As the oil price plummets – some 55% since June last year – the question top most in the mind of the consumer must be: Will airlines reduce airfares? Many of them have chosen to be silent on the subject, the reason being that the historical volatility of the market is such that the trend can […]Read More
A conscionable call as oil price plummets: Will airlines reduce airfares?
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 […]Read More
In his keynote address at the recent annual general meeting (AGM) of the International Air Transport Association (IATA) held in Doha, IATA director-general (DG) and chief executive Tony Tyler said: “Our financial performance does not yet match the value that we deliver.” No one will deny the importance of the airline business in global connectivity […]Read More
At 25, SilkAir is still around and growing not much or rather slowly. It has reiterated its intention to step out of Singapore Airlines’ (SIA) shadow and distinguish itself as one in its own right, but it cannot deny its role as a feed for the parent airline. This year SilkAir is announcing new destinations […]Read More
Singapore Airlines (SIA) prefaced its report on its annual performance for FY2012/13 with attribution to high fuel prices and lower yields owing to a weak global economy for its lacklustre results. The announcement concluded with an equally dismal outlook, saying very much the same thing, warning that “the global economic outlook remains uncertain with the ongoing weakness in the eurozoneRead More
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 lowRead More
Call it a déjà vu. For Hong Kong-based Cathay Pacific Airways, Asia’s largest international airline by passenger traffic as well as the world’s largest cargo airline in terms of traffic in 2010, bumps along the ride are not a new thing nor are they unanticipated. Its then chief executive Tony Tyler, who went on to become the director general (DG)Read More
A ‘green’ divide is fast developing as climate change legislators turn their attention to airlines, which together contribute about 3% of the world’s total carbon emissions. When the European Union (EU) announced plans to extend the emissions trading scheme (ETS) to cover all airlines landing or taking off in EU territory, North American airlines were […]Read More
The real question is not whether the airlines would survive another recession so soon after the 2007-2009 global economic meltdown. In an industry dominated by national players whose fate goes beyond commercial considerations, willy-nilly the majority of them will pull through, perhaps struggle to stay afloat, and emerge badly bruised.
While experts generally do not foresee a trough as deep asRead More
Long viewed as the industry benchmark and the golden standard for premium travel, Singapore Airlines (SIA) surprised the airline industry when it last week announced plans to set up a wholly-owned low cost subsidiary, which is scheduled to commence operations within a year. The strategic objective of Singapore Airlines in setting up a new low-cost carrier (LCC), however, is undoubtedlyRead More