The Week in Brief 27 October 2011

Christchurch International Airport Limited has reported a NZ$21 million net profit after tax in what was the company’s toughest year. While the year to 30 June 2011result was lower than the $26.8 million net profit reported the previous year, it was a ‘’satisfactory’’ result considering the traffic impacts of the Canterbury earthquakes and the Chilean volcanic ash cloud, the company said.

Carlson Wagonlit Travel says that the Asia Pacific travel market is thriving, leading the way in many economic indicators and correspondingly, in business travel volumes. However, APAC travel prices will be flatter in 2012 on a quarter-over-quarter basis, given that the region was not as affected by the economic downturn as other parts of the world, and has already been experiencing strong growth rates throughout 2011. CWT forecasts airline pricing in APAC to increase by 3.1 to 3.8 per cent in 2012 as a dynamic mix of legacy airlines and a growing group of low-cost carriers compete for travellers, holding down fares in the region.

And an Amadeus report (in conjunction with IdeaWorks) estimates that airline ancillary revenues will add up to around US$32.5 billion this yeat globally, up from $22.6 billion last year. The Asia Pacific region is on track to deliver $6.3 billion in ancillary revenues this year, up 30 per cent on 2010. IdeaWorks believes that 48 per cent of the $9.9 billion worldwide increase can be attributed to the higher overall level of revenue and passenger activity.  But the remaining 52 per cent is attributed to carriers becoming more focused on ancillary revenue through better financial disclosure, stronger merchandising efforts, and adding more à la carte services for sale.  

As if Boeing's 787 hadn't had enough problems along the way, now first operator of the Dreamliner, Japan's ANA, has had a bingle. Apparently the ANA crew managed to drive an engine cowling into a boarding bridge at the gate. But it was minor damage and the airline was scheduled to fly its first revenue flight from Narita to Hong Kong yesterday.

And Boeing's main man Jim McNerny said yesterday that it could take up to two years after production of the 787 reaches the goal of 10 a month before the program is at break even. Boeing hopes to be at that 10/month rate sometime during 2013, so it sounds like they're talking 2015 for break even. Does that sound optimistic, given that the A380 is still not there after four years of commercial operation?

English media have reported that Britain’s Chancellor has admitted that the controversial Air Passenger Duty, which adds hundreds of pounds to family holidays, is a simple tax grab. The APD has always been portrayed by successive governments as an environmental measure designed to discourage air travel. But in a leaked letter, Chancellor George Osborne says: "APD is fundamentally a revenue raising duty and currently raises around £2.5billion per year." The reports say Osborne is expected to announce a rise in APD for 2012 next month.

Airlines wanting to dodge barriiers to flying into the European Union can now acquire an air operator holding an Austrian AOC and can then legally operate flights from the EU. Aviation Consultants International says it has acquired exclusive rights to an air operator holding a valid Austrian AOC and is looking for partners to operate an airline or for an outright sale. This will allow the buyer to start an independent European airline or bring their existing fleet to operate as a European carrier.