Corporate Travel News For Asia

Australia's Bureau of Infrastructure, Transport and Regional Economics (BITRE) reported (10-Jan-2018) the following international traffic highlights to/from Australia for Oct-2017:

• Passengers: 3.4 million, +4.5% year-on-year;
• Available seats: 4.4 million, +3.7%;
• Flights: 16,772, +3.2%;
• Cargo: 100,982 tonnes, +12.2%;
• Aircraft movements: 17,119, +3.6%;
• Top 10 international carriers:
  • Share of passengers carried:
    • Qantas: 16.8%, +1.2ppts;
    • Jetstar: 9.0%, -0.4ppt;
    • Singapore Airlines: 8.4%, +0.3ppt;
    • Emirates: 7.9%, -0.4ppt;
    • Air New Zealand: 6.9%, -0.1ppt;
    • Virgin Australia: 6.2%, -0.4ppt;
    • Cathay Pacific Airways: 4.6%, -0.2ppt;
    • AirAsia X: 3.8%, -0.3ppt;
    • China Southern Airlines: 3.0%, +0.4ppt;
    • Etihad Airways: 2.9%, stable;
  • Share of cargo carried:
    • Singapore Airlines: 16.6%, -0.8ppt;
    • Qantas: 11.9%, -0.5ppt;
    • Emirates: 8.5%, -1.9ppts;
    • Cathay Pacific Airways: 7.3%, stable;
    • Air New Zealand: 5.4%, +0.1ppt;
    • Thai Airways: 4.0%, +0.2ppt;
    • China Southern Airlines: 4.0%, +0.2ppt;
    • Etihad Airways: 3.2%, +0.5ppt;
    • Qatar Airways: 3.0%, +0.3ppt;
    • Federal Express Corporation: 3.0%, +0.3ppt.

BITRE also reported LCCs AirAsia X, Cebu Pacific Air, Indonesia AirAsia, Jetstar, Jetstar Asia and Scoot accounted for 16.4% of total international passenger traffic to/from Australia in Oct-2017. LCC share in Oct-2016 was 18%. [more - original PR]

Hainan Airlines announced (09-Jan-2018) plans to launch twice weekly Shenzhen-Brussels service with Boeing 787 aircraft from 20-Mar-2018, marking its third China-Brussels service after Beijing and Shanghai Pudong. Hainan Airlines operates 65 services to countries along China's 'one belt, one road' initiative. [more - original PR - Chinese]

Vietnam Airlines president and CEO Duong Tri Thanh stated the launch of direct service to the US is more likely in 2019 or 2020 than 2018, due to regulatory and safety procedures (DTiNews, 09-Jan-2018). Mr Thanh also expects initial services to the US to operate at a loss. "[Vietnam Airlines] would suffer from loss of USD30 million a year for the first five years of operation, so we need to figure out how to reduce the losses to below USD30 million annually", he said. He expressed interest in a commercial agreement with other airlines to serve the US.

HNA Group stated (02-Jan-2018) it lodged five incomplete notices with the Australian Securities Exchange that failed to properly disclose how its major stake in Virgin Australia was controlled. HNA said five substantial holder notices lodged between Jun-2016 and Oct-2017 relating to its 19% stake in Virgin Australia failed to list entities that held a "relevant interest" in the airline. HNA said it failed to include several relevant parties because of "an oversight". HNA said all its companies in the "chain of ownership down to the entity directly holding [Virgin] shares" were disclosed but "sister companies of those entities were incorrectly omitted as they do not directly or indirectly have an interest in those shares but instead are deemed to have a relevant interest under the Corporations Act". "HNA Group is committed to complying with its ongoing disclosure obligations in the Australian market", HNA added. As previously reported by CAPA, HNA has a total of 1.68 billion securities equating to 19.82% voting power in Virgin Australia. [more - original PR]

Queensland's Minister for Innovation and Tourism Industry Development and Minister for the Commonwealth Games Kate Jones confirmed (09-Jan-2018) a consortium led by Tourism and Events Queensland (TEQ), which included Tourism Australia and Brisbane Airport Corporation secured the return of Malaysia Airlines services to Brisbane. As previously reported by CAPA, Malaysia Airlines plans to launch four times weekly Kuala Lumpur-Brisbane service in Jun-2018. Ms Jones said: "Through the Queensland Government's Attracting Aviation Investment Fund, Tourism and Events Queensland and its partners have again been able to secure an important airline on an important route, giving travellers another way to come here and enhancing the reputation of Brisbane Airport. Not only will these flights bring tens of thousands of tourists to Queensland and inject millions into the economy, they'll also support up to 240 jobs which means this deal will be much more than just a boost to the tourism industry." [more - original PR]

Airbus signed (09-Jan-2018) a MoU with the National Development and Reform Commission of China on the further development of industrial cooperation in Tianjin. Both sides agreed to further enhance their industrial partnership in Tianjin and strengthen cooperation with regards to technical innovation, engineering capabilities and supply chain expansion. Airbus and its Chinese partners also signed a framework agreement on ramping up A320 production at the final assembly line in Tianjin to six aircraft per month. The industrial ramp up targets five aircraft by early 2019 and six per month by early 2020. Since its inauguration in 2008, the final assembly line in Tianjin has assembled 354 A320 family aircraft. [more - original PR]

United Airlines announced (08-Jan-2018) the elimination of charges for customers' second checked bag on all routes from North America to China and Hong Kong from 08-Jan-2018. Currently, customers travelling from China/Hong Kong to the US already receive two free checked bags. Fees for oversized and overweight bags will continue to apply. United operates more nonstop flights to more cities in China than any other US carrier, with a total of 89 weekly frequencies and four greater Chinese destinations served, including Beijing, Shanghai, Chengdu and Hong Kong. [more - original PR]

Malaysia Airlines outlined (08-Jan-2018) "sustainable growth plans" for Australia in 2018, including the resumption of Brisbane service in Jun-2018. The airline will increase A330-300 frequency to Adelaide from four to five times weekly and increase Perth frequency to 12 times weekly with Boeing 737-800 equipment in Jun-2018. The carrier will also deploy A380 equipment to Melbourne and Sydney over periods of peak demand, including to Sydney over the Easter period. The Australian market is the airline's largest outside Malaysia domestic. From Jun-2018, the carrier will operate 56 times weekly to six destinations in Australia and New Zealand. [more - original PR]

Malaysia Airlines announced (08-Jan-2018) plans to recommence four times weekly Kuala Lumpur-Brisbane service with A330-300 equipment on 06-Jun-2018. The airline aims to increase frequency to daily "once demand has been established". The service is expected to bring more than 60,000 international visitors p/a to Queensland. The schedule is designed to provide connectivity across Malaysia Airlines' domestic, ASEAN, Indian subcontinent, China and London services. Connectivity in regional Queensland will be available through Malaysia Airlines' oneworld partner Qantas. The service was acquired through the partnership between Brisbane Airport Corporation, Tourism Events Queensland and Tourism Australia, with the support of the Queensland Government's attracting aviation investment fund. The service is expected to deliver AUD98 million (USD76.7 million) into the Queensland economy over the next three years. [more - original PR - Malaysia Airlines] [more - original PR - Malaysia Airlines - II] [more - original PR - Brisbane Airport] [more - original PR - Queensland Government]

Royal Jordanian (RJ) confirmed (08-Jan-2018) it expanded codeshare agreements with Malaysia Airlines and Turkish Airlines to include Malaysia Airlines' Langkawi, Melbourne, Penang and Sydney services, sold in connection with Royal Jordanian's Kuala Lumpur service, and Turkish Airlines' Milan, Sarajevo and Sofia services, sold in connection with Royal Jordanian's Istanbul service. Royal Jordanian has codeshare agreements with 15 airlines. Royal Jordanian president and CEO Stefan Pichler said: "Codeshare agreements with global airlines are in line with RJ's turnaround plan and endeavour to offer an improved passenger experience and enhance competitiveness at regional and global levels" and added: "Having flexible connections will no doubt increase traffic on RJ's network". [more - original PR]