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1524m x 30m
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Darwin International Airport is the main gateway to the Northern Territory, Australia. Commercial operators share it with the Royal Australian Air Force. It is owned by Darwin International Airport Pty Ltd, a subsidiary of Northern Territory Airports Pty Ltd, which is in turn owned by Airport Development Group Pty Ltd. Approximately eight airlines fly domestic sectors and routes to southeast Asia.
Location of Darwin Airport, Australia
Ground Handlers servicing Darwin Airport
178 total articles
9 total articles
Bilateral agreement differences are providing a check on the launch of services to Australia by Philippine low-cost carrier Cebu Pacific, which is interested in serving Melbourne and Sydney using its new fleet of A330-300s. The differences between Australian and Philippine authorities on an extension to their air services agreement is frustrating Australian airports, which have seen medium/long-haul low-cost carriers drive international traffic growth in recent years.
Cebu Pacific would be the fourth medium/long-haul LCC to operate international services to/from Australia, joining AirAsia X, Scoot and Jetstar. The rapid expansion of AirAsia X in Australia, where the Malaysian carrier will become by the end of 2013 the fourth largest foreign carrier, was analysed in the first part in this series of reports on the Asia-Australia market.
The Philippines is a much smaller market for Australia than Singapore or Malaysia. But there is potential for significant growth, particularly if a new LCC can enter, stimulating demand in a market which is highly price sensitive.
Fatigue risk management rules challenge LCC cost reductions as safety issues are constantly reviewed
Low-cost airlines have increasingly scheduled back-of-the-clock flights departing late at night or early in the morning, but regulators are now placing greater emphasis on new issues in pilot fatigue risk management. That in turn is seeing some airlines lose operational advantages and incur a higher cost base, even if arguably justified on safety grounds.
New regulations from India’s Directorate General of Civil Aviation (DGCA) are impacting Air India’s LCC subsidiary, Air India Express. Previously the DGCA’s duty limitations did not differentiate between when duty time was occurring, but now the country’s pilots will be limited to seven-hour duty times instead of nine hours if the duty is for back-of-the-clock flights (officially the window of circadian low, occurring between 02:00 and 06:00). The ruling is applicable for domestic and regional flights.
New Cebu Pacific long-haul operation could push out Philippine Airlines but may require hybrid model
The new plan from leading low-cost Filipino carrier Cebu Pacific to offer long-haul services from 3Q2013 represents not just the fourth low-cost long-haul operation in Asia, but the first time such a carrier has potential to force a full-service rival – Philippine Airlines (PAL) – out of business.
Cebu Pacific will benefit from the Philippines’ extremely price sensitive market that has seen LCCs achieve a staggering 80% share of the domestic market and a fast-growing share of the regional international market. Demand for low-cost long-haul services will come primarily from the large visiting friends and relative (VFR) and migrant worker market. But Cebu’s new low-cost long-haul operation will also benefit from growing tourism and potentially the ability to transfer passengers over a geographically convenient hub if Cebu decides to stray from its original point-to-point model.
While PAL is the nation’s sole long-haul carrier, its lack of global alliance membership, relatively small domestic operation and higher cost base create low barriers for entry. National sentiment for Asia’s oldest airline may run high, but as seen in the Philippines’ domestic market, passengers vote with wallets.
As alliances have become more complex, and perhaps seemingly anti-competitive, airlines have been eager to promote any new route additions as direct results of alliance authorisation. Recent examples include Japan Airlines (JAL) opening the first Tokyo link to Boston – and with the Boeing 787 – and attributing it in part to its alliance with American Airlines while All Nippon Airways (ANA) will open a 787 link to San Jose, which the carrier also attributed to its alliance partner, United. In contrast to the glamour of these long-haul routes with high profile aircraft are the new Darwin-Sydney and Darwin-Singapore routes to be respectively started by recent partners Virgin Australia and SilkAir, the subsidiary (subsidiary!) of Singapore Airlines (SIA). Yet what the routes lack in public visibility they make up for in opportunity.
As a tough year for the aviation industry comes to a close, a review of EBITDA margins achieved by a variety of airport operators globally reveals some surprising results.
The Australian government has announced a Productivity Commission (PC) review of airport pricing, investment and services as part of a public inquiry into the economic regulation of major Australian airports that was announced earlier in the year. This brings it forward by more than a year. The announcement comes as it is alleged that Cairns Airport in Queensland will have the most expensive landing fees for a major Australian international airport by 2014, under the proposed new pricing structure for the industry.
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