Monthly Archives: December 2011

Regionalisation is the new strategy in 2012 (Update1)

2012 will not be the year of the budget carrier in spite of the slew of announcements of new names taking to the skies, amongst them AirAsia Japan, a joint-venture between AirAsia and All Nippon Airways (ANA), Jetstar Japan, the joint-venture between Qantas and Japan Airlines and Singapore Airlines’ wholly-owned low-cost subsidiary Scoot Airlines. Almost every major airline has got

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LAN-TAM merger beneficial to Latin American airline industry

After more than a year since Chilean carrier LAN Airlines SA and Brazil’s TAM SA announced its US$3.2 billion merger in August 2010 that, according to Bloomberg data, will create the largest Latin American airline as well as the world’s second-largest airline by market capitalisation at US$11 billion, after Air China whose market value stands at US$11.3 billion, the airlines

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Boeing 737 MAX sees a bright year ahead (Update1)

After witnessing an unprecedented order influx at its transatlantic arch-rival’s re-engined Airbus A320neo (new engine option) aircraft which garnered 1,196 firm orders only one year since its launch in December 2010, Chicago-based aircraft manufacturer Boeing looks set to enjoy a similar orders bonanza for its re-engined 737 MAX aircraft in 2012 as it received a staggering US$19 billion firm order

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Stakes are high for Virgin Atlantic in bmi acquisition race

It appeared to have been a done deal when British Airways’ (BA) parent International Airlines Group (IAG) and Lufthansa reached a draft accord to sell the loss-making British Midland Airways (bmi) subsidiary to UK’s largest carrier in early November. In a surprising revelation on 12th December, however, Lufthansa said it had also reached an agreement in principle to sell bmi

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High operating cost, low productivity key factors behind American’s bankruptcy

In filing a Chapter 11 bankruptcy, Dallas, Fort Worth-based AMR Corporation, parent of US’s third-largest carrier American Airlines (AA) and its regional subsidiary American Eagle joined its peers in which every major US network carrier has gone through the bankruptcy process at least once in the past two decades in a drive to become competitive and solidly profitable by slashing

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Air travellers to pay new emissions trading scheme tax

In a call together with compatriots International Airlines Group (IAG) subsidiary British Airways (BA), easyjet and Virgin Atlantic to the United Kingdom (UK) government to scrap the air passenger duty (APD) – a tax introduced in 1994 for flights originating in the UK – Ryanair has surfaced yet another tax in the offing to be borne by air travellers.

Ryanair chief

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Airbus A350 faces further challenges but business case remains sound

In releasing its 2011 third-quarter pre-tax profit of €1.1 billion, European plane-maker Airbus parent European Aeronautics, Defence & Space Co. NV (EADS) announced the Airbus A350-900 XWB’s entry into service (EIS) has been delayed by up to six months. The start of final assembly of the first A350-900 was deferred to the first half of 2012 and its first flight

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