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Old June 30th, 2004, 05:23 AM   #221
David-80
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Thats good marketing though for North American market. Anyway Ryan air boss said they will have share in one singapore budget airline, any idea which airlines is that?

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Old June 30th, 2004, 05:50 AM   #222
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^
That would be Tiger Airways.....a joint venture by SIA, Ryanair and Temasek Holdings.
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Old June 30th, 2004, 07:37 PM   #223
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I can't wait to move to London to take some cheap fares out of London! A lot of the stats for increase in passengers is due to mergers or acquisitions, such as for the Big 3 Chinese airlines (Air China, China Southern, China Eastern) and easyJet.
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Old June 30th, 2004, 08:17 PM   #224
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Chinese carriers are cheap alternatives to fly from Hong Kong. I can book an a package on a Chinese carrier with 3-star hotel to Shanghai for 4 nights at about HK$1999.

Actually, Asia has a lot of "budget carriers" already that offer full-service at bargain basement prices. For China-bound routes, use mainland carriers. For Thailand, go for Orient Thai, Kenya Airways, etc. For Taiwan and Malaysia, use China Airlines. For North America, fly Koreanair.

More info : http://www.skyscrapercity.com/showthread.php?t=112434

So whether the LCC success in Europe and North America can be replicated in Asia is yet to be seen.
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Old July 1st, 2004, 09:19 AM   #225
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No offense but sometimes many people unsafe to fly with China airlines because of their safety records, but its proven wrong for quite sometimes, i never heard any major accident in the last 5-6 years from CA.

hkskyline, Many people from taiwan visiting SE asia are usually go with FAT and Uni Air

Quote:
So whether the LCC success in Europe and North America can be replicated in Asia is yet to be seen.
I am sure AirAsia is can be considered as a success LCC rite?


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Old July 1st, 2004, 07:04 PM   #226
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Chinese carriers used to crash a lot back in the early 1990s, but they have been incident-free in the past few years. Regardless, they still charge more like budget carriers for their conventional service, at least from my knowledge of Hong Kong-bound routes.

Turning the attention away from Asia and to South America, where Brazilian LCC Gol has just launched an IPO in the US. While their fleet size is nowhere as big as Southwest, Ryanair, or Easyjet, their growth rate has been extraordinary :

Friday June 25, 5:11 AM
Gol Airline Shares Increase in IPO Debut

Shares of Brazil's low-cost Gol airline jumped 7 percent on Wall Street and rose 5 percent in Sao Paulo on Thursday after the country's newest and rapidly growing carrier sold a 20 percent stake to the public.

Gol Linhas Aereas Inteligentes SA raised about $280 million through the initial public offering, and most of the money will help finance part of an expansion that could eventually triple the company's fleet of Boeing 737s, chief executive Constantino de Oliveira said.

Gol had been hoping to raise between $245 million and $277 million, but got more because of heavy demand by investors before the IPO priced late Thursday night.

Shares of the airline rose from $17 to $18.22 on the New York Stock Exchange. On Sao Paulo's Bovespa exchange, Gol shares advanced from 26.57 reals ($8.57) to 28 reals ($9.03). Each American depositary share equals two Brazilian shares.

"The demand was high and that's being reflected in the rising share price," de Oliveira said in a teleconference from New York.

Brazil's other big carriers have struggled since Gol started flying in 2001, introducing Brazilians to online ticket sales and a no-frills experience modeled after JetBlue Airways Corp. and Southwest Airlines Co. in the United States and Europe's Ryanair.

The airline, which started flying with six new Boeing 737s, now has 22 jets and expects to take delivery of three more within months. It could add 43 more 737s by 2010, and de Oliveira said the company will decide by the end of this year whether to expand service to other Latin American countries.

Gol has managed to grow exponentially despite a turbulent Brazilian economy that nearly sent its competitors into collapse. Its planes now carry nearly a quarter of the 30 million Brazilians who fly each year across a country nearly as large as the continental United States.

With some fares only slightly higher than tickets for bus trips that can last for days, Gol _ controlled by a family that also owns one of Brazil's biggest bus companies _ draws frequent business travelers as well as blue-collar passengers who couldn't afford to fly before. Wealthy Brazilians heading to the beach sometimes use Gol to fly in their maids and nannies.

"Our goal is to try to make air travel accessible to Brazilians who have never flown," Oliveira said.
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Old July 2nd, 2004, 02:34 AM   #227
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Its about time, latin America needs more airlines, Argentina only have 1 airline i heard

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Old July 3rd, 2004, 03:20 AM   #228
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Quote:
Originally Posted by David-80



I am sure AirAsia is can be considered as a success LCC rite?


Yea.....the company started flying in early 2002 (estb since 12th Dec 2001 - under new ownership) with only 2 Boeing 737-300. Now it has 21 Boeing 737-300s! (17 planes under AirAsia Berhad, Malaysia & another 4 planes for Thai AirAsia Co., Ltd) ......and planning to add at least 80 more in the future

I would say it is quite a successful LCC
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Old July 3rd, 2004, 10:30 AM   #229
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Time is GMT + 8 hours
Posted: 03 July 2004 0235 hrs

Geneva airport ready for no-frills terminal for low-cost airlines

GENEVA : Geneva airport, the second-biggest in Switzerland, said it was ready to go ahead with plans to reopen its old charter terminal as a cheaper alternative for low-cost airlines such as EasyJet.

Geneva International Airport said in a statement it would also drop a planned increase in fees at its existing modern terminal one this year as well as other changes following protests from mainstream carriers.

The move depended on the support of the low-cost airlines that had shown and interest in the project, it added. Airport officials said they still had to sign contracts with Easyjet and Virgin Express.

The no-frills terminal two project, which would involve reduced ground services and comfort, had been opposed by Air France, KLM and Lufthansa.

EasyJet had also put Geneva's Cointrin airport, one of its European hubs, under pressure to reduce charges, hinting at one point that it might pull out altogether unless the low-cost terminal project went through.

The airport has been the centre of intense competition which has helped drive down fares and raise passenger numbers to record levels in recent years, mainly on Europan routes.

Airport officials have said that Easyjet helped to offset the impact of reduced services by troubled national airline Swiss, but also expanded the local market for overall air travel with benefits for other airlines.

Easyjet overtook the domestic carrier in 2003, accounting for 25 percent of air traffic in Geneva compared to 20 percent for Swiss. Last year also saw a record eight million passengers pass through Cointrin Airport.

The International Air Transport Association (IATA), which includes the major carriers but few of the budget airlines, welcomed the revised arrangement proposed by Geneva airport after talks.

"The decision of the Board of the Geneva International Airport not to proceed with plans to raise its passenger charge and to work with IATA to identify cost-reduction opportunities is an important step in the right direction," said IATA director general Giovanni Bisignani.

"We have made it crystal clear that IATA will not accept any situation that sees the cross-subsidization of a redeveloped terminal two with revenues from terminal one," Bisignani added.

- AFP

Copyright © 2004 Agence France Presse. All rights reserved.
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Old July 5th, 2004, 01:27 PM   #230
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Business Times - 06 Jul 2004

ValuAir to tap market for 'medical tours'
Budget carrier will offer such packages on its Bangkok and Jakarta routes

By VEN SREENIVASAN

HOW about flying to Bangkok for medical treatment, then hopping over to Pattaya for some rest and recuperation before returning to Singapore?

Singapore-based budget carrier ValuAir will soon be offering packaged 'medical tours' on its Singapore-Bangkok and Singapore-Jakarta routes.

ValuAir executive director Jimmy Lau said the carrier is testing the market for demand for such medical tours.

'There is a market, and we are seeing a steady increase in traffic of people flying to Bangkok for medical treatment,' he said.

Such programmes could conceivably cover simple procedures such as botox treatment and corrective eye surgery (or lasik) to more complex medical procedures requiring over a week's stay.

Mr Lau said ValuAir is also eyeing the growing number of inbound medical visitors from Indonesia.

'Lots of Indonesians fly into Singapore for medical treatment at our hospitals here,' he said. 'We want to grow this traffic further.'

Mr Lau did not reveal which hospitals ValuAir is working with, although the more popular hospitals frequented by Indonesian visitors include Mount Elizabeth, Raffles Hospital and Gleneagles.

Meanwhile, ValuAir has tied up with Singapore-based Meditour to organise its Bangkok medical trips. A medical tour to Bangkok can cost more than $3,000, depending on the kind of treatment sought.

'Let's say you go for a lasik programme in Bangkok, then decide to convalesce in Pattaya,' Mr Lau said. 'A seven day-six night trip would cost you about $600 in airfare, land transfers and accommodation. And the medical procedure will be around $3,800. But it is all packaged together, and we make all the arrangements.'

Its medical tour packages mark another step in ValuAir's efforts to differentiate itself from its rivals. Faced with increasing competition, the airline has been attempting to market its offerings with an eye on special events since taking off two months ago.

It started women-only shopping tours from Singapore to Hong Kong last month, and is now looking at starting all-women shopping tours inbound into Singapore from its current destinations of Bangkok, Hong Kong and Jakarta.

It is also working with event organisers on inbound and outbound concert packages to its four destinations.

'We are also targeting packages for sporting events in Singapore and at our destinations,' Mr Lau added.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

Last edited by babystan03; July 6th, 2004 at 11:06 AM.
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Old July 6th, 2004, 11:04 AM   #231
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Business Times - 06 Jul 2004

SilkAir to follow budget carriers' lead in cutting costs
More low-season discounts, online sales on the cards

SILKAIR, Singapore Airlines' regional unit, said it plans to follow the example of budget carriers in cutting distribution and other costs, as competition from low-cost rivals stiffens.

The airline, which serves mainly tourists travelling to Asian destinations, wants to sell more tickets online and offer increased discounts on low-season fares as it faces competition in the Singapore market from three new no-frills carriers, chief executive Mike Barclay said in an interview. SilkAir's cost-cutting target is $10 million a year, spokeswoman Corinth De Cotta said.

'It's an overall cost-cutting measure to improve their bottom line,' said Janelle Chuah, an analyst who recommends investors 'buy' Singapore Airlines' shares at UOB-Kay Hian Research. It's 'difficult' to boost sales when profit per seat is falling, 'so it's important to look at costs', she said.

SilkAir's new local rivals include Singapore-based Valuair, which already flies to Hong Kong and Bangkok, and a new carrier based on the island being set up with local partners by Qantas Airways, Australia's biggest carrier. Airlines are cutting costs with added urgency as higher oil prices, which reached a 14-year record in May, eat into their earnings.

'Next year will be a stronger competitive environment for us, so this year is about getting ourselves ready,' Mr Barclay said. 'We're looking a lot at how we're selling and how we manage costs, and trying to learn from the new entrants in the market, or in the industry.'

Singapore Airlines shares closed flat at $10.90.

Full-service airlines spend too much on distributing tickets and selling through agents, unlike budget carriers which prioritise Internet sales, Mr Barclay said. He ruled out reducing SilkAir's travel agent network.

'We're still very reliant on agents, but we have to look at how we can better use the latest technology, like electronic ticketing, and at beefing up our Internet sales,' he said.

Internet ticket sales make up from 15 to 20 per cent of SilkAir's Singapore business. The figure is lower in other markets such as Indonesia, India and Thailand, where customers have less access to technology, Mr Barclay said.

Mr Barclay, who was appointed as chief executive in January, said SilkAir's decision to offer more heavily discounted tickets during low seasons this year was overdue.

'I felt at SilkAir we'd not been responsive enough in this area before, so where we have a low season period there's an opportunity to increase our loads, let's take advantage of that and have some decent pricing in the market,' he said.

Increased discounting combined with distribution-cost cuts is 'a manageable way of offering value for money without impacting too heavily on your overall yields,' he said.

SilkAir expects the toughest competition from budget carriers on routes less than two hours from Singapore, Mr Barclay said. Even so, market access for the new carriers will be limited by air agreements between Singapore and other countries.

Most of SilkAir's business comes from carrying Singapore Airlines' long-haul passengers on to their final destinations, Mr Barclay said. He said he expects to retain most of these passengers even as competition intensifies.

Mr Barclay said SilkAir is reviewing its routes to minimise fuel consumption, and reduce the effect of higher oil prices.

Oil prices have surged because of rising demand, concerns about terrorism and reduced production by refiners. Jet fuel reached US$48.65 a barrel on May 17, the highest level since November 1990 after Iraq's invasion of Kuwait. Prices have since stabilised, and closed at US$45.80 a barrel on Friday, according to oil-pricing service Platts.

If crude oil prices stay at about US$36 a barrel on average, the airline industry may lose as much as US$3 billion on international routes this year, the International Air Transport Association has said. The industry will break even if the average falls to US$33 a barrel, said the association, which represents more than 270 airlines worldwide.

Fuel is the biggest cost for SilkAir's parent, Singapore Airlines, making up about 20 per cent of total expenditure. A US$5 passenger surcharge SilkAir introduced in June is expected to cover less than half of the carrier's additional fuel costs, Mr Barclay said.

China's slowing economy will only lead to a short-term drop in crude oil prices, said Alan Mudie, chief investment officer at BNP Paribas Private Bank.

'We don't see it going back into the US$20s. Low US$30s is about as low as it will go,' Mr Mudie said. 'Over the three to five-year cycle it will trade above its recent highs, given the levels of demand for oil.'

Singapore Airlines is planning to set up its own, 49 per cent-owned budget airline, called Tiger Airways, with partners including the investment arm of the Ryan family, which started Europe's largest low-cost carrier Ryanair. Tiger Air plans to start flying in the second half of this year, achieving profitability in its first year.

SilkAir is going for a different market from Tiger Air, UOB-Kay Hian's Ms Chuah said.

'The routes that SilkAir operates are quite different and they have a niche market,' she said. 'They go to places where traffic volume isn't as high, while the budget carriers often target routes where there's high traffic, like Hong Kong and Bangkok.'

SilkAir will face its toughest competition on more heavily travelled routes including Phuket, said Chris Sanda, an analyst with DBS Vickers Securities.

'For SilkAir, every dollar counts. They're going to be under some serious pricing pressure,' he said. 'Budget airlines can't really compete on the (more) out of the way places, but they can definitely kick SilkAir on the heavier routes.' - Bloomberg

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.
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Old July 6th, 2004, 11:50 AM   #232
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off topic, I suggest not to visit gleneagles, my dad passed away there because of wrong diagnostic by the medical team!


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Old July 9th, 2004, 03:57 AM   #233
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Ryanair and EasyJet have both released amazing figures for June 2004. Ryanair's passenger growth has been 24% since June 2003 and EasyJet's an even more impressive 28%!! Ryanair's load factor (ie percentage bums on seats) has risen to an incredible 87% (up from 79% June last year) and EasyJet's has held steady at an equally impressive 86%. Ryanair boast of having carried more passengers than BA in UK/Europe for the 6th month running and of better punctuality and fewer baggage losses than any other airline in Europe.

Rolling 12 month passenger totals to June 2004:
EasyJet = 22,877,710
Ryanair = 24,586,768

Percentage increase in passengers since June 2003:
EasyJet = 28%
Ryanair = 24%

Load factor (ie percentage bums on seats) in June 2004:
EasyJet = 86%
Ryanair = 87%
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Old July 9th, 2004, 08:27 PM   #234
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Friday July 9, 6:06 PM

Singapore sees better H2 ahead after qtly profit eases

By Katherine Espina

SINGAPORE, July 9 (Reuters) - Southeast Asia's largest defence group, ST Engineering Ltd. , said on Friday quarterly profit fell 6 percent, in line with with market expectations and hit by soft sales at its weapons design unit.

STE, 54-percent owned by state-owned ST Technologies Pte Ltd, said net profit in the April to June quarter fell to S$85.1 million (US$50.1 million) from S$90.7 million a year earlier. Revenues fell 5 percent to S$702.2 million.

The results broadly met the expectations of four analysts polled by Reuters who had forecast on average a S$85.5 million net profit for the quarter.

STE, which generates about half its profits from Singapore's military, said it expected a better second-half performance but was concerned about rising interest rates and fuel prices.

"The aerospace market, particularly in the U.S., continues to be uncertain with increasing concerns over higher fuel prices and rising interest rates," chief executive Tan Pheng Hock said in a results statement.

Third quarter pre-tax profit would be higher than the second quarter, he added.

STE, which designs and builds military vehicles and weapons for sale both at home and abroad, said defence sales contributed 49 percent or S$344 million of total sales in the second quarter.

The company's total order book stood at S$4.7 billion at end June, while cash and cash equivalents totalled S$1.8 billion.

Analysts expect the company to reverse two straight years of declining profits and post stronger profits in 2004 from last year.

Full-year net profit is expected to rise about 9 percent to S$355.3 million and accelerate to S$391.2 million in 2005, according to 16 analysts polled by Reuters Estimates.

Analysts said STE could benefit from the emergence of budget carriers in Asia as well as the rising trend of airlines farming out maintenance work. Its aerospace unit's customers include low-cost carriers Valuair Ltd. and AirAsia. It is also vying for maintenance contracts with UK-based Easyjet Plc. .

It stock price has risen nearly 3 percent this year, underperforming a 5.4 percent rise in the Straits Times index in the same period.It ended down 1.4 percent at S$2.07 on Friday. ($1=1.707 Singapore dollars)
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Old July 10th, 2004, 04:33 AM   #235
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Quote:
Originally Posted by David-80
off topic, I suggest not to visit gleneagles, my dad passed away there because of wrong diagnostic by the medical team!


cheers
sorry to hear that! Its an expensive hospital and we have a certain forumer here who always proclaims that he was born there....
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Old July 10th, 2004, 05:20 AM   #236
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Quote:
Originally Posted by RafflesCity
we have a certain forumer here who always proclaims that he was born there....
Sounds familiar.......
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Old July 10th, 2004, 09:22 AM   #237
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Business Times - 10 Jul 2004

Ryanair's latest cost-saving idea - no luggage

(LONDON) Having squeezed out just about every cost saving from Internet-only booking, underused airports and easy-to-clean seats, Irish budget airline Ryanair unveiled its latest idea yesterday to keep prices low - banning luggage.

Well, not all luggage. But passengers using the carrier could find themselves turned away if they arrive at the airport carrying a heavy backpack. Ryanair yesterday said it was pondering a plan to end the practice of putting large luggage in the holds of its planes, meaning passengers could take only whatever small bags they can bring onto the plane.

Ryanair CEO Michael O'Leary, facing stock market pressure following disappointing results, admitted that other cost-saving measures might have been taken as far as they could. 'Now we must be cleverer,' he told the Financial Times. 'The objective is to get rid of hold baggage altogether.' He said that this could save Ryanair 5 (S$15.8) per person.

A spokesman for Ryanair confirmed that the plan was being considered. - AFP

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.
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Old July 10th, 2004, 02:37 PM   #238
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EasyJet will not ban hand luggage but have instead decided to introduce automatic check-in machines to save costs. However they do seem to be pushing for more hand luggage (ie less hold luggage) to cut down on airport costs. They have just unveiled a new very generous hand baggage allowance:
http://www.easyjet.com/en/book/handbaggage.html


Introducing Europe's best hand baggage allowance!

easyJet today announces another pioneering development by introducing Europe's most generous hand baggage allowance. It will be better than that offered by any other airline in Europe - even the Club Class allowances of the dinosaur national airlines!

From Monday 12 July 2004 easyJet is removing the weight restriction on hand baggage for all passengers. The only stipulation is that you must be able to lift your bag safely into the overhead lockers yourself without assistance (or giving yourself a hernia!), so the weight must be within reason.

In order to comply with safety regulations of the UK Civil Aviation Authority, and to reflect the limited space in the overhead storage bins, there will be a size limit, which means that your bag must not be bigger than 55x40x20 cm - but this is 40% bigger than the current allowance! Our fantastic new hand baggage rules will give passengers the freedom to carry more than they can on the Club Class of traditional airlines - but without the extortionate fares!

This new allowance will be particularly attractive to easyJet's many business passengers who already fly with Europe's number one low-cost airline, benefiting from conveniently located city airports (not airstrips miles away), 30 minute check-in times, high-frequency routes, great punctuality, and some of Europe's lowest fares!
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Old July 10th, 2004, 05:23 PM   #239
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Do these airlines cater exclusively to passenger traffic and not cargo? If cargo transport is wiped out of the picture, then there should be much more room in the plane's belly to give a nice baggage allowance.
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Old July 10th, 2004, 05:56 PM   #240
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Quote:
Originally Posted by RafflesCity
sorry to hear that! Its an expensive hospital and we have a certain forumer here who always proclaims that he was born there....
You know what? That might explain everything about his form of existance!
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