SILKAIR TO FLY SINGAPORE – KOH SAMUI
Singapore-based SilkAir is to inaugurate flights between Singapore Changi and Koh Samui in September, becoming the fifth carrier to operate flights to the popular Thai resort island. The airline will introduce a three times weekly schedule from September 27 using a two-class Airbus A319 and will co-operate with Independent Thai carrier Bangkok Airways. The latter already offers a daily service on the route and currently dominates traffic from Koh Samui with an 88.0 per cent share of the capacity there. The two airlines will introduce a codeshare arrangement which will cover the new flight as well as Bangkok Airways’ existing link. An estimated 48,000 O&D passengers travelled between the two destinations in the past year. Although traffic has slipped 4.8 per cent on the previous 12 months, yields have strengthened with the average fare rising from $123 to $131 each way. SilkAir already serves Phuket and Chiang Mai from its Changi airport hub and is moving to tap new traffic opportunities on Thailand's second-largest island, which is especially popular among Westerners. It already co-operates with Bangkok Airways on these two flights and will introduce a new marketing arrangement on flights to Koh Samui from Bangkok, Chiang Mai and Phuket.
MASWINGS EYES INTERNATIONAL ROUTES
MASwings, the regional division of Malaysia Airlines, is set to launch international services, according to its Chief Executive Officer and Chairman Tengku Azmil Zahruddin, also Managing Director of its parent company. The airline currently focuses on flying rural air services in East Malaysia but has applied for Government approval to expand to Brunei and Indonesia, expanding away from its current markets in Sabah and Sarawak. The new flights to Bandar Seri Begawan and Pontianak are earmarked for an October launch, subject to approval from the Transport Ministry and according to MASwings will help establish it as a community airline across the greater Brunei-Indonesia-Malaysia-Philippines-East Asean Growth Area (BIMP-EAGA) region rather than just in its home market. MASwings is understood to be interested in flying to Bandar Seri Begawan from Kota Kinabalu and to Pontianak from Kuching. The route to Brunei is not currently served, but the proposed service to Indonesia is already operated three times weekly by Batavia Air using a Boeing 737-300.
CHINA EASTERN INCREASES SHANGHAI – SINGAPORE FREQUENCIES
China Eastern Airlines is to introduce a fourth daily flight between Shanghai Pu Dong – Singapore Changi this winter as it attempts to increase its share of this competitive market. The carrier handled an estimated 324,000 O&D passengers on the route in the past year, a 33 per cent share of the total market. Singapore Airlines dominates with a 60 per cent share of the total 971,000 passengers, operating five flights per day. The revised schedule will enable China Eastern to offer passengers greater flexibility and it will hope to boost its yield on the route. This has slipped from an average one-way fare of $528 to $484 in the past year. This is considerably less than the average fares of Singapore Airlines which have actually increased from $556 to $562 in the same period. However, the reduced fares did enable China Eastern to increase its market penetration boosting its share of the traffic by 3 per cent from the 30 per cent in record in the previous 12 months. The additional flight will be introduced from October 30 and will be operated by an Airbus A320. At the same time, China Eastern will also switch one of its other three daily flights from a Boeing 767-300ER to an Airbus A300-600.
WELLINGTON AIRPORT BACKS REVISED GOVERNMENT STRATEGY
Wellington International Airport has given its full support to the New Zealand Government’s plans to negotiate improved air services agreements with countries in East Asia and South America. The country’s Associate Transport Minister Nathan Guy revealed last week that improving links with these two regions was an important step in encouraging stronger tourism and business ties with two of the fastest growing regions in the world. "Inter-government air service agreements are the first step before airlines can operate services to other countries. New Zealand already has around 48 relationships governed by similar agreements, and we want to see these improved and the number increased," he said. "We are looking to remove restrictions on current agreements, and begin negotiations with other countries to create new agreements. These agreements will give airlines greater freedom and certainty for future planning." Wellington International Airport, the third largest facility in New Zealand has been quick to support the new government stance, highlighting that capacity between some markets is already constrained by existing capacity agreements. For example, China Southern Airlines has now exhausted all capacity between China and New Zealand after increasing its Guangzhou – Auckland flight to a daily schedule. “Given a route like this is worth $150M to the New Zealand economy, it is crucial that the Government’s policy is directed at encouraging expansion,” said Steven Fitzgerald, Chief Executive Officer, Wellington Airport. “We are constantly pursuing opportunities with airlines to increase and develop new routes. International airlines have many airports, regions and countries vying for their new capacity, and any barriers that create delay or uncertainty can materially reduce the likelihood of new services. Wellington Airport is targeting long-haul services, which will have huge benefits for travellers and the region, and looks forward to working with the Government and other partners to make these services a reality,” he added.
DYNAMIC AIRWAYS TO FLY FOR HODA AIR SERVICES IN SOUTH KOREA
US charter carrier Dynamic Airways is to provide flights for South Korean tour operator Hoda Air Services between Seoul and Guam this summer using a 155-seat McDonnell Douglas MD-88. The company, a subsidiary of Dynamic Aviation, a leading provider of innovative aviation solutions to government and commercial organizations worldwide, will provide capacity for the tour operator for the next three years. It will initially offer four flights per week between Seoul and Guam, with plans to increase the frequency of flights later in the year. “We are extremely pleased to have the opportunity to support Hoda Air Services with quality jet charter services,” said Michael Stoltzfus, President and Chief Executive Officer, Dynamic Airways. “This contract represents a significant milestone for our organisation, as it will support our opportunities to bring quality aviation solutions throughout Asia, including additional work with tour operators and General Sales Agents.”
FIREFLY TO OPEN KUALA LUMPUR - LANGKAWI FLIGHT
Firefly, the wholly-owned subsidiary of Malaysia Airlines, has confirmed that it will inaugurate a three times daily service between Kuala Lumpur and Langkawi from December 1. The route is already operated up to five times daily by its parent carrier, although it is currently unclear if it will reduce its own schedules once Firefly enters the market. The region’s largest low-cost carrier AirAsia also serves the route with seven flights per day. An estimated 990,000 O&D passengers travelled between Kuala Lumpur and Langkawi in the past year, a market that has remained fairly stable over the past 12 months after a period of strong growth. AirAsia currently dominates the route with a 75 per cent share and is seeing its proportion grow steadily year-upon-year. The airline’s success on the route can be attributed to its low fares. Its average one-way ticket costs $64, almost a half the $115 fare being charged by Malaysia Airlines and the latter will hope to be able to compete more effectively through its subsidiary operation which has a much lower cost structure. A full codeshare will also be implemented between Firefly and Malaysia Airlines which will enable passengers to connect directly with the national carrier’s international flights. “The codeshare agreement permits passengers with onward journey on Firefly to enjoy the same benefits they had enjoyed on Malaysia Airlines such as meals on board and the same checked baggage allowance as Malaysia Airlines as we honour the carrier’s General Conditions of Carriage,” said Eddy Leong, Managing Director, Firefly. The local carrier already offers a twice daily service to Langkawi from its main base at Sultan Abdul Aziz Shah Airport in Subang, Selangor, the former gateway to the Malaysian capital, where it operates over 250 weekly turboprop links to 12 destinations. It also serves Langkawi twice daily from its base at Penang International Airport. Both routes are operated using ATR 72-500 turboprops, but Firefly plans to use its largest aircraft on its new service. “Market research has shown there is good demand for this sector. Thus, we are utilising our biggest aircraft, B737-800 which has a seating capacity of 189,” said Eddy Leong.
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