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Royal Brunei Airlines expanding...

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  • Royal Brunei Airlines expanding...

    The following can be found on Royal Brunei's website @ www.bruneiair.com

    Royal Brunei Airlines is eyeing major expansion this decade, including:

    1. 12 narrow-body + 6 wide-body a/c by 2013. (Current fleet incldues 8x 763ER and 2x 752) Half of the planned fleet will be leased.

    2. New services to Auckland, Tokyo, Seoul, Sydney, and Ho Chi Minh City between 2003 and 2005, pending on the bilateral talks.

    3. Regional flights (within 4hrs out of Bandar Seri Begawan) will be served by narrow-body a/c, with increased frequencies.

    4. Other routes, both regional and intercontinental, will continue to be examined for possible addition to the network in the future. This includes points within the BIMPEAGA region.

    5. Introducing non-stop service on BKK-FRA and BWN-LHR in 2003 and 2004, respectively.

    6. Super Business Class will be introduced with onboard flat bed on all 767 by mid-2004.

    7. New Business Class Premium Lounge to open in Bandar Seri Begawan in 2003.

    8. Frequent Flyer Program to be introduced this month.

    9. RBA will respond to and compete with the growing threat from low cost airlines in the region by cutting back (although not eliminating) inflight service and numbers of cabin crew in the economy class of its narrow-bodied aircraft (to be deployed on regional routes). It will install a denser economy class on narrow-bodied aircraft. It will introduce an aggressive program of direct and internet-based air fares on certain regional routes, and offer ticketless travel where possible, by late 2003.

    10. RBA will maximise connecting traffic by introducing a redesigned hub and spoke schedule system, to be launched in October 2003, and increase its marketing reach via tactical alliances and code shares on key routes with other airlines.

    11. RBA will relaunch its brand image with a new advertising and promotional campaign designed to promote the airline's revised network and enhanced product, within the context of Brunei, the airline's home, as "The Abode of Peace". This positioning is considered both attractive and appropriate.

    12. RBA expects to make a loss in the "base year" of 2003/4 and a smaller loss in 2004/5. We expect to make steadily increasing profits in 2005/6, 2006/7, and 2007/8. We expect to be cash neutral in 2003/4 and cash positive each year thereafter. The expectations are based on an average Passenger Load Factor over the period of 65%, and an average passenger yield increase of 2% per year based on an improved passenger mix. These are intentionally very conservative estimates with considerable upside potential.
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