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Emirates signs US$160 million financing for new aircrafts
Emirates has signed a US$160 million financing agreement
for two new aircraft using commercial bank funds.
Following
the signing of the financing agreement for two new aircraft, Dermot Mannion
(center seated), Emirates’ Chief Director Finance, IT & Services,
shakes hands with Anne-Marie Siffroy-Pytlak, First Vice President, Credit
Agricole Indosuez; and Abdulshakoor Hussain Tahlak, Assistant Chief Manager,
National Bank of Dubai. Also pictured are, from left, standing: Michael
Pereira, Head of Territory Dubai, BNP Paribas; Jonathan Morris, Head of
Corporate and Institutional Banking, Standard Chartered Bank; and Omar
Bouhadiba, Senior Vice President and Head of Commercial Banking Group,
Mashreq Bank.
The financing, over a 12-year term, was structured by
Credit Agricole Indosuez with debt co-arrangers: National Bank of Dubai,
Norddeutsche Landesbank, Kreditanstalt Fur Wiederaufbau (KfW), Mashreq Bank,
Standard Chartered Bank and BNP Paribas.
The debt was financed on a floating rate basis at a
margin of 0.80% over six-month Libor (London Inter Bank Offered Rate).
Dermot Mannion, Emirates’ Chief Director Finance, IT
& Services said, "This substantial commercial financing, supported
by a range of international and local banks, is a continued vote of
confidence in the airline. We will continue to use a diversified approach in
financing our fleet requirement, using a range of financing alternatives. We
are very pleased to be involved in this financing with Credit Agricole
Indosuez, which is one of the largest players in the aircraft financing
world and has been a long term supporter of Emirates."
The financing covers one brand-new Airbus A330-200
aircraft, delivered earlier this month, and another scheduled for delivery
on 28th March.
Powered by Rolls Royce Trent 700 Series engines, the aircraft are the
25th and 26th of 29 Airbus A330-200s currently on firm order, taking the
Emirates fleet total to 47 aircraft.
Congratulations to new ATTA President
Pierre
Andre Pelletier (center) recently presented a bouquet to Suparerk Soorangura
(right) to congratulate him on the occasion of his appointment as new
president of the Association of Thai Travel Agents (ATTA). The presentation
took place at the Amari Watergate Hotel’s Grand Ballroom. Also at the
ceremony were Chidchai Sakornbadee (left), ATTA’s secretariat, and
Sumphund Paenpattana (2nd left), Honorary Advisor to the Thai Hotel
Association.
2.7 million passengers carried by SWISS during first quarter of 2003
In the first quarter of 2003, SWISS carried a total of
2.7 million passengers on its scheduled flights. SWISS continues to be
challenged by the sluggish economic environment, the residuals of the Iraq
war and the recent outbreak of SARS, all of which dampen the demand for air
travel. The average seat load factor in the traditionally weak first quarter
was 67.9 percent.
However, SWISS’ highly popular Bangkok-Zurich flights
have maintained significantly high loads, both inbound and outbound.
On the European network, an overall seat load factor of
49.6 percent was achieved during the first three months. This figure is
slightly below the prior year level of 50.1 percent and reflects the current
unfavorable economical situation and geopolitical uncertainties.
High seat load factors were achieved in Ireland, followed
by the former Republic of Yugoslavia, Denmark and Ukraine. The reduced
demand in Germany, Albania, Bulgaria and Italy resulted in seat load factors
below average.
Meanwhile, necessary network adjustments have been taken,
partially by downgrading of aircraft sizes on routes or by canceling some
flight frequencies or destinations. These adaptations were announced earlier
this year and came into effect with the introduction of the 2003 summer
timetable on March 30.
As SWISS entered into the intercontinental business only
in April 2002, no comparison with the prior year is possible. Good seat load
factors were achieved, especially in South America, Canada, followed by
Thailand, Singapore, Western Africa and India.
Regarding the Iraq war a continuous monitoring of the
routes takes place and network adaptations are implemented in order to
maximize revenue and reduce costs.
The same has been initiated in form of a SARS task force
that is constantly checking the booking status of the most affected routes
(mainly South East Asia) in order to be able to react rapidly.
Because of a drop in demand, SWISS is temporarily
suspending its Monday Zurich - Tokyo flights (April 14 - May 19, 2003) and
the corresponding Tokyo - Zurich return flights on Tuesdays (April 15 - May
20, 2003).
Flight cuts won’t affect THAI’s revenue
President of Thailand’s national flag carrier Thai
International Airways (THAI) Kanok Abhiradee recently announced that the
planned reduction of flights, particularly in Asian routes, in the wake of
the Severe Acute Respiratory Syndrome (SARS) epidemic will not adversely
affect the airline’s revenue.
Kanok said the reduction was made in expectation that the
number of passengers traveling on these routes would drop by around 20
percent. However, the company’s revenue will not be considerably affected
because it had come up with a plan to control various expenses.
THAI has shifted its strategy to increase domestic
flights and provide attractive tour packages in response to the government’s
plan to promote local tourism. In addition, declining oil prices following
the sooner-than-expected end of the war in Iraq has improved the company’s
fuel costs.
THAI will adjust flight routes in the Middle East when
commercial airplanes are allowed to fly over war risk areas.
THAI executives are considering reducing flights, which
would total 300,000 seats, in Bangkok-Singapore routes from 49 to 46 per
week, Bangkok-Hong Kong from 42 to 28, Bangkok-Los Angeles from 7 to 3,
Bangkok-Osaka from 24 to 21, Bangkok-Tokyo from 18 to 17, and Bangkok-Busan
from 3 to 2 in the wake of the SARS outbreak. (TNA)
Appointment news from Sofitel Raja Orchid Khon Kaen
Ole
Nielsen, GM of the Sofitel Raja Orchid Khon Kaen, recently announced the
promotion of Somchid Saisawang as new director of food & beverage at the
hotel. Somchid has been in the hotel business for more than 10 years and has
vast experience in the five star hotel field.
Food & Beverage Managers Association - Eastern Chapter get together for their monthly meeting at the Cholchan Resort
Songklod Kaewvisit
Members of the Food & Beverage Managers Association
Eastern Chapter met to plan upcoming activities for this year. The monthly
meeting, held at the Cholchan Resort included food and beverage managers
from many of the region’s hotels who gathered to exchange information on
the current business climate and plan a Bartender Contest, scheduled to be
held on June 12 at the Town In Town Hotel in Pattaya.
Members also discussed a variety of projects being
planned including working with the THA Eastern Chapter and arranging
activities to benefit the families of hotel staff through arranging the
Bartender Contest, Best Fancy Bar, a beauty pageant and the increasingly
popular pageant for "women of the second category".
Proceeds from the competitions will be used to provide
scholarships for students with high academic scores and to assist families
unable to pay for their children’s education.
After the meeting, the resort laid on a lavish Hawaiian
style buffet on the beachfront. A show featuring grass-skirt dancing
provided the entertainment. Everyone enjoyed the fun and the gesture was
greatly appreciated by the food and beverage managers who often work long
hours under great stress to keep service standards high and kitchens and
hotel facilities running smoothly.
Thai families offered by 70% savings on domestic tour programs
Thai families are to be offered massive savings of up to
70 percent on domestic tour programs in a bid to boost domestic tourism in
the wake of losses in international tourism revenue due to fears over Severe
Acute Respiratory Syndrome (SARS).
Deputy Prime Minister Somkid Jatusripitak conceded that
while SARS was affecting tourism across Asia, including Thailand, it had
also helped kick-start domestic tourism with fewer Thais traveling abroad.
"During this time when tourists are scared by SARS,
I have discussed with tour and travel companies measures to drive domestic
tourism while Thai schools are having vacations. We will also make
preparations to deal with international visitors once the SARS scare has
died down," Somkid said.
Somkid said that special promotions would focus on family
vacations, with savings of around 70 percent on travel and accommodation,
adding that he had also suggested that tour companies offer prizes for
families traveling within Thailand. At the same time, he urged tour
companies to look to tourism markets abroad, focusing on markets for which
tourism numbers remained high such as Japan and Scandinavia.
Playing down the impact of SARS on the tourism industry,
the deputy PM called on tour companies to refrain from laying off their
staff. He suggested that company executives sacrificed some of their
salaries for the sake of their companies.
Thai Airways International Plc (THAI) president Kanok
Abhiradee said that the airline would organize integrated package tours with
special discounts for Thai families. He hinted, however, that discounts
might not be as high as 70 percent, as the companies concerned could not be
allowed to run tour programs at a loss. (TNA)
TAT and Phuket tourist associations launch special package to tempt tourists
The Tourism Authority of Thailand (TAT) in cooperation
with Phuket Tourist Business Association, Thai Hotels Association, Southern
Chapter and Bangkok Airways is launching three attractive packages for
visitors to Phuket. Valid from April 16-July 31, a three-day/two-night
package includes return airfare, two nights’ accommodation, airport
transfer and breakfast.
Prices range from 5,950, 6,550, 6,950 and 7,550 baht per
person, depending on the choice of hotel.
Travelers can buy optional tours with discounts under
Phuket City Tour and Phuket Fantasy programs, or June Bahtra cruise. For
bookings call Suan Sukhothai at 02-265-5805; NS Travel 02-246-5659; C&P
Travel 02-266-3901; and Bangkok Air Tour 02-255-8964-8.
Travel companies fear for their survival over the next 6 months
Government assistance package of 3 billion baht may not be enough
The government has promised to help the beleaguered Thai
travel industry which has been hit hard by the SARS outbreak. To soften the
blow, an ‘emergency package’ credit line of three billion baht has been
pledged by the SME Development Bank.
Under the agreement the SME Development Bank would lend
between 500,000 baht and three million baht to each tourism-related company
requiring assistance. The loans must be repaid within two years and carry a
6% interest rate, which is just below market levels.
But tourism operators say this sum may not be sufficient
to carry them through the crisis. Industry leaders say the next 6 months
will be critical and without more help many companies will not survive. They
are asking that government extend its support by providing tax breaks and
other incentives, including a reduction or exemption from value added tax
(VAT).
Suparerk Soorangura, president of the Association of Thai
Travel Agents (ATTA) said, "In addition to loans for working capital we
also need to slash expenses. A reduction in VAT would help immensely. The
damage to the industry so far has been estimated at 40 billion baht, and
many of the more than 3,000 member companies in various associations could
go under."
The Tourism Authority of Thailand has forecast foreign
tourist arrivals to fall by about 25% in the second quarter due to the SARS
outbreak. Expected arrivals for the full year could drop to 10.56 million.
In response, Deputy Prime Minister Dr. Somkid
Jatusripitak has urged tour agencies to promote campaigns that include huge
discounts that would entice Thais to boost domestic travel. (TNA)
Amari Watergate receives award from deputy prime minister
Deputy
Prime Minister H.E. Korn Dabaransri recently presented an award to Pierre
Andre Pelletier, general manager of Amari Watergate Hotel for supporting the
Sporty Award 2003 event at the hotel.
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