Oil price sinks but airlines aren’t lowering fuel surcharge

The oil price plummets, but airlines are not lowering the fuel surcharge. Why not? The call is really not the consumer’s to make as airlines rake in the savings on the back of an improved economy and increased demand for seats. Still it is only reasonable to expect some measure of adjustment downward of the […]

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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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Virgin Australia marks rite of passage

Virgin’s domestic ASK share grew from 35.22% to 36.79% in 3 years FY16’s A$162 million pricing benefit a 13.6% saving of fuel bill, versus 7.61% at Qantas Qantas’s A$300 million pricing benefit, with 3-4% ASK growth, equates to ~10-11% pricing/efficiency benefit Tigerair Australia needs A321LR to further lower unit cost in short-haul international market Virgin posts 69.8% 2015 […]

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Partnership is Air New Zealand’s answer to litmus test

Air New Zealand (ANZ) is probably best known for its innovative approach in its in-flight safety video presentation. Drawing inspiration from the “Men In Black” to “Hobbits” of the Middle Kingdom, what used to be a staid, no-nonsense delivery of critical information that is often ignored by many travellers, the presentation has become entertainment. Though […]

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Qantas has tough act to follow as Virgin’s “The Business” debuts

When it comes to domestic business class travel in Australia, the Australian business traveller can choose between two world-class products. The Qantas A330 Marc Hewson-designed Vantage XL seat made by Thompson Aero Seating or the Tangerine and Hans Hulsbosch-customised seat designed by B/E Aerospace at Virgin Australia. Both seats convert into fully lie-flat beds and […]

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Joyce rejoices: Qantas Asia/Pacific’s new star performer

The new star performer of Asia/Pacific is Australian flag carrier Qantas. Move over, Singapore Airlines (SIA) and Cathay Pacific. The flying kangaroo posted a FY2014/15 full-year statutory net profit of A$787 million, a dramatic turnaround from a net loss of A$2.84 billion the previous year and an impressive report card for chief executive Alan Joyce. […]

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Qantas ‘creating great’ in 95th year

Qantas Group BITRE ASK share dipped to 62.07% 5,000 headcount reduction boosted labour productivity significantly Labour expense as % of revenue at Qantas improved to 22.8% in FY15 H1 from 24% in FY12 Key metric bests Virgin Australia’s 23% in H1 FY15; up from 21.5% in FY12 Qantas International accounts for 5 out of top […]

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Delta Air Lines extends its wings

The saga of Japan’s bankrupt Skymark Airlines has shifted attention from the plight of the damsel in distress to the competition among prospective white knights in waiting. Delta Air Lines has emerged as the frontrunner to the rescue of the beleaguered carrier, strongly favoured by Skymark’s creditors, Airbus Group SE and aircraft leasing firm Intrepid […]

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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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Qantas’s stellar performance: To whom is the credit due?

Qantas reported a stellar FY2014/15 half-year performance from June to December 2014 which may have surprised some observers. To whom is the credit due? Or, is this willy-nilly a matter of rolling back on a favourable global economic tide? The Australian carrier made an underlying profit of A$367 million (US$289 million), its best in four […]

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