Corporate Travel News For Asia

Cathay Pacific and OpenJaw's parent company, TravelSky Technology, signed (21-May-2018) a strategic cooperation framework agreement, which will widen the partnership between the two companies for air travel e-commerce and aviation IT services. The objective of the agreement between TravelSky and Cathay Pacific is to fully utilise their joint capabilities in the region to drive TravelSky's internationalisation and Cathay Pacific's digitalisation processes. The agreement will enhance the existing OpenJaw's t-Retail and NDC programmes, and add the combined opportunity of TravelSky's distribution and revenue management, passenger self-service, data analysis, offshore R&D centres, and online payment systems. [more - original PR]

Royal Brunei Airlines announced (21-May-2018) plans to commence daily Brunei-London Heathrow service, effective 28-Oct-2018, and four times weekly Brunei-Dubai service, effective 29-Oct-2018. The nonstop services will replace Brunei-Dubai-London Heathrow service. The changes will mark the first nonstop service between Brunei and the UK. The new service is expected to reduce travel time between Brunei and London by 3.5 hours and between Melbourne and London by 5.3 hours. The airline also updated its Melbourne schedule to improve long haul connections, subject to slot clearance and government approvals. The carrier stated: "The through flight via Dubai has served us well however with the demand for more direct routing from our guests, it becomes an important commercial imperative to provide that". The nonstop operation is also expected to enable growth in tourism to Brunei from the UK and Europe. Royal Brunei CEO Karam Chand said: "The initiatives such as the London direct, additional Seoul flights, China charter flights and to be announced new markets will play a pivotal role in getting half a million visitors to our shores by 2021". The airline plans to announce "more product and service innovations" in 2018. [more - original PR]

IATA reported (20-May-2018) Chinese airlines fly 55% more passengers than airlines based in America did when the US was at a similar stage of economic development. This is partly a function of population size, IATA said. [more - original PR]

Ruili Airlines, via its official WeChat account, announced (19-May-2018) an order for 15 Boeing 737 MAX aircraft and 44 737 MAX buyer furnished equipment (BFE). The aircraft will be leased from Huaxia Financial Leasing (three), CDB Aviation Leasing (two 737 MAX 8), AVIC Leasing (eight), and SMBC Aviation Capital (two 737 MAX 8). The SMBC Aviation Capital contract is the carrier's first with an aircraft leasing company outside of China. The first of the two aircraft are scheduled for delivery in 2019. The carrier also signed 44 737 MAX aircraft cabin seats, aircraft avionics, aircraft kitchen and inflight entertainment systems agreements with Recaro Aircraft Seating, Rockwell Collins, Zodiac Aerospace, Panasonic Avionics, and Thales Avionics. Ruili Airlines aims to end 2018 with more than 20 aircraft, expanding to 40 aircraft by 2020 year end and to 80 aircraft by 2025 year end. [more - original PR - Ruili Airlines - Chinese][more - original PR - SMBC Aviation Capital]

Australia's Bureau of Infrastructure, Transport and Regional Economics (BITRE) reported (21-May-2018) the overall domestic on time performance for Apr-2018. Details include:

• On-time departures: 83.1%;
  • QantasLink: 88.2%;
  • Regional Express: 85.6%;
  • Virgin Australia: 85.6%;
  • Qantas: 81.8%;
  • Virgin Australia Regional Airlines: 81.8%;
  • Jetstar: 77.3%;
  • Tigerair: 69.2%;
• On-time arrivals: 83.2%;
  • Virgin Australia: 85.2%;
  • QantasLink: 88.3%;
  • Qantas: 83.0%;
  • Regional Express: 82.1%;
  • Virgin Australia Regional Airlines: 80.1%;
  • Jetstar: 79.9%;
  • Tigerair: 69.0%;
• Cancellations: 1.2%;
  • Virgin Australia Regional Airlines: 3.0%;
  • Tigerair: 2.7%;
  • Qantas: 1.4%;
  • Jetstar: 1.0%;
  • QantasLink: 0.9%;
  • Virgin Australia: 0.9%. [more - original PR]

Cathay Pacific reported (18-May-2018) the following traffic highlights for Apr-2018:

• Passengers: 3.0 million, -0.8% year-on-year;
• Passenger traffic (RPKs): -1.2%;
  • Europe: +4.0%;
  • China: +2.6%;
  • Southeast Asia: +0.1%;
  • Northeast Asia: -0.9%;
  • India, Middle East, Pakistan & Sri Lanka: -3.3%;
  • North America: -4.2%;
  • South West Pacific & South Africa: -5.4%;
• Passenger load factor: 84.5%, -1.9ppts;
• Capacity (ASKs): +0.9%;
• Cargo: 174,489 tonnes, +6.7%;
• Cargo load factor: 68.0%, +2.3ppts;
• Flights: 6784, +1.6%. [more - original PR]

Association of Asia Pacific Airlines (AAPA) DG Andrew Herdman, speaking at the CAPA Airline Leader Summit, stated (18-May-2018) LCCs have penetrated "significantly" in Southeast Asia, less significantly in North Asia and even less in China. On China he however stated: "But that's changing".

Air Belgium reportedly obtained overflight permission to operate air services over Russian airspace to Hong Kong and mainland China (La Libre Belgique, 17-May-2018). As previously reported by CAPA, Air Belgium rescheduled inaugural Brussels Charleroi-Hong Kong commercial service from 30-Apr-2018 to 03-Jun-2018 in anticipation of overflight permission from Russian authorities.

SIA Group reported (17-May-2018) the following financial highlights:

• Three months ended 31-Mar-2018:
  • Revenue: SGD4017 million (USD3045 million), +8.3% year-on-year;
  • Costs: SGD3803 million (USD2883 million), +3.2%;
    • Fuel: SGD1019 million (USD772 million), +5.3%;
    • Labour: SGD710.4 million (USD539 million), +2.9%;
  • Operating profit: SGD214.5 million (USD163 million), +677%;
    • Singapore Airlines: SGD137 million (USD104 million), compared to a loss of SGD41 million (USD29 million) in p-c-p;
    • SilkAir: SGD3 million (USD2 million), -89%;
    • Scoot: SGD29 million (USD22 million), +32%;
    • SIA Cargo: SGD28 million (USD21 million), compared to a loss of SGD5 million (USD4 million) in p-c-p;
    • SIA Engineering: SGD20 million (USD15 million), -17%;
  • Net profit: SGD193.6 million (USD147 million), compared to a loss of SGD126.4 million (USD89.2 million) in p-c-p;
  • Passenger yield:
    • Singapore Airlines: SGD 10.3 cents (USD 7.8 cents), +1.0%;
    • SilkAir: SGD 11.7 cents (USD 8.9 cents), -11.4%;
    • Scoot: SGD 6.0 cents (USD 4.5 cents), -1.6%;
  • SIA Cargo yield: SGD 28.2 cents (USD 21.4 cents), +8.5%;
• 12 months ended 31-Mar-2018:
  • Revenue: SGD15,806 million (USD11,653 million), +6.3%;
  • Costs: SGD14,749 million (USD10,874 million), +3.5%;
    • Fuel: SGD3899 million (USD2875 million), +4.1%;
    • Labour: SGD2709 million (USD1997 million), +3.5%;
  • Operating profit: SGD1057 million (USD780 million), +69.8%;
    • Singapore Airlines: SGD703 million (USD518 million), +82.1%;
    • SilkAir: SGD43 million (USD32 million), -57%;
    • Scoot: SGD77 million (USD57 million), +15%;
    • SIA Cargo: SGD148 million (USD109 million), compared to a profit of SGD3 million in p-c-p;
    • SIA Engineering: SGD76 million (USD56 million), +5.6%;
  • Net profit: SGD937 million (USD691 million), +112%;
  • Passenger yield:
    • Singapore Airlines: SGD 10.2 cents (USD 7.5 cents), -1.0%;
    • SilkAir: SGD 11.5 cents (USD 8.5 cents), -11.5%;
    • Scoot: SGD 5.8 cents (USD 4.3 cents), -1.7%;
  • SIA Cargo yield: SGD 28.2 cents (USD 20.8 cents), +8.9%;
  • Total assets: SGD27,549 million (USD20,311 million);
  • Cash and bank balances: SGD2568 million (USD1894 million);
  • Total liabilities: SGD3127 million (USD2306 million). [more - original PR]

*Based on the average conversion rate at SGD1 = USD0.758028 for Q4FY2018
*Based on the average conversion rate at SGD1 = USD0.70567 for Q4FY2017
*Based on the average conversion rate at SGD1 = USD0.737259 for FY2018

Singapore Airlines Group announced (17-May-2018) SilkAir will undergo a "significant investment programme" to upgrade its cabin products as part of a multi year initiative, under which SilkAir will ultimately be merged into Singapore Airlines. The programme will comprise investment of more than SGD100 million (USD74.5 million) to upgrade SilkAir's cabins with lie flat seats in business class and seat back IFE systems in business and economy class to ensure closer product and service consistency with Singapore Airlines. Cabin upgrades are expected to commence in 2020 due to lead times required by seat suppliers, including time for certification. The merger between SilkAir and Singapore Airlines will only take place after a "sufficient" number of aircraft are fitted with the new cabin products. The airlines will transfer aircraft and routes, consistent with ongoing efforts to optimise the group network. Singapore Airlines CEO Goh Choon Phong said: "Today's announcement is a significant development to provide more growth opportunities and prepare the group for an even stronger future". [more - original PR]