standard

Virgin Australia marks rite of passage

Virgin’s domestic ASK share grew from 35.22% to 36.79% in 3 years FY16’s A$162 million pricing benefit a 13.6% saving of fuel bill, versus 7.61% at Qantas Qantas’s A$300 million pricing benefit, with 3-4% ASK growth, equates to ~10-11% pricing/efficiency benefit Tigerair Australia needs A321LR to further lower unit cost in short-haul international market Virgin posts 69.8% 2015 […]

Read More
standard

The quiet rebirth of Iberia

Iberia a Europe-Latin America specialist Iberia’s employee cost falls from 30% of revenue in 2012 to 24.2% Iberia needs A350-1000 more than BA for hot & high missions Iberia’s Madrid hub well placed to capture North Asia-LatAm spillover demand from Heathrow Iberia’s Madrid routings on North Asia-LatAm competitive with Middle Eastern hubs Madrid commands 60.3% & […]

Read More
standard

The ‘Virginisation’ of Australian Aviation

Qantas still dominant with 80%+ corporate revenue share Virgin has 31 “full switch” corporate account wins in FY14 Qantas Domestic FY15 Q1 capacity share 63.6% & pax. share 62.3% Virgin FY15 Q1 RPK share 36.8% & pax. share 37.8% Depreciating A$ helps close international cost gap by ~4%: estimate 787-9 a Qantas International priority Qantas […]

Read More
standard

Dissecting the A330neo from a weight perspective

A330-900neo 14% lower fuel burn per seat valid against 235-tonne -300 -900neo 8.5% more fuel efficient per seat against 242-tonne -300 -900neo has 10.6% lower block fuel burn against 235-tonne -300 -900neo has 5.1% lower block fuel burn against 242-tonne -300 With much fanfare, the re-engined A330neo (new engine option) family was launched on the first […]

Read More
standard

Boeing 787 availability key in fending off Airbus A330neo

Boeing aims to stabilise 787 travelled work by LN195: The Seattle Times A330neo makes sense in filling Airbus’ product void in 200-300 seat segment A330neo to work best on sectors under 2,000nm A330neo adds 2-3 tonnes of weight; block fuel burn reduction ~12% 787 still retains significant fuel burn & operating cost advantage against A330neo […]

Read More
standard

Hawaiian Airlines likely an early A330neo customer

As the Singapore Air Show is fully underway, the dogfight between the Airbus A350 and the Boeing 787 Dreamliner has stolen the media limelight, with the A350 progressing well in its 2,500-hour flight test programme and possibly an early entry into service (EIS) for Qatar Airways. However, only 46 orders will remain for the Airbus […]

Read More
standard

It’s about Qantas.

No. of international passengers up 88.2% in 10 years Tourism’s contribution to Australia GDP increased by 32.1% in 10 years Argument on Qantas cannot be matched in providing ‘positive externalities’ unfounded Virgin Australia a disruptive force, not a distortion Qantas must abolish 65% “line in the sand” strategy Qantas Group’s domestic share slid to 61%, […]

Read More
standard

Aerospace & defence in 2014

2013 was a record breaking year for American and global aviation, and while 2014 looks to be a quieter year on the aerospace side of the coin, the constant churn of major airline news should continue to accelerate. Looking ahead to 2014 Starting at the very top of the totem pole, the narrative surrounding the […]

Read More
standard

LATAM underperformance poised to continue

In early November, Latin America’s largest airline consortium, LATAM Airlines Group reported net income of US$52.1 million for the third quarter of 2013, swinging from a net loss of US$49.2 million during the same period in 2012. Operating income was US$255.5 million, up 142.4% year-over-year with operating margin jumping to 7.6% from 3.2%. Top-line revenue […]

Read More
standard

Boeing 777X & 787-10 show the lure of the X factor

It is the lure of the X factor. When Boeing launched the highly anticipated 320-seat 787-10 Dreamliner at this year’s Paris Air Show, it not only symbolised the emergence of the Chicago-based plane-maker from the embarrassing 3-month long grounding of the revolutionary carbon composite aircraft earlier this year, but also offered a rare glimpse into the effectiveness of its future

Read More