December 1st 2024

Print Friendly

JULY

Australia’s already-concentrated domestic aviation market shrunk again this month when Rex became the country’s second airline this year, after Bonza, to enter voluntary administration. Read More »

The airline grounded its 737-800 fleet serving major capital city routes but its regional services, flown by Saab 340 turboprops, continue to operate through administration supported by an Australian government multi-million guarantee.

Fresh from recently reporting its highest annual profit in its history, SIA announced profits tumbled 38.4% in the April to June quarter compared with a year ago. And its problems were a mirror of the industry region wide-heightened competition, supply chain constraints, inflationary cost pressures and geopolitical uncertainties.

Japan’s two major airline groups - All Nippon Airways and Japan Airlines (JAL) - also posted quarterly profit declines albeit not as severe as SIA’s results.

But despite these immediate challenges, there was cause for optimism given aviation’s recovery from the deep slump of the pandemic.

This positive trend was reflected during the month when Cathay Pacific bought back all outstanding preference shares issued to the Hong Kong Special Administrative Region government as part of the company’s 2020 recapitalisation financing when COVID-19 spread across the globe.

There also were significant aircraft orders in the month. Cebu Pacific confirmed an order for up to 102 A321neos and purchase rights for 50 A320neo family aircraft. Bhutan’s Drukair agreed a Memorandum of Understanding for three A320neos and two A321XLRs. Japan Airlines ordered 10 787-9s plus options on another 10 and Korean Air signed an intent to Purchase 20 777-9X and 20 787-10s and options for 10 787s.

In a welcome change, Boeing announced some encouraging news. It’s much delayed 777-9X had commenced type certification flight testing. Originally scheduled to enter into service in 2020, the wide-body is now scheduled to enter service in 2026.

The 777-9X is a key part of the fleet plans at many Asia-Pacific airlines, among them Air India, All Nippon Airways, Cathay Pacific and SIA.

Another key aircraft type for Asia-Pacific airline fleets is the A321XLR long-range narrow-body. It received its type certification from the European Union Aviation Safety Authority in the month.

AirAsia X, IndiGo, Qantas Group and VietJet have ordered this aircraft. It entered into service with launch customer Iberia in November.

China’s ARJ21 reached a milestone this month when Chengdu Airlines successfully flew the type to a higher plateau airport. The flight from Kashgar Laining International Airport to Tashkurgan Khunjerab Airport was undertaken at a published altitude of 3,260m above sea level.