Emirates Airlines Launch Flight Service to Malaysia With A380 superjumbo

Emirates Airline said on Tuesday it was to add Kuala Lumpur, the capital of Malaysia, to its list of destinations served by its A380 superjumbo.

The giant plane will start services to Kuala Lumpur on December 1, the Dubai-based carrier said in a statement.

Emirates’ partnership with Malaysia began in October 1996 when the airline launched its services to Kuala Lumpur via Dhaka.

By 2006, the airline connected Dubai and Kuala Lumpur non-stop and today operates 21 non-stop flights a week between these two important cities.

The Emirates A380 arrival will be the first scheduled A380 service to Malaysia by any airline, the statement added.

Richard Jewsbury, Emirates’ senior vice president, Commercial Operations Far East & Australasia, said: “Emirates has always been committed to Malaysia and the launch of the A380 on the route follows strong and increasing demand, not just from business travellers, but leisure travellers as well, boosting Malaysian tourism.”

Trade between Malaysia and the UAE has expanded more than three-fold over the last decade from $1.16bn in 2000 to $4.59bn last year.

The airline’s fleet of 15 A380s operate on services from Dubai to London Heathrow (double-daily), Manchester, Paris Charles de Gaulle, Toronto, Seoul, Bangkok, Beijing, Jeddah, New York, Hong Kong, Sydney, Auckland and most recently Shanghai.

The A380 announcement comes as Emirates Airline remains frustrated in its efforts to launch the superjumbo to India.

Emirates celebrated the opening of the new terminal at the New Delhi airport last year by flying in a A380 but he plane has not returned since.

India’s government has not acted on requests to change regulations that bar overseas carriers, including Emirates and Deutsche Lufthansa, from flying aircraft bigger than the Boeing 747 into the country. That rules out the A380.

The two airlines are eager to tap India’s growing travel market with the A380, the world’s biggest passenger aircraft.

Cathay Pacific Airways and American Airlines Expand Codeshare Relationship

American Airlines and oneworld-alliance partner Cathay Pacific Airways have expanded their codeshare relationship.

The expanded codeshare relationship includes Cathay Pacific’s new daily service between Chicago O’Hare International Airport and Hong Kong International Airport, as well as the carrier’s existing daily service between Hong Kong and Ho Chi Minh City. American Airlines says the new Ho Chi Minh City codeshare gives it a stronger presence in Southeast Asia.

With the addition of these flights, which will feature American’s ‘AA’ flight prefix from September 1 (the day that Cathay Pacific Airways begins its Chicago-Hong Kong service), the codeshare agreement between American and Cathay Pacific Airways includes 23 markets in North America and eight markets throughout Asia.

“Our partnership with Cathay Pacific gives American’s customers expanded access to destinations in China and the rest of Asia,” says Virasb Vahidi, American’s chief commercial officer. “With this codeshare expansion, our customers now have more options for travel between North America and Asia.”

American Airlines and Cathay Pacific Airways have been codesharing since 2003 on several transpacific, U.S. domestic and intra-Asia flights.

Recently, Cathay Pacific expanded the agreement by adding its code on domestic services between Chicago O’Hare International Airport and 11 U.S. markets served by American or American Eagle. This expansion was made possible because of Cathay Pacific’s new service to Chicago, and the increased connectivity it offers to customers travelling on the networks of both carriers.

Delta Air Lines and US Airways Announce New Agreement to Transfer Flying Rights in LaGuardia Airport and Reagan National Airport

Delta Air Lines and US Airways today announced a new agreement to transfer takeoff and landing rights at New York’s LaGuardia and Washington D.C.’s Reagan National airports. The agreement, filed today with the Federal Aviation Administration (FAA), revises a 2009 transaction agreed between Delta and US Airways and approved by the DOT, but under terms not acceptable to the carriers, and never completed. The new agreement enables Delta and US Airways to expand service and increase competition at two of the nation’s key cities, and provides the opportunity for additional access to LaGuardia and Reagan National for new entrants and airlines with a limited presence at the airports.

Under the agreement, Delta would acquire 132 slot pairs at LaGuardia from US Airways and US Airways would acquire from Delta 42 slot pairs at Reagan National and the rights to operate additional daily service to Sao Paulo, Brazil in 2015, and Delta would pay US Airways $66.5 million in cash. In addition, the transaction could result in the divestiture of up to 16 slot pairs at LaGuardia and eight slot pairs at Reagan National to airlines with limited or no service at those airports. The completion of the transaction is subject to certain closing conditions, including government and regulatory approvals. A slot pair is the authority to operate one takeoff and one landing.

“With this agreement, Delta will enhance competition in New York, which is already one of the most competitive aviation markets in the world, by expanding the passenger capacity at LaGuardia by as many as 4 million seats annually without increasing congestion,” said Richard Anderson, Delta’s Chief Executive Officer. “Our expanded presence at LaGuardia will double our available destinations, offering customers more frequent and convenient service at New York’s preferred airport for business travel.”

US Airways’ Chairman and Chief Executive Officer Doug Parker said, “This agreement further strengthens our commitment to increase service and create more options for our customers wishing to travel to and from Washington, D.C. As a result of this transaction, many communities, including several smaller ones, will be able to enjoy additional nonstop service to our nation’s capital.”

The proposed transaction will provide significant direct benefits to consumers flying to and from New York and Washington, as well as consumers traveling to other destinations along the East Coast as the two airlines enhance their networks. These benefits are generated by improved connectivity, enhanced service and increased efficiency at both airports.

In addition, the competitive landscape in both cities has changed significantly since the transaction was first proposed in 2009. New entrants and smaller carriers, including AirTran Airways, JetBlue Airways and Southwest Airlines, have gained considerable access to slots at both LaGuardia and Reagan National and expanded service at these and other airports in the New York and Washington regions. Also, mergers between United Airlines and Continental Airlines and Southwest and AirTran have dramatically sharpened competition on the East Coast generally and particularly in the New York and Washington regions. Nonetheless, to address concerns previously raised by the Department of Transportation, the agreement provides for the divestiture of up to 16 slot pairs at LaGuardia and eight at Reagan National if required by the regulatory authorities.

The proposed transaction has generated significant support from elected officials and community leaders in New York and Washington. In addition, the City and State of New York, and both U.S. Senators from New York have supported the proposal, as have members of Congress representing New York, elected leaders in small communities and airports across the nation.

The airlines will dismiss their appeal of the DOT’s order regarding the original 2009 transaction that is currently pending in the U.S. Court of Appeals in Washington. Dismissing the appeal clears the way for DOT to consider the revised application.

New York

Delta’s expanded operation at LaGuardia will allow more and improved connecting service in New York, and ensure economically viable service to small communities, while creating an expanded network that will be particularly valuable for New York business customers. The airline will approximately double the number of nonstop destinations it serves from LaGuardia, including top business destinations and many cities not currently served nonstop by Delta or US Airways.

Delta will replace turboprop aircraft currently operated by US Airways with larger jets, adding as many as 4 million additional roundtrip seats available at LaGuardia without increasing congestion.

As part of the agreement, Delta will take control of US Airways’ Terminal C to create an expanded main terminal for customers. Delta will operate a total of 18 gates in Terminal C, and add one additional gate at Delta’s Terminal D, for a total of 29 gates in the two terminals. A 600-foot connector will be built to connect the two terminals. Delta also will convert the existing US Airways lounge in Terminal C to a Sky Club, while continuing to operate its current Sky Club in Terminal D.

Delta will continue to operate its popular hourly Delta Shuttle from its six gates at the Marine Air Terminal. In addition, Delta will spend up to $117 million to expand, renovate and consolidate terminals C and D over the next two years. Overall, the transaction will directly and indirectly generate an estimated 6,000 new jobs in New York.

Since making a strategic decision to build New York into a hub earlier this decade, Delta has made major investments across the region, boosting its economic impact to more than $13 billion annually. The airline is currently constructing a $1.2 billion project that will enhance and expand Terminal 4 at John F. Kennedy International Airport, creating a state-of-the-art facility for New York’s fastest growing global airline.

US Airways’ popular hourly Shuttle service between LaGuardia, Reagan National and Boston that is operated on dual-class mainline jets will remain unchanged as a result of the transaction. Also, US Airways will continue to offer its customers high-frequency schedules from LaGuardia to its Charlotte, N.C. and Philadelphia hubs and Pittsburgh with more than 60 daily weekday flights. All US Airways flights from LaGuardia will continue to arrive and depart from nine gates and parking positions in Terminal C and US Airways will build a new, state-of-the-art 5,000-square foot US Airways Club.

Washington, D.C.

At Reagan National, US Airways’ expanded operation will connect more small, medium and large communities with the nation’s capital and create additional flight options throughout the airline’s route network. US Airways expects to further increase its use of dual class mainline aircraft and soon to be dual class larger regional jets at Reagan National. The move will benefit customers by increasing the number of available seats between Washington and favorite destinations without increasing congestion.

US Airways plans to add at least 15 new destinations from Washington, to its network as a result of the transaction and competition will be further enhanced by US Airways adding service to popular destinations that are currently served by other carriers. As a result, business and leisure travelers as well as military and government employees will have more access to the nation’s capital and its downtown airport.

Following full implementation of the new schedule, US Airways will operate approximately 230 peak-day departures at Reagan National, a 20 percent increase over current service levels. The airline anticipates an increase of approximately 20 to 25 percent in passenger enplanements at Reagan National as a result of the new flights and schedule improvements. However, there will be no increase in congestion at the airport due to US Airways’ planned increase in scale and Delta’s reduction in slots.

The expansion is consistent with US Airways’ previously announced strategic plan to focus on growing its key, most profitable airports at its Washington focus city, its Phoenix, Philadelphia and Charlotte hubs and its US Airways Shuttle service. Once the transition is complete, more than 99 percent of US Airways capacity will be to or from its key airports.

Delta will continue to operate a robust schedule at Reagan National, with nonstop service between the airport and its seven domestic hubs and select cities. It also will continue to operate its Delta Shuttle between Reagan National and New York.

International Service

US Airways also will acquire from Delta in 2015 the rights to operate additional daily service at one of world’s most important business destinations – Sao Paulo, Brazil. As US Airways continues its strategic expansion into South America, the additional rights would allow it to operate two daily flights to Sao Paulo and continue its existing daily service to Rio de Janeiro, Brazil.

Since the 2009 transaction, Japan and the U.S. have made an Open Skies agreement that would enable US Airways’ service to Tokyo Narita International Airport. As a result, the transfer of slots at Narita from Delta to US Airways that was included in the 2009 transaction is not part of the new transaction.

European Transport Commission Wants “all-inclusive” Airline Tickets

The European Commissioner for Transport, Siim Kallas, wants once in for all that all low cost airlines be required to show all-inclusive prices instead of tender prices which exclude additional fees and taxes.

The warning from the European Commission is unofficially aimed at the Irish airline, Ryanair, which advertises all of its flight with attractive prices. These prices though do not include administrative fees, £2 fee added in April to off-set the ash-cloud cancellations of 2010, other taxes and fees depending on the destination, the cost of paying by credit card and a mandatory £6 fee for checking-in online.

Nothing is ever as it appears with Ryanair. A one-way flight from London-Stockholm is advertised for £12 on their homepage but by the time you reach check-out, even if you opt out of all the extras like travel insurance, priority boarding, etc. the total is more than £20, almost double.

Siim Kallas is advocating for full price transparency so that consumers don’t feel cheated. Although this mainly concerns Ryanair, all airlines will have to follow suit. Apart from price transparency, airlines could also be banned from charging passengers extra to check-in online, carry luggage and even pay by credit card.

Until then, know that when you compare flight prices on liligo.com, the prices shown include all applicable taxes and fees for low cost airlines so there aren’t any surprises when you reach check-out. What you see is what you pay.

Singapore Airlines Launch New Budget Airlines for Low-Cost Carrier

Singapore Airlines (SIA) said Wednesday it will launch within one year a new budget airline using wide-body aircraft to tap into growing consumer demand for low-cost travel over longer distances.

SIA already runs a short-haul mid-price airline called SilkAir and owns 32.9 percent of budget carrier Tiger Airways but said it decided to establish the new subsidiary after “an extensive review and analysis” of the market.

It did not give a name for the future airline, saying more details will be announced “in due course” including its branding, services and routes.

“Operations are expected to begin within one year. The airline will be wholly owned by Singapore Airlines, but will be operated independently and managed separately from SIA,” the company said in a press statement.

SIA said the new carrier will “enable the airline to serve a largely untapped new market and cater to the growing demand among consumers for low-fare travel.”

The move will put the new carrier in competition with AirAsia X, the long-haul affiliate of Malaysian budget carrier AirAsia and British tycoon Richard Branson’s Virgin Group.

Unlike most other budget airlines using single-aisle planes for short hops, the new carrier will operate wide-body, double-aisle aircraft to ply medium- and long-haul routes.

“We are seeing a new market segment being created and this will provide another growth opportunity for the SIA Group,” SIA chief executive Goh Choon Phong said.

“As we have observed on short-haul routes within Asia, low-fare airlines help stimulate demand for travel, and we expect this will also prove true for longer flights.”

Shukor Yusof, an aviation analyst with Standard and Poor’s Equities Research, said SIA was making a foray into a largely untapped market, which is dominated in the region by AirAsia X.

AirAsiaX flies to 14 destinations –London, Taipei, Tehran, Paris, Seoul, Tokyo, China (Tianjin, Hangzhou, Chengdu), Australia (Gold Coast, Melbourne, Perth) and India (Mumbai, Delhi).

“If you look around, there’s only AirAsia X in this region that’s doing low-cost long-haul or medium- to long-haul flights. So essentially there’s an opportunity to make money,” Shukor told AFP.

“If you look at the recent financial year you can see that they (SIA) obviously need another avenue to grow their business.”

SIA said on May 12 that full-year net profit rebounded strongly from the global recession as travel demand recovered.

It earned Sg$1.09 billion ($873 million) in the financial year ended March 31, up fivefold from Sg$216 million a year ago while revenues rose 14 percent to Sg$14.5 billion.

SIA cautioned that the near-term outlook was expected to be difficult due to surging oil prices, concerns over the US economy, the impact from Japan’s quake-tsunami disasters and worries over Europe’s sovereign debt crisis.

Shukor expects the new SIA subsidiary to position itself higher than Tiger Airways.

SIA is “putting the expertise and the money behind this new entity and I have every reason to believe that it’s going to be an exceptional airline,” he added.

Shukor noted that AirAsia X was “doing quite well” flying to Europe, Northeast Asia and Australia and this may have triggered SIA to decide about launching a competitor.

SIA’s announcement also came after a report in the Australian Financial Review that Australian airline Qantas was planning to establish a new premium carrier based in Singapore.

Qantas would not confirm the report, dismissing it as speculation, but has said its international business had not been performing to expectations, with market share in this area falling in recent years.

SIA shares were closed unchanged at Sg$14.20 on Wednesday before the announcement.

Qatar Airways Cargo Expansion Flight Service to Kuwait

Qatar Airways Cargo said on Tuesday it has expanded its dedicated freighter routes with new services to Kuwait.

The new route to the capital Kuwait City complements the existing freighter services in the Gulf to Riyadh, Dubai and Bahrain, the airline said in a statement.

A few weeks ago, Qatar Airways also launched dedicated cargo services to Bengaluru, Kozhikode and Hanoi strengthening its reach in India and Vietnam.

The airline is pushing ahead with expanding its cargo unit, as it plans to convert 15 Airbus A330 passenger jets into freighters and acquire a 33 percent stake in Cargolux Airlines International SA, Europe’s biggest freight-only carrier.

The cargo upgrade in the Gulf follows Qatar Airways’ announcement of a major frequency increase of its regional passenger operations in Saudi Arabia, which will see routes to Riyadh and Jeddah go from daily to double daily services and Dammam securing an additional daily flight, all effective June 1.

The Doha-based airline will also launch its newest destination in the kingdom with four-flights-a-week to Medina on July 14.

Qatar Airways CEO Akbar Al Baker said that the new cargo upgrade presented an opportunity to grow business in the carrier’s home region.

“Adding Kuwait to our cargo network adds further momentum to our surge in trading in our neighbouring Gulf countries,” he said, adding: “Kuwait imports a lot of manufacturing goods and based on our prime geographic position, we can offer fast services from across South Asia, Africa, Europe, North and South America and Asia-Pacific.”

Last year, Qatar Airways launched its first North American cargo route with dedicated freighter operations to Chicago.

Cargo operations for the airline will move to New Doha International Airport when the $14.5bn facility becomes operational.

With Kuwait City joining the Qatar Airways Cargo network, the number of freighter destinations served increases to 30 cities.

Turkish Airlines Expand International Flight Service Istanbul to Hong Kong

Turkish Airlines announced it is expanding its seating options today with the launch of its comfort class cabin service, combining the convenience and comfort of business class with the affordable pricing of economy class. Comfort class will appeal to economy class passengers looking for not just more legroom, but better onboard catering and in-flight entertainment options as well. Turkish Airlines also announced Hong Kong – Istanbul flights have been increased from five to six times a week starting in April.

Turkish Airlines has launched comfort class seating in its new fleet of Boeing 777s. Increasing to 12 aircraft by September 2011, each aircraft is equipped with 63 comfort class seats that provide a 116cm seat pitch and 49cm seat width, making them the most spacious seats in the industry. The seats also feature a retractable leg rest for added comfort, and passengers can enjoy Turkish Airlines’ award winning in-flight catering services with customized menus. A wide array of entertainment options is available, including 10.6” in-arm touchscreens that offer a wide selection of films, TV shows, music and games, and total digital connectivity to the USB and iPod devices. Amenity kits given to business class passengers are now offered in comfort class as well.

Currently available on every Saturday from Hong Kong to Istanbul, and by June 22, 2011, comfort class will be available three times a week, every Wednesday, Friday and Saturday. Comfort class will be offered on all Hong Kong – Istanbul flights by September 13, 2011, all on brand new Boeing 777 aircraft. Comfort class is also operating on the routes including Beijing, Sao Paulo, Toronto, Shanghai, Guangzhou, Los Angeles, and Tokyo while New York will be added in the second half of 2011.

Turkish Airlines has also added a sixth weekly flight between Hong Kong and Istanbul, raising passenger capacity to meet anticipated growth in passenger traffic between the two cities.

Salih Keçe, general manager, Turkish Airlines Hong Kong, Philippines and Taiwan said, “With the new comfort class and sixth weekly flight between Hong Kong and Istanbul, Turkish Airlines has not only added passenger capacity, we have also raised the bar on offering superior passenger comfort at an affordable price. As one of the fastest growing airlines in the industry serving over 180 global destinations, Turkish Airlines will continue providing the best and most convenient flying experiences to more passengers around the world.”

Turkish Airlines was recently named winner of Air Transport World’s Market Leadership Award 2011 for their competitive strengths in achieving both sustained rapid growth and strong profitability in 2010. In early 2010, it won the Skytrax World Airline Awards for best quality in-flight catering service in Economy class and best airline in Southern Europe, bringing passengers from Hong Kong an entirely new kind of travel experience.

Increased Competition Airlines May Airlines Ticket Prices Cheaper in Summer Season

Global flight information company, found that increased flight capacity by 5 percent in 2011, compared with 2010. 317 million seats available to travelers in April 2011 worldwide, and Europe showed 2 percent increase in capacity during the same period.

Travelmatch expected this to produce increased competition between airlines over the summer, resulting in lower prices for UK holidaymakers looking for cheap flights to Spain and beyond. Travelmatch’s Alex Francis explained that Europe’s capacity increases were due to airlines focusing their attention on the most popular resorts, as well as simply being part of a global increase in capacity.

“At travelmatch.co.uk we believe this is fantastic news for British tourists as they should see prices fall as supply increases – this will also spur competition between different airlines, which will only serve to lower the overall cost of holidays further,” said Mr Francis.

“Over the past decade we have seen prices drop considerably; we expect this trend to continue as increased capacity brings down the cost of air travel,” he added. “This is very exciting news for British travellers interested in booking stays in Marmaris and other fantastic spots around the Mediterranean.”

Republic Airways Provide Six Additional Aircraft for Delta Routes

Republic Airways Holdings Inc. has amended its agreement to supply aircraft to serve routes for Delta Air Lines.

Under the new agreement, Indianapolis-based will provide six additional E-170 aircraft to serve Delta routes.

It follows a previously announced amendment in January 2011 in which Republic agreed to add eight E-170 aircraft to the service it provides under the Delta Connection flag.

Indianapolis-based Republic is a holding company with a fleet of 283 aircraft that also owns Chautauqua Airlines and Republic Airlines. The parent company operates a maintenance hub at Louisville International Airport.

The six additional aircraft are expected to be placed into service between July and October and will have a term of six years from the in-service date for Delta.

“These fleet adjustments between our contract and branded operations allow us to maximize our aircraft portfolio in the most cost-effective way,” Bryan Bedford, chairman, president and CEO of Republic Airways, said in the release. “In light of current oil prices, we will continue to focus on developing Frontier’s most successful and profitable routes while managing capacity at responsible levels.”

Republic also will remove three of its ERJ 135 aircraft from its fleet at the end of their lease term in September.

Hainan Airlines Reported Flight Traffic and First Quarter Net Income

Hainan Airlines reported net income of CNY273.3 million ($41.9 million) in the first quarter, up 8.2% over a CNY252.5 million profit in the year-ago period, owing to the rapid growth of Chinese domestic market demand and revenue generated by fleet expansion, according to a Shanghai Stock Exchange filing.

Operating revenue climbed 23.1% to CNY5.76 billion while operating expenses jumped 21.5% to CNY4.31 billion. The carrier didn’t disclose first-quarter passenger figures. Load factor improved 1.5 points to 82.9%. Cargo traffic volume decreased 3.8% to 62,000 tonnes.

Chinese carriers are expected to continue reporting first quarter profits given that they posted collective first-quarter net income of CNY5.73 billion.

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