The Wrap: Amadeus partners with Air Bagan, to support airline’s international expansion
30/05/2013 by WiT

In the news: Air Bagan partners with Amadeus, MAS’  higher net loss for Q1 2013, Conrad Concierge app’s top requests

Amadeus partners with Air Bagan, to support airline’s international expansion

Amadeus and Air Bagan, one of Myanmar’s leading airlines, have signed a global distribution agreement, making Amadeus the first global distribution system (GDS) to automate the reservation of domestic flights in Myanmar.

Through this agreement Amadeus will support the international expansion of Air Bagan.

Travel agencies worldwide will have access to Air Bagan’s fares, inventory and schedules via the Amadeus system to support strong demand for travel to, and around, Myanmar, one of the world’s fastest growing travel destinations.

The agreement also make it possible for agencies, for the first time, to book and issue tickets for air travel within Myanmar.

Sao Thanda Noi, Air Bagan’s deputy managing director, said the agreement would allow the airline to broaden its reach via Amadeus’ extensive global network of travel agents. “They will have immediate and complete access to the airline’s content to provide comprehensive travel options to their customers.”

President of Amadeus Asia Pacific, David Brett , added that Amadeus is fully committed to supporting Air Bagan’s growth and to help develop the travel and tourism industry in Myanmar.

“The airline’s move towards GDS distribution, which gives it unparalleled access to travel agents globally, demonstrates the airline’s commitment to facilitating travel in this tourist hotspot.”

Myanmar has seen a 43% growth in tourist arrivals from January to September 2012. A recent independent survey commissioned by Amadeus, “Shaping the future of Asia Pacific travel – the big FOUR travel effects”, revealed that in an increasingly resource-constrained world markets like Myanmar, with large amounts of untapped resources, will become the next hotspot for travel especially for business.

MAS posts higher net loss of RM279mil in Q1 2013

Malaysia Airlines Systems Bhd (MAS) posted a higher net loss after tax of RM279 million (US$91 million) for the first quarter ended March 31, 2013 from a loss of RM172 milliom previously.

The airline attributed the wider loss to mainly an unrealised forex loss of RM21 million in Q1 2013 compared to a forex gain of RM200 million in the previous year. Higher financing costs for its fleet renewal programme also contributed to the overall net loss.

“The continued high jet fuel prices, added capacity in the market and increased competition put pressure on our yields. The business environment is tough, but Malaysia Airlines is now able to respond faster to changes in the market”, said MAS group chief executive officer Ahmad Jauhari Yahya in a statement.

Revenue, however, rose to RM3.55 billion in the same quarter, from RM3.11 billion registered in the previous corresponding period due to the increase in airline and cargo revenues.

The airline also registered a RM147 million positive cash balance from its operating activities in the first three months of this year, compared with a negative cash position of RM202 million in the previous corresponding period.

The group carried 3.6 million passengers in Q1, an improvement of 16% quarter-on-quarter (q-o-q). For the airline itself, passenger revenue was up 11% to RM2.47 billion.

MAS said passenger yield declined by 5% due to intense competition from other airlines

Ahmad Jauhari said operating statistics were strong and recording encouraging traction to build up passenger numbers and growth.

“These have enabled our group to generate a positive cash balance, and essentially stop the bleeding. However, we still have a lot of work to do to align costs to revenue, to increase productivity and efficiency, and improve yields.”

Looking ahead Ahmad Jauhari said the Asia Pacific region is expected to be the future growth centre of aviation demand, and MAS is well positioned to tap this growth through strengthening its footprint with increased frequencies to more business and leisure regional destinations.

MAS is also offering a wider international network with its membership of oneworld, which it joined on February 1, 2013.

 While it is still early days to quantify the benefits, the carrier saw interline revenue jump 40% during the period of February to March.

“We expect interline revenue to increase further as more guests get to know about Malaysia Airlines through oneworld. Joining the alliance is a good platform to widen our reach and brand”, added Ahmad Jauhari.

Wake-up calls among top requests on Conrad Concierge app

The top five requests among guests at Conrad Hotels & Resorts using its Conrad Concierge app are for room dining, wake-up calls, transportation arrangements, tips on local attractions and housekeeping requests.

According to global research conducted by Conrad, four of the top five markets using this app are in Asia Pacific – Tokyo and Singapore are tied in second place, Seoul (#3) and Hong Kong (#4). Conrad’s US properties in New York is the top user with Chicago in fifth place.

John Vanderslice, global head of luxury and lifestyle brands, Hilton Worldwide, said, “Guests today are constantly connected and come to expect life, business and pleasure to seamlessly intersect. Our research has shown that 77% of travellers value service when selecting a hotel and nearly 70% prefer hotels that can customize their experiences to reflect their personal needs.”

Conrad Concierge allows guests to request services and customise their stay onsite and even before they arrive – from arranging airport pickup or making appointment for a spa treatment – from either a smartphone or tablet. They can access the app in 22 locations worldwide and is available in 13 languages.

Since its launch in November last year the free app, for both Apple and Android mobile devices, has been downloaded more than 60,000 times, with approximately 10,000 views and transactions per month.

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