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: Jetstar
Qantas pushes ahead with Asian strategy
While rivals such as Cathay Pacific Airways and Singapore Airlines (SIA) report lacklustre performance, Qantas seems to be upbeat about making headways with its Asian strategy to turn around its loss-making international operations. The Australian flag carrier took another step forward to enhance its presence in the region when it expanded its codeshare agreement with China Eastern Airlines (CEA). Qantas International manager China Andrew Hogg said, “We said we would …Read More
Is Qantas back on track?
Judging by its FY2012/13 first half performance, Qantas looks like it is back on track. The Australian flag carrier reported a net group profit of A$111 million (US$114 million), which is almost triple last year’s A$42 million. This was achieved in spite of the continuing show of red ink for its international operations, which one may even say was an impressive result considering the reduced losses of A$91 million from …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
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
Cathay Pacific to be a smarter & leaner airline in 2013
2012 has been a tumultuous year for Hong Kong-based Cathay Pacific Airways, with the “triple whammy” – a toxic mix of softening corporate travel demand owing to ensuing global economic uncertainties, stubbornly high oil prices and a cargo conundrum, pushing Asia’s largest international airline into a HK$935 million (US$120.6 million) first-half loss (“Gleam of hope for Cathay Pacific in stormy skies“, 13th Aug, 12). Notwithstanding this, Cathay Pacific has stayed …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
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