Ilham Hanif 59: 04 June

Tuesday, June 4, 2013

SkyTeam Enhances Customer Benefits Through 2014

Garuda Indonesia joining on track, 20th member will strengthen Southeast Asian network

CAPE TOWN, South Africa, June 3, 2013 /PRNewswire/ -- SkyTeam, the global airline alliance, is re-enforcing its focus on customer-based initiatives that ensure improved service offering whilst delivering more benefits for its membership throughout SkyTeam's global network.

"With our global network almost complete, our priority is now shifting to creating a seamless travel experience for our customers," said Michael Wisbrun , SkyTeam's managing director. "SkyTeam's key driver so far has been on gaining global presence, and now provides a network with access to the most relevant traffic flows worldwide. But the next stage of cooperation is about developing customer products and services that bring seamlessness to a new level."

Creating efficiency and seamlessnessWith more than 30 million passengers transferring among the members annually, closer cooperation between airlines and airports has been developed under the SkyTransfer initiative. Focus is on improving customer transfers from one member to another by developing new efficiencies, as well as transfer and service recovery standards, starting with SkyTeam's largest hubs. These include Amsterdam, Atlanta, Rome, Paris CDG, Mexico City, Seoul, Beijing, Guangzhou and Shanghai. It is estimated that this will lead to an average cost savings of about 15M Euros annually on transfer related costs.

Improved customer serviceSkyTeam launched its flagship customer-focused initiative, SkyPriority, in March 2012. Offering a series of premium airport services for Elite Plus, First and Business Class customers, SkyPriority has now been implemented throughout 75% of SkyTeam's global network and will be available at each of SkyTeam's 1,000 global destinations by the end of 2013. In addition, the program is being extended to include, amongst others, more dedicated security lanes, and dedicated SkyPriority call centres to provide essential support to high value customers. Other additions include dedicated SkyPriority baggage desks at arrival halls.

Delivering synergiesWith its global network almost complete, SkyTeam is working to fast-track initiatives that augment benefits offered to members. These include SkyPort, which is focused on increasing co-location of airport facilities to ease the customer experience while reducing costs. SkyTeam will open 3 more co-branded lounges with Istanbul being opened this month;Sydney before the end of 2013 and Beijing in early 2014. The new lounges will reduce combined costs by approximately 10% at these airports.

To get the most out of travelling with SkyTeam, travel products have been developed and upgraded to meet customer needs. Booking facilities will be added to the online Round the World planning application before year's end. The recently enhanced Global Meetings product offers more convenience and more attractive pricing, through a new online booking tool for a minimum of 50 delegates featuring a wide range of fare discounts off published fares.

"Every initiative SkyTeam develops has benefits both for its members and most importantly for the customers," continued Wisbrun. "It's not about simply being the biggest in scale, we must evolve and facilitate in the development and implementation of such customer focused initiatives. SkyTeam is dedicated to taking seamlessness to the next level and demonstrating we are the alliance that cares more about the needs of our customers," notes Wisbrun.

Addition of Garuda strengthens Southeast Asian network SkyTeam confirms that it will welcome Garuda Indonesia as its 20^th member in March, 2014. The national airline of Indonesia, Garuda will be SkyTeam's second member from Southeast Asia.

"Garuda Indonesia's domestic and growing international network will give SkyTeam a footprint in Indonesia, as we strengthen our presence in the Southeast Asia region," said Michael Wisbrun . "Garuda has worked hard to meet the membership criteria required by SkyTeam, including implementing a new IT platform, and we look forward to welcoming the airline in March next year."

About SkyTeamSkyTeam is a global airline alliance providing customers from member airlines access to an extensive global network with more destinations, more frequencies and more connectivity. Passengers can earn and redeem Frequent Flyer Miles throughout the SkyTeam network. SkyTeam member airlines offer customers access to 525 lounges worldwide. The nineteen members are: Aeroflot, Aerolíneas Argentinas, Aeroméxico, Air Europa, Air France, Alitalia, China Airlines, China Eastern , China Southern, Czech Airlines, Delta Air Lines, Kenya Airways, KLM Royal Dutch Airlines, Korean Air, Middle East Airlines, Saudia, TAROM, Vietnam Airlines and Xiamen Airlines. SkyTeam offers its 552 million annual customers over 15,000 daily flights to 1,000 destinations in 187 countries.
www.skyteam.com / www.facebook.com/skyteam / www.youtube.com/user/skyteam

SOURCE SkyTeam

UPDATE 2-Airbus, Boeing battle over long-haul jets heats up

* Lufthansa, JAL, Malaysia among those eyeing widebody jets

* Sets stage for slew of orders at Paris Airshow

* IATA raises 2013 profit forecast for airline industry

By Siva Govindasamy

CAPE TOWN, June 3 (Reuters) - The battle between Airbus and Boeingover their next-generation of long-haul jets is heating up, with a string of major airlines flagging plans on Monday to place multi-billion dollar orders.

Germany's Lufthansa, Japan Airlines and Malaysia Airlines were among carriers at the International Air Transport Association's (IATA) annual general meeting to say they were sizing up Airbus's new A350 widebody jets and Boeing's rival 787 Dreamliner and revamped 777 models.

Airbus and Boeing compete for the lion's share of a jet market estimated at $100 billion a year. While recent years have seen them battling over smaller Airbus A320 and Boeing 737 aircraft, interest in larger fuel-efficient planes is on the rise, suggesting airlines are betting on an upturn in the global economy and therefore their premium and long-haul markets.

IATA, the airline trade body, on Monday hiked its 2013 industry profit forecast by 20 percent to $12.7 billion, encouraged by cost cutting and lower oil prices.

Airline executives at the IATA meeting in Cape Town, South Africa, said the stage was set for a slew of orders at the Paris Airshow later this month, and a sustained campaign by Europe's Airbus and U.S. rival Boeing to win more customers.

The executives told Reuters they had been receiving briefings on Boeing's proposed 787-10X and the 777X, the latest variants of both aircraft.

Industry sources say the 787-10X could be launched in Paris and the 777X later this year, but caution this is dependent on delicate negotiations with potential buyers and production plans. A launch of the stretched 787-10X would imply an increase in Boeing's plans to make 10 Dreamliners a month from end-2013.

Airbus, meanwhile, is pushing the A350-1000, the largest of three variants, as an alternative to the popular 777-300ER and has gained traction over the last year with several high profile buyers such as Cathay Pacific.

POWER STRUGGLE

Some of the bigger potential customers in coming months include Lufthansa for around 50 aircraft,Japan Airlines (JAL) for 40 jets, and Malaysia Airlines for around 30 aircraft.

Others include Japan's All Nippon Airways (ANA), Garuda Indonesia, and Ethiopian Airlines. All are keen to assess both Airbus and Boeing aircraft for their requirements, worth tens of billions of dollars at list prices.

Among the most closely watched competitions are those held by ANA and JAL, which are considering orders for A350s.

That could mark a seismic shift in the airline world as JAL operates only Boeing aircraft and ANA, which has Airbus A320 narrowbody aircraft, operates only Boeing jets on its medium and long-haul services. Amid tough competition, analysts say Japanese airlines could pick up the Airbus aircraft.

Both airlines, however, will talk to both aircraft suppliers as they want to get the best possible deal. ANA, for example, says that it will assess the proposed 777X as well as the A350 to replace its older 777s.

Strong demand for the 787s and A350s and a large backlog mean Boeing and Airbus have sold out early delivery slots. Some airlines like Garuda Indonesia are potentially getting their aircraft from leasing companies instead.

"The slots are tight but we need the aircraft in the 2016-2017 timeframe," said Garuda's chief executive Emirsyah Satar. "Leasing companies can be the answer for us as they can supply the aircraft when we need them."

JAL says studying Airbus, Boeing jets to replace 777s

(Reuters) - Japan Airlines wants to start replacing around 40 of its Boeing 777 aircraft from 2019, chairman Masaru Onishi said.

The airline is studying the Airbus A350-1000, as well as Boeing's proposed 787-10X and 777-9X, he told reporters.

Japan's flag carrier has been a loyal Boeing customer and is one of the few airlines in the world not to operate any Airbus aircraft. It has been looking to diversify its fleet purchases between the two leading aircraft manufacturers.

Onishi said the airline can make a decision "soon" if it can negotiate a right deal, but is not in a hurry.

The comments come after rival All Nippon Airways also hinted at a possible Airbus purchase in an interview with Reuters on the sidelines of an airlines conference.

Malaysia Airlines considers Airbus A350 or Boeing 787

(Reuters) - Malaysian Airline System Bhd is studying both the Airbus A350 and Boeing 787 as potential replacements for its existing medium and long-haul fleet of aircraft, an airline executive said on Monday.

Malaysia Airlines operates a total of about 30 Boeing Co 777s and Airbus A330s, and it eventually wants to fly only one type of aircraft in this segment to simplify operations and reduce costs, Germal Singh, the airline's senior vice president of government and international affairs, told reporters on the sidelines of an airline conference in Capetown.

It may begin to replace these aircraft from around 2018, he added.

UPDATE 1-Southeast Asian airlines eye Airbus A350s, Boeing 787s

Garuda Indonesia Tbk is also considering those two planes to augment its fleet of Airbus A330s that it uses on routes to other Asian countries.

Garuda Indonesia is looking to buy A350s or 787s to meet its requirements beyond 2016, its chief executive, Emirsyah Satar, said at the same conference. The airline may turn to aircraft leasing companies to obtain the planes, he added.

Airbus looks at output increase for A320neo

(Reuters) - Airbus is studying a possible increase in production of its medium-haul A320 aircraft once a planned revamped model enters the market but the immediate priority is to ensure a smooth entry to service, sales chief John Leahy said.

Airbus currently produces 42 of the existing model each month. It plans in 2015 to introduce a fuel-saving version with new engines that has so far outsold a comparable Boeing jet.

In an interview, Leahy reiterated Airbus hoped to maintain 60 percent of the crucial market for the industry's most popular jets, something Boeing is expected to fight hard to resist.

Asked whether Airbus would increase production to reflect its current sales advantage, Leahy said, "We are studying that," but stressed such an increase would be years away. Output of the current-generation A320 will remain stable, he added.

Airbus may announce an order for the A380 superjumbo among several deals to be announced at the June 17-23 Paris air show, Leahy told Reuters on the sidelines of an IATA airlines summit.

UPDATE 1-Lufthansa open to future co-operation with Gulf airline

(Reuters) - The head of Germany's Lufthansa eased open the door to rival Gulf carriers on Monday, saying he would not rule out future commercial ties with one of the region's heavyweight airlines.

Lufthansa, a leading member of the Star Alliance grouping of airlines, has criticized the market power of fast-growing Gulf airlines and is locked in a dispute with Dubai's Emirates over the latter's bid to gain more access to German airports.

After a period of rapid standalone growth, Gulf airlines have started forging links with carriers including Lufthansa's two main European network rivals.

Qatar Airways plans to join oneworld, which includes British Airways, Abu Dhabi's Etihad has forged several codeshare agreements with Skyteam member Air France and Emirates has agreed to co-operate with Australia's Qantas.

"It was interesting for us, and has also drawn a lot of attention, that the philosophies of the Gulf carriers seem to have been modified," Lufthansa Chief Executive Christoph Franz told Reuters.

"We are observing and at the end of the day, if there are future circumstances in which Lufthansa could benefit from any kind of relationship, then why not -- but there is no rush."

He was speaking as airlines meeting in Cape Town put the finishing touches to an agreement to co-operate on reducing emissions, in a deal backed by European and Gulf carriers.

In an interview, Franz also said Lufthansa is in "advanced discussions" with Airbus and Boeing to buy around 50 long-haul jets.

The German airline is evaluating Boeing's 777 and 787 families, including a new stretched version of the 787 Dreamliner, and the Airbus A350, he said.

He predicted a decision in the second half of the year, effectively ruling out Lufthansa emerging as a launch customer for the latest 787 model at the June 17-23 Paris air show.