International Air Transport Association (IATA) and the Government of Singapore signed (10-Feb-2011) a memorandum of understanding to facilitate the further growth and development of IATA’s Regional Office for Asia Pacific, which employs 80 staff in Singapore. IATA has also established the Sir William Hildred and Guenter Eser Aviation Scholarships in cooperation with Nanyang Technological University (NTU). The scholarships will sponsor up to 12 individuals attending the newly developed Executive Master of Business Administration (MBA) in aviation management at NTU, due to launch in 2012. The announcements come as 35 global strategic thinkers associated with the air transport industry gather in Singapore for IATA’s Vision 2050 initiative on 11-Feb-2011 and 12-Feb-2011. The Vision 2050 results will be reported to IATA’s next AGM in Jun-2011. [more] [more - Giovanni Bisignani's remarks]
IATA to grow presence in Singapore
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Scoot 2017 outlook: challenging market conditions and Europe launch could impact profitability
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Scoot has been successful in the initial four and a half years since its mid-2012 launch, becoming profitable in a relatively quick timeframe and unlocking a new phase of growth for the SIA Group. However, 2017 will bring intense competition and ambitious expansion in markets that are not likely to be profitable in the short to medium term.
Scoot’s newfound profitability could be at risk due to yield pressures, higher fuel costs and expenses related to new long haul route launches. Scoot and its ongoing integration with Tigerair are necessary strategically, and should improve the SIA Group’s long-term position, but the short-term outlook is relatively cloudy.
Turbulence will hurt Southeast Asia’s airlines in 2017 as overcapacity bites
Southeast Asia is a region with enormous growth potential but a relatively cloudy outlook for airlines given the intense competition and overcapacity concerns.
Demand is on the rise, boosted by a growing middle class, rising discretionary incomes and relatively strong economies. Nearly every country in Southeast Asia continues to post GDP growth above the global average. The Philippines, Vietnam, Myanmar and Cambodia have been particularly strong with GDP growth in the high single digits.
However, GDP growth slowed to less than 5% in the rest of Southeast Asia in 2016 and is expected to only pick up slightly in 2017. In several Southeast Asian markets, capacity has been growing faster than demand, impacting yields as competition has intensified. With an order book that equals the size of the current active fleet and several airlines pursuing strategic expansion, capacity may again be added at a rate exceeding demand in 2017.