Thai Airways International expects more long-haul passengers travelling between Asia, North America and Europe now that Continental Airlines has joined the Star Alliance, the world's largest airline grouping.
Pridi Boonsue, executive vice president of THAI, a founding member of the alliance, said his airline hoped to gain more passengers travelling between the three continents, because New York-based Continental served the East Coast of the United States.
From New York City, Continental connects to 21 European destinations, while THAI operates in 10, so passengers travelling between Asia and North America can switch between the two airlines in major cities in Europe.
THAI halted its direct Bangkok-New York route last year, due to high oil prices. However, it expects the new member to help THAI recapture long-haul passengers.
"Travellers from Thailand to the US will need two to four hours for transit in Europe, or they can even take a holiday there," said Pridi. "Passengers had no choice with the transits. Now they have more options."
THAI presently operates between Bangkok and Los Angeles, California via Tokyo's Narita Airport.
Continental is the 25th member of the Star Alliance. Its membership follows last year's announcement of a strategic partnership between it and United Airlines.
Star Alliance customers can now choose from among 19,500 daily flights serving 1,071 airports in 171 countries.
In addition to the network benefits, Continental flights can now be used to create itineraries for both the Star Alliance's "Round the World" programme and the North American Airpass. Moreover, Continental will sell all 13 Star Alliance fare products and participate in the Star Alliance Conventions Plus programme.
Continental's participation occurs at a time when the airline industry is witnessing an upswing in air demand.
Yet Chew Choon Seng, CEO of Singapore Airlines, the world's fourth-largest carrier by market value, recently told a Star Alliance press conference it was too soon to say whether a rebound in air travel last month marked the beginnings of a long-term revival in demand.
Singapore Airlines last month filled 80.9 per cent of its available seats, its highest tally this year.
"The bottom has been reached. Demand has stabilised and even started to grow from September," Chew said.
However, he added: There is not enough evidence yet to conclude that we are back on a firm trail to recovery."
Cathay Pacific Airways CEO Tony Tyler also said he was "cautious" about airlines' prospects, because the global recession continued to dampen demand.
Wednesday, October 28, 2009
Nok Air ticket sales take off at SF Cinema
SF Cinema City yesterday announced the launch of a new ticketing service for low-cost carrier Nok Air, marking the first time cinema box offices have sold airline tickets in this country.
The company is negotiating with another three service vendors over providing ticketing and bill payment services, which are considered a value-added feature of its core cinema business.
Suvit Thongrompo, managing director of SF Cinema City, yesterday said the ticketing service offered for Nok Air would cater to the lifestyle of urban people, who demand one-stop services and convenience. It will provide win-win benefits to both Nok Air and SF Cinema City, both of which are able to provide better services to customers.
"For SF, we would like to provide a service for tickets that are beyond just movie tickets. We are quite ready in terms of ticketing system and IT, as well as a strong cinema exhibition network," he said.
Suvit added that under the strategic partnership, consumers would be able to buy Nok Air tickets at all 11 SF Cinema's box offices in Bangkok and another two in Phuket.
"We have conducted a soft launch for Nok Air ticketing service since the beginning of this month, getting a very good response from customers. About 300 Nok Air tickets, worth Bt500,000 in total, have been sold so far through our box offices," said Suvit.
Patee Sarasin, CEO of Nok Air, said a cinema represented a good location because it is where family members spend time together. At theatres, they can discuss holiday plans and make final decisions on where they want to take a weekend trip together - and can now also buy air tickets immediately.
Nok Air provides domestic routes to seven provinces: Chiang Mai, Udon Thani, Nakhon Si Thammarat, Hat Yai, Phuket, Trang and Surat Thani.
Suvit said SF Cinema City provided its own theatre ticketing services via four major channels - box office, online service, mobile telephone and call centre.
"We expect to sell 1.2 million movie tickets this year, which is up 20 per cent over last year," he said.
"It is a good sign that many of our strategic locations like SF World Cinema at CentralWorld, which has 15 theatre screens, have performed very well with 20-per-cent year-on-year growth in ticket sales so far this year."
He added that the company had opened SF Cinema complexes in six new locations this year. The latest complexes will be opened on October 28 in Bang Saen, and at CentralPlaza Khon Kaen on December 3.
"We will also open cinemas in two or three new locations in Bangkok and upcountry next year. The investment will be between Bt20 million and Bt30 million per theatre," said Suvit.
He added that the company would also renovate theatres at MBK shopping centre, Central Lat Phrao and The Emporium.
Suvit said SF Cinema City had achieved year-on-year growth of between 12 and 13 per cent in ticket sales in the first nine months of the year.
The company, however, expects to achieve better growth of more than 30 per cent year on year in the fourth quarter, driven by a strong line-up of expected Thai and Hollywood blockbusters, such as "2012", "The Twilight Saga: New Moon", "Avatar", "Yam Yasothorn 2" and "Ong-Bak 3".
The overall cinema industry is expected to grow about 10 per cent this year in terms of ticket sales, Suvit said.
The company is negotiating with another three service vendors over providing ticketing and bill payment services, which are considered a value-added feature of its core cinema business.
Suvit Thongrompo, managing director of SF Cinema City, yesterday said the ticketing service offered for Nok Air would cater to the lifestyle of urban people, who demand one-stop services and convenience. It will provide win-win benefits to both Nok Air and SF Cinema City, both of which are able to provide better services to customers.
"For SF, we would like to provide a service for tickets that are beyond just movie tickets. We are quite ready in terms of ticketing system and IT, as well as a strong cinema exhibition network," he said.
Suvit added that under the strategic partnership, consumers would be able to buy Nok Air tickets at all 11 SF Cinema's box offices in Bangkok and another two in Phuket.
"We have conducted a soft launch for Nok Air ticketing service since the beginning of this month, getting a very good response from customers. About 300 Nok Air tickets, worth Bt500,000 in total, have been sold so far through our box offices," said Suvit.
Patee Sarasin, CEO of Nok Air, said a cinema represented a good location because it is where family members spend time together. At theatres, they can discuss holiday plans and make final decisions on where they want to take a weekend trip together - and can now also buy air tickets immediately.
Nok Air provides domestic routes to seven provinces: Chiang Mai, Udon Thani, Nakhon Si Thammarat, Hat Yai, Phuket, Trang and Surat Thani.
Suvit said SF Cinema City provided its own theatre ticketing services via four major channels - box office, online service, mobile telephone and call centre.
"We expect to sell 1.2 million movie tickets this year, which is up 20 per cent over last year," he said.
"It is a good sign that many of our strategic locations like SF World Cinema at CentralWorld, which has 15 theatre screens, have performed very well with 20-per-cent year-on-year growth in ticket sales so far this year."
He added that the company had opened SF Cinema complexes in six new locations this year. The latest complexes will be opened on October 28 in Bang Saen, and at CentralPlaza Khon Kaen on December 3.
"We will also open cinemas in two or three new locations in Bangkok and upcountry next year. The investment will be between Bt20 million and Bt30 million per theatre," said Suvit.
He added that the company would also renovate theatres at MBK shopping centre, Central Lat Phrao and The Emporium.
Suvit said SF Cinema City had achieved year-on-year growth of between 12 and 13 per cent in ticket sales in the first nine months of the year.
The company, however, expects to achieve better growth of more than 30 per cent year on year in the fourth quarter, driven by a strong line-up of expected Thai and Hollywood blockbusters, such as "2012", "The Twilight Saga: New Moon", "Avatar", "Yam Yasothorn 2" and "Ong-Bak 3".
The overall cinema industry is expected to grow about 10 per cent this year in terms of ticket sales, Suvit said.
JAL shares nosedive as fears grow
Japan Airlines Corp shares slid more than 11% to a record low yesterday as investors suggested bankruptcy may be an option for Asia's biggest airline by revenue, even as the government again pledged to support the troubled carrier.
"There's increasing concern about the future of the company and whether it's heading for a GM-style bankruptcy or not," said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management.
The airline, plagued with high costs in a severe industry downturn, has asked creditors for 600 billion yen ($6.6 billion)in financial aid, including 300 billion yen in debt waivers and debt-for-equity swaps, as part of a restructuring plan,according to two sources familiar with the matter.
JAL shares fell to 100 yen, their lowest since they were re-listed in 2002. By the close, the stock was quoted at 101 yen,down more than 11%. The shares have lost a quarter of their value this week.
Last month, JAL proposed a plan under which it pledged to cut 6,800 jobs, eliminate 50 routes and lower its operating costs by 30%, but it was forced back to the drawing board after the government said the steps were not enough.
The airline is now working with a government-appointed task force on a new plan to put to the transport ministry within two weeks. Transport Minister Seiji Maehara yesterday pledged his support for the airline while that process is underway.
"From I can see in the pre-draft plan I received the other day from JAL and its task force, I am confident that work on the plan is progressing smoothly," said Maehara, adding there was no change in the government's stance to support the airline.
But the lack of a clear growth plan for JAL is fuelling market concern that a rescue package may be throwing good money after bad, some investors said,leaving creditors such as Mitsubishi UFJ Financial Group (MUFG) and Mizuho Financial Group out in the cold.
MUFG, JAL's No.2 creditor behind the state-owned Development Bank of Japan, is owed about 50 billion yen ($551 million).
Kyodo news agency reported JAL was reconsidering a plan to sell shares in its group firms, suggesting that restructuring efforts needed to turn the company around might be slow to come.
"Even if they do get the funds, where's the prospect of growth? I don't see it,"said a portfolio manager at a Japanese asset management firm, who asked not to be named as he was not authorised to comment on individual stocks."In some ways, bankruptcy might be the better option - it would allow the firm to restart from a clean slate."
JAL has put on hold separate talks with Delta Air Lines and AMR Corp's American Airlines for a capital infusion and business ties, aiming to focus first on its own revival plan, Kyodo reported last week.
Ratings agency Moody's dealt a fresh blow to the troubled carrier, downgrading its long-term debt rating, to B1 from Ba3 and put the JAL unit on review for a further possible downgrade.
"There's increasing concern about the future of the company and whether it's heading for a GM-style bankruptcy or not," said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management.
The airline, plagued with high costs in a severe industry downturn, has asked creditors for 600 billion yen ($6.6 billion)in financial aid, including 300 billion yen in debt waivers and debt-for-equity swaps, as part of a restructuring plan,according to two sources familiar with the matter.
JAL shares fell to 100 yen, their lowest since they were re-listed in 2002. By the close, the stock was quoted at 101 yen,down more than 11%. The shares have lost a quarter of their value this week.
Last month, JAL proposed a plan under which it pledged to cut 6,800 jobs, eliminate 50 routes and lower its operating costs by 30%, but it was forced back to the drawing board after the government said the steps were not enough.
The airline is now working with a government-appointed task force on a new plan to put to the transport ministry within two weeks. Transport Minister Seiji Maehara yesterday pledged his support for the airline while that process is underway.
"From I can see in the pre-draft plan I received the other day from JAL and its task force, I am confident that work on the plan is progressing smoothly," said Maehara, adding there was no change in the government's stance to support the airline.
But the lack of a clear growth plan for JAL is fuelling market concern that a rescue package may be throwing good money after bad, some investors said,leaving creditors such as Mitsubishi UFJ Financial Group (MUFG) and Mizuho Financial Group out in the cold.
MUFG, JAL's No.2 creditor behind the state-owned Development Bank of Japan, is owed about 50 billion yen ($551 million).
Kyodo news agency reported JAL was reconsidering a plan to sell shares in its group firms, suggesting that restructuring efforts needed to turn the company around might be slow to come.
"Even if they do get the funds, where's the prospect of growth? I don't see it,"said a portfolio manager at a Japanese asset management firm, who asked not to be named as he was not authorised to comment on individual stocks."In some ways, bankruptcy might be the better option - it would allow the firm to restart from a clean slate."
JAL has put on hold separate talks with Delta Air Lines and AMR Corp's American Airlines for a capital infusion and business ties, aiming to focus first on its own revival plan, Kyodo reported last week.
Ratings agency Moody's dealt a fresh blow to the troubled carrier, downgrading its long-term debt rating, to B1 from Ba3 and put the JAL unit on review for a further possible downgrade.
Tuesday, October 20, 2009
A BIG CHALLENGE FOR THAI TO FLY HIGH AGAIN
AS the new president of Thai airways International, Dr Piyasvasti Amranand will face a daunting task ahead in his attempt to revive the national airline. He has admitted that it is not going to be an easy job. "I am under no illusion about the challenges facing the aviation industry today. And that includes the challenges facing THAI," he announced.
The airline faced a liquidity crisis that at one point threatened its viability, but since a turnaround plan was put in place, THAI appears to be showing positive results. Yet much, much more still needs to be done. First and foremost, THAI must be delared a non-interference zone from politicians. Piyasvasti has, rightly, made a plea that he should be allowed to do his job without any political inference. In short, the people involved should not aks for any further benefits from THAI. Rather they should consider how they can contribute to the airline.
Piyasvasti needs to continue to cut costs drastically while at the same time raising fresh capital to service the debt and cope with expansion. Compared with other regional airlines such as Cathay Pacific or Singapore Airline, THAI still carries the burden of high operational costs. It needs to improve its performance and efficiency. Every division must produce returns. Piyasavasti's efforts will eventually be compared to those of THAI's regional peers. There is no domestic competitor.
For this reason, Piyasvashi has revealed that the airline will raise fresh capital, which will help bring down its debt equity ratio from 3:1 to 2:1. THAI is burdened with debts of more than Bt160 billion. Next year alone, it will need to service at least Bt29 billion. This debt is huge, involving payments mostly for the acquisition of aircraft. THAI operates with a long-term aircraft acquisition plan. yet it has to service the short-term debt for these acquisitions. Somehow this imbalance in the financial structure has to be addressed.
On Monday, Piyasavasti met with senior management and staff, outlining his policy. He plans to spend the first two years tackling financial problems. The next two years car then be devoted to improving the operational efficiency of the airline.
THAI is fortunate to have a leader of Piyasvasti's calibre at this critical time. Piyasavasti has an impeccable track record. He is a finance man. And at this point, THAI needs a finance man to clean up its book.
A graduate of Oxford University and with a PhD from the London School of Economics, he most recently served as chairman of the advisory panel to Kasikorn Bank's CEO. Piyasvasti also headed Thailand's National Energy Policy Office that transformed the country's energy sector in the 1990s, and was a former minister of energy.
Piyasvasti said he wants to bring all his experience and knowledge to bear on the current issues facing THAI, in an effort to continually improve operational performance and the company's financial position.
We endorse Piyasvasti's leadership at this critical juncture. The market, as well as the management and staff of THAI should give him a chance to prove himself. All Piyasvast asks is that he be allowed to do his job without political interference.
The airline faced a liquidity crisis that at one point threatened its viability, but since a turnaround plan was put in place, THAI appears to be showing positive results. Yet much, much more still needs to be done. First and foremost, THAI must be delared a non-interference zone from politicians. Piyasvasti has, rightly, made a plea that he should be allowed to do his job without any political inference. In short, the people involved should not aks for any further benefits from THAI. Rather they should consider how they can contribute to the airline.
Piyasvasti needs to continue to cut costs drastically while at the same time raising fresh capital to service the debt and cope with expansion. Compared with other regional airlines such as Cathay Pacific or Singapore Airline, THAI still carries the burden of high operational costs. It needs to improve its performance and efficiency. Every division must produce returns. Piyasavasti's efforts will eventually be compared to those of THAI's regional peers. There is no domestic competitor.
For this reason, Piyasvashi has revealed that the airline will raise fresh capital, which will help bring down its debt equity ratio from 3:1 to 2:1. THAI is burdened with debts of more than Bt160 billion. Next year alone, it will need to service at least Bt29 billion. This debt is huge, involving payments mostly for the acquisition of aircraft. THAI operates with a long-term aircraft acquisition plan. yet it has to service the short-term debt for these acquisitions. Somehow this imbalance in the financial structure has to be addressed.
On Monday, Piyasavasti met with senior management and staff, outlining his policy. He plans to spend the first two years tackling financial problems. The next two years car then be devoted to improving the operational efficiency of the airline.
THAI is fortunate to have a leader of Piyasvasti's calibre at this critical time. Piyasavasti has an impeccable track record. He is a finance man. And at this point, THAI needs a finance man to clean up its book.
A graduate of Oxford University and with a PhD from the London School of Economics, he most recently served as chairman of the advisory panel to Kasikorn Bank's CEO. Piyasvasti also headed Thailand's National Energy Policy Office that transformed the country's energy sector in the 1990s, and was a former minister of energy.
Piyasvasti said he wants to bring all his experience and knowledge to bear on the current issues facing THAI, in an effort to continually improve operational performance and the company's financial position.
We endorse Piyasvasti's leadership at this critical juncture. The market, as well as the management and staff of THAI should give him a chance to prove himself. All Piyasvast asks is that he be allowed to do his job without political interference.
Wednesday, October 14, 2009
Airlines and hotels look for balance
The travel industry was hard hit after the first reports of swine flu emerged fromMexico in the spring. Trips were cancelled,destination weddings were moved elsewhere and flights were grounded as traveller demand plummeted.So the industry, already reeling from the effects of the recession,has reason to be cautious as the autumn flu season gets under way.Still, because the H1N1 pandemic strain, or swine flu, has generally not been more virulent than ordinary seasonal flu, airports, hotels and airlines are trying to find a balance between showing that they are taking substantive steps and not acting so aggressively that they set off a panic among travellers.
Their actions can best be described as preventive. So instead of cutting back on high-traffic services like buffet dining in areas affected by the virus, as they did in the spring, hotel representatives say they are focusing on day-to-day measures.
Most major hotel brands, among them Marriott, Hilton, Starwood and Intercontinental, are ramping up the cleaning of items most frequently touched by guests, like phones, hand rails, elevator buttons and fitness equipment. And they have added signs in the kitchens,administrative offices and other "back of the house" parts of hotels,reminding employees to wash their hands frequently and to cough or sneeze into a tissue rather than their hands.
Some hotels are placing tissues and dispensers of hand sanitiser in public areas. A spokesman for Marriott International, John Wolf, said the company's hotels were stockpiling items like rubber gloves and making hand sanitiser available upon request to conference groups meeting at properties it managed.
Airports around the United States are also adopting alcohol-based hand sanitisers. Airports from Anchorage, Alaska, to Fort Lauderdale,Fla, are placing the dispensers in high-traffic areas, often near security checkpoints (where travellers must remove their shoes) and by entrances and exits. They are frequently accompanied by signs explaining proper hygiene practices.
In addition, the signs at security checkpoints that remind travellers about banned items and security protocols are being joined by ones that highlight flu symptoms and ask travellers to keep their coughs and sneezes to themselves.
Once on board a flight, though, cautious travellers will have to make sure they have packed their own supplies. While most of the legacy domestic carriers like US Airways have first-aid kits that include sanitising gel, they say they are not planning to add dispensers in lavatories or elsewhere in the aircraft.
Contrary to popular belief, the air on planes is not the petri dish of germs many travellers assume it to be, said Dr Nina Marano, an expert on travellers' health at the Centers for Disease Control and Prevention."I think people are sort of worried about cabin air," she said,"but the air filtration systems in aircraft are highly sophisticated."A representative of United Airlines called the carrier's air filters "hospital grade."
Still, the Association of Flight Attendants-CWA, the union representing about half of all flight attendants in the United States, is pushing for additional preventive measures. Chris Witkowski, its director of air safety, health and security, said the association was lobbying to have high-grade N95 respirator masks - one for every crew member - on every flight.
For its part, the Air Transport Association of America, which represents domestic airlines, says the CDC has suggested that airline personnel consider wearing N95 masks only when in "close contact" with flustricken passengers.
Ordinary surgical masks do not work well when it comes to protecting the healthy, the CDC said. Unlike N95 respirator masks, which offer protection against airborne particles, surgical masks are effective only against droplets, the agency said.
An industry consultant, Robert Mann Jr, said in an interview that airlines might be worried about consumer response to some preventive measures."I don't think airlines want to go in the direction of latex gloves and masks," he said,"because it's somewhat alarming to people."
A spokeswoman for the World Health Organization, Aphaluck Bhatiasevi, says the group encourages governments not to funnel too many resources into screening all travellers. Still, Marano of the CDC said, travellers should expect to encounter a wide range of health protocols when entering foreign countries.
Steven Lott, a spokesman for the International Air Transport Association, which represents 230 airlines around the world, said the group spent weeks earlier this year distilling a hodgepodge of entry questionnaires into a single document that could be distributed to fliers.
Last month, the CDC reported that 936 Americans had died of flu symptoms or of flu-associated pneumonia since Aug 30, when it began a new method of counting of deaths, including some without lab-confirmed swine flu. The regular flu season starts in November.
For travellers, the overarching message is one of personal accountability."Frequent fliers tend to be pretty prepared," Mann said."I think the fact that people are somewhat sensitised to the issue will pay off in having people be more prepared."
Business travellers seem to be getting the message."I was actually quarantined during the SARS epidemic, so I'm being quite careful this time," said David Jansen, who works in the anticorruption division at PricewaterhouseCoopers, recalling a trip to Hong Kong in 2003, when the virus that causes severe acute respiratory syndrome was sweeping through parts of Asia.
As a consultant who is on the road roughly half the time, Jansen says he has already started taking precautions."It's frequent handwashing, and I take anti-bacterial wipes with me," he said."I definitely make sure I take my vitamins and fish oils and Airborne tablets."
Their actions can best be described as preventive. So instead of cutting back on high-traffic services like buffet dining in areas affected by the virus, as they did in the spring, hotel representatives say they are focusing on day-to-day measures.
Most major hotel brands, among them Marriott, Hilton, Starwood and Intercontinental, are ramping up the cleaning of items most frequently touched by guests, like phones, hand rails, elevator buttons and fitness equipment. And they have added signs in the kitchens,administrative offices and other "back of the house" parts of hotels,reminding employees to wash their hands frequently and to cough or sneeze into a tissue rather than their hands.
Some hotels are placing tissues and dispensers of hand sanitiser in public areas. A spokesman for Marriott International, John Wolf, said the company's hotels were stockpiling items like rubber gloves and making hand sanitiser available upon request to conference groups meeting at properties it managed.
Airports around the United States are also adopting alcohol-based hand sanitisers. Airports from Anchorage, Alaska, to Fort Lauderdale,Fla, are placing the dispensers in high-traffic areas, often near security checkpoints (where travellers must remove their shoes) and by entrances and exits. They are frequently accompanied by signs explaining proper hygiene practices.
In addition, the signs at security checkpoints that remind travellers about banned items and security protocols are being joined by ones that highlight flu symptoms and ask travellers to keep their coughs and sneezes to themselves.
Once on board a flight, though, cautious travellers will have to make sure they have packed their own supplies. While most of the legacy domestic carriers like US Airways have first-aid kits that include sanitising gel, they say they are not planning to add dispensers in lavatories or elsewhere in the aircraft.
Contrary to popular belief, the air on planes is not the petri dish of germs many travellers assume it to be, said Dr Nina Marano, an expert on travellers' health at the Centers for Disease Control and Prevention."I think people are sort of worried about cabin air," she said,"but the air filtration systems in aircraft are highly sophisticated."A representative of United Airlines called the carrier's air filters "hospital grade."
Still, the Association of Flight Attendants-CWA, the union representing about half of all flight attendants in the United States, is pushing for additional preventive measures. Chris Witkowski, its director of air safety, health and security, said the association was lobbying to have high-grade N95 respirator masks - one for every crew member - on every flight.
For its part, the Air Transport Association of America, which represents domestic airlines, says the CDC has suggested that airline personnel consider wearing N95 masks only when in "close contact" with flustricken passengers.
Ordinary surgical masks do not work well when it comes to protecting the healthy, the CDC said. Unlike N95 respirator masks, which offer protection against airborne particles, surgical masks are effective only against droplets, the agency said.
An industry consultant, Robert Mann Jr, said in an interview that airlines might be worried about consumer response to some preventive measures."I don't think airlines want to go in the direction of latex gloves and masks," he said,"because it's somewhat alarming to people."
A spokeswoman for the World Health Organization, Aphaluck Bhatiasevi, says the group encourages governments not to funnel too many resources into screening all travellers. Still, Marano of the CDC said, travellers should expect to encounter a wide range of health protocols when entering foreign countries.
Steven Lott, a spokesman for the International Air Transport Association, which represents 230 airlines around the world, said the group spent weeks earlier this year distilling a hodgepodge of entry questionnaires into a single document that could be distributed to fliers.
Last month, the CDC reported that 936 Americans had died of flu symptoms or of flu-associated pneumonia since Aug 30, when it began a new method of counting of deaths, including some without lab-confirmed swine flu. The regular flu season starts in November.
For travellers, the overarching message is one of personal accountability."Frequent fliers tend to be pretty prepared," Mann said."I think the fact that people are somewhat sensitised to the issue will pay off in having people be more prepared."
Business travellers seem to be getting the message."I was actually quarantined during the SARS epidemic, so I'm being quite careful this time," said David Jansen, who works in the anticorruption division at PricewaterhouseCoopers, recalling a trip to Hong Kong in 2003, when the virus that causes severe acute respiratory syndrome was sweeping through parts of Asia.
As a consultant who is on the road roughly half the time, Jansen says he has already started taking precautions."It's frequent handwashing, and I take anti-bacterial wipes with me," he said."I definitely make sure I take my vitamins and fish oils and Airborne tablets."
Tuesday, October 13, 2009
SGA rebrands as Nok Mini, leases larger aircraft
SGA Airlines, Thailand's first commuter carrier, will deploy two larger aircraft,expand its network and undergo a rebranding.
The Thai privately owned airline,which has been operating for eight years,is leasing two Swedish twin-engine Saab 340B turboprop planes from a Singaporebased firm, as it embarks on new domestic feeder services starting this December.
SGA Airlines will rebrand itself as Nok Mini to foster a closer association with Nok Airlines, the budget airline owned 39%by Thai Airways International (THAI).
Nok Mini will become a sub-brand of Nok Airlines whose management agreed to allow SGA Airlines to use the marque for free in order to expand the alliance's profile as well as to complement each other's network.
The two airlines have loosely collaborated on joint marketing programmes over the past few years.
"Our association with Nok Airlines in the past three years has been fruitful and we decided to take it to another level," said Jain Charnnarong, the president of Siam General Aviation Co, which operates SGA Airlines.
SGA Airlines has already been dubbed "Nok Lek", or Junior Nok, by the travelling public, he said.
There is no cross-shareholding between the two airlines as a result of the increased alliance, and there are no definite plans to boost joint-marketing programmes.
But SiamGeneral Aviation has already increased its registered capital to 200 million baht from 80 million to meet the regulatory requirement for utilising larger aircraft and becoming a regional airline.
SGA Airlines will base its Saab 340Bs at Chiang Mai International Airport, along with two of its three Cessna 208B Grand Caravan planes. The third Cessna is stationed at Bangkok's Suvarnabhumi Airport for charter.
The airline intends to initially use the Saab 340Bs to launch its Chiang MaiMae Hong Son and Chiang Mai-Udon Thani routes on Dec 5 this year.
It will offers four flights a day on the Chiang Mai-Mae Hong Son and one daily flight on Chiang Mai-Udon Thani.
The Thai privately owned airline,which has been operating for eight years,is leasing two Swedish twin-engine Saab 340B turboprop planes from a Singaporebased firm, as it embarks on new domestic feeder services starting this December.
SGA Airlines will rebrand itself as Nok Mini to foster a closer association with Nok Airlines, the budget airline owned 39%by Thai Airways International (THAI).
Nok Mini will become a sub-brand of Nok Airlines whose management agreed to allow SGA Airlines to use the marque for free in order to expand the alliance's profile as well as to complement each other's network.
The two airlines have loosely collaborated on joint marketing programmes over the past few years.
"Our association with Nok Airlines in the past three years has been fruitful and we decided to take it to another level," said Jain Charnnarong, the president of Siam General Aviation Co, which operates SGA Airlines.
SGA Airlines has already been dubbed "Nok Lek", or Junior Nok, by the travelling public, he said.
There is no cross-shareholding between the two airlines as a result of the increased alliance, and there are no definite plans to boost joint-marketing programmes.
But SiamGeneral Aviation has already increased its registered capital to 200 million baht from 80 million to meet the regulatory requirement for utilising larger aircraft and becoming a regional airline.
SGA Airlines will base its Saab 340Bs at Chiang Mai International Airport, along with two of its three Cessna 208B Grand Caravan planes. The third Cessna is stationed at Bangkok's Suvarnabhumi Airport for charter.
The airline intends to initially use the Saab 340Bs to launch its Chiang MaiMae Hong Son and Chiang Mai-Udon Thani routes on Dec 5 this year.
It will offers four flights a day on the Chiang Mai-Mae Hong Son and one daily flight on Chiang Mai-Udon Thani.
Sunday, October 11, 2009
Airlines agree to better fuel efficiency, emission goals
The world's airlines have agreed to new fuel efficiency and carbon emission targets which go much further than the levels required through regulation,an industry group said on Saturday.
The International Air Transport Association (IATA),which represents 230 airlines, said that carriers, airports and aerospace firms had pledged to improve fuel efficiency by 1.5% a year annually until 2020.
At a meeting in Montreal, they also set a goal of having carbon-neutral growth by 2020 and to record a 50% net reduction of carbon emissions in 2050 compared to 2005 levels.
"Airlines have set even more ambitious targets than governments for the longer-term," IATA DirectorGeneral Giovanni Bisignani said.
"No other industry has been able to achieve what we have done," he said, describing the cooperation in the sector."We are on the high ground and governments must now catch up."
IATA has said biofuels hold great potential to reduce the emissions from planes, and has supported moves to offset fossil fuels burned in air transport.
The International Air Transport Association (IATA),which represents 230 airlines, said that carriers, airports and aerospace firms had pledged to improve fuel efficiency by 1.5% a year annually until 2020.
At a meeting in Montreal, they also set a goal of having carbon-neutral growth by 2020 and to record a 50% net reduction of carbon emissions in 2050 compared to 2005 levels.
"Airlines have set even more ambitious targets than governments for the longer-term," IATA DirectorGeneral Giovanni Bisignani said.
"No other industry has been able to achieve what we have done," he said, describing the cooperation in the sector."We are on the high ground and governments must now catch up."
IATA has said biofuels hold great potential to reduce the emissions from planes, and has supported moves to offset fossil fuels burned in air transport.
Saturday, October 10, 2009
American "Thunderbirds" dazzle in the skies as traffic on the ground comes to a standstill
Nearly 100,000 people yesterday flocked to see an impressive aerial show by the US Air Force's Thunderbirds at Bangkok's Don Mueang Airport, causing severe traffic jams in the area.
After the opening ceremony presided by Royal Thai Air Force commander-in-chief, ACM Itthiporn Supawong, the famous until 3.15pm several flying and solo routines, including group-flying in a diamond formation.
It was the third time that the Thunderbirds show was held in Thailand - the first one took place in 1987 and the second in 1994.
Despite the hot afternoon, an estimated 100,000 people gathered to see the free show.
As a result, there were severe traffic jams on the nearby Vibhavadi, Phaholyothin and Ram-Indra roads while many also camped on the nearby Don Mueang Tollway from 10am, thus causing traffic congestion on the elevated road.
After the opening ceremony presided by Royal Thai Air Force commander-in-chief, ACM Itthiporn Supawong, the famous until 3.15pm several flying and solo routines, including group-flying in a diamond formation.
It was the third time that the Thunderbirds show was held in Thailand - the first one took place in 1987 and the second in 1994.
Despite the hot afternoon, an estimated 100,000 people gathered to see the free show.
As a result, there were severe traffic jams on the nearby Vibhavadi, Phaholyothin and Ram-Indra roads while many also camped on the nearby Don Mueang Tollway from 10am, thus causing traffic congestion on the elevated road.
Friday, October 9, 2009
Hard task for THAI boss
The board of Thai Airways International is giving its incoming president a formidable challenge -to regain the airline's position as one of the world's top carriers through a bold transformation.
The tough assignment came after the technical hurdles that had delayed Piyasvasti Amranand's assumption of the post had been cleared, paving the way for him to take office on Oct 19.
The mission follows the board's decision to embrace an apparently more aggressive strategy of refocusing the airline to target premium and businessclass passengers - a departure from its current industry positioning seen as
appealing mostly to tourists.
Dr Piyasvasti, a former energy minister, has been tasked by the board with lifting THAI into the top five global airlines - at least in terms of service quality and safety - over the next five years, THAI chairman Ampon Kittiampon said yesterday.
THAI has plunged in the latest global passenger survey of airline quality standards, finishing last in the world's top 10 airlines in 2009, after taking fourth place last year in the Skytrax poll.
The action plan under the five-year strategy, which the new president is to put together, will be based on customer demand.
This approach will determine the network, inflight entertainment systems,the types of new aircraft, and the way THAI retrofits its jets.
Other issues such as aircraft carbon emissions and fuel efficiency will also be covered in the new strategy as THAI will strive to reduce its fleet's age from 12 years to five or six years, similar to those of its key competitors, said the chairman.
THAI has 88 aircraft, of which several,including Boeing 747-400s, have been in service for two decades.
Corporate restructuring will be high on the national carrier's agenda for the new president.
Two offshoots, a property fund company and a firm dealing with aircraft leasing, will be spun off to make THAI run more effectively.
As part of its revamped strategy, THAI will support a greater role for Nok Airlines, the budget carrier in which THAI has a 39% stake, in domestic routes where the flag carrier operates at a loss.
Dr Ampon said it was too early to say if Nok would be allowed to take over some international routes, especially regional ones, now operated by THAI.
The formidable task comes in ex-change for the THAI board's acceptance of most of Dr Piyasvasti's conditions,including a paycheque of 900,000 baht a month, for taking on his mission without facing too much bureacracy.
For instance, the new president is empowered to endorse procurement and business contracts worth 500 million baht, 10 times more than the current 50-million-baht limit.
He can also change or appoint 40 vice-presidents, and have them report directly to him.
Dr Ampon, also secretary-general of the National Economic and Social Development Board, rejected suggestions that the board had bent too much to give Dr Piyasvasti excessive power.
"In good management practice, we need to trust the management," the THAI chairman said.
THAI shares closed yesterday on the SET at 24.10 baht, up one baht, in trade worth 424.8 million baht.
The tough assignment came after the technical hurdles that had delayed Piyasvasti Amranand's assumption of the post had been cleared, paving the way for him to take office on Oct 19.
The mission follows the board's decision to embrace an apparently more aggressive strategy of refocusing the airline to target premium and businessclass passengers - a departure from its current industry positioning seen as
appealing mostly to tourists.
Dr Piyasvasti, a former energy minister, has been tasked by the board with lifting THAI into the top five global airlines - at least in terms of service quality and safety - over the next five years, THAI chairman Ampon Kittiampon said yesterday.
THAI has plunged in the latest global passenger survey of airline quality standards, finishing last in the world's top 10 airlines in 2009, after taking fourth place last year in the Skytrax poll.
The action plan under the five-year strategy, which the new president is to put together, will be based on customer demand.
This approach will determine the network, inflight entertainment systems,the types of new aircraft, and the way THAI retrofits its jets.
Other issues such as aircraft carbon emissions and fuel efficiency will also be covered in the new strategy as THAI will strive to reduce its fleet's age from 12 years to five or six years, similar to those of its key competitors, said the chairman.
THAI has 88 aircraft, of which several,including Boeing 747-400s, have been in service for two decades.
Corporate restructuring will be high on the national carrier's agenda for the new president.
Two offshoots, a property fund company and a firm dealing with aircraft leasing, will be spun off to make THAI run more effectively.
As part of its revamped strategy, THAI will support a greater role for Nok Airlines, the budget carrier in which THAI has a 39% stake, in domestic routes where the flag carrier operates at a loss.
Dr Ampon said it was too early to say if Nok would be allowed to take over some international routes, especially regional ones, now operated by THAI.
The formidable task comes in ex-change for the THAI board's acceptance of most of Dr Piyasvasti's conditions,including a paycheque of 900,000 baht a month, for taking on his mission without facing too much bureacracy.
For instance, the new president is empowered to endorse procurement and business contracts worth 500 million baht, 10 times more than the current 50-million-baht limit.
He can also change or appoint 40 vice-presidents, and have them report directly to him.
Dr Ampon, also secretary-general of the National Economic and Social Development Board, rejected suggestions that the board had bent too much to give Dr Piyasvasti excessive power.
"In good management practice, we need to trust the management," the THAI chairman said.
THAI shares closed yesterday on the SET at 24.10 baht, up one baht, in trade worth 424.8 million baht.
Wednesday, October 7, 2009
AirAsia boss blasts AoT fees as excessive
The lack of policies to attract budget tourists and to promote no-frills carriers is hampering the growth of Thailand's tourism, says Tony Fernandes, chief executive of AirAsia Group, Asia's largest low-cost carrier (LCC).
Thai tourism has lost out to Asean neighbours Malaysia, Indonesia and the Philippines as a result, he added.
"Thailand's tourism is the best in Asean, without a doubt, but don't think you can always get the tourists without working hard," he told the Bangkok Post .Mr Fernandes said negative factors such as political infighting did not necessarily drive foreign tourists away.
Air Asia, he said, gave Thailand's tourism a shot in the arm after the blockade of Bangkok's two airports toward the end of last year by carrying many passengers to Thailand."People will fly if the price is right. People are not so scared of bombs," he added.
The Malaysian executive singled out what he termed an excessive passenger service charge (PSC), or airport tax, by Airports of Thailand (AoT) as a major hindrance to tourism.
"The 700-baht airport tax is just too high. That's almost half the airfare we charge in a lot of cases," he said."It's a shame that AoT is holding back the growth of Thai tourism."
AoT's charge is among the highest in Asia, he said. He advocated slashing it for budget carriers to 250 baht, the price in Malaysia, to reduce costs for travellers.
Malaysian airports increased overall
passenger traffic to 26 million a year from 16 million after introducing an LCC strategy including a terminal dedicated to budget carriers, and reduced PSCs.
He wants the Fernandes: High fees same measures in damage Thai tourism Thailand, especially because the fee is paid by passengers, not airlines.
"They (AoT) said their earnings are going to be affected a lot. I don't think they are looking at the long term, from the country's perspective or their own bottom line," he said."It is a simple volume game. Do you want 1 million tourists by charging them 700 baht each,or do you want 10 million with a 250-baht charge? Similarly, AirAsia could charge 8,000 baht for a flight to Bangkok and have two flights a day. But why when we've got eight flights a day? We lowered the fares."
AoT's argument that it reduced landing and parking fees for all airlines including LCCs contributes very little to the overall travel cost structure from the passengers'point of view, he said.
With a low-cost government strategy,its Thai sister airline, Thai AirAsia, should be able to boost annual passenger volume to 25 million in the next seven years from 4-5 million expected this year.
By then, Thai AirAsia should also have as many as 100 Airbus A320 jets in its fleet, up from 10 at the moment.
Thai tourism has lost out to Asean neighbours Malaysia, Indonesia and the Philippines as a result, he added.
"Thailand's tourism is the best in Asean, without a doubt, but don't think you can always get the tourists without working hard," he told the Bangkok Post .Mr Fernandes said negative factors such as political infighting did not necessarily drive foreign tourists away.
Air Asia, he said, gave Thailand's tourism a shot in the arm after the blockade of Bangkok's two airports toward the end of last year by carrying many passengers to Thailand."People will fly if the price is right. People are not so scared of bombs," he added.
The Malaysian executive singled out what he termed an excessive passenger service charge (PSC), or airport tax, by Airports of Thailand (AoT) as a major hindrance to tourism.
"The 700-baht airport tax is just too high. That's almost half the airfare we charge in a lot of cases," he said."It's a shame that AoT is holding back the growth of Thai tourism."
AoT's charge is among the highest in Asia, he said. He advocated slashing it for budget carriers to 250 baht, the price in Malaysia, to reduce costs for travellers.
Malaysian airports increased overall
passenger traffic to 26 million a year from 16 million after introducing an LCC strategy including a terminal dedicated to budget carriers, and reduced PSCs.
He wants the Fernandes: High fees same measures in damage Thai tourism Thailand, especially because the fee is paid by passengers, not airlines.
"They (AoT) said their earnings are going to be affected a lot. I don't think they are looking at the long term, from the country's perspective or their own bottom line," he said."It is a simple volume game. Do you want 1 million tourists by charging them 700 baht each,or do you want 10 million with a 250-baht charge? Similarly, AirAsia could charge 8,000 baht for a flight to Bangkok and have two flights a day. But why when we've got eight flights a day? We lowered the fares."
AoT's argument that it reduced landing and parking fees for all airlines including LCCs contributes very little to the overall travel cost structure from the passengers'point of view, he said.
With a low-cost government strategy,its Thai sister airline, Thai AirAsia, should be able to boost annual passenger volume to 25 million in the next seven years from 4-5 million expected this year.
By then, Thai AirAsia should also have as many as 100 Airbus A320 jets in its fleet, up from 10 at the moment.
Monday, October 5, 2009
MITSUBISHI GETS ORDER FOR 100 JETS
An ambitious project to build Japan's first ever passenger jet received a huge boost, landing a 100-plane order worth up to US$4 billion (Bt133.7 billion) from a US regional airline.
The state-backed Mitsubishi Regional Jet (MRJ) is expected to take to the skies in 2014, carrying Japan's hopes of developing a fullfledged civil aviation industry with it.
Mitsubishi Heavy industries, the company developing the 70 to 90-seat airliner, announced that it had signed a letter of intent with US carrier Trans States for 50 firm orders and the same number of options.
Mitsubishi declined to say how much the latest deal was worth, but the catalogue price of each jet is $40 million.
It is the second order for MRJ, which aims to meet growing demand for fuel-efficient planes. The project officially got off the ground in 2008 after launch customer All Nippon Airways agreed to buy up to 25 of the jets, the first of which are scheduled to be delivered in early 2014.
But it quickly flew into turbulence as the global economic downturn unleashed a severe slump in the aviation industry that forced many carriers, including Japan Airlines, to slash jobs and routes to keep flying.
"This is a very proud moment for us," said Hideo Egawa, president of Mitsubishi's aircraft division.
"The world has high expectations for the MRJ. This is especially true in the US", where airlines operate jets of up to 90 seats on many routes, Egawa said.
The Mitsubishi jet project, which has financial backing from Toyota Motor, is competing with small aircraft produced by Canada's Bombardier and Brazil's Embraer, as well as jets designed by Russian and Chinese firms.
"Making a decision of this size in this economic situation was difficult," said Richard Leach, president of Trans States Holdings.
"But when these aircraft come into the market it's at a time when there's going to be a need in the US to replace aircraft. We want to be at the front of the line before there starts to be a feeding frenzy on wanting this technology."
The group, based in Missori, operates Trans States Airlines and GoJet Airlines, and operates feeder services for United Airlines and US Airways. It has been a customer adviser for Mitsubishi since the past five years.
The plane saves 20 to 30 per cent in fuel burn per hour compared with other jets in the same category, Mitsubishi officials said.
Fuel costs are "very important", said Trans States' Leach.
The state-backed Mitsubishi Regional Jet (MRJ) is expected to take to the skies in 2014, carrying Japan's hopes of developing a fullfledged civil aviation industry with it.
Mitsubishi Heavy industries, the company developing the 70 to 90-seat airliner, announced that it had signed a letter of intent with US carrier Trans States for 50 firm orders and the same number of options.
Mitsubishi declined to say how much the latest deal was worth, but the catalogue price of each jet is $40 million.
It is the second order for MRJ, which aims to meet growing demand for fuel-efficient planes. The project officially got off the ground in 2008 after launch customer All Nippon Airways agreed to buy up to 25 of the jets, the first of which are scheduled to be delivered in early 2014.
But it quickly flew into turbulence as the global economic downturn unleashed a severe slump in the aviation industry that forced many carriers, including Japan Airlines, to slash jobs and routes to keep flying.
"This is a very proud moment for us," said Hideo Egawa, president of Mitsubishi's aircraft division.
"The world has high expectations for the MRJ. This is especially true in the US", where airlines operate jets of up to 90 seats on many routes, Egawa said.
The Mitsubishi jet project, which has financial backing from Toyota Motor, is competing with small aircraft produced by Canada's Bombardier and Brazil's Embraer, as well as jets designed by Russian and Chinese firms.
"Making a decision of this size in this economic situation was difficult," said Richard Leach, president of Trans States Holdings.
"But when these aircraft come into the market it's at a time when there's going to be a need in the US to replace aircraft. We want to be at the front of the line before there starts to be a feeding frenzy on wanting this technology."
The group, based in Missori, operates Trans States Airlines and GoJet Airlines, and operates feeder services for United Airlines and US Airways. It has been a customer adviser for Mitsubishi since the past five years.
The plane saves 20 to 30 per cent in fuel burn per hour compared with other jets in the same category, Mitsubishi officials said.
Fuel costs are "very important", said Trans States' Leach.
Jetstar beefs up Sydney-Phuket leg
Jetstar Airways, the low-fare carrier that is part of Australia's Qantas, will add two more weekly flights between Sydney and Phuket starting in mid-December,raising its weekly frequency between the city pair to five.
However, the additional flights are short-term only, from Dec 15 to Jan 29,to cater to the expected surge in travel demand during the peak holiday period.
The new service will add an additional 1,200 seats weekly on the route, which will be operated by Jetstar's seventh A330-200, a wide-bodied jet with two classes:265 seats in economy and 38 seats in premium.
Earlier, Jetstar Asia, the airline's Asian offshoot based in Singapore, announced that it will commence twice daily services from Singapore to Phuket, also from Dec 15, offering over 6,200 seats to and from Phuket each week.
Jetstar chief executive Bruce Buchanan said Thailand's position as the second most popular Asian holiday destination for Australians had led the airline to provide incremental capacity in time for the popular holiday period.
Thailand was the second most popular Asian destination for Australian travellers after Indonesia for the year ending June 2009, with more than 378,000 visitors over the 12-month period.
Together with Jetstar's MelbourneBangkok services, the new Phuket services will bring its weekly connections between Australia and Thailand to eight.
Mr Buchanan said the decision to redirect the capacity of Jetstar group to Thailand shows the confidence and commitment we have in this market as a vital member of our ever-expanding Asian network.
Meanwhile, Jetstar will also strengthen its existing long haul services with additional weekly flights from Australia to Bali and Honolulu, primarily from its largest international hub in Sydney.
From Dec 15 until Jan 29, Jetstar will increase its Sydney-Bali services from four times a week to daily.
Its Melbourne-Bali frequency will grow to three times weekly, up from twice weekly service, while Sydney-Honolulu services will increase to five times weekly by adding an additional weekly flight.
However, the additional flights are short-term only, from Dec 15 to Jan 29,to cater to the expected surge in travel demand during the peak holiday period.
The new service will add an additional 1,200 seats weekly on the route, which will be operated by Jetstar's seventh A330-200, a wide-bodied jet with two classes:265 seats in economy and 38 seats in premium.
Earlier, Jetstar Asia, the airline's Asian offshoot based in Singapore, announced that it will commence twice daily services from Singapore to Phuket, also from Dec 15, offering over 6,200 seats to and from Phuket each week.
Jetstar chief executive Bruce Buchanan said Thailand's position as the second most popular Asian holiday destination for Australians had led the airline to provide incremental capacity in time for the popular holiday period.
Thailand was the second most popular Asian destination for Australian travellers after Indonesia for the year ending June 2009, with more than 378,000 visitors over the 12-month period.
Together with Jetstar's MelbourneBangkok services, the new Phuket services will bring its weekly connections between Australia and Thailand to eight.
Mr Buchanan said the decision to redirect the capacity of Jetstar group to Thailand shows the confidence and commitment we have in this market as a vital member of our ever-expanding Asian network.
Meanwhile, Jetstar will also strengthen its existing long haul services with additional weekly flights from Australia to Bali and Honolulu, primarily from its largest international hub in Sydney.
From Dec 15 until Jan 29, Jetstar will increase its Sydney-Bali services from four times a week to daily.
Its Melbourne-Bali frequency will grow to three times weekly, up from twice weekly service, while Sydney-Honolulu services will increase to five times weekly by adding an additional weekly flight.
Friday, October 2, 2009
JUMBO ACHIEVEMENT
While Dreamliner delays hog the headlines, the next generation of Boeing's iconic 747 is nearing completion on schedule. By Boonsong Kositchotethana in Everett, Washington
Unlike its smaller sibling, the delayed B787"Dreamliner"jetliner, Boeing's new and enlarged B747 jumbo jet has moved to an advanced stage of development.
All indications suggest the B747-8,the latest edition of the iconic aircraft that was first rolled out in 1968, will be airborne by the end of this year.
Assembly of the first three jumbos,all in the freighter version, has progressed well with one aircraft more than 90%complete and the others 80% and 65%complete.
Boeing plans to take the three planes to the skies in November and December for test flights that should revive the jet programme after its false starts and raise the aircraft's sales prospects, which have been slow.
Boeing now aims to have the first jumbo cargo plane, known as the B747-8F, in commercial service in the third quarter of next year. The delivery of the first passenger version of B747-8 is scheduled in the second half of 2011.
The B747-8 would "absolutely not"face delays like the highly anticipated long-haul 787, Elgin Anderson, regional director for product marketing at Boeing,said at a briefing.
"This is a derivative plane. We knew how to build this and we have already built it," he said."The system is very much the same but upgraded."
Delivery of Boeing's much-delayed 787 Dreamliner plane to its Japanese launch customer ANA has now been put off to late 2010, more than a year behind the original schedule. Boeing said the revised timetable reflected a previously announced need to reinforce an area within the side-of-body section of the aircraft, as well as a few weeks for cutting flight test and certification risk.
Boeing's largest ever aircraft has had a lukewarm response from airlines compared with the Airbus A380, a full-length double-deck aircraft now in service,which B747-8 has been pitching against.
Despite of the B747-8's new features,Boeing has so far received orders for only 105 from 11 buyers, while the A380 superjumbo has secured 200 orders from 16 customers, including Thai Airways International.
The bulk of orders for the new Boeing jumbo are for the B747-8F freighter version - which has 78 orders - while the passenger model has attracted only two buyers. Orders for the 747-8 freighter came from Cargolux, Nippon Cargo Airlines, AirBridgeCargo Airlines, Atlas Air, Cathay Pacific, Dubai Aerospace Enterprise, Emirates SkyCargo, Guggenheim and Korean Air.
Germany's Lufthansa is the only airliner to book the B747-8- with an order for 20 units - while Boeing Business Jet, a 50:50 partnership between Boeing Commercial Airplanes and General Electric, has booked seven.
While Dr Anderson is optimistic of more orders for the B747-8, he admits short-term prospects are poor, as airlines have cut capacity and stopped buying planes in the global aviation downturn.
"I think once this plane is flying the industry will see how capable and valuable the B747-8 is," he said."If we could get one or two major airlines interested,the rest would follow."
Boeing has been in talks with several airlines operating older versions of the B747 on replacing them with the newgeneration aircraft, he added.
In its latest projection, the company expects airlines to need 740 new very large capacity aircraft with 400 or more seats between now and 2028, with a total value of US$220 billion.
Boeing would not specify how many new jumbo jets it targets to sell in the next 19 years, but it said this market segment would be shared by the existing two flying giants - the A380 and B747-8.
Industry analysts believe Boeing could sell about 400 of the new jumbos within 15 years or so.
While the 747-8 is not an all-new aircraft, Boeing believes the new version is refreshed enough to attract some airlines tempted by the A380.
In addition, some carriers could delay purchasing the European-made megajet because only a score of airports can handle its size, whereas most international airports are equipped for the 747.
Boeing also sees fewer long-haul routes with dense traffic that would allow the A380 to operate economically.
Both the B747-8 and B747-8F are 5.6 metres longer than the current 747-400.At 76.3 metres, they will be the longest commercial jets when they enter operation. The A380 is 73 metres long.
The extra length provides 51 more seats and 26% more cargo space in the passenger version - compared with the B747-400 it is replacing - while the B747-8F has 16% more cargo volume than its predecessor.
The B747-8 seats 467 passengers in three-class configuration, compared with 525 in the A380, while the B747-8 freighter can carry up to 134 tonnes and 858 cubic metres in terms of volume.
The B747-8 has completely new wings with a raked tip design and new fuelefficient General Electric engines built around the same technology as the Dreamliner engines. It also has new composite materials, upgraded flight-deck avionics and a futuristic passenger cabin based on the 787 interior.
Boeing said the new jumbo is 16%more fuel efficient, producing 16% fewer carbon emissions, and is 30% quieter than its predecessor.
The passenger version can fly more than 14,815 kilometres non-stop while the freighter can cover 8,130 km.
More than 1,400 B747s have entered service. The A380, on the other hand,made its first commercial flight on Oct 25,2007 from Singapore to Sydney with Singapore Airlines. There are now three A380 operators including Emirates and Qantas. The current price tag of a B747-8 is $300 million versus $327 million for the rival A380.
Unlike its smaller sibling, the delayed B787"Dreamliner"jetliner, Boeing's new and enlarged B747 jumbo jet has moved to an advanced stage of development.
All indications suggest the B747-8,the latest edition of the iconic aircraft that was first rolled out in 1968, will be airborne by the end of this year.
Assembly of the first three jumbos,all in the freighter version, has progressed well with one aircraft more than 90%complete and the others 80% and 65%complete.
Boeing plans to take the three planes to the skies in November and December for test flights that should revive the jet programme after its false starts and raise the aircraft's sales prospects, which have been slow.
Boeing now aims to have the first jumbo cargo plane, known as the B747-8F, in commercial service in the third quarter of next year. The delivery of the first passenger version of B747-8 is scheduled in the second half of 2011.
The B747-8 would "absolutely not"face delays like the highly anticipated long-haul 787, Elgin Anderson, regional director for product marketing at Boeing,said at a briefing.
"This is a derivative plane. We knew how to build this and we have already built it," he said."The system is very much the same but upgraded."
Delivery of Boeing's much-delayed 787 Dreamliner plane to its Japanese launch customer ANA has now been put off to late 2010, more than a year behind the original schedule. Boeing said the revised timetable reflected a previously announced need to reinforce an area within the side-of-body section of the aircraft, as well as a few weeks for cutting flight test and certification risk.
Boeing's largest ever aircraft has had a lukewarm response from airlines compared with the Airbus A380, a full-length double-deck aircraft now in service,which B747-8 has been pitching against.
Despite of the B747-8's new features,Boeing has so far received orders for only 105 from 11 buyers, while the A380 superjumbo has secured 200 orders from 16 customers, including Thai Airways International.
The bulk of orders for the new Boeing jumbo are for the B747-8F freighter version - which has 78 orders - while the passenger model has attracted only two buyers. Orders for the 747-8 freighter came from Cargolux, Nippon Cargo Airlines, AirBridgeCargo Airlines, Atlas Air, Cathay Pacific, Dubai Aerospace Enterprise, Emirates SkyCargo, Guggenheim and Korean Air.
Germany's Lufthansa is the only airliner to book the B747-8- with an order for 20 units - while Boeing Business Jet, a 50:50 partnership between Boeing Commercial Airplanes and General Electric, has booked seven.
While Dr Anderson is optimistic of more orders for the B747-8, he admits short-term prospects are poor, as airlines have cut capacity and stopped buying planes in the global aviation downturn.
"I think once this plane is flying the industry will see how capable and valuable the B747-8 is," he said."If we could get one or two major airlines interested,the rest would follow."
Boeing has been in talks with several airlines operating older versions of the B747 on replacing them with the newgeneration aircraft, he added.
In its latest projection, the company expects airlines to need 740 new very large capacity aircraft with 400 or more seats between now and 2028, with a total value of US$220 billion.
Boeing would not specify how many new jumbo jets it targets to sell in the next 19 years, but it said this market segment would be shared by the existing two flying giants - the A380 and B747-8.
Industry analysts believe Boeing could sell about 400 of the new jumbos within 15 years or so.
While the 747-8 is not an all-new aircraft, Boeing believes the new version is refreshed enough to attract some airlines tempted by the A380.
In addition, some carriers could delay purchasing the European-made megajet because only a score of airports can handle its size, whereas most international airports are equipped for the 747.
Boeing also sees fewer long-haul routes with dense traffic that would allow the A380 to operate economically.
Both the B747-8 and B747-8F are 5.6 metres longer than the current 747-400.At 76.3 metres, they will be the longest commercial jets when they enter operation. The A380 is 73 metres long.
The extra length provides 51 more seats and 26% more cargo space in the passenger version - compared with the B747-400 it is replacing - while the B747-8F has 16% more cargo volume than its predecessor.
The B747-8 seats 467 passengers in three-class configuration, compared with 525 in the A380, while the B747-8 freighter can carry up to 134 tonnes and 858 cubic metres in terms of volume.
The B747-8 has completely new wings with a raked tip design and new fuelefficient General Electric engines built around the same technology as the Dreamliner engines. It also has new composite materials, upgraded flight-deck avionics and a futuristic passenger cabin based on the 787 interior.
Boeing said the new jumbo is 16%more fuel efficient, producing 16% fewer carbon emissions, and is 30% quieter than its predecessor.
The passenger version can fly more than 14,815 kilometres non-stop while the freighter can cover 8,130 km.
More than 1,400 B747s have entered service. The A380, on the other hand,made its first commercial flight on Oct 25,2007 from Singapore to Sydney with Singapore Airlines. There are now three A380 operators including Emirates and Qantas. The current price tag of a B747-8 is $300 million versus $327 million for the rival A380.
Bangkok Airways shrugs off alliance deal
Bangkok Airways has given the cold shoulder to an overture from Orient Thai Airlines and its budget carrier One-TwoGo to form an alliance to stay afloat.
Bangkok Airways president Puttipong Prasarttong-Osoth said there were a lot of discrepancies between the two groups which make integration impossible.
"Their business models, operating concepts, aircraft types and routes are totally different from ours," he told the Bangkok Post ."I don't think we will benefit from forming an alliance."
He ruled out an idea of a merger,noting that the only possible form of cooperation for Bangkok Airways was some sort of limited joint marketing.
The struggling Orient Thai and OneTwo-Go have sought wide-ranging cooperation with the regional airline such as joint flight operations and marketing.
The group had wanted to take advantage of Bangkok Airways' financial strength, younger fleet and network to enable its two airlines to weather the aviation industry's severe downturn and
fierce competition.
But the two firms differ in various aspects. Bangkok Airways is a 40-year-old regional airline that brands itself as "Asia's boutique airline" catering mostly to interPuttipong: Too many national tourists,differences passengers looking for full services and young aircraft, on routes in this region.
Orient Thai and One-Two-Go serve budget-conscious travellers who do not mind flying on old jets, mostly over 20 years in age, with sparse inflight offerings.
Their management styles also differ.Bangkok Airways is controlled by the Prasarttong-Osoth family assisted by a group of local and international professionals.
Orient Thai and One-Two-Go are basically run by their founder Udom Tantiprasongchai.
Orient Thai operates only one route - Bangkok-Hong Kong - on a scheduled daily basis - and charter services.
Its budget affiliate, One-Two-Go, is still reeling from its poor image since one of its MD-82 jetliners crashed on Sept 16,2007 at Phuket airport, leaving 89 dead and 41 injured.
It was blacklisted by the European Union following the crash for poor safety records. But in July this year, the airline was removed from the blacklist.
One-Two-Go has recently undergone a downsizing, laying off 400 staff and asked the remaining 600 staff to take leave without pay or cut their working days. Most of the employees have reportedly seen a 25% pay cut.
The airline has also halved daily flights to 14, suspending services from Don Mueang airport in Bangkok to Nakhon Si Thammarat and Surat Thani, and grounding aircraft.
Bangkok Airways president Puttipong Prasarttong-Osoth said there were a lot of discrepancies between the two groups which make integration impossible.
"Their business models, operating concepts, aircraft types and routes are totally different from ours," he told the Bangkok Post ."I don't think we will benefit from forming an alliance."
He ruled out an idea of a merger,noting that the only possible form of cooperation for Bangkok Airways was some sort of limited joint marketing.
The struggling Orient Thai and OneTwo-Go have sought wide-ranging cooperation with the regional airline such as joint flight operations and marketing.
The group had wanted to take advantage of Bangkok Airways' financial strength, younger fleet and network to enable its two airlines to weather the aviation industry's severe downturn and
fierce competition.
But the two firms differ in various aspects. Bangkok Airways is a 40-year-old regional airline that brands itself as "Asia's boutique airline" catering mostly to interPuttipong: Too many national tourists,differences passengers looking for full services and young aircraft, on routes in this region.
Orient Thai and One-Two-Go serve budget-conscious travellers who do not mind flying on old jets, mostly over 20 years in age, with sparse inflight offerings.
Their management styles also differ.Bangkok Airways is controlled by the Prasarttong-Osoth family assisted by a group of local and international professionals.
Orient Thai and One-Two-Go are basically run by their founder Udom Tantiprasongchai.
Orient Thai operates only one route - Bangkok-Hong Kong - on a scheduled daily basis - and charter services.
Its budget affiliate, One-Two-Go, is still reeling from its poor image since one of its MD-82 jetliners crashed on Sept 16,2007 at Phuket airport, leaving 89 dead and 41 injured.
It was blacklisted by the European Union following the crash for poor safety records. But in July this year, the airline was removed from the blacklist.
One-Two-Go has recently undergone a downsizing, laying off 400 staff and asked the remaining 600 staff to take leave without pay or cut their working days. Most of the employees have reportedly seen a 25% pay cut.
The airline has also halved daily flights to 14, suspending services from Don Mueang airport in Bangkok to Nakhon Si Thammarat and Surat Thani, and grounding aircraft.
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