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Asia’s airline traffic remains depressed

KUALA LUMPUR, 1 March 2022: Preliminary January 2022 traffic figures released Monday by the Association of Asia Pacific Airlines (AAPA) showed international passenger demand remained depressed compared to pre-pandemic levels caused by travel restrictions due to the Omicron variant.

The region’s airlines carried a combined 2.7 million international passengers in January, representing 8.1% of the 35.2 million recorded during the same month in 2019. Measured in revenue passenger kilometres (RPK), international passenger demand averaged only 8.9% of 2019 levels, while available seat capacity was 17.9% of 2019 volumes. The international passenger load factor averaged 41.3%, the second consecutive month where load factors surpassed the 40% mark.

Meanwhile, the opening month of 2022 saw further growth in international air cargo markets, underpinned by increased shipments ahead of the Lunar New Year festive period. In addition, global manufacturing activity, while moderating slightly due to Omicron related disruptions, remained largely supportive.

Overall, in January, international air cargo demand as measured in freight tonne-kilometres (FTK) recorded a 5.1% year-on-year increase, on top of the substantial 20.2% annual increase achieved for the full year 2021. The international freight load factor fell slightly, by 2.2 percentage points to a still elevated 69.4%, after accounting for an 8.5% year-on-year expansion in offered freight capacity.

Commenting on the results, AAPA director general Subhas Menon said: “Travel restrictions along with uncertainties resulting from the rise in Omicron infections dampened the anticipated recovery in international travel at the start of the new year.”

“Nevertheless, in the light of increased vaccination rates and the relatively reduced risk of severe illness from the transmission of the Omicron variant, an increasing number of Asian governments have since adapted to living with Covid-19, including reversing or reducing international travel restrictions. As we move into 2022, recovery in international air travel should gain momentum.

“Airlines still face challenging operating conditions. The current escalating conflict in Ukraine may have a wider operational and economic impact on Asian airlines, whilst elevated fuel prices threaten to suppress earnings in an industry already struggling to survive.” 

THAI prepares for evacuation flights

BANGKOK, 1 March 2022: Following the Russian invasion of Ukraine, Thai Airways International Public Company (THAI), is providing support for the government’s mission to evacuate Thai citizens from Ukraine. 

THAI, in a statement Monday, said it was closely monitoring the situation and coordinating with the Ministry of Foreign Affairs to provide evacuation flights to bring citizens home from Ukraine. 

Meanwhile, the airline has re-routed its European operations to avoid passing through Ukraine airspace, which will add at least one hour to the flight time. 

THAI flies to seven destinations in Europe

Bangkok – London: six weekly flights.
Bangkok – Copenhagen: three weekly flights.
Bangkok – Frankfurt: daily flights.
Bangkok – Paris: twice-weekly flights.
Bangkok – Zurich: three weekly flights.
Bangkok – Stockholm: three weekly flights.
Bangkok – Brussels: twice-weekly flights.

Finnair suspends Asian flights

SINGAPORE, 1 March 2022: Finnair confirmed Monday it would continue flying to Singapore, Delhi in India and Bangkok and Phuket in Thailand, but other Asian services are suspended until 6 March.

Finnair in a Twitter statement on Monday said it was joining many other European airlines to suspend flights through Russian airspace for one week. The suspension ends on 6 March.

Flights that span Russian airspace to Seoul, Osaka, Tokyo and Shanghai in Asia, along with flights from Helsinki to Moscow and St Petersburg, are grounded.

Flights from Helsinki to Bangkok, Phuket, Singapore and Delhi and from Stockholm Arlanda to Bangkok and Phuket remain operational, but the flight time increases by one hour. 

Meanwhile, the airline reported to the Helsinki stock exchange that the Russian airspace closure would notably impact air traffic between Europe and Asia, which plays a vital role in Finnair’s network.

In response, the company withdrew its financial guidance related to Q1 2022 and the operational environment in the half-year 2022 provided in the airline’s results released for Q4 2021.

“The crisis in Ukraine touches all Europeans, and we understand the EU’s decision to close its airspace. We are implementing our contingency plan as the situation has a considerable impact on Finnair. Bypassing the Russian airspace lengthens flight times to Asia considerably and, thus, the operation of most of our passenger and cargo flights to Asia is not economically sustainable or competitive”,  said Finnair CEO, Topi Manner.

Finnair is currently preparing new traffic and cost savings plans in case the situation prolongs and will provide further information during the coming weeks.

Contactless check-in wins passenger support

SEPANG, 28 February 2022: AirAsia has migrated 95% of its passengers to contactless self-check-in via the AirAsia Super App and its website, an initiative made mandatory at the height of the Covid-19 pandemic last year.

Check-in for flights via the AirAsia Super App is done with just a few steps. Guests can add baggage, inflight meals, travel insurance and choose their preferred seat. They can perform self-check-in as early as 14 days before the departure date.

On completion, they will receive an e-Boarding Pass within the app that can be used to board their flight. A QR code will also be produced for them to flash against the scanner at any contactless kiosk at the airport to have their baggage tags printed before proceeding to the self baggage drop machines.

Guests who have been checking in via the website are also encouraged to migrate to the super app so they can enjoy greater convenience, including inflight services and inflight wifi connection onboard our flights.

At the same time, AirAsia will be limiting the counter check-in service facility at all airports in Malaysia from 1 April 2022.

With the gradual removal of the counter check-in service, no counter check-in fee will be applicable from 1 April 2022 as only eligible passengers in the following categories will be accepted for counter check-in service.

• Senior citizens aged 70 and above.
• Bookings made under Malaysian Armed Forces and Government warrants.
• Charter flight passengers.
• Passengers who have self checked-in but need to reprint boarding passes.
• Those with reduced mobility who hold a valid Persons with Disability (OKU) card.
• Group bookings of 10 guests and more.
• Young adults travelling alone (aged 12-16).
• Passengers affected by schedule changes and flight cancellations.
• Travellers who need seat upgrades and/or add-on purchases at the check-in counter.
• Passengers affected by system outage of the super app, website or kiosk.
• Those who were not assigned a seat during self-check-in.
• Corporate Full Flex and Premium Flex guests.

WTTC monitors Europe’s job prospects

SINGAPORE, 28 February 2022: New research from the World Travel & Tourism Council (WTTC) shows employment in tourism across Europe will recover with the region’s travel and tourism sector approaching pre-pandemic levels this year.

According to the research, the sector’s contribution to the region’s economy could reach nearly EUR1.7 trillion, only 12% below pre-pandemic levels. In contrast, employment could reach more than 38 million jobs, just 0.4% behind 2019 figures.

CREDIT: WTTC

To reach close to pre-pandemic levels this year, WTTC says governments across the continent must continue focussing on the vaccine and booster rollout – allowing fully vaccinated travellers to move freely without the need for testing.

The global tourism body also urges governments to ditch the patchwork of restrictions and enable international travel using digital solutions, such as the EU Digital COVID Certificate, that allow travellers to prove their status in a fast, simple, and secure way.

Taking a closer look at France’s travel and tourism sector, WTTC forecasts the country could gain more than 60,000 jobs this year compared to 2019, reaching 2.8 million and surpassing pre-pandemic levels by 2.3%.

In 2019, before the pandemic struck, France’s Travel & Tourism sector contributed almost EUR211 billion to its economy (8.5% of the country’s economy).

However, in 2020, the pandemic had a major impact on the sector, and Travel & Tourism’s contribution to France’s economy was almost halved by a staggering 48.8%, to nearly EUR108 billion (4.7% of the total economy).

Latest research from the global tourism body shows that if France, with more than three-quarters of its population already fully vaccinated, continues to ease restrictions throughout the year, the sector’s contribution to the economy could reach EUR182 billion in 2022, just 13.5% behind pre-pandemic levels.

In terms of employment, the outlook could be even more positive. After the loss of thousands of jobs in 2020, when Travel & Tourism businesses in France suffered serious losses due to severe travel restrictions and complete border closures, the sector could recover the jobs lost during 2020 to reach nearly 2.8 million employed in the sector this year – 2.3% above 2019 levels.

WTTC President & CEO Julia Simpson said: “It’s fantastic to see such a strong recovery for a country that has prioritised its travel and tourism sector. Our latest research shows just how crucial the recovery of France’s travel and tourism sector is to reboot the national economy.

“Millions of livelihoods depend on a booming travel and tourism sector, and thanks to the support of the French government, the sector could soon achieve a full economic recovery and bring back all the jobs lost during the pandemic.”

Malaysia mulls more travel lanes

KUALA LUMPUR, 28 February 2022: Malaysia and Thailand took the first steps towards fully reopening borders to tourism last week when they agreed to implement air, land and sea vaccination travel lanes to reboot tourism.

Malaysia’s Prime Minister Datuk Seri Ismail Sabri Yaakob said the related ministries and agencies of the two countries would hold discussions to reopen the border soon via Vaccinated Travel Lanes (VTL) and Thailand’s Test & Go scheme.

“For a start, we can implement the Air VTL between Kuala Lumpur and Bangkok for travellers who are fully vaccinated. We will also consider adding other destinations in future.”

The VTL scheme will also extend to land borders via Bukit Kayu Hitam-Sadao and all international border checkpoints in the north of the peninsula and southern Thailand and the sea VTL between Langkawi and Satun.

Later in the week, the PM, during a visit to Kuching, Sarawak, noted 5,686 foreign tourists had made use of the Langkawi International Travel Bubble (LITB) to travel to Malaysia since it was introduced last November.

According to STAR online news, the PM said the bubble had generated over MYR28 million in revenue for the Langkawi economy.

Vaccinated Travel Lanes are up and running, linking Malaysia, Singapore and Indonesia. Brunei is in the pipeline, and discussions are on the way to establishing a Malaysia – Thailand VTL. The Brunei VTL will boost Sarawak tourism, especially to Miri, Limbang and Lawas all close to Brunei.

(Source: Bernama, Star)

SQ posts first quarterly profits

SINGAPORE, 28 February 2022: Singapore Airlines Group posted a quarterly profit for the first time since the onset of the pandemic recording a Q3 net profit of SGD85 million.

It came amid a significant step-up in air travel to and through Singapore in the October- December 2021 period, as well as continued robust demand and strong yields in the cargo market.

Singapore’s launch of Vaccinated Travel Lane (VTL) arrangements and its subsequent expansion, as well as the group’s response that resulted in it being the first to open sales on almost all available routes, helped unlock pent-up demand during the year-end travel season.

The group carried 1.1 million passengers during Q3 (October to December 2021). It was more than five times the number from a year before and doubled that of the second quarter of FY2021/22. Passenger capacity (measured in available seat-kilometres) grew 183.8% year-on-year as the group ramped up flights in response to the VTLs. By the end of the quarter, group passenger capacity reached 45% of pre-Covid-19 levels.

Improvements in passenger and cargo revenue resulted in the Group revenue rising SGD1,249 million (+117.1%) year-on-year to SGD2,316 million. Passenger revenue increased by SGD650 million (+355.2%) to SGD833 million, on the back of a 556.8% growth in traffic (revenue passenger kilometres) that outpaced capacity expansion, resulting in the passenger load factor rising 18.9 percentage points to 33.2%. Cargo revenue rose by SGD607 million (+81.6%) to SGD1,351 million, surpassing the SGD1 billion mark for the first time and setting yet another new quarterly record. Robust demand during the traditional cargo peak period was buoyed by retail inventory restocking and strong e-commerce traffic. Cargo yields rose significantly (+26.9%) amid an ongoing industry capacity crunch.

The expansion of operations resulted in group expenditure growing SGD842 million (+60.2%) year-on-year to SGD2,240 million. This increase consisted of a SGD359 million increase (+131.0%) in net fuel costs, a SGD331 million increase (+26.0%) in non-fuel expenditure, and SGD152 million from the year-on-year impact of the fuel hedging ineffectiveness recorded last year and fair value changes on fuel derivatives. Net fuel cost rose to SGD633 million, mainly on higher fuel prices (+SGD330 million) and an increase in volume uplifted (+SGD173 million), which was partially offset by a swing from a fuel hedging loss to a gain (-SGD144 million). The increase in non-fuel expenditure by 26.0% was well within the 183.8% increase in passenger capacity and the 49.2% increase in cargo capacity.

As a result, the group recorded an operating profit of SGD76 million for the three months ended December 2021, versus a SGD331 million loss from a year before (+SGD407 million).

Travelport and Qatar extend partnership

SINGAPORE, 28 February 2022: Travelport, a technology company that powers travel bookings, and Qatar Airways announced last week a comprehensive new long-term distribution agreement.

The expanded agreement will include, for the first time, NDC content and advanced travel merchandising solutions – delivered via the next-generation Travelport+ platform.

In addition to extending a longstanding distribution agreement that delivers Qatar Airways content to Travelport-connected travel agencies globally, the agreement will also see Travelport distributing Qatar Airways’ NDC content.

The contract now also includes the use of Travelport’s Rich Content and Branding solution. The technology provides travel agents with graphically rich images and descriptions of fares and ancillary services.

Visit Maldives teams up with Seera Group

MALE, The Maldives, 28 February 2022: Maldives Marketing and Public Relations Corporation (MMPRC/Visit Maldives) has initiated a marketing campaign with Seera Group’s flagship consumer travel brand Almosafer – a leading travel service provider from the Middle East.

Seera Group offers travel services in the Middle East and North Africa and is recognised as a leading travel service provider from Saudi Arabia.

Under the MMPAC campaign, Seera will disseminate content and stories on social media platforms like Twitter, Instagram, and Snapchat to promote the Maldives through to 11 March.

Discover Adventure Alaska with Norwegian Cruise Line

HONG KONG, 28 February 2022: Norwegian Cruise Line invites agents and their clients to explore “Adventure Alaska” virtually with a two-part special “EMBARK with NCL” episode, available to view on-demand at www.ncl.com/embark.

In the episode, viewers will follow two members of NCL’s shoreside team, Andrea and Jayne, as they travel to the destination for the very first time to learn first-hand the experiences guests can expect when cruising Alaska with NCL.

Their journey takes them from the Inside Passage, where five of NCL’s ships will offer a selection of five-to-16-day itineraries during the summer of 2022, to the interior of Alaska to understand NCL’s Cruise Tour experience, which combines ocean voyages with shoreside adventures.

“Alaska is a bucket-list destination for so many travellers,” said Harry Sommer, president and chief executive officer of Norwegian Cruise Line. “It provides endless opportunities for adventure, wildlife encounters and awe-inspiring moments. While it is important for us to deliver these incredible experiences to our guests, we also support and enrich these communities that rely on our presence each summer for their well-being. It’s a partnership that we value tremendously and have demonstrated through sustainable developments and programs across the region.”

The episode includes visits to Skagway, Anchorage and Denali, Alaska, as well as the port cities where the brand’s parent company, Norwegian Cruise Line Holdings, Ltd. (NCLH), has made significant investments to the local communities, including Juneau, Icy Strait Point and Ketchikan, Alaska.

As the ladies are guided through downtown Juneau and immersed in the local culture, art and flavours, a team of NCLH executives visit the area to discuss their plans to transform the last waterfront parcel to benefit the local community.

While in Icy Strait Point, Andrea and Jayne, tour the authentic Alaska destination, which boasts 23,040 acres of private beach and temperate rain forest, as well as endless wildlife viewing opportunities. They explore the new Wilderness Landing, which was built in partnership between NCLH and the Huna Totem Corporation, the village corporation owned by approximately 1,400 Alaska Native shareholders with aboriginal ties to Hoonah and the Glacier Bay area. The new guest experience includes a debuting pier and a Transporter Gondola system built to support a vehicle-free zone. While touring the island, they encounter a family of coastal brown bears from the most accessible viewing platform in Southeast Alaska; and no trip to Icy Strait Point would be complete without visiting the mile-long ZipRider, the world’s largest zip line.

In Ketchikan, Alaska, they tour the Mill at Ward Cove, a new sustainable development project converting an Environmental Protection Agency designated superfund cleanup site to a sustainable, environmentally friendly and entertaining destination for the community and visitors. The collaborative project between NCLH and the Ward Cove Dock Group, LLC was recently recognized by the Alaska Department of Environmental Conservation for its joint sustainability efforts. The new site opens up more areas of exploration for guests, including easier access to the Tongass National Forest, the nation’s largest national forest.

No Alaska voyage would be complete without a glacier experience, so Andrea and Jayne adventure to new heights and soar up to Mendenhall Glacier by helicopter for a once-in-a-lifetime trek on the glacier. The trip continues from trains to planes with a ride aboard the glass-dome Wilderness Express Railway, offering panoramic views as the ladies journey to Alaska’s interior to visit the six million-acre-Denali National Park and Preserve. Rising up to an elevation of 20,310 feet above sea level, Andrea and Jayne fly up to the summit of Mount Denali, the highest mountain peak in North America.

 Viewers can follow the complete exploration of the destination on 9 December 2021 when “Adventure Alaska” premieres on-demand at www.ncl.com/embark.

Norwegian Cruise Line offers the best way to experience Alaska with a variety of five-to-16-day port-rich itineraries to explore the pristine beauty and wilderness of Alaska. Guests can choose from smaller vessels such as Norwegian Jewel, Sun and the newly reimagined Norwegian Spirit for a more intimate onboard experience, or can embark aboard the brand’s newest ships, including Norwegian Encore and Bliss, which were designed to bring the outside in, with expansive observation lounges and outdoor promenades. All itineraries include opportunities to witness the area’s impressive glaciers, from Hubbard Glacier to Endicott Arm and Dawes Glacier, or Glacier Bay National Park.

To learn more about the Company’s Alaska itineraries and the latest deals, visit www.ncl.com.

For more information or to book a cruise with Norwegian Cruise Line, please contact a travel professional; call NCL Hong Kong on +852 2165 6000 and Southeast Asia on +65 3165 1680; or visit www.ncl.com.