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
Qantas pushes ahead with Asian strategy
While rivals such as Cathay Pacific Airways and Singapore Airlines (SIA) report lacklustre performance, Qantas seems to be upbeat about making headways with its Asian strategy to turn around its loss-making international operations. The Australian flag carrier took another step forward to enhance its presence in the region when it expanded its codeshare agreement with China Eastern Airlines (CEA). Qantas International manager China Andrew Hogg said, “We said we would …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 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
Airbus is right on A330 improvement strategy
Having decided against re-engining the twin-aisle medium to long-haul A330 aircraft which is likely to undermine the business case of its A350-800 sibling (“Airbus mulls re-engined A330 along with sharklets“, 5th Mar, 12), Airbus is adopting the least risky option of offering new, higher gross weight variants of the A330 aircraft family that not only will see the A330 being more capable than it has ever been, but also provide …Read More
Jetstar Hong Kong stirs up a storm
Jetstar Hong Kong, a new budget joint venture (JV) of equal partnership between Qantas and China Eastern Airlines, is stirring up a storm – and not quite in a tea-cup considering the market potential of 450 million passengers by 2015. The carrier is expected to commence operations in mid-2013. The announcement drew mixed reaction from aviation analysts. Some of them think Qantas made a strategic move in penetrating the lucrative …Read More
Cathay Pacific holding on tight for eventual economic upturn
Hong Kong-based Cathay Pacific Airways, Asia’s fourth-largest carrier by market capitalisation and Asia’s largest international airline, posted a worse-than-expected 60.8% fall in its 2011 full-year net profit of HK$5.5 billion (US$705.3 million) from 2010′s record-breaking full-year profit of HK$14.08 billion (US$1.8 billion), dent by soaring gross fuel costs which rose by HK$12.5 billion, or 44.1%, net of fuel hedging gains in the past year, as well as a 9-month consecutive decline …Read More
Hong Kong Airlines assumes big risk in ambitious expansion
HNA Group subsidiary Hong Kong Airlines earlier this month announced its plan to launch all-business class flights from Hong Kong to London Gatwick with 3 Airbus A330-200 aircraft seating 116 passengers beginning 7th March, 2012. The carrier also detailed plans to receive more than 50 new aircraft during the next four years to capitalise on the robust growth in air travel demand buoyed by a rapidly-expanding Chinese economy. Its fellow …Read More
Airlines fly into the green divide
A ‘green’ divide is fast developing as climate change legislators turn their attention to airlines, which together contribute about 3% of the world’s total carbon emissions. When the European Union (EU) announced plans to extend the emissions trading scheme (ETS) to cover all airlines landing or taking off in EU territory, North American airlines were first to object, citing an infringement of the Open Skies agreement with the EU bloc …Read More