January 03, 2008

United Arab Emirates and Nepal sign air services agreement

Centre for Asia Pacific Aviation: The United Arab Emirates signed a memorandum of understanding on air transport with the Republic of Nepal to increase the number of flights of national carriers in both countries. Both parties agreed to nominate Emirates Airlines, Etihad Airways, Air Arabia and RAK Airways as the national airlines of the United Arab Emirates, and to nominate Royal Nepal Airlines and YETI Airlines as the national airlines of the government of Nepal.

The two governments also agreed to increase the number of flights between the two countries to 28 flights per week for all national carriers. The MOU also amended certain provisions of the Convention on air transport signed between the two countries on the terms of appointment, taxes, air safety, transfer of income, and business activities. The agreement includes terms on exercising fifth freedom by the national carriers on three middle points or beyond points of the two countries, excluding destinations within the limits of the states of India and Thailand.

Air Berlin going long haul in 2008

Centre for Asia Pacific Aviation: Air Berlin announced plans to commence new long haul services to both Shanghai and Beijing in May-08. The LCC will operate the services from London Stansted via its hub at Dusseldorf.

easyJet enters code-share agreement with GB Airways; offers 16 new Summer destinations

Centre for Asia Pacific Aviation: easyJet announced that 32 routes operated by GB Airways for Summer 2008 are now available for sale from easyJet. These include services to destinations including Sharm El Sheikh, the Canary Islands, Corfu, the Greek Islands and Turkey.

In Oct-07, easyJet announced its intention to purchase Gatwick-based GB airways, which operates as a British Airways franchise. The agreement is expected to be completed in Jan-08. However, BA has now terminated all sales for services from 30-Mar-08 onwards. In order to continue to provide competition and choice for customers, easyJet has entered into a code-share agreement and can offer the GB Airways routes through easyJet.com.

In total, easyJet will now offer a choice of 66 routes from Gatwick and a further six from Manchester. The GB Airways Heathrow operation is expected to terminate at the end of Mar-08.

It is intended that GB Airways will continue to operate all routes under the British Airways brand until 29-Mar-08. After this, subject to regulatory approval, the GB services will operate under the easyJet brand and all customers who have booked to travel with GB Airways next Summer will be given the choice of flying with easyJet at the same times or else receive a refund. By Winter 2008, GB Airways will be fully integrated into the easyJet business model, subject to regulatory clearance.

GB airways operates to a total of 39 destinations with a fleet of 15 A320s and 321s from three bases in Gatwick, Heathrow and Manchester. The deal, which is currently in the process of being finalised, is expected to be complete by the end of Jan-08 and will enable easyJet to expand further from its largest base at London Gatwick as well as introduce service to Manchester.

AIRPORT NEWS

Hahn expects five million passengers this year

Passenger numbers at Frankfurt’s Hahn airport have grown from fewer than 500,000 passengers in 2001 to a projected 5 million this year

Frankfurt’s Hahn airport expects to increase passenger numbers this year to 5 million compared with 4.2 million in 2007. Its recently inaugurated runway, which accommodates wide-bodied aircraft, will contribute to the increase, says airport spokesman, Jörg Schumacher.

Hahn airport is popular with low cost carriers, including Ryanair which signed an operating agreement with the airport in 2005, and has increased its Hahn operators graduale since then. Ryanair will have 18 aircraft permanently based at Hahn by 2012, which corresponds with around eight million travellers for Ryanair alone. Hahn expects to handle 9.7 million passengers per year by 2012.

Hahn calls itself the first ‘real low cost airport in Germany’. Apart from Ryanair, WizzAir, SunExpress, LTU and Pegasus also serve the airport. Ryanair remains Hahn’s most important airline, flying to 35 destinations out of Hahn. The low cost giant will add two more aircraft to the airport this year.

Hahn is now Germany’s 11th largest airport in terms of passenger traffic. It handled fewer than 500,000 passengers in 2001, and the projected 5 million passenger throughput for 2008 underlines the airport’s strong growth.

Hahn’s 13,500m²passenger terminal has 22 check-in counters and 4 baggage belts. Passengers have a choice of 10 food and beverage counters and up to nine retail outlets on a combined shopping area of 3.695m².


Weapons seized at Newcastle International Airport

Knuckle-dusters, cleavers and other weapons were seized last year from holidaymakers at Newcastle International Airport in north-east England. Security staff reportedly confiscated thousands of items from passengers at the airport in 2007.

Airport duty manager Jon Sunderland says, “Many are sharp items, some of which are actually illegal and are referred to the police, and all have come from passengers’ baggage. They can range from scissors to replica firearms or even real firearms.”

Passengers have up to one month to reclaim their legal property. Unclaimed items are sold, usually at charity auctions.


Vietnam’s Cat Bi set for upgrade

Vietnam’s Prime Minister has approved a master plan to upgrade the Cat Bi International Airport in the northern port city of Hai Phong by 2015 and 2025. The estimated cost of the project is US$106.5 million.

By 2015, the airport will be upgraded to receive A321 and B767 planes, 800 passengers per peak hour and 17,000 tonnes of cargo a year.

Passenger figures are projected to almost double by 2025 when Cat Bi will be capable of receiving B747-400 and B777 aircraft.


Vienna celebrates its 18-millionth passenger

Helmut Otahal, an Air Malta passenger travelling from Vienna to Malta was confirmed as the airport’s 18-millionth passenger in 2007. Prior to his flight to Malta, he received a surprise reception at the departure gate from Friedrich Lehr, head of aviation at Vienna International Airport, and Carmen Pace, Air Malta’s country manager for Austria.

Lehr says that Vienna International Airport recorded substantial growth last year above the European average. “Between January and November 2007, the number of passengers in Vienna increased by 10.9% compared with the same period last year.”

Otahal is an Air Malta frequent flier and works for an Austrian company that recently opened a branch office in Malta.

Air Malta’s Carmen Pace says the airline is delighted by the Vienna route’s success as more than 35,000 passengers travelled on the airline’s services to Vienna last year. The Malta-Vienna service was first launched 18 years ago, linking the Maltese Islands to Austria, a gateway to Central and Eastern Europe.

Columbia Asia to provide medical services at BIAL

Bangalore International Airport Limited (BIAL) has chosen Columbia Asia Hospitals to provide medical care to travellers and other occupants at the new international airport. The hospital will establish a 24-hour medical care facility and a pharmacy at the airport, which is due to be commissioned on 30 March. The facility will have the latest medical equipment, technology and expertise to handle emergencies as well as routine medical cases.

Nandakumar Jairam, chairman of Columbia Asia Hospitals, says, “We will have a team of dedicated doctors for this new facility. The team will include a physician, paramedics, nurses, people to man the pharmacy and a full back-up team. We will also have three ambulances stationed at the airport.” The team will undergo formal training as per the requirements of the Airports Authority of India and be trained in both basic and advanced life support.

Albert Brunner, CEO of BIAL, says, “BIAL has chosen Columbia Asia Hospitals after a comprehensive tender process. It has a proven track record of providing effective medical care facilities. We are convinced that together we can cater to the passengers’ medical needs, as well as the disaster response services at the new Bangalore International Airport.”

Hotel room rates in India rise 40% but market to be handled with care

Demand for upscale hotel rooms in India is on the rise, and so are prices, according to Jonathan Worsley, co-organiser of the Arabian Hotel Investment Conference (AHIC), now in its fourth year.

Recent figures bear out this optimism with room rates in the major metropolitan centres rising nearly 40 per cent this year over 2006, while global names such as Shangri-La, Four Seasons, Marriott and Hilton have all announced major expansion plans for India.

“India is gearing up to accommodate international interest, both in business and leisure sectors, in a country poised for rapid growth,” said Worsley.

Capitalising on confirmed attendance, and requests, by decision makers from all sectors of the hotel industry, the Arabian Hotel Investment Conference in Dubai will devote the key opening session (on May 3) to the potential opportunities and pitfalls of the burgeoning hotel investment market in India.

According to Worsley, the two regions – India and the Gulf States - share many characteristics in the development of their hospitality sector.

He said that the inclusion of detailed presentations and analysis on India would be of interest to both regional and international developers, investors, architects, operators and consultants focused on the industry.

“There is scarcely a week that goes past without another announcement of a new project in Arabia, and recently India has joined this explosive development as well. Given the large population, the economic boom and the pent-up demand for hotel accommodation the potential for India is vast," he said.

The key sessions on the first day of AHIC 2008 are devoted to India’s hotel development and will feature topics such as market trends, industry overviews, investment and growth opportunities and business development challenges.

"Already, we are seeing many regional names entering the Indian market - Emaar, Nakheel, ETA Star, KM Properties and Dubai Properties have all announced plans for India. There is perceived potential in every sector from luxury palace resorts to branded budget chains and executive residences," he continued.

"This buoyant scenario aside, there are difficulties associated with investing in this market and the India Summit at AHIC 2008 will address these issues," said Worsley.

His view is borne out by one of the key Middle East players, Kingdom Hotel Investments. Development Director, Tim Hansing, has been keeping a watching brief on opportunities for several years.

"Difficulties of obtaining suitable land, bureaucracy associated with construction and constraints of infrastructure mean India is an expensive opportunity," he cautioned.

"Indian assets do not come cheap, and while there is clearly an under capacity in the hotel sector, international investors are having to compete with local money (investors) and places a different risk perception on future yields,” said Hansing.

The India Summit at AHIC will take place on the opening afternoon (May 3; the conference will run until May 5, prior to the Arabian Travel Market). More than 1,000 delegates are expected to attend, with almost half of these from outside the Middle East region.

Surjit S Bhalla, Managing Director, Oxus Research and Investments; Abhijit "Beej" Das, Managing Director (India), Molinaro Koger; Raymond Bickson, Managing Director & CEO, Taj Hotels & Resorts & Palaces; KB Kachru, Executive Vice President, South Asia, Carlson and Gaurav Bhushan, Senior Vice President, Development Asia Pacific, Accor Hotels are some of the India panel experts.

The Arabian Hotel Investment Conference will run from May 3-5, 2008 at Dubai’s Madinat Jumeirah Convention Centre and is jointly organised by The Bench and MEED.

ChinaContact congratulated USA for becoming an approved tourism destination for Chinese tourists

ChinaContact, the market entry specialist for the Chinese tourism industry, welcomed the most recent addition to the approved tourism destination list for Chinese tourists - United States of America. The bilateral agreement signed by the US and China in December sets the way for implementation of open tourism promotion of US destinations in the Chinese market from the Spring.

Speaking on the China Business Show recently, ChinaContact Managing Director Roy Graff was optimistic about what this means for growth in visitor numbers from China to America while sounding caution of the need for careful implementation. He explained that experience in Australia and Europe of Chinese leisure tourism can show the US tourism industry how to grow this market sustainably. While potentially huge, the market is still in its infancy and requires specialist knowledge and the correct strategy for local marketing and sales campaigns. Much depends on how the two governments will decide to implement the agreement and decide on who will be allowed to supply services to the new tourist groups.

Closer to China, congratulations to TAT (Tourism Authority of Thailand) for receiving the Travel Weekly China award last month in Beijing for best short haul destination and for its marketing and promotion activities in China.

ChinaContact congratulated also its China partner TLM-China Marketing co., which has been providing marketing and promotion support for TAT throughout China as extension of TAT's offices in Beijing and Shanghai. TLM-China represent TAT, Royal Orchid Holidays, Amari hotels and Bangkok Airlines. Together with ChinaContact they offer representation and GSA services to International destinations, hotel chains, airlines and tour operators. Their experience of selling to the Chinese market and their intimate knowledge of the key players in the travel trade is unique and invaluable to new destinations wishing to promote themselves in China.