Nagoya Chubu Centrair International Airport

AirAsia X IPO prospectus shows strength. AirAsia synergies help, also require definition

The prospectus for the forthcoming IPO for AirAsia X, a separate business from AirAsia, shows that the low-cost long-haul model can be successful, operationally and profitably, but only when deployed sensibly. During 1H2012, a challenging time for the global industry, AirAsia X reported a respectable 7.9% pre-tax margin on services to Australia, which comprise about half of the carrier's capacity.

The low cost model is ideally suited to Asia's price sensitive, high growth environment and AirAsia X's symbiotic relationship with Asia's biggest LCC, AirAsia, makes it a formidable model.

Attempts to serve Europe, since ended, resulted in a -26% margin in 2011. Yet Europe's weakness for AirAsia X was acknowledged early on. The sharply business-minded CEO Azran Osman-Rani went in saying he would be happy to break even; AirAsia X fell to pressure to plant the red flag in Europe at the behest of part-owner AirAsia, which still harbours an entrepreneurial spirit – and, at times, the associated confidence.

This will be the market's crux for AirAsia X's future – where AirAsia stops and where AirAsia X begins. AirAsia X is substantially complemented by AirAsia to sustain its effectiveness. The relationship between the two is a give and a take. The market, in assessing the IPO, will determine the balance.

Japan crisis has major impact on regional travel and tourism flows

The events in Japan have had a “major impact on regional travel and tourism flows”, Association of Asia Pacific Aviation (AAPA) Director General, Andrew Herdman has said. He noted that Japan represents 6.5% of worldwide scheduled air traffic and accounts for a fifth of traffic within the Asia Pacific region.

Airports in north-east Japan affected by earthquake and tsunami: Airline responses - UPDATE 1

Several airports in north-east Japan have been affected by Friday’s devastating earthquake and tsunamis. None more so than Sendai Airport, which was flooded when the tsunami struck, and remains closed. Major gateways including Tokyo Narita and Haneda resumed normal operations on Saturday.

Looser regulations allow Star and oneworld to tighten partnerships; Delta continues domination

In the throes of bankruptcy, Japan Airlines was wooed by Delta, intent on prying it from the oneworld group. In the end, the overtures were unsuccessful but it has not prevented Delta from remaining the dominant foreign carrier in Japan, with a local network that is unprecedented elsewhere in the world.