DOCSLIB.ORG

Tiger Airways Holdings Limited

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Tiger Airways Holdings Limited tiger airways holdings limited 2q fy12-13 and 1h fy12-13 results quarter ended 30 september 2012 30 october 2012 Results Snapshot Revenue for the quarter grew 79%, driven by increased capacity, stronger yield, and higher load factor 2Q net loss narrowed to $18m on the back of higher revenue SGD‘m 2Q13 2Q12 Y-o-Y chg 1H13 1H12 Y-o-Y chg Revenue 197 110 79% 378 289 31% Expenses 208 151 38% 401 342 17% Operating Loss (11) (41) (72%) (23) (53) (56%) Loss After Tax (18) (50) (63%) (32) (70) (55%) Basic Loss Per Share (2.23) (8.64) (74%) (3.90) (12.21) (68%) 1 2Q13 Revenue Traffic (in RPK) increased 47.2%, from 1,760m (2Q12) to 2,591m (2Q13), mostly due to more flights flown by TT Yields (in RPKM) increased 21.2%, from 6.14 cents to 7.44 cents, mainly due to higher yield from TR 2 2Q13 Expenses Key operating statistics: ($’000) RPK increased 47.2% to 2,591 million y-o-y 86,039 Fuel Costs 56,145 ASK increased 42.1% to 3,126 million y-o-y 28,621 CASK fell 3.1% to 6.66 cents y-o-y Staff costs 24,249 21,548 Airport & handling 13,325 Maintenance, 20,743 material & repair 19,673 19,608 Aircraft rental 13,092 8,880 Route charges 4,271 8,128 Depreciation 7,950 14,588 Others 12,410 0 20,000 40,000 60,000 80,000100,000 2Q13 2Q12 3 Operating Statistics Number of passengers and traffic (RPK) trending upwards since Australia suspension in 2Q12 2,600 2,525 2,591 2,200 2,349 2,104 2,105 1,800 1,774 1,760 1,400 1,640 1,430 1,290 1,304 1,000 1,096 600 200 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 Pax No. (thousand) Traffic, RPK (mil) 4 Operating Statistics Passenger load factor trending over 80% in 1H13 Yield has come under pressure in the last 3 quarters due to intense competition in Australia domestic market. 1H13 yield improvement year-on-year (%) (cents) 7.89 100 7.53 7.59 7.44 8.00 7.04 95 7.00 6.14 90 6.00 85 85.5 80 83.3 82.9 5.00 80.0 80.1 75 78.9 4.00 70 3.00 65 2.00 60 55 1.00 50 0.00 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 Pax load factor (%) Yield, Revenue per RPK (cents) 5 Balance Sheet As at 30 September 2012 SGD‘m 30-Sep-12 31-Mar-12 Total equity dropped to SGD216m, mainly due to Group Assets losses incurred for the first six Cash 107 161 months Property, Plant and Equipment 793 832 Total assets decreased slightly to Other Assets 106 79 SGD1,006m, mainly due to Total Assets 1,006 1,072 reduction in cash balances for Liabilities repayment of bank borrowings Total Debt 499 584 Total liabilities decreased to Other Liabilities 291 239 SGD790m, mainly due to lower Total Liabilities 790 823 bank loans Total Equity 216 249 Net Debt 392 423 Net Debt/Equity Ratio 1.8 1.7 6 Cash Flow Movement Operating cashflow generated $31.9m, mostly from increase in forward sales and a higher payables net of receivables Financing cashflow was due mostly to repayment of bank loans Proceeds from aircraft sale Increase in forward Repayment sales of bank loans Higher payables net of receivables 7 Operating Statistics 2Q13 2Q12 % Change 1H13 1H12 % Change Passengers booked (thousands) 1,640 1,096 49.5 3,070 2,871 6.9 Revenue passenger-kilometres, RPK 2,591 1,760 47.2 4,941 4,285 15.3 (mil) Available seat-kilometres, ASK (mil) 3,126 2,199 42.1 5,947 5,153 15.4 Passenger load factor, RPK/ASK (%) 82.9 80.0 2.9 pts 83.1 83.2 (0.1) pt Average passenger fares ($) 93.0 80.3 15.9 97.2 80.1 21.4 Average ancillary revenues per 22.8 17.9 27.4 22.6 19.1 18.3 passenger ($) Revenue per RPK (cents) 7.44 6.14 21.2 7.51 6.67 12.6 Cost per ASK, CASK (cents) 6.66 6.87 (3.1) 6.75 6.64 1.7 CASK excluding fuel and forex 3.79 4.00 (5.2) 3.86 3.74 3.2 (cents) Breakeven load factor (%) 89.5 112.0 (22.5) pts 89.8 99.5 (9.7) pts Aircraft utilisation (block hours per 10.5 7.9 32.2 9.9 9.6 3.6 aircraft per day) Average sector length flown (km) 1,557.3 1,598.3 (2.6) 1,580.9 1,496.1 5.7 8 Tiger Singapore % % Period ($m) 2Q13 Change 1H13 Change 2Q13 Total Revenue 133 32.9% 271 28.3 Continued turnaround Total Expenditure 128 14.4% 262 21.6% with operating profit of Operating Profit 5 n.m. 9 n.m. $5m compared to a loss of $12m y-o-y Pax booked (thousands) 1,017 2.3 2,052 3.7 Healthy load factors as Revenue pax-km, RPK (mil) 1,847 11.8 3,685 12.4 capacity is better matched Available seat-km, ASK (mil) 2,249 10.1 4,408 12.1 with demand. Passenger load factor improved from Passenger load factor (%) 82.1 1.2 pt 83.6 0.2 pt 80.9% to 82.1% Developments & Outlook Successfully flew 100% of all scheduled flights in 1H13 Moved from Budget Terminal to new den at Changi Airport Terminal 2 in Sep-12 New services to Hyderabad from Sep-12 and Phnom Penh from Oct-12 Tiger Singapore-Scoot collaboration commenced from Oct-12 Continue to grow capacity at a measured pace 2H13 ASK forecasted to grow 17% y-o-y 9 Tiger Australia % % Period ($m) 2Q13 Change 1H13 Change 2Q13 Total Revenue 62 n.m. 104 38.5 Tiger Australia narrowed Total Expenditure 82 n.m. 145 15.5% operating losses from Operating Profit (20) (26.5%) (41) (18.6) $27m (2Q12) to $20m (2Q13) Pax booked (thousands) 622 n.m. 1,017 14.1 Tiger Australia operated at Revenue pax-km, RPK (mil) 744 n.m. 1,256 24.6 significantly reduced Available seat-km, ASK (mil) 877 n.m. 1,538 25.9 capacity and on a limited schedule last year Passenger load factor (%) 84.8 15.9 pt 81.6 (0.8) pt Developments & Outlook Commenced services from second base in Sydney (Jul-12) Took delivery of 11 th aircraft in Aug-12 New routes in 2H13 : Melbourne-Adelaide (Nov-12), Melbourne-Hobart (Nov-12), Melbourne-Mackay (Dec-12), Sydney-Mackay (Dec-12) Competition between the larger airlines in the Australian domestic market is expected to continue to keep yields under pressure in the near term Services back to pre-suspension level by Oct-12 10 Growth in SE Asia New JVs in start-up phase, expanding their presence in the region PT Mandala Airlines: South East Asian Airlines: Equity-accounted the share of loss up to cost of Completed acquisition of 40% stake in SEAir in investment of US$1. The Group’s share of Aug 2012 cumulative unrecognised losses was $9.2m as at Accounted $3.8m in share of loss in associate in 30 September 2012 2Q13 Mandala has a fleet of 4 aircraft; to increase to 7 SEAir has a fleet of 2 A319s and 3 A320s aircraft by end of FY13 Network expanded to include 4 international Currently serving 4 routes (Jakarta-Medan, routes and 1 domestic route out of Clark, 7 Jakarta-KL, Medan-Singapore and Bangkok- domestic routes out of Manila Jakarta) New services between Jakarta-Padang, Padang- Singapore, Denpasar-Singapore and Denpasar- Surabaya from Dec-12 11 2Q13 Developments: New Den @ T2 New Tiger flies from Singapore’s Terminal 2 from 25 Sep 2012 Successful fun-filled and glitch-free transfer from Budget Terminal to Terminal 2 Opportunities to provide enhanced customer experience from new terminal 12 2Q13 Developments: Combo flights FlightCombo TM : purchase more than one flight in a single reservation Opens up Tiger network for multiple combo flights Expands Tiger products with minimal costs Tiger Singapore and Scoot signed agreement on wide-ranging partnership to offer joint itineraries Single booking will allow travel on joint itineraries between destinations served by Tiger and Scoot Initial destinations include Phuket, Ho Chi FlightCombo TM : Minh City and Kuala Lumpur (served by Tiger); Sydney and Gold Coast (served by Scoot) 13 new destinations: Bangalore, Kochi, Hyderabad, Chennai, Thiruvananthapuram, Thiruchirapalli, Phnom Penh, Hanoi, Dhaka, Penang, Colombo, Kuching, Jakarta 13 2Q13 Developments: New Services Web check-in for Singapore passport holders from Sep-12 tigerAPP: Mobile app on Android, iPhone and iPad from Oct-12 tigerPLUS: an add-on premium service (S$48 charge) that provides greater convenience and comfort (eg. Dedicated check-in, SATS’ premier lounge access and priority boarding service) from Oct-12 Pre-order meals before flight 14 2Q13 Developments: New Destinations Singapore-Hyderabad and Phnom Penh flights launched in Sep 2012 and Oct 2012 respectively Australia: Sydney-Gold Coast, and Sydney-Brisbane routes launched in Jul and Aug 2012 respectively Melbourne-Adelaide, and Melbourne-Hobart routes to commence in Nov 2012 New Melbourne-Mackay, and Sydney-Mackay routes to commence mid-Dec Mandala: Jakarta-Kuala Lumpur and Jakarta-Bangkok flights launched in Aug 2012 Singapore-Bali and Padang to commence in Dec 2012 SEAir: Manila-Cebu commenced Jul 2012 Flights from Manila to Davao, Tacloban, Iloilo, Puerto Princesa, Boracay and Bacolod commenced Aug 2012 15 2Q13 Developments: Moving Forward! Achieved Best On-Time Performance for 3 months (July- Sept 2012) in Singapore.
Load more

Recommended publications
  • Tiger Airways Holdings (Singapore): Constituent Deletion Changes in FTSE ST Index Series
    CHANGE NOTIFICATION: Please be aware that we are making a change to the technical notices pages on our website. As of 25 February 2016 the full content of our technical notices will no longer be freely accessible to non - subscribing clients, and will put behind registration. We will continue to publish a cut-down version of the technical notice on our website, and the full technical notice for index methodology changes will continue to be made freely available. If you are a subscribing client and would like to continue to have access to the full versions of the technical notices online, please register here for a password. If you would like to speak to a FTSE Russell representative about a new subscription, please contact us at info@ftse.com. Tiger Airways Holdings (Singapore): Constituent Deletion Changes in FTSE ST Index Series 10 February 2016 Following the unconditional cash tender offer of Tiger Airways Holdings (Singapore, constituent) by Singapore Airlines (Singapore, constituent) with the offer acceptance level reaching more than 90%, in conjunction with the section 2.8 Mergers, Acquisitions and Tender Offers in the FTSE Corporate Actions and Events Guide, FTSE, SGX and SPH announce the following changes: Effective From Index Start of Trading FTSE ST Small Cap Index 15 February 2016 FTSE ST All-Share Index 15 February 2016 For further information or general enquiries please contact us at info@ftse.com or call: Client Services in UK: Tel: +44 (0) 20 7866 1810 Client Services in EMEA: Tel: +44 (0) 20 7866 1810 Client Services in US: New York: (Domestic) + 1 888 747 FTSE (3873) / (International): +1 212 314 1139 Client Services in Asia Pacific: Hong Kong: + 852 2164 3333 Australia:(Domestic Toll-Free) + 1800 653 680 / (International) + 61 (2) 9293 2864 Japan + 81 (3) 3581 2764 Alternatively please visit our website at www.ftse.com Terms of Use | Copyright © FTSE .
    [Show full text]
  • Tigerair Compensation Policy
    Compensation Policy Due to the current unprecedented situation regarding COVID-19 (coronavirus),your right to obtain a refund or compensation in respect of flight cancellations may be impacted during this time. We have created dedicated a page to let you know how we can assist you during this time. You can access the page here. The ACCC has also published some information for consumers about COVID-19 (coronavirus). You can read this here. Our compensation policy contains everything you need to know if your flight is delayed or cancelled, and the assistance we provide in these circumstances. 1.Purpose of this policy Our priority as a business is to get you to your destination safely and on time, having experienced our exceptional service. The safety of our passengers and crew is our paramount concern. The nature of flying is unpredictable, and there are many factors involved in getting a flight safely into the air, some of which are within our control but some which are outside of our control. For these reasons, there are occasions when we need to make changes to our flight schedules. Our schedules and flight times are estimates; we do not guarantee schedules or flight times and they do not form part of your contract with us. This Policy sets out the compensation and assistance we will provide to you where your flight has been delayed or cancelled. You may also have additional rights (including under the Consumer Guarantees in the Australian Consumer Law, for example) where your flight is delayed or cancelled and we cannot accommodate you on to a new service within a reasonable time.
    [Show full text]
  • 1 MEDIA RELEASE 28 November 2014 CCS CLEARS PROPOSED ACQUISITION by SINGAPORE AIRLINES LIMITED of TIGER AIRWAYS HOLDINGS LIMITE
    MEDIA RELEASE 28 November 2014 CCS CLEARS PROPOSED ACQUISITION BY SINGAPORE AIRLINES LIMITED OF TIGER AIRWAYS HOLDINGS LIMITED 1. The Competition Commission of Singapore (“CCS”) has cleared the proposed acquisition of Tiger Airways Holdings Limited (“Tigerair Holdings”) by Singapore Airlines Limited (“SIA”) (SIA and Tigerair Holdings collectively “the Parties”). CCS has concluded that the Proposed Transaction will not infringe the section 54 prohibition of the Competition Act, as Tigerair Holdings is likely to exit its operations in the absence of the Proposed Transaction. The Proposed Transaction 2. SIA holds 40% of the shares in Tigerair Holdings. Pursuant to the Proposed Transaction, SIA intends to acquire new Shares in Tigerair Holdings. SIA will convert all the Perpetual Convertible Capital Securities (“PCCS”) it holds in Tigerair Holdings into new Shares in the capital of Tigerair Holdings. Upon such conversion, SIA’s shareholding interest in Tigerair Holdings will increase from 40 percent to approximately 56 percent and accordingly, Tigerair Holdings will become a subsidiary of SIA. After the conversion, SIA will, pursuant to the irrevocable undertaking it has entered into with Tigerair Holdings, subscribe for its pro-rata entitlement of new shares in the capital of Tigerair Holdings (“Rights Shares”) and subscribe for any excess Rights Shares, up to an aggregate value of S$140 million. Markets affected by the Proposed Transaction 3. For the purposes of the merger assessment, CCS has determined that SIA and Tigerair Holdings compete in the markets for the supply of international air passenger transport services on economy-class for full-service airlines (“FSA”) and all classes of seats for low-cost carriers (“LCC”) on routes operated by both SIA and its subsidiaries (namely SilkAir and Scoot) and Tigerair Singapore, and which involve Singapore as part of an origin-destination (“OD”) pair.
    [Show full text]
  • TIGER AIRWAYS HOLDINGS LIMITED (The "Company") (Incorporated in the Republic of Singapore) (Company Registration Number: 200701866W)
    TIGER AIRWAYS HOLDINGS LIMITED (the "Company") (Incorporated in the Republic of Singapore) (Company Registration Number: 200701866W) VOLUNTARY CONDITIONAL GENERAL OFFER BY DBS BANK LTD., FOR AND ON BEHALF OF SINGAPORE AIRLINES LIMITED, FOR THE COMPANY1 Despatch of Offeree Circular 1. Introduction The board of directors (the “Board”) of the Company refers to the announcement (the “Offeror Despatch Announcement”) released on 26 November 2015 by DBS Bank Ltd. (“DBS”), for and on behalf of Singapore Airlines Limited (the “Offeror”) regarding the despatch of: (a) the formal offer document dated 26 November 2015 (the “Offer Document”) containing the terms and conditions of the Offer and the PCCS Offer and the Acceptance Forms; and (b) the proposal letter dated 26 November 2015 containing the terms and conditions of the proposal made by DBS, for and on behalf of the Offeror, to the holders of the outstanding options granted under the Pre-IPO Tiger Aviation Share Option Scheme (“Optionholders”) to subscribe for new Shares (the “Options”) in respect of their Options (the “Options Proposal”), and the Options Proposal Acceptance Letter. 2. Despatch of the Offeree Circular The Board wishes to inform Shareholders, PCCS Holders and Optionholders that the Company has today despatched a circular dated 9 December 2015 (the “Offeree Circular”) to Shareholders, PCCS Holders and Optionholders. The Offeree Circular contains, inter alia: (a) the advice of Maybank Kim Eng Securities Pte. Ltd., the independent financial adviser to the directors of the Company who are considered independent for the purposes of the Offer, the PCCS Offer and the Options Proposal (the “Independent Directors”); and (b) the recommendation of the Independent Directors in respect of the Offer, the PCCS Offer and the Options Proposal and relevant information pertaining to the Offer, the PCCS Offer and the Options Proposal for the consideration of Shareholders, PCCS Holders and Optionholders, in compliance with Rules 19 and 24 of the Singapore Code on Take-overs and Mergers.
    [Show full text]
  • The Path of Progress
    The Path of Progress ANNUAL REPORT FY2014/15 Mission Statement "Singapore Airlines is a global company dedicated to providing air transportation services of the highest quality and to maximising returns for the benefit of its shareholders and employees." Contents The Airline was named the “Most Attractive 20 Employer in Singapore” by Randstad Singapore The Year in Review for the third consecutive year. The SIA Group recorded a $151 million increase in full-year operating profit amid lower fuel costs. 3 23 Portfolio at a Glance Fleet Management An overview of SIA is committed to the highlights of the maintaining a young and SIA Group airlines modern fleet Overview Strategy Performance Governance Financial 2 3-Year Financial 8 Flying the Nation’s Flag 20 The Year in Review 62 Statement on 82 Financial Report Highlights with Pride 22 Network Risk Management 83 Report by the Board 3 Portfolio at a Glance 10 Reaching New Heights 23 Fleet Management 63 Corporate of Directors 4 Statistical Highlights of Excellence 24 Products and Services Governance Report 215 Notice Of Annual 6 Significant Events 12 Continually Looking 30 People Development 73 Membership and General Meeting Beyond the Horizon Attendance of 32 Environment IBC Corporate Data Chairman’s Letter Singapore Airlines 14 Community Engagement to Shareholders 33 Limited 35 Subsidiaries 16 Board of Directors 74 Further Information on 44 Financial Review Board of Directors 60 List of Awards An overview of the Airline’s An introduction to the An account of the Airline’s The Airline’s approach Detailed financial major achievements for the direction the Airline is taking progress with more details to corporate governance information charting the year in review.
    [Show full text]
  • Corporate Governance Case Studies Volume Six
    Corporate Governance Case Studies Volume six Mak Yuen Teen, PhD, FCPA (Aust.) Editor First published October 2017 Copyright ©2017 Mak Yuen Teen and CPA Australia All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, except for inclusion of brief quotations in a review. The views expressed in this publication are those of the authors and do not necessarily represent the views of, and should not be attributed to, CPA Australia Ltd. Please contact CPA Australia or Professor Mak Yuen Teen for permission of use of any case studies in this publication. Corporate Governance Case Studies Volume Six Editor : Mak Yuen Teen, PhD, FCPA (Aust.) Editor’s email : bizmakyt@nus.edu.sg Published by : CPA Australia Ltd 1 Raffles Place #31-01 One Raffles Place Singapore 048616 Website : cpaaustralia.com.au Email : sg@cpaaustralia.com.au ISBN : 978-981-11-4981-8 II Contents Foreword Preface Singapore Cases BROOKE ASIA: A SHORT CUT TO CONTROVERSY .................................................... 1 CELESTIAL FOODS: FROM HEAVEN TO HELL .......................................................... 14 MMP RESOURCES: HEADING TOWARDS A DEAD END? ......................................... 29 NATURAL COOL FACES HEAT................................................................................... 45 OSIM’S BUNGLED PRIVATISATION OFFER ..............................................................
    [Show full text]
  • Singapore Airlines
    SINGAPORE AIRLINES Annual Report FY2016/17 MISSION STATEMENT Singapore Airlines is a global company dedicated to providing air transportation services of the highest quality and to maximising returns for the benefit of its shareholders and employees. OUR JOURNEY CONTINUES... CELEBRATING 70 YEARS OF EXCELLENCE: The Singapore Airlines Group’s history dates back to 1947 with the maiden flight of Malayan Airways Limited. The airline was later renamed Malaysian Airways Limited, and then Malaysia-Singapore Airlines. In 1972, Malaysia-Singapore Airlines split into Singapore Airlines and Malaysian Airline System. Initially operating a modest fleet of 10 aircraft to 22 cities in 18 countries, Singapore Airlines’ commitment to service excellence, product leadership and network connectivity quickly distinguished it as a world-class international airline group. Today, Singapore Airlines operates a modern passenger fleet of more than 100 aircraft. Together with wholly-owned subsidiaries SilkAir, Scoot, Tiger Airways (which operates as Tigerair) and SIA Cargo, the SIA Group fleet comprises nearly 180 aircraft. The combined passenger network covers 131 destinations in 35 countries. More than 31 million passengers were carried by the SIA Group’s four Singapore-based passenger airlines in the 2016/17 financial year. Singapore Airlines and its subsidiaries today employ more than 25,000 staff, with the world-famous Singapore Girl as an iconic symbol of quality customer care and service. CONTENTS OVERVIEW STRATEGY PERFORMANCE GOVERNANCE FINANCIAL 2 3-Year
    [Show full text]
  • The Brand Finance Top 100 Singapore Brands Report 2015 on Singapore’S Intangible Assets and Brands Contents
    Singapore 100 2015The Brand Finance Top 100 Singapore Brands Report 2015 on Singapore’s intangible assets and brands Contents David’s Foreword 3 Samir’s Foreword 4 Introduction 5 Report Card on Intangible Assets 6 Should Singapore be concerned with Intangible Asset Value 7 Getting a grip on intangibles 8 – 11 Singapore Top 10 Page 13 Report Card on the Top 10 14 – 18 Top 100 Brands Listing 19 – 20 Background on Intangible Asset Value 21 – 25 Trademarks and other Intangibles 27 – 28 New International Standard on Brand Valuation 39 – 35 Transparency in Brand Valuation 36 Methodology 37 – 38 Glossary of terms 41 About Brand Finance 42 Understand Your Brand Value 43 Contact Details 44 Foreword Foreword strong credentials of many technology heavyweights, higher revenues, lower costs and greater capital value. some commentators are concerned about the overvaluations on the smaller to medium sized end of the Brand managers need to understand how these brand technology industry. The NASDAQ is only 18% off the equity attributes impact on the branded business and highs reached during the technology boom of 2000. need to develop marketing strategies to optimise brand- switching behaviour. Over the past decade, Brand Finance has been dedicated in helping companies track and measure their investments As such, the valuation of brands is an important function, in their intangible asset portfolio. to provide tangible, financial evidence of their status as assets and an indication of the value generated through Certain steps can be undertaken to ensure that an the investment in brand equity. economic value driven strategy occurs throughout the David Haigh organization, mush after the deals are done.
    [Show full text]
  • Qantas Group Submission Productivity Commission Inquiry Into Economic Regulation of Airports
    Qantas Group Submission Productivity Commission Inquiry into Economic Regulation of Airports Qantas Group Submission Productivity Commission Inquiry into Economic Regulation of Airports This is a public submission and an evidence-based documentation of Qantas Group’s experiences of Australia’s airports’ monopoly behaviour. It focuses on commercial negotiations, security services, infrastructure and matters of fuel security and access to demonstrate how airports’ monopoly behaviour negatively impacts the aviation industry, passenger welfare and productivity growth. It is not an all-inclusive survey of airport regulation and airports’ monopoly power. This submission supplements the investigations of and potential remedies outlined by Airlines for Australia & New Zealand (A4ANZ) and broadly aligns with the submissions made by International Air Transport Association (IATA) and Board of Airline Representatives of Australia (BARA). September 2018 2 QANTAS GROUP SUBMISSION — PRODUCTIVITY COMMISSION INQUIRY INTO ECONOMIC REGULATION OF AIRPORTS Table of Contents 1. Foreword 4 2. Executive Summary 6 3. A Fresh Look at Airport Market Power 7 4. Aeronautical Services and Facilities 11 5. Aviation Security 28 6. Car Parking and Landside Access 32 7. Land Transport Linkages 33 8. Air Services to Access Regional New South Wales 34 9. Aviation Fuel Security and Supply 35 10. Appendices 39 Appendix 1 Airport Ownership Key Developments 40 Appendix 2 Australian Government Draft Aeronautical Pricing Principles 43 Appendix 3 Norton White Lawyers: Memorandum of Advice on Aviation Security 45 QANTAS GROUP SUBMISSION — PRODUCTIVITY COMMISSION INQUIRY INTO ECONOMIC REGULATION OF AIRPORTS 3 1. Foreword Qantas has been at the forefront Millions of passengers Today, Qantas Group, through its airlines Qantas, Jetstar, of global aviation for almost 100 years.
    [Show full text]
  • Tiger Airways Flies Into Regional Turbulence by Justin Hsiao
    NUS Risk Management Institute rmicri.org Tiger Airways flies into regional turbulence By Justin Hsiao Tiger Airways Holdings Ltd (TGR), 40% owned by Singapore Airlines Ltd, has been struggling with negative operating margins and falling yields per passenger mile. The low-cost carrier reported a loss of USD 52.1mn in the quarter ended in June, widening from a USD 26.1mn loss a year earlier. Overall, the business posted losses for the last three quarters. As shown in Chart 1, the RMI 1-year probability of default (RMI PD) for TGR displayed a distinct increasing trend since the middle of last year from 2.86bps to the current 35.14bps, rising above the aggregate PD for 4 listed low-cost airlines in the Southeast Asian region. Chart 1: 1-year RMI PD for Tiger Airways vs Aggregate PD for listed budget carriers in Southeast Asia. (includes RMI PDs for AirAsia BHD, Asia Aviation PCL, Cebu Air Inc and Nok Airlines PCL) Source: Risk Management Institute Tiger Airways most recent quarterly net loss is the largest of all Southeast Asian budget carriers. According to the CEO Lee Lik Hsin, the low frills airline industry is facing a challenging operating environment due to a persistent oversupply of flight capacity. Recent aviation disasters in Malaysian Airlines and the Taiwan air accident may affect passenger flight revenue but the carrier plans to focus on filling its planes with passengers, and then improving yields through partnerships to increase earnings. In order to gain overseas revenue, TGR has affiliate companies, subsidiary companies, and joint ventures across Southeast Asian region, including Indonesia, Australia, Philippines, South Korea, Thailand, and Taiwan.
    [Show full text]
  • WASHINGTON AVIATION SUMMARY September 2010 EDITION
    WASHINGTON AVIATION SUMMARY September 2010 EDITION CONTENTS I. REGULATORY NEWS................................................................................................ 1 II. AIRPORTS.................................................................................................................. 5 III. SECURITY AND DATA PRIVACY ……………………… ……………………….……...7 IV. E-COMMERCE AND TECHNOLOGY......................................................................... 9 V. ENERGY AND ENVIRONMENT............................................................................... 10 VI. U.S. CONGRESS...................................................................................................... 11 VII. BILATERAL AND STATE DEPARTMENT NEWS .................................................... 13 VIII. EUROPE/AFRICA..................................................................................................... 14 IX. ASIA/PACIFIC/MIDDLE EAST .................................................................................16 X. AMERICAS ............................................................................................................... 18 For further information, including documents referenced, contact: Joanne W. Young Kirstein & Young PLLC 1750 K Street NW Suite 200 Washington, D.C. 20006 Telephone: (202) 331-3348 Fax: (202) 331-3933 Email: jyoung@yklaw.com http://www.yklaw.com The Kirstein & Young law firm specializes in representing U.S. and foreign airlines, airports, leasing companies, financial institutions and aviation-related
    [Show full text]
  • Cebu-Tiger SAA Grounds of Decision (14 October 2015)(Public)
    Section 44 of the Competition Act (Cap. 50B) Notice of Decision issued by the Competition Commission of Singapore (“CCS”) Application for Decision by Cebu Air, Inc. and Tiger Airways Singapore Pte. Ltd. 21 September 2015 Case number: CCS 400/009/14 Confidential information in the original version of this Decision has been redacted prior to publication on the public register. Redacted confidential information is denoted by []. 1 EXECUTIVE SUMMARY 1. On 12 September 2014, the Competition Commission of Singapore (“CCS”) received an application for decision made under section 44 of the Competition Act (Cap. 50B) (“the Act”) by Cebu Air, Inc. and Tiger Airways Singapore Pte. Ltd. (collectively referred to as “the Parties”) in relation to them entering into a Strategic Alliance Agreement (“SAA”). A decision was sought as to whether the SAA will infringe the prohibition under section 34 of the Act. 2. CCS’s assessment, following its review of the submissions and information provided by the Parties, and the feedback and inputs received from third-parties, is that the SAA will by its nature have the object of preventing, restricting or distorting competition within Singapore. 3. CCS found that the SAA will not benefit from the net economic benefit exclusion set out in section 35, read with paragraph 9 of the Third Schedule to the Act (the “NEB Exclusion”) and will therefore prevent, restrict or distort competition in the Relevant Markets (as defined in paragraph 69). Specifically, CCS assessed that the strategic alliance will raise competition concerns with respect to the Singapore – Clark and the Singapore – Cebu routes.
    [Show full text]