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
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
Qantas, Virgin Australia face new industry normal
It is back to the future. In the movie the protagonist goes back to the past to seek guidance for the future. The same holds true for the Australian aviation market. Since the collapse of Ansett Australia in 2001, coupled with the proposed acquisition of Tiger Airways Australia by Virgin Australia, which is still subject to the regulatory approval from the Australian Competition and Consumer Commission (ACCC) whose final decision …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
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
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
Virgin Australia’s acquisition spree strengthens foundation for growth
It is “game on”, indeed. Following successfully achieving the 20% corporate market share earlier than originally envisaged which saw the increasingly stiff competition in the lucrative business travel market pushing down domestic business fares to an unprecedented low level since the collapse of Ansett Australia in September 2001, Brisbane-based Virgin Australia did not stand still. Neither did its aspirations stop soaring when Australia’s second-largest carrier recorded a 113% increase in …Read More