Aerospace Diary

Posted by- Neelam Mathews Jan 19, 2012 The recent decision of AirAsia X  to stop  flying to Mumbai and London raised many eyebrows about the sustainability of long haul low cost services. Though the immediate concerns  point  towards high jet fuel prices, immigration concerns as well as  high  airport  taxes  have  also impacted the overall grand strategy to increase  yields,  rationalization and allocation of aircraft fleet to more profitable routes, says consultancy Frost & Sullivan. “These routes (Delhi and Mumbai and Paris and London) were  bleeding  on  a  low cost model and with the MAS-AirAsia collaboration, cutting off duplicate capacities makes sense,” says Amartya De, Frost & Sullivan Senior Consultant for Aerospace & Defense. “Part of the  network rationalisation process is also to bring passengers from European destinations on MAS up to Kuala Lumpur and then giving the...

Posted by- Neelam Mathews July 21, 2011 The views posted here are not that of Aerospace Diary. Frost & Sullivan's Diogenis Papiomytis comments on American Airlines recent aircraft order "There were two related announcements made yesterday by American Airlines. The first one was the biggest order for narrowbody aircraft ever made by a single carrier, with 460 orders split equally between the A320 and B737. This announcement cheered up the investor community, with both Airbus and Boeing share prices registering marginal increases. The second was AMR's results for Q2 2011, which were disappointing to say the least. Clearly the two news stories are the two sides of the same coin; American Airlines is in need of restructuring, as it holds some of the industry's worst first places: -       The only US major that posted losses last year ($470M) -       The only US major expected to post a loss this year, after a disappointing Q2 with losses of $286M ...