Aviation
Asian Airlines Raise Baggage Allowances
BEIJING – Asia’s full-service airlines are hoping to win more customers by raising baggage allowances, a stark departure from the decadelong, world-wide practice of forcing passengers to travel light or face exorbitant fees.
At least four Asia-Pacific carriers, including Singapore Airlines Ltd. -1.25% and Malaysian Airline System -3.08% Bhd, have in recent months raised weight limits for free checked baggage on economy and premium classes by as much as 53%. The action highlights how Asia’s premium carriers are feeling the heat from fast-growing budget airlines and ultra-luxurious Middle Eastern carriers. Competition has continued to weigh on passenger yields, a key measure of airline fares.
All that added luggage weight means added cost, but it’s an expense the carriers appear willing to undertake if it gains them more passengers—and saves them from aggressive fare cuts.
“It’s not just about the cheapest seat on a flight,” said Suresh Singam, head of government and international affairs at Malaysia Airlines. “We believe there is a premium that you can charge because of the brand and value.”
Low-cost travel now accounts for a quarter of Asia’s traffic, hurting demand for full-service carriers especially in Southeast Asia, even as international passenger traffic on regional airlines remains strong, rising 5.5% in the first nine months of 2013. The fight for coach customers has become more crucial for the region’s premium airlines with the downturn in first- and business-class demand.
Illustrating the competitive landscape, around 75% of airline routes in the region are served by at least three carriers, while in Europe, some 45% of routes are served by just one or two airlines, according to the Association of Asia Pacific Airlines. The International Air Transport Association earlier cut its 2013 profit forecast for Asian-Pacific airlines by a third to $3.1 billion, representing a 23% decline from 2012, citing slowing growth in the region’s emerging markets. IATA expects only modest profit growth for the airlines next year.
“Competition keeps yields low and (profit) margins are being squeezed. Asian carriers are still finding it very tough and profitability isn’t picking up,” said Andrew Herdman, director general at the AAPA, an industry group representing 15 of the region’s full-service carriers.
Full-service airlines in the West have also endured intense competition with budget travel, causing many companies to pare back amenities to become no-frills operations themselves. In the U.S., for example, most carriers charge customers to check even one bag. In Asia, most airlines remain invested in the full-service model, though they have created budget carriers themselves to stay competitive.
“As a premium carrier, what we should do is to continue enhancing our product offerings…we won’t go the way of launching a price war,” said Austin Cheng, president of Taiwan-based full-service carrier EVA Airways Corp. -0.31% “Our core value is to provide good service.”
Last week, Singapore Airlines said it would increase its free baggage allowance in all travel classes on most routes by 10 kilograms, matching an earlier decision by premium rival Malaysia Airlines. Coach customers will be allowed to check bags weighing as much as 30 kilograms, up from 20 kilograms previously. The decision came just as the Singapore flag carrier reported further declines in passenger yields, a trend that has continued since the fiscal year ended March 2011.
China Southern Airlines Ltd. +3.58% and Australia’s Qantas Airways Ltd. +2.22% have also raised the allowances for coach customers on many routes.
In addition, airlines are making it easier for customers to earn frequent-flier miles on special discounted fares, while others are extending perks normally reserved for premium travelers to coach customers. For example, economy passengers transiting from long-haul flights on Garuda Indonesia GIAA.JK -2.02% will soon be able to relax at the airline’s lounges in Jakarta. Hot meals and wines remain complimentary on most full-service flights in Asia, and carriers continually upgrade coach seats and in-flight entertainment options.
Full-service airlines have significantly boosted flights within the region to better connect customers to their other regional and long-haul services. Malaysia Airlines added more flights on key regional markets and boosted its passenger traffic by 30% so far this year. The airline competes in its home turf against AirAsia, 5099.KU +1.62% the region’s biggest and most successful budget carrier, which earns around 17% of total revenues from ancillary income such as checked bags, food and early seat assignments.
Many premium Asian airlines also are relying on global alliances to extend their international reach and attract business travelers. Both EVA and Malaysia Airlines became alliance members earlier this year, and will soon be followed by Garuda Indonesia.
“We are not like Emirates which has deep pockets [and] can buy so many aircraft. We have a limited bank account,” said Emirsyah Satar, chief executive of Garuda, explaining his airline’s decision to join the SkyTeam alliance to expand its international footprint.
Mr. Satar said Asian carriers have an advantage over rapidly expanding Middle Eastern airlines because they are able to fly fast-growing routes using smaller planes that the Gulf carriers don’t have.
“We’ve got that market,” he said.
– WALL STREET JOURNAL
The Nigeria Civil Aviation Authority (NCAA) has announced stringent measures against pilots and crew members who work for multiple airlines concurrently, a practice it describes as a serious safety violation.
In a letter dated November 6, 2024, Acting Director-General, Chris Nojomo warned that pilots operating for more than one airline without specific safety protocols pose significant risks to Nigeria’s aviation sector.
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The directive, titled “Prohibition of Ad-Hoc Flight Operators for Multiple Airlines,” noted that NCAA surveillance reports revealed multiple cases of unauthorized cross-airline work by flight crews, which the agency now plans to address.
According to the NCAA, simulator and proficiency checks endorsed on a pilot’s license are valid only for the specific airline and training program under which they were issued.
The letter stated, “With effect from the date of issuance of this directive, all operators and holders of pilot licenses are informed that this action will be treated as a violation of the Nigeria Civil Aviation Regulations.”
The NCAA’s new policy, effective November 11, 2024, warns that violators will face strict enforcement actions. Moving forward, simulator renewals will also be filed directly with individual operators, further tightening the agency’s oversight.
In a bold step to strengthen Akwa Ibom’s position in Nigeria’s aviation industry, Governor Umo Eno announced the addition of two new Bombardier CRJ900 aircraft to the fleet of the state-owned airline, Ibom Air, on Friday.
The two aircraft, registered as 5N-CED and 5N-CEE, mark a milestone in the state’s commitment to strategic investment, with the governor stressing that the acquisitions were fully funded by state resources without loans from financial institutions.
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At a welcoming ceremony attended by local officials and residents, Governor Eno emphasized his administration’s mission to drive revenue-generating ventures for Akwa Ibom rather than relying on debt.
He called the move a step toward breaking the cycle of government investments that only serve to pay off loans, vowing that the state’s funds would go towards projects that bring returns to the people.
The governor challenged Ibom Air to turn a profit by 2025, stating that the airline’s management should ensure routes in and out of Uyo remain dependable to prioritize the needs of Akwa Ibom travelers.
“As long as I remain governor, we will continue to use state funds for the benefit of all, not for private gain,” he said, noting that his administration aims to ensure that public investments deliver real value to the state.
Governor Eno also provided updates on several ambitious state projects, including an 18-story commercial complex underway in Lagos and an upcoming 4-star hotel in Abuja, both designed to generate revenue for Akwa Ibom.
Plans for an international market in Ikot Ekpene and the phased opening of a new terminal at the Victor Attah International Airport were also announced, with the airport terminal set for partial operation by December and full activation in early 2025.
Speaker of the Akwa Ibom State House of Assembly, Udeme Otong, commended Eno’s financial management, highlighting that the administration has avoided seeking loans over the past 18 months despite launching significant development projects.
Ibom Air’s Chairman, Pastor Imoabasi Jacob, expressed appreciation for the state’s investment in the airline, which has seen its fleet grow to nine aircraft.
Jacob credited the governor’s support with enabling Ibom Air to boost flight capacity, meeting demand on popular routes such as Uyo-Lagos-Abuja.
Captain Mfon Udom, CEO of Ibom Air, stated that the expanded fleet will improve efficiency and allow the airline to scale up its operations in time for the Christmas travel season.
Udom also noted that the airline anticipates the delivery of nine additional Airbus planes, which will further strengthen Ibom Air’s market presence.
Traditional leaders, including HRM Edidem Ita Edet Okokon III of Okobo Local Government Area, lauded the governor’s leadership, pledging continued support from the traditional institutions.
Anie Essienette, Group Manager for Marketing and Communications at Ibom Air, noted that demand for the airline’s services has surged nationwide, with the new CRJ900 aircraft helping meet this increasing need while the airline awaits further fleet expansion.
Nigeria’s Minister for Aviation and Aerospace Development, Festus Keyamo is of the view that there’s no cause for alarm over the approval of a private airstrip for a religious organisation, which attracted the attention of the House of Representatives.
He took to his verified handle on micro-blogging site, X, on Friday morning to shed light on the subject, and explained that it could be a great source of revenue for Federal Government.
Keyamo asserted that the issue was raised by an honourable member at plenary, out of ignorance, but was “unanimously referred to the Aviation Committee to look into.”
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Keyamo expressed confidence that by the time his Ministry was done enlightening them, “they will be satisfied”.
He added that “the privates air strip owners pay the Federal Government handsomely for these services.”
Keyamo wrote, “I think this is not correct. The House of Reps. as a body did not call on the Minister to revoke the license of any private airstrip.
“I think what happened is that someone moved a motion in that regard and it was unanimously referred to the Aviation Committee to look into it.
“Whilst the intention of the Hon. Member who moved it is very patriotic, it was based on a complete lack of knowledge of the aviation sector.
“By the time we explain to them how private air strips work and the processes they undergo by our agencies before the final approval, they will be satisfied.
“The responsibility of the owners of private air strips is just to build the runway and terminal building. But after they build the control tower in particular, it is completely handed over to the Federal Government through NAMA (Nigerian Airspace Management Agency) which is in complete control of the entire airspace in Nigeria. An MOU is usually signed with NAMA in this regard before the airstrip is approved for operations.
“It is NAMA that provides the Air Traffic Controllers and Engineers in ALL AIRPORTS and AIRSTRIPS IN NIGERIA. And the privates air strip owners pay the Federal Government handsomely for these services.
“No object flies into Nigeria without the prior clearance by NAMA and without filing a clear flight plan, eg, where it is taking off from and where it intends to land.
“And I have recently directed that all aircraft coming into the country MUST first land at our international airports where they would be properly processed and checked before they make their local flights into whatever airport or airstrip they intend to go. So, it is COMPLETELY AND TOTALLY impossible for any private airstrip owner to just jump on an aircraft and fly in and out of the country through that facility. The Federal Government does not permit that. You will not be cleared for take off or landing without prior request and authorisation.
“I thank the Member for his patriotism, but I wish he contacted us first to explain to him before rushing to move such a motion.
“I attach herewith for public consumption the NAMA Act that gives exclusive control of the Nigerian airspace to the Federal Government through NAMA.”
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