Air Arabia has commenced operations from its newest hub in Kathmandu, Nepal, with the launch of its new JV with Yeti Airlines, FlyYeti.com, Nepal's first LCC. FlyYeti.com's inaugural flight took off from Kathmandu Airport on 20-Jan-07 to Sharjah.
FlyYeti.com is a joint venture between Air Arabia and Yeti Airlines, a leading domestic carrier in Nepal. Air Arabia a major shareholder in the new company, will apply its successful low-cost business model to the management and operation of FlyYeti.com.
"This newest hub will give air travellers who use Air Arabia access to new destinations in India and wider South Asia, as well as the Far East and Central Asia," said Adel Ali, Board Member and Chief Executive Officer of Air Arabia "Now people who wish to fly to these regions will have access to a competitive fare with the highest quality service possible via Air Arabia and FlyYeti.com."
Based in Kathmandu, FlyYeti.com will provide affordable and convenient service to a broad range of international destinations. The new carrier will start service from Kathmandu airport this week to two destinations, Sharjah and Kuala Lumpur in Malaysia, and will extend its operations to further destinations across South and Central Asia, the Far East, Middle East and Indian Subcontinent in the near future.
"The new hub will allow Air Arabia passengers to reach new destinations throughout South Asia, Central Asia, the Middle East and Far East, all with the same high standard of service they have come to expect from Air Arabia itself. FlyYeti.com will also give customers in the Gulf states and wider Middle East an exceptional and inexpensive way to connect to these destinations," said Ali.
The large expatriate population of Nepal living in the MENA, South Asia and East Asia markets will also benefit from the partnership and hub, giving these passengers access to the vast network of both airlines. Operations officially commenced on January 20, 2008, with the inaugural flight from Kathmandu to Sharjah. FlyYeti.com's new website can be viewed at www.flyyeti.com.
January 21, 2008
Air Arabia begins Nepal hub operations and launches FlyYeti.com
flyglobespan to offer business class on Bristol-Toronto service
Flyglobespan announced plans to offer a business class option on its weekly Bristol-Toronto service, which will commence in May-08.
Flyglobespan is offering business class fares from GBP318 (one way, includes tax). Benefits include a 38 inch seat pitch, 40kg luggage allowance, priority check-in and boarding, and complimentary drinks and in-flight entertainment.
The service from Bristol International to Toronto Hamilton Airport will operate weekly from 26-May-08
AIRPORT NEWS
Cologne Bonn plans build as it beats 10 million
Cologne Bonn Airport has announced that its Terminal 1 will get a Euro 13 million (US$19 million) makeover this year, including an extension of the shop and catering concourse, and an increase in the number of central security control points from 10 to 18 lanes.
The aim of the new security system is to improve passenger through-flow, and the new checkpoints are due to be operational by November 2008. “We’re already known as the airport where everything is close at hand, and now we want to become the quickest airport with the shortest waiting times,” says Michael Garvens, chief executive officer of Cologne Bonn Airport.
The airport’s Terminal 1 will be extended in two phases by more than 1,100m². It will include two new rows of shops on both sides of the central control. Construction work on the first phase will start in March 2008 with the handover to the tenants in the summer of 2008. Work on the second phase is planned to start in late October 2008 and will be completed at the end of March 2009.
The airport passed the 10 million passengers milestone in 2007 as passenger traffic grew by 6%. The airport is now the sixth largest airport in Germany, overtaking Stuttgart.
Low-cost airlines are the main driver behind the airport’s growth. Low-cost traffic to Eastern Europe, Northern Africa, Greece and Turkey has grown particularly fast. Garvens foresees the introduction of long-haul, low-cost flights soon. “The low-cost, long haul segment is heading slowly in the right direction,” he says.
QinetiQ’s SPO system destined for US airports
The US Transportation Security Administration (TSA) has chosen QinetiQ’s SPO threat detection system to provide enhanced security technology for US travellers.
The camera-based system uses advanced millimeter wave technology combined with sophisticated software algorithms to screen people one at a time. The technology detects and measures the waves naturally emitted by the human body and determines if there are any “cold” objects, such as metals, plastics and ceramics concealed under a person’s clothing. Suspicious objects trigger a red light on the display monitor, prompting the operator to search the individual.
TSA has purchased 12 SPO units from QinetiQ under an ID/IQ (Indefinite Delivery/Indefinite Quantity) contract that allows for additional purchases over the next two years.
The agreement follows recent operational trials of SPO technology at the Staten Island ferry terminal and Pier 90 in New York City. Similar technology was deployed last fall at Phoenix Sky Harbor International Airport, but TSA has not yet announced which airports will receive the first 12 units.
QinetiQ claims the system is particularly suited to busy airport environments because it can detect concealed threats, such as explosive devices, from many metres away and there is no need for passengers to slow their pace.
“The contract with the TSA is a great example of the synergies that have been made possible through the development of QinetiQ North America,” says Graham Love, group chief executive of QinetiQ. “We expect to see further significant deployments of this and other QinetiQ security technologies to worldwide markets in the future.”
FIFA’s soccer store debuts at Changi
International football's governing body, FIFA, has launched its first global store selling jerseys, T-shirts, balls and other official merchandise at Singapore Changi Airport's newly-opened Terminal 3.
The store sells FIFA- and World Cup-branded items, and similar outlets are planned at airports in London, Tokyo and Los Angeles, it said.
"FIFA and its various World Cup events have become part and parcel of people's everyday lives,” says Mohamed bin Hammam, president of the Asian Football Confederation and a FIFA executive member. “The official store will be a great opportunity to reach out to football fans across the length and breadth of the world."
The store is managed by Singapore-based Global Brands Group, which was appointed by FIFA in 2005 to be the worldwide exclusive licensing representative until 2014.
Iran plans private future for Qeshm
Iranian authorities are reportedly seeking a private operator to manage Qeshm International Airport in southern Iran. The airport, which dates back to 1996, is served by commercial air services linking Qeshm Island to the United Arab Emirates and Tehran. Qeshm Free Zone Organization (QFZO) has committed to providing additional land for expansion in future.
China Eastern Studying Air China Tie-Up Proposal
China Eastern Airlines said it had received a proposal for a "strategic partnership" with Air China that could bring it a cash injection of USD$1.9 billion and involve a tie-up between many of the airlines' operations.
China Eastern, the country's third largest airline, said it was studying the proposal, and did not give any sign that it might modify its strong opposition to accepting Air China as a strategic investor.
"The board of our company is now dealing with this proposal, and we will announce our decision when it has been made," China Eastern said in a statement on Sunday.
The proposal was made 10 days after minority shareholders in China Eastern rejected a USD$920 million plan for Singapore Airlines and Singapore investment agency Temasek to buy 24 percent of China Eastern.
The parent group of Air China, China National Aviation Corporation (CNAC), proposed that it and China Eastern's own parent group buy a placement of 2.98 billion new Hong Kong-listed H shares in China Eastern, the statement said.
The shares would be bought for no less than HKD$5 each, compared to China Eastern's last traded price in Hong Kong of HKD$6.75. CNAC, which already owns 3.9 percent of China Eastern, would end up with a stake of under 30 percent.
The share issue would inject at least HKD$14.9 billion (USD$1.9 billion) of cash into China Eastern, reducing its debt-to-asset ratio from 94.33 percent to 77 percent, China Eastern quoted CNAC's proposal as saying.
CNAC also suggested that regardless of whether or when its equity investment went ahead, Beijing-based Air China help Shanghai-based China Eastern form an "operations hub" in Shanghai to strengthen the use of its route network and other resources.
The two airlines would consolidate their cargo operations in a joint venture, and cooperate in areas such as sharing flights, frequent flyer programs, maintenance and ground service.
"We believe fully carrying out this proposal would bring concrete cooperative benefits to both sides, while benefiting shareholders, the companies, employees and society," CNAC was quoted as saying.
CNAC calculated that its investment in China Eastern would allow the airline to save at least CNY776 million yuan (USD$107 million) in annual interest expenses, and bring the two airlines around CNY5 billion annually in synergies from higher revenues and lower costs, China Eastern said.
The alliance would help to make Shanghai and Beijing major air transport hubs in northeast Asia, while boosting the airlines' competitiveness in global markets, CNAC added.
When shareholders voted on the Singapore plan, CNAC had already said it would offer to pay at last HKD$5 per share for a major stake in China Eastern, making the Singapore offer of HKD$3.80 per share look unattractive.
After the shareholder vote, China Eastern chairman Li Fenghua insisted he would not consider Air China as a strategic investor, saying an alliance with the flag carrier would not benefit his airline and he would continue pursuing the Singaporean tie-up.
Singapore Airlines, however, has responded ambiguously, saying it will not walk away from its deal but also that it will not get into a bidding war.
Further complicating the situation, Hong Kong's Cathay Pacific Airways, a partner of Air China, has said it is willing to support any bid for China Eastern by the Air China group, though CNAC's proposal did not mention Cathay.
Some China Eastern executives say they think CNAC may be content to use its proposal to block an alliance between China Eastern and Singapore Airlines, regardless of whether any part of its proposal is actually implemented.
"This is just a gesture," a China Eastern official, speaking on condition of anonymity, said of the proposal. He declined to comment on what the airline's formal response would be. (Reuters)
Jet Interested In bmi Majority Stake - Report
ndia's Jet Airways has approached unlisted British airline bmi's majority shareholder and chairman Sir Michael Bishop about the sale of his stake, a newspaper reported.
Jet expressed its interest before Christmas in conjunction with a Middle-Eastern airline, believed to be Emirates, the Sunday Telegraph report said, without naming its source.
The approach to Bishop, who owns 50 percent plus one share in the private company part-owned by Lufthansa and SAS, was made through a third party and no formal meetings have taken place, the article said.
Both Virgin and British Airways have previously expressed an interest in buying the stake, the paper said. (Reuters)
January 19, 2008
Best Air launches operations with Dhaka-Chittagong service
14 January 2008 marked Best Air’s inaugural passenger flight from ZIA International Airport Dhaka to Shah Amanat International Airport Chittagong.
The passenger flight launch was inaugurated by Mr. M. Haider Uzzaman the Chairman of Best Air, His Excelency Mr. Abdul Latif Ali Al Mawash Ambassedor of Kuwait and His Excellency Mr. Chatermpol Thanchitt Ambassador of Thailand.
The airline will operate four daily flights on the Dhaka Chittagong route, two flights from Dhaka to Chittagong and two flights back from Chittagong.
With valet service, individual customer care program, escort service, meal choice and unique online ticket reservation Best Air is set to become the predominant airline in BangladeshBA's longhaul flights back to normal after Boeing accident at Heathrow
British Airways is planning to operate all of its longhaul departures from London Heathrow and up to 90 per cent of its shorthaul departures today (Friday, January 18) but is strongly advising customers to check ba.com for the latest flight information before leaving home.
Due to the disruption on Thursday January 17 a number of aircraft, pilots and cabin crew are out of position and this is having a knock-on effect on some shorthaul services on Friday.
A number of flights into Heathrow will also be cancelled throughout Friday January 18. All flights to and from London Gatwick are expected to operate as normal.
Customers due to travel on a cancelled flights will also be able to refund or rebook their flights. This can be done via the airline's website or by calling British Airways.
"Any customers on cancelled flights are urged not to come to the airport as this will cause additional congestion," says BA in a statement.
BA has confirmed yesterday (17 January 2008) that a Boeing 777, registration GYMMM operating flight BA038 from Beijing to Heathrow was involved in an incident at Heathrow airport.
British Airways chief executive Willie Walsh said: "We are very proud of the way our crew safely evacuated all 136 passengers on board with only three minor injuries." There were three flight crew and 13 cabin crew on board.
Sheikh Ahmed opens three hotels in Dubai Festival City
His Highness Sheikh Ahmed Bin Saeed Al Maktoum, President of Dubai Department of Civil Aviation and Chairman and CEO of Emirates Group, has formally opened three luxury properties in Dubai Festival City at a ceremony on Thursday (January 17, 2008).
In the presence of officials, businessmen and hotel management, including the DTCM Director General, Mr. Khalid A bin Sulayem, His Highness Sheikh Ahmed cut the ceremonial ribbon to symbolically declare the luxury properties open to business. The hotel staff accorded a warm welcome to the VIPs.
Also present were Mr. Sultan bin Mejrin, Director General of Dubai Land Department, Mr. Juma bin Humaidan, Assistant Director General of Dubai Land Department, Mr. Issam Al Humaidan, Dubai’s Attorney General, and Mr. Eyad Ali Abdul Rahman, DTCM Executive Director Media Relations and Acting Director Business Development.
On arrival, His Highness Sheikh Ahmed was welcomed by Mr. Abdullah Al Futtaim, Chairman of Al Futtaim group, and Mr. Omar Al Futtaim, CEO of Al Futtaim Group, owners of the three properties and Dubai Festival City.
The elegant InterContinental Dubai Festival City, superior upscale Crowne Plaza Dubai Festival City and the lavish long-stay InterContinental Residence Suites Dubai Festival City are the latest luxury hotels to open in Dubai. All the three properties have been completed in just three years. The project is the largest in the history of IHG; having three properties open simultaneously within the same location is a first for the group.
Together with the two hotels and InterContinental Residence Suites Dubai Festival City, the group will offer more than 1,000 rooms within the multi-billion dirham Dubai Festival City development. Both the hotels are internally connected to the Festival Waterfront Centre, the 550 retail outlets and 90 restaurants and cafes are just a minute’s walk away. Two 18-hotel championship golf courses are also close to hand, as is a scenic stroll along the waterfront promenade, connecting to the 100 berth Festival Marina.
His Highness Sheikh Ahmed toured the 36-floor InterContinental Dubai Festival City which is a visually iconic example of modern architecture and offers stunning views of the city’s skyline, picturesque Dubai Creek and the new Festival Waterfront Centre. There are 121 suites, three Presidential Suites and one Royal Suite. The brand’s iconic Club Intercontinental is located on the 26th floor offering panoramic views of Dubai.
The Crowne Plaza Dubai Festival City is a 316-room property, including 16 suites and two Presidental Suites, is designed for business travelers.
The InterContinental Residence Suites Dubai Festival City has 212 stylish high-rise apartments, encompassing studios, one, two and three bedroom suites and a stunning royal suite spread over two floors with private elevator.
ITB Berlin relaunches website
Following an extensive technical and graphical relaunch the ITB Berlin is now ready with an updated logo and a revised website. “The internet is the most important instrument for communication and marketing for the ITB Berlin”, according to David Ruetz, Senior Manager and ITB Berlin Director. “Our aim is always to be one step ahead of the market and its requirements. That is why, in addition to visually redesigning the web pages new modules have been included and the navigation structure has been made easier to use. As a result all the various target groups can find the relevant information more quickly in their respective navigation areas. New features include improved, faster access via the newsticker, and quicklinks that give direct access to information about the ITB Berlin for specific target groups.”
The new download centre is yet another outstanding service. “With this download centre we can provide our customers with the basis for successfully marketing their appearance at the ITB Berlin”, says David Ruetz, emphasising the importance of this convenient service.
“The optimised web portal of the ITB Berlin is setting the standard at Messe Berlin, and will be introduced in turn as the websites for each of the company’s events are relaunched. In addition to an attractive new design we have also ensured that access is barrier-free”, explains Dr. Jana Dewitz, Divisional Director Marketing & Media at Messe Berlin.
The internet pages can now be read and operated by any user, including those with visual handicaps. The ITB Berlin website complies with the guidelines laid down in the “Barrier-free Information Technology Regulation” (BITV), making it largely accessible to people with various disabilities. Suitable text recognition programmes have also been introduced. “Another advantage of the barrier-free internet: in future content from the ITB Berlin portal can be easily displayed on mobile terminals”, says Dr. Dewitz, referring to some of the additional benefits of this development.
January 08, 2008
Emirates abandons SriLankan management, to retain 43.6% stake for the moment
Emirates has announced that it will not renew its existing ten-year contract for the management of SriLankan Airlines, the national carrier of Sri Lanka. The management contract expires at the end of Mar-08.
Tim Clark, President Emirates Airline and Managing Director Sri Lankan Airlines stated: "Emirates has notified the Government of Sri Lanka that it will not be renewing the Shareholder's Agreement which expires on 31st March 2008 and accordingly, with effect from 1st April 2008, management control of Sri Lankan Airlines will pass to the Government of Sri Lanka. Emirates will continue to manage the Company until 31st March 2008. Emirates will also retain its 43.6% equity in the Company for the time being, and continue to have a Board presence."
Revamped branding for airberlin
The airberlin group has revised it brand identity and launched a new advertising campaign. The repositioning of the airberlin group as a global business is associated with the group’s acquisitions, which is to be reflected in the airline’s image.
With immediate effect, the airberlin logo will be a combined mark, consisting of a figurative and a word element, and will be used internationally. The company name will be in lower case and written as one word. The colour HKS15 remains the same, but the font is now "Chalet airberlin". The new claim is: "airberlin. Genau deine Airline." (airberlin. Your kind of airline.)
The airberlin.com website has already been revised and features the new image. The first print advertisements will appear from 07-Jan-08. The outdoor advertising campaign will start on 11-Jan-08 in 21 German cities, as well as in Vienna and Zurich. The television commercials will run from 19-Jan-08. The first aircraft bearing the new livery will be rolled out in Jan-08, with the other aircraft being gradually updated throughout the year.
Joachim Hunold, airberlin’s CEO commented: "On account of our growth in recent years, passengers now benefit from a wider range of flights and a dense network within Germany, taking them to major cities throughout the world and to holiday destinations. Business travellers should feel just as comfortable on board as families, enjoying the same personal attention on longhaul and on short-haul flights. This makes airberlin the perfect airline for every passenger, meeting individual travel preferences and service expectations. The new branding emphasises this claim."
Monarch Airlines carries 3.7 million scheduled passengers in 2007
Monarch Airlines celebrated a record-breaking year carrying 3.7 million scheduled passengers during 2007, a 15.8% year-on-year increase.
The launch of eight new routes during the year helped passenger numbers surge with the introduction of Birmingham to Ibiza; London Gatwick to Ibiza and Murcia; London Luton to Almeria, Ibiza and Larnaca as well as Manchester to Ibiza and Jerez services.
Capacity increases on a number of popular routes and the launch of further new services in 2008 is expected to further stimulate growth for the airline in 2008. Following on from the successful launch of services from London Luton to Larnaca in Mar-07, the LCC will continue its expansion to the Eastern Mediterranean, as well as add a new service from Manchester to Murcia in Feb-08.
Passenger traffic for Dec-07 also improved 10.6% year-on-year to over 184,500 passengers.
ISLAND AVIATION GOES REGIONAL
Island Aviation has received operations permit from the Government of India to operate schedule flights to Trivandrum, India. Special ceremony was held on 07th January 2008 at Nasandhura Palace Hotel on 07th January 2008 to officiate the handing over of this permit to Island Aviation.
Executive Director at the Civil Aviation Department, Mr. Mahmood Razee handed over this permit to Island Aviation. Mr. Bandhu Ibrahim Saleem – Managing Director of Island Aviation received this on behalf of the company. Mr. Razee and Mr. Saleem made their statements at this ceremony. Mr. Mahmood Razee in his speech said, quote "IAS is an operating airline meeting the aeronautical requirements stipulated under the Maldivian Air Legislation. The choice of jet or turboprop for sector lengths of about 500km is fundamentally driven by economics. IAS by choosing to commence services with a turboprop airliner has also addressed some of the other elements of the business for this level of stage lengths” unquote.
Managing Director of Island Aviation, Mr. Bandhu Ibrahim Saleem stated in his remarks, quote “To realize our goal, we will continue to invest in our expansion this year as well” unquote.
The first flight from Male’ to Trivandrum will be operated on 25th January 2008. Dash8 aircraft will be used for this operation and daily flights will be operated between Male’ and Trivandrum. All the departures from Male’ will be at 1530 hrs everyday.
AIRPORT NEWS
Indian government seeks low airport fees
The Indian government has asked private companies developing new airports at Hyderabad and Bangalore not to make flying out of them prohibitively expensive for passengers.
Agreements currently in place allow an airport development fee of US$17 to US$23 to be charged per passenger, however the aviation ministry has requested that the GMR and Siemens Project Venture-led consortias wait until the delayed Indian Airport Economic Regulatory Authority (see: Regulator planned for India’s airports) is in place to decide on a more ‘reasonable’ amount.
With fuel and congestion surcharges and other fees plus rising fares, the cost of flying from these airports could potentially become too expensive for passengers. “As it is there are serious connectivity issues. With road networks still incomplete, the airports are nearly a two-hour drive away from the cities and are costlier to get to. If in addition, passengers have to pay up to US$25 (Rs 1,000) more for flying out, the reaction could be adverse,” says a senior official
Mumbai airport to be revamped by year-end
The Mumbai state Government has prioritised US$13.2 million for a facelift of Chhatrapati Shivaji International Airport.
The project will be undertaken by airport operator, Mumbai International Airport (MIAL), and will be carried out in two phases: Phase one will see the upgrade of Terminal 2A and phase two will renovate Terminals 2B and 2C. Phase one is scheduled for completion by the end of this year.
The programme also includes upgraded runways, 106 aircraft parking stands, 51 boarding bridges and 316 check-in counters.
Changi seeks stakes in overseas airports
Changi Airports International, the overseas investment unit of Singapore’s main airport operator, plans to buy stakes in as many as 15 airfields, says chief executive officer Chow Kok Fong.
Chow says the company aims to manage US$700 million of airport assets within the next three years and that overseas revenue in five years may climb to as much as 20% of sales from less than 5% now.
The company wants to tap growth in the Middle East, China and India, where governments are upgrading airports as more people fly. Global passenger air traffic is projected to jump 29% by 2011, threatening to overwhelm airports, according to an October 2007 forecast by the International Air Transport Association.
The company secured its first direct investment in China last month, acquiring a 29% stake in the Nanjing Lukou International Airport for US$138 million. Funding for future purchases will mainly come from its parent, says Chow.
“We are looking at several deals, which we hope will crystallise over the next three years,” he adds. “A lot of the growth that we expect in China will come from the central and western region. So, we will be spending a lot of our efforts in that region.”
China Scurries To Contain Mice On United Flight
The United States, concerned about tainted imports from China, has exported its own batch of potentially harmful goods to Beijing in the form of mice on a flight from Washington, state media said on Tuesday.
Chinese inspectors found eight mice, dead and alive, on a United Airlines flight to Beijing after the airline reported the stowaways to local quarantine officials upon landing on Sunday afternoon, Xinhua news agency said.
The report prompted an "emergency team" to rush to the aircraft, Xinhua said, to "put rat poison and mouse traps at every possible corner on the aircraft, including the cockpit".
"Eight mice, dead and (alive), were found at last... hidden in pillows," the agency said.
The surviving mice were sent to labs for testing, it said.
The incident was reported in most newspapers on Tuesday, citing experts warning of dozens of fatal viruses that the mice could spread, and the risk of deadly accidents from them chewing through the plane's wiring and circuits.
"We are taking this matter seriously and have begun a full investigation with the authorities to determine how this happened and ensure it is resolved," United Airlines said in a statement.
"It would be inappropriate for us to comment further at this stage as the investigation is currently under way."
China has been rocked by a number of quality scandals involving food, toys and drugs in recent months, but has repeatedly accused foreign media of biased reporting, while making a point of naming foreign companies it claims have sub-standard product problems. (Reuters)
China Eastern Shareholders Sink Singapore Air Deal
China Eastern Airlines shareholders rejected a deal to sell a 24 percent stake to Singapore Airlines for USD$920 million, opening the door for bigger rival Air China to make a play for the country's third-largest carrier.
Analysts say loss-making China Eastern, squeezed by record fuel prices, would return to the negotiating table with Singapore Air and its parent Temasek to try and get a better deal.
A less favored option would be to submit to the Air China group's advances.
Singapore Airlines, the world's most profitable airline, which had hoped to gain access through the acquisition to China's fast-growing air travel industry, said in a statement it was disappointed but would continue to build a relationship with China Eastern.
The collapse of a deal two years in the making and blessed by the Beijing government highlights the unpredictability of a Chinese corporate scene that usually bows to politics.
Cathay Pacific, which already has an alliance with Air China, has bolstered the airline's case by saying it would seriously consider teaming up on a joint investment in China Eastern.
"There's not much difference between domestic airlines in terms of management expertise and branding," China Eastern Chairman Li Fenghua told reporters after minority shareholders torpedoed the Singapore Air deal.
"In this case, one and one would not equal more than two."
Air China's parent, China National Aviation Corporation (CNAC), has said it will submit a rival offer for China Eastern within two weeks.
The battle over an airline that has made losses in three of the past five years underscores the lure of an industry dominated by three players but which is growing at more than 16 percent a year ahead of this summer's Beijing Olympic Games.
"Air China seems committed to making a higher bid. But Singapore would have brought a lot of international management expertise to China Eastern," said Kelvin Lau, analyst at Daiwa Institute of Research.
CNAC, which owns 3.9 percent of China Eastern but which has more than 12 percent of its Hong Kong stock, had argued for weeks that the sale to Singapore was being done on the cheap -- a perennial worry among domestic investors fearing a fire-sale of Chinese assets to foreign firms.
Shares in China Eastern and Singapore Airlines were suspended on Tuesday, pending the vote. Air China ended the day down 3 percent as investors cashed out of its recent rally.
Days ahead of the vote, CNAC had signaled it would try to derail the agreed HKD$3.80 per share sale to Singapore Air, saying it would offer at least HKD$5 a share. Singapore Air and China Eastern insisted their deal was fair at six times the airline's end-2006 book value.
Analysts say Air China feared the creation of a strong competitor based in the commercial hub of Shanghai -- where Air China is traditionally weak.
Some said investors may now favor a tie-up between China Eastern and Air China, the world's most valuable airline by market capitalization, especially if Cathay gets on board.
Others said Singapore Airlines and Temasek could be persuaded to return to the table with a sweetened bid.
"With the deal vetoed, SIA's out of the picture for the time being. Obviously, that's a positive for both Cathay Pacific and Air China -- less competition," said CLSA analyst Adrian Lowe.
"My sense is they'll probably give up, given how things have played out, (but) some minority shareholders from China Eastern are hoping for a bidding war." (Reuters)
AirAsia launches direct flights to Yogyakarta
Beginning 30 January 2007, AirAsia will commence direct flights to Yogyakarta, Indonesia from Kuala Lumpur, documenting its entry into its 13th destinations in Indonesia. The Airline of the Year 2007 has the most extensive service into Indonesia sprawling across cities such as Bali, Balikpapan, Banda Aceh, Bandung, Batam, Jakarta, Medan, Padang, Palembang, Pekan Baru, Solo, Surabaya and now Yogyakarta.
AirAsia will begin with four (4) flights per week to Yogyakarta departing from LCC Terminal, Kuala Lumpur on Monday, Wednesday, Thursday and Saturday. The airline’s new 180-seater Airbus A320 will be deployed for the route.
Yogyajarta is a city with outstanding historical and cultural heritage. Renowned for being the centre of classical Javanese fine art and culture, Yogyakarta is also known as one of Indonesia’s most important centres for higher education. A visit to Kraton, the Royal Palace of the Sultan, will have one mesmerized with Gamelan, the beautiful Javanese traditional music and Ramayana ballet.
Tony Fernandes, Group Chief Executive Officer of AirAsia, said, “Yogyakarta has long been on our list of destinations that we want to fly to and it certainly adds value to our route network. The new service into Yogyakarta augurs well for both countries in promoting the exchange of tourist, labour, and small and medium enterprise traffic. In addition, year 2008 marks an exciting year for Indonesia as it is Visit Indonesia Year and we are excited to be able to play a key role in promoting the beautiful city and people of Yogyakarta to the rest of the world.”
“By means of AirAsia’s extensive route network in ASEAN, amazing low fares and high safety standards, we are optimistic in boosting tourism economy for all the countries we fly to, and specifically in this case, we are also looking forward to strengthening our domestic routes in Indonesia via our hub in Jakarta.”
easyJet to maintain one bag rule
The Government recently announced that on 7 January 2008, the restriction of one piece of hand luggage will be lifted at 22 of the UK’s airports. This will leave 40 key commercial airports with the one bag rule still in place, including easyJet bases at Belfast, Bristol, East Midlands, Liverpool and Luton. In addition, some of the BAA airports, notably Gatwick, have applied to the CAA for a price increase.
easyJet has decided to maintain its policy of allowing each UK departing passenger to carry one piece of hand baggage (dimensions up to 55x40x20cm with an unlimited weight allowance). Passengers are advised to check this website for more information on baggage allowances, but can be assured that by following this simple policy, they can continue with their journey as normal.
Andy Harrison, easyJet’s Chief Executive, commented: “There is massive scope for customer confusion in an environment where UK airports are adopting different policies. The only way to maintain a simple and standard policy is to maintain our one bag policy.”
“Also some of the major BAA airports are using the relaxation of the one bag rule as a pretext to further increase passenger charges. They increased charges when the restriction was introduced and now they want to increase charges again to remove it! easyJet will continue to resist such attempts and calls on the CAA for its full support”
Singapore Airlines starts operations at Changi Terminal 3
On 9 January 2008, Singapore Airlines will be the first carrier to operate from Changi Airport Terminal 3. Operations will start close to noon, with SQ 001 being the first flight scheduled to arrive at the new terminal at approximately 1150 hours.
SQ 318, bound for London, will be the first flight to depart from Terminal 3 at 1250 hours. Terminal 3 check-In counters will be operational from 0900 hours. All passengers departing Singapore for the UK will leave from Terminal 3.
With effect from 9 January, Singapore Airlines will operate from both Terminals 2 and 3, and the commencement of services from the new terminal marks an expansion of Singapore Airlines operations at Changi Airport.
“The addition of Terminal 3 is another jewel in the crown for Changi as it cements its position as a leading international hub. Singapore Airlines is excited to be part of its growth, and we are confident that the new terminal will complement our operations at Terminal 2,” said Singapore Airlines Senior Vice President Product and Services, Yap Kim Wah.
“Customers will now enjoy the benefits of having access to two world-class terminals – state-of-the-art facilities, modern design, thoughtful service and of course, more choice.
Needless to say, we are extremely honoured to be the first airline to start using Terminal 3, and we’re sure our customers are equally looking forward to being the first to enjoy such a world-class facility,” said Mr Yap.
With the expansion of services, customers departing from Changi Airport will check-in at Terminal 2 or 3 for their flights, depending on their destination.
Flights may arrive at either Terminal 2 or 3, and information on the arrival terminal will be available at least 2 hours prior to the estimated arrival time.
Jet Airways launches new direct flights to Muscat and Doha
Jet Airways announced the launch of its daily direct flights to Muscat from Kochi and Kozhikode (Calicut) and Doha from Mumbai and Kozhikode. With the introduction of these flights, Jet Airways will expand its Gulf route network, effective January 23, 2008.
Jet Airways will introduce its service on the advanced Boeing 737-800 aircraft on these sectors. With the induction of these new flights Kozhikode will be the second city in Kerala to be connected by Jet Airways’ international services to the Middle East.
Announcing the launch of these new flights, Mr. Sudheer Raghavan, Executive Vice President - Commercial, Jet Airways said, “The introduction of Jet Airways’ operations to Muscat and Doha is part of a well planned strategy of the airline to expand its international operations in the Gulf region.”
