http://www.centreforaviation.com The latest analysis from the Centre for Asia Pacific Aviation en-us CAPA Utopia Fri, 12 Mar 2010 08:02:00 GMT http://blogs.law.harvard.edu/tech/rss http://www.centreforaviation.com/images/logos/capalogo-144x30.png 144 30 http://www.centreforaviation.com http://www.centreforaviation.com/news/share-market/2010/03/12/kenya-airways-and-jazeera-airways-lead-the-rally-but-comair-slips/page1 http://www.centreforaviation.com/news/share-market/2010/03/12/kenya-airways-and-jazeera-airways-lead-the-rally-but-comair-slips/page1 The majority of African and Middle East carriers’ shares gained on Thursday (11-Mar-2010), with Comair (-0.4%) the only carrier to slip, taking an edge of its gains the day prior. Fri, 12 Mar 2010 08:02:00 GMT http://www.centreforaviation.com/news/2010/03/12/european-lccs-now-carry-a-third-of-all-pax-can-full-service-airlines-confine-damage-to-short-haul/page1 http://www.centreforaviation.com/news/2010/03/12/european-lccs-now-carry-a-third-of-all-pax-can-full-service-airlines-confine-damage-to-short-haul/page1 As European LCCs such as Air Berlin, Ryanair, easyJet, Vueling and Wizzair expanded their capacity and traffic in 2009, their full service competitors have been in contraction mode, as they sought to reduce losses.The members of the Association of European Airlines (AEA) handled 20 million fewer passengers in the year, a reduction of nearly 6%. Within Europe, where they compete directly with the short haul LCCs, cross-border traffic was down 5.3%. the members of the European Low Fare Association (ELFAA), by contrast, increased passenger numbers by 8.7%, to 13 million. Fri, 12 Mar 2010 07:58:00 GMT http://www.centreforaviation.com/news/2010/03/12/will-us-mainline-pilots-cede-more-ground-to-regional-airlines/page1 http://www.centreforaviation.com/news/2010/03/12/will-us-mainline-pilots-cede-more-ground-to-regional-airlines/page1 With so many labour contracts in play, one of the main objectives for US mainline carriers will be further scope clause relief, as suggested by Continental, which is at such a competitive disadvantage in being unable to operate any regional jet larger than 50 seats. Should past contract agreements be prologue, then it is highly likely that pilots will trade scope relief for gaining their top objectives ultimately by ceding mainline narrowbody flying in the US domestic market, according to MIT International Center for Air Transportation Research Engineer, Bill Swelbar. The impact could have a profound impact not only regionals, but on the aircraft now in development and coming to delivery in the next few years. Fri, 12 Mar 2010 07:39:00 GMT http://www.centreforaviation.com/news/share-market/2010/03/12/gol-reports-net-profit-for-fy2009-southwest-and-american-lead-passenger-numbers-for-2009/page1 http://www.centreforaviation.com/news/share-market/2010/03/12/gol-reports-net-profit-for-fy2009-southwest-and-american-lead-passenger-numbers-for-2009/page1 North and South American shares were mixed on Friday (11-Mar-2010), despite IATA cutting its industry losses forecast for 2010 and the wider US market rallying for a third consecutive day. Fri, 12 Mar 2010 07:33:00 GMT http://www.centreforaviation.com/news/2010/03/12/indonesian-aviation-enters-exciting-new-chapter-outlook-2010/page1 http://www.centreforaviation.com/news/2010/03/12/indonesian-aviation-enters-exciting-new-chapter-outlook-2010/page1 Indonesia is a high-potential aviation market, with a strong natural requirement for air services and a large population with rising incomes to support the industry. The rationalisation of domestic capacity over the past two years has helped restore financial health to the airline sector – to the point where Garuda Indonesia is planning a landmark IPO later this year. Overall domestic capacity levels fell 9.4% in 2008, with a further 12.7% contraction in 2009, meaning domestic capacity has returned to 2004 levels in 2009. Fri, 12 Mar 2010 07:30:00 GMT http://www.centreforaviation.com/news/2010/03/12/indonesian-aviation-enters-an-exciting-new-chapter-outlook-2010/page1 http://www.centreforaviation.com/news/2010/03/12/indonesian-aviation-enters-an-exciting-new-chapter-outlook-2010/page1 Indonesia is a high-potential aviation market, with a strong natural requirement for air services and a large population with rising incomes to support the industry. The rationalisation of domestic capacity over the past two years has helped restore financial health to the airline sector – to the point where Garuda Indonesia is planning a landmark IPO later this year. Overall domestic capacity levels fell 9.4% in 2008, with a further 12.7% contraction in 2009, meaning domestic capacity has returned to 2004 levels in 2009. Fri, 12 Mar 2010 07:29:00 GMT http://www.centreforaviation.com/news/share-market/2010/03/12/spicejet-shares-gain-on-foreign-stake-sale-news/page1 http://www.centreforaviation.com/news/share-market/2010/03/12/spicejet-shares-gain-on-foreign-stake-sale-news/page1 SpiceJet’s shares gained 3.5% on reports in the local media that WR Ross & Sons, Goldman Sachs and Dubai’s Istithmar may increase their stake in the carrier to 40.27%, through the conversion of foreign currency convertible bonds and warrants to equity. Fri, 12 Mar 2010 06:48:00 GMT http://www.centreforaviation.com/news/share-market/2010/03/12/aircastle-gains-strongly-with-good-full-year-result-eads-continues-slide--suppliers-share-wrap/page1 http://www.centreforaviation.com/news/share-market/2010/03/12/aircastle-gains-strongly-with-good-full-year-result-eads-continues-slide--suppliers-share-wrap/page1 Aircastle has continued a solid series of profit reports for aircraft leasing companies, declaring a net profit of USD23 million in 4Q2009 and a full year result of USD104.8 million. While the result is a decrease of 30% on the USD150.1 million profit it reported in 2008, the company was satisfied to report it is entering 2010 in a “stronger, more competitive position”. Fri, 12 Mar 2010 06:45:00 GMT http://www.centreforaviation.com/news/share-market/2010/03/12/lufthansa-reports-net-loss-for-fy2009-vueling-load-factor-not-as-strong-as-expected/page1 http://www.centreforaviation.com/news/share-market/2010/03/12/lufthansa-reports-net-loss-for-fy2009-vueling-load-factor-not-as-strong-as-expected/page1 European carrier shares fell with the wider market on Thursday (11-Mar-2010), on concerns China will increase interest rates after a rise in inflation in the country. Investors were also disappointed with economic data from the US, which pushed down Wall Street. Fri, 12 Mar 2010 06:40:00 GMT http://www.centreforaviation.com/news/share-market/2010/03/12/tav-airports-holding-company-reports-highest-ever-net-profit/page1 http://www.centreforaviation.com/news/share-market/2010/03/12/tav-airports-holding-company-reports-highest-ever-net-profit/page1 Shares in Turkey’s TAV Airports Holding Company closed 0.9% higher yesterday, upon the release of the company’s financial report for the 12 months ended 31-Dec-2009. The airport operator reported a record high net profit for the year of EUR51.5 million, up ten-fold from a EUR4.7 million net profit in 2008. Fri, 12 Mar 2010 04:49:00 GMT http://www.centreforaviation.com/news/2010/03/12/iata-cuts-2010-loss-forecast-by-half-and-reduces-2009-loss-estimate-but-losses-to-remain-sizeable/page1 http://www.centreforaviation.com/news/2010/03/12/iata-cuts-2010-loss-forecast-by-half-and-reduces-2009-loss-estimate-but-losses-to-remain-sizeable/page1 The International Air Transport Association (IATA) has halved its airline industry loss forecast for 2010 to USD2.8 billion (compared to the USD5.6 billion loss forecast in Dec-2009) and lowered its 2009 loss estimate from a previously forecast USD11 billion to USD9.4 billion. The upgrade is largely driven by a “much stronger” recovery in demand seen by year-end gains that continued into the early months of 2010. Fri, 12 Mar 2010 02:58:00 GMT http://www.centreforaviation.com/news/share-market/2010/03/12/malaysia-airlines-and-thai-airways-fall-eva-air-gains/page1 http://www.centreforaviation.com/news/share-market/2010/03/12/malaysia-airlines-and-thai-airways-fall-eva-air-gains/page1 Thai Airways’ shares eased 1.6% yesterday as the social and political atmosphere heats up again in Bangkok. Fri, 12 Mar 2010 02:43:00 GMT http://www.centreforaviation.com/news/2010/03/12/iata-oil-is-the-wild-card---fuel-watch/page1 http://www.centreforaviation.com/news/2010/03/12/iata-oil-is-the-wild-card---fuel-watch/page1 IATA Director General and CEO, Giovanni Bisignanni, labelled oil prices as the “wild-card” for airlines this year, even as it has halved its forecast for industry losses in 2010 from USD5.6 billion to USD2.8 billion. Fri, 12 Mar 2010 02:07:00 GMT http://www.centreforaviation.com/news/2010/03/12/airlines-making-do-with-current-fleets-american-united-southwest-updates/page1 http://www.centreforaviation.com/news/2010/03/12/airlines-making-do-with-current-fleets-american-united-southwest-updates/page1 US airlines are largely making do with their current fleets, with capital expenditure mostly going into upgrading the passenger experience or the efficiency of the aircraft. That much was clear from executive comments at this week's JP Morgan conference. Legacy carrier CEOs spoke of upgrading the front cabins with lie-flat seats and other premium amenities, while low-cost carriers spoke of slowing deliveries of aircraft on order and upgrading with wi-fi and efficiency improvements. Fri, 12 Mar 2010 01:24:00 GMT http://www.centreforaviation.com/news/2010/03/11/british-airways-american-and-friends-offer-eu-to-lease-heathrow-slots/page1 http://www.centreforaviation.com/news/2010/03/11/british-airways-american-and-friends-offer-eu-to-lease-heathrow-slots/page1 “The Commission believes at this stage that the commitments address its competition concerns…If the market test confirms that the proposed commitments remedy the competition concerns, the Commission may adopt a decision...making the commitments legally binding on the parties,”: European Commission, 10-Mar-2010. AP quoted EU spokeswoman Amelia Torres as saying "the offer could see rivals start two extra daily flights each from London to New York and from London to Boston and one more daily service from London to Dallas and from London to Miami.” In a bid to ease the passage of EU Commission approval of their north Atlantic joint venture, British Airways and its would-be partners have offered to provide additional access to valuable Heathrow slots for selected city pairs. Will this be sufficient to appease the opposition? The EU appears to be leaning towards approval. Thu, 11 Mar 2010 09:00:00 GMT