Transportation Industry

Airline Finance News - Asia / Pacific

AirGuide Business, June 23, 2008

Jun 23, 2008

China International Capital reported that cross-strait routes will be among the most profitable for mainland carriers. It predicted passenger volumes will double those on flights to/from Hong Kong and Korea, which contribute about CNY5 billion in annual net income to mainland carriers. Jun 19, 2008

U.S. carriers want to maintain their rights to fly to China but say they cannot afford to maintain all service or add new routes. Airlines, which are facing record fuel prices, asked the White House to preserve their rights for two years in a joint application. They expect a DoT decision soon. Jun 16, 2008

Air Mauritius

Air Mauritius expects its profit for the year ending March 31, 2009, to fall to EUR4 million from the EUR16 million it earned in the recently completed year, according to a statement cited by Reuters. It said the drop is due to "prevailing market conditions and current fuel prices." Jun 16, 2008

AirAsia

AirAsia CEO Tony Fernandes said the LCC will be "comfortable" even if oil prices reach $200 per barrel, the Associated Press reported from Kuala Lumpur. AirAsia also will focus on boostin onboard sales, AP reported. AirAsia reported a MYR161.3 million ($49.1 million) first-quarter profit, up 86% year-over-year. Jun 17, 2008

Cathay Pacific

Cathay Pacific Airways and Dragonair flew 7.59 billion RPKs in May, up 19.6% on the year-ago month, against a 16% increase in capacity to 9.81 billion ASKs. Load factor rose 2.3 points to 77.4%. Jun 17, 2008

EVA Airways, China Eastern Airlines

EVA Airways signed an agreement on Friday with China Eastern Airlines to collaborate on ticket issues and luggage handling. China Eastern also wants to fly direct to Taiwan. Other mainland airlines assigned by regulators to fly direct to Taiwan include China Southern Airlines, Air China, Hainan Airlines and Xiamen Airlines. China has claimed sovereignty over self-ruled and democratic Taiwan since the Chinese civil war and has pledged to bring the island under its control, by force if necessary. But new Taiwan President Ma Ying-jeou has pledged to boost the economy by improving trade with China. Jun 20, 2008

Japan Airlines

Japan Airlines said the JAL Flight Crew Union (1,100 members), JAL Japan Pilots Union (600) and Japan Air Commuter union (113) staged a strike yesterday, forcing cancellation of 86 flights (all related to the JAC walkout). JAL added that the pilots' action was "for a variety of reasons, including the summer bonus." It said unions may continue the strike today, which would affect more flights. Jun 19, 2008

Qantas Airways

Qantas Airways has said it will take all necessary measures to minimize the impact of strike action by the Australian Licensed Engineers Association (ALAEA) planned for next week over pay. The ALAEA has announced industrial action in five major cities after failing to agree a pay deal. The union had asked for a 5% wage increase for 1,500 engineers but the airline has refused this and only offered 3%. "The union is determined to disrupt the travel plans of Qantas customers, and we are equally determined to diminish the impact of its strike action," said Qantas general manager, Kevin Brown. Jun 19, 2008

Qantas Airways

Driven by the escalating cost of oil a barrel almost reached $140 yesterday, Qantas CEO Geoff Dixon said that the changes would focus on the airline[sup.1]s QantasLink regional operations in New South Wales and Victoria. Specifically, the cuts will see QantasLink[sup.1]s six remaining Bombardier DHC-8-100 aircraft by August this year, closing the loss-making Melbourne-Wollongong route by 18 July and exiting the previously-suspended Melbourne/Sydney/Newcastle service. In addition the withdrawal of the DHC-8-100 series from the fleet will result in the closure of the maintenance base in Mildura. The older Dash-8 aircraft have proved to be uneconomical in the current fuel climate and that, coupled with a poor return on the Wollongong route has meant the end of service. Jun 17, 2008

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