China Southern Airlines reported (22-Aug-2012) its sixth freedom rights sales increased by 2.6 times to a monthly record CNY134 million (USD20.9 million) in Jul-2012, according to CAAC Central and Southern Regional Administration. In particular, the carrier’s sixth freedom transit revenue between Australia and Europe increased 3.6 times from 2011. [more - original PR - Chinese]
China Southern Airlines Jul-2012 sixth freedom rights sales up 2.6 times
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Air New Zealand, the little airline that can, triples its FY2012 profit and 10-year average earnings
Air New Zealand looks set to deliver on its objective to more than double earnings for FY2013, saying it is on track to achieve underlying earnings in at the “upper end” of the NZD235 million to NZD260 million (USD209 million) guidance provided in Apr-2013. If achieved, the result will nearly triple the FY2012 profit of NZD91 million (USD73 million) and build on the 300% improvement reported in the first half of the financial year.
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LOT majority stake attracts airline interest, but restructuring and potential synergies will be key
Recent legislation allows the government of Poland to sell a majority stake in state-controlled national carrier, LOT Polish Airlines (LOT). According to media reports, LOT has appointed Rothschild as its privatisation adviser and a number of carriers have indicated their interest in investing. A lifeline loan from the government in Dec-2012 has been approved by the European Commission, partly conditional on a new restructuring plan expected in Jun-2013.
With losses for each of the four years 2008 to 2011 and a fifth loss expected for 2012, LOT’s cost base is too high for its revenue-generating capabilities. Moreover, it is inefficient versus the LCCs that compete on short/medium-haul, which accounts for 88% of LOT’s seat capacity and where its ageing 737 fleet needs replacing.
A handful of long-haul monopoly routes are finally benefitting from new 787s, but it is difficult to find many other features for LOT’s advisers to highlight. Interest in buying LOT will depend very much on the pricing and potential synergies a buyer might bring to the table.