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Tiger Airways to buy into SEAir, ANA outlines corporate strategy

25-Feb-2011

Shares in Australia's Skywest Airlines rose 8.7% yesterday, after the carrier reported a modest increase in net profit for the six months ended Dec-2010. Revenue grew 17% year-on-year, while EBITDAR was up 4% to USD23.5 million.

Tiger Airways signed a term sheet for the purchase of a 32.5% stake in SEAir for USD6 million from co-founders Iren Dornier and Nick Gitsis, who will hold a combined 7.5% stake in the carrier after the sale. A majority 60% stake of SEAir will still be held by local investors. The deal comes approximately three months after Tiger leased two of its A319 aircraft to SEAir. The parties will now proceed to finalise the definitive sale and purchase agreement for the stake. SEAir will offer short-haul, point-to-point flights within a five-hour flying radius, using A320-family aircraft and crew based in the Philippines.

ANA Group announced its FY2011-12 corporate strategy, which is "designed to make the group grow into Asia’s number one carrier in quality, customer satisfaction, and value creation". ANA is targetting operating income of JPY110 billion (USD1.3 billion) with operating income ratio of 7.3% in FY2011, and JPY130 billion (USD1.6 billion) in operating income with operating income ratio of 8.3% in FY2012. As a mid-term target, ANA aims its operation income to boost to JPY150 billion (USD1.8 billion) or more, with operating income ratio to become above 10%. The carrier's financial forecast is as follows:

  • Operating revenue: JPY1377 billion (USD16.8 billion) forecast for FY2010; JPY1500 billion (USD18.3 billion) target for FY2011 and JPY1570 billion (USD19.1 billion) target for FY2012;
  • Operating income: JPY70 billion (USD853.7 million) forecast for FY2010; JPY110 billion (USD1.3 billion) target for FY2011 and JPY130 billion (USD1.6 billion) target for FY2012;
  • Operating profit margin: 5.1% forecast for FY2010; 7.3% target for FY2011; 8.3% target for FY2012;
  • Recurring profit: JPY37 billion (USD451.3 million) forecast for FY2010; JPY70 billion (USD853.8 million) target for FY2011 and JPY82 billion (USD11.0 billion) target for FY2012;
  • Net profit: JPY6 billion (USD73 million) forecast for FY2010; JPY45 billion (USD549 million) target for FY2011 and JPY53 billion (USD646 million) target for FY2012;

Selected APAD daily share price movements (% change): 24-Feb-2011


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