MALAYSIA: Malindo Goes To Adelaide

Malindo Air has made Adelaide (ADL), destination for this year’s World Routes, its fourth Australian gateway, launching a four times weekly service from Kuala Lumpur (KUL) via Denpasar (DPS) to the city.

The carrier is already present in Australia with flights to Perth, Melbourne and Brisbane. Launched 16 April from Kuala Lumpur, the carrier will serve the tri-city route using its fleet of 737-800s.

Competition on the 5,688-kilometre connection between Kuala Lumpur and Adelaide comes from Malaysia Airlines. The oneworld member already serves the airport pair five times weekly using its fleet of A330-300s.

The 3,764-kilometre sector between Denpasar and Adelaide is also served by another operator, with Jetstar Airways offering a daily rotation between the two destinations at present.

Malindo Air has added a fourth destination in Australia following the arrival of the Malaysia-based carrier’s inaugural service to Adelaide.

Flight OD173, operated by Boeing 737-800 9M-LCD, touched down in Adelaide a little after 0600 local time Wednesday morning and was greeted by an Airservices Aviation Rescue and Fire Fighting (ARFF) monitor cross as it taxied to the terminal building.

The aircraft was on the ground for about two hours before operating the reciprocal OD174 to Denpasar (Bali), following some celebrations at the boarding gate. The flight then continues onward to Kuala Lumpur.

Malindo Air chief executive Chandran Rama Muthy, who was on the inaugural flight into Adelaide, said there had been a good response to the service since ticket sales began three weeks ago.

“I see the demand as solid from Adelaide to Bali and Kuala Lumpur,” Muthy told Australian Aviation in an interview on Wednesday.

“The Australian market is really good for us. We use Bali as our intermediate hub before flying into Kuala Lumpur, mainly because our aircraft needs refuelling.”

“We found that Bali is another good destination for Australians so why not use Bali as a transit hub.”

Further, the Adelaide route also offered good connections from Kuala Lumpur to Malindo’s Asian network, which stretches north to Japan and west to countries such as India and Sri Lanka.

“We have a great range of connecting destinations from Kuala Lumpur and also from Bali,” Muthy said.

“From Kuala Lumpur you can connect to about 57 destinations.”

Adelaide Airport managing director Mark Young the airport was excited to have Malindo Air at Adelaide.

“Malindo Air will also be the first carrier since 2016 to offer a Business Class product directly between Adelaide and Bali,” Young said in a statement.

“This service provides South Australian passengers with more choice when heading to two of our most popular destinations, and also creates opportunities to attract South East Asian visitors to our city and local attractions.”

Malindo Air will operate four Kuala Lumpur-Denpasar-Adelaide flights a week with a mix of 737-800s and 737-900s featuring business and economy class seats.

Currently, Malaysia Airlines offers nonstop flights between Adelaide and Kuala Lumpur, while Qantas’s low-cost carrier (LCC) Jetstar is on the Adelaide-Denpasar route.

Malindo Air, which is part of Indonesia’s Lion Air group of carriers, started serving Australia in November 2015 when it began nonstop flights from Kuala Lumpur to Perth.

It added Kuala Lumpur-Denpasar-Brisbane and Kuala Lumpur-Denpasar-Melbourne services in March 2017 and June 2018, respectively.

All routes are served with either Boeing 737-800 or 737-900s in a two-class configuration. The airline has fifth freedom traffic rights for all it one-stop flights from Kuala Lumpur to Australia via Denpasar.

Muthy said he hoped to start flights between Kuala Lumpur and Sydney, again via Denpasar, in the second half of the year.

“We are still waiting for one final regulatory approval from the Malaysian civil aviation authority,” Muthy said. “Once that is sorted out, then we will announce the date and start operating the flight.”

“Hopefully we can catch the June school holidays. That would be great. We’ll see how it goes.”

As aviation thinktank CAPA – Centre for Aviation noted in a recent research report, Malindo is utilising the available capacity to serve Australia from Bali under the Indonesia-Malaysia air services agreement.

The bilateral allows Malaysian carriers to operate a maximum of 28 flights a week between Bali and Australia, and a maximum of seven frequencies per Australian destination.

Should Sydney launch with a daily service, that would mean Malindo would operate a total of 22 of the 28 available weekly Bali-Australia flights – four flights a week to Adelaide and Brisbane, as well daily services to Melbourne and Sydney – leaving only six frequencies for other airlines.

CAPA chief analyst Brendan Sobie said the expansion of Malindo in this part of the world has led to an intensifying of competition in the Australia-Bali market.

“Bali remains a popular and growing destination for Australians. As competition intensifies the fares will likely come down, stimulating further demand,” Sobie said in his March 19 2019 research note.

Jetstar could drive a new phase of growth as it starts to take delivery of A321neoLRs, some of which are earmarked for Australia-Bali routes, in 2020.

“The return of AirAsia X could have an even bigger impact, but bilateral constraints will need to be resolved.”

Muthy said Malindo would remain a narrowbody operator for the foreseeable future.

“I’m quite concerned to expand into widebody because the cost of operations is totally different than narrowbody,” Muthy said.

“We don’t want to take the risk of competing head to head with the national carrier and also the other carrier, fighting for market share.”


Tourism Observer

FRANCE: Air France And Qantas Re Establish Codeshare Agreement

Qantas and Air France have renewed its codesharing agreement on May 23, offering further connectivity between Europe and Australia via Asia.

Flights are available to book from June 5 for travel starting July 20, 2018.

Air France will add its flight codes to Qantas Flights between Hong Kong, and Sydney, Melbourne, and Brisbane as well as between Singapore (SIN) and Sydney, Melbourne, Brisbane, and Perth.

The French carrier’s customers will also be able to access codesharing services from Sydney to five cities across Australia’s domestic network: Canberra, Hobart, Adelaide, Cairns, and Darwin.

In return, Qantas will add its code to flights operated by Air France between Singapore, Hong Kong, and Paris-CDG, as a continuation of connections between Sydney, Brisbane, Melbourne, and Perth.

The new agreement will let the two carriers come together and codeshare onto as many as 200 flights per week.

Air France’s eligible customers can also use the Qantas lounged in Hong Kong, Singapore, and Australia.

Likewise, Qantas’ eligible customers are now able to use Air France lounges in Paris, Hong Kong, and Singapore.

We are very pleased to be re-establishing a partnership with Qantas, said Patrick Alexandre, EVP Commercial Sales, and Alliances at Air France-KLM.

Thanks to this agreement, the Air France-KLM group will be able to offer one of the best possible travel solutions for its customers from Europe to Australia, he added.

This new cooperation confirms our group’s desire to expand in the Asia-Pacific region, said Alexandre.

Alison Webster, CEO of Qantas, added that “this is great news for our customers who want to travel to Europe via Asia, giving them another option to get to Paris and more opportunities to earn Frequent Flyer Points.”

Despite the fact that Qantas and Air France are members of different alliances, the opportunity to earn miles on these codeshare flights is now possible.

The return of this popular codeshare delivers on our strategy of partnering to provide customers with access to an expanded network and more seamless travel experiences wherever they want to fly, Alison Webster says.

With the carrier recently expanding its presence out of London with direct flights to Perth on its brand-new Boeing 787-9 Dreamliner, Europe is finally at direct reach for the Australian carrier.

Through this codeshare with Air France, Australian customers will now have a more seamless experience.


Tourism Observer

AUSTRALIA: Qantas Planes Narrowly Miss A Collision At Perth Airport

Two Qantas flights had a near-miss in Perth when one plane crossed a runway into the path of another jet commencing take-off.

The Australian Transport Safety Bureau is investigating the serious incident, which occurred on Saturday after a Qantas flight from Sydney landed, cutting across a departing plane.

The flights involved in the incident, which happened around 2.40pm, were QF 567 from Sydney to Perth, and QF 582 heading the other way.

Both aircraft were Boeing 737s.

The pilot of QF 567 had to brake hard as the other jet, travelling to Sydney, was forced to abort its take-off.

An initial ATSB report said the landed aircraft was supposed to stop short at a holding point before the runway, but the pilots kept going until air traffic controllers told them to brake immediately.

The close shave occurred in an area known as a runway incursion hotspot, the ATSB said.

As part of the investigation, the ATSB will interview the flight crews and controllers on duty in the Perth control tower, examine recorded data from both aircraft and radar, and review recorded communications between the flight crews and air traffic control.

Qantas said it will also review the incident, and it is assisting the ATSB with its investigation, with a final report expected in a year.


Tourism Observer

SINGAPORE: Singapore Airlines Acquires Boeing 787-10 Dreamliner

Boeing and Singapore Airlines celebrated the delivery of the first 787-10 airplane, the newest and largest member of the Dreamliner family and a jet that will set a new global standard for fuel efficiency.

About 3,000 people marked the milestone at Boeing’s facility in North Charleston, South Carolina where the latest 787 model is manufactured.

Like the other 787 Dreamliners, the 787-10 is designed with strong, lightweight composites, the most advanced systems, and comfortable cabin features.

The 787-10, though, features a longer fuselage which allows it to carry about 40 more passengers or a total of 330 seats in a standard two-class configuration.

With the additional capacity, the 787-10 provides airlines the lowest operating cost per seat of any widebody airplane in service today.

It is an honour for us to be the world’s first airline to take delivery of this amazing aircraft, said Mr. Goh Choon Phong, chief executive officer of Singapore Airlines, the 787-10 launch customer.

The 787-10 is a magnificent piece of engineering and truly a work of art. It will be an important element in our overall growth strategy, enabling us to expand our network and strengthen our operations.

Goh added that the 787-10 underscores Singapore Airlines’ longstanding commitment to operate a modern fleet, and marks the start of a new chapter in our shared story with Boeing.

Singapore Airlines – through its subsidiary Scoot – already flies the 787-8 and 787-9 Dreamliners. With today’s delivery the group will be the first to operate all three Dreamliner models.

Singapore Airlines has 68 additional Boeing widebody jets on order, including 48 additional 787-10s, and 20 of the new 777-9s.

This is a big day for all of us at Boeing and for our global supplier partners. We are thrilled to deliver the first 787-10 Dreamliner to Singapore Airlines, one of the world’s leading carriers.

And we are honored by Singapore’s partnership and trust, as reflected by their repeated orders for the Dreamliner, said Kevin McAllister, Boeing Commercial Airplanes president and chief executive officer.

The 787-10 will extend the Dreamliner effect that we are seeing across commercial aviation as the 787’s superior passenger experience and unmatched fuel efficiency helps airlines open new routes and achieve significant fuel savings and emission reduction.

The 787-10’s superior performance and high commonality with its Dreamliner siblings have attracted strong interest from around the world, including in Asia where the jet can connect all points within the region.

The 787-10 also offers Asian operators the flexibility to fly to Europe, Africa and Oceania.

Singapore Airlines plans to puts its 787-10s into scheduled service in May, with flights from Singapore to Osaka, Japan and Perth, Australia.

Prior to the introduction of these services, the aircraft will be operated on selected flights to Bangkok and Kuala Lumpur for crew training purposes.



Tourism Observer

AUSTRALIA: 40 Passengers Removed From Qantas Flight Because Plane Was Too Heavy To Fly

Up to 40 passengers on board a Perth-bound Qantas flight have been removed from the aircraft because it was reportedly too heavy to fly.

Passengers on board the Boeing 737-800 Sydney to Perth flight, according to Radio 6PR, had their names called out and were told to disembark the plane.

One passenger commented her row was empty by the time the plane took off.

A Qantas spokeswoman said an issue with the fuel pump had affected the plane’s load readings.

As a result, a number of customers were reaccommodated onto the next available service, which departed shortly after, she said.

Keeping the upheavals against various airlines companies worldwide, the Australian company, however, arranged for subsequent flights for the deplaned passengers.

Thanking everyone for their co-operation and support the spokesperson added, We sincerely thank our customers for their patience and understanding.

The flight which was scheduled to arrive in Perth at 7.40pm was delayed by over an hour, due to the “overload” problem.

To be fair, the airline, under Alan Joyce, has done a very good job of making the most of a difficult operating environment, and the shares are trading over five times higher than their 2014 lows. But that's recent history.

You see, there was a time, way back before the global financial crisis, when Qantas was the target of private equity interest.

Those whose memories are long enough (and not too scarred by the events of 2008 and 2009) might remember the name Airline Partners Australia.

The group offered $5.45 per Qantas share in December 2006, a bid strongly endorsed by Qantas' then-chairwoman Margaret Jackson.

She was howled down and derided by many of the business and investing community at that time, many of whom said the deal – despite being about 30 per cent more than the then-current share price – undervalued the airline.

History tells us that Jackson was dead right.

Despite trading at a premium to the bid price in the months after it was unveiled,in the vain hope that another takeover would come, it then slumped and hard.

Only now, in June 2017 – almost 11 years later – has the share price recovered to the same level as that bid.

That's some lost decade.

In hindsight, that's an easy call to make. But it was plainly obvious at the time, too. That $5.45 represented 21 times the airline's trailing profit of $0.26 per share – a lot for any company, but crazy for a capital-heavy airline in strongly and irrationally competitive market.

But it gets worse: in the following 11 years, the company earned $0.82 per share. No, not each year. No, not on average.

If we graciously exclude inflation, that $5.45 was 66 times the average profit over the next 11 years. And shareholders said no.

Of course, it's easy looking back. But even at the time, expecting that Qantas' future would be all roses, after decades of low profits and cut-throat competition was, as Yes, Minister's Sir Humphrey might have said, courageous.

The four most dangerous words in investing are 'this time it's different'.

Which leads us to another question. Given the historical parallel that the share price has now reached, what should we make of Qantas today?

Is it a new airline? Is it different this time? Well, as I mentioned above, Joyce has done a great job with Qantas.

This is an industry in which avoiding bankruptcy is no mean feat, let alone presiding over a share price that's almost at a 10-year high.

And Jetstar's existence, and relative success, does change the situation somewhat, allowing Qantas to compete with low-cost carriers.

Indeed, even Warren Buffett's Berkshire Hathaway has been buying airline shares since.
Foolish takeaway

We can't know the future. Maybe the skies ahead are indeed clear and free of turbulence for The Flying Kangaroo. But, as Sir John Templeton famously observed, the four most dangerous words in investing are, "This time it's different".

Airlines are notoriously cyclical businesses. And with Qantas' profits – and share price – near 10-year highs, the risks are clearly to the downside. I can't speak for what Jackson would do these days, with the share price around 2006 levels, but I'd suggest investors should take her advice from those days, and take the money. There are better opportunities out there.

QATAR: Qatar Airways Marks Seventh Anniversary In Melbourne, Australia,

Qatar Airways Group Chief Executive, His Excellency Mr. Akbar Al Baker, said: “As we continue to grow apace in Australia, we have seen a clear need to inject additional capacity on the Melbourne service. We are delighted to introduce our A380 aircraft to Melbourne after seven years of operation to the world’s most liveable city.

Qatar Airways has marked its seventh anniversary in Melbourne, Australia, by announcing plans to introduce its superjumbo A380 aircraft to Melburnians from 30 June 2017 in order to meet rising passenger demand.

The 517-seater A380 aircraft will increase Qatar Airways’ current daily capacity by 44 per cent on this route to meet the growing travel and trade demand, connecting Melbourne-based passengers and freight to more than 150 destinations globally.

Well-travelled Melburnians will find our seamless and quick connections via Doha’s Hamad International Airport a great and easy travel option. And our expansive European network provides plenty of homecoming options for one of Australia’s most culturally diverse cities, which is home to many families from European heritage including the United Kingdom, Italy and Greece.”

Melbourne is the original home for Qatar Airways in Australia, with the airline adding services to Perth, Sydney and Adelaide thereafter. The airline first started flying to Australia’s second largest city on 6 December 2009 with a 259-seater B777 aircraft. With the introduction of daily A380 services, capacity on the Melbourne route will have increased two-fold since 2009.

The A380 aircraft features a luxurious and exclusive First Class Cabin with ultra-wide seats, which recline into a flat bed, two-passenger table extension dining, and designer sleeper suits, flight slippers and amenities. Passengers travelling in Qatar Airways’ award-winning Business Class can also enjoy direct aisle access with the 1-2-1 seat configuration and a suite of entertainment options including on-board Wi-Fi, keeping them fully connected while up in the air.

In addition, passengers in First and Business Class can relax and socialise at the on-board lounge located on the upper deck of the superjumbo.

The 517-seat capacity is spread across twin decks in a tri-class configuration of eight seats in First Class, 48 seats in Business Class and 461 in Economy Class, featuring world class amenities and first rate services that set it apart from other aircraft.

Passengers travelling from Melbourne to London and Paris can enjoy the Qatar Airways A380 experience throughout their journey to these two European destinations.

Melbourne – Doha Daily Flight Schedule:
Doha (DOH) – Melbourne (MEL) QR904 Departs: 20:50 Arrives: 17:20 (+1)
Melbourne (MEL) – Doha (DOH) QR905 Departs: 22:05 Arrives: 05:25 (+1)

UAE: ETIHAD Outlines 2-class 787-9 Operation In 2016

ETIHAD today announced planned new Boeing 787-9 operation scheduled for 2016, which will gradually enter operations on following 5 routes between May and November 2016. The airline will be taking delivery of 2-class 787-9, with configuration of J28Y271.

Planned service entry date as follow.

eff 01MAY16 Abu Dhabi – Dusseldorf (Previously served by 3-class 787-9 in 2014/15)
eff 01JUN16 Abu Dhabi – Perth
eff 01AUG16 Abu Dhabi – Istanbul Ataturk
eff 01AUG16 Abu Dhabi – Shanghai Pu Dong
eff 01NOV16 Abu Dhabi – Johannesburg

SINGAPORE: Qantas Resumed Perth-Singapore Route

QANTAS recommenced flights between Perth and Singapore following a 13-month hiatus from the route.

The airline will operate five return services weekly on a 168-seat Boeing 737, halving capacity from the former 297-seat A330 aircraft service.

A Qantas spokesperson said the Perth-Singapore route was ceased in May 2014 as part of the A$2 billion (US$1.5 billion) cost reduction across the business.

“As part of our transformation programme announced in early 2014, we had to make some difficult decisions to strengthen the business, which included withdrawing from the Perth-Singapore route.

“Since then we’ve turned our international business around, market conditions have changed, and customer demand has increased on the route.

“This is a key strategy of our transformation programme, which is about being more nimble and responding to market conditions and ensuring that we have the right aircraft on the right route.”

The service will arrive in Singapore at 17.20, subject to regulatory approval. Bookings have also commenced, with one-way sale fares available for A$199 (US$154) until April 30.

AUSTRALIA: Jetstar Airways Starts Townsville To Denpasar Route

This way to paradise. CEO of Jetstar Australia, David Hall, officially launches direct services to Denpasar from Townsville on 2 September. The route will be flown thrice-weekly.

Jetstar Airways helped Townsville (TSV) make its own little piece of history this week, with the launch on 2 September of the Australian regional airport’s first international service to Denpasar (DPS) in Bali, Indonesia.

This means that the Queensland airport becomes the 11th airport in Australia to currently offer international services (according to OAG schedules) – joining the likes of Adelaide, Brisbane, Cairns, Darwin, Sunshine Coast, Melbourne, Gold Coast, Perth, Port Hedland and Sydney. The thrice-weekly, 180-seat A320 service, naturally faces no direct competition.