Manila Bulletin
May 15, 2012
By Kay Johnson
JAKARTA, Indonesia (AP) — Dozens of fledgling airlines that have sprung up to serve Indonesia’s island-hopping new middle class could jeopardize the archipelago’s recently improved safety reputation, aviation experts say.
The trend threatens to erode higher standards established during what one analyst called a “tremendous amount of soul searching” by major carriers and the government after 2007, when frequent crashes prompted the European Union to ban all Indonesian airlines from landing on its runways for two years.
With growth rates of nearly 20 percent per year, Indonesia is one of Asia’s most rapidly expanding airline markets, but the country is struggling to provide qualified pilots, mechanics, air traffic controllers and updated airport technology to ensure safety. And with so many new, small carriers, it’s hard to monitor all their standards.
“We are not ready for this boom,” said Ruth Simatupang, an Indonesian aviation consultant and former safety investigator.
Indonesia’s two largest airlines — national carrier Garuda and rapidly expanding boutique airline Lion Air — haven’t had a fatal accident in five years and eight years, respectively. But small passenger and cargo carriers plus military aircraft have kept the frequency of crashes to about once every two months, according to statistics compiled by the Aviation Safety Network.
Just how fast Indonesia’s airline market is growing came under a spotlight with Wednesday’s deadly crash of a Sukhoi Superjet-100 plane during a demonstration flight. While both the plane and the pilot were Russian, the flight was packed with representatives of local airlines that the manufacturer hoped would purchase the jetliner.
The number of air passengers in Indonesia jumped by 10 million in a year to 53 million in 2010, according to the government statistics agency, and the upward trend continued last year.
“Infrastructure hasn’t kept pace with the growth of the airlines,” said Shukor Yusof, an aviation analyst in Singapore for Standard & Poors.
He said the government needs to “spend a vast amount of money” to expand safety monitoring for the new carriers and invest in airport runways and technology.
Tuesday, May 15, 2012
Airphil offer new adventures with its latest promo
The Philippine Star
May 15, 2012
Have you ever dreamt of going to Hong Kong to see up close and personal its own version of Desneyland? Other than the frenzied shopping experience that the island offers, there is actually so much more to see and do in Hong Kong.
Airphil Express, the fastest-growing budget carrier in the country, allows you to catch fresh new adventures in Asia's shopping capital with its latest Express Sale featuring a P688 promo rate (base fare only) from Cebu to Hong Kong (and v.v.)
To avail of the promo, just book a flight from May 14 to May 16 (or until seats last) and you can already enjoy traveling to Hong Kong starting June 1 to July 31, 2012. Under the same promo, a passenger can also check out local travel destinations in Luzon, hubs in Manila, Cebu, Davao, Zamboangga and the newly launched center in Clark for just P88 (base fare only). The same travel period applies. For a list of all destinations currently being served by Airphil Expess.
May 15, 2012
Have you ever dreamt of going to Hong Kong to see up close and personal its own version of Desneyland? Other than the frenzied shopping experience that the island offers, there is actually so much more to see and do in Hong Kong.
Airphil Express, the fastest-growing budget carrier in the country, allows you to catch fresh new adventures in Asia's shopping capital with its latest Express Sale featuring a P688 promo rate (base fare only) from Cebu to Hong Kong (and v.v.)
To avail of the promo, just book a flight from May 14 to May 16 (or until seats last) and you can already enjoy traveling to Hong Kong starting June 1 to July 31, 2012. Under the same promo, a passenger can also check out local travel destinations in Luzon, hubs in Manila, Cebu, Davao, Zamboangga and the newly launched center in Clark for just P88 (base fare only). The same travel period applies. For a list of all destinations currently being served by Airphil Expess.
Garuda, China Airlines Forge Agreement
Manila Bulletin
May 15, 2012
Garuda Indonesia and China Airlines have forged a code-sharing agreement including cooperation in both passenger and cargo to enhance service quality and value-added to their customers.
PT Garuda Indonesia (Persero) Tbk President & CEO, Emirsyah Satar explained that besides broadening Garuda Indonesia’s network expansion, the agreement offers customers of both airlines with a wider choice of travel to destinations served by both
airlines.
“The agreement will reinforce cooperation that already exists between our two companies” added Emirsyah.
China Airlines’ President, HuangHsiang Sun, expressed hopes that this agreement will enable both airlines to augment the quality of their service as well as create opportunities for the companies’ future growth.
“Garuda’s success in carrying its business transformation truly
reflects its readiness to join us in the SkyTeam,” added Huang-Hsiang Sun.
The codesharing agreement between Garuda Indonesia and China Airlines covers the following routes: Taipei-Jakarta-Taipei, Taipei-Denpasar-Taipei, and the Taipei-Singapore-Surabaya v.v. route.
In the future, the cooperation will be further developed to include other destinations, such as Los Angeles, San Fransisco, and Dubai.
May 15, 2012
Garuda Indonesia and China Airlines have forged a code-sharing agreement including cooperation in both passenger and cargo to enhance service quality and value-added to their customers.
PT Garuda Indonesia (Persero) Tbk President & CEO, Emirsyah Satar explained that besides broadening Garuda Indonesia’s network expansion, the agreement offers customers of both airlines with a wider choice of travel to destinations served by both
airlines.
“The agreement will reinforce cooperation that already exists between our two companies” added Emirsyah.
China Airlines’ President, HuangHsiang Sun, expressed hopes that this agreement will enable both airlines to augment the quality of their service as well as create opportunities for the companies’ future growth.
“Garuda’s success in carrying its business transformation truly
reflects its readiness to join us in the SkyTeam,” added Huang-Hsiang Sun.
The codesharing agreement between Garuda Indonesia and China Airlines covers the following routes: Taipei-Jakarta-Taipei, Taipei-Denpasar-Taipei, and the Taipei-Singapore-Surabaya v.v. route.
In the future, the cooperation will be further developed to include other destinations, such as Los Angeles, San Fransisco, and Dubai.
JAL Reports $2.33-B Income
May 15, 2012
TOKYO (AFP) – Japan Airlines (JAL), which went bankrupt two years ago in one of the country's biggest-ever corporate failures, logged an annual net profit of $2.33 billion, thanks to cost-cutting efforts.
The carrier said its net profit for the year through March was 186.6 billion yen on sales of 1.2 trillion yen, as a strong yen saw more Japanese people travel overseas, although demand was hit by last year's quake-tsunami disaster.
It had forecast a 160 billion yen net profit.
''Amid uncertain economic uncertainty stemming from such factors as the earthquake of March 11, 2011 and Europe's debt problem, we have continued our efforts and have taken measures to further expand revenue and increase profitability,'' the airline said in a statement.
The company warned that business conditions would ''continue to cast uncertainty,'' especially over rising oil prices.
The carrier predicted it would earn a profit of 130 billion yen in the present fiscal year.
In March 2011, the company exited bankruptcy, more than a year after a spectacular collapse that prompted a government bailout of the once-venerable flag carrier.
It went bust in 2010 with staggering debts of about 2.32 trillion yen but continued flying during its rehabilitation process, which included massive job and route cuts.
The airline underwent an aggressive cost-cutting plan guided by charismatic businessman Kazuo Inamori, who was brought in by the government to help turn the firm around.
Japanese media have reported that JAL, which was forced to delist during its crisis, may return to the market by September 2012.
In February, the firm said it had ordered 10 new Boeing Dreamliner aircraft as it looks to build on its recovery and fight off the threat from an emerging budget sector.
During its restructuring, the company cut unprofitable routes, reviewed its fleet, and reduced fuel expenses. It also started using a new revenue management system to improve productivity.
Last month, domestic rival All Nippon Airways posted a record operating profit of $1.2 billion in the year ended in March, boosted by cost cuts and a recovery in international travel demand.
TOKYO (AFP) – Japan Airlines (JAL), which went bankrupt two years ago in one of the country's biggest-ever corporate failures, logged an annual net profit of $2.33 billion, thanks to cost-cutting efforts.
The carrier said its net profit for the year through March was 186.6 billion yen on sales of 1.2 trillion yen, as a strong yen saw more Japanese people travel overseas, although demand was hit by last year's quake-tsunami disaster.
It had forecast a 160 billion yen net profit.
''Amid uncertain economic uncertainty stemming from such factors as the earthquake of March 11, 2011 and Europe's debt problem, we have continued our efforts and have taken measures to further expand revenue and increase profitability,'' the airline said in a statement.
The company warned that business conditions would ''continue to cast uncertainty,'' especially over rising oil prices.
The carrier predicted it would earn a profit of 130 billion yen in the present fiscal year.
In March 2011, the company exited bankruptcy, more than a year after a spectacular collapse that prompted a government bailout of the once-venerable flag carrier.
It went bust in 2010 with staggering debts of about 2.32 trillion yen but continued flying during its rehabilitation process, which included massive job and route cuts.
The airline underwent an aggressive cost-cutting plan guided by charismatic businessman Kazuo Inamori, who was brought in by the government to help turn the firm around.
Japanese media have reported that JAL, which was forced to delist during its crisis, may return to the market by September 2012.
In February, the firm said it had ordered 10 new Boeing Dreamliner aircraft as it looks to build on its recovery and fight off the threat from an emerging budget sector.
During its restructuring, the company cut unprofitable routes, reviewed its fleet, and reduced fuel expenses. It also started using a new revenue management system to improve productivity.
Last month, domestic rival All Nippon Airways posted a record operating profit of $1.2 billion in the year ended in March, boosted by cost cuts and a recovery in international travel demand.
CAPA Sees Weak Market For Asian Airlines After Q1 Results
May 15, 2012, 3:06 pm
MANILA, Philippines — The outlook for the normally buoyant Asian market has further dimmed following a rare quarterly loss for Singapore Airlines (SIA).
The Center for Asia Pacific Aviation (CAPA) noted that SIA group's first net loss since the global economic crisis of 2008 could be seen partially as an indication of its weakening market position. But in reality it is probably more indicative of the broader challengers facing Asia’s full-service airline sector, said CAPA.
"For at least the foreseeable future, market conditions remain bleak and the challenges confronting SIA remain daunting. The recession in Europe, which accounts for 16% of the group’s system-wide revenues, shows no signs of abating," said CAPA.
"SIA is also heavily exposed to the cargo market, which the group is expecting will remain depressed at least through the next quarter. SIA Cargo ended FY2012 with an operating loss of S$119 million (US$95 million)."
“Advance bookings for the coming quarter are higher year-on-year, albeit off a low base from the post-Japanese earthquake period last year. Promotional activities necessitated by intense competition amongst airlines are expected to place downward pressure on passenger yields, especially in Europe and the US where demand continues to be impacted by the anaemic economic outlook,” SIA says in its outlook for the new fiscal year.
“The recovery of air freight demand will be gradual, possibly only in the second half of the year. Cargo yields are likely to remain stagnant for the next quarter. Fuel prices are expected to remain at high levels, which will adversely impact the Group’s operating performance.”
While archrival Cathay Pacific Airways has had a higher profit margin than SIA over the last year, Cathay also has seen its profits slump significantly. Cathay recorded a 61% drop in profits for calendar 2011 to HK$5.501 billion (US$709 million) on revenues of HK$98.4 billion (US$12.7 billion).
Cathay has warned that its first half 2012 results “are expected to be disappointing.” Cathay cites continually high fuel prices and a weak cargo business, which it says in its warning “has shown no sign of a sustained recovery.” It also says that it continues to see softening in both economy and premium class yields.
CAPA says Cathay’s warning signals more than the poor SIA result that 2012 will be a tough year for Asia’s full-service airlines. Cathay is in a relatively better position than SIA given it is less exposed to the European market, is at the doorstep of mainland China market and does not currently face significant LCC competition in its home market. If Cathay sees gloomy skies ahead, the fundamental market conditions in Asia are clearly awry, says CAPA.
Leading the depressed situation is not only weakened economic conditions in Europe but a slowdown in mainland China, while almost every index measurable pointing to slowed growth in Europe, says CAPA.
MANILA, Philippines — The outlook for the normally buoyant Asian market has further dimmed following a rare quarterly loss for Singapore Airlines (SIA).
The Center for Asia Pacific Aviation (CAPA) noted that SIA group's first net loss since the global economic crisis of 2008 could be seen partially as an indication of its weakening market position. But in reality it is probably more indicative of the broader challengers facing Asia’s full-service airline sector, said CAPA.
"For at least the foreseeable future, market conditions remain bleak and the challenges confronting SIA remain daunting. The recession in Europe, which accounts for 16% of the group’s system-wide revenues, shows no signs of abating," said CAPA.
"SIA is also heavily exposed to the cargo market, which the group is expecting will remain depressed at least through the next quarter. SIA Cargo ended FY2012 with an operating loss of S$119 million (US$95 million)."
“Advance bookings for the coming quarter are higher year-on-year, albeit off a low base from the post-Japanese earthquake period last year. Promotional activities necessitated by intense competition amongst airlines are expected to place downward pressure on passenger yields, especially in Europe and the US where demand continues to be impacted by the anaemic economic outlook,” SIA says in its outlook for the new fiscal year.
“The recovery of air freight demand will be gradual, possibly only in the second half of the year. Cargo yields are likely to remain stagnant for the next quarter. Fuel prices are expected to remain at high levels, which will adversely impact the Group’s operating performance.”
While archrival Cathay Pacific Airways has had a higher profit margin than SIA over the last year, Cathay also has seen its profits slump significantly. Cathay recorded a 61% drop in profits for calendar 2011 to HK$5.501 billion (US$709 million) on revenues of HK$98.4 billion (US$12.7 billion).
Cathay has warned that its first half 2012 results “are expected to be disappointing.” Cathay cites continually high fuel prices and a weak cargo business, which it says in its warning “has shown no sign of a sustained recovery.” It also says that it continues to see softening in both economy and premium class yields.
CAPA says Cathay’s warning signals more than the poor SIA result that 2012 will be a tough year for Asia’s full-service airlines. Cathay is in a relatively better position than SIA given it is less exposed to the European market, is at the doorstep of mainland China market and does not currently face significant LCC competition in its home market. If Cathay sees gloomy skies ahead, the fundamental market conditions in Asia are clearly awry, says CAPA.
Leading the depressed situation is not only weakened economic conditions in Europe but a slowdown in mainland China, while almost every index measurable pointing to slowed growth in Europe, says CAPA.
Monday, May 14, 2012
Domestic passenger air traffic up by 13% in Q1
Business Mirror
May 14, 2012
DOMESTIC passenger air traffic in the first quarter of the year, aided by aggressive pricing strategies of airlines, rose by 13 percent to 5.16 million compared to 4.57 million a year ago, data from the Civil Aeronautics Board (CAB) showed.
CAB Executive Director Carmelo Arcilla said the growth was expected as the airlines continued to raise seat capacities and flight frequencies. “But their promotional fares did help a lot. It’s a major factor as to why this industry is growing,” he added.
Cebu Pacific, the airline unit of conglomerate JG Summit, recorded the most number of passengers at 2,374,599 out of the 3,110,870 seats allocated for the period. This represented a load factor of 76 percent from January to March of this year.
In the same period last year, Cebu Pacific recorded 1,948,307 domestic passengers, representing a load factor of 81 percent, out of the 2,391,113 allocated seats.
According to Candice Iyog, Cebu Pacific vice president for marketing and distribution, the continued growth in its passenger traffic was mainly due to its increased flight frequencies apart from discounted fares it offered.
Philippine Airlines (PAL) came in second with 1,085,533 passengers at end-March this year, lower than the 1,522,546 recorded in the same period a year ago.
A total of 1,471,336 seats were allocated for the first three months of the year, representing a load factor of 74 percent.
Load factor represents the number of seats occupied during a flight.
Airphil Express, the low-cost partner of PAL, recorded 1,069.765 passengers from January to March this year, up 890,384 passengers recorded in the same period last year.
Its load factor stood at 73 percent from 75 percent in the first quarter of 2011. The airline allocated 1,470,228 seats at end-March this year as against 1,186,037 seats in the same period a year ago.
Zest Airways, formerly Asian Spirit, also reported higher passenger numbers at 626,952 from 517,939. From a load factor of 76 percent at end-March last year, this went down to 72 percent in the first quarter this year.
Seair recorded a drop in passenger traffic to 10,037 passengers from 46,879 passengers. Consequently, the load factor went down to 76 percent from 77 percent.
Airphil Express is 99-percent owned by the Lucio Tan Group. PAL, however, is 95 percent owned by Tan.
The five airlines transported a total of 45,742,570 kilograms (kgs) in the first quarter versus 39,806,065 kgs in the same period last year.
Cebu Pacific transported 22.08 million kgs; PAL, 12.51 million kgs; Airphil, 6.09 million kgs; ZestAir, 4.97 million kgs; and Seair, 67,631 kgs.
May 14, 2012
DOMESTIC passenger air traffic in the first quarter of the year, aided by aggressive pricing strategies of airlines, rose by 13 percent to 5.16 million compared to 4.57 million a year ago, data from the Civil Aeronautics Board (CAB) showed.
CAB Executive Director Carmelo Arcilla said the growth was expected as the airlines continued to raise seat capacities and flight frequencies. “But their promotional fares did help a lot. It’s a major factor as to why this industry is growing,” he added.
Cebu Pacific, the airline unit of conglomerate JG Summit, recorded the most number of passengers at 2,374,599 out of the 3,110,870 seats allocated for the period. This represented a load factor of 76 percent from January to March of this year.
In the same period last year, Cebu Pacific recorded 1,948,307 domestic passengers, representing a load factor of 81 percent, out of the 2,391,113 allocated seats.
According to Candice Iyog, Cebu Pacific vice president for marketing and distribution, the continued growth in its passenger traffic was mainly due to its increased flight frequencies apart from discounted fares it offered.
Philippine Airlines (PAL) came in second with 1,085,533 passengers at end-March this year, lower than the 1,522,546 recorded in the same period a year ago.
A total of 1,471,336 seats were allocated for the first three months of the year, representing a load factor of 74 percent.
Load factor represents the number of seats occupied during a flight.
Airphil Express, the low-cost partner of PAL, recorded 1,069.765 passengers from January to March this year, up 890,384 passengers recorded in the same period last year.
Its load factor stood at 73 percent from 75 percent in the first quarter of 2011. The airline allocated 1,470,228 seats at end-March this year as against 1,186,037 seats in the same period a year ago.
Zest Airways, formerly Asian Spirit, also reported higher passenger numbers at 626,952 from 517,939. From a load factor of 76 percent at end-March last year, this went down to 72 percent in the first quarter this year.
Seair recorded a drop in passenger traffic to 10,037 passengers from 46,879 passengers. Consequently, the load factor went down to 76 percent from 77 percent.
Airphil Express is 99-percent owned by the Lucio Tan Group. PAL, however, is 95 percent owned by Tan.
The five airlines transported a total of 45,742,570 kilograms (kgs) in the first quarter versus 39,806,065 kgs in the same period last year.
Cebu Pacific transported 22.08 million kgs; PAL, 12.51 million kgs; Airphil, 6.09 million kgs; ZestAir, 4.97 million kgs; and Seair, 67,631 kgs.
Sunday, May 13, 2012
Premium Asian carriers hit by severe crosswinds
By: Martin Abbugao
Agence France-Presse
May 13, 2012
Singapore – Premium airlines in Asia are rethinking their strategies and slashing costs as high fuel prices, global economic uncertainty and pressure from Middle East and budget carriers squeeze profits.
Singapore Airlines (SIA) reported Wednesday that its net profit for the financial year ended in March tumbled 69 percent to Sg$336 million ($268 million), weighed down by a rare loss in the fourth quarter.
It was only SIA’s third quarterly loss in its 40-year history of uninterrupted full-year profit. The first took place during the SARS health scare in 2003 and the second during the global financial crisis in 2009.
SIA’s Asian rival Cathay Pacific of Hong Kong has warned shareholders that its first-half results, due out in August, are “expected to be disappointing” on the heels of a 61-percent net profit fall in 2011.
Both carriers are looking for more opportunities in Asia, the world’s fast-growing aviation market, as long-haul operations take a hit from the European debt crisis and the patchy US recovery.
Australian flag carrier Qantas is also attempting to refocus on Asia as part of its strategy to revitalize its loss-making international business.
“This is not just a Cathay Pacific problem,” chief executive John Slosar said in a statement to the Hong Kong stock exchange.
“It is clearly an industry-wide issue, and continued high fuel prices in particular are hitting airlines hard across the globe,” he said, calling for “concerted action” to address the volatile environment.
SIA’s performance is regarded as an indicator of industry trends and its reliance on business and first-class passengers to generate high margins is now being called into question.
Premium carriers such as SIA and Cathay are among the most affected by the economic headwinds because of their heavy reliance on top-paying passengers who can account for more than 50 percent of revenues, analysts said.
Some analysts say SIA has not been not been quick enough to seize opportunities at the lower end of the market.
“While SIA’s current slump is more a result of tough economic conditions and external factors, they are also now paying the price for standing still,” the Sydney-based Centre for Aviation consultancy said in a report.
Air travellers are more price-conscious and have a wider range of choices from budget carriers to premium airlines, Shukor Yusof, an aviation analyst in Singapore with Standard & Poor’s Equities Research, told AFP.
Last year, one in four of the 46.5 million passengers who passed through Singapore’s Changi Airport travelled on a low-cost airline, compared to one in five in 2010, the airport operator said.
SIA is also being challenged by Middle Eastern carriers such as Etihad, Qatar Airways and Emirates, which have expanded their fleets and improved cabin
Agence France-Presse
May 13, 2012
Singapore – Premium airlines in Asia are rethinking their strategies and slashing costs as high fuel prices, global economic uncertainty and pressure from Middle East and budget carriers squeeze profits.
Singapore Airlines (SIA) reported Wednesday that its net profit for the financial year ended in March tumbled 69 percent to Sg$336 million ($268 million), weighed down by a rare loss in the fourth quarter.
It was only SIA’s third quarterly loss in its 40-year history of uninterrupted full-year profit. The first took place during the SARS health scare in 2003 and the second during the global financial crisis in 2009.
SIA’s Asian rival Cathay Pacific of Hong Kong has warned shareholders that its first-half results, due out in August, are “expected to be disappointing” on the heels of a 61-percent net profit fall in 2011.
Both carriers are looking for more opportunities in Asia, the world’s fast-growing aviation market, as long-haul operations take a hit from the European debt crisis and the patchy US recovery.
Australian flag carrier Qantas is also attempting to refocus on Asia as part of its strategy to revitalize its loss-making international business.
“This is not just a Cathay Pacific problem,” chief executive John Slosar said in a statement to the Hong Kong stock exchange.
“It is clearly an industry-wide issue, and continued high fuel prices in particular are hitting airlines hard across the globe,” he said, calling for “concerted action” to address the volatile environment.
SIA’s performance is regarded as an indicator of industry trends and its reliance on business and first-class passengers to generate high margins is now being called into question.
Premium carriers such as SIA and Cathay are among the most affected by the economic headwinds because of their heavy reliance on top-paying passengers who can account for more than 50 percent of revenues, analysts said.
Some analysts say SIA has not been not been quick enough to seize opportunities at the lower end of the market.
“While SIA’s current slump is more a result of tough economic conditions and external factors, they are also now paying the price for standing still,” the Sydney-based Centre for Aviation consultancy said in a report.
Air travellers are more price-conscious and have a wider range of choices from budget carriers to premium airlines, Shukor Yusof, an aviation analyst in Singapore with Standard & Poor’s Equities Research, told AFP.
Last year, one in four of the 46.5 million passengers who passed through Singapore’s Changi Airport travelled on a low-cost airline, compared to one in five in 2010, the airport operator said.
SIA is also being challenged by Middle Eastern carriers such as Etihad, Qatar Airways and Emirates, which have expanded their fleets and improved cabin
Saturday, May 12, 2012
Emirates airline group’s annual profit dives 61%
Manila Bulletin
May 12, 2012
DUBAI Dubai’s Emirates airline group posted a 61 per cent slump in net profit in the year to March 31 due to unprecedented economic pressures and record high fuel prices, the company said on Thursday.
Total profits for Emirates Group, including all of its subsidiaries, dropped to 2.3 billion dirhams ($629 million) in 2011-2012 from 5.9 billion dirhams ($1.6 billion) for the previous year, the company said.
Net profits for the airline alone stood at 1.5 billion dirhams ($409 million), compared with 5.4 billion dirhams ($1.5 billion) for the same period in the year before. “Achieving our 24th consecutive year of profit and maintaining an upward growth trajectory is an achievement that belies the industry norm,” said chairman and chief executive Sheikh Ahmed Bin Saeed Al Maktoum.
Despite a difficult operating environment, Emirates Group said it continued to invest in and expand on its employee base, increasing its overall staff count by more than 10 per cent.
The company also attributed part of the drop in profits to massive new investments. “Throughout the 2011-12 financial year the Group has collectively invested close to 14 billion dirhams ($3.8 billion) in new products. This investment has garnered new customers and increased our international presence,” Ahmed said.
During the year, Emirates acquired a staggering 22 new aircraft, its highest in any single year, funded by a wide variety of financing structures, it said.
Emirates airlines, considered the world’s fastest growing carrier, has a fleet of 162 wide-bodied aircraft serving 115 destinations in 67 countries. In the past few years, it has made orders worth tens of billions of dollars including around 90 Boeing 777 planes, 73 Airbus A380 superjumbos, as well as 70 Airbus A350s.
May 12, 2012
DUBAI Dubai’s Emirates airline group posted a 61 per cent slump in net profit in the year to March 31 due to unprecedented economic pressures and record high fuel prices, the company said on Thursday.
Total profits for Emirates Group, including all of its subsidiaries, dropped to 2.3 billion dirhams ($629 million) in 2011-2012 from 5.9 billion dirhams ($1.6 billion) for the previous year, the company said.
Net profits for the airline alone stood at 1.5 billion dirhams ($409 million), compared with 5.4 billion dirhams ($1.5 billion) for the same period in the year before. “Achieving our 24th consecutive year of profit and maintaining an upward growth trajectory is an achievement that belies the industry norm,” said chairman and chief executive Sheikh Ahmed Bin Saeed Al Maktoum.
Despite a difficult operating environment, Emirates Group said it continued to invest in and expand on its employee base, increasing its overall staff count by more than 10 per cent.
The company also attributed part of the drop in profits to massive new investments. “Throughout the 2011-12 financial year the Group has collectively invested close to 14 billion dirhams ($3.8 billion) in new products. This investment has garnered new customers and increased our international presence,” Ahmed said.
During the year, Emirates acquired a staggering 22 new aircraft, its highest in any single year, funded by a wide variety of financing structures, it said.
Emirates airlines, considered the world’s fastest growing carrier, has a fleet of 162 wide-bodied aircraft serving 115 destinations in 67 countries. In the past few years, it has made orders worth tens of billions of dollars including around 90 Boeing 777 planes, 73 Airbus A380 superjumbos, as well as 70 Airbus A350s.
Friday, May 11, 2012
Zest Air Readies Shanghai Flights
Manila Bulletin
May 11, 2012
Traveling to Shanghai, China will now be a lot cheaper and more attractive as Zest Air launches its inaugural flight to the world's largest city proper of over 23 million people this June with an introductory fare of as low as P1,488 (exclusive of applicable taxes, surcharges, and Philippine Travel Tax).
According to Zest Air Chief Executive Officer, Alfredo M. Yao, the offer is good for limited seats only and the selling period is ongoing until further notice. Travel period for the said promo fare will begin on the inaugural date, June 22, 2012 until further notice.
“I advise business travelers to book early so they can avail of this opportunity before seats run out,“ said Yao, encouraging businessmen to visit Shanghai at this time of the year because it is just after the peak season of March to May so prices are much lower -which is just right for budget conscious business travelers.
Zest Air wil fly from Manila direct to Shanghai five times weekly every Monday, Wednesday, Thursday, Friday, and Saturdays. Departure time is at 8:10 in the evening, except Saturdays when departure is an hour earlier at 7 p.m. Flying time is three and a half hours.
Coming back from Shanghai, the flight schedule is every Tuesday, Thursday, Friday, Saturday at 12:40 midnight, and Sunday at 12:30 a.m.
Zest Air will be using their Airbus 320 which seats 180 passengers. Airport terminal in Manila is at the NAIA Terminal 4 (Manila Domestic Airport along Domestic Road International Wing) and the Shanghai Pudong International Airport in Shanghai.
Although already operating to five international flights since 2010 such as Incheon and Pusan in Korea, Shanghai and Beijing in China, and Taipei, Taiwan out of Kalibo and Cebu International Airports, the ManilaShanghai flight is only Zest Air's second International flight emanating direct out of Manila after their ManilaQuanzhou, Jinjiang flight launched last April 26.
May 11, 2012
Traveling to Shanghai, China will now be a lot cheaper and more attractive as Zest Air launches its inaugural flight to the world's largest city proper of over 23 million people this June with an introductory fare of as low as P1,488 (exclusive of applicable taxes, surcharges, and Philippine Travel Tax).
According to Zest Air Chief Executive Officer, Alfredo M. Yao, the offer is good for limited seats only and the selling period is ongoing until further notice. Travel period for the said promo fare will begin on the inaugural date, June 22, 2012 until further notice.
“I advise business travelers to book early so they can avail of this opportunity before seats run out,“ said Yao, encouraging businessmen to visit Shanghai at this time of the year because it is just after the peak season of March to May so prices are much lower -which is just right for budget conscious business travelers.
Zest Air wil fly from Manila direct to Shanghai five times weekly every Monday, Wednesday, Thursday, Friday, and Saturdays. Departure time is at 8:10 in the evening, except Saturdays when departure is an hour earlier at 7 p.m. Flying time is three and a half hours.
Coming back from Shanghai, the flight schedule is every Tuesday, Thursday, Friday, Saturday at 12:40 midnight, and Sunday at 12:30 a.m.
Zest Air will be using their Airbus 320 which seats 180 passengers. Airport terminal in Manila is at the NAIA Terminal 4 (Manila Domestic Airport along Domestic Road International Wing) and the Shanghai Pudong International Airport in Shanghai.
Although already operating to five international flights since 2010 such as Incheon and Pusan in Korea, Shanghai and Beijing in China, and Taipei, Taiwan out of Kalibo and Cebu International Airports, the ManilaShanghai flight is only Zest Air's second International flight emanating direct out of Manila after their ManilaQuanzhou, Jinjiang flight launched last April 26.
Strike-hit Air India halts ticket bookings to West
Manila Bulletin
May 11, 2012
MUMBAI - National carrier Air India on Thursday suspended passenger bookings for flights to the United States, Europe and Canada because of a strike by pilots. The airline, which was already losing nearly US$2 million (S$2.5 million) a day, has been forced to cancel a number of international flights since its pilots began a wildcat strike by reporting in sick on Monday night.
"We are suspending booking of tickets for west-bound flights till May 15," Air India spokesman K. Swaminathan told AFP.
"There is no use of taking bookings if flights may not operate."
The pilots are protesting against a decision to train former Indian Airlines pilots, who moved to Air India when the two firms merged in 2007, to fly new Boeing 787 Dreamliners.
The strikers say the plan threatens their career prospects.
Air India has sacked 45 of the hundreds of striking pilots since Monday.
The spokesman said they were fired because "their actions were illegal". The airline has also refused to recognise the pilots' union.
Read also:
Kingfisher pilots report sick
The strike comes at a time when Air India is facing mounting problems due to rising fuel prices, competition from low-cost rivals and a record of labour disputes.
The pilots ruled out halting their protest even as the Delhi High Court this week ordered them to stop their "illegal strike".
"We have tried speaking to the (aviation) ministry but they have not responded," pilots' union spokesman Captain Tauseef Mukadam told AFP, as he vowed the strike would go on.
The airline, which has 1,500 pilots, normally flies 400 flights daily, including 50 on international routes.
May 11, 2012
MUMBAI - National carrier Air India on Thursday suspended passenger bookings for flights to the United States, Europe and Canada because of a strike by pilots. The airline, which was already losing nearly US$2 million (S$2.5 million) a day, has been forced to cancel a number of international flights since its pilots began a wildcat strike by reporting in sick on Monday night.
"We are suspending booking of tickets for west-bound flights till May 15," Air India spokesman K. Swaminathan told AFP.
"There is no use of taking bookings if flights may not operate."
The pilots are protesting against a decision to train former Indian Airlines pilots, who moved to Air India when the two firms merged in 2007, to fly new Boeing 787 Dreamliners.
The strikers say the plan threatens their career prospects.
Air India has sacked 45 of the hundreds of striking pilots since Monday.
The spokesman said they were fired because "their actions were illegal". The airline has also refused to recognise the pilots' union.
Read also:
Kingfisher pilots report sick
The strike comes at a time when Air India is facing mounting problems due to rising fuel prices, competition from low-cost rivals and a record of labour disputes.
The pilots ruled out halting their protest even as the Delhi High Court this week ordered them to stop their "illegal strike".
"We have tried speaking to the (aviation) ministry but they have not responded," pilots' union spokesman Captain Tauseef Mukadam told AFP, as he vowed the strike would go on.
The airline, which has 1,500 pilots, normally flies 400 flights daily, including 50 on international routes.
Thursday, May 10, 2012
Air India Seeks Financing Proposals
Manila Bulletin
May 10, 2012
Air India Ltd., the loss-making national carrier, has invited proposals from banks and financial institutions to raise a short-term loan of up to $500 million to finance the purchase of four 787 Dreamliner jets from Boeing Co. (BA).
The airline has also sought offers from banks and financial institutions to raise up to $300 million in overseas borrowing, according to two tenders posted Monday on its website.
May 10, 2012
Air India Ltd., the loss-making national carrier, has invited proposals from banks and financial institutions to raise a short-term loan of up to $500 million to finance the purchase of four 787 Dreamliner jets from Boeing Co. (BA).
The airline has also sought offers from banks and financial institutions to raise up to $300 million in overseas borrowing, according to two tenders posted Monday on its website.
Airlines want key airports open 24/7
Philippine Daily Inquirer
May 10, 2012
MANILA, Philippines – Airline companies have urged the government to operate all key airports, not just Ninoy Aquino International Airport (NAIA), on a 24/7 basis to make the country more tourist friendly and to help decongest Manila.
They said the present one-shift system, which starts at 8 a.m. and ends at 5 p.m., is no longer done globally, and is also the reason used by airport customs, immigration, and quarantine (CIQ) personnel to charge airlines for overtime. Airport customs had expanded this unilaterally to include meals and transportation allowance.
Bayani Agabin, spokesperson of the Board of Airline Representatives (BAR), said the move will certainly boost the country’s campaign to project itself as a major tourist destination and an important regional player.
Finance Secretary Cesar Purisima, as head of the economic cluster, recently ordered CIQ officials to discontinue the outdated one-shift practice and go on three shifts 24/7.
BAR, in a press statement, welcomed the move and hoped the required budget for it would be released soonest.
In 2005, customs personnel doubled their fees on account of the doubling of the peso-dollar rate from around P26 to P52. BAR balked at the increase and went to court, arguing that the customs personnel were government employees, not theirs.
But BAR continued paying immigration and quarantine, which did not double their overtime billings.
Purisima’s order, Agabin said, should apply to all CIQ personnel and divisions not just in Manila but also in other international gateways including the airports in Clark, Puerto Princesa, Cebu and Kalibo.
Before Purisima, former Customs Commissioner Lito Alvarez ordered the adoption of three shifts at NAIA effective January 2011. Airport customs personnel, however, continued the present set-up and kept sending bills to the airlines for overtime.
BAR also said should all key airports go on 24/7 mode, airlines can fly directly to these destinations, bypassing Manila, without overtime charges, “a right step toward making the country more competitive and NAIA less congested.”
May 10, 2012
MANILA, Philippines – Airline companies have urged the government to operate all key airports, not just Ninoy Aquino International Airport (NAIA), on a 24/7 basis to make the country more tourist friendly and to help decongest Manila.
They said the present one-shift system, which starts at 8 a.m. and ends at 5 p.m., is no longer done globally, and is also the reason used by airport customs, immigration, and quarantine (CIQ) personnel to charge airlines for overtime. Airport customs had expanded this unilaterally to include meals and transportation allowance.
Bayani Agabin, spokesperson of the Board of Airline Representatives (BAR), said the move will certainly boost the country’s campaign to project itself as a major tourist destination and an important regional player.
Finance Secretary Cesar Purisima, as head of the economic cluster, recently ordered CIQ officials to discontinue the outdated one-shift practice and go on three shifts 24/7.
BAR, in a press statement, welcomed the move and hoped the required budget for it would be released soonest.
In 2005, customs personnel doubled their fees on account of the doubling of the peso-dollar rate from around P26 to P52. BAR balked at the increase and went to court, arguing that the customs personnel were government employees, not theirs.
But BAR continued paying immigration and quarantine, which did not double their overtime billings.
Purisima’s order, Agabin said, should apply to all CIQ personnel and divisions not just in Manila but also in other international gateways including the airports in Clark, Puerto Princesa, Cebu and Kalibo.
Before Purisima, former Customs Commissioner Lito Alvarez ordered the adoption of three shifts at NAIA effective January 2011. Airport customs personnel, however, continued the present set-up and kept sending bills to the airlines for overtime.
BAR also said should all key airports go on 24/7 mode, airlines can fly directly to these destinations, bypassing Manila, without overtime charges, “a right step toward making the country more competitive and NAIA less congested.”
SIA seeks tie-ups in India, China as profits flounder
Manila Bulletin
May 10, 2012
Singapore Airlines (SIA) said Thursday it is exploring partnerships in India and China as it looks to guard against increased competition and global economic uncertainty.
"There is always a constant look at how we can be nimble in response to changes in the market," chief executive Goh Choon Phong told reporters a day after the group announced sharply lower profits for the fiscal year to March.
SIA's profit slumped 69 percent year on year to Sg$336 million.
The Singapore flag-carrier -- often seen as a bellwether for the airline industry -- also recorded a net loss of Sg$38.2 million in the fourth quarter, only the third quarterly loss in its history.
"Specifically for China and India we continue to be working closely with the airlines there, especially those that are in the same alliance," the SIA chief executive said.
"The discussions are always ongoing on how we can deepen cooperation. When and at what point we can make any announcements about changes in the way we work with them, we will announce them when it is ready," Goh added.
SIA, a member of the Star Alliance along with Air China, last year announced a long-term partnership with Virgin Australia aimed at boosting the carriers' global reach by sharing flights and coordinating schedules.
Members of their respective frequent flyer programmes are also able to earn and redeem miles on each other's flights.
Goh said it was too early to tell if tie-ups in India and China would be as extensive as that with Virgin Australia.
"No single partnership is going to be the same as another... It will depend on the synergies between the two carriers," he said.
Goh said SIA, which is about to launch its own fully-owned budget airline Scoot, was unfazed by the growth in low-cost carriers in Southeast Asia.
An expanding middle class and robust economic growth have fuelled a low-cost air travel boom in the region, with players like AirAsia, Qantas offshoot Jetstar and Indonesia's Lionair all looking to expand.
"We see it as an additional engine of growth rather than competition. The impact of low-cost carriers on SIA itself, frankly we don't see that much impact," the SIA boss told AFP after the briefing.
Despite the imminent launch of flights to Sydney and Gold Coast by Scoot in June, Goh said advanced bookings for SIA's flights to Australia have not been affected.
Apart from Scoot, SIA also has a 32.84 percent stake in budget carrier Tiger Airways.
May 10, 2012
Singapore Airlines (SIA) said Thursday it is exploring partnerships in India and China as it looks to guard against increased competition and global economic uncertainty.
"There is always a constant look at how we can be nimble in response to changes in the market," chief executive Goh Choon Phong told reporters a day after the group announced sharply lower profits for the fiscal year to March.
SIA's profit slumped 69 percent year on year to Sg$336 million.
The Singapore flag-carrier -- often seen as a bellwether for the airline industry -- also recorded a net loss of Sg$38.2 million in the fourth quarter, only the third quarterly loss in its history.
"Specifically for China and India we continue to be working closely with the airlines there, especially those that are in the same alliance," the SIA chief executive said.
"The discussions are always ongoing on how we can deepen cooperation. When and at what point we can make any announcements about changes in the way we work with them, we will announce them when it is ready," Goh added.
SIA, a member of the Star Alliance along with Air China, last year announced a long-term partnership with Virgin Australia aimed at boosting the carriers' global reach by sharing flights and coordinating schedules.
Members of their respective frequent flyer programmes are also able to earn and redeem miles on each other's flights.
Goh said it was too early to tell if tie-ups in India and China would be as extensive as that with Virgin Australia.
"No single partnership is going to be the same as another... It will depend on the synergies between the two carriers," he said.
Goh said SIA, which is about to launch its own fully-owned budget airline Scoot, was unfazed by the growth in low-cost carriers in Southeast Asia.
An expanding middle class and robust economic growth have fuelled a low-cost air travel boom in the region, with players like AirAsia, Qantas offshoot Jetstar and Indonesia's Lionair all looking to expand.
"We see it as an additional engine of growth rather than competition. The impact of low-cost carriers on SIA itself, frankly we don't see that much impact," the SIA boss told AFP after the briefing.
Despite the imminent launch of flights to Sydney and Gold Coast by Scoot in June, Goh said advanced bookings for SIA's flights to Australia have not been affected.
Apart from Scoot, SIA also has a 32.84 percent stake in budget carrier Tiger Airways.
Wednesday, May 9, 2012
Neda fast-tracks aviation project
Business Mirror
May 9, 2012
By Cai U. Ordinario
The National Economic and Development Authority (Neda) Project Monitoring Staff (PMS) has recommended that a loan from the Japan International Cooperation Agency (Jica) for the Communications Navigation Surveillance/Air Traffic Management (CNS/ATM) Systems Development project be restructured within the year.
In an interview, Neda PMS Director Roderick Planta said the CNS/ATM project also needed to re-enter the Investment Coordination Committee (ICC) process due to the “financial implications” of delays.
The CNS/ATM project has suffered delays since the Department of Transportation and Communications (DOTC) has not provided any counterpart funding for the project, which was supposed to have been completed in February 2007.
The project seeks to establish satellite-based CNS/ATM systems according to specifications of the International Civil Aviation Organization (Icao); deploy vital air-transport communication, surveillance and information facilities; and replace aging communication and air-traffic equipment in select airports nationwide.
“We do not expect it to be completed on its original closing date because it is still under review. This is why the loan for the project will require restructuring sooner or later, or sometime within 2012,” Planta added.
He said loan restructuring might mean an extension of the loan validity or financing of some aspects of the project with local funds. Planta added that the review being undertaken by the DOTC would make this direction clear.
“We presume that the review entails an examination of the financial and technical aspects of the project. Because of this, there is a need to bring this back to the ICC which will pass judgment on the project, given the financial implications,” the PMS director said.
Jica is extending a loan of P9.586 billion for the P13.272 billion-worth project. The loan was signed in February 2003 and rescheduled to close in June 2013 when the project will have been completed. Neda documents earlier showed that progress of physical accomplishment for the package for the construction of the whole CNS/ATM system was only 1.74 percent while building/civil works for the radar sites was at 0.01 percent. The project has two work packages. The first package is for the design and construction of the ATM center and ATM Automation System and the second is for the whole CNS/ATM system.
The Neda documents also showed that availment rate or the loan amount’s cumulative utilization according to a multi-year schedule was at 13.52 percent, enough for it to make it into Neda’s official development assistance (ODA) alert mechanism, which lists problems that may lead to more cost overruns in the future.
Disbursement rate or percentage of actual disbursement against target disbursement for the period was also low at only 58.29 percent while the project’s utilization rate, which reflects the physical accomplishment of the project, was at 9.9 percent.
May 9, 2012
By Cai U. Ordinario
The National Economic and Development Authority (Neda) Project Monitoring Staff (PMS) has recommended that a loan from the Japan International Cooperation Agency (Jica) for the Communications Navigation Surveillance/Air Traffic Management (CNS/ATM) Systems Development project be restructured within the year.
In an interview, Neda PMS Director Roderick Planta said the CNS/ATM project also needed to re-enter the Investment Coordination Committee (ICC) process due to the “financial implications” of delays.
The CNS/ATM project has suffered delays since the Department of Transportation and Communications (DOTC) has not provided any counterpart funding for the project, which was supposed to have been completed in February 2007.
The project seeks to establish satellite-based CNS/ATM systems according to specifications of the International Civil Aviation Organization (Icao); deploy vital air-transport communication, surveillance and information facilities; and replace aging communication and air-traffic equipment in select airports nationwide.
“We do not expect it to be completed on its original closing date because it is still under review. This is why the loan for the project will require restructuring sooner or later, or sometime within 2012,” Planta added.
He said loan restructuring might mean an extension of the loan validity or financing of some aspects of the project with local funds. Planta added that the review being undertaken by the DOTC would make this direction clear.
“We presume that the review entails an examination of the financial and technical aspects of the project. Because of this, there is a need to bring this back to the ICC which will pass judgment on the project, given the financial implications,” the PMS director said.
Jica is extending a loan of P9.586 billion for the P13.272 billion-worth project. The loan was signed in February 2003 and rescheduled to close in June 2013 when the project will have been completed. Neda documents earlier showed that progress of physical accomplishment for the package for the construction of the whole CNS/ATM system was only 1.74 percent while building/civil works for the radar sites was at 0.01 percent. The project has two work packages. The first package is for the design and construction of the ATM center and ATM Automation System and the second is for the whole CNS/ATM system.
The Neda documents also showed that availment rate or the loan amount’s cumulative utilization according to a multi-year schedule was at 13.52 percent, enough for it to make it into Neda’s official development assistance (ODA) alert mechanism, which lists problems that may lead to more cost overruns in the future.
Disbursement rate or percentage of actual disbursement against target disbursement for the period was also low at only 58.29 percent while the project’s utilization rate, which reflects the physical accomplishment of the project, was at 9.9 percent.
Roxas Solution : Realign flights to decongest Naia
Business Mirror
May 9, 2012
By Lenie Lectura and Ma. Stella F. Arnaldo
Instead of reducing the number of their domestic flights from Ninoy Aquino International Airport (Naia), local airlines were told to realign their flight schedules, not mount additional flights, while the government steps up efforts to decongest the runway at the country’s premier airport.
The Department of Transportation and Communications (DOTC) said the number of commercial airlines has doubled to 119 compared to only 62 in 2008. As of 2006, these aircraft had served a total of 18 million passengers, with the number going up to 30 million in 2011. Aircraft movements or takeoffs from and landings at Naia rose to 255,000 in 2011 compared to 171,000 in 2006.
Naia’s runway can only accommodate an average of 36 events, or takeoffs and landings, per hour. But actual scheduled commercial and general aviation flights jumped to as high as 50 events per hour during daytime of the summer season, causing runway congestion and resulting in flight delays and cancellations.
Transportation Secretary Manuel Roxas II told a press briefing on Tuesday that flight schedules of local airlines will be realigned to free up slots during the peak hours of 7 a.m. to 6 p.m. “There will be a re-balance or re-schedule of domestic flights so as to shift bulk of the load to off-peak from peak hours,” he said.
Domestic flights account for 80 percent of the load of the Naia runway.
The government will construct two rapid-exit taxiways worth P300 million each to boost the flight-handling capacity of the runway from 36 to a target of 45 events.
At 36 events, aircraft exits the runway in one minute and 40 seconds while at 45 events, aircraft exits the runway in one minute and 20 seconds.
Roxas said construction of the two taxiways would be completed early next year.
In the meantime, airlines are prohibited from adding new flights, he announced. “Until these measures are realized, there will be no approvals for new flights. We don’t want to worsen the problem. Until we sort out the current problem and institute the capacity buildup measures, there will be no new flights,” Roxas said.
Airline officials were present when he made the announcement. The DOTC chief had invited Philippine Airlines President Ramon S. Ang, Cebu Pacific Air Chief Executive Officer Lance Gokongwei and Zest Air Board Member Art Alejandrino to join the news briefing.
Before the briefing started, Ang had told reporters that PAL would buy 49 new aircraft this year. This purchase is part of the flag carrier’s plan to buy 100 new units in the next five years.
Roxas cited other “burden-sharing ways to address congestion” at the Naia runway.
For instance, commercial flight arrivals and departures will be batched or grouped together to improve runway usage. The plan is from 7 to 7:15 a.m., 10 takeoffs will be allowed followed by 10 landings at 7:15 to 7:30 a.m. This translates to an additional two to four movements per hour.
Also, he said, Naia will be declared a “Captain’s Runway,” meaning only captains can take off from or land on the runway. Currently, first officers are allowed to facilitate flight takeoff of an aircraft as part of their training. With this measure, only the pilot-in-command has full control during takeoffs and landings, ensuring that a flight is within the average of 100 seconds per movement.
The DOTC is transferring commercial flights to and from airports that have night-landing capabilities. Aside from Manila, airports that have such capabilities are Cebu, Davao, Iloilo, Cagayan de Oro, Bacolod, Kalibo, Tacloban, Puerto Princesa, Zamboanga, General Santos and Laoag.
Roxas said airlines have agreed to conduct a study to adjust their schedules in order to transfer most of their flights to night-rated airports instead of lumping them during daytime. He added that this would not happen immediately because the airlines had sold a lot of tickets for future flights.
Fourteen more provincial airports would be night-rated. These airports are Tagbilaran, Legazpi, Dumaguete, Butuan, Ozamiz, Cotabato, Naga, Dipolog, Roxas, Pagadian, Tuguegarao, Busuanga, Surigao and San Jose (Mindoro). Estimated budget for this project is P800 million, exclusive of operational expenses.
Another measure being mulled to further decongest the runway is lowering of fees for takeoffs and landings at nighttime and increasing them at daytime.
Manila International Airport Authority (Miaa) General Manager Angel Honrado said his office is in talks with the Department of National Defense to transfer all general-aviation flights to Sangley Point in Cavite City. There are 82 general aviation flights per day in Naia.
The Department of Tourism has expressed support to the announced cap on flights out of Naia, despite its possible impact on tourist arrivals.
In a text message to the BusinessMirror, DOT Assistant Spokesman Domingo Ramon Enerio III said, “The open- skies policy encourages more direct flights to our secondary destinations so as to improve access without congesting Naia further.”
Avelino Zapanta, president of Southeast Asian Airlines, asked why the government is penalizing carriers for merely supporting its tourism goals. “The airlines invest so much in buying airplanes, then you will reduce their utilization?” he said in a separate interview.
“The government should first remove the general-aviation services and open up provincial airports rather than reduce the [number of] flights of airlines,” Zapanta said.
But, according to Enerio, “there are options that local and foreign carriers can avail of in the form of secondary airports.” He said that Naia is “already operating at 116 percent overcapacity.”
Aviation industry sources, however, said, even if the carriers transfer their flights to off-peak hours, many of their provincial destinations still lack night-landing facilities.
The DOT is targeting 10 million arrivals from abroad and 35.5 million domestic tourists by 2016.
May 9, 2012
By Lenie Lectura and Ma. Stella F. Arnaldo
Instead of reducing the number of their domestic flights from Ninoy Aquino International Airport (Naia), local airlines were told to realign their flight schedules, not mount additional flights, while the government steps up efforts to decongest the runway at the country’s premier airport.
The Department of Transportation and Communications (DOTC) said the number of commercial airlines has doubled to 119 compared to only 62 in 2008. As of 2006, these aircraft had served a total of 18 million passengers, with the number going up to 30 million in 2011. Aircraft movements or takeoffs from and landings at Naia rose to 255,000 in 2011 compared to 171,000 in 2006.
Naia’s runway can only accommodate an average of 36 events, or takeoffs and landings, per hour. But actual scheduled commercial and general aviation flights jumped to as high as 50 events per hour during daytime of the summer season, causing runway congestion and resulting in flight delays and cancellations.
Transportation Secretary Manuel Roxas II told a press briefing on Tuesday that flight schedules of local airlines will be realigned to free up slots during the peak hours of 7 a.m. to 6 p.m. “There will be a re-balance or re-schedule of domestic flights so as to shift bulk of the load to off-peak from peak hours,” he said.
Domestic flights account for 80 percent of the load of the Naia runway.
The government will construct two rapid-exit taxiways worth P300 million each to boost the flight-handling capacity of the runway from 36 to a target of 45 events.
At 36 events, aircraft exits the runway in one minute and 40 seconds while at 45 events, aircraft exits the runway in one minute and 20 seconds.
Roxas said construction of the two taxiways would be completed early next year.
In the meantime, airlines are prohibited from adding new flights, he announced. “Until these measures are realized, there will be no approvals for new flights. We don’t want to worsen the problem. Until we sort out the current problem and institute the capacity buildup measures, there will be no new flights,” Roxas said.
Airline officials were present when he made the announcement. The DOTC chief had invited Philippine Airlines President Ramon S. Ang, Cebu Pacific Air Chief Executive Officer Lance Gokongwei and Zest Air Board Member Art Alejandrino to join the news briefing.
Before the briefing started, Ang had told reporters that PAL would buy 49 new aircraft this year. This purchase is part of the flag carrier’s plan to buy 100 new units in the next five years.
Roxas cited other “burden-sharing ways to address congestion” at the Naia runway.
For instance, commercial flight arrivals and departures will be batched or grouped together to improve runway usage. The plan is from 7 to 7:15 a.m., 10 takeoffs will be allowed followed by 10 landings at 7:15 to 7:30 a.m. This translates to an additional two to four movements per hour.
Also, he said, Naia will be declared a “Captain’s Runway,” meaning only captains can take off from or land on the runway. Currently, first officers are allowed to facilitate flight takeoff of an aircraft as part of their training. With this measure, only the pilot-in-command has full control during takeoffs and landings, ensuring that a flight is within the average of 100 seconds per movement.
The DOTC is transferring commercial flights to and from airports that have night-landing capabilities. Aside from Manila, airports that have such capabilities are Cebu, Davao, Iloilo, Cagayan de Oro, Bacolod, Kalibo, Tacloban, Puerto Princesa, Zamboanga, General Santos and Laoag.
Roxas said airlines have agreed to conduct a study to adjust their schedules in order to transfer most of their flights to night-rated airports instead of lumping them during daytime. He added that this would not happen immediately because the airlines had sold a lot of tickets for future flights.
Fourteen more provincial airports would be night-rated. These airports are Tagbilaran, Legazpi, Dumaguete, Butuan, Ozamiz, Cotabato, Naga, Dipolog, Roxas, Pagadian, Tuguegarao, Busuanga, Surigao and San Jose (Mindoro). Estimated budget for this project is P800 million, exclusive of operational expenses.
Another measure being mulled to further decongest the runway is lowering of fees for takeoffs and landings at nighttime and increasing them at daytime.
Manila International Airport Authority (Miaa) General Manager Angel Honrado said his office is in talks with the Department of National Defense to transfer all general-aviation flights to Sangley Point in Cavite City. There are 82 general aviation flights per day in Naia.
The Department of Tourism has expressed support to the announced cap on flights out of Naia, despite its possible impact on tourist arrivals.
In a text message to the BusinessMirror, DOT Assistant Spokesman Domingo Ramon Enerio III said, “The open- skies policy encourages more direct flights to our secondary destinations so as to improve access without congesting Naia further.”
Avelino Zapanta, president of Southeast Asian Airlines, asked why the government is penalizing carriers for merely supporting its tourism goals. “The airlines invest so much in buying airplanes, then you will reduce their utilization?” he said in a separate interview.
“The government should first remove the general-aviation services and open up provincial airports rather than reduce the [number of] flights of airlines,” Zapanta said.
But, according to Enerio, “there are options that local and foreign carriers can avail of in the form of secondary airports.” He said that Naia is “already operating at 116 percent overcapacity.”
Aviation industry sources, however, said, even if the carriers transfer their flights to off-peak hours, many of their provincial destinations still lack night-landing facilities.
The DOT is targeting 10 million arrivals from abroad and 35.5 million domestic tourists by 2016.
American Air Focuses On Int'l
Manila Bulletin
May 9, 2012
NEW YORK (AP) – American Airlines plans to focus more on international flying and make better use of smaller jets in the U.S. as part of an effort to boost annual revenue by $1 billion within 5 years.
Fort Worth, Texas-based American thinks it can achieve almost two-thirds of that revenue goal by increasing its use of regional jets and making adjustments to better fit its aircraft to travel demand.
"We sometimes fly too many seats at times of day when there is not enough demand to profitably fill them,'' the company said in a memo to employees Monday.
At Chicago O'Hare, for example, United flies large regional jets in off-peak hours to save money, but American doesn't have the ability to do that. Larger regional jets typically have 70 to 100 seats. American's MD- 80s have 140 seats.
American also aims to make agreements, known as code-sharing, with other airlines that will allow it to get more passengers without adding costs. For instance, such an agreement with another airline at New York's John F. Kennedy could feed customers into American's domestic or international flights, depending on the partner.
American also believes it can increase the sale of onboard extras onboard like Wi-Fi, roomier coach seats and lie-flat seats on international flights.
American aims to have 44 percent of its flying on more lucrative overseas flights by 2017, up from 38 percent today.
AMR Corp., American's parent, has been operating under bankruptcy protection since Nov. 29. US Airways Group Inc. has said it's interested in a merger with American.
May 9, 2012
NEW YORK (AP) – American Airlines plans to focus more on international flying and make better use of smaller jets in the U.S. as part of an effort to boost annual revenue by $1 billion within 5 years.
Fort Worth, Texas-based American thinks it can achieve almost two-thirds of that revenue goal by increasing its use of regional jets and making adjustments to better fit its aircraft to travel demand.
"We sometimes fly too many seats at times of day when there is not enough demand to profitably fill them,'' the company said in a memo to employees Monday.
At Chicago O'Hare, for example, United flies large regional jets in off-peak hours to save money, but American doesn't have the ability to do that. Larger regional jets typically have 70 to 100 seats. American's MD- 80s have 140 seats.
American also aims to make agreements, known as code-sharing, with other airlines that will allow it to get more passengers without adding costs. For instance, such an agreement with another airline at New York's John F. Kennedy could feed customers into American's domestic or international flights, depending on the partner.
American also believes it can increase the sale of onboard extras onboard like Wi-Fi, roomier coach seats and lie-flat seats on international flights.
American aims to have 44 percent of its flying on more lucrative overseas flights by 2017, up from 38 percent today.
AMR Corp., American's parent, has been operating under bankruptcy protection since Nov. 29. US Airways Group Inc. has said it's interested in a merger with American.
Canceled Boeing, Airbus Orders Mount
Manila Bulletin
May 9, 2012
PARIS (AFP) – Boeing and Airbus suffered major order cancellations last month, with airlines dropping 25 787 Dreamliners and seven A350s, according to data released by the aircraft manufacturers.
With 25 cancellations of 787 Dreamliners, against 19 orders so far this year, Boeing is in negative territory for its flagship aircraft built with composite materials that it says will use 20 percent less fuel than similarly sized aircraft.
A Boeing spokeswoman said China Eastern Airlines had Shanghai Airlines switched orders of 24 787 Dreamliners for 45 737-88 aircraft. The switch means $800 million less for Boeing at list prices.
A VIP client also canceled an order for a 787 Dreamliner, said Boeing spokeswoman Jennifer Cram, leaving total orders for the aircraft at 854.
For its European counterpart, the cancellation of seven A350-1000 aircraft by Abu Dhabi-based Etihad Airways represented a loss of $2.2 billion at catalogue prices.
The Emirati airline canceled six other A350-1000 aircraft late last year. Airbus said the airline was going through with 12 of the 25 planes it ordered in 2008.
Airbus also declined to comment on the order figures for the A350- 1000, a new aircraft it began assembling last month which also includes many composite materials.
The first A350s are due to be delivered in 2014.
Boeing retained a large advance over Airbus in terms of orders received this year. Boeing's orders stood at 415 on May 1 against 95 for Airbus on April 31.
May 9, 2012
PARIS (AFP) – Boeing and Airbus suffered major order cancellations last month, with airlines dropping 25 787 Dreamliners and seven A350s, according to data released by the aircraft manufacturers.
With 25 cancellations of 787 Dreamliners, against 19 orders so far this year, Boeing is in negative territory for its flagship aircraft built with composite materials that it says will use 20 percent less fuel than similarly sized aircraft.
A Boeing spokeswoman said China Eastern Airlines had Shanghai Airlines switched orders of 24 787 Dreamliners for 45 737-88 aircraft. The switch means $800 million less for Boeing at list prices.
A VIP client also canceled an order for a 787 Dreamliner, said Boeing spokeswoman Jennifer Cram, leaving total orders for the aircraft at 854.
For its European counterpart, the cancellation of seven A350-1000 aircraft by Abu Dhabi-based Etihad Airways represented a loss of $2.2 billion at catalogue prices.
The Emirati airline canceled six other A350-1000 aircraft late last year. Airbus said the airline was going through with 12 of the 25 planes it ordered in 2008.
Airbus also declined to comment on the order figures for the A350- 1000, a new aircraft it began assembling last month which also includes many composite materials.
The first A350s are due to be delivered in 2014.
Boeing retained a large advance over Airbus in terms of orders received this year. Boeing's orders stood at 415 on May 1 against 95 for Airbus on April 31.
Etihad Drops More A350 Orders
Manila Bulletin
May 9, 2012
Paris (Reuters) - European planemark Airbus suffered a fresh setback to its largest twin-engined jet development, the A350-1000, when it emerged that Gulf carrier Etihad had cancelled seven aircraft worth $2.3 billion at current list prices.
The Abu Dhabi-based airline has now halved its order for the 350-seat jet in four months from 25 in November to 12 at the end of April, Airbus monthly figures showed on monday. Airbus has not sold any of the largest variant of its next-generation A350 since beffing up the designs with bigger Rolls-Royce engines last June, while Boeing has benn notching up record orders of the wide-body777. Airbus says it is confident a market will flourish for the long-distance jet and has said its only difficult is the shortage of available delivery slots before 2018 or 2019.
"The A350-1000 is consistently more capable than the (Boeing) 777-300ER. It will cover the world with 25 percent less fuel burn," an Airbus spokesman said.
Etihad was not immediately available for comment.
Airbus push back development of the stretched A350-1000 by two years when it decided to overhaul the design last year. The $320 million jet is now due to enter service in mid-2017.
While smaller versions of the A350 are designed compete with the Boeing 787 Dreamliner, build using similar carbon-fiber materials, the A350-1000 targets Boeing's older 777-300ER.
The Boeing 777 is a 1990s metalic aircraft but dominates a category of its own with seating for 365 passengers in normal layout and a long range. Some A350 customers such as Qatar Airways and Dubai's Emirates have criticized the A350-1000 for failing to deliver a knock-out punch to Boeing's mini-jumbo.
Boeing is considering a refresh of its 777 with new wings and new engines to enter service near the end of the decade.
Etihad ordered the next generation to Airbus jets in July 2008, saying it would be among the worl's most efficient.
The reduced A350-1000 order comes as Airbus makes a relatively slow start to the year after dominating the market in 2011 thanks to a revamp of its best-selling mediumrange A320.
Boeing is catching up with a makeover of its own most-sold 737 model and is so far on track to win the annual order race against its only serious rival for the first time since 2006.
May 9, 2012
Paris (Reuters) - European planemark Airbus suffered a fresh setback to its largest twin-engined jet development, the A350-1000, when it emerged that Gulf carrier Etihad had cancelled seven aircraft worth $2.3 billion at current list prices.
The Abu Dhabi-based airline has now halved its order for the 350-seat jet in four months from 25 in November to 12 at the end of April, Airbus monthly figures showed on monday. Airbus has not sold any of the largest variant of its next-generation A350 since beffing up the designs with bigger Rolls-Royce engines last June, while Boeing has benn notching up record orders of the wide-body777. Airbus says it is confident a market will flourish for the long-distance jet and has said its only difficult is the shortage of available delivery slots before 2018 or 2019.
"The A350-1000 is consistently more capable than the (Boeing) 777-300ER. It will cover the world with 25 percent less fuel burn," an Airbus spokesman said.
Etihad was not immediately available for comment.
Airbus push back development of the stretched A350-1000 by two years when it decided to overhaul the design last year. The $320 million jet is now due to enter service in mid-2017.
While smaller versions of the A350 are designed compete with the Boeing 787 Dreamliner, build using similar carbon-fiber materials, the A350-1000 targets Boeing's older 777-300ER.
The Boeing 777 is a 1990s metalic aircraft but dominates a category of its own with seating for 365 passengers in normal layout and a long range. Some A350 customers such as Qatar Airways and Dubai's Emirates have criticized the A350-1000 for failing to deliver a knock-out punch to Boeing's mini-jumbo.
Boeing is considering a refresh of its 777 with new wings and new engines to enter service near the end of the decade.
Etihad ordered the next generation to Airbus jets in July 2008, saying it would be among the worl's most efficient.
The reduced A350-1000 order comes as Airbus makes a relatively slow start to the year after dominating the market in 2011 thanks to a revamp of its best-selling mediumrange A320.
Boeing is catching up with a makeover of its own most-sold 737 model and is so far on track to win the annual order race against its only serious rival for the first time since 2006.
Tuesday, May 8, 2012
Qantas To Boost Domestic Flights Amid Virgin Challenge
Manila Bulletin
May 8, 2012
By Joe Schneider
Qantas Airways Ltd. (QAN), Australia’s biggest carrier, plans to boost domestic flights to protect its 65 percent share of the market and fend off Virgin Australia Holdings Ltd. (VAH)
The carrier will add seats between Sydney, Melbourne and Brisbane, its busiest routes, in the year starting July 1, according to a statement today. The company is also deferring delivery of two Airbus SAS A380s to help cut capital spending by A$400 million ($410 million) to A$1.9 billion in the year ending June 2013, it said in a separate release.
Qantas Chief Executive Officer Alan Joyce plans to defend the Sydney-based carrier’s “profit-maximizing” 65 percent market share as Virgin adds seats and targets lucrative corporate customers with airport lounges and business-class seats. On intercontinental routes, he has cut capacity to revive operations losing A$200 million a year amid competition from Middle East carriers led by Emirates Airline.
“The domestic market is the pulse and heart of Qantas,” said Peter Harbison, executive chairman of CAPA Centre for Aviation in Sydney, an industry consultant. “They’re weak on the long-haul.”
Delivery of the two new A380s will be delayed until the year ending June 2017 from early 2013. The airline, which already has 12 A380s in service, will get its other six on-order superjumbos by the end of June 2019, it said.
Qantas is also cutting annual operating costs for international services by more than A$300 million, it said in a separate statement. The savings include as much as A$120 million by cutting flights on unprofitable routes and as much as A$100 million from streamlining heavy maintenance and engineering.
May 8, 2012
By Joe Schneider
Qantas Airways Ltd. (QAN), Australia’s biggest carrier, plans to boost domestic flights to protect its 65 percent share of the market and fend off Virgin Australia Holdings Ltd. (VAH)
The carrier will add seats between Sydney, Melbourne and Brisbane, its busiest routes, in the year starting July 1, according to a statement today. The company is also deferring delivery of two Airbus SAS A380s to help cut capital spending by A$400 million ($410 million) to A$1.9 billion in the year ending June 2013, it said in a separate release.
Qantas Chief Executive Officer Alan Joyce plans to defend the Sydney-based carrier’s “profit-maximizing” 65 percent market share as Virgin adds seats and targets lucrative corporate customers with airport lounges and business-class seats. On intercontinental routes, he has cut capacity to revive operations losing A$200 million a year amid competition from Middle East carriers led by Emirates Airline.
“The domestic market is the pulse and heart of Qantas,” said Peter Harbison, executive chairman of CAPA Centre for Aviation in Sydney, an industry consultant. “They’re weak on the long-haul.”
Delivery of the two new A380s will be delayed until the year ending June 2017 from early 2013. The airline, which already has 12 A380s in service, will get its other six on-order superjumbos by the end of June 2019, it said.
Qantas is also cutting annual operating costs for international services by more than A$300 million, it said in a separate statement. The savings include as much as A$120 million by cutting flights on unprofitable routes and as much as A$100 million from streamlining heavy maintenance and engineering.
ACI Sees Global Airline Passenger Traffic To Double By 2029
Manila Bulletin
May 8, 2012
By Edu Lopez
Airport Council International (ACI) has predicted that worldwide passenger traffic would double from 5 billion to 11 billion by 2029.
ACI director general Angele Gittens stressed that need for airports to continue to grow in order to cater to needs of the present and future generations.
She told a symposium on air transport that expansion is critical to economic facilitation worldwide and permission to grow is needed if our industry is to continue operating in benefit of communities worldwide.
To accommodate that growth, airports need better collaboration and cooperation from air transport stakeholders in industry, government, regulators and NGOs, said Gittens.
“Many airports are still viewed by regulators as simple providers of infrastructure, as they have not grasped the evolution of airports into diversified businesses and community partners.“
“In order for airports to provide social and economic benefits to communities, airports need permission to grown from local governments,“ said Gittens.
Government regulatory decisions must be structured in a way that enables airports to attract the interest of the private sector.
ACI's 2011 Economic Survey showed that some US$135 billion in capital expenditure are planned at airports worldwide between 2013 and 2016, excluding the current projects in the Middle East.
“An increasing number of countries are calling on the private sector for the development of aeronautical infrastructure, be it in the form of outright privatizations or public private partnerships,“ said Gittens.
“This necessarily implies the need for states to provide the right economic regulatory framework to allow airport companies to generate the type of financial returns required to attract private investors.“
On the aviation side, the industry needs to demonstrate environment stewardship and in keeping with this responsibility.
The industry has introduced its CO2 Roadmap and ACI has demonstrated its commitment with ACI Europe's Airport Carbon Accreditation Program.
Gittens said airports must also focus on local community issues such as noise, air quality, water, waste and land use if local government and communities are to provide permission to grow.
At the Sixth Aviation and Environment Summit last month in Geneva, the leaders of the industry -airports, airlines, air traffic control and manufacturers -have agreed to do their part to maintain and grow a vibrant, sustainable air transport industry.
May 8, 2012
By Edu Lopez
Airport Council International (ACI) has predicted that worldwide passenger traffic would double from 5 billion to 11 billion by 2029.
ACI director general Angele Gittens stressed that need for airports to continue to grow in order to cater to needs of the present and future generations.
She told a symposium on air transport that expansion is critical to economic facilitation worldwide and permission to grow is needed if our industry is to continue operating in benefit of communities worldwide.
To accommodate that growth, airports need better collaboration and cooperation from air transport stakeholders in industry, government, regulators and NGOs, said Gittens.
“Many airports are still viewed by regulators as simple providers of infrastructure, as they have not grasped the evolution of airports into diversified businesses and community partners.“
“In order for airports to provide social and economic benefits to communities, airports need permission to grown from local governments,“ said Gittens.
Government regulatory decisions must be structured in a way that enables airports to attract the interest of the private sector.
ACI's 2011 Economic Survey showed that some US$135 billion in capital expenditure are planned at airports worldwide between 2013 and 2016, excluding the current projects in the Middle East.
“An increasing number of countries are calling on the private sector for the development of aeronautical infrastructure, be it in the form of outright privatizations or public private partnerships,“ said Gittens.
“This necessarily implies the need for states to provide the right economic regulatory framework to allow airport companies to generate the type of financial returns required to attract private investors.“
On the aviation side, the industry needs to demonstrate environment stewardship and in keeping with this responsibility.
The industry has introduced its CO2 Roadmap and ACI has demonstrated its commitment with ACI Europe's Airport Carbon Accreditation Program.
Gittens said airports must also focus on local community issues such as noise, air quality, water, waste and land use if local government and communities are to provide permission to grow.
At the Sixth Aviation and Environment Summit last month in Geneva, the leaders of the industry -airports, airlines, air traffic control and manufacturers -have agreed to do their part to maintain and grow a vibrant, sustainable air transport industry.
Monday, May 7, 2012
High Fuel Prices Hurt Growth In Global Passengers, Cargoes - IATA
Manila Bulletin
May 7, 2012
By Emmie V. Abadilla
Global passenger demand rose 7.6% and freight demand climbed 0.3% in March versus the same period last year when the Arab Spring disrupted travel in the Middle East and North Africa, the earthquake and tsunami in Japan slowed down travel across Asia-Pacific.
In the absence of these events, year-on-year air travel would have risen 2 percentage points higher, the International Air Transport Association (IATA) estimated.
On the other hand, the timing of the Chinese New Year, which occurred in January this year, affected cargo demand, leading to stronger March 2011 shipments and weaker year-to-year comparisons.
Compared to February 2012, March air cargo demand was significantly stronger by 2.2%.
“If we discount the industry’s growth by two percentage points as a result of the extraordinary events in 2011, airlines still managed to expand by 5-6%,“ observed Tony Tyler, IATA’s
Director General and CEO.
“Given the prevailing economic conditions with some European states returning to recession, passenger demand is holding up well.
But this is bringing little relief to the bottom line because yields are not keeping pace with the continued very high price of oil,” he added.
Oil prices have remained above $100/barrel (Brent crude) for the past 14 months. In 2008, oil prices rose from $90/barrel in January to a peak of $147/barrel in late July. But by November, they had fallen back to less than $50/barrel.
“We have not seen such sustained high oil prices previously. Jet fuel prices have risen 8% since January.
Considering that fuel now accounts for 34% of average operating costs, it’s an increase that hurts,” Tyler remarked.
Total passenger capacity rose 4.4% compared to March 2011, resulting in a load factor of 78.3%, up 2.4 percentage points over the year-ago period. Freight capacity, however, climbed 1.7% year-on-year, above the
rate of demand, placing pressure on load factors.
International air travel rose 9.6% in March compared to the year-ago period, while capacity climbed 5%, resulting in a load factor of 77.7%, up 3.2 percentage points from March 2011.
European airlines recorded the strongest traffic growth among the major regions despite deepening recessions in parts of the continent, with demand up 8.8% year-on-year, on a 4.1% increase in capacity.
Load factor rose to 78.5%. This growth is partly the result of expanding European exports to stronger Asian economies and the associated business travel.
Asia-Pacific carriers also experienced healthy growth, with demand up 8.1% on a 4.3% rise in capacity, pushing load factors up to 76.5%.
Year-to-year comparisons were impacted by the March 2011 Japan earthquake and tsunami, which are estimated to have reduced 2011 demand by 3%, exaggerating year-overyear growth by a like amount.
May 7, 2012
By Emmie V. Abadilla
Global passenger demand rose 7.6% and freight demand climbed 0.3% in March versus the same period last year when the Arab Spring disrupted travel in the Middle East and North Africa, the earthquake and tsunami in Japan slowed down travel across Asia-Pacific.
In the absence of these events, year-on-year air travel would have risen 2 percentage points higher, the International Air Transport Association (IATA) estimated.
On the other hand, the timing of the Chinese New Year, which occurred in January this year, affected cargo demand, leading to stronger March 2011 shipments and weaker year-to-year comparisons.
Compared to February 2012, March air cargo demand was significantly stronger by 2.2%.
“If we discount the industry’s growth by two percentage points as a result of the extraordinary events in 2011, airlines still managed to expand by 5-6%,“ observed Tony Tyler, IATA’s
Director General and CEO.
“Given the prevailing economic conditions with some European states returning to recession, passenger demand is holding up well.
But this is bringing little relief to the bottom line because yields are not keeping pace with the continued very high price of oil,” he added.
Oil prices have remained above $100/barrel (Brent crude) for the past 14 months. In 2008, oil prices rose from $90/barrel in January to a peak of $147/barrel in late July. But by November, they had fallen back to less than $50/barrel.
“We have not seen such sustained high oil prices previously. Jet fuel prices have risen 8% since January.
Considering that fuel now accounts for 34% of average operating costs, it’s an increase that hurts,” Tyler remarked.
Total passenger capacity rose 4.4% compared to March 2011, resulting in a load factor of 78.3%, up 2.4 percentage points over the year-ago period. Freight capacity, however, climbed 1.7% year-on-year, above the
rate of demand, placing pressure on load factors.
International air travel rose 9.6% in March compared to the year-ago period, while capacity climbed 5%, resulting in a load factor of 77.7%, up 3.2 percentage points from March 2011.
European airlines recorded the strongest traffic growth among the major regions despite deepening recessions in parts of the continent, with demand up 8.8% year-on-year, on a 4.1% increase in capacity.
Load factor rose to 78.5%. This growth is partly the result of expanding European exports to stronger Asian economies and the associated business travel.
Asia-Pacific carriers also experienced healthy growth, with demand up 8.1% on a 4.3% rise in capacity, pushing load factors up to 76.5%.
Year-to-year comparisons were impacted by the March 2011 Japan earthquake and tsunami, which are estimated to have reduced 2011 demand by 3%, exaggerating year-overyear growth by a like amount.
Air France-KLM Suffers Loss
Manila Bulletin
May 7, 2012
Air France-KLM said Friday it suffered a first quarter net loss of 368 million euros ($485 million) as higher fuel prices continued to outpace increased revenues.
Sales in the three months to March rose 6.0 percent to 5.6 billion euros, it said, as passenger traffic proved satisfactory while cargo weakened due to the global economic slowdown. Revenue gains were not enough to offset sharply higher fuel costs, which jumped 17.9 percent to 1.68 billion euros in the period, Air France-KLM said.
May 7, 2012
Air France-KLM said Friday it suffered a first quarter net loss of 368 million euros ($485 million) as higher fuel prices continued to outpace increased revenues.
Sales in the three months to March rose 6.0 percent to 5.6 billion euros, it said, as passenger traffic proved satisfactory while cargo weakened due to the global economic slowdown. Revenue gains were not enough to offset sharply higher fuel costs, which jumped 17.9 percent to 1.68 billion euros in the period, Air France-KLM said.
Air Philippines seeks renewal of local permit
Business World
May 7, 2012
AIR PHILIPPINES Corp., which owns budget carrier Airphil Express, is seeking a permit from regulators to extend its domestic operation for another five years, documents from the Civil Aeronautics Board (CAB) showed.
A document dated May 3 showed that Airphil Express applied for “certificate of public conveyance and necessity (CPCN) to operate scheduled domestic air transportation services.”
“Notice is hereby given that Airphil Express has filed with a CAB a petition for a renewal of its CPCN to operate domestic air transportation services,” the document read.
A hearing has been set on May 23 at the CAB office in Pasay City, the document showed.
“Parties opposed to the granting of application must file their written position on or before the date of the hearing...” the document read.
Ma. Alben S.L. Moro, the head of CAB’s hearing division, said in a text message yesterday that Airphil Express’ permit for domestic operations is set to expire this year, adding that permits as such are renewed every five years.
The airline, an affiliate of Philippine Airlines, currently operates 32 regular flights to local destinations in the country and five international routes, the company said in a statement last week.
Alfredo A. Herrera, Airphil Express’ former senior vice-president, earlier said that the carrier is looking to book as much as P11 billion in revenues this year as it gears up to offer more domestic and international flights.
The company, almost doubled its revenue last year to about P8 billion, from P4 billion in 2010.
The company is also hoping to double its passenger traffic to 8 million this year from 3.8 million last year on the back of the additional flights and growth in the travel market.
May 7, 2012
AIR PHILIPPINES Corp., which owns budget carrier Airphil Express, is seeking a permit from regulators to extend its domestic operation for another five years, documents from the Civil Aeronautics Board (CAB) showed.
A document dated May 3 showed that Airphil Express applied for “certificate of public conveyance and necessity (CPCN) to operate scheduled domestic air transportation services.”
“Notice is hereby given that Airphil Express has filed with a CAB a petition for a renewal of its CPCN to operate domestic air transportation services,” the document read.
A hearing has been set on May 23 at the CAB office in Pasay City, the document showed.
“Parties opposed to the granting of application must file their written position on or before the date of the hearing...” the document read.
Ma. Alben S.L. Moro, the head of CAB’s hearing division, said in a text message yesterday that Airphil Express’ permit for domestic operations is set to expire this year, adding that permits as such are renewed every five years.
The airline, an affiliate of Philippine Airlines, currently operates 32 regular flights to local destinations in the country and five international routes, the company said in a statement last week.
Alfredo A. Herrera, Airphil Express’ former senior vice-president, earlier said that the carrier is looking to book as much as P11 billion in revenues this year as it gears up to offer more domestic and international flights.
The company, almost doubled its revenue last year to about P8 billion, from P4 billion in 2010.
The company is also hoping to double its passenger traffic to 8 million this year from 3.8 million last year on the back of the additional flights and growth in the travel market.
Etihad Airways Named Middle East's Leading Airline For 6th Year
Manila Bulletin
May 7, 2012
Etihad Airways has again cleaned up at the prestigious World Travel Awards Middle East.
The carrier was named the Middle East's Leading Airline for the sixth year in a row at a glittering black tie gala in Dubai this week.
The accolade was one of four awards won by the national airline of the United Arab Emirates.
Etihad Airways was also recognized for the Middle East's Leading Airline First Class, Leading Airline Inflight Ebtertainment and Leading Cabin Staff.
The World Travel Awards (WTA), described by the Wall Street Journal as the "travel industry's equivalent to the Oscars," are voted for by passengers and travel agents from 160 countries.
"Winning a World Travel Award is the highest commendation in the travel and tourism industry and this triumph serves as a testament to Etihad Airways' hard work and commitment to excellence over the last 12 months," said Graham Cooke, WTA Chairman and Founder.
"Etihad Airways has become a global super-brand in just eight years. The past years has been particularly fruitful, as it reported its first full-year profit and continued its global expansion," he said.
Etihad Airways President and Chief Executive Officer James Hogan said the airline was honored to be recognized yet again by such an esteemed organization.
"I am immensely proud to see etihad Airways hold onto the coveted title of Middle East's Leading Airline. Not only that, but this is also the sixth year in a row that we have taken home the regional honors for Leading Airline First Class and the third year in a row to be recognised for Leading Cabin Staff. Such accolades in our home market - a very competitive market - are a huge accomplishment. The Etihad Airways brand has now clearly been cemented among the world's commitment to providing inspiring experiences and the best of modern Arabian hospitality," Hogan said.
May 7, 2012
Etihad Airways has again cleaned up at the prestigious World Travel Awards Middle East.
The carrier was named the Middle East's Leading Airline for the sixth year in a row at a glittering black tie gala in Dubai this week.
The accolade was one of four awards won by the national airline of the United Arab Emirates.
Etihad Airways was also recognized for the Middle East's Leading Airline First Class, Leading Airline Inflight Ebtertainment and Leading Cabin Staff.
The World Travel Awards (WTA), described by the Wall Street Journal as the "travel industry's equivalent to the Oscars," are voted for by passengers and travel agents from 160 countries.
"Winning a World Travel Award is the highest commendation in the travel and tourism industry and this triumph serves as a testament to Etihad Airways' hard work and commitment to excellence over the last 12 months," said Graham Cooke, WTA Chairman and Founder.
"Etihad Airways has become a global super-brand in just eight years. The past years has been particularly fruitful, as it reported its first full-year profit and continued its global expansion," he said.
Etihad Airways President and Chief Executive Officer James Hogan said the airline was honored to be recognized yet again by such an esteemed organization.
"I am immensely proud to see etihad Airways hold onto the coveted title of Middle East's Leading Airline. Not only that, but this is also the sixth year in a row that we have taken home the regional honors for Leading Airline First Class and the third year in a row to be recognised for Leading Cabin Staff. Such accolades in our home market - a very competitive market - are a huge accomplishment. The Etihad Airways brand has now clearly been cemented among the world's commitment to providing inspiring experiences and the best of modern Arabian hospitality," Hogan said.
Sunday, May 6, 2012
Qantas Airways Delays A380 Deliveries
Manila Bulletin
May 6, 2012
SYDNEY (AFP) – Embattled carrier Qantas Airways said Friday it will delay the delivery of two A380 super-jumbos as part of a further Aus$400 million (US$410 million) in spending cuts as it works to turn its business around.
The Australian airline had already announced Aus$500 million in cuts in February, which included job losses for cabin crew and pilots as well as in catering, engineering and ground operations. Qantas has also been reviewing its maintenance operations to identify how to keep costs down, which could see more jobs go.
Chief executive Alan Joyce said the latest savings would come from delaying the delivery of two Airbus A380s.
Qantas was to receive two of the superjumbos in early 2013, but will now get them in the 2016/17 financial year. Another six A380s will be delivered to Qantas from 2018/19.
The changes will cut Qantas's capital expenditure by Aus$400 million in 2012/13 to Aus$1.9 billion.
Joyce said the decision was consistent with the group's commitment to financial discipline.
''Our priorities remain to build on our strong domestic business, enhance Qantas Frequent Flyer, turn around Qantas International and grow Jetstar in Asia,'' he said.
Joyce added that the group's balanced portfolio left it well-placed amid ongoing high fuel prices and the changing global economy, while taking advantage of growth opportunities in Australia, Asia and elsewhere.
''We are acting decisively now to po¬sition ourselves for strong, sustainable growth over the long term,'' he said.
The latest cuts come after the carrier posted an 83 percent slump in first-half net profit in the six months to December to Aus$42 million.
High fuel costs played a part, as did Joyce pulling all Qantas planes out of the skies for 48 hours last October as part of a row with staff over plans to shift the focus of its ailing international arm to Asia. The airline said Friday progress continued on shaking up its international operation with benefits of Aus$280-$365 million to be realized across financial years 2012-14, from cost savings and halting loss-making routes.
May 6, 2012
SYDNEY (AFP) – Embattled carrier Qantas Airways said Friday it will delay the delivery of two A380 super-jumbos as part of a further Aus$400 million (US$410 million) in spending cuts as it works to turn its business around.
The Australian airline had already announced Aus$500 million in cuts in February, which included job losses for cabin crew and pilots as well as in catering, engineering and ground operations. Qantas has also been reviewing its maintenance operations to identify how to keep costs down, which could see more jobs go.
Chief executive Alan Joyce said the latest savings would come from delaying the delivery of two Airbus A380s.
Qantas was to receive two of the superjumbos in early 2013, but will now get them in the 2016/17 financial year. Another six A380s will be delivered to Qantas from 2018/19.
The changes will cut Qantas's capital expenditure by Aus$400 million in 2012/13 to Aus$1.9 billion.
Joyce said the decision was consistent with the group's commitment to financial discipline.
''Our priorities remain to build on our strong domestic business, enhance Qantas Frequent Flyer, turn around Qantas International and grow Jetstar in Asia,'' he said.
Joyce added that the group's balanced portfolio left it well-placed amid ongoing high fuel prices and the changing global economy, while taking advantage of growth opportunities in Australia, Asia and elsewhere.
''We are acting decisively now to po¬sition ourselves for strong, sustainable growth over the long term,'' he said.
The latest cuts come after the carrier posted an 83 percent slump in first-half net profit in the six months to December to Aus$42 million.
High fuel costs played a part, as did Joyce pulling all Qantas planes out of the skies for 48 hours last October as part of a row with staff over plans to shift the focus of its ailing international arm to Asia. The airline said Friday progress continued on shaking up its international operation with benefits of Aus$280-$365 million to be realized across financial years 2012-14, from cost savings and halting loss-making routes.
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