Corporate Travel News For Asia

Air China VP and GM North America Zhihang Chi, speaking at the CAPA Airline Leader Summit, stated (17-May-2018) the company is under "tremendous" yield pressure, with many constraints in China "especially infrastructure". Mr Chi said while Chinese airlines are positioned to generally make a healthy profit from domestic operations, international operations are "very tough".

CAAC confirmed (17-May-2018) the following traffic highlights for Chinese airlines for Apr-2018:

• Passengers: 50.7 million, +15.3% year-on-year;
  • Domestic: 45.4 million, +14.2%;
  • International: 5.3 million, +25.1%;
• Cargo: 605,000 tonnes, +4.6%;
• On time performance: 78.6%, +6.7ppts. [more - original PR]

Cathay Pacific, according to a FATIII Weibo post, stated (16-May-2018) it is scheduled to take delivery of the first of 20 A350-1000 aircraft on 19-Jun-2018, becoming the second airline in the world to operate the aircraft type. The carrier's A350-1000 will be configured in a three class layout with 48 business, 32 premium economy and 256 economy class seats.

Fly Leasing (FLY) announced (16-May-2018) AirAsia Group shareholders approved all agreements relating to the lessor's acquisition of 55 Airbus narrowbody aircraft and seven CFM International engines on operating lease, and the option to purchase an additional 20 A320neo family aircraft. The shareholders approved the agreements on 14-May-2018, at the company's annual general meeting, granting the final approval needed to complete the acquisition. FLY CEO Colm Barrington said: "The addition of these aircraft and engines will grow FLY's fleet significantly and will drive improved returns for our shareholders. We look forward to completing the transfer of the 34 aircraft and seven engines that comprise the initial part of the transaction by the end of the third quarter". [more - original PR]

Cebu Pacific opened (16-May-2018) applications for the third batch of 16 cadet pilots under its cadet pilot programme, effective 16-May-2018 to 22-May-2018. Trainees will undergo 52 weeks of flight exercises, theory and educational courses with Flight Training Adelaide in Australia. Cebu Pacific will cover trainees' expenses and provide financing options under a 'study now, pay later' scheme. The programme is open to Filipino college graduates. [more - original PR] [more - original PR - II]

Korean Air reported (May-2018) the carrier had 164 aircraft as of 31-Mar-2018, with 11 aircraft scheduled for delivery in 2018. Details are as follows:

• Fleet: 164;
  • A380: 10;
  • A330: 29;
  • Boeing 747-400: Four;
  • 747-8I: 10;
  • 777: 41;
  • 787-9: Five;
  • 737: 35;
  • Bombardier CS300: Four;
  • 747F: Seven;
  • 747-8F: Seven;
  • 777F: 12;
• Delivery plan: 11;
  • 777: One;
  • 787-9: Four;
  • Bombardier CS300: Six. [more - original PR]

Air Canada listed Taiwan as part of China, instead of a separate country, from 14-May-2018 (Taiwan News/Taipei Times/The Canadian Press, 15-May-2018). Air Canada spokeswoman Isabelle Arthur said the carrier's "policy is to comply with all requirements in all worldwide jurisdictions to which we fly". Taiwan's Foreign Ministry said it would request Air Canada for a "speedy correction" following the change and has instructed the Taipei Economic and Cultural Office in Canada to lodge a protest with Air Canada. As previously reported by CAPA, CAAC ordered a number of international airlines, including several from the US, to change how Taiwan is described on their websites and promotional material. Following several reports of the "forced changes," the White House condemned Beijing's efforts to control how US airlines refer to Taiwan as "Orwellian nonsense".

HNA Group and Caribbean Airlines held commercial discussions on 14-May-2018, discussing cooperation in areas such as aviation tourism, aircraft leasing and financing (Carnoc.com, 15-May-2018). The companies also discussed codesharing to further expand their respective network between China and the Caribbean.

Value Alliance announced (15-May-2018) plans to relaunch its website, powered by Air Black Box technology, in conjunction with its second anniversary on 16-May-2018. The website aggregates the networks and destinations of all member airlines, enabling customers to search and book flights and pre-purchase ancillary products, including baggage and meals. The alliance said the website is the first to offer cross airline sales. The alliance will offer re-accommodation in the event of missed connections for passengers who book through the website. Customers may also access hotel accommodation and "other essentials" through the website in the event of schedule disruptions. [more - original PR]

Bangkok Airways reported (15-May-2018) the following financial highlights for the three months ended 31-Mar-2018:

• Operating revenue: THB7805 million (USD246.8 million), +5.5% year-on-year;
  • Airlines: THB6272 million (USD198.3 million), +4.9%;
• Total costs: THB6679 million (USD211.2 million), +2.9%;
  • Fuel: THB1158 million (USD36.6 million), +2.2%;
• EBIT: THB1345 million (USD42.5 million), +21.7%;
• Net profit: THB719.3 million (USD22.7 million), +27.3%;
• Passengers: 1.8 million, +8.4%;
  • Domestic: 1.3 million, +9.3%;
  • International: 489,600, +6.0%;
• Passenger load factor: 76.4%, +5.1ppt;
  • Domestic: 84.0%, +6.9ppt;
  • International: 67.5%, +3.0ppt;
• Passenger yield: THB4.79 (USD 15.1 cents), -2.4%;
• Revenue per ASK: THB3.95 (USD 12.5 cents), +5.6%;
• Cost per ASK: THB3.30 (USD 10.4 cents), -1.8%;
• Cost per ASK excl fuel: THB2.70 (USD 8.5 cents), stable;
• Average stage length: 748.5 km, -1.3%;
• Total assets: THB61,108 million (USD1932 million);
• Cash and cash equivalents and current investments: THB11,104 million (USD351.1 million);
• Total liabilities: THB29,668 million (USD938.2 million). [more - original PR]

*Based on the average conversion rate at THB1 = USD0.031622