V Australia announced (17-Aug-09) plans to launch services from Melbourne to Johannesburg, Los Angeles and Phuket and from Brisbane to Phuket. Connecting flights will be available from other key Australian ports to both Johannesburg and Phuket. The carrier also confirmed it has lodged an application with the International Air Services Commission for permission and slots to operate flights between Australia and Fiji. [more]
V Australia to launch services to Johannesburg and Phuket, add MEL-LAX
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Interjet moves forward in strengthening its transborder position. Politics spurs market uncertainty
Mexico’s third largest airline, Interjet, recorded a surge in international passengers during 2016, reflecting the company’s desire to capitalise on a loosened bilateral agreement between the US and Mexico that eliminated restrictions on certain routes between the two countries. Interjet added several new routes to the US in 2016, upping competition with its Mexican rivals and the US airlines.
Based on Interjet’s aircraft delivery schedule and forward looking data, the airline’s capacity is set to grow at a healthy pace in 2017 as it absorbs new route launches from 2016 and expands its fleet. The airline logged 18.3% capacity growth in 2016.
Interjet is undertaking a significant US expansion as changing political tides are creating uncertainty about future travel patterns between Mexico and the US. Interjet asserts that business travel demand on its largest international route – Mexico City to New York JFK – remains robust, and the airline is expanding frequencies on the route.
But Mexico-US relations remain fragile in the light of uneasiness about changing trade pacts, and the heightened rhetoric over construction of a border wall between the two countries that was a hallmark of (now) President’s Trump campaign.
The US Big 3 airlines enjoy rally in domestic & Latin markets as the Atlantic and Pacific languish
The three large US global network airlines – American, Delta and United – were reasonably positive about their outlooks in early Jan-2017 prior to the US government issuing travel restrictions for several countries. The long term effects of President Trump’s executive order remain unclear, but early indications show a curb of some corporate travel just as yields in that passenger segment were starting a slow recovery.
Those three airlines were optimistic that pricing in the US market, including business travel fares, had hit the bottom and was turning a corner. For now that is still the likely scenario, with the domestic market serving as one of the stronger entities for those three airlines prior to the travel ban. Latin America had also started a solid recovery, with American, Delta and United all posting positive passenger unit revenue results for that region during 4Q2016, and they expect Latin America’s momentum to continue into 1Q2017.
The trans-Atlantic and trans-Pacific remain the most challenging regions for American, Delta and United. Trans Atlantic flights are challenged by competitive capacity and currency fluctuations that show no signs of retrenching. But prospects for the trans Pacific look better in 2H2017 as service caps in the current China-US bilateral are met during that period.