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
Aviation
Shell Endorses Regional Action Plan for Safe Helicopter Services
Shell Nigeria Exploration and Production Company Limited (SNEPCo) has welcomed efforts to promote safe helicopter services across Africa in a proposed Regional Action Plan (RAP).
The plan, according to a company statement, is the highlight of a workshop organised in Lagos within the week by the Aviation subcommittee of the International Association of Oil and Gas Producers (IOGP) in partnership with London-based safety advocacy group, HeliOffshore.
Biztellers reports that the two-day Offshore Helicopter Industry Safety Workshop (OHISW) with the theme “Developing a Regional Action Plan,” followed on from a similar session last year which SNEPCo sponsored.
READ ALSO: Ikire Killings: Adeleke Establishes Commission for Coroner Inquiry by Executive Order
It also provided administrative and logistical support for this year’s conference which was sponsored by ExxonMobil. SNEPCo, which pioneered Nigeria’s deepwater production at Bonga in 2005, relies on helicopter shuttles for operations and supports the workshop as part of its contributions towards safe services in Nigeria.
In an address at the opening session delivered by General Manager Contracting and Supply Chain, Charles Oranyeli, Managing Director SNEPCo, Ronald Adams said: “By developing a regional action plan, we can move beyond dialogue to alignment, ensuring that the safety leadership, industry standards, and collaborative approaches championed last year are embedded in a common roadmap for collective improvement. The most effective solutions will come not from isolated efforts, but from partnership, standardization, and coordinated action across the region.”
The workshop was attended by more than 80 representatives from oil and gas companies, the Nigerian Content Development and Monitoring Board (NCDMB), the Nigeria Civil Aviation Authority (NCAA), the Nigerian Safety Investigation Bureau (NSIB), helicopter operators and original equipment manufacturers.
The event concluded with participants deciding action items for the proposed Regional Action Plan including Search and Rescue (SAR) initiatives, implementation of IOGP Report 690 standards and establishment of formal industry leadership forums.
The IOGP has been active for over 50 years, supporting its more than 90 members around the world to promote “excellence in safe, efficient and sustainable energy.”
Aviation
Airfares Likely to Rise as Aviation Fuel Price Spikes by 80%
The Airline Operators of Nigeria (AON) has declared that airlines operating in Nigeria have come under financial pressure following a sharp increase in the price of Jet-A1, also known as aviation fuel.
According to the group, the price of aviation fuel, has surged to about N1,800 per litre in many parts of the country, from about N1,000 per litre two weeks ago. This amounts to almost an 80 per cent increase within a short period.
Aviation fuel remains the largest cost component in airline operations, accounting for about 30 to 35 per cent of total operating expenses.
Industry stakeholders have linked the latest spike to the ongoing conflict in the Middle East, which has pushed up global energy prices.
ALSO READ: Shell Completes Turnaround Maintenance on FPSO, Resumes Production at Bonga
Speaking on Channels Television on Friday, the spokesperson for the Airline Operators of Nigeria, Prof Obiora Okonkwo, said the surge had placed airlines under severe financial strain.
According to him, most carriers have so far refrained from immediately transferring the additional cost burden to passengers, despite the pressure on their operations.
“Two weeks ago, we were getting Jet-A1 at about N1,000 per litre, which today is about N1,800, and even more in some stations. We have experienced an increase of about 80 per cent. That’s quite a spike,” Okonkwo said.
He explained that airlines were currently absorbing the losses in order to avoid worsening the economic burden on the travellers.
“We are not in a business where you can easily adjust your ticket price. Right now what we are doing is that we are bleeding. We are taking the blow. We are selling tickets at very non-profitable prices. We are losing a lot of money,” he said.
Okonkwo warned that the situation might not be sustainable if fuel prices continue to rise without government intervention.
“Obviously, adjustments will be expected anytime soon. But again, we are very sensitive to the economic situation of Nigerians and our travellers,” he added.
He noted that developments in the global oil market, particularly the recent release of reserve crude oil, could influence fuel prices in the coming weeks.
Okonkwo also urged the Federal Government to explore engagement with the Dangote Refinery as part of efforts to stabilise aviation fuel supply locally.
“We were more hopeless in a situation where there was no refinery in Nigeria in the last two years. Now that we have a refinery, we are hopeful that we can find a solution around it,” he said.
According to him, if the spike persists, some airlines may struggle to continue absorbing the losses associated with the rising cost of aviation fuel.
Meanwhile, the AON spokesperson also reacted to the decision by the Federal Competition and Consumer Protection Commission to sanction about five airlines over alleged price fixing.
Okonkwo said while the commission has regulatory powers, the aviation sector remains deregulated, making coordinated price fixing unlikely.
“There is no meeting of airlines where they agree to fix prices. Fixing prices would mean operating as a cartel, and that is not the case,” he said.
He explained that airline ticket pricing varies widely because different aircraft types attract different operating costs.
“Each airline determines its fares based on its own operational costs,” he said.
Okonkwo added that airlines must also demonstrate financial viability to regulators as part of the conditions for maintaining their operating licences.
“At every point in time, you must prove to the regulators that you are financially viable and capable of sustaining operations,” he said.
He urged regulators to take into account the fragile nature of the aviation industry when making policy decisions affecting airlines.
Aviation
Bird Strike Hinders Air Peace Lagos–Port Harcourt Flight
An Air Peace flight from Lagos to Port Harcourt has suffered a disruption, after the aircraft was affected by a bird strike on arrival at the Port Harcourt International Airport.
The airline made the disclosure on Thursday in a statement signed by its spokesperson, Osifo-Whiskey Efe.
He added that the incident necessitated safety checks on the affected aircraft and the deployment of another aircraft to convey passengers on subsequent flights.
ALSO READ: Rivers’ CJ Declines Setting Up Panel for Fubara’s Impeachment
“We deeply empathise with passengers affected by this unforeseen incident and are working diligently to minimise disruptions,” Efe said.
The latest incident adds to the growing challenge of bird strikes faced by local airlines.
In December 2025, Air Peace disclosed that it recorded 49 bird strikes across Nigeria between January and September, stressing that even a single strike could ground an aircraft for weeks.
Chairman and Chief Executive Officer of the airline, Allen Onyema, had said on Arise TV that bird strikes constituted a major operational challenge, often leading to costly repairs and serious disruptions to flight schedules.
“One bird strike could cripple your aircraft for the next month. At that moment, there is no two ways about it. These bird strikes often lead to costly delays and serious disruptions in flight schedules,” he said.
He added that losses from such incidents compound other challenges facing Nigerian airlines, including heavy taxation and operational constraints.





