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
Tag Archives: AirAsia
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
Tiger Airways-Scoot tie-up: Time to redefine sibling airline roles
Singapore Airlines (SIA) may be caught in a bind with one too many carriers in its stable. SIA wholly-owned regional carrier SilkAir and the newly inaugurated budget carrier Scoot Airlines, and has a stake of close to 33% in budget carrier Tiger Airways. While analysts applaud a possible tie-up between Tiger Airways and Scoot as a positive move in rationalising their operations, what more than meets the eye is the cause …Read More
Is consolidation the answer?
In light of the grim future painted by the International Air Transport Association (IATA) at its annual summit held in Beijing recently, Qantas chief executive Alan Joyce, it seems, thinks the airline industry faces an overcrowding problem. He said at the summit: “The number of airlines in the industry is too many. It’s too fragmented.” And the solution that he suggested: Consolidation. Joyce is re-championing an old strategy that more …Read More
Malaysia Airlines flip-flops, its future uncertain
The powers that be at Malaysia Airlines (MAS) seem to be not quite sure about what they want. The apparent lack of conviction in their commitment to right a tilting ship has left the airline directionless and without a palpable vision. In August last year, the ailing airline made a share swap with white knight AirAsia in a move aimed at checking Malaysia Airlines’ plunge further into the red. This …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
Malaysia Airlines in crisis
In announcing the Malaysian flag carrier’s performance for FY2011, Malaysia Airlines chairman Tan Sri Md Nor Md Yusuf said: “The company is in (a) crisis.” The airline group posted a loss of RM2.52 billion (US$841 million). Malaysia Airlines carried 1.3 million more passengers on a total of 17 million passengers last year, contributing to a marginal increase in Group revenue of 2% to RM13.9 billion. Expenditure however rose 21% from …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