Analysis for Global
29-Jul-2014 4:55 PM
The allure of big boys' toys appears likely to cost Japan's low-cost Skymark Airlines its reputation, a lot of money and most importantly management focus at the very time when Skymark needed to respond to a raft of new LCC competition in its domestic heartland. Skymark is putting a bold face on the planned delay – or even cancellation – of six A380s it has had on order since 2010, taking the position that the best defence is a strong offence. A statement talked of Airbus imposing "an exorbitant penalty that evades common sense" if the order is cancelled. It appears from the statement that Airbus has sought to find a way out for Skymark, "to enter under the umbrella of a major airline."
Negotiations to delay delivery or cancel have, according to Skymark, been under way since Apr-2014. Skymark gives the reason for its move as a "business environment [that] has become severe due to increased competition and the depreciation of the yen in recent years".
Its international route plans had shortcomings for Skymark's first international excursion. Airbus has already begun trial flights with the first new aircraft, complete with Skymark's logo and partial interior. Two A380s were due for delivery in 2014, with another two in each of 2015 and 2016. The order – valued at USD1.3 billion at rack rates – was always a strange one that few in the industry considered a safe one.
There will be much to come out in the wash but Skymark can recover and emerge stronger. A cancellation of Skymark Airlines' six A380s would enable – and force – Skymark to hone the strengths it created in Japan's domestic market before it overly-ambitiously leaps from operating only domestically to long-haul all-premium A380 services.
17-Jul-2014 8:15 PM
Leasing companies stepped into centre stage on the second day of the 2014 Farnborough Airshow, with a flurry of high value orders.
Since the beginning of the airshow, eight aircraft lessors announced a wide range of orders, totalling more than 400 aircraft, valued at over USD35 billion at list prices.
In particular, lessors have jumped on the chance for early orders for Airbus’ new A330neo. 65 of the 105 firm orders and commitments for the aircraft, launched on 14-Jul-2014, came from leasing companies.
17-Jul-2014 4:00 PM
AirAsia X is reinforcing its leading position in the fast growing medium/long-haul low-cost segment with a commitment for 50 A330-900neo aircraft for delivery from 2018. AirAsia X emerged at the Farnborough Airshow on 15-Jul-2014 as the launch airline for the new type, joining three leasing companies which have also signed up as launch customers with commitments for 55 aircraft. It is the first long-haul low-cost airline to become a launch customer.
The new commitment from AirAsia X, once converted into a firm order, will grow the group’s fleet to up to 117 aircraft by the middle of next decade compared to 22 currently and only 12 at the beginning of 2013. Malaysia-based AirAsia X is already the largest group in the long-haul low-cost segment, which now consists of six carriers including four in Asia-Pacific. AirAsia X is accelerating growth as it opens new bases in Thailand and Indonesia.
The group, however, will have the flexibility to adjust growth by phasing out existing A330-300s as well as potentially cancelling some of its A330-300 and A350-900 orders. Ultimately the AirAsia X fleet will likely expand over the next 10 years to 90-100 aircraft, providing capacity growth of about 20% per annum with the possibility of even faster growth should market conditions warrant.
16-Jul-2014 5:33 PM
Airbus and Boeing typically grab the headlines at the big airshows, but regional aircraft manufacturers had a particularly strong first day at the bi-annual Farnborough Airshow.
The smaller aircraft manufacturers – Embraer, Bombardier, Sukhoi, ATR, COMAC and Mitsubishi Aircraft Corporation – collectively announced firm and tentative orders for nearly 130 jets and turboprops, as well as options for another 120 aircraft.
With all orders and options included, the deals are valued at more than USD7.8 billion.
15-Jul-2014 10:00 AM
The first budget delivered by India’s recently elected BJP government on 10-Jul-2014 included a number of measures that have been highly welcomed by the country’s tourism industry including the planned introduction of electronic visas; the abolition of service tax on packages sold to foreign tourists; plans to invest in upgrading attractions of religious and cultural significance; the development of tourist trains connecting pilgrimage sites; and the construction of a major convention centre in Goa .
Although some of these announcements are long term objectives and will not have an immediate impact on visitor numbers, they nevertheless reflect the priority attached by the administration to tourism as a driver of economic growth and employment. Tourism is one of the five Ts which the Prime Minister had earlier announced as being the keys to enhancing India’s global brand, with the others being Talent, Tradition, Technology and Trade.
14-Jul-2014 1:00 PM
Airbus has announced that following a decision by the Airbus Group board, it has launched the A330neo, claiming it will deliver a fuel consumption reduction of "14% per seat".
The decision ends more than 12 months of will they-won’t they speculation about the future of its widebody aircraft programme.
Airbus president and CEO Fabrice Brégier stated the A330neo is the “logical evolution” of the A330 family, providing an “optimal solution” for customers “looking to minimise their fuel and operating costs while offering best-in-class comfort to their passengers.”
8-Jul-2014 6:31 PM
India’s decision to invite private capital to participate in the modernisation of its metro airports has delivered significant benefits for passengers, airlines and the government.
The two leading private promoters involved in the sector, GMR and GVK, have implemented dramatic improvements in airport infrastructure at Delhi, Mumbai, Bengaluru and Hyderabad which have transformed the passenger experience, improved efficiency and capacity for airline operators, and delivered a massive dividend to the state-owned Airports Authority of India.
Once India's new government is fully installed and a – hopefully – new approach to the aviation sector is bedded down, the prospects for innovation and improvement will grow exponentially. PPPs are one important part of that equation.
4-Jul-2014 4:00 PM
CAPA – Centre for Aviation has published a 100-page report covering the Myanmar Aviation and Tourism sector.
As one of the world's hidden travel gems, Myanmar is rapidly beginning to open its doors wide to foreign tourism. Foreign and home grown airline capacity is proliferating, although it is not always the case that other infrastructure is able to keep pace. Equally, the flurry of new capacity and new airline entry suggests that there will be casualties along the path to profitability. Meanwhile,
The report’s comprehensive data sets cover economic conditions, tourism trends, hotel capacity, airline and airport developments – all supplemented by unique in-depth analysis from CAPA’s regional analysts.