Big Fat Airline Wrap
The amount of deals in the aviation industry this week is sending our brain airborne. Ok, we admit that pun was a bit of a stretch.
South America is closer than you think with LATAM’s new sale
South America’s leading airline, has launched a new sale, with massive savings of up to 44 percent. From today until 16 August 2018, Aussies can book return economy airfares from Melbourne to Santiago, Chile, the gateway to South America, for as little as AUD$999* or from Sydney (via Auckland) for just AUD$1,019* (including taxes).
LATAM is also offering Aussies travelling between 1 September 2018 to 30 June 2019 discounted flights to a range of destinations across the region, including Argentina, Brazil, Peru, Colombia and Uruguay.
Aussies can discover Buenos Aires, Argentina for as little as AUD$1,049* from Melbourne or AUD$1,069* from Sydney or head to Uruguay’s vibrant and eclectic capital city Montevideo from AUD$1,039* departing from Sydney or AUD$1,099* from Melbourne.
Alternatively, they can head to Brazil’s illustrious Rio de Janeiro for as little as AUD$1,229* from Melbourne or AUD$1,249* from Sydney or head south to experience the samba-fuelled nightlife of São Paulo for AUD$1,289* from Sydney or AUD$1,309* from Melbourne.
Foodies will enjoy tasting their way through Peru, South America’s gastronomic mecca, savouring some of the region’s best-kept culinary secrets from AUD$1,269* departing from Sydney or AUD$1,319* from Melbourne. Whilst culture vultures can explore the cobbled colonial streets of Bogota, Colombia and discover the city’s love of street art for just AUD$1,469* from Sydney or AUD$1,479* from Melbourne.
Emirates and flydubai come together to offer customers seamless travel options to Zagreb this winter
Emirates and its partner airline flydubai have announced that flights between Dubai and Zagreb in Croatia will be operated by flydubai from 2 December 2018 to 30 March 2019 after which flights will be operated by Emirates. The move will ensure that capacity is deployed to best serve customer demand by maximising the frequency for passengers during the winter season. This further illustrates the passenger benefits of the strategic partnership between the two Dubai-based airlines.
During this period, flight FZ1793 will depart from Dubai at 10:00 and arrive in Zagreb at 13:15 local time. The return flight FZ1794 will depart from Zagreb at 14:30 and arrive in Dubai at 23:00.
flydubai will operate the route with its new Boeing 737 MAX 8 aircraft, which offers customers an enhanced travel experience including lie-flat seats in Business Class, the latest Economy Class seating, in-flight entertainment via HD touchscreens and Boeing’s innovative Sky Interior throughout the cabin.
Etihad Airways launches major new partnership with Acqua Di Parma
Etihad Airways has launched a major new partnership with the Italian fragrance brand, ACQUA DI PARMA. From August, the UAE national airline will introduce a range of exclusive amenity bags and toiletries for its customers travelling in The Residence on its Airbus A380s, and on long-haul First Class and Business Class services. The iconic brand will also feature in the airline’s flagship First Class Lounge & Spa in Abu Dhabi.
The new collaboration was celebrated with a curated event at the St. Regis Hotel’s legendary Abu Dhabi Suite, which was decorated in a style inspired by the perfumer, and featured a unique perfume room where guests were given a personal fragrance experience by a team from ACQUA DI PARMA.
The event also saw the screening of a specially commissioned short film showcasing the partnership. Depicting a guest on an Etihad flight admiring the plush surroundings of his Business Class seat, the film shows him being instantly transported on a sensory journey to the landscapes of Italy by taking in the scent of ACQUA DI PARMA’s famous Colonia fragrance offered onboard.
Launch of new ‘Changi Stopovers in Singapore’ program
Changi Airport Group (CAG) today announced the launch of its ‘Changi Stopovers’ program, aimed at enticing¬¬ passengers travelling through Changi Airport to stop over[1] in Singapore and explore the Lion City. The program provides attractive options for travellers to enjoy a Singapore stopover holiday when they visit Southeast Asia or while on route to a long-haul destination.
‘Changi Stopovers’ will be promoted jointly by CAG and the Singapore Tourism Board (STB) to overseas travellers in a AUD$3.2 million marketing partnership spanning two years. Under the program, passengers who book a stopover package on the Changi Stopovers website[2] will ¬enjoy complimentary one-way airport-hotel transfer (by coach) and a mobile SIM card worth AUD$10. Packages are available from AUD$63 per person. A full list of current participating hotels can be found in the Annex.
Enhancing Changi’s position as a transfer hub
CAG continuously works with its industry partners to better serve the needs of its different passenger groups – including transfer and stopover passengers. The Changi Stopovers program is its latest initiative, which will benefit transfer[3] passengers flying with any airline operating at Changi Airport. Today, more than 100 airlines operate at Changi, connecting Singapore to some 400 cities in about 100 countries and territories worldwide.
Transfer passengers currently make up about 30% of Changi Airport’s total traffic, with passenger movements from Australia and India registering as top contributors to transfer traffic at Changi. Last year, more than 1.4 million passengers from Australia travelled through Changi Airport, onwards to countries including India, the United Kingdom and Thailand.
While benefiting passengers, the program also strengthens Changi Airport’s position as a regional hub of choice, enhancing traffic for CAG’s airline partners.
Building mindshare in key markets
CAG’s Vice President for Passenger Development, Mr Peh Ke-Wei said, “We’re excited to launch ‘Changi Stopovers in Singapore’ with strong support from the Singapore Tourism Board. This program is part of our continued efforts in strengthening offerings at Changi Airport, and to sustain and attract passengers who choose to stop over in Singapore. We are also working with our airline and travel trade partners to offer this stopover program via their sales channels in the coming months. At Changi, we always aim to present our passengers with the best travelling experience. With Jewel Changi Airport opening its doors next year, its myriad of lifestyle offerings and attractions will also offer an enhanced stopover experience for our passengers.”
Added Ms Jacqueline Ng, Director, Marketing Partnerships & Planning, STB, “We’re pleased to partner Changi Airport Group in the Changi Stopovers program as it enables us to reach out to a largely untapped audience. Through the offers in the Stopovers program, we hope more transfer passengers would be convinced to stay in Singapore to explore all that our city and its myriad experiences can offer to make their entire trip even more memorable.”
Operating profit of $193m dampened by steep rise in fuel price
The SIA Group reported an operating profit of $193 million in the April-June 2018 quarter, a $212 million (-52.3%) reduction from prior year’s restated operating profit of $405 million [Note 2], which included non-recurring revenue items of $175 million [Note 3]. Excluding these non-recurring items, the decrease would have been $37 million (-16.1%). Although passenger and cargo flown revenue rose by $178 million, the operating performance was adversely affected by increased net fuel costs (+$154 million), which was driven by a 39.3% increase in the average jet fuel price.
Group revenue amounted to $3,844 million, a $20 million reduction (-0.5%). Passenger and cargo flown revenue increased by $178 million, outweighing the absence of the non-recurring items in the same period last year. The growth in passenger flown revenue (+$148 million, or +5.1%) was driven by an 8.3% increase in traffic, outpacing the decline in passenger yield (-3.2%). Cargo flown revenue was up $30 million (+6.0%), as cargo yield rose 9.9%, albeit on lower loads carried (-3.5%). Revenue contribution by engineering services fell $19 million (-14.9%) on lower airframe and line maintenance activities.
Group expenditure increased $192 million to $3,651 million (+5.6%), predominantly led by an increase in net fuel cost (+$154 million). Fuel cost before hedging for the Group rose by $312 million, mainly due to a US$26 per barrel (+39.3%) increase in average jet fuel price. Half of this increase was alleviated by hedging gains versus losses last year (+$158 million). Ex-fuel costs were slightly higher (+$38 million or 1.5%), partly due to expansion by SilkAir and Scoot.
As a consequence of the weaker operating profit, Group net profit fell to $140 million (-$198 million or -58.6%). Excluding the one-off items in the prior year (post-tax), the Group net profit would have decreased by $53 million (-27.5%).
Email the Travel Weekly team at traveldesk@travelweekly.com.au
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