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JANUARY 2016

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Trans-Tasman competition soars as SIA sets sights on Canberra and Wellington

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January 15th 2016

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Singapore Airlines (SIA) this week was tipped to be close to announcing a four times a week Singapore-Canberra-Wellington service later this year, bringing in even more trans-Tasman competition. Read More » If materialized, the route is likely to be launched with the carrier’s incoming fleet of A350s, scheduled for “late February”, SIA told Orient Aviation's week in the Asia-Pacific its medium-range A350s will be configured with 42 business, 24 premium economy and 187 economy seats. The Canberra catchment area has a population exceeding 900,000 and the national capital airport could be a viable alternative for passengers who usually have to drive or take a domestic flight to Sydney or Melbourne for their flights to Asia and beyond.

Malaysia-based long-haul budget carrier, AirAsia X, has cancelled eleven A330-300ceos in favour of the re-engined A330-900neo, raising its neo orders from 55 to 66 and effectively wiping out the carrier's -300ceo backlog. Airbus has secured accumulated orders for 160 A330-900neos with the smaller -800neo accounting for another ten.

Air Asia X this week announced it would add a tag to Auckland on its Kuala Lumpur-Gold Coast A330 service from March 22, a decision bound to intensify trans-Tasman competition as it will add 377 more daily seats on the route. Air New Zealand and Jetstar also serve the route and Emirates Airline is offering daily Brisbane-Auckland A380 services.

AirAsia X CEO, Benyamin Ismail, said New Zealand was "a world class destination that has always had a special place in our heart". Ismail said “the airline was excited to be back in New Zealand, allowing an easy connection for our guests from all over Asia to Auckland”. AirAsia X previously flew Kuala Lumpur-Christchurch with an A340, but withdrew from the route in May 2012 amidst a significant downturn in demand following the devastating Christchurch earthquakes.

Separately, Hong Kong Airlines, the HNA Group carrier, this week launched a thrice-weekly Hong Kong-Cairns-Gold Coast A330 service.

At Air Asia X’s Kuala Lumpur home base, Malaysia Airlines Berhad (MAB) this week confirmed the retirement of its B777-200ER fleet from late March, which will see about 40% of its B777 pilots leave the flag carrier under a mutual separation scheme, MAB said. The remaining cockpit crew has been offered secondment to other carriers or voluntary unpaid long-term leave.

In other Malaysian aviation news, Lion Group offshoot, Malindo Air, beat both AirAsia X and MAB this week when it announced the launch of four-weekly Kuala Lumpur -Lahore B737-900ER flights from March 3.

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