CAPA's Annual India Aviation Outlook is keenly anticipated by the industry each year as the leading analysis of the direction of one of the world’s most important emerging markets. CAPA has a strong and established track record in accurately identifying key trends and developments in the Indian market, both on an annual and long term basis. We operate India’s leading dedicated aviation advisory and research practice offering unrivalled analysis and data across the value chain.
Our India Aviation Outlook is used by the leading industry players to shape their strategies and decisions in the market. The 2013/14 edition will be released on 25 May 2013. Click here for more information.
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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]
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.
Air NZ puts the improved performance down to a stable operating environment as well as changes to its long-haul network which has returned to profit for the first time since the global financial crisis. It is now focusing on forging deeper alliances to support its Pacific Rim network expansion plans.
In a surprise move, Air NZ also reinforced its hold on trans-Tasman alliance partner Virgin Australia by increasing its shareholding to just short of 23% and plans to creep to 26% in six months, thereby securing a strategic blocking stake over fellow shareholding partners Singapore Airlines and Etihad.
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.