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CAPA - Centre for Aviation
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First in global aviation intelligence
First in global aviation intelligence

66 followers
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Further meaningful consolidation in Europe is likely to be difficult as long as restrictions remain on market access and ownership and control. For now, the priority for Europe's airlines must remain cost control, in particular labour restructuring.
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Gulf airlines under fire from the US, but why is their relatively limited impact attracting so much focus?
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#VirginAustralia results for the six months to 31-Dec-2014 suggest stability is returning to Australia's small but always dynamic air transport sector: the main airlines are making acceptable returns on their domestic networks while international is under-performing. In Virgin's case, its AUD103.8 million (USD81.3 million) domestic EBIT profit was cut in half by international's AUD49.5 million (USD38.7 million) loss. For the first time in many years, Qantas' international network is profitable while Virgin's is not.
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There's no room to stand still in the airline business. #Qantas CEO Alan Joyce's often controversial measures during a turbulent four years are being vindicated. His aggressive transformation of Qantas appears now to be showing remarkable dividends, with the prospect of going from a billion dollar loss in 2014 to a billion dollar profit just a year on. Next on the agenda will be growth.
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Garuda Indonesia budget subsidiary Citilink has further delayed the launch of scheduled international services as it focuses on its goal of achieving its first annual profit in 2015. Citilink will instead pursue less risky domestic expansion in 2015 and has begun operating seasonal international charters during periods of weak domestic demand. #Citilink #GarudaIndonesia  
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#AirNewZealand remains one of the world's few investment-rated airlines (Baa3), and the only rated airline outside North America and Europe. Its latest results reinforced that position. Air NZ is building on that strength with a 20% increase in pre-tax profits in the first half of its fiscal year, the six months to 30-Dec-2014. That result was driven by increased revenue performance, notably a 1.9% yield gain and 1.2% increase in traffic.
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#VirginAmerica joined most US airlines in recording solid financial results for 4Q2014 and CY2014 – marking the first time it has reported its performance as a publicly traded company after completing an initial public offering in late 2014.
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For the first time in many years, timing is on the side of the air cargo industry. The sector has grappled with a bad combination of weak consumer sentiment translating to lower demand, high fuel prices impacting the many inefficient cargo aircraft operated, and growing competition adding to over capacity. But now US ports are congested and Japanese manufacturers need to transport goods to the US urgently, leaving the slack to air freight just as fuel is at low prices and the start of the year is a slow season.
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