Singapore Airlines (SIA) prefaced its report on its annual performance for FY2012/13 with attribution to high fuel prices and lower yields owing to a weak global economy for its lacklustre results. The announcement concluded with an equally dismal outlook, saying very much the same thing, warning that “the global economic outlook remains uncertain with the ongoing weakness in the eurozone and sluggish recovery in the United States” and that “yields …Read More
Japan Airlines flies into a ‘new sky’
Japan Airlines (JAL) is a black swan, or more precisely, a red crane called “tsurumaru” in the airline industry. It is nothing short of a remarkable turnaround story, a rarity in a highly competitive industry that saw national champions such as Malev go bankrupt and Air France, Iberia and the likes struggle to compete against an onslaught of low-cost carriers (LCCs) that have placed significant pressure on these legacy carriers’ …Read More
International Airlines Group entering a new dawn in 2013
It could have been much worse. International Airlines Group (IAG), formed by the merger between British and Spanish flag carriers British Airways and Iberia, posted a €997 million (US$1.29 billion) 2012 before-tax loss, dragged down by a €343 million impairment charge against the intangible assets and a €202 million transformation cost at the beleaguered Iberia unit. Amid a moribund Spanish economy where the unemployment rate has hit a staggering 26.1% …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
Boeing 777X to spark mini-jumbo war
GE9X to feature 16 blades, versus 18 on GEnx engines Folding wingtip to be operated hydraulically Folding wingtip to improve lift-to-drag by 12% Folding wingtip 800lbs weight penalty, against 777-200′s 3,200lbs 777X to remain ICAO Code E aircraft on aprons 787-styled tail fin, elimination of overwing exit confirmed Elimination of overwing exit saves 1,000lbs of weight 787-styled larger dimmable windows, lower cabin altitude being studied 777-8X & -9X range boosted …Read More
Boeing 777X & 787-10X unfazed by 787 battery woes
787-10 ‘Gate 4′ formal launch still planned in June 2013 Time between start of final assembly & flight testing on 787-9 narrowed to 4 months Folding wingtip decided for 777X 800lbs weight penalty for 777X folding wingtip, compared to 3,200lbs for 777-200 study in 1995 Folding wingtip contains no moveable parts, to be operated electrically 777X has same wing span as 777-300ER on the ground & stay as ‘Code E’ …Read More
Delta Air Lines deal brings unequal benefits to partners
When Atlanta-based Delta Air Lines announced a partnership with London-based Virgin Atlantic on 11th December last year, it marked an important shift in the transatlantic market dynamics. The deal for 49% of Virgin Atlantic that had been previously owned by Singapore Airlines, purchased in 2000 for £600 million (US$965 million), worth US$360 million, will expand connection opportunities for Virgin frequent flyers in the United States through Delta’s hubs, and on …Read More
Optimism returns to aviation
There is renewed optimism for the airline industry, going by the latest industry body Geneva-based International Air Transport Association (IATA) forecast that 2013 will see an improvement in global airline profitability from US$6.7 billion to US$8.4 billion. This has been revised from an earlier estimate of US$7.5 billion. IATA chief economist Brian Pearce said: “I think we are past the low point, which was earlier this year.” The positive mood …Read More
Delta’s interest in Virgin Atlantic starts a British war
The interest of the world’s second-largest carrier, Delta Air Lines in Virgin Atlantic has certainly caused some excitement in the aviation scene, if not started a British war between old rivals International Airlines Group (IAG) chief executive Willie Walsh and Virgin Group chief executive Richard Branson. The following looks at what the deal means to each of the key players, including those on the sideline. Singapore Airlines Delta has reached …Read More