Tag Archives: #airbus

Norwegian Air Plans Expansion In US Market

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Budget airline Norwegian Air Shuttle plans to set up bases in New York and Fort Lauderdale next year and will significantly increase services between the Nordics and the US as it receives more Boeing 787 Dreamliners.

Norwegian, the first budget airline in recent years to offer transatlantic services, will fly to Los Angeles, San Francisco and Orlando in addition to its routes to Fort Lauderdale and New York, chief executive Bjoern Kjos told a news conference on Tuesday.

Norwegian placed Europe’s biggest aircraft order last year, 222 planes from Boeing and Airbus. It has been one of Europe’s most successful carriers, taking market share from SAS and also moving outside its traditional Nordic market with bases in London and Spain.

It is also one of the most successful stocks on the Oslo bourse with its shares up 105 percent over the past 12 months.

Still, many analysts consider the stock undervalued as it is trading at 7.8 times its expected 2014 earnings, well below an average of around 10 for European peers.

Norwegian launched long-haul services earlier this year when it received the first of eight 787s, and it has recorded a 96 percent load factor on those flights.

The firm says it can operate long-haul flights 30 percent cheaper than traditional airlines, primarily because of the 787′s lower operating cost.

AirAsia X Launches USD$370 Million IPO

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Malaysian long-haul budget carrier AirAsia X launched an initial public offering on Monday with a value of up to USD$370 million, seeking funds for its fleet expansion as it targets buoyant travel demand in Asia-Pacific and looks to fend off regional rivals.

The carrier, which competes with Singapore Airlines’ Scoot and Qantas Airways’ Jetstar, has said it plans to add 13 Airbus A330 wide-bodied planes this year and next to take its fleet to 23 aircraft by 2014.

The expansion comes as passenger traffic in the Asia-Pacific region more than doubled between 1998 and 2012, putting air travel activity in the region on par with North America, according to figures from research firm Strategic Airport Planning, which were cited in AirAsia X’s preliminary IPO prospectus.

“The focus in on the sweet-spot flights of 4 to 8, or possibly 9 hours,” Tony Fernandes, AirAsia X’s founder, told reporters at the IPO launch. He added that AirAsia X plans to strengthen its position in its key markets in Australia and East Asia.

The company plans to use 33.3 percent of the proceeds to repay bank loans, with another 32.6 percent set for capital expenditure and 29.7 percent as general working capital.

AirAsia X’s chief executive, Azran Osman Rani, said the carrier’s expansion would come through more flights on existing routes as well as from new routes within some countries where it already operates.

The deal is scheduled to be priced on June 24, with the stock market debut set for July 10.

(Reuters)

AirAsia profit soars, bullish on outlook

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AIRASIA, Asia’s largest low-cost carrier by fleet size, says its fourth-quarter profit has jumped 168 per cent year-on-year amid increased passengers.
AirAsia said in a statement that net profit for the quarter ending December 31 stood at 350.65 million ringgit ($A111.42 million), up from 130.68 million ringgit in the same quarter the previous year thanks to “a seasonally strong quarter”.
Revenue for the quarter was a record 1.41 billion ringgit, up 10 per cent, as more people flew the airline, which increased its aircraft in Malaysia to more than 60.
“It has been another good quarter and overall a great year for AirAsia as we continue to defy the industry in terms of operational and financial performance,” said Malaysia AirAsia chief executive officer Aireen Omar.
For the full financial year, AirAsia recorded a 238 per cent jump in net profit to 1.88 billion ringgit despite a 1.0 per cent rise in the average fuel price this year.
Its 2012 revenue increased by 11 per cent to 5.0 billion ringgit.
Group chief executive officer Tony Fernandes was bullish about the year ahead as AirAsia expands its model – no frills and keeping operational costs low.
“The aviation landscape is constantly changing with high fuel prices and new competition, but through all these challenges AirAsia will continue to defend our leadership titles,” he said.
AirAsia has grown rapidly since Fernandes, a former record industry executive, bought the failing airline in 2001. It initially had only two aircraft in operation.
The group now has a total fleet of 120 A320s and has set up subsidiary budget carriers in Indonesia, the Philippines, Thailand and Japan.
The airline, one of the biggest customers for European aircraft maker Airbus, is expecting 360 more aircraft to be delivered by 2026.
Last week it announced a new airline joint venture with India’s Tata conglomerate.
www.theaustralian.com.au