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Avianca looks toward a promising 2015 after network adjustments spurred by Venezuela pull-down

31-Mar-2015 1:25 AM

After somewhat quickly redeploying capacity out of Venezuela in 2014, Avianca Holdings seems positioned to execute a solid performance in 2015 as a result of having less exposure to troubled economies in Latin America than some of its competitors.

Similar to other airlines with significant exposure to Venezuela, Avianca has opted to redeploy capacity into the Caribbean and domestic routes within the Avianca Holdings network that includes Central America. The airline also plans to expand long-haul offerings in 2015 with the resumption of service between Bogota and Los Angeles and additional frequencies from Bogota to London Heathrow.

Avianca will spend much of 2015 maturing the capacity redeployed in 2014 from Venezuela to other markets. But with the transition now complete, Avianca can now focus on leveraging its strong network in Central and South America and taking advantage of its leading position in some of the stronger economies within those regions.

Hainan Airlines order for 30 787-9s underscores trans-pac growth. Partnerships will need to increase

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China's Lucky Air hopes for greater fortune with LCC model. 70 aircraft and widebodies by 2020

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LATAM Airlines Group sticks to 2015 capacity targets as Latin America's economy remains shaky

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Thai Airways embarks on major network and fleet restructuring but long-term challenges remain

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Tokyo Narita Part 2: low-cost terminal opening underlines airport's short haul low cost evolution

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AirAsia X CEO Update

16-Mar-2015
Malaysia AirAsia (MAA) and sister long-haul LCC Malaysia AirAsia X (MAAX) are shrinking their fleets in 2015 while adopting a new capacity and pricing strategy. Both carriers are trying to restore yields, which plummeted in late 2013 and 2014 due to intense competition and overcapacity in the Malaysian market.

MAA is still adding some capacity by improving aircraft utilisation levels. But passenger numbers will likely remain flat as the focus on yields results in a reduction in load factor.


Meanwhile MAAX has cut capacity across its scheduled network as part of a restructuring aimed at restoring profitability. MAAX was highly unprofitable in 2014 while MAA was the only profitable airline in Malaysia. MAA was also the only profitable airline among the eight carriers in the AirAsia/AirAsia X portfolio.


This is the second in a two-part series of reports on the Malaysian market and the outlook for 2015. The first report focused on flag carrierMalaysia Airlines (MAS), including its upcoming restructuring, and the recent reduction in overall passenger numbers in Malaysia. The report will focus on AirAsia and AirAsia X.
See related report: Malaysia aviation outlook Part 1: growth slows but competition is still intense as MAS restructures
 

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