Northstar

The Indispensable Travel Industry Read Feature Highlight Tourism New Zealand - A site to behold… Vol. 3 Issue 15 | 22 May 2012 | www.travelweeklyweb.com | Published by Travel & Meetings Group, Ten Alps Communications Asia Pte Ltd Aviation CSOS signs partnership agreement with Tibet Airlines Technology Page 8 Boeing B777-300ER in Singapore Airlines livery Top 20 tips on creating a more profi table travel agency Page 10 SIA suspends services to Abu Dhabi and Athens Sustained weak performance has resulted in SIA's decision to suspend services to Abu Dhabi, United Arab Emirates and Athens, Greece. The announcement came as an expected call for a strategic decision to ensure that the Airlines remains relevant. Regionally and across the globe, airlines are hit hard by the economic headwinds, getting on their different measures to combat the current state. International Air Transport Association (IATA) has lowered its forecast of the industry's profit to be estimated at US$3 billion, from the expected $3.5 billion, the compromised demand growth, substantiated by the rising cost of jet fuel by eight per cent, since January. SIA's call is indicative of how the region's airlines are reacting, with some already adopting the full-serviced and budget model, creating alternative demands and adapting to the changing dynamics of the aviation industry. The Association of Asia Pacific Airlines had previously revealed that the region's airlines suffered a 47 per cent cut in profi ts last year. The Airlines also reported its profi t decline of 69 per cent for the financial year that ended in March 2012. The Arab Spring would have affected the economies of the Middle East, with oil prices surging high, giving regional airlines a pinch as a result. With Greece's political shake-up, clad under the curtains of a bleak economic recession that may lead to a "Grexit" (a term coined to indicate Greece's possible exit from the Eurozone), the impact on banks, businesses, transportation and people, can be immense. SIA has been serving Athens since 1972 and Abu Dhabi, since 2006. The suspensions, says the Airlines, are a difficult one due to the longstanding connection established, but are in tandem with SIA's policy to match capacity to the prevailing market demand. The last flights to both cities will depart Singapore on October 26, 2012. Customers with confirmed tickets that were issued prior to May 16, 2012, for travel to and from the cities after October 26, 2012 and October 27, 2012 for return fl ights, will be eligible for refunds. This is also applicable to KrisFlyer redemption tickets, with no administrative charges or penalties. As of current, fl ights serving Abu Dhabi are on a three times per week basis while Athens is served two times per week, rising to three times per week between early July and late September. The Airlines is aiming to get in contact with customers affected from the announcement to offer alternative routes or services to their destinations. It will also continue to serve Dubai in the United Arabs Emirates. Flights to and from Athens are also possible with Star Alliance partner airlines via several Singapore Airlines' European connections. Regionally, airlines are recorded to represent a quarter of global passenger traffic, playing an important role in the progress of global aviation industry. Photo: Singapore Airlines

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