Turbulence August 2014

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PRODUCED BY SEAN SIMMONS TRAVEL

Welcome to THE AUGUST Edition!

A note from the editor....

A big shout out to all who supported and celebrated with us at the AFTA National Travel Industry Awards on July 19th. To achieve a top 5 ranking in 2 categories, Best Agency Corporate (single location) and Best Agency Manager (corporate) for our leader, is something we think we can shout about - LOUD! 2 years in a row – 2 full years in operation as an independent agency, we are VERY proud! But we won’t let it go to our heads, so back to work it is.....

PREPARE FOR TAKE OFF! The new look Sean Simmons Travel online store will be opening very soon!

What’s been happening? Our new corporate online booking tool, AeTM, powered by Amadeus, is now operational, and being rolled out to those who require it. Please ask for more information!

Watch this space for your ticket to fantastic savings on Antler luggage and Go Travel accessories to suit all your travel needs. Meanwhile, you can still browse our entire range via our website and email Brett with all orders to shop@seanstravel.com.au

Our brand new online store will be officially launched this month – a cleaner interface, updated information, and some great offers coming your way!

Thank you for your support and we look forward to welcoming you aboard shortly.

A huge welcome to both Helen Schiefelbein as Operations Manager, and Kat Tiwong as Leisure Consultant, who have both joined the SST family in the last month! Helen brings a wealth of experience within the industry, and will steer the consulting team towards a constantly improving customer service experience. Kat is a travel expert specializing in leisure travel of all types, and will be launching a new “holiday specials” newsletter over the next month!

So please join me in welcoming them both to the team, and I am sure you will enjoy speaking to them over the coming months!

Featured Property

The Brand New OAKS PINNACLE, South Yarra.

Located in the iconic Toorak Road/Chapel Street precincts, Oaks Pinnacle offers boutique fully selfcontained Studio and One Bedroom Apartments.

Adjacent to the South Yarra Railway Station means that access to the CBD is only a short 10-minute train ride or for a more leisurely trip, the Toorak Road trams stop is only 50-mtrs from the front door and travels along St Kilda Road into the heart of Melbourne city.

Whether you are here for business or for leisure, Oaks Pinnacle is the perfect location to make your home away from home, with rates commencing from $139 per night to meet your budget.

Terms and Conditions: Offer is valid until 30th September and subject to availability. A 24 hour notice in advance is required for cancellation.

Credit card fees apply.

CONTACT The Sean Simmons Travel CONSULTING TEAM ON: Phone: +61 3 9429 3294 (local) Fax: +61 3 9429 3293 Suite 6, 53 Coppin Street, Richmond VIC 3121 ABN 48153795129

Toll Free: 1300 391 590 (interstate) Email: enquiries@seanstravel.com.au seansimmons travel.com.au

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Botswana’s Okavango Delta...

...became the 1000th site inscribed on the UNESCO’s World Heritage list.

We take a closer look at this lifeaffirming region of Africa.

Botswana’s Okavango Delta is probably the world’s largest inland delta and certainly one of the wettest, wildest and most inaccessible places left on the planet.

Its awesome size and seasonal metamorphosis from a segment of Kalahari desert – the largest stretch of sand in the world – to oasis that supports the diversity of wildlife is enough to make anyone feel small.

It all begins with a most extraordinary river which starts its journey in the Angola highlands and meanders 10000 miles until it reaches northern Botswana. The waters may be heading for the sea but it never actually reaches the Indian Ocean.

Instead, it fans out through papyrus swamps and palm groves which effectively filters the water leaving it crystalclear before it makes its way down old hippo trails and filling the lagoons and creates Africa’s biggest oasis that floods the plains with 11 cubic metres of water. The magic of nature is that this happens in the dry season – July and August – offering an amazing lifesource for wildlife. As a result, it’s also one of the most natural opportunities for untouched game-spotting left.

It’s at this time the plants and animals such as elephants and hippos, big cats, buffaloes and all the other herbivores thrive in this unique climatic process and it’s here you will find some of the world’s most endangered species of large mammal, such as the cheetah, white rhinoceros, black rhinoceros, African wild dog and lion.

The area called the Panhandle was in the spotlight when Prince Harry sailed the narrow stretch between Shakawe toward Maun on board the Kubu Queen, a double-decker houseboat. But there are other way to see it. For instance, by helicopter and boat, but the best experience is had by exploring on a mokoro – a traditional canoe. The mokoro is made from the 100-year-old sausage tree and it’s a chance to sit back while a gondolier guides the mokoro through the reeds and waterlillies where frogs, bee-eaters, kingfishers and dragonflies gather.

From August to October the region is perfect for fishing.

At this time shoals of barbel and tiger fish populate the river making this a sensational place to enjoy the sport.

If ever there was a fine example of how nature’s delicate yet awesome equilibrium supports the cycle of life, this is it.

One of the companies specialising in Botswana and the Okavango Delta is our sponsor, Abercrombie & Kent, a luxury travel company founded in 1962.

The style of Abercrombie & Kent, as described by the founder, Geoffrey Kent, is “authentic, inspiring and organised down to the last detail by our expert local teams,” with focus on comfort and authenticity.

A 10-night Highlights of Botswana tour, which includes the Okavango Delta, Chobe River, Kalahari, and more is available. Contact us for more details.

CONTACT The Sean Simmons Travel CONSULTING TEAM ON: Phone: +61 3 9429 3294 (local) Fax: +61 3 9429 3293 Suite 6, 53 Coppin Street, Richmond VIC 3121 ABN 48153795129

Toll Free: 1300 391 590 (interstate) Email: enquiries@seanstravel.com.au seansimmons travel.com.au

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Industry news Etihad looking at launching India’s JET AIRWAYS to Australia Route expansion is on the cards for India’s Jet Airways once the airline is back on a “very solid footing” under its new equity partnership with Etihad, with an Australian route among the possibilities.

Speaking at the CAPA Aviation Summit in Sydney, chief operating officer Peter Baumgartner spoke of the challenges ahead for the carrier. The Abu Dhabi-based airline finalised a $330 million deal to purchase a 24% stake in Jet in November, following changes to India’s ownership laws.

West Africa Ebola virus outbreak Australian travellers are being warned that if you choose to visit West African nations reeling from an Ebola virus outbreak, you are on your own if you run into trouble.

The deadly virus has killed nearly 700 people in Guinea, Sierra Leone and Liberia since March. It has a 90% fatality rate and no known cure or vaccine.

A death this week hundreds of kilometres away in Nigeria has sparked fears the virus is spreading further.

The International Civil Aviation Organization says it is considering passenger screenings for Ebola, now that the deadly virus for the first time has crossed international borders aboard an aircraft.

Emergency talks are underway with officials from the World Health Organization (WHO) and the International Air Transport Association (IATA) to discuss the proposed changes, amid the worst ever outbreak of the highly contagious disease.

The latest updated advice from the Department of Foreign Affairs and Trade recommends Australian travellers defer all travel to the region, warning they could become stranded if the outbreak worsens.

“There is some homework to be done,” Baumgartner stressed, when questioned about a potential Australian route. But he pointed to “very encouraging early signs.”

Travellers relying on their travel insurance may face difficulties as medical evacuations for any Ebola patient would be “extremely difficult to conduct” as borders in the region could close and travel restrictions be imposed with “little or no warning”.

“Bringing Jet Airways back to its past glories is the primary focus and everything else comes from it. That’s our first phase and network expansion follows from it, and yes, everything is possible.”

Travellers already in the region should closely monitor local health advice and know the symptoms of the virus, which are severe and include high fever and weakness followed by external and internal bleeding.

Speculation that Etihad was keen for the airline to consider direct flights between India and Australia emerged in September, as reported in the Sydney Morning Herald.

JETSTAR JAPAN TO BE BIGGER THAN AUSTRALIA

Meanwhile, Baumgartner reported a strong start for Etihad’s Perth service which took to the skies earlier this week.

“It’s not easy to exceed sales expectations, but with Perth we have,” he said.

He added that the impressive performance is also an indication of the ongoing success of the airline’s partnership with Virgin Australia, as he congratulated the Australian carrier on recent improvements.

“It was a fantastic end to end experience that showed their investment into lounge, investment into product.”

ETIHAD ACQUIRES STAKE IN AILING ALITALIA After months of negotiations, Etihad Airways has become a 49% stakeholder in Alitalia, pending regulatory approval.

The Abu Dhabi-owned airline is investing a total of 560 million euros (about $750 million) in Alitalia: 387.5 million euros for the ownership stake, 112.5 million euros to acquire a 75% interest in Alitalia Loyalty (operator of the MilleMiglia frequent-flyer program) and $60 million for five slot pairs at London’s Heathrow Airport, which will be leased back to Alitalia.

The transaction is due to be completed on Dec. 31.

Additionally, Etihad said it has reached a deal with financial institutions for debt restructuring of up to 598 million euros (about $800 million) and 300 million euros (about $400 million) in new loan facilities.

Etihad in a statement said, “The recapitalized Italian national airline will now be able to invest in a comprehensive strategic business plan which will see new long-haul routes from Rome and Milan, a revitalized brand, and a greater focus on Italian tourism and trade promotion.”

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“The market was overcooked,” Hrdlicka said.

“South-East Asia, we believe, Is on the path to correction, which is great.”

The Jetstar boss said underlying fundamentals in Australia were stronger than they have ever been.

“We are in a brilliant position as the market starts to slow down a bit in capacity growth,” she said.

Low Cost Airlines – coming to an airport near you The Australian market is proving challenging for longhaul, low-cost airlines due to a mix of soft consumer demand and overcapacity, according to Singapore Airline’s Scoot and AirAsia X. “Australia has been a bit of a tough place to operate for the last year or so,” Scoot chief executive Campbell Wilson said at the CAPA Australia Pacific Aviation Summit on Thursday. “I think we’ve seen that manifest in decisions by airlines to change gauge, change frequencies and in certain cases pull out of city pairs.”

Mr Wilson said the downturn was cyclical, given Australia had been a strong market just 18 months ago.

Scoot, a subsidiary of Singapore Airlines, offers flights to Australia from its Singapore hub. Rival AirAsia X, which is based in Kuala Lumpur, has increased its capacity to Australia by 40 per cent over the last year.

AirAsia X head of commercial Australia & New Zealand Stuart Myerscough said demand had softened noticeably in recent weeks.

Jetstar chief executive Jayne Hrdlicka says the low-cost carrier’s Japanese business will one day be larger than the group’s Australian operations as demand for travel in Asia grows.

“It is hard to pinpoint any one particular issue but I think there are a number of compounding issues,” he said.

“You see minor softening with all sorts of minor events whether they be political with elections or financial with budget announcements and of course the [Malaysia Airlines] incidents as well have quite an impact on the industry in general.”

Speaking at the CAPA Australia Pacific aviation summit in Sydney on Friday, Hrdlicka hit back at critics of Jetstar’s Asian ventures, saying Asia was the fastestgrowing market in the world.

Mr Myerscough said the MH17 crash had given potential travellers reason to pause and think about whether it was worth booking an overseas trip. “People are reminded there is a reason why not,” he said.

“If I had a dollar for every time I read or heard about the Asian distraction for Jetstar, I would be retired now,” Hrdlicka said. ”Every business in the Jetstar group is a stronger or more resilient airline as a consequence of group scale.”

Jetstar International, a rival to Scoot and AirAsia X, has also been struggling to fill its planes after a large increase in capacity to the Bali market and dampened demand for flights to Thailand due to the political situation in that country.

Jetstar Japan was the third and most recent of the low-cost carrier’s Asian businesses, preceded by Jetstar Pacific in Vietnam and Jetstar Asia in Singapore.

A proposed fourth airline, Jetstar Hong Kong, is still awaiting regulatory approval.

Nok Air chief executive Patee Sarasin, who runs a domestic airline in Thailand, said his carrier had been profitable before the coup, but had since turned unprofitable.

Jetstar Japan began flying in 2012 and currently has bases at Tokyo Narita and, just recently, Osaka Kansai with 18 A320 family aircraft. The carrier has carried about five million passengers and was the fourth largest airline in Japan, Hrdlicka said.

“In time we believe that the Jetstar Japan business will be as big or bigger than our business in Australia, given the size and scale of the Japanese market,” she said.

Nok Air is combining with Scoot for the Nok Scoot joint venture, which will offer long-haul flights from Thailand. Mr Sarasin said the first flights were likely to be to Japan, Korea and China but Australia could be a destination in the longer term.

Thai AirAsia X is also considering flights to Australia from its Bangkok hub and its Indonesian arm may offer flights from Bali to Australia as early as next year, with Melbourne-Bali tipped as the likely first route.

“Commercially it is delivering well ahead of our expectations and the fundamentals in Japan for it’s age and stage are better than the fundamentals were in Australia at the same point.”

By comparison, Jetstar Australia and New Zealand had a little over 70 aircraft.

After a period of little growth, Jetstar Pacific was now on an expansion path, particularly on international flights, having renewed its fleet and restructured, Hrdlicka said.

CONTACT The Sean Simmons Travel CONSULTING TEAM ON: Phone: +61 3 9429 3294 (local) Fax: +61 3 9429 3293 Suite 6, 53 Coppin Street, Richmond VIC 3121

Meanwhile, Qantas announced in February, growth at Jetstar Asia would be suspended due to excess capacity in South-East Asian markets, and moves have come from other carriers in the region.

Toll Free: 1300 391 590 (interstate) Email: enquiries@seanstravel.com.au seansimmons travel.com.au

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