Fastjet makes headway in South Africa

By Jamie Nimmo
No frills African airline fastjet  has revealed that its new South African partner has changed its name from Blockbuster to fastjet Holdings.

It follows Wednesday’s news that fastjet is to enter the South African flight market after signing a deal with investment company Blockbuster to set up a service between Johannesburg and Cape Town.
The joint venture will be 75% owned by fastjet Holdings, with the rest owned by fastjet.
The company said it is now “fully engaged” with partners and working hard to get tickets on sale within a few weeks.
A commercial deal has been struck with local operator Federal Air, which will allow fastjet to use its existing licensing infrastructure and deliver its “proven low-cost airline model to the South African public”.
The date targeted to launch the route is 31 May.
Kyle Haywood, the company’s managing director for Africa, has become chief executive of the new South African operations, heading up the launch team there.
The South African has over 25 years’ experience in global airlines, such as British Airways and Etihad Airways. He was CEO of Air Uganda before joining fastjet.
Chief executive Ed Winter said: “I am really pleased that we have Kyle overseeing this exciting project given his vast aviation experience.
“There is a strategic gap in the South African market for a pan-continental, high quality, low-cost airline and we look forward to bridging that gap and bringing fastjet to the South African public.
“This marks an exciting chapter in fastjet’s history and an important step in its growth strategy.”

Airport lounges becoming a key tool in the fight for market share

BY DR. WOLFGANG H. THOME, ETN UGANDA 

When the new Jomo Kenyatta International Airport terminal facility eventually open its doors to passengers next year, Kenya Airways will be opening two state-of-the-art lounges in Terminal Four. Presently, Kenya Airways offer two lounges at the existing terminal, however, they are distant from the boarding gates and near the main immigration facilities where arriving passengers go through passport control.


While the upstairs lounge was doubled in size a few months ago, passengers using either of the two lounges during peak traffic times know that space is at a premium in these facilities and that, food and service quality notwithstanding, they no longer can be called state-of-the-art airline lounges.
The new terminal will, however, introduce, according to information availed by a source close to the airline, the latest in premium passenger lounge quality, comprising dining areas, dedicated rest areas, shower facilities, a sauna and treatment rooms for massage, besides the “usual” amenities of comfortable arm chairs along with an array of reading materials and news channels.
The fight for premium passengers in Africa, largely dominated by the alliance affiliation of market leaders like Kenya Airways, Ethiopian Airlines, and South African Airways, the latter two being members of global market leader, Star Alliance, and the former a member of the KLM/Air France led SkyTeam, is according to some aviation experts won on the ground, as in-flight service levels and cabin layouts are all now very similar when it comes to the business class products offered.
“Lounges are becoming a key tool in the fight for market share in the premium segment of travel. Those passengers insist on state-of-the-art aircraft and great in-flight services, and we all offer that now - punctuality, superior service on check-in and when connecting through the airline hubs to onward flights - the amenities in the lounges.
“Ethiopian has taken this game to the next level when they opened the first section of their new lounge in Addis, and Kenya Airways is now almost compelled to level the playing field again. Because of the delays in completing Terminal Four it will be a bit longer until they can showcase their response to the move by their rivals, but when the new lounges are open, they will be the best available in Africa.
“The same will be the case when the next airport phase comes on line, which you call Project Greenfield. That new mega-terminal is going to be used by Kenya Airways and the alliance partners, maybe two thirds or even more of the projected space and capacity, and there the premium lounges will be even better. Kenya Airways transit traffic forms more and more the bulk of their business, and business class travelers are the ones every airline wants to attract and keep. If they are happy in the air with an airline’s product, they must be equally happy on the ground with the service they get. If there are shortcomings, they will eventually walk away and start using a rival airline. Competition is tough and such investments are as important as ordering new planes,” said a source from the Kenya Airways head office in Embakasi on condition of anonymity for not being an official spokesperson of the airline.
Recent efforts to obtain an authoritative response from the Kenya Airports Authority on the anticipated completion of the new Terminal Four, as well as reasons for the delays in opening this new facility, were unsuccessful as emails sent to the main mail portal went unanswered.

Tsogo Sun investing $100 million in Nigeria, Mozambique

Tsogo Sun Group announced on Wednesday that it will spend US$70 million buying a 75% stake in a Nigeria hotel and US$30 million expanding and renovating a Mozambique hotel.

Tsogo Sun, Bryanston, South Africa, is buying an approximate 75% stake for US$70 million in Ikoyi Hotels Ltd, the holding company of the 195-room Southern Sun Ikoyi, located in Lagos, Nigeria. The hotel has been managed by Tsogo Sun since its 2009 opening.

“This acquisition will cement our presence within the fast-growing Nigerian economy as well as provide a base from which to expand our operations in Nigeria,” said Marcel von Aulock, Tsogo Sun CEO.


Exterior of Southern Sun Maputo

In Mozambique, Tsogo Sun will also spend US$30 million to refurbish each existing guestroom and add 110 guestrooms to the 158-room Southern Sun Maputo.

“The Mozambican economy has shown encouraging signs of growth in recent years, and Tsogo Sun has benefitted from a strong trading performance at the Southern Sun Maputo,” Von Aulock said.

Qatar Airways’ Al Baker talks expansion plans in Chicago

In This Photo: Akbar Al Baker, Bart Vos, Lisa Markovic

Qatar Airways has marked another route milestone with the official launch of scheduled passenger flights to Chicago – its fifth North American destination.

Initially starting as a thrice-weekly service, the Doha-based airline will enhance capacity on the non-stop Chicago route to a daily operation from June 15th.

The addition of Chicago takes the airline’s global network to 126 diverse destinations spanning six continents, covering a wide range of destinations across Europe, Middle East, Africa, Asia Pacific, North America and South America.

Following the inaugural flight and airport ceremony at Chicago O’Hare International Airport, Qatar Airways chief executive Akbar Al Baker said: “We are looking forward to connecting the Midwest to the Middle East and beyond.

“With the Chicago route going daily from June 15th, and our presence here for more than two years through dedicated freighter services, it clearly demonstrates Qatar Airways’ commitment to this key city.

“The economic benefits will extend to key regional industries as well – engineering, education, and commodities trading in particular.

“Many travellers and businesses will benefit from additional access to and from the Middle East.”

He added:  “We anticipate a large influx of travellers not just from the energy community, but also from construction, the arts, finance and technology to name a few.

“Qatar Airways has been voted the best airline for two years running and we are eager to introduce this city to our award-winning business, actively engaging with local leaders and deserving community projects, strengthening relationships and the bond between Chicago and Doha.”

The United States remains a focal point for the airline, with Al Baker hinting at the possibility of additional routes within the country over the next few years.

He said the airline launched its North American operations in the summer of 2007 with flights to New York and Washington DC, followed by Houston, Montreal and now, Chicago with a total of 27 scheduled flights each week to five gateways across the region.

He spoke of two key developments this year that will further raise the carrier’s profile in the United States – a new code share agreement started with American Airlines will strengthen Qatar Airways’ position in the United States, in particular Chicago, one of its US partner’s hubs, together with membership of the oneworld global airline alliance.

“With the new American Airlines code share, we are able to connect more passengers with seamless access through Chicago.

“And later this year, we hope to officially become a member of the oneworld alliance that will provide Qatar Airways with a stronger network around the world, including the vitally important US market.”

Dubai International confirmed as leading A380 hub

Dubai International, the fastest growing airport in 2012 according to OAG statistics and the second busiest airport for international passenger traffic according to Airports Council International data, can now claim the title as the world’s leading hub for A380 operations according to published airline industry flight schedule data for 2012.

Published schedule data for 2012 shows the airport had 7,259 A380 scheduled flights to 28 destinations, with all but 88 of those flights scheduled by Emirates airline, the world’s biggest operator of the double-decker aircraft. Taking second spot during 2012 with 6,653 A380 scheduled operations to 19 destinations was Singapore Changi. London Heathrow holds third position with 3,697 flights to six destinations followed by Frankfurt with 3,071 A380 flights to 12 destinations and Sydney with 2,697 flights to eight destinations.

“The opening of Concourse A earlier this year was a US$ 3 billion validation of our intention to be the world’s premiere A380 hub,” said Paul Griffiths, CEO of Dubai Airports. “This new facility is purpose built for the aircraft with two-tiered gates facilitating boarding directly from the first and business class lounges.”

Rounding out the top ten during 2012 were Paris Charles de Gaulle (2,613 scheduled flights to 11 destinations), Hong Kong International (2,145 scheduled flights to nine destinations), Los Angeles (2,048 scheduled flights to seven destinations), New York JFK (2,004 scheduled flights to six destinations) and Melbourne (1,710 scheduled flights to seven destinations).

Fleet size and network structure had a direct bearing on the carrier contributions to A380 scheduled operations in international hub airports. Although home carriers Lufthansa, Qantas, Singapore Airlines, Air France/KLM and Emirates operate the lion’s share of super jumbo scheduled flights in their home markets, that was not the case for London Heathrow (Qantas), Hong Kong (Emirates), New York JFK and Los Angeles (Singapore Airlines).

“Based on Emirates’ order book, the new Qantas A380 operation and our $7.8 billion expansion plan, Dubai International is well placed to continue to hold the top position for A380 operations in 2013 and beyond,” added Griffiths.

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Etihad Airways Breaks Passenger And Cargo Records In Q1

Abu Dhabi-based Etihad Airways announced that it recorded its strongest ever passenger and cargo results for the first quarter in 10 years of its operations.

The airline posted Q1 2013 passenger revenues of $900 million as compared to$758 million in 2012, a raise of 19 percent; and cargo revenues of $193 million against$165 million in 2012, a raise of 17 percent.Passenger numbers in Q1 2013 also grew by18 percent.

Revenue from code-share and equity partners jumped by 34 percent in the first three months of the year and represented 20 percent of total revenue in the quarter.

Etihad Airways’ equity alliance comprises Air Berlin, Air Seychelles, Virgin Australia, and Aer Lingus. Each airline announced profitable results during the first quarter of 2013, which demonstrates the achievement of this new alliance model for all the member airlines.

In February 2013, Etihad Airways announced a $42 million profit for 2012 with revenues of $4.8 billion and passenger numbers breaking 10 million for the first time.

Seven major achievements for Etihad Airways during Q1 2013

“Big Switch” to new SabreSonic passenger sales system, website, and check-in system

Launch of daily flights to Washington D.C., on 31 March 2013 and the opening of the new premium lounge at Dulles International Airport

Announcement of daily flights to Amsterdam from 15 May 2013

Opening of $8 million first class and business class lounge in Paris

Launch of its critically acclaimed multi-million dollar television commercial campaign,“The World Is Our Home, You Are Our Guest”

Graduation of more than 200 staff from the airline’s Emiratisation program

Appointment of 34 Emirati employees to key roles across the airline’s global network.

ET Announces New Destinations to East Asia

Ethiopian Airlines announced expansion of its Asian network with the addition of three new destinations,Ho Chi Minh City, Manila and Seoul, as of June 18.

Ethiopian flights from Addis Ababa to Hong Kong will no longer need to stop in Bangkok; Hong Kong will now be served with a daily non-stop service from Addis Ababa instead of the current four-times-a-week flights routed through Bangkok, the airlines said.

The Addis Ababa-Bangkok-Kuala Lumpur service will increase from three to four weekly flights. Three of the daily flights to Bangkok will extend to Ho Chi Minh using a 767-300ER aircraft.

“We are proud to add Ho Chi Minh City, Manila, and Seoul to Ethiopian Airlines’ wide-reaching route network. The expansion to these three new gateways is a continuation of our efforts to achieve the goal of connecting Africa to the world, by adding multiple points in Asia and serving the air connectivity needs of the continent,” Tewolde Gebremariam, CEO of Ethiopian Airlines said.

The latest move will give the airline two gateways in Asia: Bangkok will serve mainland Southeast Asia and Hong Kong will serve East Asian cities.

Ethiopian Airlines in its Vision 2025 development strategy the airline focuses on Asia, Africa and South America.

Etihad announces strongest ever 1Q results

Etihad Airways, which this year celebrates its 10th anniversary of operations, has recorded its strongest ever passenger for a first quarter.

The Abu Dhabi-based airline posted Q1 2013 passenger revenues of US$900 million (2012: US$758 million), an increase of 19 per cent.

Passenger numbers in Q1 2013 grew by 18 per cent, rising from 2.3 million to a record 2.8 million.

The average seat factor was 80.5 per cent, four percentage points higher than the previous year (2012: 76.5 per cent), despite a 12 per cent increase in capacity. The seat factor is above IATA’s current global average of 77.1 per cent.

Etihad Cargo also had its strongest first quarter, with tonnage up 20 per cent from 85,152 to 101,776 tonnes.

James Hogan, President and Chief Executive Officer of Etihad Airways, said: “Our Q1 2013 results have again outstripped global trends, with our strongest ever first quarter results for passenger revenue.

“This performance demonstrates that Etihad Airways’ strategy of organic growth, wide-ranging partnerships, and strategic equity investments is delivering for us and our partners,” he said.

Revenue from codeshare and equity partners jumped by 34 per cent from US$136 million to US$182 million in the first three months of the year and represented 20 per cent of total revenue in the quarter.

“As well as increasing top-line revenue, our equity partnerships will improve bottom-line results, through cost savings delivered by operational synergies,” Mr Hogan said.

Etihad Airways’ equity alliance comprises airberlin, Air Seychelles, Virgin Australia, and Aer Lingus. Each airline announced profitable results during the first quarter of 2013, which demonstrates the success of this new alliance model for all the member airlines.

In February 2013, Etihad Airways announced a US$42 million profit for 2012 with revenues of US$4.8 billion and passenger numbers breaking 10 million for the first time.

Etihad Airways’ available seat kilometres (ASKs) rose 12 per cent in Q1 2013 to 15.9 billion, (2012: 14.3 billion) as the fleet grew to 73 passenger and cargo aircraft (2012: 66 aircraft). Revenue passenger kilometres (RPKs) rose 17 per cent to 12.9 billion (2012: 10.9 billion) sharply out performing capacity growth.

Running counter to industry trends, Etihad Cargo posted new highs in the first quarter. Volumes were up 20 per cent (on capacity growth of 19 per cent). This was driven by a strong performance in North East Asia, combined with good growth from the Indian Subcontinent from mid-February.

The new twice-weekly freighter operation from Houston to Abu Dhabi enhanced the results.

Etihad Cargo also took delivery of a new Boeing 777 Freighter, which was deployed on European and African routes during the quarter. A second Boeing 747 freighter entered the fleet at the end of March, taking the total cargo fleet to eight aircraft.

Strong charter cargo results also underpinned the capability and flexibility of the freighter operation.