AVIATION

Traffic slowdown continues

Hanoi - The International Air Transport Association (IATA) released international traffic data for August that confirmed a continuing downturn.

International passenger demand growth slowed to 1.3%, following disappointing growth of 1.9% in July. Passenger load factors fell to 79.2% a sharp drop-off from the 81% recorded during the same period last year as capacity growth outpaced demand.

International freight traffic saw its third consecutive month of contraction with a 2.7% decline following drops of 1.9% in July and 0.8% in June.

“Passenger traffic grew by 5.4% in the first half of the year. That slowed to 1.9% in July and 1.3% in August. The contrast between the first half of the year and the last two months is stark,” said Giovanni Bisignani, IATA’s Director General and CEO.

“The slowdown has been so sudden that airlines cannot adjust capacity quickly enough. While the drop in the oil price is welcome relief on the cost side, fuel remains 30% higher than a year ago. And with traffic growth continuing to decline, the industry is still heading for a US$5.2 billion loss this year.”

Air freight has declined for the past three months, led by Asia Pacific carriers that posted a 6.5% decline in July and a 6.8% decline in August. “Airlines carry 35% by value of the goods traded internationally.

The three-month decline - led by weakness in Asia-Pacific markets - is a clear indication that global trade is slowing down.

This shows that the impact of the financial crisis is broad geographically and will worsen before it gets better,” said Bisignani.

Asia Pacific carriers reported a 3.1% contraction, following a 0.5% decline in July.

Economic distortions surrounding the Olympics in China and a weakening Japanese economic outlook contributed to the decline. While some recovery in this weak performance is expected in coming months, clearly the region’s economies are feeling the impact of the turmoil in the financial markets.

August is usually the second strongest month of the year, but the 79.2% load factor achieved was 1.8% points lower than last year although scheduled capacity is planned to slow very sharply to the point where it barely grows by the end of the year.

The 6.8% decline in international freight shipped by carriers in the Asia Pacific region had the greatest impact as they comprise 45% of the global air cargo markets.

Attractive fares to Singapore from Cathay Pacific

Singapore, the Lion City with its multiple attractions of the Night Safari, Senthosa Island and endless shopping is made all the more scintillating with special fares announced by Cathay Pacific.

The amazingly economical fares make Singapore irresistible to frequent business travellers and leisure travellers alike, particularly those who are accompanied by their spouse, because then the return fare is only LKR 32,500 per person while individuals have to pay just a thousand rupees extra.

The offer is valid up to end of November and excludes taxes.

Ms. Ruhan Abbas, Sales & Marketing Manager for Cathay Pacific Airways Colombo speaking of the Special Singapore Package said: “To qualify for this advantage, two passengers must travel together outbound. It is ideal for the businessman who wants to give his wife a treat, or even for business travellers who need to travel together as well as individual flyers. Singapore in any case is a great city to enjoy a relaxing holiday.”

Boeing sees Asia becoming biggest aviation market

The Asia-Pacific region is expected to become the biggest aviation market in the world within about a decade, a senior official at US airplane maker Boeing said Tuesday.

As a result of the rapid growth of emerging markets, the centre of the aviation industry is shifting from North America towards Asia, said Randy Tinseth, Boeing’s vice president in charge of marketing.

“Today the world’s largest market is the North American market,” he told reporters in Tokyo.

“But this is a mature and slow-growing market, and as we look towards the future in about 10 to 12 years’ time, the Asia-Pacific ... will be the biggest marketplace in the world,” he said.

Japanese airlines are among the most loyal customers of Boeing, which has tapped some of the Asian economic power’s major industrial companies to take part in production of its 787 Dreamliner

But Boeing has been forced to repeatedly delay delivery of the next-generation airliner due to production problems.

Japan Airlines, Asia’s largest carrier, said earlier this month that it expected to receive its first Dreamliner in October 2009, more than a year late.

All Nippon Airways, the launch customer for Dreamliner, expects to get its first delivery of the airplane in August 2009, 15 months behind schedule.

Boeing has staked its future on the Dreamliner, but an ongoing strike by machinists at the company poses a risk of possible further delivery delays.

Boeing officials said Tuesday that they would reassess the delivery schedule for Japanese carriers after the strike ends.

TOKYO, AFP

Emirates scores in Asia Pacific

Dubai-based Emirates Airline has added another set of highly coveted accolades to its impressive trophy collection, winning the ‘Best Middle East/African Airline’ award at the 2008 Business Traveller Asia-Pacific Awards, Hong Kong, and the ‘Best First Class’ title at the Golden Wing Awards 2008, Shanghai.

Over 400 travel and hospitality professionals celebrated Emirates’ triumph as it notched up its eighth consecutive ‘Best Middle East/African Airline’ prize title at the Asia Pacific region’s most prestigious travel and tourism industry event, held in Hong Kong.

The airline’s ultra-luxurious First Class product also received top honours at the 2nd Golden Wing Awards held in mainland China, and co-founded by the Oriental Morning Post and the globally authoritative magazine, Travel + Leisure (Chinese edition).

The awards reveal the results of annual votes polled by readers and frequent travellers.

Richard Vaughan, Emirates’ Senior Vice President, Commercial Operations, East Asia & Australasia said: “Emirates is delighted to win these two prestigious awards as it reflects a vote of confidence from our customers in the Asia Pacific region.”

Emirates serves the region with 149 weekly flights to 18 destinations. In the financial year 2007-08, the region contributed approximately 30% of the airline’s revenue, demonstrating its significance to Emirates’ overall business.

Richard added: “In the fiercely-contested air travel segment, seat comfort, inflight entertainment, cabin crew service and network connections are key differentiators. We intend to stay ahead of the game with ground-breaking products and services and a constantly-expanding international network.”

Emirates offers its Asia Pacific customers connections to 28 gateways in the Middle East and Africa. The airline has invested over AED 180 million to introduce an enhanced version of its First Class product.

Its pioneering First Class private suites feature a fully-flat bed with in-seat massage, dine-on-demand room service, in-suite personal mini bar, and sliding doors for the ultimate in privacy. New, luxury amenity kits, containing exclusive products by Bvlgari, are now offered to passengers on long-haul flights travelling from/to the Asia Pacific region.

Emirates has won top honours this year including the ‘World’s Best Airline Inflight Entertainment 2008’ from Skytrax; ‘Best Air Cargo Carrier Middle East’ (for the 13th consecutive year) from Cargo News Asia’; and the ‘Best Middle East Cargo Airline’ (for the 20th consecutive year) from Air Cargo News.

 Airlines face DGCA action

The massive reduction in domestic flights in past few months is now triggering serious regulatory issues. Some airlines have cancelled flights - hence freeing up precious slots at choked airports like Mumbai - without informing the government.

As a result, other airlines who would have been willing to introduce flights on those freed up slots have not been able to do so. Things have reached such a state that the Directorate General of Civil Aviation (DGCA) has started issuing notices to airlines for the failure to inform about flight withdrawals.

A senior official of a south India-based airline complained that they were willing to operate flights to Mumbai but were not able to do so as the slots were all taken on paper.

Times of India

Asia Miles named ‘Best Frequent Flyer’
 

Director Sales and Marketing of Cathay, Barrington , receiving the award from Hong Kong Celebrity, Frances Yip.

Asia Miles named Best Frequent Flyer Programme for third year in a row Business Traveller (Asia Pacific) magazine has named Asia Miles as “Best Frequent Flyer Programme” for the third consecutive year.

The award ceremony, regarded as one of the regional travel and tourism industry’s most prestigious events took place in Hong Kong last week with local celebrity Frances Yip presenting the honour to Director and Marketing James Barrington.

General Manager Cathay Pacific Loyalty Programmes, Paul Loo, said: “We are honoured to receive this award. Being named as Best Frequent Flyer Programme by business travellers in the region is a major endorsement of our efforts to provide the best product and services to our members.”

The award results are based on an annual poll of Business Traveller readers, conducted and analysed by an independent market research agency.