Opportunities Today :- June 2004 Issue

TRAVEL AND HOSPITALITY


Britain's Queen Elizabeth names new Virgin airliner

QUEEN ELIZABETH has named Virgin Atlantic Airway's latest Airbus A340-600 "Queen of the Skies" at a ceremony at the Airbus factory in Toulouse, France. The Queen has named and launched ships in the past including Cunard's cruise liner the QE2, but this is the first time she has named an aircraft.

The ceremony was part of a state visit to France to celebrate the centenary of the Entente Cordiale. The original Entente Cordiale agreement was signed in April 1904. "Queen of the Skies" celebrates the Airbus A340-600's size - the longest commercial aircraft in the world - and status as the most significant example of the historic links between the British and French aviation industries. The aircraft is almost precisely 50 per cent British built. The engines are built by Rolls Royce in Derby and the wings manufactured by Airbus-UK. Other parts and final assembly takes place at Toulouse. Virgin Atlantic operates one of the world's youngest fleets of aircraft. With the addition of "Queen of the Skies" the fleet comprises 29 aircraft, thirteen Boeing 747-400s, nine Airbus A340-300s and seven A340-600s. 


Emirates Airline sinks roots in Singapore

DUBAI-BASED Emirates Airline is investing S$1 million (US$598,000) in a new passenger lounge and new offices in Changi Airport and in the city area of Singapore. Emirates has already started flying non-stop from Dubai to Sydney, bypassing Singapore and in June, it will start direct flights from Dubai to Melbourne as well. The new generation of long-range aircraft such as the Airbus A340-500 that make such flights possible, has been seen as a threat to Changi's air hub status. Emirates continues to operate 36 flights a week out of Changi. Changi is in the running as a potential stopover when Emirates starts flying the new jumbo Airbus 380 in 2006. One of the emerging routes would be Dubai-Singapore -New Zealand -US-Dubai.


Asia's airports and airlines are world's best, survey finds 

ASIA'S airlines and airports emerged as world's favourites, according to a recent survey. Skytrax, a UK-based aviation consultancy firm, surveyed 4.8 million airline passengers from 86 countries over a 10-month period to March this year for that it calls "the global barometer of passenger opinions." In the airport category, Skytrax found that Asia's airports excel above others, with four spots in top five alone. Hong Kong International Airport continued its winning streak in the poll, taking first place for the fourth consecutive year, followed closely by Singapore's Changi International Airport. Skytrax indicated that the final result was one of the closest in years. Amsterdam's Schiphol jumped from last year's seventh place to finish third-best airport in the world. Rounding up the Top Five in fourth and fifth place respectively were Seoul Incheon Airport and Kuala Lumpur International Airport. Respondents ranked the airports based on the usability and comfort of airlines. 

Meanwhile in the airline category, Asian carriers once again performed well, occupying five of the top 10 positions. According to Skytrax, three airlines constantly battled for the top spots-- Emirates was on top throughout December and January - Cathay Pacific did so in September, October and February - and Singapore Airlines led in March 2004. Qantas moved one position up in this year's survey to claim the fourth spot, and Thai Airways jumped from 8th in 2003 to fifth position in the 2004 results.

British Airways sixth position reflects no change from 2003 - while Qatar Airways jumps from 24th last year to take seventh position. 
Malaysia Airlines slipped from 4th in 2003, to occupy eighth position in this year's Survey, ahead of Continental Airlines in ninth (up from 13th in 2003), and ANA All Nippon Airways in 10th - ANA breaking into the top 10 from 11th position in 2003. The survey format was based on asking passengers to name Best in Category airlines from a qualitative aspect - encompassing the quality of front-line product and service in both airport and onboard areas.


Defibrillators now required on airliners

Most commercial airplanes now must have cardiac equipment on board to help passengers who suffer heart attacks as per the new Federal Aviation Administration rule, which affects about 2,600 airliners routes in U.S. Airliners staffed with at least one flight attendant must have the device, known as an automated external defibrillator. Some already carry the equipment. In 1998, a Boston man became the first person on a domestic flight to have his life saved by a defibrillator. Defibrillators have already become standard equipment, like fire extinguishers, in many airports, convention centers and health clubs. The equipment can monitor a victim's heartbeat and shock the heart back to a normal beat. Chances of survival are 90 percent if defibrillation is provided within one minute of the attack.

The FAA found that there were 119 cardiac-related events aboard aircraft resulting in 64 deaths between July 1, 1998 and June 30, 1999. During that period, automatic defibrillators were provided 17 times, saving four lives as per a spokesperson of FAA. Each year, about 250,000 Americans die from cardiac arrest. About 20 percent occur in public places, and 95 percent of victims die before reaching the hospital


SIA fights through SARS to post S$849.3 million profit for year 

Singapore Airlines Group reported a net profit to shareholders of S$849.3 million ($491.6 million) for the fiscal year ended March 31. 
This was a 20.1% decline compared to net profit of S$1.06 billion in the prior year but a remarkable performance nonetheless given the dislocation caused by SARS in the first half of FY04. SIA said the outlook for the 2004-05 financial year is "mixed." Long-haul business looks "promising," it said, but short-haul regional operations will face "keen competition" from the four low-cost carriers that are expected to begin operations this year and the growing number of low-fare airlines in neighboring countries, which will lead to increased pressure on yields.


Japanese tourists pick Philippines among world's best dive sites

THIS year has proven to be yet another triumphant year for Philippines' diving spots, as the country bagged major awards during the recent Marine Diving Fair 2004 in Ikebukuro, Tokyo, Japan. The Marine Diving Fair is an annual event organized by the Marine Art Center Co. Ltd. This year, the event attracted some 295 organizations and 250 booth exhibitors. More than 50,000 divers and consumers from all over the world came for the three-day fair to gather the latest information on scuba diving, dive destinations and resorts. The Philippine Department of Tourism expects the influx of Japanese tourists, specifically the diving enthusiasts, to the Philippines after the country garnered several awards from Marine Diving Fair, Japan's biggest scuba diving and beach resort travel consumer event.

The Philippines was once again at center stage as it bagged various awards which include the "Best Diving Areas, Overseas" where the country landed in top three spots. Other awards were the "Best Diving Resort Hotel, Overseas" given to Cebu Pacific Resort (2nd place) and Cebu Tropics Resort (6th); "Best Dive Operator, Overseas" awarded to Blue Coral (2nd) and Pacific Cebu Divers (3rd); and, "Best Place for Photography" awarded to the Philippines (6th). Japan remains to be a top market for the Philippines in terms of tourist arrivals.Tourism Attaché to Japan Benito Bengson said the awards clearly showed that the Philippines continues to be a competitive and a popular dive destination in the region among the Japanese.

 

India attains double-digit increase for April

INDIA'S tourism officials are thrilled at the 30.4 percent increase in foreign tourist arrivals that the country has recorded in April 2004, compared to April 2003. During Jan-April 2004, India welcomed 1.17 million visitors, a 24.1 percent boost over the same period last year. Foreign exchange earnings showed 35 percent increase, at US$1.53 billion. This success is being attributed to the advertising campaign 'Incredible India' being circulated in key markets, tourism infrastructure improvement, as well as the recent peace accord with Pakistan.


New initiatives have been taken, which have helped the arrivals, as has the greater air capacity, and an open sky policy. The private sector is optimistic about the arrivals in the coming season. Hotel discounts can once again be expected, and travel agents associations and hotels have come to an agreement to avoid possible overbookings. An increase in China-India traffic is also expected in the coming months. With the recently held elections and change in the government at the Centre, it is only a matter of time one would know whether the current trends would continue or not, based on the new government's policies.

 

Surcharges by Airlines to counter fuel price hike

BRITISH AIRWAYS is adding a surcharge on all tickets on its network, to pay the higher cost of oil. The fuel surcharge applies to all fares sold across the British Airways' global network. In all markets outside of the UK a surcharge of US$4 per flight sector will be added. British Airways will add £2.50 per flight sector (£5 return trip) as a fuel surcharge to its fares in the UK with effect from May 13. Due to the continuing fluctuations in the price of oil British Airways will review this surcharge on a regular basis with a view to adjusting it when appropriate. The rise in crude oil prices, to US$40 adds almost US$100 million to BA's annual fuel costs. BA's competitors have been slow to follow suit. The low price airlines, easyJet and Ryanair, have said they have no plans for a surcharge or fare increases because of the extra cost of aviation fuel. With margins already tight, with a price war among European budget airlines, a fuel surcharge could deter passengers and cut their critical market share. 

The Australian flag-carrier, Qantas, is imposing surcharges on tickets. It is adding AUS$6 (£2.30; US$4.20) to the price of domestic flights and AUS$15 on international routes. The airline said fuel had gone up in price by 57 percent in the past year. The German airline, Lufthansa, has added surcharges on its cargo services, but not on passenger tickets. The Scandinavian carrier, SAS, said it was looking at prices in the light of increased fuel costs.


EU enlargement will spur growth in travel and augurs well for Lufthansa

ENLARGEMENT of the European Union, effective from May 1, will boost mobility and growth in travel, according to Lufthansa Chairman Wolfgang Mayrhuber. 

In a letter to heads of government of the ten new EU states, Mayrhuber says, “Modernization of transport infrastructure and the role of air transport in particular will continue to grow. Lufthansa and the Star Alliance are well-positioned for the larger Europe.” The expansion of the European Union offers everyone more possibilities. Mobility is the basic prerequisite for economic development within Europe and to and from Europe. People must meet and goods need quick transport routes if they are to be sold,” wrote Mayrhuber. With the expansion on 1st May, Germany will become the centre of Europe and the two Lufthansa hubs in Frankfurt and Munich will become even more important. Air travellers will benefit directly from the EU extension, since with the full-membership of the ten accession countries, the legal transport restrictions which used to apply to them cease to be valid. 

Today, Lufthansa is the market leader in Eastern European traffic. The summer timetable 2004 continues this trend. Since March, Lufthansa has been serving Krakow and Poznan from Munich, flight connections to Tallinn are offered from Frankfurt. With the EU extension on May 1, Gdansk and Bratislava will then also be included in the route network. Both East European metropolises will be served from the Munich hub. With the admission of the Polish LOT to the airline alliance last year, as well as the extension of the Eastern Europe route network, the course was set at an early stage for 'more mobility and more growth'.. 

Lufthansa has further improved its traffic performance in a successful start in 2004: In the first quarter, the Group carried more passengers, transported more freight and returned better load factors in all traffic regions. In the first three months of 2004, about 11.4 million passengers flew with the Group's airlines, an increase of 7.5 on the first quarter in the previous year. Available capacity rose by 7.7 percent. A two-digit increased pushed sales up by 10.8 percent. Capacity utilization rose accordingly by two percentage points to 72.6 percent.


Note : Airline & Hospitality Industries are ever changing Industries. Hence, whatever published in this segment may be subject to amendments/ alterations