- Passenger numbers: 1.5 million, -3.1% year-on-year;
- Domestic: 476,472, -4.1%;
- International: 973,915, -2.7%;
- Aircraft movements: 15,343, -5.7%;
- Domestic: 6930, -10.3%;
- International: 8413, -1.6%.
Athens International Airport pax down 3% in Jul-2013
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Scoot selects Athens as first route in Europe; head to head against intense Gulf competition
Singapore Airlines' (SIA) medium/long haul low cost subsidiary Scoot has confirmed Athens as its first European destination. Scoot plans to commence four weekly flights between Singapore and Athens in Jun-2017, using 329-seat Boeing 787-8s.
Scoot will need to rely heavily on connections beyond Singapore, particularly to Australia, to make the route viable. Australia has a large Greek diaspora. Scoot will not face any LCC competition from Australia or Southeast Asia to Greece but will need to overcome aggressive competition from Gulf carriers – something that full service Singapore Airlines has struggled with. But Scoot's entry pricing is very aggressive.
High load factors will be required to offset low yields but Scoot could struggle to maintain high load factors on a year-round basis, given the seasonality of the Athens market. Scoot could face similar challenges in the other European markets that it is preparing to launch in 2017.
Vueling NEXT Part 2: new CEO to lead IAG's LCC in restructuring bid to achieve IAG targets
Vueling's new CEO, Javier Sanchez-Prieto, is leading a programme ('Vueling NEXT') to improve its profitability, both through revenue enhancement and cost efficiency gains. Among other aims this hopes to reduce Vueling's high levels of seasonality, to raise aircraft utilisation and to improve labour productivity. Given ambitious financial targets by IAG – action is needed.
Part 1 of CAPA's analysis of Vueling examined its capacity growth and profitability trends since its acquisition by IAG in 2013. Vueling's operating margin and return on invested capital are on a downward trend, hence the new initiative to reverse these trends.
This second part of CAPA's analysis considers the profit improvement programme. During this programme Vueling's fleet will remain broadly flat to 2018, before resuming growth thereafter. Focus markets for Vueling are domestic Spain and Spain-Europe. It has strengths in these markets but faces growing competition from its lower-cost rival Ryanair, which has also been raising its service quality – closing the gap to Vueling's more premium positioning on the LCC spectrum.