The 787th Dreamliner is ready for China Southern

Report by : Gan Yung Chyan
Pictures by : Cheng Chang Hsieh
Distributed to All Press & Travel Professionals

Boeing has completed the painting of its 787th Dreamliner which will be delivered to China Southern Airlines.

Royal Brunei Airlines resumes flight to Kuching on 28 December 2018 with A320neo

Report by : Gan Yung Chyan
                  / KUCINTA SETIA
Distributed to All Press & Travel Professionals

Image courtesy : Airbus

Royal Brunei Airlines resumes scheduled flight to Kuching from Bandar Seri Begawan on 28 December 2018. The resumption flights are operated by its first A320neo aircraft. Initially, flights will be operated on Mondays and Fridays at 11.45 pm under BI857 to Kuching, arrive in Kuching at 1 am before taking off under BI858 at 6.55 am and landing in Bandar Seri Begawan at 8.20 am on Tuesdays and Saturdays.

From 3 February 2019, the Bandar Seri Begawan - Kuching frequency will increase to four times weekly with additional return flights on Thursdays and Sundays as follows:-

Flight BI855 departs from Bandar Seri Begawan for Kuching at 7 pm, arrives in Kuching at 8.15 pm before leaving Kuching for Bandar Seri Begawan at 9.05 pm and arriving in Bandar Seri Begawan at 10.30 pm under flight BI856.

Royal Brunei Airlines currently operates a fleet of twelve aircraft comprising of five Boeing 787-8 Dreamliner aircraft, five Airbus A320neo aircraft and two Airbus A320ceo aircraft. The remaining two A320neo aircraft will join the fleet in November 2018. By the end of 2018, it will own seven A320neo, two A320ceo and five B787 aircraft, making its fleet one of the youngest in the world with an average fleet age of two years.

According to Royal Brunei Airlines, it operated services to Kuching from 15 May 1975 to 28 July 2011 using B737 aircraft. The route was suspended due to commercial reason.

Air Macau to receive 3 A320neo aircraft in the first half of 2019

Report by : Gan Yung Chyan
                   / KUCINTA SETIA
Distributed to All Press & Travel Professionals

BOC Aviation Leasing Co., Ltd. ("BOC Aviation Leasing") has announced the lease of three new A320neo aircraft to Air Macau, all of which are scheduled to be delivered in the first half of 2019. The aircraft will be powered by the Pratt & Whitney Geared Turbofan.

“We are pleased to work with Air Macau for the first time to support its fleet and route expansion plans, and Air Macau has taken advantage of the opportunities in the booming Pearl River Delta,” said Robert Martin, General Manager and CEO of BOC Aviation. 

Mr Martin added, "BOC Aviation has been fully prepared to support the growth of the Chinese aviation market with our most advanced aircraft. Air Macau's selection of the A320neo aircraft is in line with our focus on the most efficient and advanced technology aircraft investment.."

Mr. Chen Hong, Chairman and General Manager of Air Macau's Executive Board of Directors, said, “We will take the cooperation opportunity to introduce A320neo for the first time in our history and the opportunity to lease it to us is given to BOC Aviation Leasing. We have demonstrated our high recognition and attention to our strategic partner.” 

“We (Air Macau) choose the A320neo aircraft as it is installed with a new high-efficiency engine and equipped with the latest shark fins. It has excellent aircraft performance and is the world's leading and technologically advanced single-channel model.” 

At the same time, Mr. Chen Hong added, “As the Macau-based airline, we are looking towards the future. We will continue to adhere to the strategic vision of 'rooting Macau, serving Macau', and become the preferred airline for Macau travelers as we bring more advanced products and better services to our passengers and build an important air bridge from Macau to the world."

HNA Holdings to reduce its stake in Urumqi Air to 30 per cent

Report by : Gan Yung Chyan
                  / KUCINTA SETIA
Distributed to All Press & Travel Professionals

On 20 November 2018, HNA Holdings signed a strategic cooperation framework agreement with the Urumqi Municipal Government to combine their respective advantages to strengthen and build Urumqi Air an important national airline.

Under the framework, the Urumqi Municipal People's Government or its designated subsidiaries will hold 70 per cent of Urumqi Air while HNA Holdings will hold 30 per cent. Equity adjustments may be made in cash or in the form of physical and equity assets related to aviation operations.

Urumqi Air, which was established in 2014, currently has a fleet of 16 aircraft and operates 46 domestic and 1 international route. The net profit for the first half of 2018 was 0.5 billion yuan. At present, the controlling shareholder of Urumqi Air is HNA Holdings (600221.SH) under the HNA Group, holding 70 per cent of Urumqi Air, and Urumqi Urban Construction Investment (Group) Co., Ltd. holds another 30 per cent.

In March 2018, the second shareholder Urumqi Urban Construction Investment (Group) Co., Ltd. announced that it will increase its capital by 450 million yuan. The signing of this contract is to further take control of the controlling stake.

According to the agreement between the two parties, after the completion of the equity restructuring, Urumqi Air will hire a professional team of HNA Holdings under the leadership of the board of directors to be responsible for the safety, production and operation management of Urumqi Air. The chairman of the board is recommended by the Urumqi Municipal Government or its designated subsidiary, and the general manager is recommended by HNA Holdings.

This also means that after the Xinjiang government has increased its stake in Urumqi Air, the specific management operations will still be handled by HNA.

Earlier, HNA Group and China Commercial Aircraft (COMAC) signed an intentional order for 20 ARJ21 aircraft, and these 20 aircraft will also be operated by Urumqi Air.

During the Zhuhai Air Show, Urumqi Air signed an agreement with COMAC to confirm that it will receive two ARJ21-700 aircraft from COMAC before the end of this year and plans to receive three ARJ21-700 aircraft in 2019.

According to plans of Urumqi Air, its future will actively respond to China's “Belt and Road Initiative” , the tourism development strategy of the autonomous region, speed up the introduction of aircraft, increase the capacity of the Xinjiang region, and open intra-provincial and cross-border routes from Urumqi, thus bringing profits to the Xinjiang government and HNA Holdings. 

Urumqi Air will present a more reliable transportation image of Xinjiang through its comprehensive route network and gradually open international routes to Central Asia, West Asia, South Asia and Europe from Urumqi thus providing a convenient Asian-European air bridge for cultural exchanges.

Having an airline that truly belongs to a Chinese city has always been the wish of many local governments. In addition to Urumqi Air, the government-owned shareholders of several airlines such as Capital Airlines and Lucky Air, which are owned by HNA Group, are willing to increase their shareholding ratioes.

The cooperation mode signed by Urumqi Air with the Xinjiang government (government funded, HNA management) will become a template for future cooperation between Hainan Airlines' subsidiaries and Chinese city governments. After all, in aviation operations, security, services, etc. HNA has more experiences.

Such a cooperation model also means that HNA Group, which is still not well funded, will not easily sell all its airlines, but will further focus on the aviation industry through “output management”. Under such a line of thinking, cooperation with local governments that already have equity relationships is undoubtedly a better choice.

In February 2018, Tianjin Free Trade Zone increased its capital by 400 million to Tianjin Airlines. In March 2018, Urumqi City Construction Investment increased its capital by 450 million yuan to Urumqi Air. The capital increase methods include but not limited to land, buildings, physical assets, capital and equity. In August Shaanxi Airport Investment Group increased its capital by 300 million yuan in Air Changan while Kunming Xishan District Development Investment Group plans to increase capital by 200 million in Lucky Air.

Since the second half of 2018, Chen Feng has served as the chairman of the board of directors of HNA Group, and has increased the disposal of assets. The non-main business business has been diversified and the non-health industry has withdrawn. HNA's assets of nearly 300 billion yuan have been disposed of this year, mainly involving diversification and non-aviation business.

These include financial aspects of the abandonment of the acquisition of Hua'an Insurance, the transfer of Xinguang HNA Life Insurance, the sale of Lijiang Jinkong, the sale of Lianxun Securities, and HNA recently abandoned the purchase of Bohai Trust and proceeded with the real estate sales of high-priced Hong Kong Kai Tak three plots, Shanghai Land, Hainan Real Estate, Shenzhen Haihang City etc.

Within the HNA Group, the original seven industrial groups merged into four, and later became "two masters and two assistants." At the same time, as the core business of the aviation industry, HNA Holdings has also established a new business committee, which is equivalent to the marketing committee of the three major airlines. It has a marketing department, a network department, an e-commerce department, an international department and other departments. The airline's route market is coordinated to improve resource utilization efficiency and reduce internal losses.

It can be said that whether it is from the requirements of the government or the adjustment of HNA's own strategy and organizational structure, it is returning to its main business of aviation by focusing on improving the aviation core industry and related industries around aviation, including aviation tourism, aviation logistics, and aviation insurance, leasing and aviation technology.

Firefly suspends flight operations to Singapore from 1 December 2018

Report by : Gan Yung Chyan
                  / KUCINTA SETIA
Distributed to All Press & Travel Professionals

Firefly has decided to suspend flights to Singapore from 1 December 2018 due to "unresolved issues" with Changi Airport Group on the move of its turboprop flight operations from Changi Airport to Seletar Airport.

Under Changi Airport Group's plan, Firefly is supposed to begin commercial flights from Seletar to Kuantan, Subang and Ipoh from 1 December 2018. 

The decision for Firefly's flight suspensions. however, is believed to be commercial-based and logistic-based as Firefly's operations from Seletar Airport will not connect with its parent company Malaysia Airlines' flights from Changi to Kuala Lumpur, Miri and other Malaysian cities. Besides, there are no convenient land transport links between Seletar and Changi Airports.


Passengers boarding flights at Seletar Airport can reach the new terminal by public bus service 102, with the bus stop conveniently located 50 metres from the terminal and accessible via a sheltered walkway or by taxis and private hire cars. Bus 102 provides connectivity from the Seletar Airport area to Hougang Central Bus Interchange, Sengkang MRT station and Jalan Kayu. Passengers arriving from Changi Airport must transfer at Tanah Merah, Paya Lebar and Serangoon MRT stations for onward travel towards Sengkang MRT station via the Northeast Line.

Travelling from Seletar Airport

Passengers on commercial flights at Seletar Airport can look forward to checking in via four check-in counters in the departure hall, before proceeding to a comfortable departure gate holdroom. Spanning 10,000 square metres, the new two-storey terminal of Seletar also features more space for arrival immigration, baggage claim and a meeters-and-greeters hall, designed to provide a warm and hassle-free reception. A café in the departure area serves refreshments and quick bites to passengers, while a garden courtyard brings nature and a relaxed atmosphere to passengers and airport users.

On the airside, three parking stands adjacent to the new terminal enable quick boarding for passengers of commercial flights, and a faster turnaround time for the aircraft. Another 60 aircraft stands are located elsewhere in the airside of Seletar Airport, serving business and general aviation needs.

Seletar Airport, which is ready to handle scheduled commercial flights and all scheduled turboprop flights in Singapore from 1 December 2018, begins operations at its new passenger terminal on 19 November 2018. All operations have been transferred from the old terminal, situated at the west of the Seletar aerodrome, to the new one at the east. The new passenger terminal welcomed its first passengers on 19 November 2018 through the business aviation wing of the terminal.

Seletar Airport meets the relevant requirements of the International Civil Aviation Organization on airport design and operations. The Civil Aviation Authority of Singapore has certified that the new facilities and infrastructure at Singapore's second commercial airport are ready for aircraft operations. These include both scheduled and non-scheduled services.

The new terminal includes the Seletar Business Aviation Centre, which comprises a separate drop-off area and a dedicated check-in and lounge area where business aviation passengers can enjoy quick pre-departure and arrival clearance in a comfortable setting. The facility also provides meeting facilities on the second level where passengers can conduct meetings in a conducive environment before their departure.

Financial strengths of Citilink and Sriwijaya Air Group after managerial control over the latter

Report by : Gan Yung Chyan
                  / KUCINTA SETIA
Distributed to All Press & Travel Professionals

On 14 November 2018, Garuda Indonesia officially took over the operational control of its 15-year-old rival Sriwijaya Air Group through its subsidiary Citilink, which enabled the company to occupy a majority share in the fast-growing domestic aviation market.  Under the agreement (KSO), Garuda Indonesia improves the operation and financial management of the Sriwijaya Air Group through its subsidiary Citilink. The deal has not yet involved equity, but Garuda Indonesia Group said it could increase cooperation at a later stage, including ownership of the Sriwijaya Air Group. 

After the cooperation agreement was reached,  the air traffic share of the airlines of the Lion Group in the Indonesian domestic market is approximately 51 per cent while Garuda Indonesia Group controls the air traffic share of approximately 47 per cent. The air traffic share by other Indonesian airlines is only 3 per cent. 

If viewed from the current fleet size, Garuda Indonesia Group controls the fleet of Sriwijaya Air Group slightly larger than the Lion Group. However, in 2017, the passenger traffic of the Lion Group was higher than that of the Sriwijaya Air Group and Garuda Indonesia Group.

The deep cooperation between Sriwijaya Air Group and Garuda Indonesia Group has a harbinger.

On 16 May 2018, Garuda Indonesia Group and Sriwijaya Air Group signed a code-sharing agreement to strengthen cooperation on domestic routes, strengthen synergies, and increase market share and profitability. The code-sharing cooperation agreement is the first cooperation agreement between Garuda Indonesia Group and Sriwijaya Air Group. At the time, the two parties also indicated that this was the first step for the two parent companies to carry out more strategic cooperation in other fields in the future. As an initial stage, the cooperation between the two parties is through a special proportional allocation agreement (SPA) and code sharing agreement. But as of now, the code sharing cooperation between the two parties has not yet been implemented. 

Sriwijaya Air and its full-service subsidiary NAM Air use reservation system differently from Lion Air and Citilink. Sriwijaya Air, NAM Air and Citilink have never code-shared with any airline and therefore need to upgrade their IT investments. For Sriwijaya Air, considering its financial situation is not ideal, the managerial control by Citilink represents a huge investment.

Citilink is a wholly-owned subsidiary of Garuda Indonesia that was established in 2001 then known as Garuda Indonesia Citilink. In May 2011, Garuda Indonesia announced the launch of the Citilink independent operation plan. On 5 July  2012, it obtained the Operation Qualification Certificate (AOC) issued by the Indonesian Transportation Department. On 30 July 2012, it officially operated independently using the independent call sign and logo. Its main competitor is Lion Air. Up to now, the number of aircraft in Citilink's fleet has reached 60, and the average utilization rate of the fleet from January to September 2018 has reached 9:12 hours. Due to the unsatisfactory operation in the past two years, it has slowed down the pace of fleet expansion.

Since the independent operation of Citilink, the passenger traffic has maintained a high growth rate, which has exceeded the average development speed of the Indonesian aviation industry for many years. In 2017, its passenger traffic growth slowed down, only 10.8% although its passenger load factor has been rising year after year. The average passenger load factor from January to September in 2018 reached 83.8%.

After the 2014 Indonesia AirAsia QZ8501 plane clash, in January 2015, the Indonesian transportation department signed the regulations and the minimum price of the ticket should not be less than 40% of the full price, which limits the minimum fare. Compared with the revenue of Citilink passenger kilometers in recent years, it is still possible to see the fierce market competition of the Indonesian aviation industry, and the revenue per unit passenger kilometer continues to decline. On the other hand, due to the impact of oil prices, the cost per unit of seat has increased in recent years. In 2015, Citilink's operating income increased by 123.92 per cent, and the first profit was 3.561 million US dollars. In  2016 and 2017, Garuda Indonesia Group did not separately announce the performance of Citilink, but in the whole year of 2017 and the first three quarters of 2018, Garuda Indonesia Group incurred a severe loss (a loss of 110 million in the first three quarters of 2018). It is believed that during this period, Citilink is highly likely to lose money.

To contribute to the profits of Garuda Indonesia Group, Citilink needs to improve its sales strategies. Currently, it relies on agency sales in Indonesia, and the construction of direct sales channels is backward. Its official website at www.citilink.co.id has almost no updates and limited brand appeal. It needs to improve its marketing strategies. Passengers from countries outside Indonesia know very little about Citilink. It is likely to lose money at the beginning of the opening of international routes. Its parent company, Garuda Indonesia, has been listed and is responsible for the capital market. This is why Citilink has not opened many scheduled international routes. Today, it only has two regular international routes.

Sriwijaya Air is a full-service airline that began operations in November 2003 and has been the third largest airline in Indonesia's domestic market since 2010. It established Sriwijaya Air Group in 2013 and also launched Nam Air, which is positioned as a full service regional airline. In the past year, the Sriwijaya Air Group has also been extremely difficult to operate and has contacted several potential investors.

This time, with the official takeover of the Sriwijaya Air Group management, it is expected that there will be follow-up actions such as equity acquisitions. From the current development of the Southeast Asian aviation market, large aviation groups are mostly developed with full-service sub-brands and low-cost sub-brands. At present, Garuda Indonesia Group manages four brands (operating license AOC), and it is difficult for multiple brands to achieve differentiated positioning and future. It is still possible for these brands including Citilink, Cargo Garuda Indonesia Cargo, Garuda Indonesia Explore-jet and Garuda Indonesia Explore to continue to integrate before any merger with Sriwijaya Air Group can be discussed.

The managerial control of Citilink over Sriwijaya Air Group shows that the Indonesian aviation market is growing faster but competition is fierce. 

According to Indonesian DGAC data, the domestic passenger market in Indonesia grew by 8 per cent in 2017, reaching 96.9 million. In 2016, the domestic market grew at a faster rate of 17 per cent At present, the Indonesian market is second only to the world's fifth largest domestic market in the US, China, India and Japan. Indonesia is very likely to surpass Japan in 2018 and become the fourth largest domestic market in the world. In 2017, the number of domestic tourists in Japan was 101.8 million. According to data from the Brazilian ANAC, Brazil is the sixth largest domestic market in the world with 90.6 million domestic passengers. If viewed from the scale of the entire aviation market, Indonesia has entered the tenth largest market in 2017 and is expected to leap to the fourth largest market in 2030.

Shandong Airlines resumes flight to Singapore on 20 December 2018 with 737 MAX 8

Report by : Gan Yung Chyan
                  / KUCINTA SETIA
Distributed to All Press & Travel Professionals

Shandong Airlines is resuming direct flight from Jinan to Singapore on 20 December 2018. Initially, it operates three flights a week between the two cities, on Tuesdays, Thursdays and Saturdays. The flight frequency will increase till daily if the services prove that daily flights are needed to meet market demand.

On 20 December 2018, Shandong Airlines flight SC4937 departs from Jinan for Singapore at 6.30 am, arrives in Singapore Changi Airport Terminal 1 at 12.30 pm before leaving Changi for Jinan at 1.30 pm and touching down in Jinan at 7.35 pm under flight SC4938.

The flights are operated by Shandong Airlines' Boeing 737 MAX 8 aircraft.

Air Tanzania plans direct flight launch to Guangzhou in February 2019

Report by : Gan Yung Chyan
                 / KUCINTA SETIA
Distributed to All Press & Travel Professionals

The first Tanzania Tourism Board road show in Asia, 2018 Tanzania Tourism Roadshow, is held in Guangzhou on 14 November 2018. At the road show, Tanzania Tourism Board revealed that Air Tanzania plans to launch its first direct Dreamliner flight to Guangzhou from Dar Es Salaam, the capital city of Tanzania, in February 2019.

The roadshow is hosted by the Tanzania Tourism Board and the Embassy of the United Republic of Tanzania in China and hosted by the Guangdong Tourism Planning and Marketing Association.

16 companies including Air Tanzania and Tanzania National Park made tourism promotion and conducted B2B business negotiations with more than 60 travel agency companies at the roadshow in Guangdong.

Air Tanzania will announce the detailed flight schedules of the Dar Es Salaam - Guangzhou route by January 2019.

According to reports, China is currently the eighth largest source of tourists for Tanzania's tourism. In 2017, there were about 30,000 Chinese tourists visiting Tanzania. The Tanzanian side hopes to attract more Chinese tourists to Tanzania for sightseeing through this roadshow and Air Tanzania's long-haul flight launch.

Tanzanian Tourism Board President Gaji Thomas Mijayo said that Tanzania will do its utmost to provide high-quality services to Chinese tourists, and cooperation in tourism will surely achieve a win-win situation.

Mei Qijie, a member of the Party Committee of the Guangdong Provincial Department of Culture and Tourism, said that although China and Tanzania are separated by mountains and rivers, the friendship between the two peoples goes back to ancient times. In recent years, as one of the starting points of China's Maritime Silk Road, Guangdong has fully implemented the “Belt and Road Initiative” and pragmatically promoted exchanges and cooperation with Tanzania in the fields of economy, trade, tourism and culture. At present, Guangdong is fully promoting the green development strategy. Tanzania's experience in natural resource protection and national park planning and construction is worth learning from. He suggested working with Tanzania to strengthen cooperation in tourism propaganda, industrial cooperation and tourism security, and work together to promote tourism culture cooperation between the two countries to a new level.

Cambodia Airways launches flight to Taichung on 21 November 2018 with its third A319

Report by : Gan Yung Chyan
                  / KUCINTA SETIA
Pictures courtesy of : Cambodia Airways
Distributed to All Press & Travel Professionals

Cambodia Airways has taken delivery of its third Airbus A319 on 7 November 2018. It arrived in Phnom Penh International Airport on 8 November 2018, according to the airline Facebook.

The third A319 of Cambodia Airways is the first aircraft to spot the complete official livery of the airline. The other two A319 do not show the official livery of clouds in the sky on their tails. 

Cambodia Airways currently flies to Siem Reap, Sihanoukville and Macau from Phnom Penh. It has charter flights to Taoyuan and is expected to launch Cambodia's first scheduled flight to Taichung from Phnom Penh on 21 November 2018 using the third A319.

On 21 November 2018, Cambodia Airways flight KR771 departs from Phnom Penh for Taichung at 12.15 pm, arrives in Taichung at 4.55 pm before leaving Taichung for Phnom Penh at 5.55 pm and touching down in Phnom Penh at 8.20 pm under flight KR772. Days of flight operation are Wednesdays and Sundays.

Biman launches 787-8 service to London Heathrow on 14 November 2018

Report by : Gan Yung Chyan
                  / KUCINTA SETIA
Distributed to All Press & Travel Professionals

Biman Bangladesh Airlines launches 787-8 service to London Heathrow from Dhaka on 14 November 2018. This is a special service to introduce the Dreamliner to the UK airport. Regular Dreamliner flights to London Heathrow from Dhaka will be operated from December 2018 to February 2019.

The Bangladesh national flag carrier ended Dreamliner flights to Singapore and Kuala Lumpur on 15 October 2018.


Ref. Biman plans its first B787-8 scheduled flight to Singapore on 1 September 2018
https://kucinta-setia.blogspot.com/2018/08/biman-plans-its-first-b787-8-scheduled.html