Malaysia Airports Holdings Berhad MD Tan Sri Bashir Ahmad, speaking at the CAPA Australia Pacific Aviation Summit, asked (09-Aug-2013) “why is it always a sin for airports to make profits?”. Mr Ahmad said “we make profits because our charges are low and our costs are low,” adding “there must be a balance, there must be some reasonableness in this argument.”
MAHB MD: 'Why is it always a sin for airports to make profits?'
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CAPA airline profit outlook
The CAPA world airline industry operating margin model forecasts that margins will fall from 2016 to 2018, suggesting that the estimate of 8.3% in 2016 may have been a cyclical peak. The Jan-2017 update of CAPA’s six monthly world airline profit outlook, which adds 2018 to the model for the first time, attributes the expected declining margin trend to increases in oil prices and the rate of fleet growth.
Malaysia’s AirAsia: resuming domestic expansion and eyeing MASwings routes
AirAsia is resuming domestic expansion in the Malaysian market with a focus on connecting more dots within its network of 15 domestic destinations. The LCC is launching or resuming three domestic routes from Johor Bahru in late Apr-2017 and has lodged applications for four more new domestic point-to-point routes.
By the end of 2017 AirAsia is also aiming to take over a few domestic routes within east Malaysia that are now exclusively operated by the Malaysia Airlines Group turboprop subsidiary MASwings. The routes are part of the Malaysian government’s subsidised rural air services (RAS) programme, but are potentially big enough to support larger aircraft on a commercial basis. The Malaysia Airlines Group is preparing to reduce its ATR 72 turboprop fleet further following anticipated changes to the RAS programme, which is coming up for renewal this year.
AirAsia is the leading domestic airline in Malaysia and has 50% of its total seat capacity allocated to the domestic market. However, AirAsia’s domestic capacity has been flat the last three years as it has focused entirely on international expansion.