Overview
This week in Asia-Pacific aviation has been dominated by the mainland Chinese carriers’ disappointing first half results.
China’s “Big Three” have collectively pointed to a weakened Chinese yuan and waning demand for premium travel to explain their profit drops and losses. Their combined outlooks remain sobering, too, given Beijing’s accelerated anti-graft campaign that is driving premium passengers away from flying upfront, or, altogether. Add to that a burgeoning low-cost carrier (LCC) scene and we find an aviation environment that could easily turn toxic without further government intervention. Read More »
Airline News
Commission to investigate MAS losses likely, Jauhari stays
Malaysia’s opposition Pan-Malaysian Islamic Party, or PAS in short, has called on the government to set up a Royal Commission of Inquiry (RCI) to investigate Malaysia Airline System Bhd.’s losses over the years, says Malaysian news daily The Rakyat Post. Read More »
Airline News
PAL ownership decision imminent, mulls international expansion
A San Miguel Corp decision on whether it will sell its stake in Philippine Airlines' parent PAL Holdings Inc. to business tycoon and partner Lucio Tan, or buy Tan out, is expected for later this week. Read More »
Airline News
Thai Airways International (THAI) is struggling to make ends meet and has embarked on a restructuring mission aimed at turning its fortunes around after a net loss of THB7.654 billion (US$236 million) in second-quarter 2014, more than double its THB2.899 billion loss in the year-ago period, and the fifth consecutive quarter of losses for the legacy carrier. Read More »
Financial Round Up
Bahrain’s Gulf Air has cut its first-half 2014 losses “by more than 30%” compared to the same period a year ago, the airline said. Read More »
Financial Round Up
Nok Air, Thailand’s second-largest LCC after Thai AirAsia (TAA), said it expected a lower net loss in the third quarter than in the second, and aims at turning a profit in the fourth due to a rising trend in passenger numbers. Read More »
People
AirAsia X Bhd has appointed Chew Eng Loke as its chief financial officer (CFO) with immediate effect. Read More »
Short Takes
Airlines: Indonesian authorities have approved an AirAsia X joint venture – Indonesia AirAsia X – although its first routes and launch date have not yet been announced. Cathay Pacific Airways has received regulatory approval to allow passengers to keep their digital devices on during take-off and landing. Read More »
