Strategy – Page 158
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NewsVirgin Australia bows out of Hong Kong market
Virgin Australia has decided to drop Hong Kong services, citing the ongoing civil unrest and the recent coronavirus outbreak. Following a “comprehensive review of the route”, the carrier will cease service on Sydney-Hong Kong from 2 March, after the previously announced suspension of Melbourne-Hong Kong from 11 February. Cirium schedules ...
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NewsSAA slashes network as it strives for profitability
South African Airways is cutting around half of its long-haul routes and almost all of its domestic network, the flag carrier’s “business rescue practitioners” have disclosed as they seek to transform it into a sustainable and profitable business.
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NewsVietnamese conglomerate nixes Vinpearl Air startup
Vietnamese conglomerate Vingroup has abandoned plans to establish an airline known as Vinpearl Air, citing a desire to focus on its core strengths and a potential oversupply in the aviation market.
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NewsKorean Air offloads non-core assets and pledges transparency
Korean Air is selling non-core assets in a bid to “improve its financial position and increase its corporate transparency”. This includes real estate in downtown Seoul and a 100% owned leisure company that operates a resort in Incheon, just outside Seoul. Plans for the assets in question had to be ...
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NewsJAL signs codeshare pacts with MIAT Mongolian and Royal Brunei
Japan Airlines is extending its reach into Mongolia and Brunei through codesharing pacts with their respective flag carriers. JAL says the codeshare with MIAT Mongolian Airlines would cover that carrier’s flights from Ulaanbaatar to Tokyo Narita and Osaka Kansai, starting 31 March. Cirium schedules data show that MIAT flies five ...
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NewsCathay Pacific asks staff to take unpaid leave amid coronavirus fallout
Cathay Pacific is encouraging its employees to take three weeks of unpaid leave, in a bid to save money, after being forced to slash capacity by 30% as a result of falling demand related to China’s coronavirus outbreak.
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NewsQatar Airways in negotiations to acquire 49% of RwandAir
Qatar Airways is in talks to acquire a 49% stake in state-owned RwandAir and is “keen to invest” in Indian low-cost carrier IndiGo when the time is right, the Gulf carrier’s chief executive Akbar Al Baker disclosed today.
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NewsCoronavirus outbreak forces Cathay to slash capacity by 30%
Cathay Pacific and Cathay Dragon will cut 90% of its mainland China flights over the next two months, citing a “consequential significant drop” in market demand owing to the coronavirus outbreak. The two carriers add that there will be “significant reductions” across the rest of their respective networks for the ...
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NewsCebu Pacific expects up to $79 million hit from coronavirus
Cebu Pacific expects the coronavirus outbreak to impact its bottom line by up to Ps4 billion ($79 million). The low-cost carrier estimates that it will see “a Ps3-4 billion swing on profit” should the outbreak remain unabated over the next six months. It makes this estimate based on 2003’s Severe ...
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NewsAirAsia names acting chief amid Airbus probe
Bo Lingam has been appointed AirAsia Group’s acting chief executive, after founders Tony Fernandes and Kamarudin Meranun stepped down temporarily to facilitate an independent probe into Airbus bribery allegations. Lingam is currently the group’s president for airlines and will serve in the acting role for two months “or such other ...
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NewsAirAsia chiefs deny wrongdoing but step aside to aid graft probe
AirAsia Group chief Tony Fernandes and chairman Kamarudin Meranun have voluntarily stepped aside from their executive roles, for two months, to allow an independent probe into bribery allegations which emerged during an in-depth investigation at Airbus. UK court documents detailing an indictment against Airbus, for allegedly failing to prevent bribery, ...
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NewsRyanair doubles down on Boeing 737 Max
Ryanair plans to purchase further Boeing 737 Max aircraft once the aircraft returns to service, in addition to taking delivery of the 210 it has already has on order or under option.
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NewsRyanair slows long-term growth target as Max delayed until after summer
European low-cost giant Ryanair has pushed back its long-term growth target of reaching the 200 million annual passenger mark by up to two years after resigning itself to not receiving its first Boeing 737 Max aircraft until after this summer.
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NewsTaiwan’s FAT loses operating licence, faces censure
Taiwan’s Ministry of Transportation and Communications (MOTC) has revoked the operating licence of now-shuttered Far Eastern Air Transport (FAT). FAT went belly up on 13 December, owing to “long-term operating losses” and difficulty in raising sufficient funds. The carrier made the abrupt announcement it was ceasing operations a day earlier, ...
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NewsChinese carriers cut capacity over global travel restrictions
Airlines in China have begun cancelling flights to a growing list of international destinations, in light of travel restrictions imposed following a novel coronavirus outbreak. As the number of confirmed cases in China and around the world continues to climb, countries like Singapore, Vietnam, the Philippines and the ...
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NewsAmerican pilots file lawsuit for immediate halt to China flights
American Airlines pilots, represented by the Allied Pilots Association (APA), have filed a lawsuit seeking an immediate halt to the carrier’s flights to mainland China. This came shortly after the World Health Organization (WHO) declared the coronavirus outbreak in China an international public health emergency on 30 January. The union ...
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NewsSIA Group slashes capacity to China over coronavirus outbreak
Singapore Airlines and SilkAir have cut a number of flights to China for February, as the outbreak of the novel coronavirus continues its unabated spread. The capacity cuts will affect SIA flights to Beijing, Shanghai Pudong and Guangzhou. SilkAir, meanwhile, will be reducing the number of flights to all four ...
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NewsAmerican reaches tentative agreement with unions
American Airlines says it has reached a tentative collective bargaining agreement with unions representing 31,000 employees, after an acrimonious year-long standoff led to the delay or cancellation of more than a thousand flights. The Fort-Worth-based carrier did not release details of the agreement and says it is still subject to ...
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NewsANA and Singapore Airlines ink joint venture agreement
Star Alliance carriers All Nippon Airways and Singapore Airlines have signed a joint venture agreement to deepen their existing partnership. The agreement, subject to regulatory approval, would allow both carriers to widen their partnership beyond Singapore and Japan, to “key markets” such as Australia, India, Indonesia and Malaysia. ...
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NewsIndiGo shareholders reject move to change stock sale rules
Shareholders at the parent of India’s biggest carrier IndiGo today voted against a proposal to ease rules around the sale and acquisition of shares, the latest development in a power struggle between its two founding shareholders.