T U E S DAY 3 I TUESDAY I 14 OCTOBER 2008 D A Y

BRINGING YOU THE NEWS FROM THE 14TH WORLD ROUTE DEVELOPMENT FORUM IN KUALA LUMPUR

It’s time for a change – crisis could provide momentum for consolidation AIRLINES CALL FOR FISCAL DISCIPLINE

BY NICHOLAS IONIDES lines managing director Idris Jala. “what it did is compel the indus - ore fiscal discipline is needed “We need to innovate beyond We need to innovate try that we had to be financially Min the airline sector with fuel the normal day-to-day things we beyond the normal and commercially viable”. prices at high levels and demand do. We cannot keep doing it the day-to-day things we do He added: “The challenge now falling amid the credit crunch, way we have been doing them.” is the demand curve. Discretionary Idris Jala – according to panellists at the Idris and other panellists said in managing director, MAS travel is going to go down.” Routes Leaders’ Forum yesterday. addition to focusing more on cost As a result airlines and other “If we just continue doing control and trying to be disciplined industry players need to press for things as usual, it is untenable in with capacity growth, deeper struc - dent international affairs at Etihad, deeper structural change, such as a world where oil prices are at tural change is needed. said airlines have done well to live easing ownership restrictions to $100 a barrel,” said Malaysia Air - Vijay Poonoosamy, vice presi - in a world of high fuel prices and allow for consolidation. “Airlines that want to consoli - date should be allowed to do so,” said Hans Mitterlechner, director Malaysia of airport investment group Mac - quarie. revs up for Justin Symonds, global head of ‘wheelie’ big transportation and logistics at ABN Amro, added that “you need event to create a level playing field in the industry” in part by changing The siting of the Sepang the “ludicrous legacy” of bilateral motorsport circuit next to air services and allowing for more Kuala Lumpur’s new interna - access to capital in the industry. tional airport has already He said that with fuel priced at given a boost to passenger $100 per barrel this has been “pro - numbers. viding momentum to consolida - And this weekend the tion”, although “there needs to be airport is steeling itself a classic burning platform” before for a huge invasion of regulators look at pushing through motorcycle fans as the deep change. world MotoGP championship Association of Asia Pacific Air - comes to Sepang. lines director general Andrew On the Routes’ host Herdman added that it is not all booth they are already cele - doom and gloom, however, as the brating as hospitality girls industry will keep growing. Carace Kwan and Angeline “We still have pent-up demand Yap try their hands on one for new aircraft to come in,” he of the high speed machines said. “There will be a dip in displayed here yesterday. demand but this industry will still keep growing.” I

INSIDE THIS ISSUE Distribution sponsored by: Leaders’ Forum Page 4 Embraer odd-man-out Page 12 Marketing awards Page 8 Climate change Page 18 4 Lovely Prague Page 10 Currying favour Page 22 NEWS

A new chapter in Spanish aviation begins later this month when the Airport opening heralds new era for Spanish aviation country’s first private airport opens for business. And a team is at multi-modal facility connecting air, tions Manager with CQM. “Now we CQM has already attracted two Routes ready to do business with (high speed) rail and road. are open for business with a differ - airlines – Air Nostrum operating airlines of all kinds. Only a year ago, at Routes in ent philosophy to other Spanish two routes (Barcelona and Las The opening of Central Ciudad Stockholm, the airport was being airports. This will be business to Palmas) and Air Berlin which will Real (CQM) airport – it goes marketed under the name Madrid business and we intend that our operate to Palma, Majorca. operational on October 23 with South. However, opposition from customers will be partners in a The airport has a 4km runway an official ceremony four days city politicians led to the name win-win relationship.” and an ILS-Cat III rating. It will be later – marks the end of a long change. Llorens said that customers will operational 24 hours a day. It has battle to create Spain’s first The new name reflects the help shape the final structure of a 28,000 m 2 passenger terminal private airport. airport’s location at the centre of the airport, particularly in its Logis - and a 6,100 m 2 cargo terminal. The backers of the airport have the Iberian peninsula. tics and Commercial Centre. The Llorens said that he is currently overcome regulatory and political “We consider ourselves as an centre is designated as a base for talking to airlines of all types, opposition to build CQM, which will alternative gateway to Madrid,” a range of activities, from aeronau - both Europe-based and those become an aviation city and a said Luis Llorens, External Rela - tics, to commercial and hotels. from Asia. I Routes hands baton to Beijing Organisers look forward to a showcase event in another fascinating and hospitable Asian city

BY ALAN PEAFORD A taste of eijing will host next year’s “With the opening of T3, things to BRoutes – the 15th World Beijing is now working come. Route Development Forum – and towards world hub status” Chinese Beijing Capital International Air - musicians Mike Howarth – entertain port (BCIA) is looking forward to chief executive, RDG welcoming delegates to the show - Routes case event. delegates in KL BCIA’s Wang Tao says the new has three sections all connected airport expansion for terminal 3 by an automated people mover will be complete by then and that will carry 8,000 people an following the success of the hour high above the airport. Olympics earlier this year, the “Passengers will have great Chinese flagship airport is ready views,” says Wang. to welcome the industry. The terminal will have direct After four years’ construction fast rail connections to Beijing the new Norman Foster-designed city centre, taking less than 20 T3 is the world’s largest airport minutes. There will also be Asia’s building – covering more than a largest car park with capacity for million square meters – and will 10,000 cars. eventually accommodate an esti - The Routes event will be at the “We will be running shuttle Look out at 13.00 today at mated 50 million passengers a new convention centre close to buses from the airport to the the Beijing stand for the official year by 2020. the airport where there are al - hotels and convention centre for handover when Zhang Zhizhong, The dragon-shaped building ready a number of five star hotels. those people that stay in the city,” GM of capital airports and Dong says Wang. Zhiyi, GM of BCIA will be invit - Routes organisers, RDG’s chief ing delegates to the next event. executive Mike Howarth says “the Speaking at the Leaders’ Forum region is a powerhouse of global air yesterday, Zhang said that air trans - PUBLISHED BY AIRLINE BUSINESS IN ASSOCIATION WITH AEROCOMM transport and, in 2009, it is likely port growth for China will continue DAILY editorial team Advertisement sales Visit us on the web: to be the world’s major through 2020 when it Geoff Thomas Robert Hancock flightglobal.com/ab growth area. With the expects to have 20% Nick Ionides Shawn Buck ©Airline Business 2008 opening of T3, Beijing is of the world’s air Alan Peaford Cory Mathews now working towards movements. I Mike Miller Got a story? world hub status and for Mike Martin Printed by Come and see us in the Routes’ delegates, the Design\production Times Offset Hospitality Lounge 1 event will be located in Amelia Clark Malaysia overlooking Networking one of the most accessi - Photography Hall 1 Ian Billinghurst ble and dynamic cities in Left: Zhang Zhizhong, the world.” GM of capital airports

flightglobal.com/ab October 2008 I Airline Business Daily @ Routes I 3 NEWS

Open Skies is a success, OIL TRADING VOLATILITY but more progress needed LIKELY TO Leaders from both British Airways’ CONTINUE sides of the Atlantic want Walsh pact to go further speaking The global credit crunch is at the resulting in reduced specula - BY MIKE MILLER Routes tive activity in oil trading S-EU Open Skies, which took Leaders’ although panellists at the Ueffect in April, has been a Forum Routes Leaders’ Forum resounding success, according to yesterday were in agreement officials on both sides of the At - that volatility will remain. lantic, although more advances are Justin Symonds, global necessary for the industry to realise head of transportation and true progress. logistics at ABN Amro said: Speaking at the Routes Leaders “A positive… is that some Forum yesterday, British Airways of the speculative activity CEO Willie Walsh called trans-At - is going to go out of the lantic Open Skies a “success” be - market.” cause “carriers that have wanted to Idris Jala, Malaysia Air - gain access to Heathrow have done lines’ managing director and so and the consumer has benefited a former senior executive from greater choice.” He noted that with oil giant Shell, said he the five new airlines that have en - believes there is no shortage tered previously restricted London of oil and gas today and Heathrow airport have added 22% much of the increased prices trans-Atlantic capacity since April. in recent years has been the Chief US negotiator John Byerly, plex structures to do so. That result of fear and geopoliti - “Is the German government who is the State Department’s needs to change,” Walsh said. ready to have Lufthansa owned cal issues, which resulted deputy assistant secretary for trans - by another country? We need Byerly asked whether Europe is “in an opportunity for a lot of portation affairs, said “all of this has to get those answers” ready for the cross-border consoli - speculative activity to come led to more choices for consumers John Byerly – dation that it demands. “Is the Ger - in”. and it has led to more legal stability US State Department man government ready to have He said this has “driven now.” He added that the US-EU Lufthansa owned by another coun - prices well beyond what is accord “provides an important try? We need to get those answers.” connected to reality”, but the precedent for the rest of the world.” Open Skies progress, “we should Walsh said the pending Ameri - global credit crunch that has The European Commission’s have gone further in the initial can Airline/British Airways an - badly affected many of the director general for energy & trans - agreement,” adding that the in - titrust immunity application in world’s financial institutions port, Olivier Onidi, said that while dustry needs to have the tools to front of US authorities should be “may help to spiral the price the initial pact did not go far consolidate in a “sensible” way. approved, since it comes after com - down” due to less specula - enough, it did show that “the two Part of that solution is for govern - peting airlines in the Star and tive activity. largest markets can form an agree - ments “to back out of” airline SkyTeam alliances received immu - So what was the bet of ment.” shareholdings. “If you have ambi - nity. “If we don’t see this going industry leaders on the first Walsh said that while the in - tion to compete on a global scale, through, it would be a major step session entitled Living With dustry should take comfort in you now need to undertake com - backward” for US/EU ties. I High Oil Prices as to where the price of oil will be in a year from now? Symonds expects it to be Emissions: regulators “ready to take control” at $107 per barrel, Etihad’s Vijay Poonoosamy $100, Either the aviation industry comes up with a clear “The world has changed in the past few weeks Macquarie’s Hans Mitterlech - position on controlling emissions or regulators will and this issue is coming into the regulatory frame - ner $85, Idris $80 and the impose control, Routes Leaders Forum on climate work,” he said. “They (the regulators) don’t care Association of Asia Pacific’s change and aviation was told yesterday. for market solutions. Andrew Herdman $80. I Max Moore-Wilton, chairman of Sydney Airport “This is about aviation emissions from aircraft Corporation, said that the current global financial and that is where we need a very clear position, For more news, turmoil had transformed the relationship between otherwise the regulators will take control. I don’t images and videos go to: the private sector and government regulators. mean that they ‘may’ take control but they ‘will.’” flightglobal.com/ab

4 I Airline Business Daily @ Routes I October 2008 flightglobal.com/ab NEWS

Fraport thinks big with Fujairah seeks Etihad link massive ‘work-in-progress’ Fujairah international airport has launched a new strategy Plans address concern to bring scheduled services about major hub status to the UAE emirate and is at Routes 2008 hoping to BY ALAN PEAFORD develop links to Etihad and he Fraport booth in the centre its Abu Dhabi base. Tof the Routes networking vil - “We recognise that we lage has a clear look of work in cannot compete with Dubai. progress. It just won’t work,” said A cement mixer, sand and a Charles Hajdu, strategy and clear sign of ‘men-at-work’ draw business development delegates in. manager, Fujeirah interna - “It’s all for a good reason,” says tional airport, yesterday. Fraport’s Sigrun von Kienle. “You need to find your “Frankfurt Airport is undergoing own niche. We are not going massive expansion to meet the to try to take operators from demand we have from airlines Dubai but plan to find other that want to come to the airport. operators.” “The airport is in a tightly At present, Fujairah is a confined area and expansion is significant cargo airport with being very carefully planned.” some passenger charters Expanding capacity at Frank - serving the tourism industry furt Airport requires construction on the east coast of the UAE. of a new landing runway, a third “Our aim now is to in - passenger terminal (Terminal 3), crease the number of charter and a new maintenance hangar Digging in: flights and to attract one or Fraport’s for the new A380 long-haul two scheduled services,” widebody aircraft. Sigrun von Kienle lends said Hajdu, adding that According to representatives a hand possibilities included on the booth, the expansion plans Bahrain, Doha and India. – which are being considered by He said he would be keen the German authorities – are vital capacity bottleneck over the ple working at the airport, FRA is to forge a link with Etihad if the airport is to retain its posi - coming years. the biggest employment complex and its Abu Dhabi hub. tion as a major European hub. With 54.2 million passengers in at a single location in Germany,” “I am interested in talking “We need to have the work com - 2008, it ranked eighth in the the company says. to them about the possibility plete by 2011,” Von Kienle says. league table of the world’s largest But without the expansion, of laying on a coach service Germany’s legacy carrier airports. On the European level, it Fraport is concerned it would lose from Fujairah to Abu Dhabi. Lufthansa and its Star Alliance is number two in terms of both its place as a European hub to Passengers are currently partners account for the lion’s passengers and freight. other major airports. bussed from Dubai to Abu share of traffic at FRA but Frankfurt accounts for about “In view of the growing compe - Dhabi. because of continuing airline 32% of the total German passen - tition with other European hub “It’s a simple and obvious demand for slots and the long- ger air traffic and for about 63% of airports, sustainable growth in thing to do. You could start term growth in international air the total airfreight traffic. “With capacity by expanding our airport with one coach a day and transportation, FRA will face a currently more than 70,000 peo - is indispensable. I once you got to four or five coaches a day, you could switch to an aircraft.” Oz’s Jetstar flies to NZ The emirate is a favourite destination for family holi - Qantas Airways subsidiary Jetstar is to start the Sydney-Auckland route and will continue to days, attracting many people serving New Zealand’s largest city, Auckland. operate four daily services, says Jetstar. from Russia, northern Europe Jetstar will serve Auckland from both the Gold Air New Zealand and Virgin Blue’s Pacific Blue and the GCC. I Coast and Sydney from 28 April ’09 using Airbus currently operate on the Gold Coast-Auckland A320s. Flights will be operated daily on both route, according to Innovata. Operating on the For more news, routes. Sydney-Auckland route are Aerolineas Argentinas, images and Gold Coast-Auckland will be a new route for Air New Zealand, Emirates, Lan and Qantas. videos go to: the Qantas Group. Qantas itself already serves I More about Auckland’s success on page 24 flightglobal.com/ab

flightglobal.com/ab October 2008 I Airline Business Daily @ Routes I  NEWS

Routes’ marketing awards European go glitteringly geographical award BAA SEES NEW winner INTEREST IN STANSTED Athens BAA, which manages seven airport’s airports in the UK, is seeing And the Georgios increased interest in London Karamanos Stansted from Air Asia X and with the other carriers looking for AB Daily winners alternatives to over-congested distribution girls Heathrow and Gatwick. sponsored “Air Asia X has said publicly are... by the that they are interested, and airport we hope they will choose us,” said BAA group marketing man - BY ALAN PEAFORD or the first time the coveted ager, airlines, Justin Baines. Routes Airport Marketing “We are talking with several F Asian awards were based on geo - Awards are highly prized by re - The ORBIS award for corpo - carriers about Stansted.” Last graphical regions rather than cipients, because they are voted rate social responsibility went to week BAA received approval airport size and last night, at a for by their industry partners – GMR Group for enhancing the for additional passenger glittering awards dinner, held at the airline network planning quality of life in the communities throughput at Stansted, which KL’s fabulous Titiwangsa Lake community,” says Alan Glass, most closely affected by the will raise its capacity to 35 Garden and sponsored by OAG, President and CEO of OAG, who building of the new airport in million. airports from around the world presented the awards. Hyderabad. I With the multi-airport offer - were recognised by their peers ing, Baines believes that the for excellence. choice of airports in England or During the event trophies were Scotland depends on the busi - received by Bahrain international ROLL CALL I WINNERS: ness model of the carrier. airport, which was voted best in “Some airlines have a more the ‘Middle East & CIS’ category Europe: Winners: Athens Newark Liberty int’l airport point-to-point focus, and others and Gold Coast airport, which int’l airport and Brussels Asia Pacific: Winner: want the connections of won the ’Asia Pacific’ category. airport. Highly Commended: Gold Coast airport, Australia. Gatwick or Heathrow,” he said. John C. Munro Hamilton inter - Manchester airport Highly Commended: Stansted makes sense for national airport of Canada picked Africa: Winner: Jomo Kenyatta Singapore Changi airport more point-to-point service by airlines that might not be in - up an award for best airport in international airport (Kenya Middle East – CIS: cluded in a major alliance. the ‘Americas’, while Jomo Keny - Airports Authority). Highly Winner: Bahrain int’l airport. BAA’s recent news has been atta international airport in Commended: Julius Nyerere Highly Commended: Abu that Gatwick is up for sale, and Nairobi was crowned best of its int’l airport; Cairo int’l airport Dhabi Airports Company; the group is starting to handle kind in ‘Africa’. In the ‘Europe’ Americas: Winner: John C. Moscow Domodedovo airport formal inquires. But Baines category, two winners were cho - Munro Hamilton int’l airport. Orbis Award: noted that selling Gatwick “by sen: Athens international airport Highly Commended: Dallas/ itself will not change the capac - and Brussels airport. Winner: GMR Group Fort Worth int’l airport; ity situation in London”. I “The Airport Marketing

Smoking lounge ads up to free solution

BY MIKE MARTIN “We had a problem on the plete ban in all public places. But for a glitch in logistics, dele - logistics so the MediaLounges “What is interesting is that many gates to Routes 2008 would now be did not arrive,” said Medi - UK airports are very interested in able to sample a high-tech’ smok - aLounge chief executive Jeanine the product and we are talking to ers lounge planned for demonstra - Roberts. “However, we are talk - them even though the law as it is tion at the show. ing to a lot of people and we have written means at the moment they The four lounges never made it, found a lot of interest in the cannot use the MediaLounge. but the team from MediaLounge product already.” However, I believe that there is is still talking passionately about The first MediaLounges are some lobbying going on to try to how their product can transform scheduled for installation at Riga modify the law.” things at airports – and it does not and Dubrovnik early in 2009 and The MediaLounge works as an cost the airport anything. talks are underway with a number air cleaner, continuously cleaning Airports get the MediaLounge of airports. the surrounding air. At its heart is a CEO Jeanine Roberts presents free while the company makes its That includes airports in the suite of five filters that remove par - a breath of fresh air from money by selling advertising space UK where the blanket anti-smok - ticles, odours and gases to a level MediaLounge that is displayed on the structure. ing legislation imposes a com - of 99.9%. I

8 I Airline Business Daily @ Routes I October 2008 flightglobal.com/ab NEWS

Passengers will ‘love’ Prague’s new runway ‘Friendly’ airport targets customer satisfaction

BY MIKE MILLER cussed and we are spending a lot rague Airport expects to of money to change the windows Pspread more love as it adds a and add soundproofing to the new runway, an additional train local community around us,” he link to the city centre and adds said. “We want to be a friendly Aircraft’ may be added next year”, Prague loves you! From left: customer service training to make airport, and that includes how we added Dvorak. Alesia Bylena, Aida Asimovic, its passengers even more satisfied. develop the new runway and how Prague, which already has non - Naomi Wing and Marina Tyrykina The airport has secured per - we deal with the local people stop service to 128 destinations, is mission to develop a new 3,500- who live nearby.” branching out from its mostly Prague as a point of future service. metre runway that will take two The airport expansion coin - Central European service pattern “We are growing, and not every - years to secure planning permis - cides with the ongoing campaign to attract more nonstop services one is growing,” he noted. Prague sion and an additional two years of ‘love’ that the city and airport from Asia. is expected to experience a 7.5% to build. The planned opening are using to show their friendli - Prague has nonstop passenger boost in seat capacity during will be either 2012 or 2013, ness. Their first use of ‘Prague service to Seoul on Korean Air, 2008. The country is trying to Prague airport’s CEO Miroslav loves you’ began last year and this and a cargo service to Taipei on keep pace as well, with the Czech Dvorak told Airline Business theme has been carried on at China Airlines, and Dvorak be - Republic adding 100km of new Daily . Routes. It’s likely that a “side lieves airlines in China, Taiwan roads each year in the Central Eu - “Green issues are being dis - campaign of ‘Prague Loves Your and Japan will be looking at ropean country. I

Copenhagen targets low-cost carriers IN BRIEF SOFIA’S RAPID BY MIKE MILLER Taking aim: s airlines cut costs in all Copenhagen’s GROWTH Asectors, Copenhagen airport Ole Wieth CONTINUES believes its new low-cost termi - Christensen – Sofia Airport is continuing nal will be the solution. The air - darting in its rapid growth in passen - with some port is targeting low-cost carriers ger traffic having doubled competitive and those seeking a lower rate prices at the its passenger numbers over operating into a new terminal new low-cost the past four years. And for with new rules. terminal the first time in the airport’s Airlines can receive a 50% 70-year history, the traffic discount if operating into the will exceed three million. new CPH Swift terminal, which Around 1,000 scheduled, was just announced this month. charter, cargo and business “Our airlines are very competi - aviation flights take off and tive on prices, and we are land at Sofia Airport every offering this terminal to accom - week connecting Bulgaria modate them,” said Tina Bendix, to the major European Copenhagen’s marketing coordi - ready using the airport. They ex - to meet a 90% check-in self-ser - capitals. The network of nator. pect to break ground for the ter - vice threshold as well. Most of direct air routes covers 65 The terminal is planned for minal in January 2009. the passengers will have to destinations. summer 2010 completion and But the airport is adding sev - check in via the Internet, mobile Having established Ryanair already has expressed eral efficiency requirements for ‘phone or at self-service kiosks. partnership relations with publicly its intention to explore an airline to receive a 50% dis - Copenhagen also does not 45 airlines, the airport is using the new terminal. Swift count. Airlines must have a 30- want transit passengers at the attracting new carriers and could accommodate an addi - minute turnaround on flights new terminal. “It’s about being enjoying particular success tional three million passengers, into Swift, which will not have fast and efficient, for the airlines with the low cost carriers. on top of the 21.4 million al - any jetbridges. Airlines will have as well as for us,” said Bendix. I

10 I Airline Business Daily @ Routes I October 2008 flightglobal.com/ab NEWS

Special mission for ‘odd man out’ Embraer uses Routes as the perfect networking venue

BY MIKE MARTIN hey are neither airport nor air - Tline, but a major aircraft manu - facturer – Embraer is at Routes 2008 on a major networking mission. A team from aircraft manufac - turer Embraer’s regional office in Singapore is at Routes making contact with route planners from the airlines. It wants to know their current thinking on route planning You’ve got to hand it to them: and to promote the cause of its Priscilla Doro Solymossy E-Jets regional aircraft family. and Bernard Tan of Embraer – “It is not the main point of the on a major networking show, but there are a lot of airlines mission at Routes here and it gives us an opportunity to find out more about what they are thinking,” said Priscilla Doro cards.” Solymossy said that there The site enables airline users to duced anymore and will need to be Solymossy, airline market analyst are airlines at the event that make a comparative analysis of the replaced,” said Solymossy. with Embraer. Embraer is not currently in contact performance of existing aircraft “The high cost of fuel is a big “The route planners are a very with and she hopes to touch base against the Embraer E-Jets family. issue at the moment, as is environ - important part of the process, so it with them during Routes. “There are a lot of older aircraft mental performance. The website is is very useful to meet them and The Embraer team is also keen to operating in Asia, aircraft like the a very useful tool that can clearly maybe discuss their requirements, promote its recently-launched Fokker 100 and the older Boeing demonstrate the benefits of aircraft or even just to exchange business www.eforefficiency.com website. 737s and they are not being pro - replacement .” I

ASM spreads its expertise widely IN BRIEF

BY ALAN PEAFORD new air services to boost tourism Macau Airport to identify a strate - ROUTES SOLVES oute Development consul - and the local economy. gic marketing plan to strengthen its HIDE-AND-SEEK RIDDLE Rtancy ASM, (Booth N21) an - Macau airport is seeking to position in the region.” Routes has launched a new nounced two major projects in the develop a five-year route develop - The St. Lucia Tourist Board has free service to help airports Caribbean and in China yesterday ment strategy covering the period appointed ASM to increase the find new airlines quickly. Hosted at the show. from 2009 to increase the airport’s number of passengers by 50% – on the event’s official website Both the St. Lucia Tourist Board revenue and productivity. recognising the vital link between Routesonline.com, ‘Airline and Macau’s international airport “The wider south China market, air services and tourist develop - Opportunities’ allows airports have asked the firm to assist them especially Macau, is a very exciting ment. Over the next few years, to load both their new route in developing market opportuni - and promising market,” says John there will be a significant increase opportunities and routes that ties and potential. The projects are Grant, managing director of ASM. in the hotel bed stock on the island are soon to be withdrawn. focusing on the introduction of “With our analysis we want to help with the introduction of further Airlines can then search these high-end properties. routes and assess which city Dipping into Despite an increase in visitors pair is right for them. For airports, it is vitally China and from North America and Europe, the important that a new airline is the island’s aviation environment Caribbean: found, before the current carrier has recently undergone significant Mark ends the service. In this way Clarkson upheaval and disruption. As a re - the market remains in place (left) sult of the reduction of American rather than passengers having and Tony Eagle services from San Juan, tra - to find new ways to do the Griffin of ditionally the hub airport for main - journey. On ‘Airline Opportuni - ASM at the land US, and the consolidation of ties’, airports can literally put a show intra-Caribbean carriers, the num - route opportunity back into play ber of visitors from other points in within seconds. I the region has been impacted . I

12 I Airline Business Daily @ Routes I October 2008 flightglobal.com/ab NEWS

Amman and Vegas makes room for more Brussels to be Bets on future success linked again mean big changes for Vegas

Europe’s ‘capital city’ is to BY ALAN PEAFORD resume air links with Jordan ne of the most famous cities in following the announcement Othe world is still under-served that Royal Jordanian will by international airlines – but that recommence flights between should soon change. the Jordanian capital Amman Las Vegas is adding 30,000 new and Belgium, from 1 April hotel rooms over the next few years 2009. (“that’s the same number of rooms Royal Jordanian will serve as the whole of Cancun”, says the the route twice weekly, on city’s vice president of interna - Saturdays and Wednesdays, tional brand strategy John Bischoff) using Airbus A319s that as well as opening a new terminal were recently added to the at McCarran airport. Virgin Atlantic began direct portunities particularly from China fleet. The expansion will give Las flights from London in 2000 and and elsewhere in Asia,” says Brussels says the route Vegas 170,000 hotel rooms by achieved daily flights in 2006 with Bischoff. will stimulate relations 2012 when the new terminal impressive loads and yield accord - While many people would think between Jordan and opens. For the past two decades ing to Cathy Tull, vice president of of Vegas in its role as the gambling Belgium, facilitate business Vegas has been the fastest growing strategic planning for the Vegas capital of the world, Bischoff is and serve the Jordanian and city in the USA and increasingly convention and visitors authority. anxious to sell the fact that there is Arab communities living in one of the leading domestic Condor fly from Germany, Korean much more to do. Belgium. Royal Jordanian tourism destinations. Airways and a number of “We have three key strands,” suspended services to “We are also seeing a growing Canadian and Mexican airlines fly says Bischoff, “entertainment, fine Brussels in 2003. number of international visitors,” direct. Phillipine Airlines also dining and retail. There are seven The introduction last year says Bischoff. “But there are still serves the city with one stop in Cirque du Soleil shows for exam - of direct freighter services too few international airlines Vancouver. ple, we also have many of the lead - between Brussels and serving the route.” “We think there are many op - ing restaurateurs of the world” I Amman proved very success - ful, and Wilfried Van Assche, CEO of Brussels airport, says there is no doubt that the DFW adds new runway bypasses new passenger flights will be very popular with both busi - BY MIKE MILLER vice president. By limiting cross- as possible,” said Bill Frainey, ness and leisure passengers.” allas/Fort Worth International runway taxiing, DFW hopes to im - DFW assistant vice president. Brussels airport currently DAirport, which has been prove the level of safety for airlines. Frainey believes DFW will see a handles 17.8 million passen - developing its own natural gas DFW, which this year gave smaller passenger seat decline this gers and 780,000 tons of business under the airport’s run - Routes a two-year commitment as year than other airports its size in freight annually, linking the ways, is adding new perimeter ‘meeting hall sponsor’, has been the USA saying that current figures European capital with 225 taxiways to improve airline block using its newfound natural gas rev - show just a 5% drop. “But we may destinations worldwide that times and increase safety margins. enue to advance capital projects do better than that,” he said. are served by 96 different The southeast airfield runway throughout the airport, such as the The airport has experienced a airlines: 80 passenger bypass is under development and taxiway project. “It’s unique that steady growth in business to Asia, airlines and 16 full-freighter DFW “eventually will do the same we have this new revenue and we with non-stop passenger services airlines. I for all four airport corners,” said want to use it wisely to pay down to Tokyo and Seoul, and an exten - Christopher Minner, DFW assistant debt and advance as many projects sive cargo network. I

UK-based air transport consultant and writer David tion of a major airport is taking place, with the 99-year New report Bentley – an associate with organisers RDG – has lease on Chicago’s Midway airport. on airport just published the latest in his series of management Bentley says: “Despite occasional hiatuses brought reports on airport privatisation and financing that about by the terrorism of September 2001 – and the privatisation began in 2000. The first two were published by ‘credit crunch’ now – there is still an appetite among Euromoney and the latter two by the Centre for Asia investors globally to acquire airports, and the number Pacific Aviation. of investors is growing.” This fifth report is self-published and is aimed partly Current deals include London Gatwick; Charleroi- at the North American market where the first privatisa - Brussels South, Belgium; and St Petersburg Airport. I

14 I Airline Business Daily @ Routes I October 2008 flightglobal.com/ab NEWS I TAASS SUMMIT

Climate change is a game changer Aviation’s increasing carbon footprint will add pressure on the industry

BY MIKE MARTIN limate change threatens avia - Ction and tourism business growth and the industries must develop strategies to meet the challenges. Even if the industries manage to maintain growth, they will be impacted in a range of ways. That was the message from Professor Callum Thomas of the UK’s centre for aviation and the en - vironment, speaking yesterday at the 1st annual Tourism and Air Far-reaching consequences: Professor Callum Thomas Service Development Summit at throws out the climate Routes 2008. change challenge The growth in tourism has been to the industry phenomenal in recent times and will continue to grow, but will increasingly come up against a tourism.” Thomas pointed to the With IATA calling for a carbon mer, the traditional tourist migra - range of challenges posed by impact of the SARS epidemic and neutral goal by 2020 and a carbon tion to those regions in August climate change, he said. two Gulf wars on the industry. “The free industry within 50 years, the could end and the high season shift “In the whole of 1950, around magnitude of climate change aviation world will never be the to spring and autumn. Worse, areas 14,000 British people went to means it will be a more significant same, said Thomas. “People of southern Europe could become Greece. Now, more than that arrive event than any of these.” would have laughed at me if I had uninhabitable. on a wet Wednesday in March,” he He pointed to the commitment suggested this five years ago. They “Climate change threatens avia - said. by several governments dramati - would have locked me up!” tion and tourism growth,” said

“When you see the dramatic cally to reduce levels of CO 2 One result will be that the cost of Thomas. “We need to integrate changes that happen in just a emissions, the growing awareness travel will increase, he said. An - tourism planning and aviation decade you can see that major of the general public in many other will be a climate change-re - planning and begin to anticipate change can create whole countries and the activism of the lated shift in travel patterns. how climate change will affect all economies or make them disap - environmental lobby, most re - With some scientists warning of these things not in 100 years pear. Much of the economy of cently targeting travel agents for that temperatures in southern Eu - time, but in ten, 20, 30 or 40 years southern Europe is dependent on protest action. rope could hit 45 degrees in sum - time.” I Dubai vision “will weather financial crisis”

BY MIKE MARTIN ment Summit, she said that Homayoun outlined the Dubai come synonymous with mega ubai’s aviation and tourism Dubai’s extraordinary develop - Airports marketing strategy be - projects such as the Palm islands Dbusiness community is confi - ment had been won against a hind the amazing growth of Dubai and the world’s tallest tower, she dent that the strength of its indus - background of two gulf wars, the International Airport which in said that part of the marketing try and continued demand for 1990s financial crisis in Asia and 1960 handled 10,000 passengers approach was to focus on other international travel the SARs epidemic. on 776 flights. Last year, the aspects of Dubai as a destination. will see the emirate “We took incredi - airport hosted 123 scheduled air - These included a focus on through the present ble decisions during lines linking 210 destinations. traditional Arab culture, sports financial crisis, Anita these times,” she Under government plans, and retail-related events. Mehra Homayoun, said. “We decided Dubai is targeting 15 million Famously, an event called Dubai vice president mar - to buy the largest tourists a year by 2015 and is Summer Surprises was launched keting and corporate number of Airbus already nearly half way there in the hottest weeks of the year, communications, A380s (of any air - with an estimated seven million when temperatures can hit 45 Dubai Airports, said line) at the time of expected for 2008. degrees or more. The strategy yesterday. the gulf war. We are Homayoun said that Dubai had was highly effective, attracting Speaking at the still very positive been enjoying consistent double many visitors from the neigh - first Tourism and and we will con - digit growth in excess of that of bouring GCC (Gulf Cooperation Air Service Develop - Anita Mehra Homayoun tinue to do that.” China and India. While it has be - Council) countries. I

18 I Airline Business Daily @ Routes I October 2008 flightglobal.com/ab NEWS

Small country is thinking big Swaziland building infrastructure for tourist boom

BY ALAN PEAFORD land’s own Hlane and Mlawula t is one of the smallest coun - national reserves on the border Itries on earth, but Swaziland with Mosambique where, Dube is investing in a new interna - says, the big five (buffalo, lion, Hats off to Swaziland: tional airport and is determined leopard, elephant and rhino) Solomon Dube to put itself on the map for are plentiful. calls for more international airlines. “Swaziland is a very safe international “We are at Routes for the first place for tourists and to do links time,” says the ministry of business,” says Dube. The new economic planning’s principal airport will improve transport aviation manager, Solomon links in the county with cargo Dube. “We think there are many and freight facilities to enable opportunities for international an efficient means of exporting airlines, especially those that are indigenous products such as looking for an alternative to fruit, livestock and sugar. South Africa for visitors wanting The new terminal at Sikhuphe to experience a safari holiday.” will feature a high thatched roof The planned new airport at in the style of a traditional build - pany masterminding the design runway – a kilometre more than Sikhuphe in the heart of Swazi - ing. “The government wanted and marketing of the new airport. the existing airport at Mbabane. land is closer to South Africa’s something that would blend in The high roof also allows a “This will allow long haul aircraft Kruger national park than the well and get the support of the reduction in air conditioning, to come direct. At the moment the existing entry point at Johannes - people,” says Ju-liang Trigg from reducing environmental impact. airport is served by Swazi Air burg. It is even closer to Swazi - Vector Management, the com - The new airport has a 3,600m Link to South Africa only.” I

A taste of things to come from Sweden New routes

BY ALAN PEAFORD During the Dubai Routes, With a 150 square metre area we Compared to this time last A chance comment at the Routes booth designer Hans Lian intro - can offer a trendy and inviting year, 2,092 new routes have event in Dubai two years ago duced a demonstration of environment with something re - been launched or reinstated. has led to an exciting new fran - Swedish food prepared by top ally special,” says Karin Aman, A total of 17,463 flights now chising operation being unveiled Swedish chef Leif Mannerstrom project manager. operate on these new routes at this year’s event. to enhance the booth of the The first of the Scandinavian every week, with a combined Scandinavian exhibitors. “We lounges opened at Gothenburg capacity of 1.8 million seats had some visitors from Russia Landvetter airport in May and a according to OAGback who wanted to know more second is currently under Aviation Solutions. about the food stand and we construction at Stockholm Ar - The company has con - realised we had a potential good landa and will open next month. ducted an historical analysis business idea,” Lian says. “The concept will work of its schedules database The result is Andersson Food anywhere in the world,” Aman over the past year to identify and Akvavit, a franchise con - says. “We hope that Airports world rankings of all new cept offering Scandinavian visiting Routes will come and routes. gourmet food to airports. look and see what is possible.” Topping this global chart Leif Mannerstrom is here at Chef Mannerstrom is recog - with the highest number KL demonstrating the type of nised around the world as being of operations is the route food that will be offered at the top of his profession as between Port of Spain and including pickled herring, well as being an expert in Scan - Tobago airports in Trinidad smoked salmon with vasterbot - diavian cuisine and traditional & Tobago with 281 flights ten cheese, smoked game with preserving methods. “It is good per week, all operated by horseradish and skagen with to get people to experience this Caribbean Airlines. This bleak roe. food,” he says . I route is also at number one “Food and Akvavit offers light when all new services are food and some of our special For more show news, ranked by capacity, offering Cheers: Gourmet offering from chef spiced schnapps which is ideal images and videos go to: 14,838 seats per week. Leif Mannerstrom and Karin Aman for people waiting for a flight. flightglobal.com/ab

20 I Airline Business Daily @ Routes I October 2008 flightglobal.com/ab FOCUS I INDIA

REPORT I NICHOLAS IONIDES

Happy times ahead: (From left) CURRYING Hyderabad’s Krishna Kumar G, Raveen Pinto and FAVOUR Subhash Murikenchery at the show, Hyderabad is looking into whether looking forward to future it should instigate expansion plans expansion

ndia’s Hyderabad Airport has launched lion at the old airport in the last financial year in October international demand typically picks studies to determine when expansion work and representing growth of more than 25%. up and in November domestic picks up.” should begin as passenger and cargo Cargo throughput is also forecast to increase State-owned Airports Authority of India throughput has continued to grow at healthy this financial year by around one third, to (AAI) operated Hyderabad’s old airport but the Irates since its March opening. 65,000t from 49,000t. Viswanath said there was new facility was built through a government- Chief commercial officer A. Viswanath told a 42% increase in exports in the first half as the private sector partnership. Airline Business Daily that the airport expects airport’s longer runway means there are no Energy and infrastructure group GMR has to complete its studies early next year and he longer payload restrictions. 63% of the joint venture behind the new airport. expects expansion work to begin in two to three Viswanath said despite the global economic Malaysia Airports Holdings has 11% while AAI years. uncertainty that has already seen many airlines and the government of the Indian state of “We are presently doing the capacity con - cutting their capacity, Hyderabad airport has not Andhra Pradesh have 13% each. straint study and by March we will come up been affected. He said Gulf Air and Air India GMR and Malaysia Airports are also partners with some plans for expansion of the airport,” Express have started serving the airport in in the Indian capital Delhi’s airport, which was he said. “Around 2011 we will be looking at recent months, while Air Arabia begins serving privatised in 2006 through a long-term lease expansion.” it this month and British Airways in December. agreement. A new runway recently opened at The all-new airport opened in March to Emirates has also increased its passenger Delhi while upgrade work on the international replace the southern Indian city’s old airport, services to three flights per day. terminal was also completed. which was at capacity. Lufthansa Cargo and Singapore Airlines’ SIA Modernisation works are currently underway It currently has a design capacity of 12 Cargo have also begun serving the airport this at the existing domestic arrival terminal while a million passengers annually and its first termi - year, adds Viswanath. “We have been doing new domestic terminal is also being built, in nal was designed to allow for an increase to 20 very well this year,” he said. addition to a much larger new domestic and in - million. A second terminal is planned for later “In August and September passenger vol - ternational terminal that is due to open in 2010. stages along with a second runway, allowing for umes slowed down more than we expected, but Although demand has slowed in recent at least 20 more million passengers to be months, India’s air transport sector has ex - handled annually. “Despite the global economic panded rapidly since 2003 as new airlines have Viswanath said he expects initial expansion been launched and foreign carriers have been uncertainty that has seen many work on the first terminal to take between eight given additional rights to serve the country. I and 12 months, lifting capacity to 15 million airlines cutting their capacity, passengers annually. Hyderabad airport has not been For more show news, images He said 7.8 million passengers are expected to affected” and videos go to: be handled this financial year, up from 6.2 mil - flightglobal.com/ab

MUMBAI TO HANDLE 40 MILLION TIRUPATI GOES INTERNATIONAL Mumbai’s Chhatrapati Shivaji international airport is moving India’s government is to open Tirupati airport in the state of Andhra forward with plans to expand its new integrated terminal to handle Pradesh to international flights. The Ministry of Civil Aviation says the 40 million passengers, up from the current 26 million. government has given approval for the existing domestic airport at With 650 current daily flights, the growth would mean topping Tirupati to be designated an international facility. 1,000 daily frequencies, a level unheard of just a few years ago. Tirupati is in the state of Andhra Pradesh and is a prominent city for The infrastructure investments are being made to expand the every religious pilgrimages. It has been growing in popularity as a tourist segment of the airport’s operations for Mumbai, which already is destination and the government says its airport has seen passenger India’s largest international airport. throughput more than double over the past two years, “indicating very The facility expansion includes building 250% more jetbridges, high potential”. to 66 total, and expanding parking stands from 84 to 106. In The airport is able to handle Airbus A320-sized aircraft and its terminal addition, Mumbai is in the middle of building 11 new taxiways, a building can accommodate up to 300 passengers at one time. The min - new cargo complex and adding 8,400 new parking spaces. I istry says a proposal is under consideration for a runway extension. I

22 I Airline Business Daily @ Routes I October 2008 flightglobal.com/ab FOCUS I NEW ZEALAND

REPORT I ALAN PEAFORD PIERING AT FINE FUTURE PROSPECTS Auckland’s new pier an investment in NZ’s future he completion of a new US$50 million pated arrival of aviation’s super-jumbo, the international terminal pier at Auckland Airbus A380. Pacific blue to airport marks the next stage in the Auckland airport is ready to roll out the airport’s development that will even - welcome mat from 1 February 2009 when Emi - serve Kiwis Ttually provide for a projected 25 million rates begins a daily A380 service between passengers a year by 2025. Dubai, Brisbane and Auckland. Auckland Air - The new international pier was officially port is the only airport in New Zealand that opened last Friday and becomes fully opera - can host the double-decker aircraft. y a r r tional for passengers on 21 October. The completion of the new pier ends a major u M g i

Auckland Airport chief executive officer construction phase at the international termi - a r C

Simon Moutter says, “The new pier marks a nal. In April 2008 a new arrivals area opened, © significant milestone for New Zealand’s gate - greatly increasing the facilitation of arriving Pacific Blue begins flying its newest way, providing the capacity and environment passengers, followed by the completion of the trans-Tasman route today from Auckland to to support the country’s tourism, travel and expanded border agency screening hall in July. Sydney. It announced a jump in capacity on trade, both now and well into the future.” The airport has gone out of its way to create the Tasman in July, offering daily flights It has been designed with expansion in an authentic ‘Kiwi feel’ for passengers from the from Auckland to Melbourne and nine mind and to accommodate the next generation moment they step off the aircraft. Throughout flights a week from Auckland to Sydney of larger sized planes, including the Airbus the arrivals and departure halls is some spe - using 180-seat Boeing 3-800 aircraft. A380. cially selected imagery of unique wildlife and The move prompted the airline’s competi - “The new pier will greatly improve service plant life, bringing the great outdoors to life tors to drop their lead-in fares on the to passengers by giving us the ability to handle and hinting at just some of what New Zealand routes significantly. more aircraft at peak times and offering further has to offer. The airline’s commercial GM, Adrian world-class facilities in Auckland for the Hamilton-Manns says that Pacific Blue has travelling public” Simon says. STUNNING VIEWS been in a strong growth phase in the past All passengers will benefit from the extra Large windows in the pier offer an insight to 12 months, launching a New Zealand aircraft capability as it will reduce the number the busy airport environment as well as out to domestic airline and announcing a range of of situations where passengers are bussed to the stunning Manukau Harbour. On the depar - new international routes and destinations. and from aircraft. ture level is a sculpture by New Zealand artist “Our combination of a modern fleet, Four years in the planning, the new pier has Konstantin Dimopoulos encouraging passen - high quality service and affordable fares been built to meet increasing passenger num - gers to reflect on their idea of New Zealand. has struck a chord with New Zealanders. bers and to accommodate the much antici - Auckland Airport’s new international pier is We’re very happy with the support Kiwis also setting a trend in environmental design have shown for us as we’ve introduced featuring solar heating for public toilet hot real competition into the domestic market, water and rain water harvesting, with an esti - and we’re confident of their continued “The new pier marks a significant 3 mated 4,000m of recycled rainwater per year support on our international services. milestone for NZ’s gateway, expected to be collected from the roof. “Our strategy is always to look for providing the capacity and The pier has highly filtrated air and carbon markets that are under-served – not just environment to support the dioxide sensors and underwent a ‘flushout’ in capacity but also in terms of value for country’s tourism, travel and trade” period to reduce levels of dust, odours and money,” he said. I chemical contaminants. I

24 I Airline Business Daily @ Routes I October 2008 flightglobal.com/ab DATA BURST

TOP 10 ROUTES I BY SEATS OFFERED EUROPE – NORTH AMERICA

RANK AIRPORT 1 AIRPORT 2 SEATS LEAD CARRIERS NAME CODE NAME CODE PER WEEK CARRIER 1 CARRIER 2 1 LONDON HEATHROW LHR NEW YORK JFK JFK 4,380 BRITISH AIRWAYS VIRGIN ATLANTIC 2 LONDON HEATHROW LHR LOS ANGELES LAX 40,0 BRITISH AIRWAYS VIRGIN ATLANTIC 3 LONDON HEATHROW LHR CHICAGO O'HARE ORD 40,446 AMERICAN AIRLINES BRITISH AIRWAYS 4 LONDON HEATHROW LHR WASHINGTON DULLES IAD 30,323 UNITED AIRLINES BRITISH AIRWAYS 5 PARIS CDG CDG NEW YORK JFK JFK 28,914 AIR FRANCE AMERICAN AIRLINES 6 LONDON HEATHROW LHR NEWARK EWR 26,665 BRITISH AIRWAYS VIRGIN ATLANTIC  LONDON HEATHROW LHR SAN FRANCISCO SFO 24,153 BRITISH AIRWAYS UNITED AIRLINES 8 FRANKFURT FRA CHICAGO O'HARE ORD 23,501 LUFTHANSA UNITED AIRLINES 9 LONDON HEATHROW LHR MIAMI INT’L MIA 23,223 BRITISH AIRWAYS VIRGIN ATLANTIC 10 LONDON HEATHROW LHR BOSTON LOGAN BOS 22,250 BRITISH AIRWAYS AMERICAN AIRLINES

EUROPE – ASIA

RANK AIRPORT 1 AIRPORT 2 SEATS LEAD CARRIERS NAME CODE NAME CODE PER WEEK CARRIER 1 CARRIER 2 1 LONDON HEATHROW LHR HONG KONG HKG 4,35 CATHAY PACIFIC BRITISH AIRWAYS 2 LONDON HEATHROW LHR SINGAPORE SIN 3,859 SINGAPORE AIRLINES QANTAS AIRWAYS 3 LONDON HEATHROW LHR MUMBAI INT’L BOM 26,328 JET AIRWAYS BRITISH AIRWAYS 4 LONDON HEATHROW LHR BANGKOK BKK 26,122 THAI AIRWAYS QANTAS AIRWAYS 5 LONDON HEATHROW LHR TOKYO NARITA NRT 22,288 BRITISH AIRWAYS VIRGIN ATLANTIC 6 PARIS CDG CDG TOKYO NARITA NRT 21,589 AIR FRANCE JAPAN AIRLINES  LONDON HEATHROW LHR DELHI INT’L DEL 20,266 BRITISH AIRWAYS AIR INDIA 8 FRANKFURT FRA SINGAPORE SIN 19,44 SINGAPORE AIRLINES QANTAS AIRWAYS 9 FRANKFURT FRA BANGKOK BKK 15,08 THAI AIRWAYS LUFTHANSA 10 PARIS CDG CDG HONG KONG HKG 14,860 AIR FRANCE CATHAY PACIFIC

NORTH AMERICA – ASIA

RANK AIRPORT 1 AIRPORT 2 SEATS LEAD CARRIERS NAME CODE NAME CODE PER WEEK CARRIER 1 CARRIER 2 1 HONOLULU HNL TOKYO NARITA NRT 38,443 JAPAN AIRLINES NORTHWEST AIRLINES 2 LOS ANGELES LAX TOKYO NARITA NRT 29,650 NORTHWEST AIRLINES SINGAPORE AIRLINES 3 SAN FRANCISCO SFO HONG KONG HKG 20,832 CATHAY PACIFIC SINGAPORE AIRLINES 4 SAN FRANCISCO SFO TOKYO NARITA NRT 20,189 UNITED AIRLINES JAPAN AIRLINES 5 LOS ANGELES LAX SEOUL INCHEON ICN 20,126 KOREAN AIR ASIANA AIRLINES 6 LOS ANGELES LAX TAIPEI TPE 19,898 CHINA AIRLINES EVA AIR  CHICAGO O'HARE ORD TOKYO NARITA NRT 1,18 UNITED AIRLINES JAPAN AIRLINES 8 NEW YORK JFK JFK TOKYO NARITA NRT 16,408 JAPAN AIRLINES ALL NIPPON AIRWAYS 9 LOS ANGELES LAX HONG KONG HKG 15,324 CATHAY PACIFIC – 10 VANCOUVER YVR HONG KONG HKG 14,089 CATHAY PACIFIC AIR CANADA

Source: INNOVATA. Data compiled by Flight Insight based on Innovata schedules for 20-26 October

26 I Airline Business Daily @ Routes I October 2008 flightglobal.com/ab NEWS I AIRLINES

Viva Macau bucks trend While others cut services, Korfiatis looks to augment the airline’s offerings

BY NICHOLAS IONIDES two Boeing 767s from its Macau rier is also looking to add more any of the world’s airlines base, to Ho Chi Minh City, destinations in Australia, In - Mmay be looking to reduce Jakarta, Okinawa, Sydney and donesia, Japan and South Korea. capacity amid the global eco - Tokyo. It also operates seasonal He said Viva Macau was nomic turmoil but Viva Macau is services to two points in South hoping to add to its fleet this year looking to buck the trend, with Korea. but it had trouble finding aircraft additional aircraft and new Korfiatis said that between until recently, when 767s became routes next year. now and the middle of next year available on the lease market. Chief executive Con Korfiatis it will be increasing frequency told Airline Business Daily that on all of its existing routes, after CHANGES the Macau-based carrier is look - which it plans to add new “In 2007 we couldn’t find any - ing to add a third aircraft late in routes. thing but things have changed Con Korfiatis: Looking to add the first quarter of next year, as Destinations it is looking at in - markedly in the past few new aircraft and routes to Viva Macau’s portfolio well as a fourth in the third clude points in the Middle East, months,” he said, adding that he quarter and a fifth in the last India and Russia. He said the car - expects to firm up lease agree - grow. We have had no economies quarter. ments soon on the additional air - of scale with two aircraft.” It is also looking to add fre - “Over 15 aircraft are now craft. Viva Macau will be able to ex - quencies on existing routes as “Over 15 aircraft are now being pand despite the economic tur - well as add new routes, includ - being marketed to us at marketed to us at rates that are moil as Macau is continuing to ing to new markets such as India rates that are 40% below 40% below what they were a grow in popularity as a tourist and the Middle East. what they were a year ago” year ago.” destination, best known for its Viva Macau currently operates He added: “We do need to casinos, concluded Korfiatis. I

28 I Airline Business Daily @ Routes I October 2008 flightglobal.com/ab Global uncertainty puts MAS plans on hold China crisis

BY NICHOLAS IONIDES Idris joined nearly three years ago ket over the next few years. If it alaysia Airlines (MAS) has and it has since placed orders for decides it needs additional air - China Eastern Airlines’ financial situation has deteriorated fur - put longstanding plans for a 737-800s for its domestic and short- craft it may be able to get them M ther with the Shanghai-based sizeable widebody aircraft order haul international operations. from other carriers’ orderbooks. carrier expected to make a ‘on hold’ amid the global eco - It has 35 737-800s on firm order “The 35 on order are exactly third quarter loss larger than nomic uncertainty. as well as 20 options and deliver - enough to replace the existing air - anticipated. MAS has been looking at orders ies are due to begin in September craft that we are retiring,” he said. The Chinese carrier said in for dozens of new aircraft in the 2010. Idris says the 35 firm-or - “The additional capacity is the 20 a statement to the Hong Kong 150- to 200-seat size category for dered aircraft will all be for re - options. We expect in the next year stock exchange yesterday that some time and originally planned placement purposes as it phases or so that the market will tank”, re - high oil prices, a general slow- to make a decision by the middle out ageing 737-400s, and a deci - sulting in overcapacity and order down in the aviation market of this year, although this was later sion on options will depend on cancellations that may allow it to and a “dramatic decrease in pushed back to the end of this year. the state of the air transport mar - “pick up aircraft relatively cheap”. transportation demand during Managing director Idris Jala the third quarter” have led to said on the sidelines of the Routes Idris Jala: a greater financial loss. event in Kuala Lumpur that the Being wise The Chinese Government’s and not order plan is now being deferred decision to clamp down on issu - hurrying further. “We are still looking very ing tourist and business visas decisions has led to a drop off in arrivals. intensely at the widebodies but it in the China Eastern, which is one of is clear that we will delay the uncertain the country’s big three airlines, process to look at what is hap - climate already posted a 212.5 million pening in the market,” he said. yuan ($31 million) net loss for MAS has been carrying out a the first two fiscal quarters. wide-ranging restructuring since I

flightglobal.com/ab October 2008 I Airline Business Daily @ Routes I 29 AFTER HOURS

Left: The Suria KLCC at the foot of the colossal Petronas Towers

BATU CAVES For something a little different to do after you have finished pounding the halls, how about a trip to the spectacular limestone Batu Caves. Discovered in the 1890s, and situated seven miles north of Kuala Lumpur, there is a series of caves and cave temples – a sacred place for Malaysia’s Hindus. Fairly early on the caves’ discoverer, K. Thamboosamy Pillai installed the conse - crated golden murti (statue) of Sri Subramania Swamy in what is today known as the SHOP ‘TIL YOU DROP Temple Cave. And since 1892, the colourful Thaipusam festival (late Jan/early Feb) MEGA MALLS ‘N’ MARKETS has been drawing huge f you need to get that last minute the foot of the towers. If you’re after Pudu Market ( Jlln Pasar Baharu ) crowds of devotees and Igift before heading home KL has electrical goods such as computers is a great place for stroll and expe - spectators to the site. some huge shopping malls full of and laptops head to either Plaza rience local market life, and will Prepare for a little simian all the well-known global chain Low Yat or Imbi Plaza located in certainly wake your senses up. attention, as there is a large and designer stores, as well as the Golden Triangle. It’s not so likely you will buy a local monkey population, and housing entertainment venues and If you want something more gift here as it is a massive, and fran - a word of warning – if you are many restaurants and bars. authentic KL has quite a few daily tic, food market selling everything feeling a little jaded after the Mid Valley Megamall is exactly markets. Central Market ( Jalan from fruit and vegetables to all dif - conference, note you will have what it says – a mega mall with Hang Kasturi and Jalan Cheng ferent kinds of fish and meat – with to climb a steep flight of 22 over 300 stalls, an 18 screen Lock: open 10am-10pm ) in China some perhaps not being to west - steps to get to the main cinema and a bowling alley. Town is housed in an art-deco erners’ taste, such as a pig’s penis! Temple cave, the ceiling of Berjaya Times Square is building and is packed with bar - You can also stop for some which is 100m high! Southeast Asia’s largest mall, gain gifts and souvenirs available, breakfast at neighbouring Pusat To get to the caves take which also houses an amusement from textiles and sculptures to Makanan Peng Hwa, a 24-hour Intrakota bus No 11D from the park and multiscreen cinema. If clothes and handmade jewellery. food market. Central Market annexe or the you specifically want a designer You can even stop for lunch on the Each Saturday, the evening mar - Cityliner bus No 69 at Jalan label, Starhill Gallery is the place first floor at the Malay food court. kets (pasar malam) spring to life in Pudu. Taxis are also available to go, remember your credit cards! Chow Kit Market is full of the streets around Little India and anywhere around city. Kill two birds with one stone (if household and everyday items but Kampung Baru, with an assort - you haven’t paid a visit to the you can also pick up a songkok – a ment of items available. It’s also a colossal Petronas Towers at Suria traditional fez. great place to grab a bite to eat at KLCC) and visit the mall based at If you’re an early bird the huge one of the many hawker stalls. I

USEFUL NUMBERS I INFO ¥Country Code : Health Risks: Kuala present in Sabah, Sarawak Airport Information Malaysia – +60 Lumpur is generally safe and some remote areas in Kuala Lumpur Area code: 3 from most sanitation- peninsular Malaysia. Use International Airport Emergency Services related diseases. However, insect repellent when ¥8 8888 Police/Ambulance – 999 it is still wise to take extra visiting the countryside. www.klia.com.my Fire and Rescue – 994 precautions. Make sure Hospital Kuala Lumpur meat is cooked very well, Tourist Information Car Hire Jln Pahang avoid local dairy products Malaysian Tourist Centre Avis and peel fresh fruit/raw 109 Jln Ampang 2615 5555 www.avis.com.my ¥ vegetables. Tap water in www.hkl.gov.my ¥2164 3929 ¥2144 448 the cities is considered www.mtc.gov.my Hertz Pharmacies are easily safe, but it is wise to buy Tourism Malaysia www.hertz.com.my located in KL, many in the bottled water especially if shopping malls. The most www.tourismmalaysia.gov.my you are staying on after the KL Sentral common one is called show and plan to travel to 224 6063 Guardian. rural areas. Malaria is ¥

30 I Airline Business Daily @ Routes I October 2008 flightglobal.com/ab