AIRLINES – AUSTRALIA

Virgin tips positive cash flow as Velocity slows

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Original article by Michael Smith
The Australian Financial Review – Page: 14 : 4-Jul-17

Virgin Australia released an update on its trading performance on 3 July 2017, two days prior to the launch of its new service to Hong Kong. Virgin Australia, which reported a net loss of $A69 million for the third quarter in May 2017, advised on 3 July that it will be "cash flow positive" for the full financial year. However, its forecast for EBIT growth of between two and three per cent for its Velocity frequent flyer program was down on previous forecasts.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, VELOCITY FREQUENT FLYER PTY LTD, QANTAS AIRWAYS LIMITED – ASX QAN

Will Netflix, Spotify and Foxtel take off on Qantas?

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 6-Mar-17

A Roy Morgan Single Source survey has found that of the 22% of Australians aged 14+ who take at least one domestic flight with Qantas during the year, 87% own a smartphone and 76% own a tablet computer – both above the national ownership rates of 80% and 65% respectively. However, while these millions of passengers will likely be carrying a compatible device on board, only 60% currently use any of Qantas’s three new in-flight entertainment providers: Foxtel, Netflix and Spotify. Some 33% of Qantas domestic flyers watched Foxtel in the last four weeks, including its streaming options Go and Play, while 32% watched Netflix and 22% listened to Spotify.

CORPORATES
ROY MORGAN RESEARCH LIMITED, QANTAS AIRWAYS LIMITED – ASX QAN, FOXTEL MANAGEMENT PTY LTD, NETFLIX INCORPORATED, SPOTIFY LIMITED

Qantas’ Red Planet, APEX sign data deal

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Original article by Max Mason
The Australian Financial Review – Page: 29 : 12-Dec-16

Qantas-owned market research, segmentation and analysis firm Red Planet has secured an alliance with the Australian Premium Exchange (APEX). The latter, which is backed by Fairfax Media and Nine Entertainment Company, will gain access to data on Qantas Frequent Flyer members. This is aimed at improving the targeting of advertising to people who view the media groups’ content on mobile devices.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, RED PLANET, AUSTRALIAN PREMIUM EXCHANGE, QANTAS FREQUENT FLYER LIMITED, FAIRFAX MEDIA LIMITED – ASX FXJ, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FACEBOOK INCORPORATED, GOOGLE INCORPORATED, DATA REPUBLIC

Foreign cap on Qantas needs axing: Joyce

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Original article by Mitchell Bingemann
The Australian – Page: 29 : 16-Sep-16

Qantas CEO Alan Joyce says the airline is being disadvantaged by ownership restrictions because they prevent it from participating in global consolidation in the sector. He has called on the Federal Government to make changes to the Qantas Sale Act. Peter Harbison, the executive chairman of CAPA-Centre for Aviation, says restrictions on foreign ownership amount to protectionism.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, CAPA – CENTRE FOR AVIATION

Qantas breaks dividend drought with record profit

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Original article by Michael Smith
The Australian Financial Review – Page: 15 & 22 : 25-Aug-16

Qantas has reported a 2015-16 net profit of $A1.029bn, compared with $A557m for the previous financial year. The airline’s pre-tax underlying profit rose from $A975m to a record $A1.53bn. Shareholders will receive a final dividend of $A0.07 per share, which is the carrier’s first payout since 2009, while Qantas will repurchase up to $A366m worth of its shares. Meanwhile, employees will receive a cash bonus ranging from $A2,500 to $A3,000.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, JETSTAR AIRLINES PTY LTD, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, CITIGROUP PTY LTD

Virgin’s $1b rescue plan

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Original article by Michael Smith, James Thomson
The Australian Financial Review – Page: 1 & 10 : 16-Jun-16

Virgin Australia Holdings will seek to reduce costs by $A300m a year via a restructuring program, which will include phasing out some smaller planes and job cuts at management level. Virgin will also raise $A852m from shareholders via a rights issue at $A0.21 per share, compared with the stock’s closing price of $A0.26 on 15 June 2016. China-based HNA Group recently invested $A159m in Virgin, which aims to commence flights to China and Hong Kong.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, HNA GROUP, SINGAPORE AIRLINES LIMITED, VIRGIN GROUP LIMITED, NANSHAN GROUP, ETIHAD AIRWAYS, TRANSPORT WORKERS’ UNION, AIR NEW ZEALAND LIMITED – ASX AIZ, CITIGROUP PTY LTD

Chinese in race for 20pc of Virgin

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Original article by Andrew White
The Australian – Page: 19 & 28 : 1-Jun-16

Chinese airline operator HNA Group will pay $A159m for a 13 per cent stake in Virgin Australia Holdings. The placement was priced at $A0.30 per share, and Virgin CEO John Borghetti says the Chinese group is likely to lift its stake to 19.9 per cent. The stakes of Virgin’s major shareholders – Air New Zealand, Singapore Airlines, Etihad and Virgin Group – will be diluted as a result of the placement. HNA’s businesses include Hainan Airlines and Hong Kong Airlines.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, HNA GROUP, AIR NEW ZEALAND LIMITED – ASX AIZ, SINGAPORE AIRLINES LIMITED, ETIHAD AIRWAYS, HAINAN AIRLINES COMPANY LIMITED, HONG KONG AIRLINES LIMITED, WEST ASIA AIRLINES LIMITED, QANTAS AIRWAYS LIMITED – ASX QAN, MACQUARIE WEALTH MANAGEMENT

Virgin-Air NZ divorce could trigger bid

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Original article by Michael Smith
The Australian Financial Review – Page: 1 & 8 : 31-Mar-16

Air New Zealand has indicated that it may divest its 25.9 per cent stake in Virgin Australia Holdings to provide capital for its own growth strategy. Ailevon Pacific Aviation Consulting’s Oliver Lamb says there has been speculation in the aviation industry as to which of Virgin’s three largest shareholders would sell out first. Virgin shares closed at $A0.34 on 30 March 2016, valuing Air NZ’s stake at about $A310m. Virgin could potentially become a takeover target if Air NZ sells its stake.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, AIR NEW ZEALAND LIMITED – ASX AIZ, AILEVON PACIFIC AVIATION CONSULTING, SINGAPORE AIRLINES LIMITED, ETIHAD AIRWAYS, VIRGIN GROUP LIMITED, QANTAS AIRWAYS LIMITED – ASX QAN, DEUTSCHE BANK AG, ANSETT AUSTRALIA HOLDINGS LIMITED, VIRGIN AMERICA INCORPORATED

Flying cross: most of each airline’s website visitors also check out one (or more) of their competitors

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 8-Mar-16

A Roy Morgan Single Source survey has found that 4.23 million Australians aged 14+ (22 per cent) visited one or more airline’s websites in an average four weeks during the year to December 2015. Some 2.73 million visit the Qantas website in an average four-week period, ahead of Jetstar (1.93m), Virgin Australia (1.87m) and Tiger (572,000). Visitors to the Qantas website are the most loyal: 45 per cent do not visit any other airline’s website, while 28 per cent will check out one other airline’s website and eight per cent visit all four. In contrast, just 19 per cent of visitors to the Tiger website do not visit any other airline’s website, while 38 per cent also check out every single one of its domestic competitors.

CORPORATES
ROY MORGAN RESEARCH CENTRE PTY LTD, QANTAS AIRWAYS LIMITED – ASX QAN, JETSTAR AIRLINES PTY LTD, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, TIGER AIRWAYS AUSTRALIA PTY LTD

Virgin signs partner deal with Alliance

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Original article by Jamie Freed
The Australian Financial Review – Page: 30 : 16-Feb-16

Australian-listed Alliance Aviation Services has posted a 2015-16 interim net profit of $A4.1m, which is 35 per cent lower than previously. The group, which specialises in the provision of charter flights for the "fly-in, fly-out" market, has been hit by the decline of the resources boom. Meanwhile, Alliance has secured a partnership agreement with Virgin Australia Holdings which will allow both groups to expand their charter operations.

CORPORATES
ALLIANCE AVIATION SERVICES LIMITED – ASX AQZ, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, QANTASLINK, COBHAM AVIATION SERVICES, AIRNORTH, SKYWEST AIRLINES LIMITED, VIRGIN AUSTRALIA REGIONAL AIRLINES PTY LTD, QANTAS AIRWAYS LIMITED – ASX QAN, DEUTSCHE LUFTHANSA AG, AUSTRALIA. BUREAU OF TRANSPORT AND REGIONAL ECONOMICS