Orient Aviation March 2014
Cover Story
DO OR DIE STRATEGY FOR QANTAS
The A$252 million (US$211 million) interim loss reported by Qantas in February was not a near death experience. But it was getting close. And Alan Joyce, the CEO of the Qantas Group, knew it. He has announced a $2 billion rescue package for the airline group, which he hopes will establish sustainable long-term profitability for the company. Is he right? And will the unions and their supporters allow him to see through his plan? Read More »
News Backgrounder
AirAsia, Lion Air and Jetstar may be the front runners in the Asia-Pacific’s booming budget airline market, but an emerging carrier from Vietnam took centre stage at the Singapore Air Show in February. Read More »
News Backgrounder
Fiji Airways’ steady path to recovery
Volatile market conditions and overcapacity are the major challenges that Fiji Airways boss, Stefan Pichler, has faced since he took over the rebranded South Pacific carrier last September. Read More »
News Backgrounder
Airbus workhorse, the A330-300, is not set to fade away despite the arrival of the A350 XWB with launch customer, Qatar Airways, in the second half of this year. Read More »
News Backgrounder
FAA downgrade unfair says India
Last minute efforts to avoid a U.S. safety downgrade at Air India and Jet Airways came to no avail last month. The U.S. said the country’s weakened safety oversight meant Air India and Jet Airways would face restrictions on their networks operating into the U.S after India was downgraded to Category 2 by the American regulatory authority. Read More »
News Backgrounder
Its management is in denial about the fate of their airline, but the Indonesia government appears to be more realistic about the future of fading carrier, Merpati Nusantara, when it did not rescue it from closure in February. Read More »
Special Report
China opens market to international GDS
Major Global Distribution Systems (GDS) operators achieved a major breakthrough early this year when China announced it would allow them to operate on the Mainland from October 1, 2014. Read More »
Comment
No gains and a lot of pain for Qantas
There is no doubt Qantas Airways, after reporting an interim loss of A$252 million (US$211 million) in late February, is in financial difficulty. Other Asia-Pacific carriers – memorable examples include Malaysia Airlines, Air New Zealand, Japan Airlines and Philippine Airlines – have been in as much financial distress, if not more, than the ‘Flying Kangaroo’. Read More »
Regional Round-Up
Qantas’ $2 billion salvage exercise
Qantas Group CEO, Alan Joyce, announced 5,000 job losses, a group-wide pay freeze, major fleet deferrals and retirements, a network cutback, a cap on Jetstar Asia expansion, the closure of selected MRO and catering units and the sale of its long-term terminal lease at Brisbane Airport, to stem the carrier’s rising flood of red ink. Read More »
Regional Round-Up
Fernandes hits out at government backing of MAS
AirAsia’s Tony Fernandes (pictured) has accused Malaysia Airlines (MAS) of wasting taxpayers’ money after Malaysia’s flag carrier announced losses of 1.17 billion ringgit (US$355 million) for the 12 months to December 31, last year. Read More »
Regional Round-Up
Budget carrier, Nok Air, has paid 150 million baht (US$460,000) to buy out SGA, in a strategic decision that will give the Thai carrier access to several regional airports not able to be serviced by Nok’s fleet of B737-800s. Read More »
Regional Round-Up
Production rise for top selling airliners
Airbus has announced it will increase production of its single aisle A320 family jet to 46 a month in 2016, from the current level of 42, while Boeing will up production of its B737 family from the current 42 a month to 47 every 30 days in 2017. Read More »
Regional Round-Up
Lion Air subsidiary challenges Garuda’s supremacy
Fast expanding Indonesian budget carrier, Lion Air, has announced that its 10 month-old full service carrier, Batik Air, will add 10 jets to its fleet this year and up to 30 more in 2015 as it mounts a bid for a share of Garuda Indonesia’s premium travel market. Read More »
Regional Round-Up
“Down under” dumped by Virgin Atlantic
Virgin Atlantic Airways will terminate its decade-long Hong Kong-Sydney daily service in May after months of losses on a route without a profitable future. Read More »
Regional Round-Up
Asiana Airlines fined over U.S. crash
Regulators in the U.S. have fined South Korean international carrier, Asiana Airlines, US$500,000 for delays of up to five days in notifying families of victims of the airline’s crash last year in San Francisco. Read More »
Business Round-Up
Virgin Australia announces loss - and delivers a dig at Qantas
A day after Qantas’ dramatic announcement of its survival strategy, rival Virgin Australia confirmed it had recorded a first half loss of US$75.3 million after achieving a $20.6 million profit in the previous six months. Read More »
Business Round-Up
Problems mount at troubled THAI
At press time, Thai Airways International (THAI) announced its board chairman, Ampon Kittiampon, who is also the cabinet secretary general in the current Thai government, will step down as chairman on March 10, but will remain a THAI board member. Read More »
Business Round-Up
Malaysia Airlines (MAS), which will cancel its last service to the U.S. – Kuala Lumpur - Los Angeles – in April, has announced a fiscal year 1.17 billion ringgit (US$355 million) loss, compared with a 432.6 million ringgit loss for the previous 12 months. Read More »
Business Round-Up
Good news expected at Cathay Pacific
Hong Kong’s Cathay Pacific Airways is expected to report a robust profit when its announces its full year results for 2013 this month. Analysts predict the airline could more than double the HK$916 million (US$118.2 million) profit of 2012. Read More »
Business Round-Up
Profit soars at Air New Zealand
Interim after tax profit at Air New Zealand (AirNZ) jumped by 40% year-on-year, to a record NZ$140 million (US$112 million), putting the airline firmly on track for a full year before tax profit of NZ$300 million. Read More »
Short Takes
AIRLINES: Dependent on approval from the Civil Aviation Administration of China, Guilin Airlines will be launched with three airliners, in May. The carrier is a joint venture between Hainan Airline’s parent company, the HNA Group, and the Guilin Municipal Government. Philippine Airlines has abandoned its plans to launch a joint venture carrier with Cambodian Airlines. Read More »
Business Digest
In November, Asia Pacific airlines registered a 5.6% increase in international passengers carried to 18 million. Continued improvement in consumer and business sentiment helped support leisure and business travel markets, mirrored in the growth in demand. Read More »
