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
Tag Archives: Dreamliner
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
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
Special Report: Boeing remains formidable even if BAE/EADS merger goes ahead
BAE/EADS merger to create world’s biggest aerospace company Merged BAE/EADS to be 35% bigger than Boeing based on 2011 sales Boeing 2011 profit of US$4.01 billion 22.6% higher than BAE/EADS’s combined US$3.27 billion profit Boeing 2012 H1 profit of US$1.89 billion 26.3% higher than BAE/EADS’s combined US$1.5 billion profit Little cost & revenue synergies on BAE/EADS merger Production ramp-up, weight reduction biggest 787 challenges as risk declines A 787-8 between …Read More
A major restructuring for Virgin Atlantic is overdue
In successfully acquiring loss-making British Midland Airways (bmi) along with its subsidiaries bmi Regional and bmi Baby, of which bmi Regional was subsequently sold to Sector Aviation Holdings for £8 million in cash, International Airlines Group (IAG) unit British Airways (BA) has gained 42 valuable London Heathrow slot pairs at a significant bargain, following the failure in its previous owner Lufthansa’s efforts to sell the bmi Baby unit. Most importantly …Read More