RBA suspends AKL, BNE, PER, SGN and KCH

[Peter Smith 1]

Rumours around suggesting that Perth may not be suspended after all...watch this space

[Mushrif A 3]

Rumours around suggesting that Perth may not be suspended after all...watch this space

 

Intensed lobbying in the background?

[Kris Kim 0]

Hopefully MEL will stay for at least another 2-3 years, they haven't announced anything on MEL, so hopefully they will still keep MEL!

 

What are the chances of adding more capacity? They can increase the number of frequency and they might get more business pax? A little advertising won't hurt either!

[Ignatius 4]

Rumours around suggesting that Perth may not be suspended after all...watch this space

 

How good is the load anyway? I'll be sad to see this one leave Perth

[JuliusWong 0]

Like others had stated, RBA is looking itself as a regional players now. Its better to devote limited resources at a small area, rather than fighting a losing battle with the biggies~~~

 

Some notable examples are Gulf Air, Czech Airlines (CSA) and Malev Hungarian Airlines, all which were/are bleeding money profusely over the past few years. At the same time, they have dropped or are dropping their long haul routes and retiring off their long haul fleet.

 

Malev is now all Boeing 737 fleet and CSA is on mix of A320 and B737 as well.

[Pieter C. 5]

CSA's 737's are being phased-out of sold and the -400's are transferred to their 'holiday'unit...main jet-type are 319/320/321 aircraft with ATR's for regional flights...

[JuliusWong 0]

After a month plus of silence, the truth is unveiled.

 

RBA is heading to becoming a regional carrier, like Malev Hungarian or Czech Airlines:

 

'RBA tweaking fleet to focus on short-haul traffic'

 

Goh De No

BANDAR SERI BEGAWAN

 

Tuesday, October 11, 2011

 

ROYAL Brunei Airlines (RBA) is looking to add more short- to medium-range Airbus A320s to its fleet and break the lease for its long-range Boeing 777s as part of a strategy to focus on short-haul routes, a reliable aviation website yesterday said.

 

Aviationweek.com, an information and services provider in the industry, quoted RBA executives as saying the airline is trying to persuade Singapore Airlines (SIA) to let RBA break the lease and return some of the 777s.

 

Currently, RBA has on lease six Boeing 777s SIA, but since RBA is cutting routes to Auckland, Brisbane, Perth and Ho Chi Minh City on October 30, it will not need all the 777 jets, the report said.

 

RBA in a statement released earlier this year, said that it was adding 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.

 

Aviationweek.com said RBA has no A320s on order, which means it is likely to be on the market for a lease.

 

As for the new Boeing 787 Dreamliners, RBA will maintain its commitment to take delivery of the long-range fuel-efficient aircraft, the first of which is expected to arrive in 2013, the online report said.

 

Citing database from aviation industry information provider Ascend, the online report said the RBA has five 787s on order.

 

More info: http://www.bt.com.bn/business-national/2011/10/11/rba-tweaking-fleet-focus-short-haul-traffic

[Peter Smith 1]

Perth will be suspended for atleast the northern winter timetable - strong indications suggest it will be reinstated for the northern summer

[Cire 0]

Talking about joining the red sea..RBA's foray into the short haul strategies is dumbfounded as it wont' do it any good apart from getting busy with little earnings in return.

Who would want to pay extra monies for short routes where there's plenty others of airlines that offer good affordable tickets, and perhaps comparatively good services?

 

Long haul route is the only way for RBA to make monies because that's the sectors that are growing in traffic. Passengers are usually more affluent and could afford the tickets for a little more money.

A lot of Brunei folks traveled to Australia, London and Europe. That's the market they should capture.

 

Why bother to build the fleet if it does not intend to make money but merely just have a presence in the industry?

I would be more worried of such airline as this non-competitive attitude can translate into shoddy up keeping of the fleet.

 

In addition, I believe there's plenty of hands meddling in the affairs of the airline.

Edited October 11, 2011 by Cire

[Mushrif A 3]

A lot of Brunei folks traveled to Australia, London and Europe. That's the market they should capture.

 

"A lot" is actually miniscule from a global perspective.

 

If SQ & MH are threatened by the likes of EK, QR, EY etc, on the long haul transit market, what more a niche player like BI. BI can never compete with those giants and traditional legacies on the product offering, FFP, schedules, frequencies and network.

 

BI should only be seen as part of the nation's infrastructure (i.e. tough to get it to make lots of money, given tiny home market)

[Christopher Lim 0]

MAS is not that bad

 

you are right. MAS is a lot worse. RBA is a small white elephant. MAS is a huge white elephant.

 

I interviewed for a job with their TMO. Even they themselves felt that they could do nothing to improve things at MAS. Tony, milk your cash quick from MAS quick and let the structure fall.

[Arzman 0]

Talking about joining the red sea..RBA's foray into the short haul strategies is dumbfounded as it wont' do it any good apart from getting busy with little earnings in return.

Who would want to pay extra monies for short routes where there's plenty others of airlines that offer good affordable tickets, and perhaps comparatively good services?

 

Long haul route is the only way for RBA to make monies because that's the sectors that are growing in traffic. Passengers are usually more affluent and could afford the tickets for a little more money.

A lot of Brunei folks traveled to Australia, London and Europe. That's the market they should capture.

 

Why bother to build the fleet if it does not intend to make money but merely just have a presence in the industry?

I would be more worried of such airline as this non-competitive attitude can translate into shoddy up keeping of the fleet.

 

In addition, I believe there's plenty of hands meddling in the affairs of the airline.

 

Don't lose hope yet, in year 2015, all ASEAN carriers can fly freely within ASEAN; BWN to KUL to BKK and return with full fifth freedom in KUL, or BWN to CGK via KUL or via SIN.

 

You can take RBA from KUL to CGK/BKK or fly with TG from KUL to MNL. A small player like RBA would be able to find its own niche market.

 

With right pricing, we dun need LCCs

[Jim Liu 0]

After a month plus of silence, the truth is unveiled.

 

RBA is heading to becoming a regional carrier, like Malev Hungarian or Czech Airlines:

 

'RBA tweaking fleet to focus on short-haul traffic'

 

How does this explains the reduction in short-haul traffic due to start from Feb 2012?

 

http://airlineroute.net/2011/10/11/bi-feb12/

[Mushrif A 3]

How does this explains the reduction in short-haul traffic due to start from Feb 2012?

 

http://airlineroute.net/2011/10/11/bi-feb12/

 

"To focus on" something doesn't necessarily mean that particular something will be expanded, but it just means less attention on other things.

[alberttky 0]

"To focus on" something doesn't necessarily mean that particular something will be expanded, but it just means less attention on other things.

 

I think they should just focus on shutting down the company.

 

Brunei International Airport upgrade to start soon

 

BANDAR SERI BEGAWAN - The construction for the modernisation project of Brunei International Airport will begin soon, as His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam approved the awarding of the construction contract yesterday.

 

The Brunei Economic Development Board (BEDB) and Department of Civil Aviation (DCA) under the Ministry of Communications, jointly announced that the contract for the Modernisation of Brunei International Airport Terminal project will be implemented by a Malaysian and Bruneian joint venture company.

Click here to find out more!

 

The project is expected to help develop Brunei as an air logistics hub while doubling passenger capacity upon completion in 2014.

 

Dato Paduka Hj Ali Hj Apong, deputy minister at the Prime Minister's Office and Chairman of the board, said he hoped that this project would set a benchmark for service excellence and operational efficiency.

 

"Through improved security systems and facilities with greater capabilities, it will not only help promote and develop Brunei as a competitive air logistics hub, but also to help contribute to the vibrant growth of sectors such as tourism, trade as well as investments,"said Dato Hj Ali added.

 

Haji Omarali Hj Mohd Ja'afar, director of the DCA, said that ultimately, the project will double the airport's annual capacity from 1.5 million passengers to three million passengers by 2014.

 

"This project is also in line with the department's initiative in introducing and implementing airport incentives programme to encourage existing and new air carriers towards the development of airport connectivity, flight frequency and passenger traffic at Brunei International Airport," he said.

 

The BEDB-DCA joint statement said that the project will be carried out by Trans-Resource Corporation Sdn Bhd of Malaysia and Swee Sdn Bhd of Brunei, following an international tender, which attracted interest of contractors from Asean countries, China, Japan, Korea, India, Turkey and the United Arab Emirates.

 

"The decision to award (the contract) to the consortium followed a detailed evaluation by the BEDB and supported by the representatives from DCA, Ministry of Communications and Ministry of Development, and was based on the competitiveness of the tender submitted as well as the capabilities of the consortium," the joint statement said.

 

The project aims to improve the existing conditions and operations while creating an iconic visual image of the airport building.

 

The statement added that at the end of the project, it is envisaged that the overall look and feel of the airport will be 'modernised' with the introduction of an open concept of high ceiling space for the new departure and arrival halls, with highly improved security features and facilities such as additional retail areas and car parking spaces.

 

Tran-Resources Corporation Sdn Bhd is a registered Class A Contractor with Pusat Khidmat Kontraktor (PKK) and a Grade G7 Contractor with Construction Industry Development Board Malaysia with over 25 years of experience in the construction industry.

 

Some of their notable airport project experience includes the upgrading of Kuala Terengganu Airport, Sibu Airport and Labuan Airport. Bruneian Swee Sdn Bhd, is a reputable contractor registered with the Public Works Department of Brunei Darussalam as a Class VI Licence contractor.

 

Construction works for the modernisation of Brunei Internatinal Airport Terminal are expected to commence shortly and to be completed within three years.

 

The BEDB and DCA, the selected contractor together consultants for the project, Changi Airport Consultants Pte Ltd - AECOM Asia Company Ltd consortium, will undertake to keep the public and relevant parties informed of upcoming works at the airport and to ensure smooth airport operation during the course of the construction works.

 

CAI previously reported that the project is expected to cost around $130 million.

 

http://www.relax.com.sg/relax/news/785548/Brunei_International_Airport_upgrade_to_start_soon.html

 

What's the point of upgrading the airport when the national carrier is in shambles...

[Jim Liu 0]

"To focus on" something doesn't necessarily mean that particular something will be expanded, but it just means less attention on other things.

Even if they're not expanding, you'd expect they would maintain existing frequencies.

[Mushrif A 3]

I think they should just focus on shutting down the company.

 

 

You guys keep forgeting that BI is effectively one of the infrastructures of the country, not a real commercial enterprise.

[alberttky 0]

You guys keep forgeting that BI is effectively one of the infrastructures of the country, not a real commercial enterprise.

 

[CH Teo 0]

You guys keep forgeting that BI is effectively one of the infrastructures of the country, not a real commercial enterprise.

 

Apparently all national carriers to be labelled in that way......

[JuliusWong 0]

Royal Brunei Airlines is a form of public transport for Brunei, not for profit purpose.

 

Since they can't support long haul, therefore might as well focus on short haul routes. The catchment area for BI is too small to support profitable airline business in Brunei. The reduction in regional flight most probably reflects the reduction on reliance on transiting pax.

 

Too much reliant on connecting traffic is also unsustainable in long term as BI is competing with n number of airlines which are more prestigious offering much better services.

[alberttky 0]

Royal Brunei Airlines (RBA) is preparing to expand capacity within Asia following the acquisition of an additional A320 while reducing the size of its widebody fleet to match its new and smaller long-haul network. The adjustments come as RBA implemented, at the beginning of last week, its restructuring plan, focussing on local traffic and long-haul to short-haul connections rather than continuing in the intensely competitive 'Kangaroo route'. RBA sees five A320s and five B787s, which are expected to replace its six B777-200ERs by the end of 2014, as an ideal fleet for executing its new strategy over the medium to long term.

 

RBA unveiled in Jun-2011 a major network restructuring which included axing five routes prior to the start of the northern hemisphere winter schedule – Auckland, Brisbane, Ho Chi Minh, Kuching and Perth. The restructuring leaves RBA with only 12 scheduled year-round destinations, including three long-haul destinations (Dubai, London Heathrow and Melbourne; excludes seasonal service to Jeddah) and nine short-haul destinations (Bangkok, Hong Kong, Kota Kinabalu, Jakarta, Kuala Lumpur, Manila, Singapore, Shanghai and Surabaya).

 

The changes were initiated after RBA incurred big financial losses over the last several years. The long-haul network was particularly unprofitable and the Brunei Government saw little need to continue funding the network given that over 90% of its long-haul passengers were transit passengers.

 

RBA’s long-haul network has been served over the last year with six B777-200ERs, which are being leased from Singapore Airlines (SIA) as an interim B767 replacement until RBA’s B787s are delivered. The two-year leases on the B777-200ER do not start expiring until mid-2012 but RBA’s just completed network restructuring now leaves the carrier with more widebodies than it currently requires.

 

Royal Brunei to receive first B787-8 in 3Q2013

 

RBA has not been publicly commenting about potential early returns of some of its B777s as negotiations with SIA continue. RBA also has not yet publicly announced delivery dates for the five B787s on order. But industry sources say RBA is seeking a compromise with SIA in which it would extend the leases on some of the B777-200ERs while returning some aircraft early. The extended leases are needed to line up with the B787-8 delivery dates Boeing has recently provided RBA, which according to sources start in Aug-2013 and go through 2014.

 

RBA is in line to be the first B787 operator in Southeast Asia and is now working on selecting interior products for the aircraft, including lie-flat business class, which will represent a significant improvement on the ageing product inherited with the SIA B777-200ERs. RBA deputy chairman Dermot Mannion told CAPA on the sidelines of last week’s Association of Asia Pacific Airlines (AAPA) assembly in Seoul that he is “comfortable” with a fleet of five B787s, although the carrier’s two remaining long-haul routes – Bandar Seri Begawan-Dubai-London (daily) and Bandar Seri Begawan-Melbourne (four weekly flights) – do not require so many widebodies. He explains the carrier also plans to use its B787s on some Asian frequencies such as Shanghai to meet growing demand on its Asian routes.

 

Delivery of ex-Tiger A320 allows RBA to increase focus on Asian network

 

Mr Mannion said RBA also has committed to leasing a fifth A320 family aircraft to increase capacity on the carrier’s Asian routes. “We our content to refocus attention on Asia and downsize long-haul,” Mr Mannion says.

 

RBA currently operates two A319s and two A320s. Mr Mannion says the additional A320, which is coming out of the fleet of Singapore-based Tiger Airways and is being leased from CIT, will be delivered in Mar-2012.

 

While RBA increases its focus on Asian routes, Mr Mannion explains that only “strategic long-haul” routes have been retained. The Bandar Seri Begawan-Dubai-London Heathrow route is considered strategic as government-owned RBA believes it is important to retain a presence in the London market. Mr Mannion says the stop in Dubai will be kept, even after RBA takes its B787-8s, as the pick-up rights in Dubai makes the route viable.

 

While Melbourne was only launched in Mar-2011, Mr Mannion says “Melbourne is strategically important for us in future”. He points out that Melbourne is the fastest growing market in Australia and RBA sees opportunities to offer connections between Melbourne and its Asian destinations.

 

RBA no longer interested in serving kangaroo route

 

In addition to Brisbane and Perth, RBA at one point also served Sydney and Darwin. But RBA no longer has a need to maintain multiple links to Australia as it has exited the kangaroo route.

 

RBA was a niche player in the kangaroo route for several years but it was never a profitable proposition as RBA had to offer very low fares to entice passengers to transit in both Dubai and Bandar Seri Begawan. Competition in the UK-Australia market also increased significantly in recent years due to the rapid expansion of the Gulf carriers, resulting in even bigger losses across RBA’s long-haul network. “A better business model is to feed short-haul,” Mr Mannion says, adding that pursuing long-haul to long-haul intercontinental connecting traffic is not a viable proposition these days for smaller carriers.

 

Mr Mannion says RBA’s remaining Asia routes have a much different dynamic as about 75% of traffic on these flights are local passengers heading to and from Brunei, a stark contrast to the less than 10% of local passengers that flew the carrier’s pre-restructuring long-haul network. The new strategy the former Aer Lingus CEO has put in place at RBA involves focussing primarily on local demand while using the roughly 25% of remaining seats on Asian flights to pursue intra-Asia connections as well as Asia-Melbourne connections.

 

Outlook for Royal Brunei improves significantly with more realistic network strategy

 

Given the tiny size of its local market, it is unlikely Brunei will be able to support a private carrier anytime in the foreseeable future. But the Government is finally pursuing a logical strategy that should allow its perennially loss-making carrier to at least approach breakeven. It made little sense for the Brunei Government to continue to pour capital into a strategy which resulted in heavily subsidising passengers which were not heading to and from Brunei.

 

The new strategy that has been implemented by Mr Mannion should by and large meet the nationalistic needs, with Brunei residents being able to continue flying RBA for frequent trips within the region as well as to the Middle East, Melbourne and London. Other destinations, which by large have below 20 passengers per day on an O&D basis, can be sufficiently served through codeshares and interline partnerships.

 

While small, RBA will continue to play an important role in its local market, where it still has 75% market share despite the recent network cuts (see Background information below). The introduction of state-of-the-art B787s in 3Q2013 will also help put the carrier on the map and draw more tourists to Brunei and the neighboring Malaysian state of Sabah, both of which are up and coming ecotourism destinations.

 

http://www.centreforaviation.com/analysis/royal-brunei-airlines-plans-fleet-adjustments-to-reflect-new-strategy-and-restructured-network-62127

[Arthur W. 0]

He explains the carrier also plans to use its B787s on some Asian frequencies such as Shanghai to meet growing demand on its Asian routes.

 

BKI?

[nastar 0]

Update about Robert Yang, former CEO of Royal Brunei:

He is now our SVP (Senior Vice President) of Qatar Airways for EASWP - East Asia & South West Pacific, Effective 19Nov11, based in SIN.

[JuliusWong 0]

Update about Robert Yang, former CEO of Royal Brunei:

He is now our SVP (Senior Vice President) of Qatar Airways for EASWP - East Asia & South West Pacific, Effective 19Nov11, based in SIN.

 

Thanks for the update, nastar. He is back in his home country. Supposedly he will churn out more routes to China.

[alberttky 0]

Thanks for the update, nastar. He is back in his home country. Supposedly he will churn out more routes to China.

 

Hopefully he'll churn out more routes out of SIN!