Hong Kong Airlines launches all-business class flights to London

Hong Kong Airlines will begin daily all-business class flights between Hong Kong and London from March 7, with connecting flights out of Australia via Qantas starting at $3,520 return.

That's for a split class ticket travelling Qantas economy from Sydney, Brisbane, Melbourne and Perth, before transferring to Hong Kong Airlines' Club Classic business class from Hong Kong to London.

For $8860 return you get Qantas business class to Hong Kong and the snazzier Club Premier from Hong Kong to London.

The Kong Kong Airlines flights use three new Airbus A330-200s with just 116 seats (by way of comparison, Qantas' international versions of the same aircraft pack some 253 seats across both business and economy class).

The flight from Hong Kong (HX875) will depart at 11.50pm, arriving at London's Gatwick Airport the following day at 5.55am. The return service, HX876, will be wheels up from Gatwick at 9.30pm and reach Hong Kong at 6.05pm the next day.

Aussie business travellers will be more familiar with London's Heathrow airport but in many ways Gatwick is more convenient than the mega-hub of Heathrow. It's a smaller and more manageable airport with a direct rail link on London's Thameslink line to several stops convenient for the City of London financial district.

Club Classic vs Club Premier

While being an all-business class flight, HKA offers two versions of what it calls 'Club Class'.

34 Club Premier mini-suites sit at the pointy end of the A330, with fully flat 1.8 metre (6'1") beds in a spacious 1-2-1 staggered layout.

Passengers are treated to a 'fine dining service' with individual table settings, a turndown service with duvets, pyjamas and slippers plus luxury amenity kits, or you can while away the hours watching a few shows on your 15.4" 16:9 HD video screen.

The 82 Club Classic seats have a more conventional 'cradle' or recliner design, with a 1.3 metre (51 inch) seat pitch and 10.4" HD video screen in a still rather roomy 2-2-2 cabin layout.

“The concept for the all Club Class aircraft will provide passengers with a private jet style ambience and an exceptional crew to guest ratio" said Gerard Clarke, General Manager UK for Hong Kong Airlines of what he terms as the airline's "new flagship route".

Each Club Class cabin includes its own in-flight bar, with in-flight wireless Internet available through the plane.

Hong Kong Airlines says that all passengers will enjoy lounge access at Hong Kong and Gatwick, with "limousine transfers for Club Premier passengers".

Source: Australia Business Traveller

Cebu Pacific to start long-haul, low-cost services in 2013

Philippine low-cost carrier Cebu Pacific will launch long-haul services in the third quarter of 2013.

The airline will lease up to eight Airbus A330-300s and offer low-cost services to Australia, the Middle East, parts of Europe and the USA, Alex Reyes, the airline's vice president for commercial planning said at a press conference.

Its fares will be up to 35% lower than other airlines, giving Filipinos the chance to fly directly to destinations in these cities instead of taking multiple stops and connecting flights, he added.

© Cebu Pacific

Cebu Pacific currently operates a fleet of Airbus A319s and A320s on short-haul routes within the Philippines and around the region.

The long-haul plans will put it in competition against flag carrier Philippine Airlines, although the full-service carrier does not fly directly to the Middle East or to Europe.

It follows Malaysia's AirAsia X and Singapore-based Qantas associate Jetstar Asia in offering long-haul, low-cost services from Southeast Asia. Both operate Airbus A330s. Scoot, a subsidiary of Singapore Airlines, will begin long-haul, low-cost operations out of Singapore in the middle of 2012 using Boeing 777-200s.

Cebu Pacific CEO Lance Gokongwei told Flightglobal Pro's sister publication Airline Business in December that long-haul, low-cost services were on the cards. He said that there will be a separate management team for the airline.

"It is difficult to do because whenever you bring in new aircraft, it adds complexity. You need management and technical capability. The distribution channels are important," Gokongwei said.

"It can enhance the brand, just like what AirAsia X has done for AirAsia, but it adds complexity. So if you want to do it, you need to make sure you have completely different teams. Don't confuse the management by having them do both," Gokongwei added.


Source: Flightglobal

Spanair ceases operations

Spanair A320. Courtesy, Spanair


Barcelona-based Spanair (JK) has ceased operations after reportedly running out of financing options.

A statement on the carrier’s website says it suspended operations on Jan. 28 and advises customers with reservations to contact their credit card company, insurance company or travel agency. “Due to these exceptional circumstances all our flights are canceled,” the statement said.

JK reportedly made the decision to halt operations after being told it would receive no more government-backed loans and talks with Qatar Airways (QR) about potentially taking a stake in Spanair fell through.

Bloomberg reported that a JK spokesman said Qatar (QR) was not interested any more in a business deal.

SAS Group, meanwhile, issued a statement saying that JK’s board of directors had decided to apply for bankruptcy. SAS divested most of its ownership in Spanair in early 2009, but said Friday it had a remaining exposure of about 1.8 billion Swedish krona.

“SAS Group will follow customary procedures as a creditor in the upcoming bankruptcy process,” it said.

JK, a Star Alliance carrier, issued a statement almost exactly a year ago warning that it was in an emergency financial situation.

Source: ATW

Etihad to acquire 40% stake in Air Seychelles

Etihad Airways A330. By Rob Finlayson


Etihad Airways (EY) will acquire a 40% stake in Air Seychelles (HM) for $20 million as part of a strategic partnership alliance initiative between the two airlines. The alliance includes a codeshare agreement, the integration of the carriers’ frequent flyer programs and a five-year management contract for EY.

Under the terms, the Seychelles government will inject $20 million into HM. EY will also provide a shareholders’ loan of $25 million to meet working capital requirements and support network development. EY will increase frequencies between Abu Dhabi and Mahe from 4X-weekly to daily.

“This is a game-changing strategic partnership for us, establishing Air Seychelles on a sustainable growth trajectory and offering a realistic way forward for long-term commercial growth,” said Seychelles minister of home affairs, environment, transport and energy Joel Morgan. “The aviation industry is under enormous pressure right now, with small airlines especially vulnerable to global economic instability and ongoing oil price volatility. In this context, consolidation offers the best possible solution for Air Seychelles.”

EY president and CEO James Hogan said the deal is “consistent with our approach to expansion, which relies on the strength of strategic partnerships across the globe. The investment in the national carrier of Seychelles is a natural next step towards growing our operations in the increasingly important leisure markets of the Indian Ocean and Africa.”

The agreement is EY’s second equity investment, following its December 2011 announcement that it would increase its stake in Air Berlin (AB) to 29.21%. Competition authorities in Austria and Germany approved EY’s investment in AB earlier this month.

HM last year appointed former Kenya Airways COO Bram Steller as its new CEO. The carrier suspended Singapore services at the end of November and ended European operations to Paris, London, Rome and Milan Jan. 10

Source: ATW

Etihad becomes first to cancel A350-1000s

Etihad Airways has cancelled six Airbus A350-1000s, the first carrier to have cut its backlog for the type since the aircraft was redesigned last year.

Airbus had a backlog of 75 A350-1000s but its latest order and delivery figures show Etihad's backlog of 25 has been cut to 19.

While Etihad has not commented on the A350-1000 redesign, a source close to the carrier said it was not content with the changes made to the twinjet, echoing the feelings expressed by Emirates and Qatar Airways.

Airbus chief Tom Enders indicated there might be "short-term" issues regarding discussions with existing customers for the A350-1000.

The A350 programme secured orders for only 10 aircraft in 2011, while cancellation of 41 left the type in negative net figures for the year.

Cancellation of a single A350-800 also helped to reduce the A350 order backlog to 555 aircraft, comprising 118 -800s, 368 -900s and 19 -1000s.

Enders reiterated the airframer's caution over A350 development, admitting that postponement of its entry to the final assembly line had been decided after the programme "ran into some serious problems" with key elements.

He said the A350's final assembly would begin in March 2012. Without caution, and assurance of maturity, he said, "you're setting yourself up for disaster".

Chief operating officer for customers John Leahy said he was in discussions with three major airlines for the A350-1000, and added that the main problem was "getting them early delivery positions".

Source: Flightglobal

LAN/TAM increase merger synergy estimates

Chile's LAN Airlines and Brazil's TAM said their planned merger under LATAM Airlines Group, expected to be completed by the end of March, will produce even more synergies than previously expected. The carriers last week revised upward from $400 million per year to $600-$700 million annually the value of the synergies expected to result from a merger that will create a mega-airline group controlling more than 40% of Latin America's air passenger market.

The $600-$700 million annual figure won't be realized until four years after the completion of the merger transaction, but the airlines believe $170-$200 million will be achieved within a year of the combination's finalization.

The higher synergy estimate "reflects further revisions and updates of the expected combined cost savings and revenue generating opportunities arising from the proposed combination and includes best practice sharing benefits that have been identified in certain areas," the carriers said in a statement.
Breaking down the numbers further, LAN/TAM said approximately 40% of the potential synergies will come from increased passenger revenue ($225-$260 million), 20% from higher cargo revenue ($120-$125 million) and 40% from cost savings. According to LAN/TAM, expense savings will come from consolidating frequent flyer programs ($15-$25 million), coordinating airport and procurement activities ($100-$135 million), improved maintenance efficiency ($20-25 million) and information technology system convergence ($120-$130 million).

The synergy estimates do not count one-time merger costs of $170-$200 million expected to be incurred by LAN/TAM. But those costs will be somewhat offset longer-term by reduced investments of around $150 million for engine and spare part purchases that will be avoided because of the merger.

Source: ATW

Etihad Airways pick up "World's Leading Airline" at World Travel Awards

Etihad Airways has enjoyed stunning success at the World Travel Awards, taking the top honour for the third year in a row.

It was named the World’s Leading Airline last night at a black-tie gala event in Doha, Qatar. The judges also presented Etihad Airways with awards for the World’s Leading First Class and World’s Leading Airline to the Middle East.

These three awards cap an extraordinary 12 months for the airline. Highlights included the launch of seven new international routes, a move into operating profitability and the purchase of a 29.2 percent stake in airberlin, a landmark deal that enables access to 33 million new passengers in Europe.

James Hogan, Etihad Airways’ President and Chief Executive Officer, said:

“We are delighted to have been named World’s Leading Airline at the World Travel Awards for the third successive year.”

“2011 was a fantastic year for Etihad Airways, during which we began to reap the full benefits of financial and operational strategies developed over the last five years.”

“Nothing is as important to us as our guests and we work tirelessly to ensure their experience with Etihad Airways surpasses expectations. We are always looking to innovate, whether that be by introducing qualified chefs in our Diamond First Class or bringing industry-leading inflight entertainment systems with mobile and internet connectivity to the sky.”

“Etihad Airways’ vision is simple: to be the best airline in the world. These accolades from industry experts at the World Travel Awards demonstrate that we are meeting that goal.”

The World Travel Awards – described as the “Oscars of the travel industry” by the Wall Street Journal – recognise the best airline, hospitality and tourism brands in the world. Judges look for excellence in categories such as customer relations, creativity, quality of service, product innovation and business acumen.

Etihad Airways’ success in Doha follows recognition at the World Travel Awards Middle East in May, when the airline took home awards for Middle East’s Leading Airline, Middle East’s Leading Airline First Class, Middle East’s Leading Cabin Staff and Middle East’s Leading Airline In-flight Entertainment.

Etihad Airways 2011 highlights:
- The purchase of a 29.2 percent stake in airberlin, Europe’s sixth largest carrier
- The achievement of operating profitability for the first time in the third quarter
- A $1bn deal with Panasonic Avionics to provide state-of-the-art inflight entertainment systems and inflight connectivity across the airline’s entire wide-body fleet
- A $1bn deal with Sabre Airline Solutions to integrate the airline’s information technology processes
- The introduction of fully-qualified and classically-trained international chefs dedicated to food service excellence in its Diamond First Class cabins
- New routes announced to Bangalore, Maldives, Seychelles, Chengdu, Düsseldorf, Tripoli, Shanghai and Nairobi

Source: Planetalkinglive

Korean Air wins World's Most Innovative Airline at World Travel Awards

Korean Air last night received the accolade of being named the World’s Most Innovative Airline at The World Travel Awards Grand Final Ceremony 2011, held in Doha, Qatar.

Founded in 1993 and described as the ‘Oscars’ of the travel and tourism industry, the evening marks the culmination of a year-long search for the very best travel and tourism brands in the world, and awarded the winners from WTA’s regional heats.

The award was received by, Korean Air’s Managing VP for Europe, Middle East & Africa, Mr. Jaeho Kim who said: “Korean Air is honoured to be recognised for the efforts we have made in changing the way our customers view air travel. We are particularly proud of the innovation shown in the unique design of our A380 aircraft – the business class only deck, the Duty Free Showcase and the Celestial Bar all add to a memorable inflight experience for our passengers and a return to the days when flying was glamorous!”

Manon Han, Executive Vice President, World Travel Awards, said:

“The past year has been one of the most challenging yet for aviation, however, Korean Air has bucked the trend and gained market share by providing travellers with ground-breaking levels of service. For this reason, Korean Air has been named ‘World’s Most Innovative Airline’ by World Travel Awards.”

2011 was the year Korean Air introduced the magnificent A380 aircraft to its fleet and proved beyond a doubt that it is a truly innovative airline. Choosing to create a spacious environment for its passengers, the A380 has only 407 seats and Korean Air was the first airline to announce that the entire upper deck would be devoted to the business traveller with just 94 ‘Prestige’ business class seats.

This year also marked the debut of Korean Air’s unique and stylish on-board Celestial Bar in addition to its Duty Free Showcase which was fitted into all A380 interiors to provide passengers with the ultimate on-board experience.

Source: Planetalkinglive

Aeroflot sells regional subsidiary

Russian Aeroflot (SU) has sold 51% of its newly-acquired, Saratov-based subsidiary Saravia Airlines (6W) to private investors. The price and the purchaser were not disclosed.

According to an SU statement, 6W does not align with SU’s business strategy. No more information was given.

SU acqired 6W and four other airlines from Russian state corporation Rostechnology at the end of Novembe. It was originally suggested that SU could create a low-cost carrier based on 6W.

The 6W fleet consists of 12 Yak-42s, although only eight are operated. During the first 11 months of 2011, the airline carried 356,820 passengers.

Source: ATW

Picture of the Day(3 January 2012)

Air Asia X Airbus 330-343E(9M-XXA) taking off from Seoul-Incheon International(ICN) on December 17, 2011.

Source: airliners.net

Picture of the Day(2 January 2012)

Aer Lingus Airbus 320-214(EI-DEC) at Brussels-National(Zaventem)(BRU) on October 16, 2011.

Source: airliners.net

Picture of the Day(1 January 2012)

Aegean Airlines Airbus 320-232(SX-DVV) at Heraklion-Nikos Kazantzakis(HER) on October 2009.

Source: airliners.net