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Lion Air begins Surabaya – Singapore flights

By Budget Airline News

Lion Air, Indonesia’s largest private airline, launched a new route on Monday December 19, 2011, a direct route from Surabaya, East Java to Singapore.

“The launch demonstrates our commitment to developing domestic routes,” Lion Air director for general affairs Edward Sirait said.

Lion Air will fly daily from Surabaya at 8 a.m. local time and arrive in Singapore at 11:20 a.m. local time. In addition, it flies from Singapore at 12:10 p.m. and arrive in Surabaya at 1:30 p.m. Singapore time is one hour earlier than Surabaya time. Lion Air will fly a Boeing 737-900 ER aircraft on this route.

The company expects the new route to help boost the local tourism industry.

Cebu Pacific adds service to Xiamen, China

By Budget Airline News

Budget airline Cebu Pacific is set to fly to all major coastal cities in China when it starts its Manila – Xiamen flights on March 23, 2012, a thrice weekly service, using its brand-new Airbus jet aircraft.

Flights for this route are scheduled to depart Manila at 11:20 p.m. every Monday, Wednesday and Friday, arriving in Xiamen at 01:35 a.m. Return flights will leave Xiamen at 2:25 a.m. every Tuesday, Thursday and Saturday, and arrive in Manila at 04:40am.

“Xiamen and Fujian Province are the well-known hometown of about 85% Filipino-Chinese, including (CEB’s owners), the Gokongweis,” noted VP for Marketing and Distribution Candice Iyog.

Xiamen is a highly industrialized city in the Fujian Province, on the Southeastern coast of mainland China. It was ranked China’s 2nd most suitable city for living by a Beijing-based polling agency, with highly developed banking services and open policy towards foreign investment and trade.

CEB is introducing its 18th international destination in the market with an P888 (CNY 138) Manila-Xiamen or Xiamen-Manila seat sale until December 23, 2011 or until seats last. After the sale, lowest year-round fares from Manila to Xiamen will start at P2,499 (CNY 388).

AirAsia Indonesia now flies Bandung/Surabaya to Bali

By Budget Airline News

Low cost carrier AirAsia Indonesia says it will launch routes between Surabaya, East Java, and Bandung, West Java, and between Bandung, Surabaya and Denpasar, Bali, on February 14, 2012.

“The launch will mark our commitment to the Indonesian market and is aimed at strengthening our position in the domestic market,” company president director Dharmadi said in a press statement made available on Monday. “We also want to boost local tourism and economy by providing affordable prices,” he added.

Dharmadi said that the new routes would directly connect Bandung, West Java; Bali and Surabaya, East Java; which would help expand the creative market in the three areas.

AirAsia Indonesia is offering special prices for these new routes with one-way fares ranging from IDR 69,000 (USD $7.50) to IDR 149,000 (USD $16).

Domestic fares rise in Vietnam

By Budget Airline News

Following the Ministry of Finance and Civil Aviation Administration of Vietnam’s (CAAV) adjustment of ceiling prices last week, domestic airlines in Vietnam are raising their fares.

Budget carrier Jetstar Pacific has upped fares from Ho Chi Minh City to Vinh and Hai Phong from between VND950,000 and VND2.5 million (US$38-120) (excluding taxes); while flights from HCM City to Da Nang will cost VND490,000-VND1.64 million ($23.52-78.72).

Meanwhile, Vietjet Air said flights on its only route between Ho Chi Minh City and Ha Noi would remain at VND900,000 ($43.2) (excluding taxes).

Vietnam Airlines said it would raise fares by 20 per cent for economy and not more than 5 per cent for business class.

GoAir increases flights from Mumbai

By Budget Airline News

GoAir, the Indian budget airline, is adding seven daily flights from Mumbai to Ahmedabad, Ranchi, Patna and Bangalore  to cater to the additional traffic in these sectors.  These added flights will begin from December 21, 2011.

With these additions , GoAir’s total number of daily flights will reach 82 and weekly flights will increase to 580. The low-cost airline has also introduced value-added services like web check-in, a  fog helpline and SMS service to check flights status.

GoAir currently serves 21 cities in India and operates a fleet of 11 aircrafts, with two new Airbus A320s  being added in January and April 2012.

Lion Air targets Indonesia’s high-end market with new spin-off

By Budget Airline News

Indonesian budget airline Lion Air has revealed plans to head upmarket as part of its expansion plans.

Rusdi Kirana, the president director of Lion Air, announced plans to launch a premium airline called Space Jet in 2013. The new airline will start with operations in Indonesia and expand to other regions by the end of the year.

Lion Air currently holds 47% of the domestic market share in Indonesia and hopes to raise its dominance to 60% over the next two years. The airline recently placed orders for 230 Boeing 737 aircrafts worth US$21.7 billion which will be used to serve its domestic market.

Nok Air adds Bangkok – Chiang Rai route

By Budget Airline News

Thai budget airline Nok Air has announced the addition of a Bangkok – Chiang Rai route starting on December 28, 2011. They will operate two flights per day on this new route using a Boeing 737-400.

“We are very excited about adding “Bangkok – Chiang Rai” as the latest route in our domestic network”, said Mr. Patee Sarasin, CEO of Nok Air.  “We are pleased to be able to provide further convenience to travelers from Bangkok to Chiang Rai, as we add to the 18 existing provinces in Thailand we now fly to.”

“This latest route has brought us even closer to achieving one of our aims, which is to take Thais to see the beauty of their country, to see families and family members that they haven’t seen in years, to allow Thais to travel quickly and comfortably, whether for pleasure or for business, and to do all this at prices that are affordable to all” Patee added.

Introductory  fares for the new Bangkok – Chaiang Rai route start from just THB 1,290 (USD $41) nett for one-way travel and can be purchased through the Nok Air website or call center.

New Japanese budget airline Peach unveils fares

By Budget Airline News

Peach Aviation Ltd., the low-cost carrier affiliated with All Nippon Airways Co., has announced fares for its initial two routes beginning in March 2012 from Kansai International Airport to Sapporo’s New Chitose Airport and Fukuoka Airport.

For fares effective until March 24, one-way tickets can be purchased for as little as 4,780 Yen (USD61) for the Osaka-Sapporo route and 3,780 Yen (USD48) for the Osaka-Fukuoka route. Ticket sales will begin in early January 2012.

Extra fees will apply for checked baggage, advance seat reservations, and changes to the booking. Also, fares will vary depending on crowding, so seats for any given flight could end up costing as much as 14,780 Yen (USD190) for the Osaka-Sapporo route and 11,780 Yen (USD151) for the Osaka-Fukuoka route.

There will be a 210 (USD3) Yen handing fee, as well as an extra charge of 1,050-2,100 Yen (USD15-27) if tickets are purchased over the phone or at the airport counter instead of via the Internet.

Peach’s fares will be one-third to one-half that of rival carriers. Peach plans to use this incentive to win over passengers.

Jetstar Asia CEO to step down

By Budget Airline News

Jetstar Asia has announced that Ms Chong Phit Lian will step down from her position as Chief Executive Officer on 1 February 2012. Ms Chong has served as CEO of Singapore’s largest budget airline for six years. She will remain a member of the Jetstar Asia board to help guide continued growth.

Chairman of Jetstar Asia, Dennis Choo, said Ms Chong had made a tremendous contribution to developing the low cost carrier’s Singapore hub. “Since taking over as CEO of Jetstar Asia in 2006, Ms Chong has led a rapid and very successful expansion in a competitive environment,” said Mr Choo. “Jetstar is now the largest low cost carrier in Singapore and is extremely well-positioned to make the most of emerging opportunities in the region.”

Mr Choo said Jetstar Asia would soon add three A330s to the business and onto its Air Operators Certificate, taking on functional responsibility for all long-haul flights from Singapore.

With an expanding network into China, significant investment in wide-bodied operations and the prospect of the Boeing Dreamliner as part of the Jetstar Group fleet from mid-2013, there’s a pipeline of skills and innovation driving this business forward.

“We are very pleased that Ms Chong will remain on the board of Jetstar Asia and be part of this future expansion,” he added. Mr Choo said the executive search for a Singaporean-national CEO was well-advanced, with an announcement expected in early 2012. Mr Paul Daff, most recently Head of the Qantas Group Jetconnect subsidiary in New Zealand, would serve as interim Jetstar Asia CEO. A founding senior executive of Jetstar Asia for three years, Mr Daff was formerly the airline’s Head of Commercial and has extensive experience in the aviation industry.

CEO of the broader Jetstar Group, Bruce Buchanan, thanked Ms Chong for the leadership and passion she brought to her role.

“Six years ago there were many who regarded Jetstar Asia as the underdog in a crowded marketplace,” said Mr Buchanan.

“Ms Chong has been an important member of the Jetstar Group leadership team that has helped make Jetstar Asia a successful business in its own right and a key pillar in our broader pan-Asian strategy.

“In 2012 and beyond, our focus will be on leveraging Jetstar’s leadership position in stimulating new travel demand as well as strengthening links in our network between Singapore, China, Japan, Australia and New Zealand,” said Mr Buchanan.

Jetstar Asia posted its largest profit to-date in 2010/11 of SGD18 million (normalised PBT) – the same year it achieved a 46 per cent increase in capacity and carried 2.7 million passengers. It currently flies to 27 destinations and has a fleet of 16 A320s.

AirAsia Indonesia postpones IPO until 2012

By Budget Airline News

AirAsia Indonesia, the Indonesian subsidiary of Asia’s biggest budget airline, will postpone its initial public offering (IPO) until 2012 due to the global economic slowdown.

In March 2011 the airline  announced plans for a public listing in the final quarter of the year. AirAsia Indonesia hoped to raise up to $200 million and named CIMB Securities Indonesia and Credit Suisse Securities Indonesia as its joint-lead underwriters.

However, on December 12, 2011, AirAsia Indonesia’a corporate communication manager Audrey Petriny stated “”The preparation for IPO is going well, but we decided to postpone it due to inconducive global economic conditions.” She said the 2012 launch date would depend on the “progress of the global economy”.

She was unable to provide details of when the IPO would be launched next year as it would depend on “progress of the global economy”. She added that “We want to do the initial public offering at the right time.”

Malaysia-based AirAsia opened its regional headquarters in Jakarta in October to exploit Southeast Asia’s largest market and extend its reach in the region.  AirAsia Indonesia currently operates a fleet of 16 Airbus and aims to add 20 more planes by 2015.