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Old November 23rd, 2004, 05:31 AM   #561
ignoramus
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Quote:
Originally Posted by huaiwei
Yeah...I dunno why I am more supportive of them. Maybe its coz they are the only one not supported by some big company, and they are the pioneers really, without which I doubt the next 2 companies would have bothered!
1. Valuair flies to Hong Kong.
2. Valuair is not too cheap a.k.a. true no frills and not overly luxurious like SIA.
3. Valuair's logo and name sounds and looks better. Even the planes looks better.
4. Valuair's staff are hip and cool.
5. Valuair won't use the budget terminal.
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Old November 23rd, 2004, 05:36 AM   #562
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Quote:
Originally Posted by ignoramus
1. Valuair flies to Hong Kong.
2. Valuair is not too cheap a.k.a. true no frills and not overly luxurious like SIA.
3. Valuair's logo and name sounds and looks better. Even the planes looks better.
4. Valuair's staff are hip and cool.
5. Valuair won't use the budget terminal.
Valuair is keeping an open option on the budget terminal.........it's not sure whether they'll use it at the end of the day......

As for flights to HK, I find those offers by full service carriers more attractive......I think Valuair might have to offer their fares at a lower price sometimes.........
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Old November 23rd, 2004, 05:37 AM   #563
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Quote:
Originally Posted by babystan03
Valuair is keeping an open option on the budget terminal.........it's not sure whether they'll use it at the end of the day......

As for flights to HK, I find those offers by full service carriers more attractive......I think Valuair might have to offer their fares at a lower price sometimes.........
How much do full service carriers charge? enlighten me.

Valuair at its lowest I saw was S$228.
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Old November 23rd, 2004, 05:45 AM   #564
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Quote:
Originally Posted by ignoramus
How much do full service carriers charge? enlighten me.

Valuair at its lowest I saw was S$228.
Lets see.......

Cathay Pacific - S$288
SIA - S$333 (need 4 person to travel ; S$433 if it's 2 person)
China Airlines - S$368
Garuda - S$388
United - S$358 (2 person to travel)

Terms and condition apply.
http://www.airfares.com.sg/airfares/cities/city_hk.htm
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Old November 23rd, 2004, 05:59 AM   #565
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^ God knows - but they manage to fill the planes. Both Ryanair and EasyJet have unbelievably high loading ratios (ie percentage bums on seats) and Ryanair in particular is very profitable. They fill them by offering seriously low prices and then, I suppose, they have the chance to sell them food and gifts as well. Ryanair and Easyjet have an extremely efficient model. Europe is also ideal for budget airlines having a large, wealthy, and densely settled population. London is also the most visited city in the world and Europe's premier business/financial centre. Londoners also travel frequently to other parts of Europe for business and leisure. EasyJet has most duplication amongst the three London airports used by budget airlines but only on the most popular routes.
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Old November 23rd, 2004, 06:16 AM   #566
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RYANAIR - $240M INVESTMENT IN NEW LIVERPOOL BASE



9 NEW EUROPEAN ROUTES FROM LIVERPOOL
TO FRANCE - IRELAND – ITALY - SPAIN


Ryanair today (22nd Nov 2004) announced its 12th European base at Liverpool’s John Lennon Airport with an investment of $240M in 4 new Boeing 737-800 series aircraft and 9 NEW European routes from Liverpool to:

NEW ROUTES:
BARCELONA (REUS),LIMOGES, PISA, CORK, MURCIA, SHANNON
GRANADA, NIMES & VENICE

CURRENT ROUTES:
BARCELONA (GIRONA), DUBLIN, MILAN & ROME

Ryanair, which began services at Liverpool in 1988, already operates 14 daily international flights from Liverpool to Barcelona (Girona), Dublin, Milan and Rome. Over the next 12 months Ryanair will carry 1.4M passengers to/from Liverpool, saving consumers over €30M on high fares charged by Easyjet. This new base announcement and massive increase in routes, destinations and passenger numbers is also good news for the local economy too, because it will create and sustain over 1000 new jobs in the Liverpool area.

Also today, Ryanair announced new daily routes from Blackpool to Barcelona and Pisa to Barcelona. Ryanair already operates two successful routes from Blackpool to Dublin and London Stansted, and 5 daily routes from Pisa to Brussels, Glasgow, Hamburg, Frankfurt Hahn and London Stansted.

Announcing Ryanair’s 12th European base in Liverpool today, Ryanair’s CEO Michael O’Leary said:

“Consumers from Merseyside using Liverpool’s John Lennon Airport now have a real low fares airline offering fares that are almost half the price of Easyjet, serving 13 destinations throughout Europe and delivering unbeatable punctuality, and that’s Ryanair.

Our message to Easyjet is simple - You can’t match Ryanair’s low fares and you can’t match Ryanair’s punctuality and customer service either.

These new routes from Liverpool, with fares from an incredible £2.99 (excl. taxes) are available for booking right now, at www.ryanair.com, Europe’s biggest travel website.”

Neil Pakey, Managing Director of Liverpool John Lennon Airport commented:

"Ryanair's committment is a clear' coming of age' for Liverpool John Lennon Airport bringing an additional 1 million passengers through the Airport next year. Liverpool is clearly seen by the airline industry as a gateway airport for the North of England and in particular for the low cost airline market. Ryanair's decision to base four aircraft here will bring significant benefits for the North West including around 1000 jobs being created in the region's economy.

In addition, Liverpool's Capital of Culture status is further enhanced as more Europeans will be able to visit Merseyside via convenient direct flights and importantly with low fares."
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Old November 23rd, 2004, 06:27 AM   #567
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Quote:
Originally Posted by Monkey
^ God knows - but they manage to fill the planes. Both Ryanair and EasyJet have unbelievably high loading ratios (ie percentage bums on seats) and Ryanair in particular is very profitable. They fill them by offering seriously low prices and then, I suppose, they have the chance to sell them food and gifts as well. Ryanair and Easyjet have an extremely efficient model. Europe is also ideal for budget airlines having a large, wealthy, and densely settled population. London is also the most visited city in the world and Europe's premier business/financial centre. Londoners also travel frequently to other parts of Europe for business and leisure. EasyJet has most duplication amongst the three London airports used by budget airlines but only on the most popular routes.
Hmm...and the most amazing thing is that they seem to be practically basing a super huge chunk of their business on the london sector alone, especially for easyair? Is the market so lucrative, that they dont need to start establishing mutiple hubs all over europe, like wat ryanair seems to be slowly doing?
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Old November 23rd, 2004, 06:52 AM   #568
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Quote:
Originally Posted by babystan03
Lets see.......

Cathay Pacific - S$288
SIA - S$333 (need 4 person to travel ; S$433 if it's 2 person)
China Airlines - S$368
Garuda - S$388
United - S$358 (2 person to travel)

Terms and condition apply.
http://www.airfares.com.sg/airfares/cities/city_hk.htm
Since I am broke now I will choose Valuair. But I would take SIA or Cathay in any other normal case.
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Old November 23rd, 2004, 06:53 AM   #569
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crazy. pay 368 for china airlines. crazy lor. china airlines should charge 228.
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Old November 23rd, 2004, 08:20 AM   #570
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OUTLOOK easyJet FY focus on yields, Icelandair
23 November 2004

LONDON (AFX) - Investors will focus on any change to the outlook for yields (average fare levels) when easyJet PLC, Europe's second-largest no-frills airline, publishes full year results today.

The Luton-based carrier cautioned in September that it expected yields to remain under pressure during 2005. They declined some 7 pct in the July-September quarter.

'We expect the group to issue a relatively cautious trading statement that fully reflects the current tough trading environment,' NCB Stockbrokers told clients.

'In light of Ryanair's post results comments (on Nov 2 it forecast yield decline of 5-10 in its second half to end-March 2005), we would expect the yield outlook to be the most important focus point of the post results briefing,' it noted.

'While the group does have some fuel hedges in place, we feel that fuel is likely to be less of an issue as we expect the group to fully echo Ryanair's comments about fares being somewhat stronger than initially expected as they are rising to compensate for [the lack of] fuel levies.'

The other major area of interest on Tuesday will be management's latest thoughts on Icelandair, which last month acquired a 10.1 pct stake in easyJet, sparking bid speculation.

In September easyJet noted 'continuing volatility in fuel prices' but raised its guidance for pretax profit for the year to end-Sept to 'in excess of 60 mln stg' -- at least 16 pct higher than the previous year's 52 mln stg -- after enjoying improved trading during its final quarter. The airline has issued two profit warnings this year, the last in June.

easyJet carried 24.3 mln passengers during the year, up 20 pct, and saw its load factor -- passengers as a proportion of the number of seats available -- edge up 0.4 percentage points to 84.5 pct. Revenue increased 17 pct to 1.09 bln stg.

The airline reckons actions to improve its competitive position are paying off. In the year to end-Sept it made changes to around 10 pct of its network.

Following a review of its capacity growth programme easyJet will increase the number of aircraft in its fleet, which currently stands at 93, by approximately 16 pct in 2005, less than the 24 pct rise previously planned. Further details on this as well as more cost cutting initiatives are expected today.
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Old November 23rd, 2004, 10:48 AM   #571
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Quote:
Originally Posted by huaiwei
Hmm...and the most amazing thing is that they seem to be practically basing a super huge chunk of their business on the london sector alone, especially for easyair? Is the market so lucrative, that they dont need to start establishing mutiple hubs all over europe, like wat ryanair seems to be slowly doing?
EasyJet does have hubs all over Europe - look at their website. Note my diagrams are "The London Perspective".
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Old November 23rd, 2004, 11:22 AM   #572
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Quote:
Originally Posted by Monkey
EasyJet does have hubs all over Europe - look at their website. Note my diagrams are "The London Perspective".
Hmm...and that's basically Geneva, Schiphol, Berlin, Dortmund for non-UK bases, as officially designated by the airline, of which only Geneva and Berlin look more well established in terms of connectivity for now (Nice, for example, have more connections then both of these bases, but it isnt considered a base by the airline)?

Honestly it didnt quite meet my expectations when I made that point earlier, but nvm....tihs is for anyday to discuss over...
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Old November 23rd, 2004, 02:54 PM   #573
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Quote:
Originally Posted by huaiwei
Hmm...and that's basically Geneva, Schiphol, Berlin, Dortmund for non-UK bases, as officially designated by the airline, of which only Geneva and Berlin look more well established in terms of connectivity for now (Nice, for example, have more connections then both of these bases, but it isnt considered a base by the airline)?

Honestly it didnt quite meet my expectations when I made that point earlier, but nvm....tihs is for anyday to discuss over...
They do have other bases but those other cities are neither business nor tourism hubs to rival London. They also have much smaller metro populations. London's metro population is 18 million and they have some of the highest incomes in the Europe. Paris is the only city that could provide even remotely comparable hub but the French government has deliberately restricted EasyJet's expansion to protect its preferred "national champion", Air France. I think Rome, Barcelona, Madrid, Nice, Malaga, Palma etc, despite a lot of connections, are not counted as bases because the traffic is largely inbound.
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Old November 23rd, 2004, 03:24 PM   #574
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EasyJet to enter Irish market for first time
23 November 2004
Airline Industry Information

UK low cost airline easyJet is set to step into its biggest rival Ryanair's backyard after announcing its first routes from London Gatwick to the Republic of Ireland.

EasyJet will operate flights from Gatwick to Shannon, Cork and Knock. This is the first time that the airlines will compete on the same routes. Both Ryanair and easyJet have avoided any head-to-head rivalry but with both rapidly expanding their European networks direct competition was inevitable.

The move into the Republic of Ireland by easyJet comes despite its plans to cut capacity in 2005 after it warned that the continuing pressure to lower fares will harm revenue. Ryanair itself is about to go head-to-head with easyJet on routes from London Stansted to Valencia and Almera in Spain and is to expand its operations at easyJet's base at Luton Airport, reports The Financial Times.
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Old November 23rd, 2004, 04:34 PM   #575
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Time is GMT + 8 hours
Posted: 23 November 2004 1910 hrs

Budget hotels look to low-cost carriers for more business
By Thomas Cho, Channel NewsAsia

SINGAPORE : With the recent spurt of low-cost carriers in the region, budget hotels in Singapore are hoping to see an upturn in their fortunes.

In the past few years, some budget hotels have gone under after failing to meet their mortgage payments.

But property analysts say the number has been dropping.

Only 3 budget hotels were transacted through mortgage sales this year with another 2 up for auction next month.

This is down from 11 in 2002.

[email protected] Emily is a newcomer to the budget hotel scene.

But it's already tied up with budget carriers to bring in the business.

Suhaimi Rafdi, Vice President, Leisure and Entertainment, Cathay Organisation, said: "With more budget airlines travelling into the country like Singapore, we would expect a surge in increase in travel by budget travellers because they are likely to be our target market where the company is looking at to directing the target spenders as well."

The hotel has enjoyed an occupancy rate of almost 70% since it opened in April.

Shaun Poh, Director, DTZ Debenham Tie Leung(SEA), Pte Ltd, said: "With a lot of budget airlines coming up, so you should pair them up with budget travellers and budget hotels. So, in that case, you see a demand for such budget hotels coming into the industry right now."

However, not all budget hotels in Singapore are seeing a sharp increase in occupancy numbers especially those in Geylang where there are plenty of budget hotels.

Hotel 81 alone has 9 outlets there and the Fragrance Group 5.

As a result of intense competition in that area, some stand-alone hotels there are looking for buyers.

But auctioneers say - they are seeing demand for these properties.

Mr Poh said: "During the peak, per room could go for 130 to 150k per room. But in these days, if you have a budget about 70 to 75k per room, you could get a decent budget hotels in Geylang. So, with that, you see the value of budget hotels have gone down about half compared to last time. That makes budget hotels very attractive in Geylang areas."

There are about 110 budget hotels in Singapore - and they supply just about 15 percent of the total hotel rooms here.

And analysts say there's still room for them to grow. - CNA

Copyright © 2004 MCN International Pte Ltd
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Old November 23rd, 2004, 09:58 PM   #576
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^ They must be crazy doing that!! Maybe they just did it to piss Michael O'Leary off....
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Old November 24th, 2004, 12:36 AM   #577
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Easyjet rises to twin challenges
http://news.bbc.co.uk/1/hi/business/4034341.stm



Easyjet predicts a good 2005

Easyjet has thanked the "resilience" of its business model for a 21% rise in annual profits, despite the pressure of high oil prices and tough competition.

The low-cost carrier saw its pre-tax profit increase to £62.2m ($115m) for the 12 months to the end of September, on revenues up 17% to £1.09bn.

Passenger numbers were up one-fifth to 24.4 million for the Luton-based firm.

Easyjet warned that the festive period would be "challenging", but said it was confident of ongoing growth in 2005.

"These are creditable results in challenging market conditions which have affected all airlines," said Easyjet chief executive Ray Webster.

"Both financially and operationally we are stronger than we have ever been before, and despite the high fuel price and degree of competition in the market we are well placed for the coming year."

Easyjet's shares were up 3.5p or 1.9% to 186.75 in early Tuesday trading.


Cost control

The firm, which last month saw Iceland's national carrier Icelandair buy an 10.1% stake, saw its load factor - the percentage by which its planes are full - increase to 84.5% from 84.1%.

Easyjet said that the twin pressures of high oil prices and tough competition from other budget airline rivals such as Ryanair were "beyond its control".

Total revenue per passenger fell 2% to £44.82 due to increased competition, but the increases in passenger numbers and load factors overcame this decline.

Easyjet said it was successfully offsetting negative factors by its strong focus on keeping operational costs as low as possible.

"There are good opportunities for us in 2005," added Mr Webster.

"We expect to grow our sales through further enhancing our network and growing ancillary revenues."


Cautious expansion

During 2004, the company expanded to 92 aircraft, 153 routes and 44 airports.

However the firm announced in September it would cut back its fleet expansion plans to 16% next year, instead of 24% as previously planned.

Easyjet's profits came in just ahead of market expectations.

Mr Webster said he had "no idea" if Icelandair plans to increase its stake in the airline.

"I have no idea, (but) we're delighted that at least someone recognises the underlying value of the airline."

Mike Powell, aviation analyst at Dresdner Kleinwort Wasserstein, said Easyjet's results were in line with its expectations.

"Overall our forecast remains unchanged and we are sticking with a hold rating for Easyjet's shares," said Mr Powell.

"A lot hangs on what happens with the Icelandair situation and whether it makes a takeover bid for Easyjet. We don't however think this will happen."
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Old November 24th, 2004, 12:46 AM   #578
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This story was printed from TODAYonline

Tiger Airways chief sues SPH for libel Suit charges that a BT report suggested he was 'incompetent'

Wednesday • November 24, 2004

THE outgoing head of Tiger Airways is suing Singapore Press Holdings for libel over a report suggesting he was fired for incompetence, court documents showed yesterday.

Lawyers acting for Tiger chief executive Patrick Gan filed a lawsuit against the company, citing an article that appeared in The Business Times last month.

The writ — a copy of which was faxed on Tuesday to The Associated Press by Mr Gan's lawyers — also names BT writer Ven Sreenivasan as a defendant.

According to the lawsuit, the article reported on allegedly strained relations between Mr Gan and the board at Tiger Airways — a no-frills subsidiary of flag-carrier Singapore Airlines that launched operations in September.

The story cited anonymous "company insiders" to back its claims and reported that Mr Gan was poised to leave the airline after being sacked by the board. The article implied that Mr Gan was an "incompetent" chief executive, the lawsuit said.

Mr Gan has "been gravely injured in his character and reputation, has suffered considerable distress and embarrassment, and has suffered damages" because of the story, the writ said.

Mr Gan's lawyers wrote to the BT's editor asking for an apology and damages, but did not receive a reply.

Tiger announced Mr Gan's resignation on Oct 22, saying he had told the board in July that he intended to leave his post.

"Patrick has done a good job in the process leading to the launch of operations last month," Tiger Airways chairman Bill Franke said in a statement at the time. The board accepted Mr Gan's decision to leave "with regret", it added.

A spokesman for Tiger Airways said yesterday that Mr Gan was serving out his notice at the company and would remain as chief executive until his replacement took the reins.

"We do not comment on pending legal suits," a spokesman for SPH said. — AP

Copyright MediaCorp Press Ltd. All rights reserved.
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Old November 24th, 2004, 01:34 PM   #579
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JUNE 21, 2004

ASIAN BUSINESS

Will Asia's Low-Cost Airlines Fly High?
Demand may offset the hurdles faced by the region's new budget carriers

Zuwailiah Jamaludin had been wanting to take her mother and three children on a vacation in Thailand for years, but she just couldn't afford to get there. In early June, though, she and the family spent a week sightseeing in Bangkok and the northern city of Chiang Mai. Why now? Air Asia, the pioneer of no-frills flights in the region, was offering the 2,400-kilometer flight from Jamaludin's hometown of Johor Bahru, Malaysia, for just $45 each way. "We're on a budget," she says. "When Air Asia came along, we didn't want to miss the chance."

Much of Southeast Asia soon will have the same chance. Since Kuala Lumpur-based Air Asia took to the skies in November, 2002, a half-dozen low-cost carriers have opened for business or plan to do so by yearend. One-Two-Go and Thai AirAsia, an affiliate of the Malaysian carrier, have launched in Thailand, Valuair is flying out of Singapore, and Lion Air offers daily service from Jakarta to Singapore, Kuala Lumpur, and far-flung destinations in Indonesia. In response, big carriers, including Singapore Airlines, Thai Airways International, and Australia's Qantas Airways, are setting up low-cost subsidiaries. The boom is being driven by the governments of Malaysia, Thailand, Indonesia, and Singapore, which are granting landing rights to the carriers in hopes of boosting tourism and business travel. The new carriers "will make the market more dynamic," says Air Asia founder Tony Fernandes.

`FINGERS CROSSED'
But the rise of Southeast Asia budget carriers may not rattle established airlines quite as much as upstarts such as Southwest Airlines Co. (LUV ) and Ryanair (RYAAY ) have in the U.S. and Europe. A dearth of secondary airports within commuting distance of Asia's capital cities means that low-cost airlines there can't avoid congested and pricey metropolitan airports as easily as U.S. and European budget carriers can. That limits their ability to save on landing fees and to get into and out of airports quickly -- the two pillars of the low-cost model. "The best we can do is 45 minutes turnaround -- and keep our fingers crossed that there's no bad weather," says Valuair Ltd. Executive Director Jimmy Lau.

The new Asian upstarts also face more competition than discounters elsewhere. In Europe or the U.S., no-frills carriers target routes that are dominated by just one or two carriers. But in Asia there's rarely any shortage of competition. In flying between Singapore and Bangkok, Valuair and Thai AirAsia compete with a dozen other carriers. On the Hong Kong-Singapore route, Valuair squares off against seven others. "In the U.S. and Europe, budget carriers have had huge impact on traffic and share," says Richard Stirland, director general of the Kuala Lumpur-based Association of Asia Pacific Airlines. "But I don't see it happening in this part of the world."

Asia's traditional airlines are more cost-competitive than their European and American counterparts, too. The likes of Cathay Pacific, Singapore Airlines, and Thai Airways enjoy lower average costs per kilometer than other global carriers. They're often even as low as no-frills airlines, which typically keep a lid on costs by flying only short-range, narrow-body planes. Cathay Pacific Airways Ltd., for instance, keeps its wide-body Airbus A330s busy by making several daily flights between Hong Kong and Taipei -- and then using the same plane for a 13-hour overnight trek to London. And because full-service carriers have first and business classes -- plus cargo -- they can sell economy seats at a discount. "They have an embedded low-cost carrier at the back of the plane," says Timothy Ross, a UBS analyst in New Zealand. So when Valuair offered a $176 round-trip fare between Hong Kong and Singapore, both Cathay and Singapore Airlines went even lower.

In fact, rather than cannibalizing full-service airlines, the arrival of no-frills rivals could create more business for everyone. As prices fall, full-service carriers say their planes are filling up. Thai Airways International, for example, raised load factors by offering 30 of the 150 seats on daily flights between Chiang Mai and Bangkok for just $25 round-trip, down from its regular fare of $112. "As long as we make a profit, that's good enough," says Chaiwat Chanapai, vice-president of Thai Airways. And as long as fares stay low, it'll be good enough for budget-conscious passengers such as Jamaludin to take more of those cherished trips abroad.

By Frederik Balfour in Bangkok

Copyright 2000-2004, by The McGraw-Hill Companies Inc. All rights reserved.
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Old November 24th, 2004, 10:12 PM   #580
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Thursday November 25, 3:08 AM
Ryanair, easyJet expand flights to Italy after Volare bankruptcy

LONDON (AFP) - Ryanair and easyJet both announced plans to expand in the Italian market following the collapse of the low-cost airline Volare, which has declared insolvency and suspended flights and ticket sales.

Dublin-based Ryanair said it will start a twice-daily service from Paris (Beauvais) to Venice (Treviso), and also announced that it wants to hold talks with the Italian airports affected by the collapse of Volare about beginning low-fare domestic flights within Italy on routes previously served by Volare.

EasyJet meanwhile said it plans daily services starting in April or May next year from London Gatwick airport to Olbia, London Luton to Cagliari and Berlin to Olbia and Pisa.

The expansion comes after Volare suspended all its activities last Friday.

"Clearly a lot of Italian airports have lost significant traffic volumes as a result of Volare's collapse and we have invited all of these airports to meetings in Milan this week to see if we can help them to launch low-fare domestic and international routes, to make up for the traffic they have lost as a result of Volare's collapse," Ryanair deputy chief executive Michael Cawley said in a statement.

"Ryanair already flies to almost all of the airports in Italy previously served by Volare and we expect to announce further route expansion to and from these airports in the not too distant future subject to the successful conclusion of satisfactory agreements with these airports," he said.

He also offered free flights to stranded Volare passengers, subject to airport and government taxes.

EasyJet said it expected to see its passenger numbers on all Italian flights "significantly increase" in 2005.

"Italy is the second largest low cost airline market in Europe and although a number of other airlines may be facing commercial difficulties, easyJet views Italy as a vibrant and highly attractive market with great potential and we look forward to expanding further with more connections to main city destination airports," said chief executive Ray Webster.

Volare's board declared insolvency on Tuesday to benefit from the Marzano law adopted in December 2003 by the Italian government to save the failed food group Parmalat from bankruptcy.
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