08-Mar-2011 4:38 PM
Jetstar and Spring Airlines look at Japanese units
Analysis
The Japanese LCC market could become much more competitive, with reports that Jetstar Airways and Spring Airlines are planning to launch units to operate domestic routes in Japan. To comply with foreign ownership regulations, the carriers reportedly intend to raise funds from Japanese companies to establish the units. The carriers have reportedly already approached Japan's MLIT with their plans. Shares in Japanese LCC Skymark were flat in trading on Monday.
In the US, Allegiant released the following guidance for its 2011-2014 operations:
- 1Q2011:
- Passenger revenue per ASM: +9% to +11%;
- Capacity (ASMs): +2% to +4%;
- Scheduled: +2% to +4%;
- 2Q2011:
- Capacity (ASMs): -2% to +2%;
- Scheduled: -4% to stable;
- Capacity (ASMs): -2% to +2%;
- Scheduled capacity (ASM):
- FY2011: +1% to +3% with 51 operating aircraft through the year and 166 seat aircraft to commence operations from 2HFY2011;
- FY2012: +18% to +20% with 166 seat upgrade completed in 4Q2012, four additional MD80s which are currently in storage to commence operations in 4Q2012;
- FY2013: +17% to +19% with remaining four MD80s, also currently in storage, to enter service;
- FY2014: +5% to +7%.
Southwest Airlines reported the following traffic highlights in Feb-2011:
- Revenue passenger numbers: 6.3 million, +7.1% year-on-year;
- Enplaned passengers: 7.6 million, +9.2%;
- Passenger load factor: 76.9%, +3.0 ppts;
- Number of flights: 82,477, +4.8%.
Allegiant Air shares gained 0.3%, while Southwest shares eased 0.3%.
Selected PEA daily share price movements (% change): 07-Mar-2011
