Japan Airlines announced (25-Sep-2012) plans to deploy Boeing 787 aircraft on services from Tokyo Narita and Tokyo Haneda to Singapore, effective 14-Oct-2012. The 787 aircraft will be operated three times weekly on each sector, increasing to double daily on Tokyo Narita sector from 28-Oct-2012 and daily on Tokyo Haneda sector. [more - original PR]
Japan Airlines to deploy 787 on Singapore services
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Singapore Airlines promotes ASEAN-EU/Japan/Korea open skies to gain more USA fifth freedom flights
Linking Asia with North America has been the market cornerstone for Korean Air and Cathay Pacific while producing a growth market for relatively new entrants like ANA and EVA Air. Yet, while northeast Asian airlines have the geography for profitable nonstop North America flying, southeast Asian airlines are challenged in serving the route.
Singapore Airlines feels the need for a significant North American presence to diversify its network and offset pressure from Gulf airlines, which have profoundly weakened SIA in its core Asia-Europe and Australia-Europe markets. Although Singapore Airlines plans to resume nonstop North American flights, these are token services for strategic purposes.
The primary objective has to be securing more fifth freedom rights for one-stop service. Singapore is encouraging the ASEAN bloc to secure open skies with Japan, Korea and the EU since open skies will entail unlimited fifth freedom rights. Korea is unlikely to agree, with Japan hesitant. Fifth freedom liberalisation is a contentious item in the otherwise benign EU-ASEAN negotiations. Countries worry that granting unlimited fifths opens Pandora's box to growth – not just from SIA, but any number of airlines that are quiescent today but could aspire to be powerhouses in the future.
Aeromexico: slightly higher 2017 capacity growth as confidence of Delta JV approval remains high
Mexico’s largest airline, Aeromexico, plans slightly higher capacity growth in 2016, mostly driven by added frequencies to its long haul markets in Asia and Europe. Its preliminary guidance shows an ASK increase in the low single digits versus 8% growth in 2016. Similarly to 2016, much of Aeromexico’s capacity should be deployed to international markets as the airline sheds three Boeing 777 widebodies and adds five 787-9s to its fleet.
Aeromexico and Delta continue to believe US regulators will approve their immunised cross-border joint venture by YE2016, and are planning to increase their combined daily flights between the two countries by 43% during the next two years. The joint venture is a major pillar of Aeromexico’s transborder strategy going forward as Delta prepares to exert more influence over Aeromexico’s strategy. Some of Aeromexico’s and Delta’s rivals are lobbying for the two airlines to relinquish more slots at Mexico City Juarez, which could become a factor in the government’s final decision.
In the near term Aeromexico’s outlook is relatively stable, despite continuing challenges from the depreciation of Mexico’s currency. The airline’s revenue generation for the 9M ending Sep-2016 was favourable, driven by increases in yields and load factors.
NOTE: This report was prepared before the DoT issued its decision in the Aeromexico-Delta joint venture