I49 Air and Space Transport

Joyce still positive about Jetstar’s growth potential in Asia despite low returns

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Original article by Jamie Freed
The Australian Financial Review – Page: 27 : 9-Jun-15

Qantas CEO Alan Joyce has conceded that the Asian division of its Jetstar subsidiary will not return its cost of capital in 2014-15. However, he is upbeat about the outlook for the aviation market in Asia, arguing that the amount of capital Qantas is investing in the region is minor compared with the potential returns in the long-term. Qantas is tipped to post an underlying pre-tax profit of around $A1bn for 2014-15.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, JETSTAR AIRLINES PTY LTD, JETSTAR JAPAN, JETSTAR HONG KONG AIRWAYS LIMITED, JETSTAR ASIA, JETSTAR PACIFIC, CHINA EASTERN AIRLINES CORPORATION LIMITED, SHUN TAK HOLDINGS LIMITED, INTERNATIONAL AIR TRANSPORT ASSOCIATION, HONG KONG INTERNATIONAL AIRPORT

China lobbies ACCC on Qantas alliance

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Original article by Matt O’Sullivan
The Australian Financial Review – Page: 12 : 2-Jun-15

The Australian Competition & Consumer Commission (ACCC) opposes an alliance between Qantas and China Eastern Airline on competition grounds. However, Chinese ambassador Ma Zhaoxu has asked ACCC chairman Rod Sims to take into account the relationship between the two nations when deciding whether to block the alliance. He argues that the deal will have no impact on competition. The ACCC is concerned that the two carriers would dominate the Sydney-Shanghai route.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, CHINA EASTERN AIRLINES CORPORATION LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, TOURISM AUSTRALIA PTY LTD, CATHAY PACIFIC AIRWAYS LIMITED, SINGAPORE AIRLINES LIMITED, JETSTAR HONG KONG AIRWAYS LIMITED, AUSTRALIA. DEPT OF INFRASTRUCTURE AND REGIONAL DEVELOPMENT, AUSTRALIAN AND INTERNATIONAL PILOTS ASSOCIATION, TTF AUSTRALIA LIMITED TOURISM AND TRANSPORT FORUM, TTF AUSTRALIA LIMITED, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, ETIHAD AIRWAYS

Qantas slow to reduce ‘galling’ fuel surcharges

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Original article by Matt O’Sullivan
The Australian Financial Review – Page: 27 : 20-May-15

FuelTrac’s Geoff Trotter has called upon Qantas to reduce its fuel surcharge on international flights. He notes that the carrier expects significant savings on its fuel costs in 2014-15 due to the downturn in the crude oil price. Qantas has yet to take action on the issue, despite flagging a review of its surcharges in January 2015. A spokeswoman says the airline is still in the process of revising its fares.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, FUELTRAC PTY LTD, EMIRATES AIRLINES, SINGAPORE AIRLINES LIMITED, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

‘No reason to deny’ Qantas-China Eastern deal

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Original article by Matt O’Sullivan
The Australian Financial Review – Page: 18 : 14-Apr-15

The Australian Competition & Consumer Commission (ACCC) opposes an alliance between Qantas and China Eastern Airlines. However, the Department of Infrastructure & Regional Development’s submission on the regulator’s draft decision argues that the alliance will benefit travellers and the Australian economy. It takes the view that the ACCC has focused too much on the alliance’s impact on competition on the Sydney-Shanghai route

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, CHINA EASTERN AIRLINES CORPORATION LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. DEPT OF INFRASTRUCTURE AND REGIONAL DEVELOPMENT, CATHAY PACIFIC AIRWAYS LIMITED, SINGAPORE AIRLINES LIMITED, MALAYSIAN AIRLINE SYSTEMS, UNIVERSITY OF TECHNOLOGY, SYDNEY. AUSTRALIA-CHINA RELATIONS INSTITUTE, AIR CHINA

Allegro buys The Ghan and Indian Pacific trains

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Original article by Simon Evans
The Australian Financial Review – Page: 20 : 31-Mar-15

Allegro Funds has paid an undisclosed price for Great Southern Rail, which operates iconic Australian train services The Ghan and The Indian Pacific. The vendor was Serco, which has owned Great Southern Rail since 1999. International tourists account for around 25 per cent of passengers on the two trains, and Allegro MD Adrian Loader anticipates continued strong growth in demand for upmarket rail travel

CORPORATES
ALLEGRO FUNDS PTY LTD, GREAT SOUTHERN RAIL, SERCO GROUP PLC, LONDON STOCK EXCHANGE, CUSTOM COACHES

ACCC frowns at China Eastern tie

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Original article by Jamie Freed
The Australian Financial Review – Page: 19 : 25-Mar-15

The Australian Competition & Consumer Commission (ACCC) is concerned about a proposed alliance between Qantas and China Eastern Airlines. The ACCC has opposed the alliance in its draft ruling, arguing that the two carriers would dominate the Sydney-Shanghai route. ACCC chairman Rod Sims says he would be more willing to support an alliance between Qantas and carriers such as China Southern or Air China, as Qantas does not currently have flights to their main hubs

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, CHINA EASTERN AIRLINES CORPORATION LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AIR CHINA, CHINA SOUTHERN AIRLINES COMPANY LIMITED, CATHAY PACIFIC AIRWAYS LIMITED

Virgin, Delta keep Pacific capacity

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Original article by Jamie Freed
The Australian Financial Review – Page: 25 : 19-Mar-15

Virgin Australia and Delta Air Lines will seek regulatory approval to extend their alliance for another 10 years. However, the carriers have ruled out increasing their capacity on the Australia-US route. Delta president Edward Bastian has also indicated that the US carrier does not intend to introduce flights between Melbourne and Los Angeles. Qantas increased its capacity on several routes between Australia and the US in 2014

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, DELTA AIR LINES, QANTAS AIRWAYS LIMITED – ASX QAN, AMERICAN CHAMBER OF COMMERCE IN AUSTRALIA

AirAsia has high hopes

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Original article by Jamie Freed
The Australian Financial Review – Page: 15 : 13-Mar-15

AirAsia X is expanding its Australian operations. The airline’s founder Tony Fernandes said on 12 March 2015 that the carrier’s Australian business will be in a better financial position within six months. The airline lost $A128 million before tax in 2014. Fernandes said more flight frequencies will be added to Australia in 2015

CORPORATES
AIRASIA X SDN BHD, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, GARUDA INDONESIA, AIR NEW ZEALAND LIMITED – ASX AIZ, QANTAS AIRWAYS LIMITED – ASX QAN, JETSTAR AIRLINES PTY LTD, LAN CHILE AIRLINES, CHINA AIRLINES, MALAYSIAN AIRLINE SYSTEMS

Cathay Pacific adds more Sydney-Hong Kong seats

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Original article by Jamie Freed
The Australian Financial Review – Page: 21 : 11-Mar-15

Cathay Pacific mainly uses the Airbus A330 to service the Sydney-to-Hong Kong route, but it will increase capacity by switching to larger Boeing aircraft for two of the daily flights from October 2015. The Hong Kong-based carrier cannot add additional flights on Australian routes at present. Cathay’s Nelson Chin notes that the recent fall in the value of the Australian dollar has had little impact on the travel intentions of Australian consumers

CORPORATES
CATHAY PACIFIC AIRWAYS LIMITED, AIRBUS SAS, BOEING COMPANY

Virgin predicts lag before revival

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Original article by Matt O’Sullivan
The Australian Financial Review – Page: 15 : 6-Mar-15

Virgin Australia Holdings CEO John Borghetti says it will take some time for a lower Australian dollar to stimulate growth in the number of foreign tourists. The full impact is most likely to be experienced in the second half of 2015. The airline is expanding its regional routes. From 25 May 2015, Virgin will offer six flights a week between Sydney and Tamworth

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, SKYWEST AIRLINES LIMITED, QANTASLINK, QANTAS AIRWAYS LIMITED – ASX QAN, ALLIANCE AVIATION SERVICES LIMITED – ASX AQZ, SKYTRANS AIRLINES, BRINDABELLA AIRLINES, VINCENT AVIATION (AUSTRALIA) PTY LTD