Mushrif A 3 Report post Posted June 22, 2011 Home market too small; they should promote their connectivity even more (via BWN) and sell cheaper fares to attract business; even better: join an Alliance... BI has nothing to offer any alliance. With now so many routes suspended, what will they do with the surplus 772s? Share this post Link to post Share on other sites
JuliusWong 0 Report post Posted June 22, 2011 Some of the B772ER will be going back to SQ soon as the lease is meant for one and half year or two. Tied over due to B787 delays. Share this post Link to post Share on other sites
Tamizi Hj Tamby 1 Report post Posted June 22, 2011 (edited) Uncle Pieter: Didn't knew that Aunty Mai was former BI station Mgr at SGN. Sometimes it's sad to see BI unable to compete with her fellow ASEAN counterparts.IMHO,i think it's better that the current BI is 'dissolved',and then create a 'new' BI in order to restore their tarnished reputation.Just my 2 cents here Edited June 22, 2011 by Tamizi Hj Tamby Share this post Link to post Share on other sites
dsim 0 Report post Posted June 22, 2011 what is the usual arrangement for customer who has already issued tickets to/from these suspended destination? i suppose full refund is an option? ... or they re-book the customer on another airline? Share this post Link to post Share on other sites
Waiping 12 Report post Posted June 22, 2011 With oil virtually coming out of household tap there they could have easily beat the competition by offering cheap fare or no fuel surcharge. They used to offer very competitive fare ex-BKI to fight against MH. How time has changed. Share this post Link to post Share on other sites
Mushrif A 3 Report post Posted June 22, 2011 With oil virtually coming out of household tap there they could have easily beat the competition by offering cheap fare or no fuel surcharge. They used to offer very competitive fare ex-BKI to fight against MH. How time has changed. Roads made of gold and oil from taps are myths surrounding Brunei. You have been reading too much tabloid gossip on the one-time excesses of the royal family, which does not necessarily translate into a top quality infrastructure or standard of living for the masses. There are poor people in Brunei. There are the Haves and the Have-Nots, not unlike in any place in the world. More could be done with the basic infrastructure but having cheap airfares do not form part of that. Share this post Link to post Share on other sites
Mike P 0 Report post Posted June 22, 2011 RBA earns more via transit passengers mostly. Not unless they could stay very competitive in terms of pricing and markings and products.. else... lose out Share this post Link to post Share on other sites
zeqa 1 Report post Posted June 22, 2011 so i assume 2-3 777 to be returned to SQ. Share this post Link to post Share on other sites
BC Tam 2 Report post Posted June 22, 2011 RBA earns more via transit passengers mostly Of course BI has had to rely on transit traffic at BWN to maintain a show of some respectability all this while Otherwise, bearing in mind the total population of Negara Brunei Darussalam and BI's fleet/network/frequencies, it could have meant each and every Brunei citizen embarking on an overseas trip every other month or so Share this post Link to post Share on other sites
Waiping 12 Report post Posted June 22, 2011 Roads made of gold and oil from taps are myths surrounding Brunei. You have been reading too much tabloid gossip on the one-time excesses of the royal family, which does not necessarily translate into a top quality infrastructure or standard of living for the masses. There are poor people in Brunei. There are the Haves and the Have-Nots, not unlike in any place in the world. More could be done with the basic infrastructure but having cheap airfares do not form part of that. Agree. I was lucky enough to fly BI to PVG just less than a decade ago. During that time it's always a tussle between MH and BI. BI knew in order for them capture bigger market they have to tap on Kota Kinabalu/Sabah travelers. Believe me when I say KK people wouldn't mind spending for holidays. When MH advertised their Malaysia Airlines Fair you can bet that within a month BI will advertised their own fair ex-BKI at a lower price than MH. That's how I got my tickets. I would have thought that this means their plan actually worked during then and can only think that the management wasn't really interested in expanding. Just my 2 sens worth. Share this post Link to post Share on other sites
Kenneth Chong WT 0 Report post Posted June 22, 2011 (edited) Needless to say, Mai my wife, was shocked to read the 'news' about suspending the SGN route: she had been station-manager for BI for years at Tan Son Nhat, prior to her moving to the Netherlands... Wow..Mai was also from the airline industry? Did she had to wear the headscarf back then as part of her Station Manager Uniform? Say "hi" to Mai for me...would be nice to see a picture of her in RBA's uniform...HAHAHAHA! Edited June 22, 2011 by Kenneth Chong WT Share this post Link to post Share on other sites
Andi C 0 Report post Posted June 23, 2011 Aussie High Comm-ner's grievance......... Flights cut hurts Australia links Rachel Thien and Goh De No BANDAR SERI BEGAWAN Thursday, June 23, 2011 THE suspension of Royal Brunei Airlines (RBA) flights to Brisbane and Perth will adversely affect Australia's hopes to see the expansion of education and people-to-people links with the Sultanate, the Australian High Commissioner to Brunei said yesterday. "Clearly from our side, it is a little bit disappointing because we are all very hopeful to see the expansion in our education links and our people-to-people links, and this would clearly impact on that,'' Mark Sawers told The Brunei Times. On Tuesday, the national carrier announced it was suspending services to Auckland, Brisbane, Perth, and Ho Chi Minh City effective after the last scheduled flights on October 2011, as well as the last scheduled flight to Kuching in July. Sawers contacted RBA to find out more about the decision. "This is a decision RBA had to think about for some time,'' he said. An RBA executive told him that it was "long thought after'', and it was not a light decision that RBA took. "But RBA's financial situation meant they had to take it,'' Sawers added. Australia's main concern is on finding the means to keep the level of interest "that we have been working on in terms of education'', he said. "My sense is that the real place of impact is two-fold. It will be Australian tourists coming to Brunei as it will be harder for them to do so, and Bruneian students to Australia who will impact mostly on,'' Sawers (pic) explained. Most Bruneians studying in Australia are in Queensland, Brisbane. "So the real impact will be on that group of Bruneians in Queensland. "You can take domestic flights from Melbourne to Brisbane and Perth, so if Melbourne stays in place, it would at least enable RBA to have a service to Australia. But the people I am thinking about at the moment are the (Australian) tourists that come to Brunei, because a fair number of them do come to the region, and Bruneians going to Australia,'' he said. Moreover, Perth and Brisbane faded into Brunei's onward flights to London, he said. "That would have to see a diminution to clientele for those flights, so I don't know what their plans are for their London link but I'm sure this would have some impact for the clientele for that too''. "Personally I often travel with RBA. Usually the flights are full with people going back and forward from Australia to the UK. So we will have to see what effect it has there because I cannot really tell.'' The Brunei Times Source: http://www.bt.com.bn/news-national/2011/06/23/flights-cut-hurts-australia-links Share this post Link to post Share on other sites
Pieter C. 5 Report post Posted June 23, 2011 Wow..Mai was also from the airline industry? Did she had to wear the headscarf back then as part of her Station Manager Uniform? Say "hi" to Mai for me...would be nice to see a picture of her in RBA's uniform...HAHAHAHA! Yes, she had to wear it too...when we're home again, I try to dig-up a picture of her in uniform in front of an A320, taken at SGN and 'publish' it here... Share this post Link to post Share on other sites
Kenneth Chong WT 0 Report post Posted June 23, 2011 Yes, she had to wear it too...when we're home again, I try to dig-up a picture of her in uniform in front of an A320, taken at SGN and 'publish' it here... YEAH! CANT WAIT! Share this post Link to post Share on other sites
KC Sim 2 Report post Posted July 2, 2011 I can only imagine that Robert Yang and his team must come up against some meddling from political quarters ... and do not see the way forward for the airline to get out of the rut. RBA after all is an airline that has hardly ever been profitable, for the longest time never published any of its financial statements ... one of its past CEO is now with Air Astana and I am sure he too faced some pretty major obstacles to running RBA in a commercially-sensible manner. This looks like a sad moment in history for RBA. Brunei's tourism attractions are rather few and lack differentiation from other destinations. The population base is miniscule, volume of international trading (beyond oil) is minimal and O&D traffic with anywhere is very small. Connecting traffic can only work for them if there is connectivity and low fares ... now with the route cuts (and did someone mentioned Phase II route cuts on the way too!!!), connectivity has been slaughtered. I love the Royal Brunei livery and fondly remember their B737-200s ... at this rate, perhaps the only widebodied aircraft painted in its livery are those from the Brunei Royal Flight ... A340-200, B767-200ER. I remember there was at least one B727-200B painted in this livery too. KC Sim Share this post Link to post Share on other sites
H C Chai 4 Report post Posted July 8, 2011 Flights to Kuching will also be suspended after the last scheduled flight of July 2011. Not again?! To be honest I really have no idea how they are going to sustain the 2x weekly service with lousy connection in BWN. It is a shame they can't make it work. Feel sorry for the ground staff... Share this post Link to post Share on other sites
BC Tam 2 Report post Posted July 8, 2011 With SIN being so close to KCH, so accessible and not least offering vastly superior connectivities, how could BWN and BI have made it work ? Share this post Link to post Share on other sites
JuliusWong 0 Report post Posted July 23, 2011 To resurrect the thread: RBA flew into firestorm due to suspension of routes: http://www.bt.com.bn/opinion/2011/07/20/rba-clipping-its-wings-deliberately http://www.bt.com.bn/opinion/2011/07/22/rba-must-put-customer-first http://www.bt.com.bn/letters-editor/2011/07/12/rba-decision-axe-brisbane-flights-shortsighted http://www.bt.com.bn/letters-editor/2011/07/14/rba-should-be-our-envoy-not-cut-links http://www.bt.com.bn/opinion/2011/07/21/rba-pricing-itself-out-market Share this post Link to post Share on other sites
zeqa 1 Report post Posted July 30, 2011 National airline explores a new era in air travel Bandar Seri Begawan - While taking into account the many responses the airline received after its changes in routes in June this year, RBA is looking at a brand new outlook in the coming year with new planes and a whole new approach to public relations. In a press communiqué sent to the Borneo Bulletin Weekend, the National Airline said it is redoubling its efforts to improve the customer service offering, starting with the entry into service of the long-awaited Boeing 787 Dreamliner in 2013. In addition, they are planning to add at least one extra Airbus 320 to its short-haul fleet in Spring 2012 to ensure the airline can offer a more consistent schedule and level of service on the regional network. To further improve the customer service experience, RBA has begun the process of upgrading its passenger service system and the mechanism by which its customers can book travel online to make it easier and far more convenient for all who wish to fly RBA. Each of these represents an exciting change that will, bring about a new era in air travel for Bruneians and visitors alike. RBA Going Back To Its Roots Since its establishment in 1974, Royal Brunei Airlines (RBA) has been tasked by the government to build connectivity and enhance economic activity for the country by the provision of high-quality, competitively-priced flights to destinations in Southeast Asia and around the globe. With a modest beginning in regional air travel with routes to Singapore, Hong Kong and Malaysia, the airline expanded over the years to include long-haul destinations in the UK, Middle East, and Australia, among others. Even as the region endured an economic slowdown in the late 1990s, the company opted to invest in its future with a modernisation effort that allowed the company and its employees to prepare for the challenges of the new millennium. This aggressive strategy included opening new routes, increasing capacity on existing routes, and offering new fares and promotions to destinations across the RBA network. So what has changed to precipitate the recent announcement of route suspensions? Despite the proactive measures taken by RBA over the years, the recent industry-'wide slowdown and global financial crisis have undermined the airline's position in the market. In addition, the continuous rise in global oil prices to a very high level has forced RBA to re-examine its business model and structure in order to stay competitive. Furthermore, the traditional 'kangaroo route' between the UK and Australasia, on which RBA has depended so heavily, has become ultra competitive in recent years, especially in the face of a sharp growth in capacity from the Middle East carriers. As a result, the financial performance of the airline, particularly on long-haul, has deteriorated to a point where the existing network is simply not sustainable in its current form. Unfortunately, the only choice for RBA is to face up to the fact that change is unavoidable to ensure the very survival of the airline. In mid-June, RBA announced a series of route suspensions as a first step in the improvement process. It was not an easy first step, but a necessary one. As one would expect, there has been significant attention devoted to these developments at RBA in the media since then. And rightly so - as the future of the national carrier is a matter for not only those of us at the airline, but a matter for all Bruneians. Therefore, it is imperative that RBA responds openly to many of the questions that have been put forward in the media and, more importantly, explain what the future direction of the airline is. In that context, RBA wants to thank commentators who have taken the time and effort to contribute constructive and sincere comments in order to assist the airline at this time of challenge. Driving change in any airline, or any major concern for that matter, is never an easy task. What is being pursued at RBA is no exception. Difficult choices have to be made in the face of unique challenges, a task that was not taken lightly at RBA. Extensive research has been conducted in order to determine the optimum network for the airline, covering almost every conceivable route and frequency variation possible. The results of these studies have been consistent and clear. In order to reposition RBA onto a stable platform for the future, the airline must realign its goals and focus on once-again becoming a regional hub with strategic connectivity - a return to its roots. This means focusing on regional traffic and maintaining only the long-haul routes which are consistent with the airline's long-term objectives. Based on the analysis conducted by RBA, the data confirms that no more than nine per cent of the traffic on long haul routes either originates in Brunei or ends in Brunei. These are the passengers that contribute to Brunei's local economy - the rest simply transit Brunei on their way somewhere else and offer little in the way of economic activity. In these circumstances, it has become impossible to justify the continuation ofthe route network in its entirety, where RBA is effectively providing subsidies to over 90 per cent of the traffic while creating little or no economic value either for the airline or the country. Compare that with 75 per cent of all regional passengers who are based in or visiting Brunei and it is clear why RBA must focus on the regional market. In summary, to continue to serve the routes that have been suspended would cost RBA (and Brunei) far more than the economic benefit the airline or country would receive in return for keeping these routes open. The same is true for freight. One concern has been that suspension of long-haul would hurt the supply network for goods to arrive for local consumption. The misconception however, is that freight requires non-stop service in order to be timely. This simply is not true. Daily connections via regional hubs should be more than enough to supply Brunei with all of the goods we currently enjoy. Therefore, by making these changes and focusing on our regional network with strategic long-haul capabilities, RBA will establish a robust network for the future with a high level of integrity and convenience. In the medium term, there is a clear net benefit to Brunei. The national airline is an important symbol for Brunei which is beyond dollars and cents. However, there is a requirement' to periodically reassess the manner in which resources are deployed and to take the necessary corrective action, however difficult that may be. At the same time, RBA is redoubling its efforts to improve the customer service offering, starting with the entry into service of the long-awaited Boeing 787 Dreamliner in 2013, Insya Allah. In addition, RBA is planning to add at least one extra Airbus 320 to its short-haul fleet in spring 2012 to ensure the airline can offer a more consistent schedule and level of service on the regional network. To further improve the customer service experience, RBA has begun the process of upgrading its passenger service system and the mechanism by which its customers can book travel online to make it easier and far more convenient for all who wish to fly RBA. Each of these represents an exciting, change that will, Insya Allah, bring about a new era in air travel for Bruneians and visitors alike. In addition to broad operational changes, RBA is making progress in the all-important area of customer service. A programme has been implemented to allow us to listen more closely to suggestions from passengers and cabin crew and, more importantly, the process by which changes are made has been streamlined. This means that customers will over time notice tangible, visible changes in the customer service experience that are in direct response to the needs and concerns of those who fly on RBA. Each of these recent customer service initiatives have been developed, designed, and implemented with the hard work and incredible talent of all the staff at RBA -who are determined to put the airline onto a sustainable financial footing. RBA recognises that each and every member of staff has contributed, sacrificed, and dedicated so much of their time and effort to the airline over the years. Their continuing loyalty and support are very much appreciated as this difficult process of realignment continues. Overall, RBA is confident that, given time, the strategic implementation of each of the initiatives mentioned above will achieve positive changes for the airline, our employees, Brunei, and ultimately the passengers who fly RBA every day, Insya Allah. Already, the airline is one step closer to its ultimate goal with newer planes, improved efficiency, and better customer service but there remains a long road ahead. With the help of RBA's employees and customers, the airline will return to the role that has supported its goals from its very inception -providing a high-quality travel experience at a reasonable price, safely and efficiently. In the meantime, RBA looks forward to having the opportunity to serve you, the travelling public of Brunei, in the not-too-distant future, and acknowledges, your patience in providing the time and space necessary to complete this difficult but absolutely necessary process of transformation. -- Courtesy of Borneo Bulletin Share this post Link to post Share on other sites
BC Tam 2 Report post Posted July 30, 2011 Based on the analysis conducted by RBA, the data confirms that no more than nine per cent of the traffic on long haul routes either originates in Brunei or ends in Brunei. These are the passengers that contribute to Brunei's local economy - the rest simply transit Brunei on their way somewhere else and offer little in the way of economic activity. In these circumstances, it has become impossible to justify the continuation ofthe route network in its entirety, where RBA is effectively providing subsidies to over 90 per cent of the traffic while creating little or no economic value either for the airline or the country You can do analysis any which way and any number of times, what is more important is the manner those results are interpreted and acted upon - and the term 'impossible' employed reflects poorly somewhat upon the determination to make things work The author would do well to analyse too how transitting passengers have contributed to successes of SQ@SIN, CX@HKG and EK@DXB. Doubt if any of them would have even survived without transit pax in fact Share this post Link to post Share on other sites
Ashraf 0 Report post Posted July 31, 2011 the fact is RBA will not survive... 1/ the location of BWN is not attractive as compared to KUL, SIN or BKK 2/ it's a 'dry' airline 3/ nothing to do in BWN 4/ no local market 5/ they will take 10 years to be where the other middle eastern carriers were 5 years ago. 6/ too much govt intervention anything I missed out? Share this post Link to post Share on other sites
Aaron Goh 1 Report post Posted July 31, 2011 (edited) maybe some airlines arent there to make money. Edited July 31, 2011 by Aaron Goh Share this post Link to post Share on other sites
KC Sim 2 Report post Posted July 31, 2011 maybe some airlines arent there to make money. BINGO !!! Royal Brunei Airlines was established just to give the sultanate a "flag carrier" ... and for years, I don't remember them ever opening its financial data to anyone. And I don't think it has made any form of profit for most of its existence. For a while, it seems they were beginning to be commercially-driven with its fleet of B757s anad B767s ... and then they are where they are today. It makes me wonder how Royal Brunei Airlines will survive ... does the airline even have a strategy to carve out its own niche? I sure hope the airline survives ... having memory of myself thoroughly enjoying its service on the FRA-DXB-BKK sector in 1996 ... and also having fond memories of photographing its beautiful planes. KC Sim Share this post Link to post Share on other sites
Izanee 0 Report post Posted July 31, 2011 Brunei is too small to support a major airline. I think they are right in focusing on regional flights plus London/Oz. Share this post Link to post Share on other sites
Mushrif A 3 Report post Posted August 1, 2011 the fact is RBA will not survive... 1/ the location of BWN is not attractive as compared to KUL, SIN or BKK 2/ it's a 'dry' airline 3/ nothing to do in BWN 4/ no local market 5/ they will take 10 years to be where the other middle eastern carriers were 5 years ago. 6/ too much govt intervention anything I missed out? You missed out quite a bit: - dry airline: folks forget that AK is virtually a dry airline too, and it is thriving. BI is not in a bad shape because it is a dry airline. - No local market: it has a not-very-big local market but the market does exist. The fleet/ routes/ destinations should however reflect the demographics. - Too much govt intervention: it is a government owned entity. What do you expect? It doesn even have to be transparent with its financials. That's why it will continue to survive even when it has not made any money.It is effectively an extension of the country's infrastructure. Share this post Link to post Share on other sites
