Overview
It has been a mixed week in Asia Pacific aviation as the Association of Asia-Pacific Airlines (AAPA) disclosed a 5.4% 2015 revenue decline at the region’s airlines, including significant yield drops. Full service carriers suffered the brunt of the shift, with the downward trend juxtaposed by the results of the budget sector. India’s LCCs reported considerable passenger increases and better loads and Vietnam’s VietJet Air placed an order for 100 B737 MAXs; its first purchase from Boeing. In Indonesia, the government imposed more fines on Indonesia AirAsia and Lion Air for safety breaches and at Malaysia Airlines, senior management committed to another two A350s and formed an MRO joint-venture with Lufthansa Technik. In Hong Kong, Cathay Pacific Airways and Swire Pacific chairman, John Slosar, identified six big trends in aviation in 2016 at a BOC Aviation sponsored Lunch with Orient Aviation.
Cathay chairman predicts Chinese carrier expansion will be the next big thing in global aviation Read More »
News
VietJet Air was in the headlines this week after it signed a firm order for 100 B737 MAX 200 aircraft, worth $11.3 billion at list prices, with deliveries scheduled from 2019 to 2023. It was Boeing’s biggest order from Vietnam to date and will bring the low-cost carrier’s fleet to more than 200 aircraft by 2023, surpassing flag carrier Vietnam Airlines’ (VN) fleet for the first time. Read More »
News
Haikou-headquartered HNA Group will acquire an initial 7% shareholding in Atlantic Gateway, the private consortium that owns 50% of Portuguese flag carrier, TAP Portugal, ATW has reported, citing TAP spokesperson, Isabel Palma. HNA could eventually increase its TAP equity to 20%, the report said. Read More »
News
Lion Air barred from adding routes for six months
Indonesia's largest carrier, Lion Air, will be barred from adding domestic and international routes for six months after the airline recorded frequent delays, cancellations and safety contraventions, Reuters reported this week. Read More »
News
Indian domestic passenger numbers up 20% in 2015
The Indian aviation industry has reason to cheer after the Directorate General of Civil Aviation (DGCA) this week said local carriers carried 81.09 million domestic passengers in 2015, 20.34% more than the previous year. Read More »
News
U.S. manufacturer Boeing this week opened a $1 billion B777X composite wing shop at its Everett complex. The facility, which covers more than 27 acres under one roof, is the equivalent of 25 [American] football fields,” Boeing said in a statement. Read More »
News
MAB leases two more A350s and forms a standalone cargo unit
Malaysia Airlines Berhad (MAB) this week announced twelve-year lease agreements for an additional two A350-900s with Air Lease Corporation (ALC). This follows MAB’s September 2015 deal for four new A350s with the Los Angeles-based lessor. Read More »
News
South Korean carriers report mixed first quarter results as Won weakens
Korean Air, South Korea's flag carrier, has reported a record first-quarter operating income of 323.3 billion won ($272 million), up 70.2% year-on-year, amid solid demand and the low oil price. Read More »
News
Hongtu Airlines launches in Kunming and one more cargo carrier starts up in Guangzhou
There appears to be no near end in sight to the number of new carriers taking to the skies in China. This week Hongtu Airlines, a start-up based at Kunming’s Changshui International Airport, received its Air Operator’s Certificate from the Civil Aviation Administration of China’s (CAAC’s) southwest branch and immediately launched domestic services with two A321s it had previously acquired. Read More »
News
Asia-Pacific airline industry association reports robust 2015 profits but declining yields
Asia-Pacific carriers reported a combined net profit of $6.9 billion in calendar year 2015, sharply reversing a $1.2 billion 2014 loss, the Association of Asia-Pacific Airlines (AAPA) has reported. Read More »
News
TransAsia halves long-haul fleet as cost cuts deepen
Taiwan’s TransAsia Airways is not in good shape. After the crashes of two of its ATR72s in 2014 and 2015, passengers have avoided the carrier and regulators have imposed a moratorium on new routes for a period of one year after each accident at the airline. Read More »
People
Cathay Dragon CEO, Algernon Yau, 57, will step back from running the airline for a period of extended leave of absence, the airline said in a surprise announcement yesterday. Yau, who will remain an executive director of Cathay Pacific, will be succeeded by Cathay’s current director of corporate affairs, James Tong, who will be acting CEO of Cathay Dragon. Read More »
Short Takes
Airlines
Etihad Airways Group has raised an additional $500 million in financing, building on the $700 million it secured in 2015. The funds will be sued for capital expenditure, fleet investments and refinancing. NokScoot CEO, Piya Yodmani, told the Bangkok Post his carrier is evaluating the A330neo against the B787 for its fleet renewal. Read More »
