More LCC subsidiaries to come

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Centre for Asia Pacific Aviation notes that All Nippon Airways reportedly plans to establish up to two LCC subsidiaries next year to grow and defend international and domestic markets. “This provides even more evidence that the LCC movement in this region is increasingly being fostered by full service carriers. The subsidiaries – in many cases intended to help carriers defend market shares – are increasingly viewed as effective market segmentation/branding tools, and cost reduction/restructuring vehicles,” stated Peter Harbison, Executive Chairman of the Centre for Asia Pacific Aviation. …

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Economics the issue – not fuel?

Centre for Asia Pacific Aviation reports that the airline industry’s general exasperation about the impact of high fuel prices on profitability is increasingly unsupported by figures from its own peak industry body. Forecast average fuel prices for the year have steadily risen by 28% since the Dec-05 IATA forecast for a USD4.3 billion industry loss for 2006. But that loss has since been cut by more than half, to USD1.7 billion, according to IATA’s latest estimate. According to the Center’s Executive Chairman, Peter Harbison, “the improved outlook …

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London bomb scare – Short term cancellations, but overall demand likely to be resilient

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The Centre for Asia Pacific Aviation (CAPA) predicts the shock waves through the media will undoubtedly result in a temporarily reduction in flight bookings and some cancellations maybe a few percent at most. The Centre observes however that passengers today are very resilient and less ready to over-react to what, at this stage, appears to be a particularly UK-US issue. (The positive is that it appears that intelligence was sufficiently good that it stopped the threat. Nonetheless there will be a considerable consumer backlash, particularly in the …

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