Transaero reported (03-Sep-2013) it handled more than 1.5 million passengers in Aug-2013, a new record for the carrier. [more - original PR]
Transero reports record monthly passenger traffic
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Norwegian Air part 2: long haul growth shows its strategic innovation, but increases debt burden
Norwegian plans to add US routes to its Edinburgh base, a development considered in part 1 of this report, adding to its growing list of European long haul bases. However, its Edinburgh-US routes will use new Boeing 737MAX-8 aircraft – its first deployment of narrowbodies for long haul. It has also ordered 30 Airbus A321neoLRs for long haul use. Narrowbodies open up new possibilities for routes between the UK (or other European markets) and the US east coast.
Norwegian also plans to add non-US destinations to its UK long haul network, with details expected during the course of 2017. Norwegian's flexibility to develop its long haul operations from the UK would be improved by the grant of a US foreign carrier permit to its UK-registered subsidiary, Norwegian Air UK.
Norwegian has had to surmount many obstacles to build and grow its global network – which may also include Latin America in 2017, when it will accelerate long haul ASK growth to 60%. However its rapid expansion, currently driven mainly by long haul growth, has led to a rapid increase in debt, and is likely to weigh on unit revenue. Norwegian's undoubted strategic innovation can only be sustained if it is financially successful.
Airports - subject as always to the vicarious uncertainty of airline fortunes
CAPA’s 2016 outlook was against a background of unusually high levels of profitability for airlines. In 2017 those profit levels may be eroded as oil prices creep back up, economies falter and political uncertainty abounds over matters such as ‘Brexit’ and the election of a new and unpredictable US president – along with the prospect of greater levels of protectionism and threats to open skies agreements. All of which, of course, must impact on airports.
Perhaps nothing sums up this political uncertainty more than the ‘decision’ made – at length – by the British government that London Heathrow Airport will be expanded by the addition of a single runway, and which is not a decision at all. It must be rubber stamped by MPs by Dec-2017 and there is no ‘certainty’ about that. On a potentially more positive note however, Donald Trump’s election as US President could generate new, much need investment in US airport infrastructure.