THAILAND: Thai Airways International Halts Flights

Thai Airways International will ground all services in Asia, 25 March, followed by Australia on 27 March and Europe
on 1 April, the airline announced Tuesday evening.

According to the airline’s announcement flights will remain grounded
until 31 May.

Blaming travel bans and country lockdowns that battle the Covid-19 outbreaks across Europe and Asia the airline is embarking on an unprecedented shutdown of flights that will last through to 31 May.

Starting on 25 March 2020 services are suspended to Hong Kong, Taipei, Tokyo (Narita and Haneda), Osaka, Nagoya, Seoul, Phnom Penh, Vientiane, Ho Chi Minh, Hanoi, Yangon, Singapore, Jakarta, Denpasar, Kunming, Xiamen, Chengdu, Beijing, Shanghai, Guangzhou, Karachi, Kathmandu, Lahore, Dhaka, Islamabad, and Colombo.

Domestic flights to Chiang Mai, Phuket, and Krabi will be transferred and operated by THAI Smile.

Starting on 27 March 2020 services are suspended to Brisbane, Sydney, Melbourne, and Perth in Australia.

Starting on 1 April 2020 THAI will cancel most of its flights to Europe serving London, Frankfurt, Paris, Brussels, Copenhagen, Oslo, Moscow
and Stockholm.

The airline had earlier suspended flights to Sendai, Sapporo, Fukuoka, Busan, Manila, Kuala Lumpur, Rome, Milan, Vienna, New Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Muscat, Dubai, and Auckland.

Passengers who hold THAI and THAI Smile code-share tickets, issued before 25 March 2020 with the following travel periods, can convert unused tickets to one-year valid travel voucher without fees or surcharges:
Asian Routes 25 March to 31 May 2020; European, Australian and New Zealand Routes 1 April to 31 May 2020.

Royal Orchid Plus (ROP) members holding award tickets issued for travel during 25 March to 31 May 2020 are eligible for a full re-credit mileages, or they can opt to change the travel date without any fee or charge with expired miles extended until 30 September 2020.

Passengers can check flight schedules and make itinerary changes themselves on thaiairways.com website. For ticket adjustments or more information, ROP members can contact THAI Sales Offices or visit thaiairways.com/rop.

THAI will still operate cargo service on some routes and will operate charter flights if there are stranded passengers or government agencies that make a request.

PHILIPPINES: Jeju Air Opens New Routes

Jeju Air launched six new routes in the space of four days in late December, including two new links each from its home market of South Korea to the Philippines and Taiwan, and one each to Malaysia and Thailand.

Frequencies on the sectors range from two weekly flights to daily services. All flights are operated by the South Korean LCC’s 737-800s. Only the two routes from Muan (MWX) will see no direct competition.

The longest of the new sectors is the 3,397-kilometre connection between Muan and Kota Kinabalu (BKI), while the shortest is the 1,395-kilometre link from Daegu (TAE) to Taipei Taoyuan (TPE). The average sector length across the six routes is 2,482 kilometres.

Cebu Airport celebrated the inaugural Jeju Air departure on the South Korean carrier’s new route to Muan on 22 December.

Flights will operate five times weekly on this 2,754-kilometre sector facing no direct competition. This was one of six new routes launched by the LCC between 19 December and 23 December 2018.

Jeju Air introduced a new route from Daegu (TAE) to Macau (MFM) on 2 December. The South Korean LCC will operate the 2,110-kilometre connection five times weekly, using its 737-800s. There is no direct competition on the route.

Commenting on the airport’s latest link, Eric Fong, Director of Marketing Department, Macau International Airport Company Limited said: There are four low-cost airlines from Korea operating services between Seoul, Busan and Macau.

This new service between Macau and Taegu would be in time to satisfy the Christmas peak season for travel in the coming December. Daegu becomes Jeju Air’s second route to Macau, with the carrier already operating a service from Seoul Incheon.

Jeju Air, is a South Korean low-cost airline, the first to be founded in the country. It offers scheduled domestic services between several cities in South Korea, as well as between Seoul and international destinations including Japan, China, Russia, the Mariana Islands, and various Southeast Asian countries.

It is also a founding member of the Value Alliance. Jeju Air is named after the Jeju Island. The airline, a member of AK group, is scheduled to open a Seoul head office tower hotel at Hongik station of the Seoul Metro, to diversify income.

Jeju Air operates an all-Boeing fleet consisting of the following aircraft:

- Boeing 737-800: 40

Total: 40

USA: Southwest, Delta, American, Korean And Alaska Drop And Open New Routes

Alaska Airlines will drop a Midwest route from San Francisco; Southwest hints at Hawaii and begins new service out of Los Angeles and Denver; American will fly a new transpacific route temporarily and adds a pair of domestic routes.

Korean plans to add a new U.S. gateway; and Frontier begins code-sharing to Mexico and announces another spate of new routes.

Last fall, Alaska Airlines started service between San Francisco and Indianapolis. And this fall, it will drop that route, effective September 30.

There has been lower than expected demand for these flights and we need to utilize this aircraft to add capacity on other routes, said a spokesperson of Alaska Airlines.

This change is another example of how we are looking across the network and making some tough decisions to ensure we are running as efficient of an operation as possible, so we can continue to offer our customers low fares. Alaska will continue to operate its Seattle-Indianapolis service.

The SFO-Indianapolis route is also served by United with it's cleverly numbered Flight 500, and Southwest has nonstop service between Oakland and Indianapolis.

Southwest made a few more hints this week about its new Hawaii service, revealing details such as its plans to serve meals on flights to and from the mainland.

Schedules are expected to be announced in October with flights starts a few weeks later, we predict November timeframe. Flights will have satellite based wi-fi and movies, too. No word on fares yet.

Southwest Airlines this week kicked off its newest transcontinental non-stop, with daily service between Los Angeles International and Tampa. The LAX-Tampa route is also served by Delta and Spirit Airlines. And at Denver, Southwest this week started new daily non-stops to Cincinnati.

For 10 days in January, American Airlines' usual Chicago O'Hare-Tokyo Narita non-stop will operate via an intermediate stop in Las Vegas.

American said that from January 4 to 14, the daily 787-8 LAS-NRT flight will be marketed by its joint venture partner Japan Airlines to carry passengers to and from the giant Consumer Electronics Show. JAL will continue to offer its own daily non-stops between Chicago and Tokyo during that period.

Meanwhile, American will add a couple of new domestic routes in the months ahead. On November 4, it will launch one daily roundtrip between Dallas/Ft. Worth and Cheyenne, Wyoming, operated by Skywest with a CRJ-200.

On December 22, it will begin one flight a week between its Charlotte hub and New Haven, flown by PSA Airlines with a CRJ-200.

Korean Air is coming to Boston next spring, with plans to begin Boston-Seoul Incheon service five days a week beginning April 12. Korean will use a 787-9 on the route, equipped with six first class suites, 18 lie-flat seats in business class and 245 seats in the main cabin.

Korean will operate the route as part of its joint venture partnership with Delta, which recently announced plans to launch its own new service to Seoul from Minneapolis-St. Paul beginning in 2019.

Later this month, Frontier Airlines and Mexican low-cost carrier Volaris will begin a massive program of code-sharing that will put Frontier's code onto 51 routes operated by Volaris and will see the Mexican carrier's code go onto 120 routes operated by Frontier.

The new code-sharing will apply to Volaris flights from San Francisco to Mexico City and Guadalajara, and San Jose to Guadalajara, Morelia and Zacatecas, among many others.

Meanwhile, Frontier has announced another spate of new domestic routes, mostly starting in mid-November. From Phoenix, Frontier will begin new service to Norfolk, Ft. Myers, Grand Rapids and Madison. From Tucson, it will add service to Denver.

At Tampa, Frontier will start flying to Syracuse, Grand Rapids, Portland (Maine), Norfolk, and Greenville, S.C. And at Ft. Myers, it will kick off seasonal service to Albany, Las Vegas, Phoenix., Portland (Maine), Salt Lake City and Syracuse.

Most of the new routes will offer two or three flights a week.


Tourism Observer

VIETNAM: Best Western To Open New Beach Resort In Cam Ranh

Just a month after announcing a new BW Premier Collection property that will be opened in Vung Tau, Vietnam, Best Western Hotels & Resorts has announced yet another property that will open in Vietnam.

Best Western Premier Cam Ranh Seahorse Beach Resort is the latest addition to the hotel group's growing portfolio.

Best Western Premier Cam Ranh Seahorse Beach Resort will be nestled on an idyllic stretch of golden sand on Vietnam’s south-central coast, overlooking the azure East Sea.

The new upscale beach resort in Cam Ranh is ideal for all types of travelers, from families seeking a beachfront vacation to corporate groups planning memorable meetings.

We are delighted to sign such a prestigious project in Vietnam, as we ramp up our expansion strategy in this dynamic country, said Olivier Berrivin, Best Western’s Managing Director of International Operations - Asia.

Best Western Premier Cam Ranh Seahorse Beach Resort is a perfect example of the type of first-class properties we are now attracting in Asia.

With record numbers of international visitors, a large domestic population and rising levels of affluence, Vietnam is an incredibly exciting destination with huge tourism potential.

We look forward to welcoming guests to this excellent resort in future and will continue to seek opportunities to bring Best Western’s world-class standards of hospitality to more areas of the country in future, Olivier added.

Upon opening, Best Western Premier Cam Ranh Seahorse Beach Resort will feature a total of 376 rooms and suites, all equipped with upscale facilities, spacious bathrooms and cutting-edge technology, including complimentary Wi-Fi.

Guests can sample delectable local and international cuisine in the restaurant, enjoy soothing therapies in the spa, have fun on the tennis court, cool off in the tropical outdoor pool, or simply stroll along the sandy beach or beside the landscaped lakes.

For corporate clients and event planners, the adjacent convention hall provides an ideal setting for every type and size of event.

This including major international conferences, all backed up with state-of-the-art audio-visual technology.

Located in Khanh Hoa province, in the south-central coast region of Vietnam, Cam Ranh is a stunning destination with golden sands and turquoise seas.

The expansion of Cam Ranh International Airport, which will soon open a new international passenger terminal featuring 80 check-in counters and ten aircraft bridges, is helping to transform the area into a major tourism destination.

The airport now welcomes direct flights from major cities including Hong Kong, Seoul, Shanghai and Kuala Lumpur.


Tourism Observer

FRANCE: Air France Starts Flights From Paris-Charles de Gaulle To Taipei

On Monday 16 April, Air France inaugurated its new Paris -Charles de Gaulle – Taipei (Taiwan) service.

The company now offers its customers 3 weekly flights by Boeing 777, equipped with the new long-haul travel cabins.

This new route between Paris-Charles de Gaulle and Taipei is operated on a code-share basis with SkyTeam alliance member, China Airlines.

AF552: leaves Paris-Charles de Gaulle at 13:35, arrives in Taipei at 8:15 the next day

AF557: leaves Taipei at 10:25, arrives at Paris-Charles de Gaulle at 18:20.

Flights operated on Mondays, Thursdays and Saturdays as from 16 April 2018 on departure from Paris-Charles de Gaulle.

14 weekly flights between Europe and Taipei

In addition, Air France-KLM offers 11 weekly flights on departure from Amsterdam-Schiphol: a daily flight operated by KLM by Boeing 777 and 4 weekly codeshare flights by China Airlines by Airbus A350.

In this way, in 2018, the group offers its customers 14 weekly flights between Europe and Taipei together with its partner China Airlines.

This summer, Air France and KLM customers will benefit from 203 weekly flights to 19 Asian destinations(1): Taipei, Hong Kong, Beijing, Shanghai, Guangzhou, Chengdu, Wuhan, Hangzhou, Xiamen, Tokyo, Osaka, Seoul, Singapore, Bangkok, Ho Chi Minh City, Jakarta, Denpasar-Bali, Kuala Lumpur and Manila.

Air France’s best cabins take off to Taipei

On board the Boeing 777 to Taipei, passengers enjoy all the comforts of the latest Business, Premium Economy and Economy cabins.

In the Business cabin, Air France offers excellence in the sky. The seat adapts to the shape of each individual, from seating position to a real 2-metre long bed.

At the heart of the curved structure, each passenger creates their own space, enveloping and protective, according to their desires.

The seat’s soft foam is designed to offer impeccable quality of sleep.

With a soft duvet and XXL-sized feather down pillow, everything has been designed to ensure peaceful sleep among the clouds.

Each passenger has a wide 16-inch (41 cm) HD touch screen.

In the Premium Economy cabin, customers enjoy more comfortable seats and a multi-position footrest, which enhances the comfort of this cabin even further.

In the Economy cabin, the seat has been entirely redesigned, with additional legroom, new seat cushions, softer headrests and a larger tray table.


Tourism Observer

SOUTH KOREA: Korean Air CEO's Daughter Suspended For Behaving "foolish and reckless"

Korean Air has suspended its CEO's younger daughter while police investigate reports she threw water at an advertising executive in a meeting.

Cho Hyun-min, 36, a senior vice-president at the company, has apologised and called her behaviour "foolish and reckless".

She denies throwing water but admits to shoving the advertising agency manager.

She is the younger sister of Cho Hyun-ah - the airline heiress who infamously delayed a flight over a packet of nuts.

Ms Cho, who is also known as Emily, lost her temper because she was unhappy with answers to her questions during the meeting in Seoul last month.

The national carrier said in a statement it would take appropriate action after the police investigation was over.

Ms Cho issued an apology on her Facebook page on Thursday: "I have no words to say for my action that I should not have done under any circumstances."

The airline said on Monday she had thrown a cup of water on the floor, but not at anyone's face.

The owners of Korean Air have been under intense scrutiny since Ms Cho's sister, who is also known as Heather, famously flew into a rage when macadamia nuts were served to her in a bag and not on a plate on a Seoul-bound flight from New York in December 2014.

The case attracted intense attention in South Korea, reopening a national debate about the Korean business system, which is dominated by family firms known as chaebols.

The incident was eventually brought to trial, and Cho Hyun-ah was convicted of violating aviation safety, coercion and abuse of power in 2015.

An appeals court later reduced the one-year sentence to a suspended term, and she was released after five months in jail.

She recently returned to a management role at the firm's hotel wing.

Korean Air Lines Co., operating as Korean Air, is the largest airline and flag carrier of South Korea based on fleet size, international destinations and international flights.

The airline's global headquarters are located in Seoul, Republic of Korea. Korean Air was founded as Korean National Airlines in 1946. After several years of service and expansion, the airline was fully privatized in 1969.

Korean Air's international passenger division and related subsidiary cargo division together serve 127 cities in 44 countries, while its domestic division serves 12 destinations.

It is among the top 20 airlines in the world in terms of passengers carried and is also the top-ranked international cargo airline. Incheon International Airport serves as Korean Air's international hub.

Korean Air also maintains a satellite headquarters campus at Incheon. The majority of Korean Air's pilots, ground staff, and flight attendants are based in Seoul.

Korean Air is the parent company of Jin Air and is a founding member of the SkyTeam airline alliance. It was voted Asia's best airline by Business Traveler readers in 2012.

Korean Air was founded by the South Korean government in 1962 as Korean Air Lines to replace Korean National Airlines, which was founded in 1946.

On March 1, 1969, the Hanjin Transport Group took control of the airline. Long-haul freight operations were introduced on April 26, 1971, followed by passenger services to Los Angeles International Airport on April 19, 1972.

International flights to Hong Kong, Taiwan and Los Angeles were flown with Boeing 707s until the introduction of the Boeing 747 in 1973.

In 1973, the airline introduced Boeing 747s on its Pacific routes and started a European service to Paris, France using the 707 and then McDonnell Douglas DC-10.

In 1975, the airline became one of the earliest Asian airlines to operate Airbus aircraft with the purchase of three Airbus A300s, which were put into immediate service on Asian routes.

Since South Korean aircraft were prohibited from flying in the airspace of North Korea and the Soviet Union at the time, the European routes had to be designed eastbound from South Korea, such as Gimpo-Anchorage-Paris

A blue-top, silver and redesigned livery with a new corporate Korean Air logo featuring a stylized Taegeuk design was introduced on March 1, 1984, and the airline's name changed to Korean Air from Korean Air Lines.

This livery was introduced on its Fokker F28 Fellowships. It was designed in cooperation between Korean Air and Boeing.

In the 1990s, Korean Air became the first airline to use the new McDonnell Douglas MD-11 to supplement its new fleet of Boeing 747-400 aircraft.

However, the MD-11 did not meet the airline's performance requirements and they were eventually converted to freighters.

Some older 747 aircraft were also converted for freight service.

In the 1980s, Korean Air's head office was in the KAL Building on Namdaemunno, Jung-gu, Seoul.

On June 5, 2007, Korean Air said that it would create a new low-cost carrier called Jin Air in Korea to compete with Korea's KTX high-speed railway network system, which offered cheaper fares and less stringent security procedures compared to air travel.

Jin Air started its scheduled passenger service from Seoul to Jeju on July 17, 2008. Korean Air announced that some of its 737s and A300s would be given to Jin Air.

By 2009, Korean Air's image had become more prestigious, differing from the airline's late-1990s image, which had been tarnished by several fatal accidents.

In mid-2010, a co-marketing deal with games company Blizzard Entertainment sent a 747-400 and a 737-900 taking to the skies wrapped in StarCraft II branding.

In August 2010, Korean Air announced heavy second-quarter losses despite record high revenue. In August 2010, Hanjin Group, the parent of Korean, opened a new cargo terminal at Navoi in Uzbekistan, which would become a cargo hub with regular Incheon-Navoi-Milan flights.

Korean Air owns five hotels: two KAL hotels on Jeju island, the Hyatt in Incheon; Waikiki Resort in Hawaii and a hotel/office building called the Wilshire Grand Tower which is being redeveloped.

This building in downtown Los Angeles will house the largest InterContinental Hotel in the Americas in what will be the tallest building in Los Angeles.

In 2013, Korean Air acquired a 44% stake in Czech Airlines. It sold the stake in October 2017.

Korean Air's headquarters, the Korean Air Operations Center, is located in Gonghang-dong, Gangseo-gu in Seoul. Korean Air also has offices at Gimpo International Airport in Seoul.

Korean Air's other hubs are at Jeju International Airport, Jeju and Gimhae International Airport, Busan. The maintenance facilities are located in Gimhae International Airport.

Korean Air serves 114 international destinations in 50 countries on 6 continents, excluding codeshares. The airlines's international hub is Incheon International Airport, most important airport in Korea.

The airline also flies 13 domestic destinations within South Korea. KAL operates between Incheon and 22 cities in mainland China, and along with Asiana Airlines, it is one of the two largest foreign airlines to operate into the People's Republic of China.

Korean Air codeshares with these airlines:

- Aeroflot
- Aerolíneas Argentinas
- Aeroméxico
- Air Europa
- Air France (Joint Venture Partner)
- Air Seychelles
- Air Tahiti Nui
- Alaska Airlines/Horizon Air
- Alitalia
- American Airlines (Oneworld)
- China Airlines
- China Eastern Airlines
- China Southern Airlines
- Czech Airlines
- Delta Air Lines (Joint Venture Partner)
- Emirates
- Etihad Airways (Stragic Partner)
- Garuda Indonesia
- Gol Transportes Aereos
- Hainan Airlines
- Hawaiian Airlines
- Japan Airlines (Oneworld)
- Jet Airways
- Jin Air (Korean Air Subsidiary)
- Kenya Airways
- KLM
- LATAM Chile (Oneworld)
- LATAM Perú (Oneworld)
- Malaysia Airlines (Oneworld)
- MIAT Mongolian Airlines
- Myanmar Airways International
- Saudia
- Shanghai Airlines
- Uzbekistan Airways
- Vietnam Airlines
- WestJet
- XiamenAir

Korean Air is also an airline partner of Skywards, the frequent-flyer program for Emirates. Skywards members can earn miles for flying Korean Air and can redeem miles for free flights.

Korean Air fleet consists of the following aircraft:

- Korean Air Airbus A330-200 - 8

- Airbus A330-300 - 21

- Airbus A380-800 - 10

- Boeing 737-800 - 14

- Boeing 737-900 - 16

- Boeing 737-900ER - 6

- Boeing 747-8I - 10

- Boeing 777-200ER - 14

- Boeing 777-300 - 4

- Boeing 777-300ER - 23

- Boeing 787-9 - 5

- Bombardier CS300 - 4

Korean Air Cargo fleet

- Boeing 747-400ERF - 4

- Boeing 747-400F - 3

- Boeing 747-8F - 7

- Boeing 777F - 12

Korean Air business jet fleet

- Boeing BBJ1 - 2

- Boeing 787-8 - 1

- Bombardier Global Express XRS - 2

- Gulfstream G650ER - 1

Korean Air helicopter fleet

- Eurocopter EC-135 - 5

- Sikorsky S-76+ - 1

- Total Fleet - 173

Korean Air has made the following orders:

- Airbus A321neo - 30

- Boeing 737 MAX 8 - 30

- Boeing 777-300ER - 7

- Boeing 787-9 - 5

- Bombardier CS300 - 6

- Total Orders - 78

Korean Air offers four types of first class, three types of business (Prestige) class, and two types of economy class.

Prestige Class seats include Prestige Sleeper seats on all Boeing 777-300ERs and Airbus A380s, as well as 777-200ER aircraft that feature Kosmo Suites seats.

Prestige Plus seats on most of the Boeing 777-200ER fleet, most of the Boeing 747-400 fleet, and one Boeing 777-300; and old Prestige Class seats.

Prestige Sleeper seats recline to 180 degrees, while Prestige Plus seats recline up to 172 degrees. Old Prestige Class seats recline up to only 138 degrees, although these seats are being phased out except for on Boeing 737 aircraft.

Economy Class seats recline up to 121 degrees. A new type of seat called New Economy Class is being installed on all Boeing 777-300ER and Boeing 777-200ER aircraft with Kosmo Suites, all Boeing 777-300 aircraft.

Some Airbus A330-300 aircraft, some Airbus A330-200 aircraft, the Airbus A380 aircraft factory installed, and brand new Boeing 747-8i aircraft.

The Kosmo Suites seats and the Prestige Sleeper seats were first introduced in the Boeing 777-300ERs in May 2009. Both seats could stretch to 180 degrees, and became more private than seats before.

The Korean Air Airbus A380-800 aircraft also feature an inflight bar called the Celestial Bar in partnership with Absolut Vodka, featuring a range of Absolut cocktails, along with an integrated lounge space.

It is located on the upper deck Business Class cabin, and is accessible only to First and Prestige class passengers.

On the lower deck of the A380, there is a Lancome designed duty-free shop located in the rear of the cabin that is available to all passengers.

SKYPASS is the frequent-flyer program of Korean Air. SKYPASS also refers to the blue card which Korean Air frequent-flyers are given. The motto of SKYPASS is - Beyond your Imagination.

The program's elite levels are comparable to those of other airlines' frequent-flyer programs, requiring members to fly 30,000 miles per two-year cycle - initial entry into this level requires 50,000 miles.

Qualification for the highest level is based on lifetime flight miles, requiring a customer to fly 1 million miles for Million Miler, which is the highest elite status or 500,000 miles for Morning Calm Premium, which comes second.

Both membership levels are eligible for SkyTeam Elite Plus privileges. Membership in these levels are granted for life.

Korean Air is also involved in aerospace research and manufacturing.

The division, known as the Korean Air Aerospace Division (KAL-ASD), manufactures licensed versions of the MD Helicopters MD 500 and Sikorsky UH-60 Black Hawk helicopters.

As well as the Northrop F-5E/F Tiger II fighter aircraft, the aft fuselage and wings for the KF-16 fighter aircraft manufactured by Korean Aerospace Industries and parts for various commercial aircraft including the Boeing 737, Boeing 747, Boeing 777 and Boeing 787 Dreamliner; and the Airbus A330 and Airbus A380.

In 1991 the division designed and flew the Korean Air Chang-Gong 91 light aircraft.

KAA also provides aircraft maintenance support for the United States Department of Defense in Asia and maintains a research division with focuses on launch vehicles, satellites, commercial aircraft, military aircraft, helicopters and simulation systems.

In October 2012, a development deal between Bombardier Aerospace and a government-led South Korean consortium was announced, aiming to develop a 90-seat turboprop regional airliner, targeting a 2019 launch date.

The consortium would include Korea Aerospace Industries and Korean Air Lines.

Korean Air had many fatal accidents between 1970 and 1999, during which time 16 aircraft were written off in serious incidents and accidents with the loss of 700 lives.

Two Korean Air aircraft were shot down by the Soviet Union, including Korean Air Lines Flight 007 on September 1, 1983 that was carrying 269 people, including a sitting U.S. Congressman, Larry McDonald.

The last fatal passenger incident was the Korean Air Flight 801 crash in 1997, which killed 228 people. The last crew fatality was in the crash of Korean Air Cargo Flight 8509 in December 1999.

Korean Air has been cited as one of the examples of the South Korean chaebol system, wherein corporate conglomerates, established with government support, overreach diverse branches of industry.

For much of the time between the foundation of Korean Air as Korean National Airlines in 1946 and the foundation of Asiana Airlines in 1988, Korean Air was the only airline operating in South Korea.

The process of privatization of Korean National Airlines in 1969 was supported by Park Chung-hee, the South Korean military general-president who seized power of the country through a military coup d'état; and the monopoly of the airline was secured for two decades.

After widening the Jaebeol branches, the subsidiary corporations of Korean Air include marine and overland transportation businesses, hotels and real estate among others; and the previous branches included heavy industry, passenger transportation, construction and a stockbroking business.

The nature of the South Korean chaebeol system involves nepotism. A series of incidents involving Korean Air in 2000s have revealed an ugly side of the culture within chaebeols, South Korean’s giant family-run conglomerates.

Cho Hyun-Ah, also known as Heather Cho, is the daughter of the chairman Cho Yang-ho. She resigned from some of her duties in late 2014 after she ordered a Korean Air jet to return to the gate to allow a flight attendant to be removed from the aircraft.

The attendant had served Cho nuts in a bag instead of on a plate. As a result of further fallout, Cho Hyun-Ah was later arrested by Korean authorities for violating South Korea's aviation safety laws.

Fly With Korean Air



Tourism Observer

ETHIOPIA: Ethiopian Airlines Expanding Routes, Now Flying To Argentina

Ethiopian Airlines launched its inaugural trip from Addis Ababa to Buenos Aires, Argentina, on Wednesday with an all-female crew.

The flag carrier will fly five times a week between the two capitals.

The Buenos Aires route increases the airline’s destinations in the Americas to six.

Ethiopian flies to Washington, New York, and Los Angeles in the United States, Toronto in Canada, and São Paulo, Brazil.

Ethiopian flight to Buenos Aires will provide efficient connections to our network in Asia, the Middle East, and Africa, including Beijing, Shanghai, Seoul, Tokyo, Mumbai, Delhi, Dubai, Beirut, Nairobi, and Cairo, said Mr Tewolde Gebremariam, the CEO of Ethiopian Airlines Group.

He said the airline’s expansion in terms of destinations and fleet in recent years would be instrumental in supporting Ethiopia’s rapid economic growth which is largely supported by industrialisation and tourism.

As the national carrier, we are fast expanding our global footprint, currently covering over 100 international destinations across five continents, to support the country’s growth by facilitating its access to investors and tourists,said Mr Tewolde.

Ethiopian Airlines, Africa's most profitable, has set up hubs in the continent with the latest agreement signed in January to acquire a 45 per cent stake in Zambia Airways that is set to be re-launched after more than two decades.

Ethiopian also operates Togo's Asky Airlines where it holds a 40 per cent stake, and Malawian Airlines, formerly Air Malawi, where it has a 49 per cent shareholding.

Ethiopian Airlines is seeking to set up hubs in southern Africa, Central Africa and the Horn that connect neighbouring countries leading to faster trade, investment and tourism within the continent.

We are working with Malawi and Zambia as southern Africa hubs. Another hub would be in central Africa, covering the Democratic Republic of Congo, Congo Brazzaville and Chad. We are also in talks with neighbouring Djibouti, said Tewelde Gebremariam, the CEO of Ethiopian Airlines Group.

We have a successful hub in Togo, Asky Airline in which we hold a 40 per cent share, Mr Tewelde said.

Before we established Asky, the only way to travel to travel from Cote d’Ivoire to Benin was first to go to Paris and then from Paris to Benin, he added.

He made the remark in Addis Ababa on Wednesday at the launch of an Ethiopian Airlines app that enables customers to make transactions including downloading their boarding pass.

Explaining the significance of having multiple hubs in Africa, Mr Tewelde said: We are not entering a joint venture with these African countries just for the sake of making money. Addis Ababa is a very successful hub.

Out of the around 11 million passengers we transport every year, 70 per cent are not entering Addis. They are transit passengers to other African countries and the rest of the world.

We are connecting Europe with Africa, the Middle East with Africa and Asia with Africa. We want to expand this and be close to the customers.

With a very large landmass and around one billion population, Africa has a high growth opportunity. By expanding the hubs, we will be contributing significantly to intra-Africa connectivity, he said.

Although Africa is reasonably connected with the rest of the world, the continent is not well connected to itself. Internal transport within Africa has been a major challenge especially because there are no open skies.

Due to financial and managerial complications Ethiopian Airlines recently ceased negotiations with Nigerian government to take over the previously private owned Arik Airlines of Nigeria.

A few months ago Mr Tewelde announced that Ethiopian Airlines was working on getting registered as a local Airline in Mozambique.

In 2017, Ethiopian Airlines added 12 new destinations. We will be launching flights to 10 new destinations between now and June 2018, Mr Tewelde said.

Ethiopian Airlines has acquired a 45 per cent stake in Zambia Airways that is set to be re-launched after more than two decades.

Africa's most profitable airline said Tuesday it has finalised a shareholders agreement with Zambia in line with its vision of setting up multiple hubs in southern and central Africa and the Horn.

Under the pact, the Zambian government will be the majority shareholder with a 55 per cent stake.

The re-launching of Zambia Airways will enable the travelling public in Zambia and the southern African region to enjoy greater connectivity options.

Thereby facilitating the flow of investment, trade and tourism, and contributing to the socio-economic growth of the country and the region, said Mr Tewolde Gebremariam, the CEO of Ethiopian Airlines Group.

In the statement, Mr Tewolde said Zambia Airways will serve national and regional destinations before embarking on international flights.

In December, Zambia's Cabinet approved the revival of the national airline at an estimated cost of $30 million.

The airline was liquidated in 1994 after running broke largely due to patronage and abuse by the political establishment.

Ethiopia Airlines runs Togo's Asky Airlines where it holds a 40 per cent stake and Malawian Airlines, formerly Air Malawi, where it has a 49 per cent shareholding.

Ethiopian Airlines almost doubled its profit for 2016, buoyed by an 18 per cent jump in passenger numbers.

The Ethiopian carrier summed up a great year for the continent’s largest and only profitable airline, with revenues of $261.9 million in 2016, from $150.9 million the previous year.

This despite the challenging operating environment caused by slower global economic growth and weaker performance of Africa’s major economies.

Its revenues increased by 8.6 per cent to $2.3 billion, a development attributed to an increase in flight frequency and opening up of new routes.

But the airline group chief executive officer Tewolde Gebremariam says that it was exposed to high currency fluctuations, leaving more than $220 million of its funds stuck in several African countries that had forex challenges.

Ethiopian booked a currency loss of $18.1 million as a result of continuous currency devaluation in many African countries and the associated problems of repatriation.

Mr Tewolde said the airline had difficulties repatriating funds in some oil-producing African countries.

Repatriating funds held up in Nigeria, Egypt, Angola and Sudan as a result of the oil price declines was a problem.

We have more than $220 million stuck in these countries. This has hit our liquidity, Mr Gebremariam said.

The airline was forced to resort to a natural hedge; making payments in the currency of sales and maintaining a higher cash reserve in the stable currencies such as US dollar, the euro and the British pound.

Due to the fluctuation of most currencies against the US dollar, as well as critical shortages of forex in some of the major markers in Africa.

We are closely working with International Air Transport Association (IATA) for possible ways of hedging of selected currency risks in major financial markets with selected banks, Mr Gebremariam said.

Data from the IATA shows that last year, 20 African governments owed African and foreign airlines $1.4 billion in stuck funds.

Nigeria, which devalued its currency twice, held the highest amount, $339 million, followed by Egypt with $310 million, then Angola with $190 million, Sudan $250 million and Algeria $125 million.

In 2016, Ethiopian Airlines saw its operating expenses increase by 6 per cent, which was lower than the rate of revenue growth.

It spent $631.9 million on fuel equivalent to 32 per cent of its total costs during the period down from $739.4 million the previous year.

Its overflying and navigation, foreign overhaul and landing charges also increased by $54.7 million to $147.4 million because of the increased operations, and exchange rate impact.

The airline saved $81.73 million through the implementation of various structural and strategic cost-saving initiatives.

Facing stiff competition from Gulf carriers, Ethiopia Airlines transported 270,000 tonnes of cargo and 7.6 million passengers in 2016, 75 per cent of whom were in transit.

Its finance costs jumped to $1.97 billion, $1.8 billion being loans from foreign lending institutions, secured on aircraft, bearing interest at rates of up to 4.84 per cent annually, and repayable in quarterly instalments.

It also owes $121.3 million in secured and unsecured loans from local and foreign lenders and development agencies, bearing interest at rates of up to 6.9 per cent annually.

The airline spent $61.6 million on landing and parking, up from $48.23 million, as a result of the new routes.



Tourism Observer

Top Shopping Countries For Travelers

Bangkok, London, and Paris are the top-ranked international travel destinations for holiday shoppers, according to the annual Mastercard Global Destinations Cities Index released today.

The Index is more than a ranking of the 132 top destination cities of today and tomorrow. Based on visitor volume and spend for the 2016 calendar year.

The in-depth analysis also provides a forecast for growth in 2017, insight on the fastest growing destination cities, and a deeper understanding of why people travel and how they spend around the world.

The global top 10 destination cities

Forecasts for continued growth in 2017 are also positive, and London is predicated to eclipse Bangkok’s growth (see table below). Travellers from USA and France represented nearly one quarter of visitors to London, with 2.32m and 1.99m visitors respectively.


City 2016 International Overnight Visitors Forecast for 2017

Bangkok 19.41 million visitors 4.0%

London 19.06 million visitors 5.0%

Paris 15.45 million visitors 4.4%

Dubai 14.87 million visitors 7.7%

Singapore 13.11 million visitors 2.6%

New York 12.70 million visitors (-2.4%)

Seoul 12.39 million visitors 0.4%

Kuala Lumpur 11.28 million visitors 7.2%

Tokyo 11.15 million visitors 12.2%

Istanbul 9.16 million visitors 0.9%

London’s importance as a global hub has once again been underlined because of its iconic landmarks, incredible architecture and arts scene, but also because of its world-class connectivity, in terms of getting to and within the city.

Yet London stands out particularly for its shopping, representing 46.7% of visitors’ expenditure, more than any other city.

81% of the visitors are for leisure, while the remaining 1 in 5 people are in London for business reasons.

People spend more on shopping while in London than any other city in the report.

It represents 46.7% of visitors’ expenditure. Only Osaka (43.4%) and Tokyo (43.1%) come close.

International visitor spent $16.09 billion in 2016, the highest of all European destinations, and significantly higher than Paris which came in second for expenditure with $12.03 billion.

Their expenditure was broken down as follows:

Shopping: 46.7%

Accommodation: 30.1%

Food and beverages: 16.5%

Local transport: 4.3%

Local services: 1.9%

Miscellaneous: 0.5%

Mark Barnett, President of UK, Ireland, Nordics & Baltics, Mastercard said London appeals to so many different passions of so many people.

It is one of the capitals for fashion and theatre.

Thousands of restaurants and countless Michelin stars make it a mecca for foodies.

Historic landmarks rub shoulders with futuristic towers but above all else it is the incredible diversity, energy and creative spirit that make it so special, so international and outward-looking.

That is why London is a true destination city and well positioned to benefit from increased visitor numbers and spending.

Andrew Cooke, Acting CEO of London & Partners which runs visitlondon.com, said The enduring appeal of London means the city is consistently one of the world’s top destinations for visitors from around the world.

London is one of the most diverse and thrilling cities in the world with everything from historic palaces to leading exhibitions.

And now, according to MasterCard it’s the world’s leading city for shopping. Whether it’s browsing high-end luxury stores or bargain-hunting in quirky markets off the beaten track, London has something to offer every visitor.”



Tourism Observer

SOUTH KOREA: Seoul Third Most Popular For MICE

Seoul is the third most popular city for international meetings in 2016, according to the Union of International Associations (UIA), Monday.

According to the UIA's annual International Meetings Statistics Report, Seoul came in third for the second consecutive year in the number of international meetings held. The UIA is a nonprofit research institute based in Belgium.

According to the report, Seoul hosted 526 meetings last year, behind only Brussels which hosted 906 meetings and Singapore with 888.

On the national level, Korea ranked first by holding 997 international meetings followed by Belgium and Singapore. Fifty-three percent of these meetings were located in Seoul, followed by Busan and Jeju Island.

The city government welcomed the results.

Despite the relative disadvantages of Seoul's infrastructure compared to other cities, the city government was able to see such successful results by collaborating with partners and also continuing to develop its MICE industry, the city said in a statement.

MICE stands for Meetings, Incentives, Conferences and Events.

The city government has endeavored to strengthen Seoul's international position and thereby its tourism, most notably by rolling out a master plan for MICE in 2013.

Under the plan, the city government has been developing existing infrastructure as well as new venues that can hold large conferences.

The International Meetings Statistics Report, first published in 1960, is an annual report that presents statistics about international meetings.

The report includes a selective list of meetings, organized or sponsored by international organizations that appear in the Yearbook of International Organizations and on the International Congress Calendar.

MEXICO: Mexico Wants More Asian Tourists As Lourdes Berho Quits As CEO Mexico Tourism Board

DRIVEN by the improvement of direct connectivity and tourism facilitators, such as the visa system, Mexico expects the number of inbound travellers to surge from 35 million last year to about 42 million by 2020, said Maria Teresa Solis, Mexico’s vice-minister for tourism planning and policy.

The number of Asian visitors to Mexico is expected to more than double by 2020 from 500,000 last year.

“In Mexico, we are doing several things. We are working with Mexican destinations and with the private sector to strengthen a sustainability certifications,” she said in an exclusive interview with The Nation.

“We have one destination, called Huatulco, which has been awarded Earth Check Platinum, due to its high standards in terms of energy use [and] water and waste disposal.

“We are also doing the same with hotel, restaurant, small and micro businesses. They are getting sustainability certification,” she said.

The “S” mark will be bestowed by the tourism secretary on any business with good sustainable practices.

The United Nations is promoting 2017 as the international year for sustainable tourism development. Mexico has launched a major campaign, including radio and TV shows, to build awareness among the public.

“In Mexico, our key challenge is to catch up with the rapid growth of tourism in some destinations, such as Cancun, Riviera Nayarit and Los Cabos, especially in the allocation of public services to both tourists and local people, including water supply, light, housing and schools,” Solis said.

“We are building a new airport in Mexico City as the existing airport is insufficient. At a cost of US$9.1 billion [Bt315 billion], the new airport will be ready by 2020, and once fully completed, it will handle about 120 million passengers a year.

“The new airport is designed by well-known British and Mexican architects, respectively Norman Foster and Fernando Romero.”

About 35 million tourists came to Mexico last year, of whom 58 per cent were from the United States, 14 per cent from Central and South America, 11 per cent from Canada, 13 per cent from Europe and 4 per cent from the rest of the world, including Asia.

The growth of the tourism industry in Mexico, which represents 8.7 per cent of gross domestic product, will be driven by the country’s continuing improvement of direct connectivity and such things as easier visa processing, Solis said.

However, 85 per cent of the country’s tourism is by domestic travellers.

All Nippon Airways as of February 16 began operating direct flights between Tokyo and Mexico City.

China Southern as of April 11 began flying directly between Guangzhou and Mexico City.

Aeromexico will launch on May 27 a direct service between Seoul and Mexico City.

“It costs about $170 for the multiple visa to come to Thailand. However, Thai citizens will pay only $36 for a multiple visa to Mexico, which will be valid for six months,” she said.

Guillermo Eguiarte, director of the Mexico Tourism Board, said that considering flight connectivity and growth of the market, a growing middle class and more people heading to long-haul destinations, by 2020 Asia’s share of the Mexican tourism market would double to 8 per cent.

Thailand is a hub for the Southeast Asian market, he said.

“Our objective is to begin to improve awareness of Mexico and each destination with the local travel industry and partner with the main airlines that have flights to Mexico with fewer stops, such as ANA, Aeromexico and China Southern,” he said.

Meanwhile,Lourdes Berho has stepped down as CEO of the Mexico Tourism Board after less than a year in the position to return to the private sector, according to a statement from Sectur, Mexico's tourism ministry.

Tourism secretary Enrique de la Madrid named Hector Flores Santana as her replacement, effective May 1. Flores has held various executive positions with Sectur.

Berho is the founder of Alchemia, a marketing communications company focused on travel and tourism, innovation and sustainability. From 2004 to 2008, she was CEO of Conde Nast for Mexico and Latin America.

De la Madrid thanked Berho for her efforts to streamline the country's tourism-promotion efforts, citing high-profile events such as last month's Tianguis Turistico expo in Acapulco and the National Football League's return to Mexico City last fall.

QATAR: Doha’s Hamad International Airport Is World’s Sixth 5 Star Airport

Hamad International Airport (HIA) becomes the sixth airport in the world to receive the ‘5-Star Airport’ designation by Skytrax, the London-based aviation institute and the gold standard for conveying the passenger’s voice in airport and airline rankings. This makes HIA the first ever airport in the Middle East to earn this highly sought after and acclaimed title.

The prestigious 5-Star Airport rating is only awarded to airports achieving the highest overall Quality Performance. The 5-Star Airport rating recognises those airports providing excellent facilities for customers combined with high quality airport staff service. Airport Quality ranking covers frontline areas for departures, arrival and transfer, including airport facilities, customer service, security, immigration, shop outlets and food and beverage facilities.

The highest rating – five stars – has previously only been awarded to five other airports worldwide: Singapore, Seoul, Hong Kong, Tokyo-Haneda and Munich. This recognition is particularly timely as it comes after a year of reaching a number of strategic milestones at HIA, including the introduction of its iBeacon enabled mobile app, the launch of the Smart Airport features in the terminal, the operation of the dual passenger train shuttle to concourses D and E and the opening of multiple duty free stores.

Moreover, HIA has continued to work closely with Qatar Museums adding multiple international and local art installations across the terminal.

Qatar Airways Group Chief Executive Mr. Akbar Al Baker, said: 'Hamad International Airport was designed and built in the modern era, taking into account what passengers want most - convenience and service. HIA more than exceeds passenger expectations by providing what passengers want in an environment that is beautiful, thoughtful and welcoming. HIA’s success is apparent in the fact that it is now at capacity, and the third phase of its development is highly anticipated.

The airport serves more than 30 million passengers every year, and will grow to 50 million, yet each passenger can design their own experience at the airport, whether it is shopping in the world-class Qatar Duty Free premium stores, relaxing in one of its 12 lounges, resting comfortably in the Airport Hotel or using one of the many amenities at the Vitality Spa including the squash courts and the swimming pool. The airport experience is designed to be as memorable as the journey'.

Engineer Badr Mohammed Al Meer, Chief Operating Officer of Hamad International Airport added his own voice when he said: 'Joining the elite of airports and being the first airport in the Middle East to earn five stars from Skytrax is an honour, and a direct result of the thousands of people who ensure HIA operates smoothly every day, every flight.

No matter how long our guests are with us, we strive to make their journey flawless and memorable. This acknowledgement is highly gratifying, and will continue to motivate us to create an exceptional experience for everyone'.

Mr. Edward Plaisted, CEO of Skytrax then commented on HIA's new ranking: 'We extend our congratulations to Hamad International Airport for achieving this 5-Star Airport recognition, as well as being the first airport in the Middle East to gain this status. This accolade brings the challenge that 5-Star Airports find their customers become ever more demanding, and we have every confidence that HIA will continue to both maintain and improve standards as we move forward into 2017'.

With just three years of operations, HIA has garnered world-class awards and recognition, including Skytrax Middle East’s Best Airport in 2015 and 2016, Skytrax Best Staff Service in the Middle East 2016 and previously Best Airport Award at the Future Travel Experience (FTE) Asia Awards in 2015.

QATAR: Qatar Airways Will Fly To Maputo

Qatar Airways announced it will upgrade its three times weekly flights between Doha and Maputo, Mozambique, to a non-stop Boeing 787 Dreamliner service effective 27 March 2016.

The new non-stop flights will be operated on Tuesdays, Thursdays and Sundays.

Qatar Airways currently serves the Doha – Maputo route three times a week via South Africa’s largest city Johannesburg.

The carrier will de-link flights from Johannesburg, Qatar Airways’ Maputo route, with commencing of the new route.

Qatar Airways CEO Akbar Al Baker, said:

“Three years ago, Qatar Airways began flights to Maputo via Johannesburg, and over that time we have seen a consistent increase in demand resulting in today’s announcement, making our Maputo-Doha flights non-stop.”

“We are very pleased that we will now be able to provide leisure and business passengers shorter, more convenient flights when travelling between Doha and Maputo.”

With the start of Qatar Airways’ new non-stop service to Maputo International Airport, passengers from Europe, the Americas, Middle East and Asia Pacific will take advantage of a seamless one-stop connection to Mozambique’s capital city via Doha, saving approximately five hours per direction from prior itineraries.

Travellers from Mozambique will have more convenient options to more than 150 destinations around the world, including popular destinations like Beijing, Guangzhou, Shanghai, Hong Kong, Seoul, Tokyo, Karachi, Mumbai, Delhi and Dubai.

Qatar Airways’ Boeing 787 Dreamliner aircraft features 254 seats in a two-class configuration of 22 seats in business class and 232 in economy.

Qatar Airways fleet consists of 173 aircraft (and 169 orders), as of January 2016.

USA: Starwood Seen As Acquisition Target For Hyatt, Chinese Firms

At least three Chinese firms also are vying to acquire the Stamford, Connecticut-based company.

Starwood Hotels & Resorts Worldwide Inc, the lodging company that hired an adviser earlier this year to help explore strategic options, has a new suitor.

Hyatt Hotels Corp. is in advanced talks to buy Starwood, according to a CNBC report Wednesday. At least three Chinese firms also are vying to acquire the Stamford, Connecticut-based company, said a person with knowledge of the matter. Also Wednesday, Starwood said its timeshare unit, Vistana Signature Experiences, will be spun off and acquired by Miami-based Interval Leisure Group Inc.

Starwood, whose brands include W, Westin and St Regis, announced in April that it hired Lazard Ltd and was exploring options including a possible sale. The company, led by interim Chief Executive Officer Adam Aron after the resignation of longtime head Frits van Paasschen in February, had been lagging behind competitors such as Marriott International Inc and Hilton Worldwide Holdings Inc in expanding the number of hotels carrying its brands.

Starwood “owns a portfolio of generally well-regarded global lodging brands, it’s got a big footprint internationally and it’s got a big footprint in the US with some of the better-known brands around,” said Robert LaFleur, a hotel analyst at JMP Securities LLC in New York. “From a takeout standpoint, it’s pretty attractive.”

Shares rise

Starwood shares rose 6.3 per cent to close at $79.50, a three-month high. Hyatt slipped 1.8 per cent to $49.63. Starwood has a market value of about $13.5 billion (Dh49.5 billion), and Hyatt’s is about $7.1 billion.

Amy Patti, a spokeswoman for Chicago-based Hyatt, and Carrie Bloom, a Starwood spokeswoman, declined to comment on the CNBC report.

“Our progress and our process is active and nearing conclusion,” Aron said of Starwood’s strategic review on the company’s earnings conference call Wednesday. “Indeed I’d be surprised if we don’t have answers to these questions before the end of this calendar year.”

CNBC’s David Faber said a Hyatt deal for Stamford, Connecticut-based Starwood could come as soon as next week, citing people familiar with the talks. The company’s founding Pritzker family controls Hyatt through its ownership of super- voting Class B shares.

Hyatt’s well-established brands, especially Hyatt Place, in the limited-service hotel segment could help Starwood plug a hole in its own select-service business, said Michael Bellisario, an analyst at Robert W. Baird & Co.

Formidible competitor

“Hyatt’s problem is it’s just smaller — about one-fifth of the size of Hilton and Marriott,” he said. If it combines with Starwood, “they would become a very formidable competitor.”

Hyatt had 41 owned or leased hotels with about 20,000 rooms as of June 30, in 10 countries. The company has said it wants to increase the proportion of rooms outside the US from 18 per cent to 22 per cent in owned and leased properties. Hyatt owns assets in Paris, London, Zurich, Seoul and Mexico City in addition to the US. It has 618 properties in 51 countries, including hotels it manages.

Starwood, as of September 30, owns, leases or holds through joint ventures a total of 32 hotels worldwide, including St Regis properties in New York, San Francisco and Florence, Italy, and Luxury Collection hotels in Spain, Austria and Argentina. They have a total of 12,339 rooms. Including hotels it manages, Starwood has more than 1,270 properties in about 100 countries.

The company is spinning off and selling Vistana, which includes 22 timeshare resorts with more that 220,000 owners and more than 5,000 employees, to Interval in a deal valued at about $1.5 billion. Starwood’s sale of the business may be a prelude to a combination with Hyatt, which previously sold its own timeshare unit to Interval, Bellisario said.

“The resulting hotel-only business should be more attractive to any potential acquirer,” he said. “It lessens the total investment needed by about $1.5 billion and the timeshare business is not as well understood by the investment community.”

Combined platforms

One benefit to a takeover by Hyatt “would definitely be the scale of the combined platforms,” said Lukas Hartwich, a lodging analyst at Green Street Advisors LLC. “Combined, the two companies would have over 500,000 rooms, which would considerably close the gap between them and Hilton and Marriott.”

The US hotel industry is in its sixth year of recovery from the recession, with revenue per available room — a measure of occupancy and rates — increasing 6.7 per cent this year through September, according to research firm STR Inc. Revpar rose 8 per cent in September. Occupancies across all US hotels averaged 65.4 per cent in the 12 months through September, the highest in any one-year period since 1988, and the average daily room rate also reached a record, STR said.

“In the hotel industry, as an operator or owner, life is pretty good or awesome, depending on where you are,” said Jan Freitag, senior vice president at the Hendersonville, Tennessee- based firm.

Chinese suitors

At least three Chinese firms also are vying to acquire Starwood, said a person with knowledge of the matter. HNA Group Co, hotelier Jin Jiang International (Holdings) Co and sovereign wealth fund China Investment Corp have each applied to the Chinese government for approval to proceed with offers for all or part of Starwood, the person said.

One company that’s not pursuing Starwood Hotels is McLean, Virginia-based Hilton.

“You can rule out Hilton’s interest,” CEO Christopher Nassetta said on the company’s third-quarter earnings conference call Wednesday. “We are not involved in the process in any way.”

SOUTH KOREA: Seoul Is Preferable Destination For Wealthy Travellers

THE BUSTLING metropolis of Seoul, South Korea has topped a new survey ranking the luxury travel destinations that attract – and retain – wealthy tourists the longest.

For the 2015 Luxury Travel Index, prepared by technology and booking company Switchfly, analysts looked at the average length of stay that affluent travelers spend at top destinations around the world.

And while the list of 15 destinations is dominated by European cities and islands, the top spot goes to the South Korean capital, where wealthy travelers spend an average of 13 days shopping, eating and sightseeing – and dropping their money.

After Seoul, Dubai and Milan round out the top three spots.

The list, which is meant to serve as a snapshot into the traveling habits of tourists who fly first class and sleep in five-star hotels, also shows that interest in the Americas for deep-pocketed travelers is weak: The only two destinations to crack the list are Sao Paulo and Miami.

Here are the luxury destinations where wealthy travelers choose to spend the most time – and money – according to Switchfly, which powers booking and loyalty redemption programs for leading international hotel brands:-

1. Seoul, South Korea (13.0 days)
2. Dubai, UAE (12.7 days)
3. Milan, Italy (12.3 days)
4. Athens, Greece (11.5 days)
5. Singapore (11.1 days)
6. Frankfurt, Germany (11 days)
7. Sao Paulo, Brazil (tied 10.6 days)
7. Hong Kong, China (tied 10.6 days)
8. Bali, Indonesia (10 days)
9. Lisbon, Portugal (9.7 days)
10. Tokyo, Japan (9.6 days)
11. Crete, Greece (9.2 days)
12. Mykonos, Greece (8.7 days)
13. Rome, Italy (8.5 days)
14. Miami, Florida, USA (8.3 days)

GERMANY: Lufthansa Is The Sixth Largest Airline In The World

When measured in ASKs, Lufthansa is the sixth largest airline in the world, beaten only by Delta Air Lines, United Airlines, Emirates, American Airlines, and Southwest Airlines when considering this week’s operations (using OAG Schedules Analyser data). Looking back to S06 using this metric, the German national carrier was still in sixth spot, but was the #2 in Europe, behind American, United, Delta, Continental Airlines and British Airways. The Star Alliance carrier’s main base has been Frankfurt Airport for decades, as it is today. It currently commands 67% frequency share at Germany’s largest and Europe’s third largest hub, a figure that has gradually improved (or worsened depending on your views on control of slots at hubs) over the last 10 years, having been 61% in September 2006.

Matching this recent increase in dominance at Frankfurt are the airline’s number of weekly frequencies and destinations. Our data elves thought that the step-change in weekly frequencies (up to around 3,000) and points served (up to over 160) which was observed in 2011 was due to the airport opening its fourth runway. However, this piece of infrastructure did not ‘officially’ open until October 2011 (we know that because we were there), which might mean that the runway’s capacity was being utilised before (our data is looking at week commencing 22 September) the ‘official’ opening on 21 October. Answers on a postcard please to the Editor…
Domestic market dominates

This summer, Lufthansa operates to 67 country markets from its main hub, one more than in the same week last year ‒ gaining Iceland, with Reykjavik/Keflavik thrice-weekly services having launched on 2 May ‒ and significantly more than its southern German hub in Munich, which, according to OAG Schedules Analyser data, by comparison offers just 47 country markets in S15. Capacity to Lufthansa’s second biggest country market (as measured by seats) ‒ the US ‒ has been enhanced this week, with the start of a Lufthansa CityLine/Jump-operated five times weekly route to Tampa on 25 September.

While at many European airports, and indeed at the continent’s main hubs, domestic capacity would appear to be being replaced (and forced onto alternative land-based modes) with more lucrative international and intercontinental flying, this does not appear to be the case for Lufthansa at Frankfurt. In the last 12 months, it has added another 1.7% more seat capacity into its domestic routes, seeing it pass the 100,000 weekly seats mark. Capacity within Germany therefore remains at a healthy 18.5% of all seats offered by Lufthansa at its main hub, no doubt underlining the importance of home-market feed for the airline.

Demark, which has witnessed a 16% increase in seats since last September (partly thanks to the launch of services to Aalborg at the start of the summer season), has replaced Russia within the airline’s top 12 country markets, with the latter seeing a 32% culling of weekly seats as the frosty political and economic relations continue. Poland also produced double digit growth (10%) in the last year, due in part to a new four times weekly service to Bydgoszcz, launched on 29 March. The market experiencing the most significant fall in capacity is France (down 4.5%), which when combined with Spain’s 7.3% increase, has seen the latter leapfrog the former into fifth spot behind the UK.
Paris CDG feels the pinch

Lufthansa’s capacity to Europe’s second largest airport and competing hub at Paris CDG has been reduced from the levels planned a year ago, with nearly 11% fewer seats available. Rome Fiumicino encountered the next largest drop in offered seats, with a 5.2% annual decline. At the other end of the scale, three airports mustered double-digit increases over the same period, led by Brussels (+13%), and closely followed by London Heathrow (+11.3%) and Hamburg (+10.9%). The top 12 routes in September 2015 represented 26% of all of Lufthansa’s Frankfurt capacity, up marginally from the 25.7% recorded in 2014.

Hannover drops out of the top 12, only to be replaced by another domestic connection to Düsseldorf, which was 15th in the 2014 listing. The biggest route for Lufthansa outside of Europe is now Shanghai Pudong, in 15th position overall. Despite annual seat growth of less than 1% since last September, the Chinese route has climbed from 17th spot it held in 2014, jumping ahead of last year’s biggest non-European route – New York JFK – which due to its 4% seat reduction has fallen from 16th to 17th. However, the 12% increase in weekly seats offered by Lufthansa to Los Angeles from its Frankfurt hub has seen it draw level with JFK, as both airports have a seven-day capacity of 6,111 seats.

In terms of ASKs Lufthansa’s top 10 routes from Frankfurt are dominated by US destinations, which feature six times. Los Angeles and Shanghai Pudong lead the way (both served double-daily) with almost 50% more ASKs than third-placed New York JFK. Rounding out the top 10 are Singapore, Chicago, Washington, San Francisco, Johannesburg, Seoul and Boston.
Luxembourg and Nairobi next

Looking ahead to what is left of 2015 and onto 2016, Lufthansa is planning to launch two further routes from its Frankfurt hub this October. After a 16-year hiatus in services, a four times weekly route to Nairobi ‒ operated again by its CityLine/Jump subsidiary ‒ is planned from 25 October, and on the same day the carrier will commence four daily flights to Luxembourg. In addition, CityLine/Jump-operated twice-weekly, A340-300 services to Cancún (8 December), Malé (9 December) and Mauritius (10 December) will be launched later in the year, with five times weekly services to Panama City pencilled-in for 2 March 2016.

SOUTH KOREA: Korean Air Becomes The First Airline To Operate Both Versions Of The Boeing 747-8

Korean Air (Seoul) and Boeing (Chicago, Seattle and Charleston) yesterday (August 25) marked the delivery of the airline’s first 747-8 Intercontinental. The new fuel-efficient jet is the first of 10 747-8 passenger airplanes the carrier has on order.

With this delivery, Korean Air becomes the first airline in the world to operate both the passenger and freighter versions of the 747-8. Korean Air currently operates seven 747-8 Freighters.

Korea’s flag carrier currently operates a fleet of 87 Boeing passenger airplanes that includes 737, 747 and 777s. The airline also operates an all-Boeing cargo fleet of 28 747-400, 747-8 and 777 Freighters.

With a range of 7,730 nautical miles (14,310 km), the 747-8 Intercontinental offers 16 percent savings in fuel consumption and emissions over its predecessor, the 747-400, while generating 30 percent less noise. The airplane also features an all-new, 787 Dreamliner-inspired interior that includes a new curved, upswept architecture giving passengers a greater feeling of space and comfort.

Korean Air’s jet is configured with 368 seats and features the brand new First Class Kosmo Suite 2.0, which include a sliding door and higher partitions to provide added privacy for passengers. The suites are also equipped with updated in-flight entertainment systems, with large 24-inch high-definition monitors and new handheld touch remotes.

The airline’s Business Class Prestige Suites (above) will feature staggered seating and privacy panels, along with 18-inch high definition touch screens.

Korean Air’s Aerospace Division is a key Boeing partner on both the 747-8 and 787 programs, supplying the distinctive raked wing-tips for each model. They are also one of two suppliers producing the new 737 MAX Advanced Technology (AT) Winglet.

Korean Air, with a fleet of 161 aircraft, is one of the world’s top 20 airlines, and operates more than 430 flights per day to 128 cities in 45 countries. It is a founding member of the SkyTeam alliance, which together with its 20 members, offers its 612 million annual passengers a worldwide system of more than 16,000 daily flights covering 1,052 destinations in 177 countries.