AirAsia expands

fleet further

Southeast Asia';s budget airline, AirAsia, is set to increase its fleet with 50 more Airbus A320s, making it Airbus'; largest customer by far. Despite initial problems concerning the delivery of Airbus models to several other airlines, including Thai Airways and Singapore Airlines, this is a positive turnaround for the European plane developer.

The acquisition of 50 more planes by Malaysia';s budget carrier, plus an additional 50 on option, doubles its fleet to 200 and strengthens the Malaysian airline';s presence as regional leader in this world region. AirAsia';s Group Chief Executive Officer, Dato'; Tony Fernandes, commented, "Our growth from two to 50 planes is a testament that we have a winning product – low fares and quality flying experience."

This wave of modernisation and decisive fleet expansion is set to continue when low-cost, long-haul budget service AirAsia X, operated by FlyAsianXpress and controlled by the major owners of AirAsia, launches in July. According to early reports, AirAsia X will begin operating flights to Australia, Europe, China and India, piling the pressure on state-owned rival Malaysian Airlines.

Fernandes said, "AirAsia has proved to be an outstanding success in pioneering the low-cost airline concept in the dynamic Asian market", and added that the new fleet will "boost efficiency, enhance reliability, reduce costs and provide higher service levels to our guests (passengers)".

Eurostar winning passengers

Figures show 7.85 million people opted to travel by Eurostar in 2006, up 5.4 per cent on 2005 and sales peaked at around UK£518.3 million (US$1 billion), an increase of 11.7 per cent. Punctuality stood at an impressive 91.5 per cent, significantly outdoing airline competitors on the London to Brussels and Paris routes which, according to latest figures, stands at just 70 per cent.

2007 looks to be another significant year for Eurostar. The launch of a new London terminus at St Pancras in November will see journey times cut by as much as 25 minutes. It will also open up connections to other parts of the UK welcoming millions of new travellers. Brown said, "We are increasing traveller numbers both in and beyond our three core countries… making more progress in attracting more travellers from across Western Europe."

Australia received recognition from the travel and tourism industry recently when it was voted top Country Brand by the annual Country Brand Index 2006 (CBI), beating both the USA and Italy. In the same poll, China, Croatia and the United Arab Emirates were cited as "rising stars" that would prove to be popular travel destinations for tourists over the next five years.

The global study, developed by brand consultancy FutureBrand and PR firm Weber Shandwick, questioned 1,500 travellers and industry professionals on a number of factors including brand effectiveness, up-and-coming travelling trends and opportunities on offer in the travel sector.

The study also emphasised how important tourism is to a country';s economy. Rina Plapler, Executive Director of FutureBrands, commented, "Governments should be focusing more attention on how their destinations not only market themselves, but also influence and improve the experience for every visitor."

Airport activity
at a high

Crowded airports may soon be a thing of the past as major projects to expand some of the world';s busiest airports get underway.

With the new Beijing Airport due to open in 2008, China also plans to spend more than UK£8 billion (US$15.7 billion) on building 40 other new airports by 2010. Dubai too is keen to capitalise on its plans for expansion, claiming it will soon be home to the world';s largest airport, able to deal with 120 million passengers a year.

In the UK, London Heathrow';s Terminal 5 is also a year away from completion.

Travel Update

A Chinese airline has made some interesting calculations regarding fuel wastage in light of concerns over carbon emissions. A recent survey cited that it takes one litre of fuel to flush a toilet at 30,000 feet and a one kilogramme load of passenger blankets and pillows consumes 60 tonnes of fuel each day. The airline is now looking into cost saving alternatives.

An open skies agreement between Brunei, Indonesia, Malaysia and the Philippines is due to commence in 2008. The agreement is an aviation milestone for the Association of South East Asian Nations (Asean) and will permit an unlimited amount of flights between the four nations.

A senior Chinese official has revealed that the country is in the process of introducing sophisticated technology in 147 of its airports that will enable authorities to detect liquid explosives. The new technology is one of the many security measures China will be instigating in a bid to counter terrorism during the 2008 Olympics.

A slump in crude oil prices has prompted British Airways to lower its fuel surcharges on a number of long-haul flights that are less than nine hours, despite the company';s cost concerns. However, charges on flights over nine hours will remain at UK£35 (US$69) as will the surcharge of UK£8 (US$16) on 87 short-haul flights.

Lufthansa reported another record year in 2006 thanks to a new company strategy. The group managed to carry over 53.4 million passengers on 664,382 flights covering 200 destinations. Sales also rose by two per cent and the group posted above-average growth at the end of the year.

A French television reporter has sparked controversy recently by boarding both American and French passenger planes with "de-activated" explosives and knives. Aided by a security expert, he managed to smuggle material onboard revealing serious flaws in airport security.

India';s largest domestic airline, Jet Airways, looks set to extend its international operations. In October, the airline plans to offer regular flights to the USA, adding Newark, New Jersey and San Francisco via Shanghai to its list of destinations. This follows the launch of flights to Bangkok, effective at the end of January.

Brazilian airline, Varig, a former member of the Star Alliance group, is to change its name to Nordeste. Massive debts and escalating fuel costs left the airline in financial difficulty in early 2006 but it was saved by VarigLog, the air cargo business that bought Varig in July for a purported US$24 million.

Thanks to reduced fuel costs, Thai Airways is expecting an 11 per cent profit increase in 2006/2007. The airline company has already enjoyed a rise in net profit (32.6 per cent in 2006), raking in THB8.99 billion (USD250.3 million).