Corporate Travel News For Asia

Air Niugini announced (30-May-2018) plans to launch twice weekly direct air services between Tokyo Narita and Chuuk in the Federated States of Micronesia (FSM), effective 01-Sep-2018. The route will be operated with a mix of 126-seat Boeing 737-700 and 144-seat 737-800 equipment. Air Niugini stated the route has been made possible by the signing of an new air services agreement, signed on 18/19-May-2018 between Japan, the FSM and Papua New Guinea. The agreement gives Air Niugini rights to operate between Tokyo Narita and Chuuk via Port Moresby. Air Niugini acting CEO Tahawar Durrani said since the introduction of weekly Port Moresby-Chuuk-Pohnpei service 18 months ago, there has been an increase in the number of Japanese and Australian tourists and divers, as well as business travellers on the route. Mr Durrani added that a market analysis was carried out which confirmed that further growth on the Japan route could be achieved by including a stopover at FSM. The expansion will allow PNG and FMS to be marketed to travellers not only from Japan but also from North America and Europe. The carrier's existing Port Moresby-Chuuk-Pohnpei service will continue to operate. [more - original PR - Air Niugini] [more - original PR - Tokyo Narita]

9 Air recently filed (28-May-2018) an application to CAAC Central and Southern Regional Administration to expand its business scope. Details include:

• Current business scope: Domestic air passenger and cargo services;
• Proposed business scope: Domestic (including Hong Kong, Macau and Taiwan) air passenger and cargo services and air passenger and cargo services to neighbouring countries. [more - original PR - Chinese]

Ocean Infinity confirmed (29-May-2018) its search for Malaysia Airlines flight MH370 "is shortly coming to an end". The company searched more than 112,000sqkm of ocean floor in a little over three months of operational days, exceeding the target of 25,000sqkm and almost equalling the previous 2.5 year search. Ocean Infinity CEO Oliver Plunkett said: "We sincerely hope that we will be able to again offer our services in the search for MH370 in future". [more - original PR]

South Korea's Ministry of Land, Infrastructure and Transport reported (29-May-2018) the following traffic highlights for Apr-2018:

• Passengers: 9.8 million, +12.5% year-on-year;
  • Domestic: 2.9 million, +0.5%;
  • Korean Air: 679,793, -8.8%;
  • Asiana: 562,112, +12.6%;
  • LCCs: 1.6 million, +1.0%;
    • Jeju Air: 394,368, +0.8%;
    • Air Busan: 381,488, +15.0%;
    • Jin Air: 363,953, -5.1%;
    • EasterJet: 249,386, -6.2%;
    • T'way: 245,767, -0.1%;
• International: 6.9 million, +18.4%;
  • Southeast Asia: 2.7 million, +12.6%;
  • Japan: 1.7 million, +20.6%;
  • China: 1.3 million, +43.9%;
  • Americas: 423,816, +10.4%;
  • Europe: 464,568, +8.1%;
  • Oceania: 218,782, +4.8%;
  • Others: 83,152, -1.1%;
  • By carrier:
    • Korean Air: 1.6 million, +11.6%
    • Asiana: 1.1 million, +10.9%;
    • LCCs: 1.9 million, +32.9%;
      • Jeju Air: 559,336, +31.3%;
      • Jin Air: 406,483, +18.2%;
      • T'way: 327,116, +41.1%;
      • Air Busan: 286,391, +35.6%;
      • EastarJet: 214,404, +14.5%;
      • Air Seoul: 139,994, +152.8%;
  • Foreign carriers: 2.2 million, +16.8%. [more - original PR - Korean]

All Nippon Airways and United Airlines launched (29-May-2018) the next phase of their cargo JV, adding eastbound trans Pacific routes from Japan to Mexico. The JV network includes 377 weekly nonstop services to 16 destinations and additional air and truck connections within Japan, the US, Canada and Mexico. The JV launched in Jul-2016 covering services between Japan and the US or Canada. [more - original PR]

MyWay Airlines plans to launch services to Dubai, Kiev, Minsk and Tehran from Jun-2018, Urumqi from Aug-2018 and Moscow, Samara and St Petersburg from 2018 (Georgia Today, 28-May-2018). Chief commercial officer Igor Aptsiauri said the carrier is targeting growth in transit traffic in Georgia from a share of up to 6% to 40%. The carrier also plans to develop Tbilisi as a transit hub.

Xiamen Airlines, via its official Facebook account, confirmed (23-May-2018) the expansion of its fleet to 200 aircraft, posting: "Our first Boeing 737 MAX is here, which is the 200th airplane of our fleet as well".

Malaysian Aviation Commission (MAVCOM) reported (28-May-2018) the following highlights from its 'Waypoint' 2018 industry report:

• Strong year-on-year industry performance in 2017. Malaysia passenger traffic increased 8.1% to 99.1 million;
• Traffic growth of between 6.5% and 7% to more than 100 million passengers forecast for 2018;
• Malaysian carriers' RASK outgrew CASK in 2017, resulting in a 42.5% decrease in the "negative spread" between CASK and RASK in 2017;
• Malaysian aviation industry's financial performance improved from an operating loss of MYR500 million (USD125.5 million) in 2014 to an operating profit of MYR1.6 billion (USD401.8 million) in 2017;
• Market capitalisation of aviation companies increased 38.4% from MYR18.5 billion (USD4.6 billion) at the beginning of 2014 to MYR25.6 billion (USD6.4 billion) at the end of 2017. The "solid growth" was supported by strong demand, improved seat inventory control and a low fuel price environment;
• The crude oil price is expected to increase by 10.7% to 30.5% year-on-year in 2018, which may exert downward pressure on airlines' profitability, already "sensitive" due to the competitive low fare environment;
• Malaysia's air connectivity improved with the addition of eight international destinations and approximately 360,000 seats in 2017. Asia remains the principal region of focus, with ASEAN, China and India accounting for 59.8% of air traffic rights awarded by MAVCOM. 56.4% of airports with connections to Malaysia are within Asia Pacific;
• Malaysia was the fourth most connected country in ASEAN by point-to-point passengers, after Thailand, Singapore and Indonesia, which have more connections to airports with a higher share of international traffic, both within and beyond Asia Pacific. Singapore and Thailand are also connected to more destinations and have more seats to those destinations compared to Malaysia;
• Kuala Lumpur International Airport is the second largest international hub in ASEAN by connecting passengers, after Singapore Changi Airport. Kuala Lumpur Airport primarily handled intra-Asia connecting traffic between China, India, Thailand and Indonesia in 2017, compared to traffic between Australia, Europe and Southeast Asia in 2010.

MAVCOM executive chairman Abdullah Ahmad said: "On the whole, the Malaysian aviation industry appears well-positioned for growth, despite the challenges to be had given narrowing margins and rising oil prices. The last two years have been strong from an industry standpoint, as shown by passenger traffic growth, industry operating profitability and the market capitalisation of public-listed aviation companies during this timescale, especially in comparison to the immediate period before. Challenges remain, but MAVCOM is optimistic that the positive industry performance of recent years will continue in 2018". [more - original PR]

Japan Airlines announced (28-May-2018) new inflight meals for economy and premium economy class passengers on short haul international services from 01-Jun-2018 to 30-Nov-2018, created under the concept of JAL Kitchen Gallery. JAL will be serving an original inflight meal supervised by Chef Masahiro Kasahara, owner chef of Sanpi Ryoron Restaurant in Ebisu, Tokyo. [more - original PR]

Singapore Airlines (SIA) announced (29-May-2018) its first new distribution capability (NDC) connection with Skyscanner. Customers who purchase Singapore Airlines tickets through Skyscanner may now complete their bookings directly, instead of being referred to the Singapore Airlines website. The parties will progressively implement other capabilities, including personalised offers and the ability to select seats. Singapore Airlines is NDC level three certified and will further develop its NDC capabilities to offer other ancillary services and personalised offers. SVP sales and marketing Campbell Wilson said: "We will also be seeking out even more connections with travel partners to improve distribution through SIA's third party sales channels". [more - original PR]