Analysis for South Pacific

Malindo shakes up Perth market with low fares and South/Southeast Asia connections

14 March, 2017

Malindo Air’s Kuala Lumpur-Perth service, which has been operating since Nov-2015, has been an experiment of sorts for the Lion Group in Australia. Lion previously never operated any services to Australia but has long held aspirations to offer several routes to Australia from both Indonesia and Malaysia as well as potentially launch a domestic Australian airline.

InterContinental Sydney plans AUD200 million renovation as demand in the Sydney accommodation market remains solid.

27 February, 2017

InterContinental Hotel Group and Mulpha Australia Ltd have recently announced (22-Feb-2017) a proposed major renovation of the InterContinental Sydney hotel which is expected to exceed AUD200 million.

Qantas unveils its new 787-9 premium economy seat: a high quality sensible upgrade if not that revolutionary.

23 February, 2017

Qantas has unveiled its new premium economy seat, which will debut on the airline’s fleet of Boeing 787-9 aircraft from Oct-2017.

Premium Economy on the 787-9 Dreamliner will feature a separate cabin of 28 seats, configured in a two-three-two layout.

Forecasting growth at Badgerys Creek, the airport that everybody needs and (almost) nobody wants

22 February, 2017

Sydney’s second airport is notable for being probably the only topic on which there has been multi-party agreement for nearly five decades – that is, consistently to do nothing.

Jetstar wins NZ government travel contract, but will still have to battle Air NZ

21 February, 2017

Jetstar has been included in New Zealand’s All-of-Government Air Travel Services panel for the first time, and hopes to pick up a slice of the lucrative NZD220 million annual market. But all eyes are now on Air New Zealand, which didn’t make it onto the panel and is still in negotiations with the Ministry of Business Innovation and Employment.

The panel for the 10-year supply of air services to the New Zealand Government and all its agencies, commencing on 01-Mar-2017, consists of:

Cathay Pacific to Christchurch: contentious Air New Zealand JV as Cathay seeks greater "agility"

21 February, 2017

As Cathay Pacific is being forced to undergo a competitive metamorphosis, it is exploring all options. The latest example is an expected announcement of a new Cathay Pacific route from Hong Kong to Christchurch in New Zealand's South Island. The service is expected to be seasonal (for the New Zealand summer), and is only Cathay's second seasonal long haul route after the Jan-2017 announcement of northern summer service to Barcelona.

New Zealand is a small network component for Cathay but one of its last strongholds, due to a joint venture with Air New Zealand. The New Zealand government reluctantly extended approval for the JV despite Cathay and Air NZ reneging on an offer to use it to link Hong Kong with Christchurch, as well as Auckland. This would thereby have extended the JV to benefit more of New Zealand – a sensitive local matter based on the assertion that Auckland was receiving disproportionate air service benefit.

International tourist arrivals increase 11% year on year with Asia leading that growth

16 February, 2017

Tourism Australia has reported 8.3 million international arrivals to Australia in 2016, an increase of 11% year-on-year.

Pajamas on planes: popular with passengers (not just politicians)

15 February, 2017

Sleep: something most long-haul passengers prioritise. Whether it’s lie-flat beds, luxury bedding, pre-flight dining or dine-on-demand: all these products are designed to help long haul travelers maximize sleep and comfort.

Pajamas have now become an essential part of this ‘comfort formula’ for the airlines. They’ve also become, like amenity kits, a useful branding exercise and tool for cross promotion between an airline and designers looking for a captive audience.

Trump’s “terrorist” ban slows business travel

14 February, 2017

Australian business travellers are not directly affected by US President Donald Trump’s executive order banning travel to the United States from seven Muslim-majority countries. But industry leaders and business travel representative groups are concerned about the uncertainty unleashed by the ban and its impact on corporate travel.

According to the Australian Department of Foreign Affairs, US officials have assured the Australian Government that Australian passport holders (“regardless of country of birth, nationality or whether they hold another passport”) are not affected by the US Executive Order on Protecting the Nation from Foreign Terrorist Entry into the United States.

As more people fly globally, China remains the backbone of local growth

13 February, 2017

International airline passenger traffic was up strongly again in 2016, according to international airline representative body IATA’s 2016 traffic report.

Global passenger demand rose 6.3% compared to 2015 with the number of seats available for sale growing roughly the same at 6.2%. Dec-2016 was a particularly good result with passenger demand rising 8.8% internationally. Growth in demand for that month outstripped supply 4:3 meaning that planes were fuller.

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