Corporate Travel Analysis Reports

The first Qantas 787 long haul service is currently just under 12 months away. The Dreamliner operated QF 95 from Melbourne to Los Angeles is set to launch on 15-Dec-2017, going head to head with United Airlines' own 787 Dreamliner service and Virgin Australia's return to this route.

As heavy fog, snow and the occasional stray reindeer lead to what will be the almost inevitable havoc at Europe's airports this Christmas period, the Blue Swan Daily looks at the European regulation providing protection to passengers travelling to and from the EU - as well as the airline industries' push to ensure the right balance is maintained.

Delays, cancellations and denied boarding are an unavoidable part of air travel, particularly during the busy winter festive season. For those travelling to Europe, EU Regulation 261/2004 (the "Regulation") sets out a series of entitlements available to eligible passengers in the event of such delays.

As 2016 draws to a close, in a series of five Q&A reports, the Blue Swan Daily, in conjunction with its parent CAPA - Centre for Aviation, reviews the past year for aviation in the Australia Pacific region and what lies ahead for 2017.

In an uncertain world, from the disruption of Brexit to the likely confrontationalist attitudes of a Trump administration, and instability in many parts of the world, from Russia to the Middle East to Asia, Australia and New Zealand's aviation sectors are mostly in rude health, with liberal policy settings and globally high service levels. Yet each of the main airlines in Australia and New Zealand still relies heavily on its domestic markets.

As heavy fog, snow and the occasional stray reindeer lead to what will be the almost inevitable havoc at Europe's airports this Christmas period, the Blue Swan Daily looks at the European regulation providing protection to passengers travelling to and from the EU - as well as the airline industries' push to ensure the right balance is maintained.

Delays, cancellations and denied boarding are an unavoidable part of air travel, particularly during the busy winter festive season. For those travelling to Europe, EU Regulation 261/2004 (the "Regulation") sets out a series of entitlements available to eligible passengers in the event of such delays.

Western Sydney Airport (The airport of dreams) is currently planned to become operational in 10 years' time. That is sufficiently long to be beyond political horizons and for the usual assortments of opponent to form up once again: political opportunists, environmentalists, NIMBYs and every other form of inertia that prevents airports being built, or even used effectively. No doubt there is often merit in some of the arguments, but mostly not.

Although it happened on the other side of the world, the potential change this weekend's partnering agreement between Lufthansa and Etihad will have for Australia and New Zealand can't be understated.

As New Zealand's economy sparkles, trans-Tasman activity is growing at well above historic rates. New Zealand GDP is projected to increase 3.5%, against Australia's 2% for the current financial year.

As Qantas now looks to expand its own services westbound towards Europe - with the recent announcement of Perth to London direct 787-9 Dreamliner services scheduled to commence in early 2018 - looking east Christmas was almost ruined following the blow dealt to Australian's largest carrier as a result of the US Department of Transport's (DoT) rejection of a proposed joint venture with American Airlines (AA) across the Pacific. This, despite Australia's Competition and Consumer Commission and New Zealand's Ministry of Transport approving the proposed venture earlier this year.

United's 3Q2012 financial results reflect management's declaration that the quarter was one of the toughest of the merger integration with Continental Airlines. The challenges were reflected in its modest USD6 million profit, and the carrier's continuing lacklusture unit revenue performance. But the carrier pledges that the challenges it faced with an IT systems cutover and aircraft redeployment that fuelled its weak performance have been met, and it expects customer sentiment to improve now that operational disruptions have abated.

The carrier's USD6 million profit was a 99% slide year-over-year. Excluding special items, the carrier recorded a profit of USD520 million. United also saw a significant 79% slide in operating income to USD200 million as expenses grew 5% to USD9.7 billion while total operating revenues fell 2.6% to USD9.9 billion.

A 91% hike in profits during 3Q2012 at Delta Air Lines was somewhat overshadowed by rising unit costs that have challenged the carrier for most of 2012. Carrier management pledges that a two-year scheme designed to remove USD1 billion in costs will allow Delta to consistently meet its return on invested capital targets of 10% to 12% and continue to produce revenue premiums to the industry.

But accompanying those declarations is a warning that unit cost pressure will continue into 1H2013 as Delta cautions the structural changes ushered in by its cost pairing plan will take some time to implement and take effect. As the carrier works on its long-term strategy of cost containment, its outlook for the remainder of 2012 remains favourable as strong corporate demand is driving the carrier's ability to sustain revenue and yield growth.