Corporate Travel News For Asia

CAPA - Centre for Aviation, in a report entitled: 'Virgin Atlantic: Air France-KLM relationship may help in improving network coverage', stated (05-Oct-2017) Virgin Atlantic's anticipated entry into the North Atlantic JV based around SkyTeam members Delta Air Lines and Air France-KLM will probably not immediately change the shape of its network in a significant way. It will certainly not directly alter its competitive position on its routes from the UK. Virgin Atlantic's new relationship with Air France-KLM should improve Virgin's access to wider markets in the future. Air France-KLM has a much more geographically balanced network and, over time, this should help to widen Virgin's global commercial footprint, particularly if the new Air France-KLM shareholder China Eastern is also brought into its sphere of influence. [more - CAPA Analysis]

CAPA - Centre for Aviation, in a report entitled: 'Malaysia Airlines' fleet strategy: still a work in progress following A330-200 and 787-9 deals', stated (04-Oct-2017) Malaysia Airlines is in final negotiations with a European airport and intends to announce a new long haul route within the next few weeks. As CAPA has previously reported, the airline has been considering several potential destinations in Europe for the last two of its six A350s. Malaysia Airlines has six A350s on order and decided two years ago to use four A350s to replace A380s on its twice daily Kuala Lumpur-London route. Malaysia Airlines initially looked at using the fifth and sixth aircraft for Auckland and other potential routes within Asia Pacific before deciding earlier this year to pursue a new long haul route. Malaysia Airlines previously served four destinations in Europe in addition to London. Amsterdam and Paris were suspended in early 2016 while Frankfurt and Istanbul were suspended in 2015. CAPA stated that "Malaysia Airlines would prefer to wait for its new fleet of 787-9s, which are being delivered from 2H2019, to resume expansion in Europe. However, the airline has determined that it has no other viable option for its last two A350s and needs to somehow utilise the last two aircraft. Essentially Malaysia Airlines has to find a route where it can cover as much of the lease costs on the last two A350s as possible. Once the first batch of 787-9s are delivered in late 2019, this route can potentially be transferred from the A350". [more - CAPA Analysis]

Air Cargo Netherlands estimates up to 37 of the 150 full freighter landing slots per week will be cut at Amsterdam Schiphol Airport during the upcoming winter season, due to slot restrictions (Hangar.no/Air Cargo News, 03-Oct-2017). AirBridgeCargo Airlines, Cargolux Airlines International, Emirates SkyCargo, Kalitta Air, Singapore Airlines Cargo and Qatar Airways Cargo all stand to lose Schiphol slots and several cargo operators are reportedly exploring plans to shift operations from Schiphol to Maastricht Airport, Frankfurt Airport, Brussels Airport or Liege Airport.

Australia's Bureau of Infrastructure, Transport and Regional Economics (BITRE) reported (04-Oct-2017) the following international traffic highlights to/from Australia for Jul-2017:

• Passengers: 3.5 million, +3.9% year-on-year;
• Available seats: 4.5 million, +4.4%;
• Flights: 17,157, +3.1%;
• Cargo: 88,164 tonnes, +8.0%;
• Aircraft movements: 18,091, +7.0%;
• Top 10 international carriers:
  • Share of passengers carried:
    • Qantas: 16.2%, +0.7ppt;
    • Jetstar: 9.1%, +0.1ppt;
    • Emirates: 8.5%, -0.3ppt;
    • Singapore Airlines: 8.3%, -0.1ppt;
    • Air New Zealand: 6.5%, +0.1ppt;
    • Virgin Australia: 6.2%, +0.1ppt;
    • Cathay Pacific Airways: 4.2%, -0.1ppt;
    • AirAsia X: 4.0%, -0.1ppt;
    • China Southern Airlines: 2.6%, +0.2ppt;
    • Etihad Airways: 3.5%, -0.1ppt;
  • Share of cargo carried:
    • Singapore Airlines: 15.6%, -2.0ppts;
    • Qantas: 12.4%, -0.6ppt;
    • Emirates: 8.8%, -1.1ppts;
    • Cathay Pacific Airways: 7.0%, -0.1ppt;
    • Air New Zealand: 6.5%, +0.2ppt;
    • Thai Airways: 4.0%, +0.8ppt;
    • China Southern Airlines: 3.7%, -0.1ppt;
    • Federal Express Corporation: 3.2%, +0.3ppt;
    • Malaysia Airlines: 2.8%, +0.1%;
    • Etihad Airways: 2.6%, stable. [more - original PR]

BITRE also reported LCCs AirAsia X, Cebu Pacific Air, Indonesia AirAsia, Jetstar, Jetstar Asia and Scoot/Scoot Tigerair accounted for 16.7% of total international passenger traffic to/from Australia in Jul-2017. LCC share in Jul-2016 was 19.1%.

Australia's Minister for Infrastructure and Transport Darren Chester welcomed (03-Oct-2017) the release of two final reports related to the search for Malaysia Airlines flight MH370.

• Australian Transport Safety Bureau (ATSB) published its final report on the Australian-led search for the aircraft. Mr Chester said the ATSB report represents a detailed analysis of the search areas by Australian and global experts;
• CSIRO published its final MH370 research report, providing a detailed analysis of the initial surface search for aircraft debris in key areas in Mar-2014 and Apr-2014. [more - original PR]

Thai Airways announced (01-Oct-2017) a change in equipment on Bangkok Suvarnabhumi-Melbourne service. Highlights include:

• A350-900 replaces Boeing 777-200 equipment;
• Capacity increases by 224 seats weekly into Thailand;
• Thailand is currently the ninth most visited outbound destination from Melbourne;
• Victoria's Department of Economic Development, Jobs, Transport and Resources statistics for the year ending Jun-2017 estimated Victorians took 167,900 trips to Thailand, +5.4% year-on-year. [more - original PR]

Darwin Airport launched (Oct-2017) a project to make its terminal 'China Ready', in hopes of welcoming Chinese airline services in the future. The project has involved trialling airport systems being translated to Mandarin, such as the flight information display system and select key terminal voiceovers. CEO Ian Kew stated: "We are keen to ensure if and when Chinese visitors are able to start flying directly to Darwin, we are giving them a positive visitor experience and welcoming them to our city right from the outset". [more - original PR]

Aigle Azur CEO Frantz Yvelin stated the carrier is "working to extend our network on the long haul", however "I do not want to force things and make hurried announcements" (tourmag.com, 28-Sep-2017). He said the airline "looks naturally towards the East" and the Middle East. HNA Group purchased a 48% stake in the carrier in 2012.

Kenya Airways confirmed (28-Sep-2017) plans to discontinue Hong Kong and Hanoi services, effective 29-Oct-2017. The airline said the change will enable better schedules to Asia with daily Bangkok and Guangzhou service. In addition, the change will allow Kenya Airways to allocate more seats across its African network where "demand outlook remains strong and capacity insufficient on certain routes". Kenya Airways commercial director Vincent Coste stated: "This network decision will help Kenya Airways to strengthen its focus on Africa. We will continue to serve our customers to Asia through our direct flights to China and Thailand and work closely with our partners to cover the Asian continent". [more - original PR]