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Challenges ahead for Brunei aviationJan 03, 2012 (The Brunei Times - McClatchy-Tribune Information Services via COMTEX) -- Bandar Seri Begawan (The Brunei Times/ANN) -- While the aviation industry in the Asia-Pacific recovers from a financially turbulent 2011, Brunei had an unforgettable year with numerous route cancellations and job cuts by its national carrier. The Association of Asia-Pacific Airlines (AAPA) in a recent statement said that airlines based in the region carried 15.7 million international passengers in November 2011, a four per cent increase compared to November 2010, maintaining the trend for 2011. Suspensions of services Royal Brunei Airlines (RBA) in June 2011 made a pivotal decision to suspend its services to Auckland, Brisbane, Perth, Ho Chih Minh City and to Kuching, a move which it deemed "necessary" to stay afloat. In July 2011, the national carrier released a statement saying that the route cuts were essential to "ensure the very survival" of the airline. The airline's financial performance on long haul has deteriorated to a point where the existing network is simply not sustainable in its current form, RBA said in a statement. "Change is unavoidable," RBA said, adding that they no longer want to "heavily subsidise" long-haul traffic. "RBA has been effectively providing subsidies to over 90 per cent of the traffic that doesn't contribute to Brunei or our economy," it said. Hence, RBA will be moving its focus to the regional market, a move it calls "a return to its roots". The airline will be focusing on regional traffic and maintaining only the long-haul routes which are consistent with the airline's long-term objectives. RBA's current furthest flights are to London via Dubai, and to Melbourne, Australia, followed by non-regional flights to Jeddah, Shanghai and Hong Kong. The route to Melbourne was only launched in March 29, 2011, which Deputy Chairman Dermot Mannion said will reflect Brunei's hospitality and kindness in its service. "We are very conscious of the responsibility that has been placed on our shoulders in launching this new service," he said before the inaugural flight. Mannion was put at the helm in February 12, 2011, following the departure of ex-Chief Executive Officer, Robert Yang. During Yang's short stint at RBA (he joined in July 2009), he saw to the delivery of RBA's new Boeing 777's and also announced the purchase of the 787 Dreamliner. RBA said that Yang left to pursue other interests. On December 15, 2011, more turmoil followed for RBA as it announced the retrenching of its employees. Although it did not reveal the actual number of jobs slashed, RBA said that as part of its restructuring, which took effect in October 2011, "a number of cabin crew members have been released from duty". With its plan put in motion, RBA on November 26, 2011, teamed up with Amadeus Altea Customer Management Solution to launch its new online booking system, aimed to increase efficiency in handling customers. The Altea suite will provide the airline with a next generation technology to make it more competitive, both regionally and globally, and will equip RBA with the tools needed to improve business efficiency and performance, that includes: reduced waiting time at airports and improved customer service. Deputy Chairman Mannion said during the launch that some of the new features include a more attractive and user-friendly interface, clear fare options, detailed booking display with price breakdown, a currency converter and a weather forecast to selected destinations. RBA is also looking at adding one more Airbus A320 to its short-haul fleet in March-May 2012, said a report on Aviationweek.com. The report also stated that RBA has no Airbus A320's on order, which means it is likely to lease one. A separate report also stated that RBA is looking to cut short its lease on the Boeing 777's, a logical move considering its plans to move away from long-haul subsidies. Low-cost carriers On January 3, 2011, AirAsia halted the Brunei to Kota Kinabalu (KK) route, making RBA the only provider for the sector. The low-cost carrier flew direct from KK to Brunei for less than a year before discontinuing the service based on commercial reasons. However, newcomer Cebu Pacific (CEB) said on October 3, 2011, that they will be increasing frequency from Brunei to Manila which starts on January 7, 2012. With this new addition, CEB has maximised its approval from the Bruneian authorities to service the route up to four times weekly. CEB, who celebrated its one-year anniversary of its entrance to Brunei in August 2011, flew 33,500 passengers on the Brunei-Manila route. New challengers Malaysia Airlines subsidy MASwings has announced its confirmation of flights to Brunei from KK and Kuching just last month. Chief Executive Officer Datuk Capt Mohd Nawawi in a Bernama report said that that it will begin on February 1, 2012, where they will operate the smaller ATR72-500 aircrafts which can seat about 70 passengers. MASwings is expected to fly from KK to Brunei twice a day, and from Kuching to Brunei three times weekly. Besides facing stiff competition from MASwings, RBA, in future, may also have to battle Sabah's new airline, established to serve Sabah and Sarawak. The Sabah government, on November 2011, proposed a new regional airline to be established to serve the regions needs. Bruneians will get a wider range of options with more flights coming in, as citizens will be able to tap onto the Malaysian Airlines network through MASwings' flight to Malaysia's third busiest airport, Kuching, and KK, who is fighting to be the BIMP-EAGA hub. ___ (c)2012 the Asia News Network (Hamburg, Germany) Visit the Asia News Network (Hamburg, Germany) at www.asianewsnet.net/home/ Distributed by MCT Information Services |