Tourism Indochina: AirAsia Causes Concern for Vietnam Airlines

Tourism Indochina: AirAsia Causes Concern for Vietnam Airlines

AirAsia Berhad is a Malaysian-based low-cost airline. AirAsia is Asia's largest low-fare, no-frills airline and a pioneer of low-cost travel in Asia. AirAsia group operates scheduled domestic and international flights to over 400 destinations spanning 25 countries. Its main hub is the Low-Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport (KLIA). Its affiliate airlines Thai AirAsia and Indonesia AirAsia have hubs in Suvarnabhumi Airport and Soekarno-Hatta International Airport respectively. AirAsia's registered office is in Petaling Jaya, Selangor while its head office is located in Kuala Lumpur International Airport. Air Asia plans to open ASEAN regional headquarters in Jakarta by August or September 2011. The airline itself will maintain its headquarters in Kuala Lumpur for the time being.

AirAsia won the Skytrax World's best low-cost airline award in 2007, 2009, 2010 and 2011. It has the world's lowest operating costs at $0.035/seat-kilometre in 2010. It is also the first airline in the region to implement fully ticketless air travel system.

Vietnam Airlines Company Limited, trading as Vietnam Airlines is the national flag carrier of Vietnam. Founded in 1956 under the name Vietnam Civil Aviation, the airline was established as a state enterprise in April 1989. Vietnam Airlines is headquartered in Long Bien, Hanoi, with hubs at Noi Bai International Airport and Tan Son Nhat International Airport. The airline flies to 46 destinations in 19 countries, excluding codeshared services.

Vietnam Airlines was officially formed in 1996, after bringing together several service companies. The company is overseen by a seven-seat management board, members of which are appointed by the Vietnamese Prime Minister. Vietnam Airlines was the major stakeholder in Vietnam's second largest carrier, Jetstar Pacific Airlines, but its share has been transferred to the Ministry of Finance, then subsequently, to the State Capital Investment Corporation.

With the core activity of the airline being passenger transportation, Vietnam Airlines also earns revenue from catering and the maintenance and overhauling of aircraft through a number of its subsidiaries. The maintenance and overhauling of aircraft is handled by Vietnam Airlines Engineering Company (VAECO), while the former is performed by Noibai Catering Services Join-Stock Company and Vietnam Air Caterer, who cater airlines that use Vietnam Airlines’ hubs. The airline also controls and operates its cargo division, Vietnam Airlines Cargo, using the airline’s luggage hold on its passenger fleet, as well as a number of dedicated aircraft. Vietnam Airlines owns 100% of Vietnam Air Service Company (VASCO)—a regional airline in southern Vietnam, and 49% of Cambodia Angkor Air—the national flag carrier of Cambodia.

The airline is ranked as a 3-star airline according to the independent research consultancy firm Skytrax. Vietnam Airlines became a member of SkyTeam on 10 June 2010, making it the sole Southeast Asian carrier to join that alliance.

Tourism Indochina: AirAsia Causes Concern for Vietnam Airlines:
(Tourism Indochina:Date : 2010-03-20): AirAsia’s plan for a joint venture with a local Vietnam carrier has jolted a nervous Vietnam Airlines into action, urging the government this week to stop the move.

Last month, the Malaysian budget carrier purchased a 30 percent stake in Vietnam’s local VietJet Air. The carriers announced soon after joint venture plans for a new budget airline which was approved by the Ministry of Transport.
According to Thanh Nien Daily, VietJetAirAsia will operate both international and domestic flights starting May.

However, in a letter to Prime Minister Nguyen Tan Dung, Vietnam Airlines asked the government to prevent the venture from materialising.

The carrier said AirAsia’s stake in VietJet was only a ploy to enter the domestic market.

Vietnam Airlines said foreign carriers such as AirAsia and Jetstar were taking advantage of the government’s 30 percent cap on foreign ownership in a local airline.

It said the trend of foreign airlines coming into the country to purchase stakes in local carriers was bound to harm the local industry.

If the venture goes ahead, Vietjet AirAsia will compete directly with Jetstar Pacific, who has not raised any objection to the planned venture. Source ETB


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Tourism Indochina: Virgin Blue Orders 105 Planes

Tourism Indochina: Virgin Blue Orders 105 Planes

Virgin Australia Airlines, formerly Virgin Blue Airlines, is Australia's second-largest airline as well as the largest by fleet size to utilise the Virgin brand. Now based in Bowen Hills, Brisbane, Queensland, Australia, the airline was co-founded by British businessman Sir Richard Branson and former Virgin Blue CEO, Brett Godfrey. It was established in 2000 with two aircraft operating on a single route, and suddenly found itself catapulted to the position of Australia's second airline after the collapse of Ansett Australia in September 2001. The airline has grown to directly serve 29 cities in Australia from hubs in Brisbane, Sydney and Melbourne, using a fleet of narrow-body Boeing and Embraer jets and Airbus widebody jets.

After several years operating as a low-cost carrier it improved its services to become a so-called (self-described) "new world carrier" – essentially a business model with aspects of the "no frills" approach of low-cost carriers but offering services more in line with full-service airlines – in order to compete more effectively with Qantas in the business travel market. In 2011 it took the strategy further with new uniforms; new catering on board; new widebody aircraft to compete with Qantas on Perth – Sydney services; and the concurrent introduction of business class; together with a new livery and a renaming to Virgin Australia. Currently the airline is considered a four-star airline by research consultancy firm Skytrax.

Tourism Indochina: Virgin Blue Orders 105 Planes:
(Tourism Indochina:Date : 2010-04-02): Virgin Blue announced today its signing of an agreement with Boeing for its largest order of aircraft ever.

It has signed for up to 105 brand new 737 aircraft, completing nine months of negotiations between the carrier and the aircraft manufacturer.

The order includes 50 firm B737-800NG aircraft, with flexibility to convert to either B737-700 or B737-900, 25 additional firm delivery positions secured as options and 30 future purchase rights.

Virgin Blue did not disclose the pricing of the aircraft but said that it expected to finalise its funding arrangements for the aircraft soon.

Delivery is scheduled from June 2011 through to 2017, the carrier said.

The new aircraft is expected to replace Virgin Blue’s existing narrow body fleet, while the remainder will be deployed to new routes and boost frequency where demand dictates.

“Securing this agreement now places Virgin Blue in a strong position to prepare for steady future growth as domestic and short haul markets recover” said Virgin Blue Chief Executive, Brett Godfrey in a statement.

“It will also ensure a turnover of aircraft to maintain the youngest fleet of modern aircraft which is crucial for maintaining our commitment to on-time performance and the lowest cost base possible.”

Source ETB

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Tourism Indochina: AirAsia Tries to Pursue Venture with Vinashin

AirAsia Berhad (MYX: 5099) is a Malaysian-based low-cost airline. AirAsia is Asia's largest low-fare, no-frills airline and a pioneer of low-cost travel in Asia. AirAsia group operates scheduled domestic and international flights to over 400 destinations spanning 25 countries. Its main hub is the Low-Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport (KLIA). Its affiliate airlines Thai AirAsia and Indonesia AirAsia have hubs in Suvarnabhumi Airport and Soekarno-Hatta International Airport respectively. AirAsia's registered office is in Petaling Jaya, Selangor while its head office is located in Kuala Lumpur International Airport. Air Asia plans to open ASEAN regional headquarters in Jakarta by August or September 2011. The airline itself will maintain its headquarters in Kuala Lumpur for the time being.

Vinashin is a state-owned shipbuilding firm in Vietnam. Vinashin was one of Vietnam's leading industrial concerns, and entered into a partnership with Damen, Kongsberg, and Hyundai. Vinashin was heavily indebted, and executives have been arrested for mismanagement. but it has been claimed that further restructuring would allow debts to be repaid within a year. Vinashin folded under a debt burden of $4.5 billion in 2010;as of March 2011, it was being restructured.\

Tourism Indochina: AirAsia Tries to Pursue Venture with Vinashin

(Tourism Indochina:Date : 2007-10-28):

The Government Office issued a statement on October 16 rejecting Vinashin's proposal for expansion to the air transport market, which was submitted following the signing in Malaysia on August 31 of a letter of intent with AirAsia.

Prime Minister Nguyen Tan Dung witnessed the signing ceremony while he was in Malaysia. An AirAsia executive, who asked not to be named, told the Daily on Wednesday that the Malaysian airline was pursuing the plan to make VinaAirAsia Vietnam's second budget carrier after Pacific Airlines. AirAsia will give Vinashin full support to go ahead with the establishment of VinaAirAsia with some US$30mil in registered capital, the executive said. The planned airline will be 30% owned by AirAsia. Late last month, Chin Nyok San, head of business development at AirAsia, told the Daily that preparation was underway and that VinaAirAsia could begin service in six months' time. However, the Government has not approved the shipbuilder's proposal to expand its operations to civil aviation, meaning that the joint venture has virtually come to a dead end. The Government's refusal of Vinashin's proposal came as domestic carriers, especially Pacific, have expressed concern that VinaAirAsia could fuel a competition which they do not want. Pacific holds only 15% of Vietnam's aviation market and the rest by Vietnam Airlines and Vietnam Air Services Co. (VASCO), also under the umbrella of the national flag air carrier. Airlines and travel agencies have estimated that six million Vietnamese travel by air in Vietnam a year, and the demand would jump 20-30% this year. Civil aviation service is a conditional business though Vietnam's law allows foreign investors to own up to 49% of a joint-stock air carrier. Qantas Airways is a good example as this Australian group earlier this year acquired a 30% stake worth US$50mil in Pacific. Qantas CEO Geoff Dixon said the Australian group needed more time to restructure Pacific during his visit to Vietnam earlier this month, and this might be seen as one of the reasons for Pacific to oppose the VinaAirAsia plan. Pacific CEO Luong Hoai Nam told the Daily on Wednesday that Pacific had expressed outcry over Vinashin's planned venture with AirAsia, which earlier intended to invest in Pacific but no deal was struck. Nam explained 30% of the capital AirAsia planned for Pacific comprised tangible and intangible parts while it was difficult to evaluate the intangible assets. If the intangible assets were not included, the AirAsia investment planned to pay for Pacific's stake was much lower the offer by other investors, including Qantas. Local media quoted Lai Xuan Thanh, deputy head of the Civil Aviation Administration of Vietnam (CAAV), as saying that the authority had not received an application for VinaAirAsia. However, he noted Vietnam would license two or three airlines between now and 2010, with priority given to new locally-owned airlines rather than foreign-invested ones. The AirAsia executive said AirAsia and Vinashin had not officially proposed setting up VinaAirAsia. AirAsia operates the daily flights from Thailand's Bangkok and Malaysia's Kuala Lumpur to Hanoi and vice versa, with average seat occupancy of 80% for this year.

AirAsia has increased the number of its daily flights to and from Vietnam to 10 although it entered this market only in October 2005. It plans to launch services to HCMC some time this year. (Source: SGT)

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Tourism Indochina: Unique Opportunity for NTOs to Engage Airlines

Tourism Indochina: Unique Opportunity for NTOs to Engage Airlines

(Tourism Indochina:Date : 2008-08-28):

PATA is joining forces with Routes to host a unique new event that will help destinations successfully leverage airline and airport relationships. To take place in Kuala Lumpur, Malaysia, on October 12, the inaugural Tourism and Air Services Development Summit will attract the leaders of national and regional tourism offices (NTOs) from around the world. PATA member NTO chiefs can attend for free.

"The summit is a wonderful opportunity for NTOs to explore new ways of working with airports to influence airlines in their route planning," said PATA Vice President -- Operations Michael Yates. "Airline planners will speak candidly about what they expect from destinations to help them make sound commercial decisions about network development."

The day after the summit, NTO chiefs can participate in the Routes Leaders Forum, at which aviation leaders such as British Airways' Willie Walsh and Air Asia's Tony Fernandez will focus on the theme of sustainable growth within air transport. They can then enjoy free access to the networking village at the main Routes Forum, which is world's largest trade event for airlines and airports, expected to draw more than 3,000 delegates. And, on October 14, they can attend the annual ICAO/World Bank Civil Aviation Development Forum. While the opportunity-packed programmed is free of charge for NTO chiefs, second delegates can attend for a special fee of US$795.



Written by Ozgur Tore


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Tourism Indochina: US Airways Ranked Number One On Time Airline for 2008

(Tourism Indochina:Date : 2009-02-12):

US Airways officially became the nation’s number one on-time airline among the “Big Six” hub-and-spoke airlines for 2008 according to results released by the U.S. Department of Transportation’s (DOT) monthly Air Travel Consumer Report. For the year, 80.1 percent of US Airways’ flights arrived within 15 minutes of their published arrival time—the metric by which airlines’ on-time performance is measured by the DOT.

“The first place ranking amongst the Big Six for the year is a direct reflection of the hard work and determination of our 34,000 employees,” said US Airways Chairman and CEO, Doug Parker. “While 2008 was a very challenging year for the airline industry, our employees pulled together to deliver an amazing operational turnaround.”

Year over year, US Airways jumped from sixth to first in on-time performance among the six largest hub-and-spoke carriers (American Airlines, Continental Airlines, Delta Air Lines, Northwest Airlines and United Air Lines), achieving a 16.5 percent improvement over 2007.

“We know that time is very important to our customers and today’s report validates the importance we place on running a reliable airline. Our customers can count on us to get them where they want to go on-time,” Parker said.

And for the month of December, despite severe winter storm conditions, US Airways ranked first in on-time performance among the ten largest carriers. In 2008, the airline ranked among the top three in on-time performance nine times and finished among the top three in bag handling once, resulting in $500 in bonuses for every employee for 2008’s performance.


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Airlines lose $1.7 billion from volcanic ash

Airlines lost more than $1.7 billion in revenue during the six days after the initial eruption of the Icelandic volcano, the International Air Transport Association (IATA) estimated on Wednesday.

During the three-day period from 17-19 April, when disruptions were greatest, the lost revenues reached $400 million per day.

"At the worst, the crisis impacted 29% of global aviation and affected 1.2 million passengers a day" said Giovanni Bisignani, IATA's Director General and CEO.

"For an industry that lost $9.4 billion last year and was forecast to lose a further $2.8 billion in 2010, this crisis is devastating.

"It is hitting hardest where the carriers are in the most difficult financial situation. Europe's carriers were already expected to lose $2.2 billion this year—the largest in the industry,"

IATA is now urging airports and governments to help mitigate the financial impact on airlines.

"London Heathrow and Dubai are waiving parking fees and not charging for repositioning flights. Others airports must follow" said Bisignani.

He also requested that airports relax their rules on take-off and landing slot allocation and governments to relax bans on night flights to get passengers home as soon as possible.

The EU was also urged to ease its passenger care regulations, IATA saying it was "unfair" that airlines were held responsible to pay for hotels, meals and telephones for stranded passengers when the volcanic crisis was "completely beyond the control of airlines."

Governments were also asked to help carriers recover the cost of the disruption.

"I am the first one to say that this industry does not want or need bailouts. But this crisis is not the result of running our business badly.

"It is an extra-ordinary situation exaggerated with a poor decision-making process by national governments. The airlines could not do business normally."

Source: ETB

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