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
Tag Archives: Boeing
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
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
Plunging Cathay profits: What went wrong?
With Cathay Pacific Airways, one of the world’s leading airlines, announcing an 83% plunge in annual profit, one must begin to wonder what went wrong. Almost five years since the onset of the global economic crisis, the fortunes of the airlines can be best alluded to the unpredictable movements of the yo-yo. It was only at the end of last year that the International Air Transport Association (IATA) could with …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
Post-merger United Airlines well-positioned for a 2013 recovery
2012 was a difficult year for Chicago-based full service carrier United Airlines, who reported a 2012 full year net profit of US$589 million excluding special charges of US$1.3 billion. For the last quarter of 2012, United lost US$190 million excluding US$430 million in special charges as the airline grappled with the effects of “Superstorm Sandy” and lingering customer unease over the carrier’s operational issues throughout the course of 2012. The …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