JuliusWong 0 Report post Posted January 30, 2012 We will be seeing at least 1 BI 772 used for the MEL daily service, which will be sitting in MEL for about 16 Hours! But BI really has no use for the extra 772's now it had chopped a good chunk of its long-haul network, but its better to have them sitting there then running loss making routes. Agree with you soorox. Perhaps MEL Airport Authority really offer BI a good deal to park for such a long time?? On the same note, guess SQ didn't allow allow BI to return those B777s early. Currently all the six B777s are rotated throughout the network, including BKI. Share this post Link to post Share on other sites
JuliusWong 0 Report post Posted March 19, 2012 (edited) Royal Brunei settles in for medium term with expanded Australian services 19th March, 2012 Outline Melbourne goes to daily same-time service with connections optimised for Dubai and London Heathrow Melbourne route also optimised for Manila, Bangkok and Kota Kinabalu connections Losses stemmed but profitability awaits Reduced international network allows for returning of two 777s 787s to further help stabilise finances Regional emphasis right strategy for Royal Brunei Royal Brunei Airlines (RBA) this month is increasing capacity to Melbourne and adjusting the schedule there in a bid to generate scale and improved financial performance. The government-owned carrier is settling into its restructured route network that in mid-2011 saw many loss-making long-haul routes eliminated, which RBA deputy chairman Dermot Mannion says is helping create financial stability as costs decrease and cash flow improves. The carrier will continue to monitor its regional network but is unlikely to open new destinations, preferring instead to add capacity when opportunities arise. The restructure left RBA with significant excess capacity on its widebody Boeing 777 fleet but RBA later this year will return two of its six leased 777s and retain the rest until 787s arrive in late 2013. RBA expects the aircraft, combined with a new interior and redevelopments at Bandar Seri Begawan Brunei International Airport, will give the carrier a boost after high fuel prices and increased competition made it undertake the restructure and staff retrenchment. Melbourne goes to daily same-time service with connections optimised for Dubai and London Heathrow RBA launched four times weekly service to Melbourne in Mar-2011, complementing its existing services toBrisbane and Perth as well as New Zealand’s Auckland, all three of which were cut during the restructure. RBA said it was keeping the Melbourne service given the city’s strategic importance and growth rate – the largest internationally in Australia. From 25-Mar-2012, RBA will bring the service to a daily, same-time offering. RBA’s initial schedule was erratic, with two flights leaving past midnight and two during the day. Mr Mannion, speaking earlier this year when announcing the increase, explained the change with an industry adage: “If it’s worth doing, it’s worth doing daily.” Although Melbourne is a monopoly route for RBA, transfer traffic accounts for 90% of RBA’s long-haul service, and the Melbourne flight is timed to connect with RBA’s daily Brunei-Dubai-London Heathrow service. RBA’s long-haul network is built around its London Heathrow slots, creating a lengthy overnight stay in Melbourne for the aircraft, but Mr Mannion says RBA’s long-haul fleet has slack and he is not concerned about under-utilisation – especially as profitable long-haul routes prove elusive. See related articles: Royal Brunei Airlines adjusts fleet to reflect new strategy and restructured network Royal Brunei Airlines shrinking to remain competitive RBA had competed in the kangaroo route for traffic between Australia and London, but typically had to price below cost given the two stops in Brunei and Dubai. Its restructure saw it turn away from the very competitive, and often low-yielding kangaroo route, but Mr Mannion says it is worth keeping the connection. Potentially more lucrative is the carrier’s one-stop service to Dubai from Melbourne. Only one of Emirates’ three daily flights from Melbourne goes non-stop to Dubai; the other two connect via Kuala Lumpur and Singapore. There is less competition to Dubai than Europe, and Australia-Middle East fares – on Emirates, Etihad or Qatar Airways – are often slightly less than extending the trip to Europe. The demand profile works in RBA’s favour as Mr Mannion says the carrier has strong demand between Dubai and London owing to a good traffic base in Dubai it has accumulated since launching services in 1988. Cargo is also a notable factor for RBA’s Melbourne route. Although most cargo out of Australia is produce and not higher value items, RBA has had to leave cargo on the ground at times. RBA's capacity increase will see the Southwest Pacific region tie with Europe as holding the carrier's third largest number of seats by destination. RBA's Southwest Pacific capacity currently only sees the four-weekly Melbourne services. Melbourne route also optimised for Manila, Bangkok and Kota Kinabalu connections A greater significance for RBA’s Melbourne route is onward connections in Asia, which more typically turns a profit for the airline. About 75% of the traffic on intra-Asia flights is O&D, with the remaining 25% accommodating intra-Asia connecting passengers and long-haul transfer traffic. RBA’s traffic is heavily weighed towards the VFR and ethnic markets. Mr Mannion says demand is particularly strong to the Philippines, where RBA serves Manila daily. While Philippine Airlines operates seven weekly services from Melbourne, Jetstar has also seen the potential of the Filipino market with four weekly services from Darwin. Filipino LCC Cebu Pacific intends to launch long-haul flights to Australia as well as the Middle East in late 2013. See related article: New Cebu Pacific long-haul operation could push out Philippine Airlines but may require hybrid model Mr Mannion also says Bangkok and Malaysia’s Kota Kinabalu are in demand connections. The Australia-Thailand market will see reductions later this month when British Airways (BA) ends 747 service between Bangkok and Sydney while Qantas downgrades its Bangkok-Sydney service from a 747 to an A330. BA and Qantas had used the route primarily for onward traffic to London, so while capacity is being reduced, Qantas will now have to place greater emphasis on selling Bangkok as an O&D market and not a transfer point. RBA’s restructure intentionally trimmed the carrier’s size but not service... Out of Melbourne Jetstar, in addition to Thai Airways, operates to Bangkok. RBA has had a reputation for being a discount full service carrier and intends to maintain its position of competing with the likes ofAirAsia X and Jetstar in offering full service carrier service for less, even if its operating cost is higher. Mr Mannion said RBA’s restructure intentionally trimmed the carrier’s size but not service. RBA over the last year has grown service to Kota Kinabalu, which is part of Malaysia but like Brunei on Borneo. The city, a hub for ecotourism growing in popularity, is one of the fastest growing airports in Malaysia. RBA’s capacity has increased from eight weekly services in 2011 to presently 15 weekly services. One destination RBA’s Melbourne flights do not connect well to is Singapore, but Mr Mannion says the market, which RBA serves with two daily flights, is one of the carrier’s highest in terms of point-to-point traffic. “We have a large proportion of our traffic originating in Brunei or destined for Brunei, so that route to Singapore doesn’t need external feed. It’s a substantial trunk route,” Mr Mannion says. RBA this month is seeing the introduction of another A320 that brings its Airbus narrowbody fleet to five. Expansion will mainly come on adding frequency to existing destinations than open new routes. Losses stemmed but profitability awaits RBA’s long-haul network was almost entirely transfer traffic and loss-making; the government was effectively subsidising traffic that did not benefit the country and decided to end that standing. “Our ownership, and rightly so, doesn’t see any future in incurring losses on routes where over 90% of the traffic doesn’t connect to Brunei” as an origin or destination, Mr Mannion said. “There’s no strategic rationale at all for it. We’re now operating in an environment where our route network needs to stand much more on its own two feet.” Although RBA would like to increase the percentage of local traffic on its long-haul flights, Mr Mannion does accept that transfer passengers will comprise the far majority. “I think 20% [local] would be a terrific target but I very much doubt if you could do more than that,” he said. “Let’s be realistic. Brunei is a small market. There are only 400,000 people there. In order to launch the kind of international operations we have, there is always going to have to be a significant reliance and dependence on transfer traffic, and we don’t apologise for that.” The small market size Mr Mannion mentioned is reflected in the capacity profile of Brunei Airport, the country's sole passenger airport and where it accounts for 70% of all capacity. Only four other airlines currently serve Brunei. While Mr Mannion says RBA’s remaining long-haul routes from the restructure – Dubai, London and Melbourne – are important for the airline, he acknowledges they are important for the Government too. RBA is not publicly discussing a return to profitability, but Mr Mannion says the restructure is bringing stability and reducing costs. Further savings will be achieved when RBA returns two of its 777s later this year. Reduced international network allows for returning of two 777s All five of RBA’s 787s are due for delivery by the end of 2014, by which point most of the remaining 777s will have been returned... RBA leased six 777-200s from Singapore Airlines (SIA) in 2010 to allow it to retire ageing 767s, which were supposed to be directly replaced by 787s, which have encountered numerous delays. RBA’s reduced international network will allow it to return two of the leased 777s – one third of its long-haul fleet – in mid-2012 as the original contract stipulated, and not earlier as RBA had explored. All five of RBA’s 787s are due for delivery by the end of 2014, by which point most of the remaining 777s will have been returned. RBA will have flexibility with the 777 fleet in the event of further 787 delays. 787s to further help stabilise finances RBA’s first 787 is due around Aug-2013, although further delays are likely given recent Boeing delays for other customers. The aircraft will feature a new interior – its leased 777s use SIA’s old interior – RBA is currently developing. Mr Mannion says RBA wants to connect the interior with the themes of Brunei – tranquility, rejuvenation, peace – as part of an effort to build local traffic into Brunei. RBA is the 787’s launch operator in southeast Asia and, assuming current delivery schedules, expects its entire long-haul network to be flown by 787s by the end of 2014. Its London route will remain a one-stop service via Dubai given the traffic importance, Mr Mannion said. Even if RBA wanted to operate non-stop, Mr Mannion said, the 787 would not be able to fulfill the mission. “The 787 is not capable, and nor designed to be. We never bought it with that in mind.” The aircraft will bring not only a step change in efficiency but also reduced capacity from the 777-200s, which will better match RBA’s demand profile. The 787-8, the only variant RBA has ordered, seats 240 in a standard two-class configuration while the 777-200 seats 400 in a standard two-class configuration. (These figures are typically high; RBA seats 285 in its 777-200. Of the 787 configurations airlines have announced so far, most are under 200 seats in a two-class configuration.) See related article: Announced 787 configurations RBA’s order for five 787s provides more than coverage to accommodate its long-haul schedule. Mr Mannion previously told CAPA he expected to operate the 787 on high-demand Asia routes like Shanghai. Under more hubristic times RBA had agreed with Boeing to take 777-300ERs, but Mr Mannion said the reduced long-haul flying has eliminated the need for the aircraft. “RBA did have a contract for four 777-300ERs but we will not be taking delivery of those aircraft,” he said. “We’re in negotiation with Boeing how to resolve that.” Regional emphasis right strategy for Royal Brunei Airlines globally are increasingly realising that supporting unprofitable long-haul flights is unsustainable, especially as fuel prices and competition increase. RBA has the right strategy to emphasise regional routes. While the additional Melbourne flights will add significant long-haul capacity, history shows daily services and same-time frequency do let airlines leverage scale. RBA’s short-haul network is more robust and the carrier will be carefully watching its markets to see where it can add capacity. The 787 offers the biggest opportunity for RBA to improve its long-haul network, provided the Brunei Government is still willing to accept Dubai, London and Melbourne as strategic destinations. Source: http://www.centrefor...-services-70052 Edited March 19, 2012 by JuliusWong Share this post Link to post Share on other sites
Isaac 0 Report post Posted March 20, 2012 (edited) Good to know that they remain committed to BKI. It is a very decent airline and most of their cabin crews are just as friendly and polite as MAS'. Perhaps they should have leased the 332 last time instead of the 772... I checked their return air fare to MEL from BKI and it is only RM20 cheaper than MAS, not exactly attractive. As an Enrich member, i will most likely pick MAS over BI if i were to fly to MEL from BKI. Hopefully they will price their air fare more competitively out from BKI... Edited March 20, 2012 by Isaac Share this post Link to post Share on other sites
Waiping 12 Report post Posted March 20, 2012 Good to know that they remain committed to BKI. It is a very decent airline and most of their cabin crews are just as friendly and polite as MAS'. Perhaps they should have leased the 332 last time instead of the 772... I checked their return air fare to MEL from BKI and it is only RM20 cheaper than MAS, not exactly attractive. As an Enrich member, i will most likely pick MAS over BI if i were to fly to MEL from BKI. Hopefully they will price their air fare more competitively out from BKI... Not if they fly their spanking new B787 there. Share this post Link to post Share on other sites
Isaac 0 Report post Posted March 20, 2012 Not if they fly their spanking new B787 there. Good point! Share this post Link to post Share on other sites
JuliusWong 0 Report post Posted March 31, 2012 RBA to fly Boeing 787 to Melbourne starting August 2013 MELBOURNE, AUSTRALIA Saturday, March 31, 2012 MELBOURNE is and will remain a key destination for Royal Brunei Airlines (RBA), with the flag carrier's Boeing 787 Dreamliner scheduled to start flying to the city down under in August 2013, its deputy chairman Dermot Mannion said yesterday. "This is an important step. With the Boeing 787 Dreamliner, RBA will be one of the first airlines in South East Asia to introduce the 787. We will bringing it right here to Melbourne starting in August 2013," said Mannion during an event celebrating RBA's 1st anniversary operating the Bandar Seri Begawan-Melbourne route at Melbourne Zoo. "It is a very exciting project for the airline. It will be one of the first of that aircraft type to visit this airport," said Mannion, adding that it is in line with the emergence of Borneo as a travel experience and Brunei as its gateway. "It's been a tough time in the airline industry and we have not been immune to that, and indeed our ownership has asked us to take a good hard look in the recent times about the future of our organisation and which destination we should serve," said Mannion. "I think, as you all will discover, the 787 is indeed the future of air transport and RBA will be in the vanguard of that effort." The deputy chairman also touched on the flag carrier's re-branding efforts during the event, showing the audience a chart comparing the world's premium carriers and low cost carriers, in which Brunei is in the middle. "(We are) offering a product (which) offers value for money, a product that we believe will considerably be better than the rest of the low cost community in this region and beyond, but almost to the level similar to the premium airlines," said Mannion. "That's the kind of product aspiration that we've got for RBA in the future, we think its a good value proposition for you, the agency and the community and we're very much hoping that you will get good feedback from your passengers as they experience RBA, what we have to offer." Mannion added that RBA is currently involved in promoting a joint centre holiday program between Brunei and Kota Kinabalu, as a result of the airline being voted Airline of the Year 2011 from the state of Sabah in Malaysia. "We will continue to be the largest operator to Kota Kinabalu and we believe that a holiday with some eco-tourism and cultural experience in Brunei followed by perhaps the more traditional resort experience in Sabah is very much the way to go and we believe that would be an attractive product offering for you and your customers here in Melbourne," said Mannion. "We believe we got the right product at the right price using the right aircraft to bring a very good quality of service to you all in the state of Victoria," he added. The last week has proven to be challenging for the national carrier, said Mannion, not only with the launch of Melbourne daily service but also the migration to a brand new, state of the art reservation system. "This is a huge project for our staff here in Melbourne," he said. Permanent Secretary of Ministry of Communications Dato Paduka Hj Alaihuddin POKDG Hj Mohd Taha, who was also present during the event, said that amidst the growing turbulence and uncertainty in the current global aviation market, the airline's operating environment will always be assessed accordingly with considerations to factors ranging from fuel charges or fuel prices, new aircraft delivery impacts on capacity, aircraft utilisation, revenue generation and consolidation. "Airlines around the world including Brunei would have to endure such changes and adjust themselves rapidly to the dynamics of global airline industry," he said. The permanent secretary went on to say that Brunei International Airport is currently undergoing its expansion project. Having commenced earlier this month, the project is expected to be completed by the end of 2014. The upgrade will improve the exisiting comfort and operations while creating an iconic visual image of the airport building, he said. "It is envisaged that once completed the capacities and activties of the airport will be increased with highly improved customer comfort, security features and facilities." The Brunei Times Source: http://www.bt.com.bn/business-national/2012/03/31/rba-fly-boeing-787-melbourne-starting-august-2013 Share this post Link to post Share on other sites
Waiping 12 Report post Posted March 31, 2012 Let the good times roll! Share this post Link to post Share on other sites
