Archive for the 'Cathay Pacific' Category

Oasis Hong Kong Airlines Goes Out of Business

On 09APR2008 14:00 Hong Kong time, the first long haul low cost airline has ceased its operations. Oasis Hong Kong has been a story that a large portion of the Airline Industry was following as it was the ice-breaker in the long haul low cost market with its cheap flights between Hong Kong and London Gatwick.

Oasis Hong Kong Boeing 747

They started their daily flights in October 2006 with the above mentioned route and have later added 6 times weekly service between Hong Kong and Vancouver, Canada. Their fleet has grown to four Boeing 747-400s, two are (were) former Singapore Airlines aircraft and two were formerly operated by All Nippon Airways (ANA). They were providing two cabins: Economy and Business starting from just GBP 358 return fare.

The airline was planning new routes to Europe (Berlin, Cologne/Bonn, Manchaster, Milan), North America (San Francisco and Chicago) and Australia (Melbourne and Sydney) “in the near future” according to their website, which plans will probably be cancelled or at least revisited now. Less than a month ago (19MAR2008) they still had news about new appointments in their sales force, but now it looks like those were too late.

Currently the following statement is on their website (www.oasishongkong.com):

It is with regret that Oasis Hong Kong Airlines announces that the airline has applied to the Hong Kong Court to appoint a provisional liquidator on 9 April 2008. The Court has appointed Edward Middleton and Patrick Cowley of KPMG as the provisional liquidators, and they have assumed control of the airline with effect from 1400h the same day Hong Kong time.

Our flight operations have been cancelled until further notice. The Provisional Liquidators are liaising with other airlines in order to help customers make alternate travel arrangements as quickly as possible.

This will probably mean a lot of business for British Airways, Cathay Pacific and Virgin Atlantic, Singapore Airlines and Qantas – who operate most of the flights between Hong Kong and London as well as for Air Canada and Cathay Pacific who fly between Hong Kong and Vancouver.

Looks like after all -in this case- the traditional airlines managed to withstand the promised competition of a low cost long haul operator…

by balint01

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Paper-free Air Cargo

IATA is working with seven key cargo airlines – Air Canada, British Airways, Cathay Pacific, KLM, Martinair, SAS and Singapore Airlines – freight forwarders (DHL Global Forwarding, Panalpina, Kuehne+Nagel, Schenker, TMI Group-Roadair, Jetspeed) and ground handling agents kick-started the move to a paper-free air cargo environment with the launch of six e-freight pilot projects. Starting today, cargo on key trade routes connecting Canada, Hong Kong, the Netherlands, Singapore, Sweden and the U.K will be processed electronically.

DHL image photo

“The paper-free era for air freight begins today,” said Giovanni Bisignani, Director General & CEO of IATA. “This first wave of pilots will pave the way for a global rollout of e-freight that will eliminate the paper that costs this industry $1.2 billion every year. Combined, these documents could fill 39 B747 cargo freighters each year making e-freight—a win for the business and for the environment.”

“E-freight is a revolution for an industry that is absolutely critical to modern life. For airlines it is a US$55 billion business that generates 12% of their revenues. More broadly air cargo transports 35% of the total value of goods traded across borders. The potential impact of greater efficiency in air cargo has very broad implications across the global economy,” said Bisignani.
E-freight pilots will systematically test for the first time common standards, processes, procedures and systems designed to replace paper documents that typically accompany air freight with electronic information. During the initial phase, selected shipments will travel without a number of key documents that make up the majority of the paperwork, including the house and master air waybills.  Results from the pilots will be used to expand e-freight to other territories.

IATA e-freight requires that business, technical and legal frameworks are in place to allow airlines, freight forwarders, customs administrations and governments to seamlessly exchange electronic information and e-documents.  The six pilot locations were selected based on their ability to meet these criteria along with offering network connectivity and sufficient cargo volumes.

At each location cargo experts from participating airlines, freight forwarders, ground handling agents, local customs administrations and airport authorities worked together closely over the past 10 months to prepare the pilots.
“High oil prices and cumbersome processing requirements are handicapping air transport’s competitiveness with sea shipping,” said Bisignani. “Sea shipping is expected to grow at 6% annually over the next five years, compared to 4.8% for air cargo. E-freight makes a four-decade leap, bringing strengthened competitiveness by cutting costs and improving transparency and consistency throughout the supply chain. This good news for the customer will help shore-up air transport’s competitiveness with sea shipping and other modes of transport.”

E-freight is one of five Simplifying the Business projects being led by IATA to improve service and cut costs. The industry has set a deadline of the end of 2010 for the implementation of e-freight wherever feasible.

Source: IATA.org

Dragonair Becomes Affiliate Member of Oneworld

Again alliance news:

Dragonair will officially join oneworld as an affiliate member on Nov. 1, the alliance said yesterday, significantly expanding its reach in mainland China by more than doubling its destinations there.  In addition, oneworld will expand to Cambodia via Dragonair’s flights to Phnom Penh.

About Dragonair 

Dragonair is a Hong Kong-based international airline, and a member of the Cathay Pacific Group. Established in 1985, the airline now operates a fleet of 15 A330-300s, six A321s and 10 A320s, in addition to four Boeing 747-200/-300 freighters and two 747-400 Boeing Converted Freighter. The airline’s passenger service network covers 31 destinations across the Asia-Pacific region, including 21 in the China Mainland.

Dragonair  is a subsidiary of Cathay Pacific, a member of oneworld.

 By Szafi

Cathay Pacific Signs for Amadeus Altea – Who Will Win?

A quote from the news:

Cathay Pacific signed a 10-year contract with the airline IT provider Amadeus. Cathay Pacific and its subsisdiary Dragonair will adopt the complete customer management solution Altea for reservations, managing inventory and departure control.

Cathay Pacific Airways, which already uses Amadeus’ internet booking engine to power its commercial website, has identified IT as a core component of its strategy as it seeks to expand operations and continue to grow in some of the world’s fastest growing aviation markets like China, as well as the US and Europe.

According to Hans Jorgensen, Vice President, Strategic Airline & Partner Programmes at Amadeus: “As one of the world’s most successful airlines, in terms of both profitability and growth, we are delighted that they have selected Altéa CMS as their customer management system.”He continued: “We believe that Cathay Pacific’s decision as the first Asian carrier to choose the whole Altéa suite of solutions, will be viewed positively by other airlines and catalyse growth for Amadeus in the Asia-Pacific region, as a leading IT provider in the travel industry.”Cathay Pacific Airways and Dragonair, who together carried 22 million passengers in 2006, join 42 airlines across the globe that have selected Altéa CMS.

Who is lucky?

Again a oneworld member that was given the right to implement the full Amadeus Altea solution, probably within a reasonable timeframe (however, the news do not state when the planned cutover will take place, Amedeus first has to deal with LH, AF and KL among others…). Believe it or not it is not the supplier who is lucky here. Amadeus – chosen by the 3 major airline alliances – is on the right track to become the number one IT provider in the industry and thus rule the world of airline IT providers. The airlines need a common platform for passenger handling more than ever. Major IT providers (Galileo, Sabre, Worldspan, SITA and others) gained some market in the past 20 years, but the future will not see them as players in the market if they will not change their strategy. The problem is that free data transfer is more important for airlines than prices. But there is no free data transfer between different GDSes, DCSes and inventories, so the only solution left for them is to pick one and use only that. At the moment, Amadeus is the only one that offers the full suite of airline solutions, in an integrated package, which has been rolled out almost completely already and is working at some airline customers, as we speak.

Amadeus was chosen very rationally by oneworld, then Sky Team and Star Alliance followed them, too. They have already ruled the European market and now they are on the way to Asia.

So how can other providers win some clients for themselves?

There is still a field to play. Amadeus has 2 very tough weaknesses, which can be an opportunity for others. One of these weaknesses is that they do not have the capacity to start more new projects, therefore airlines cannot sign up with them, they would simply not receive a “slot”. This is why I wrote Cathay was the lucky winner here, because there is a huge queue of airlines wanting to adopt the Altea technology. The other weakness is the huge and a little bit chaotic organization. There are too many managers and not enough real working hands, therefore production is less effective. We have been to meetings, where there were at least 20 people sitting and nobody knew what his or her task will be in the project. Of course later about 5-6 people had real tasks. There is one more good thing that other system providers can use: the Amadeus API. You can basically do whatever you want with it – there are a few system providers that already did that actually. You just have to know the system. Summing up if I were one of these providers, I’d put all my cards on offering solutions to airlines that serve their data exchange needs by interfacing Amadeus (as well as my own solution – if I have one) and give them a very similar, integrated solution for GDS, inventory and DCS and I would give them deadlines that are acceptable. I would also provide personal consultancy and good customer relations, in which Amadeus is also not the best due to being overloaded with new customers. If I were another provider on the market, I would also offer some tailor made enhancements/modifications, which Amadeus usually refuses to do – due to the high overload again. But I would also need a working solution to compete with Amadeus, “slideware” presentations would not do the trick… Whoever has that at hand, will win.

By Szafi

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