Limited seats on Asiana hinders Russian market

The slow but steady growth of the Russian market in the Commonwealth is being stifled by the limited seats available on Asiana Airlines.

Tatiana Babauta, the Marianas Visitors Authority’s marketing specialist for Russia, told the board last Thursday that, according to MVA’s Russia office, the problem faced right now by Russian tourists is seat availability.

“According to our office in Russia, 30 percent of the seats is blocked by China travel agents so it is very difficult for Russian tourists,” Babauta said.

MVA board member Tommy Choi said that due to Asiana Airlines’ decision to cancel one of its flights to Saipan and its competitor, Jeju Air, also catering to the Korean market, Asiana has decided to focus on China, which is why China arrivals increased in May and June this year.

Although he did not cite specific figures, Choi said that China occupies over 40 percent, sometimes 50 percent of the seat availability on Asiana Airlines.

According to MVA managing director Perry Tenorio, only a total of 252 Russians visited the CNMI in June, despite the normal peak season for the Russian market being June and July.

Tenorio said the Russian market’s seat capacity when they did their load factor was about 0.7 percent.

Babauta said the Russian market has shown steady growth but the lack of seats remains a problem, including direct air service.

“As of July 6, we have 42 reservation via travel agents under our incentive program, with a total of 602 nights and the average room night is 14.2 percent,” she said.

Earlier this year, the MVA board approved an incentive program that would help the Russian market grow.

MVA board member Jerry Tan asked whether Russian airline Ikar’s announcement of launching charter flights between Moscow and Guam and Saipan this summer will push through. Ikar plans to fly using Pegas Fly.

“According to our office, they got in touch with Pegas and they have no idea of the arrangement so our office is trying to get in touch and is waiting for a reply,” Babauta said.

Tan also asked for updates whether H.I.S., an established Japanese tour operator, will do charter flights to the CNMI. In November 2014, H.I.S. announced that direct charter flights to the CNMI will be conducted from Vladivostok and Khabarovsk on a B737-700 aircraft operated by Yakutia Airlines with a total airlift is 132 seats, including eight business class seats.

“H.I.S. is still not going up from charter flights and hasn’t announced yet but we are still waiting by the end of the summer,” Babauta said.