Maldives

Air Mauritius is on the road to recovery with an Asia-Africa focused network

Air Mauritius is well on the road to recovery, a year into a five-year plan that aims to implement a new business model that restructures its operations to become less dependent on traditional, but flagging, European markets and instead turn the airline’s focus to the growth markets around the Indian Ocean Rim and Asia.

A seven step recovery plan launched in Feb-2012 as profits crumbled into losses saw Air Mauritius undertake a major network consolidation which involved withdrawing its services to Germany, Italy and Switzerland as well as service reductions to China, Australia and Africa. But, with its network brought back into balance, and profitability restored, Air Mauritius has resumed a growth path with plans to launch a direct service to Beijing and reinstating some suspended routes and capacity in key markets.

Air Seychelles looks to ride Chinese boom & grow in tandem with part-owner Etihad – Australia next?

The Seychelles attracted 4,500 Chinese tourists in 2012, so it and flag carrier Air Seychelles look with envy to the Maldives, which in 2012 had 230,000 Chinese tourists. Air Seychelles hopes to attract a greater number of Chinese visitors not only from its flights departing Hong Kong, the first of which left on 25-Mar-2013, but via traffic feed across mainland China from a pending partnership with Cathay Pacific that it hopes to announce in coming weeks. In exchange for feed, Air Seychelles' link will enable Cathay to sell the Seychelles, finally giving it a presence in China's booming demand for luxury tropical getaways. And the Cathay partnership may be extended to Air Seychelles' part-owner Etihad Airways.

Air Seychelles links Mahe to Hong Kong via Abu Dhabi, effectively giving Etihad Airways – which owns 40% of Air Seychelles – an Abu Dhabi-Hong Kong flight via codeshare in absence of its own service to Hong Kong due to aircraft shortages. This use of open air service agreements, at Air Seychelles/Etihad and globally, is only in its early days. A MoU between the Seychelles and Australia could also in the long-term allow Air Seychelles to expand Etihad's footprint in Australia at a time when competitor Emirates is dominating the continent and the UAE-Australia bilateral capacity is capped.

SriLankan Airlines focuses expansion on North Asia as it prepares to join oneworld

SriLankan Airlines is planning to focus expansion on existing and new markets in Asia ahead of the carrier’s ascension into the oneworld alliance. SriLankan is now on course to formally become oneworld’s smallest member in Nov-2013.

The government-owned carrier is currently focused heavily on South Asia, which accounts for 41% of its international seat capacity. SriLankan’s network in South Asia, particularly India and the Maldives, is its main draw to oneworld. But North Asia is SriLankan’s target growth market, with more capacity to greater China and the likely launch of flights to South Korea. SriLankan’s North Asia expansion could be boosted by a relationship with Cathay Pacific, which is sponsoring SriLankan’s membership into oneworld.

Asia aviation rankings: Malaysia close to overtaking Thailand, Philippines gaining on Hong Kong

Asian aviation is growing strongly, with airlines expanding their seating capacity by 7.4% this month, well ahead of the global 6% increase, according to Innovata. The Indian Subcontinent is leading the Asian charge, while China is surprisingly down in 18th place in terms of Asian growth rates, with just a 5.2% increase in seats (domestic and international) this month.