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Singapore Airlines should revisit half-baked strategy

A350-900’s long-haul 253-seat configuration suboptimal 14.4% smaller Economy cabin than Cathay’s A350 hard to justify revenue premium SIA ex-fuel CASK 9.28% higher since low point reached in FY12/13 H1 with 14.0% lower yield Q2 yield of 10.4 c/RPK lowest ever seen since FY11 Soaring cost base compounded by intra-group cannibalisation Krisflyer point accrual on Scoot/Tigerair should […]

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International Airlines Group partnership works

The success of International Airlines Group (IAG) in the last two to three years is proof that its strategic partnership works. The group, made up originally of British Airways (BA) and Spanish carrier Iberia and subsequently Vueling which is a budget operator, was joined by Aer Lingus in August this year. Excluding Aer Lingus, IAG […]

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What conclusions can one draw in an airlines survey?

The industry continues to be fascinated by rankings of the world’s best airlines, although the results of most surveys – take away some bias here and there – are quite predictable and almost similar across the board. The winners by and large boast excellent cabin service, great food, comprehensive in-flight entertainment and innumerable choices, more generous […]

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US vs Gulf carriers: Redefining Open Skies

The new American mantra for aviation is fair skies, not open skies. With the rise of the Gulf carriers and their increased presence in the US, home carriers are banding to press the Department of Transportation (DOT) to review the long-standing Open Skies policy and the agreements executed thus far. Their grouse: Unfair competition because […]

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Is budget long-haul but a pipe dream?

Only days after announcing plans to launch transatlantic flights in five years, Ryanair retracted its position, abandoning the plans. In a statement, it said it “has not considered or approved any transatlantic project and does not intend to do so.” This ran contrary to the earlier announced approval by its board to mount budget flights […]

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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% & […]

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The big deal about extreme luxury

It is a big deal in the Middle East as the Gulf carriers, notably the big three of Emirates Airline, Etihad Airways and Qatar Airways, race to outdo each other in offering extreme luxury in the air (“Extreme luxury: What price prestige?“, Jun 26th, 14). Ever since Etihad introduced the Residence, a super-class three-room suite […]

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Jetstar Hong Kong’s long and costly wait to fly

Twenty-one months after Qantas announced the birth of its fifth Jetstar venture in March 2012, initially in partnership with China Eastern Airlines, the airline , Jetstar Hong Kong, has yet to receive approval from the Hong Kong authorities to fly. No doubt it is a costly affair waiting, with 3 remaining Airbus A320 aircraft sitting in […]

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Falling fuel prices: How good is the news?

The slump in the oil price in recent weeks should spell good news for airlines, dipping to a four-year low. It is today some 30% below the price in June. Yet do not be too quick to bet on falling airfare. But when no less a person than director general of the International Air Transport […]

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Competing to be the best: How reliable are survey readings?

Skytrax has named Cathay Pacific as the world’s best airline in 2014, displacing last year’s winner, Emirates. In second and third place are Qatar Airways and Singapore Airlines (SIA) respectively. Asian and Middle East carriers dominated the ranks of the top ten: Emirates being the 4th, Turkish Airlines 5th, All Nippon Airways 6th, Garuda Indonesia […]

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