Singapore Airlines’ latest disappointing financial results are ringing the alarm bells (“Singapore Airlines disappoints“, 20th May, 13). At first glance, Singapore Airlines (SIA) posted a 12.8% increase in FY2012/13 full-year profit to S$379 million (US$299.8 million) from S$335.9 million in the prior fiscal year on a 1.4% rise in revenue to S$15.1 billion from S$14.86 billion a year earlier. The operating profit for its namesake unit also improved by 3.3% …Read More
The best is yet to come for Virgin Australia
Time flies. Three years into chief executive John Borghetti’s “Game Change” programme which has now evolved into the “Game On” phase, Australia’s second-largest carrier Virgin Australia transformed itself into a very different animal. Having uprooted from being a low-cost carrier (LCC) as Virgin Blue, the Brisbane-based carrier is now embarking on a portfolio strategy that promises to compete fiercely with flag carrier Qantas Airways in every single segment in the …Read More
Cathay Pacific builds flexibility while embracing opportunities
In posting an 83.3% drop in its 2012 full-year net profit to HK$916 million (US$118 million) from 2011′s HK$5.5 billion (US$708.5 million), Hong Kong-based Cathay Pacific Airways has ridden through a turbulent year that saw Asia’s largest international carrier posting a HK$935 million 2012 first-half loss, its first since the 2003 SARS crisis, amid a cargo conundrum, softening passenger yields in premium classes and stubbornly high fuel prices. The result …Read More
Singapore Airlines at a crossroads
2012 was a significant year for Singapore Airlines (SIA) which saw the Singaporean flag carrier embark on a shift in strategy in reinvesting in its namesake unit alongside strengthening its strategic partnership with Virgin Australia by acquiring a 10% stake in a carrier well positioned in one of SIA’s most important core markets, in addition to the sale of its 49% stake in United Kingdom carrier Virgin Atlantic. These moves, coupled …Read More
Qantas-Emirates partnership: How other players are affected
The Qantas/Emirates partnership should be about the survival of Qantas in a competitive market that has seen its international operations dipping into red ink. With the alliance, Qantas chief executive Alan Joyce is optimistic that the Australian flag carrier will revert to profitability a year after its formalisation which is pending approval by the authorities and expected to take off in April 2013. Joyce has good reasons to be sanguine …Read More
Qantas should refocus on Asia from Emirates codeshare distraction
Since the emergence of media reports on Dubai-based Emirates Airline’s talks with the struggling international unit of Qantas Airways on a potential codeshare accord, the share price of the flying kangaroo has soared from a bottom level at 99 Australian cents on 25th July, a day before the codeshare talk between the carriers was first reported, to as high as A$1.14 on July 31st, it has been hailed by industry …Read More
Singapore Airlines needs a strategic rethink
In posting a 73% improvement in FY2012 fiscal first quarter profits, Singapore Airlines (SIA) has not only exceeded analysts’ estimates of a S$69 million profit, but also turned around from a rare S$38.2 million FY2011 fiscal fourth quarter loss. However, against the backdrop of an ever more challenging economy and historically high jet fuel prices, the Singaporean flag carrier also faces an issue of identity, of what its premium brand …Read More
Healing the wounded Tiger
The Tiger Airways stock as listed on the Singapore Stock Exchange has recovered some lost ground as it moves up from a low of S$0.60 (US$0.48) per share to just below S$0.80 per share although it is still far from its peak of S$2.20 per share. Its initial public offering (IPO) price was S$1.50 per share. It made a debut high of S$1.58 when listed on January 21, 2010. Is …Read More
Dark clouds over Asia/Pacific airline industry
There has not been much good news lately in Asia Pacific aviation. This is worthy of note, not that airlines in other parts of the world are faring better – far from it – but that this region, in particular Asia, in these challenging times has been touted as the only region expected to be showing any growth. Air Australia went bust. It is not the first nor will it …Read More
Qantas sets sights on Asian growth despite challenges
Notwithstanding a 52% drop in Australian flag carrier Qantas Airways’ financial year FY2011/12 first-half underlying profit before tax (PBT) from A$417 million in the prior year period to this year’s A$202 million (US$216 million), which resulted from a 26% increase, or A$444 million, in the underlying fuel cost from a year ago in addition to a special charge of A$194 million related to an unprecedented grounding of its worldwide fleet …Read More