of reopening.
Welcoming new norms in travel with “Pan Pacific Cares”
Brought to you by Pan Pacific Hotels Group
Redefining ‘Clean Stays’ standards in meeting new travel norms
Pan Pacific Hotels Group (PPHG) has redefined guests’ stay experience with “Pan Pacific Cares”. The Group has partnered Diversey – hygiene and infection prevention solutions leader – in implementing protocols that adhere to World Health Organisation (WHO) guidelines.
Moving forward, properties will utilise cleaning and infection prevention solutions such as Oxivir and Virex II 256, which are healthcare grade disinfectants certified and approved by the US Environmental Protection Agency to be effective against Covid-19.
Electrostatic sprayers will be introduced to apply the Oxivir disinfectant, which uses active ingredients that break down into water and oxygen after use, an environmentally friendly solution subscribing to PPHG’s sustainable belief. The prescribed solution does not contain any respiratory irritants and is therefore, not expected to pose a health hazard.
Additional protocols such as increasing cleaning frequency by five folds, enhanced two-step cleaning and disinfecting processes, and laundering linens at 70 degree Celsius have been rolled out across all Group properties.
All properties will undergo stringent training by Diversey’s experts in ensuring they comply with the elevated processes and methodology.
Hotels will also use Ultronic UV torches to inspect all disinfected and sanitised guestrooms for further assurance.
Re-engineering processes to boost travel confidence
PPHG has been proactive in implementing recommended protocols such as safe distancing, thermal scanning, using safe entry codes for contact tracing, wearing of masks and provision of hand sanitisers, as the pandemic gained traction in complying further with WHO guidelines.
Properties will also be implementing contactless check-in and check-out, as well as advocating contactless payments and introduce new measures to its dining operations.
All PPHG guests will be given “Pan Pacific Care Packs” comprising hand sanitisers, surgical masks and disinfectant wipes upon check-in. A wellness channel will also be launching soon in guestrooms, featuring exercise routines such as pilates, barre and yoga, as well as self-pampering massage guides to unwind from travel stresses.
For more information on the initiative, see infographics below or visit: www.panpacific.com/panpacificcares
TTG Travel Awards, Asia-Pacific travel trade’s most celebrated event, returns for its 31st edition this year to honour the industry’s finest and brightest. Click here to vote for Pan Pacific Hotel Group, winner of “Best Regional Hotel Chain” for three consecutive years from 2017-2019.
WTTC issues guidelines for safe travels
WTTC has laid out its new guidelines to ensure safe and seamless travel, including rapid testing and tracing, opening travel corridors, and implementing a risk assessment framework.
The guidelines will ensure that the travel sector is provided with an extensive framework to help governments and private business work in collaboration to create aligned testing and contact tracing programmes.
The initiative is part of WTTC’s Safe and Seamless Traveller Journey, which aims to enable safe travels to rebuild global consumer confidence.
The council has outlined five critical calls to action for global governments to aid the sector’s recovery amid Covid-19. They are:
- Support quick and reliable tests as a critical path to ensure public health and a rapid testing and contact tracing strategy to help contain the spread of the virus
- Multilateral collaboration and adherence to internationally recognised guidelines to enable “approved travellers” to travel across to multiple destinations using a single process and risk assessment framework
- Support “travel bubbles” or “tourism corridors” between low-risk Covid-19 areas/zones or countries based on recognised criteria on what constitutes low-, medium- and high-risk, so as to limit testing requirements for travellers and support the industry’s recovery
- Remove blanket travel advisories and recommendations against non-essential international travel as this prevents insurance protection for travellers, as countries reopen
- Support a global standard of traveller health insurance, or at least minimum requirements, defined with private sector insurance companies
WTTC said that the new guidelines were produced after extensive consultation with various stakeholders, including its members, health experts and government officials, and according to WHO and CDC guidance, and ICAO CART Take off guidance.
Qantas cuts 6,000 jobs to weather Covid-19 crisis
Qantas will ground 100 aircraft for up to a year, cut 6,000 jobs, and seek to raise A$1.9 billion (US$1.3 billion) in fresh equity, as part of a three-year post-Covid recovery plan.
The 6,000 roles made redundant will be across all parts of the business. In the meantime, the group will also continue the stand down for 15,000 employees, until flying returns.
The plan will also see the early retirement of the group’s six remaining 747s, and the grounding of up to 100 aircraft for up to 12 months or longer, including most of its international fleet. The majority are expected to ultimately go back in to service but some leased aircraft may be returned as they fall due, said the airline in a statement. As well, A321neo and 787-9 fleet deliveries for Qantas and Jetstar have been deferred.
In addition, the group will seek to raise up to A$1.9 billion, comprising of a fully underwritten institutional placement to raise approximately A$1,360 million and a non-underwritten share purchase plan for eligible existing shareholders to participate of up to A$500 million.
Proceeds will be used to strengthen the airline’s balance sheet and position it to capitalise on opportunities aligned with its strategy.
The plan targets benefits of A$15 billion over three years, in line with reduced flying activity including fuel consumption savings, and delivering A$1 billion per annum in ongoing cost savings from the 2023 financial year through productivity improvements across the group.
Qantas Group CEO Alan Joyce said: “The Qantas Group entered this crisis in a better position than most airlines and we have some of the best prospects for recovery, especially in the domestic market, but it will take years before international flying returns to what it was. We have to position ourselves for several years where revenue will be much lower. And that means becoming a smaller airline in the short-term.”
Phuket takes first step towards tourism recovery with new campaign
The Phuket Hotels Association (PHA) and global hospitality branding agency Quo have joined forces to launch a large-scale destination relaunch marketing campaign aimed at reviving travel to Phuket.
Entitled Imagine Phuket, the destination campaign – in English and Thai – focuses on the sights, sounds, feelings, tastes and emotions that Phuket evokes for an international traveller. A fresh logo and video have also been unveiled.
The initiative also enables the island’s hotels to come together, where each property will be given the resources to personalise videos, images and logos with their own branding, creating their own version of the campaign’s message. Seventy-five hotels have signed up to participate.
“The Imagine Phuket video, and integrated social media campaign, are designed to drive emotion,” said Quo’s CEO David Keen. “We know that there is a massive desire to travel again, both locally and internationally. Our intent is to bring the story back to Phuket.”
PHA hopes that these efforts go towards helping to restore the island’s tourism industry and save jobs, as the destination has been one of the hardest-hit in Thailand.
In a press conference on June 10, Phuket Chamber of Commerce’s president Thanusak Phungdet told reporters that Covid-19 cost the island over 120 billion baht (US$3.9 million) in lost income, with losses expected by to reach 280 billion baht by the end of the year if the situation doesn’t improve.
But despite unemployment increasing by over 34 per cent year-on-year, according to local reports, island residents remain resilient.
Phuket welcomed over 10 million arrivals last year, and in the months after reopening, Phuket’s hotel industry aims to attract a sizeable chunk of Thailand’s 20 million domestic travellers. International travellers will have to wait, but the country has indicated it plans to reopen this summer.
Cathay Pacific lands US$3.5 billion bailout
The Hong Kong government has thrown a HK$27.3 billion (US$3.5 billion) lifeline to the city’s flag carrier Cathay Pacific, as part of a HK$39 billion recapitalisation plan aimed at keeping the airline afloat amid the pandemic that has thrown global airlines into a tailspin.
The sum includes the issuance of HK$19.5 billion in preference shares with detachable warrants, a HK$11.7 billion rights issue, and a HK$7.8 billion bridge loan facility.
Cathay Pacific began talks with the government to seek support for the aviation sector through an investment in the Cathay Group two months ago, according to a Legislative Council paper. The airline’s flights have been drastically cut by 97 per cent in recent months, as compared to pre-Covid-19 levels.
Both Cathay Pacific and Cathay Dragon only carried a total of 18,473 passengers last month. In the first five months of 2020, the number of passengers carried fell by 71.2 per cent, against a 59.5 per cent decrease in capacity as compared to the same period for 2019.
To the Hong Kong International Airport (HKIA), the failure of the Cathay Group to sustain its operations would mean an immediate loss of the network that it has established through the airline group over many decades. The network includes 49 passenger points and 14 all-cargo points served by Cathay Pacific exclusively pre-Covid-19.
Without the air connectivity, demand for the HKIA’s transit/transfer services, which contributed 29 per cent of the airport’s passengers in 2019, is expected to drop significantly.
In the absence of a well-established home-based flag carrier, reliance on non-local carriers will not be sustainable for the long-term development of HKIA, as the bases and foci of these carriers may not be in alignment with the best longer-term interests of Hong Kong.
Apart from refinancing, Cathay Pacific has confirmed that a submission has been made to the government’s US$10.3 billion Employment Subsidy Fund announced in March. This may benefit its 27,000 employees in Hong Kong and cover the maximum wage subsidy per employee at HK$9,000 per month for six months. During this period, employers cannot lay off staff.
Hailing the government’s bailout of Cathay Pacific, industry players called for the strengthening of the partnership between the airline and travel agents along the path to recovery.
Gray Line Tours managing director, Michael Wu, expressed hopes that the airline can provide travel agents with greater ticketing flexibility, as currently, if the group ticket fare quota is exceeded, agents have to pay the rest of the fare at FIT rate. He also urged the airline to sell tickets through agents rather than selling directly to consumers via its online platform.
“We’d like Cathay Pacific to treat us as business partners. The city needs more visitors and nobody can stand alone to fight for survival. We stakeholders should work together in this tough time,” he added.
Travel Industry Council’s chairman, Jason Wong, also urged Cathay Pacific to lend greater support to the travel trade, including traditional agents, noting that the use of public funds to bail out the airline means that there will be a greater expectation on the airline to fulfil its social responsibility.
The Society of IATA Passenger Agents’ chairman, Tommy Tam, opined that Cathay Pacific should mend its relationship with agents. “Before the pandemic, Cathay Pacific pushed NDC, direct marketing and loyalty programmes that were not favourable to agents’ business.”
He added that the airline should segment its products clearly, with Cathay Pacific serving the high-yield, longhaul market; while Cathay Dragon and HK Express, the low yield or tour package groups.
The Travel Corporation (TTC) will introduce a dedicated wellbeing director on every Trafalgar, Insight Vacations and Luxury Gold guided holiday, as part of its Covid-19-related hygiene and physical distancing measures.
The “industry-first” initiative, which excludes tours in Australia and New Zealand, will begin with the launch of its domestic trips this year.
The wellbeing director will be with clients throughout their entire journey to ensure adherence to all the latest health and safety protocols.
He or she will address any guest concerns relating to wellbeing measures and will provide personal support with luggage management, ensuring all handles are sanitised during loading and unloading of guests’ belongings.
In addition, the wellbeing director will be responsible for the quality assurance of all hotels, venues and suppliers during each journey, ensuring that they meet the established criteria of TTC, WTTC and WHO wellbeing protocol standards.