NOK AIR COMPETES WITH AIRASIA ON BANGKOK – NARATHIWAT
Thai budget carrier Nok Air has inaugurated flights to the southern province of Narathiwat, ending the monopoly of low-cost carrier Thai AirAsia on the route. The airline inaugurated flights on June 3 and is not just targeting passengers from Narathiwat but the neighbouring provinces of Pattani and Yala and as far afield as the Malaysian border city of Kota Baru. At the moment most travellers in the reason have to travel to Hat Yai in Songkhla in connect to the capital and other destinations, but Nok Air’s Chief Executive Patee Sarasin believes that Narathiwat can become an alternative gateway to the region. An estimated 61,000 O&D passengers travelled on the route in the past year, up 7.0 per cent on the previous year. Nok Air’s flights are operating just 20 minutes before Thai Air Asia’s departures but are serving Don Mueang Airport in the Thai capital rather than Suvarnabhumi. The airline is understood to be evaluating a second daily flight subject to demand, allowing greater flexibility for business travellers. Alongside regular business and leisure travellers many Thai Muslims live in the country’s southernmost provinces and could also use the new services for their pilgrimage to Saudi Arabia for the Hajj.
CHINA EASTERN EXPANDS NETWORK TO TAIWAN
China Eastern Airlines is set to introduce flights to Taipei Taoyuan from the Chinese city of Wuxi, taking advantage of recent changes to the bilaterial air services agreement between China and Taiwan. The carrier already provides flights to Taipei from Hefei, Kunming, Nanchang, Nanjing, Ningbo, Qingdao, Shanghai Pudong, Shijiazhuang, Taiyuan, Wuhan and Xi'an but from June 27 it plans to add the twice weekly schedule from Wuxi. Wuxi is a small historic city in Jiangsu province and is sometimes referred to as ‘Little Shanghai’ due to its proximity to the fast expanding city, a major international gateway into the country. Wuxi Airport was only opened in 2004 and is located 7 miles (12 km) northwest of the city, in Shuofang. China Eastern Airlines is the largest operator with flights to Changsha, Chengdu, Chongqing, Guangzhou, Guiyang, Hong Kong, Shenzhen and Zhangjiajie, while Air China, China Southern, China United, Shenzhen Airlines, Sichuan Airlines and Tianjin Airlines also have a presence. Shenzhen Airlines also offers the only current scheduled international flights with links to Osaka and Tokyo in Japan.
AIRPHIL EXPRESS ENTERS CEBU – HONG KONG MARKET
Filipino low-cost carrier airphil Express is to expand its international activities with a new daily link between Cebu and Hong Kong from July 28. The airline primarily focuses on the domestic market but does already offer a route to Singapore from Mactan-Cebu International Airport, one of four bases it has in the country. The route will place it into competition with the country’s largest carrier Cebu Pacific Airways and Hong Kong-based Cathay Pacific Airways, which each offer a daily service. The latter’s flights, operated using widebodied equipment, are flown under a codeshare arrangement with airphil Express’ parent company Philippine Airlines. An estimated 181,000 O&D passengers travelled on the route in the past year, with Cebu Pacific holding a 46 per cent share of this traffic and Cathay Pacific a 43 per cent share. Although demand between the two destinations has been relatively stagnant over the past five years passenger numbers increased by 13.2 per cent in the last 12 months.
TIGER AIRWAYS DROPS AUSTRALIAN DOMESTIC ROUTES
Tiger Airways says it is cutting back its flights in Australia to improve profitability and customer relations. The low-cost carrier’s routes from Melbourne Tullamarine to Mackay and Rockhampton will be suspended from August 1. According to the airline, these services have been impacted recently by rising oil prices and the recent Queensland natural disasters. “These network changes will both streamline and simplify our Australian operations, enabling us to focus on combining our low fares with improved punctuality,” said Crawford Rix, Chief Executive Officer, Tiger Airways Australia. “The changes that we are making to our flying programme will enable as to improve punctuality across our network and we are hopeful that as we grow the airline we will be able to restore services on the affected routes in the near future.” Tiger Airways is currently the only airline to offer direct services from Melbourne to Mackay and Rockhampton but has still faced strong pressure from the flights of Qantas and Virgin Australia, via other locations. On the Mackay route it dominates the market with a 47 per cent share of the 56,000 O&D passengers this past year, but on the Rockhampton link it has just a 22 per cent share of the estimated 33,000 O&D travellers. The low-cost carrier has built a 4.6 per cent share of the domestic Australian market since it launched operations in November 2007, positioning it as the fourth largest airline in the country, albeit a long way away from its larger rivals Qantas (42.2 per cent), Virgin Australia (28.3 per cent) and Jetstar Airways (19.6 per cent).
AIR CHINA BOOSTS CAPACITY ON TIANJIN – HONG KONG
Air China is to add three more weekly rotations on the Tianjin – Hong Kong route from July 1, increasing its schedule to ten flights per week. These will be operated by a mix of Classic and Next-Generation 737 models. The airline is currently the sole operator on the route, although Tianjin Airlines is planning to launch its own flights the same month that Air China boosts its frequency. The regional carrier plans to offer a daily link using an Embraer 190 although it has yet to formalise its operational schedule. In the past year, an estimated 52,000 O&D passengers travelled on the route, a link that has seen a strengthening of yields in the past 12 months. Like many markets there was a fall in average fares during the year ending March 2010 (down 3.8 per cent) but in the last 12 months these have recovered by 5.0 per cent to $293 each way, the highest they have been in the past five years.
STRATEGIC GET GREEN LIGHT FOR CHINESE EXPANSION
Australian carrier Strategic Airlines has received approval from the International Air Services Commission (IASC) to launch flights to China and will begin preparation work for the launch of flights during the second half of this year. The company now has rights to introduce links to USA and China during what will be an exciting six month period in its development. Executives at Strategic Airlines remain tight-lipped over its operational plans although it has been suggested that they are looking initially at a three times weekly link between Brisbane and either Beijing or Shanghai. It applied for 1,911 seats per week and plans to fully utilise this capacity by August 31, 2012. An estimated 1.42 million O&D passengers travelled between Australia and China in the past year, a massive 28.7 per cent growth over the previous 12 months, but there is already competition from Brisbane with China Southern Airlines offering a link to Guangzhou. Air China, China Eastern and Qantas also fly between Australia and China but don’t offering direct services from Brisbane. Strategic Airlines will also shortly confirm its plans for the US market and as predicted by The HUB earlier this year, Honolulu in Hawaii will be its first destination. Although the carrier has not made any formal announcement, it has made a supplementary filing with the US DOT detailing the Brisbane – Honolulu route with plans to launch services from September.
SINGAPORE AIRLINES AND VIRGIN AUSTRALIA AGREE ALLIANCE
Singapore Airlines and Virgin Australia have signed a landmark agreement to form a long-term commercial business alliance. The deal will see the airlines codeshare on each other’s international and domestic flights; offer reciprocal frequent flyer programme benefits and lounge access; co-ordinate schedules between Singapore and Australia and beyond to provide seamless connections and·engage in joint sales, marketing and distribution activities. The alliance will connect Singapore Airlines’ extensive international network with Virgin Australia’s wide range of Australian and Pacific destinations. Through the Singapore Airlines network, Virgin Australia customers will have access to some 70 more destinations, while through the Virgin Australia network, Singapore Airlines customers will have access to some 30 more destinations. The two airlines will now lodge an application with the relevant regulatory authorities to enable them to co-operate across a broad range of commercial functions. Approval will allow the airlines to build a deep and integrated alliance with seamless service offerings to the travelling public. “Singapore Airlines has been committed to the Australian market for more than 40 years and we are always looking for ways to serve our customers better. With regulatory approval, the partnership will enable us to offer even more choice for domestic and international air travel. Together with Virgin Australia we will provide the public with access to an enlarged network, offering a firstrate, integrated travel experience,” said Goh Choon Phong, Chief Executive Officer, Singapore Airlines. “Asia is clearly a critical market for us as we build our international alliance network. Singapore Airlines’ extensive network throughout Asia will be particularly attractive to our international business and leisure travellers and this partnership, along with our other alliances, will mean Virgin Australia can now offer truly global flight coverage,” said John Borghetti, Chief Executive Officer, Virgin Australia Group.
Related Content
