• ARTWORK AT AIRBUS. TAKE A GUESS – IN TOULOUSE OR HAMBURG? PIC/SHUKOR YUSOF
    Aviation

    Airbus loses its elan

    Forget about Macron vs. Merkel or Les Bleus vs. Die Mannschaft. Franco-German rivalry goes back a long, long way, well before European aircraft manufacturer Airbus was born. France and Germany each has an 11.1% stake in Airbus, a giant aerospace company created in 1970 as a European industrial initiative to compete with Boeing. On the surface cooperation between the two appears cordial. In reality it is anything but that. Whenever there’s an industrial dispute or production issues, old enmities come into play. In 2006 when the A380 production delays resulted in major financial woes, the French (under Noel Forgeard) blamed the Germans allegedly over problems at its Hamburg plant. Rubbish,…

  • HOW WILL AIRLINES FARE IN 2018? PIC/SHUKOR YUSOF
    Aviation

    What’s in store for airlines in 2018?

    There’s an air of optimism in the Asian airline industry following the International Air Transport Association’s (IATA) proclamation that airlines in this region will make a profit of USD9 billion in 2018. IATA expects 2018 to be the fourth consecutive year of sustainable profits with a return on invested capital (ROIC) of 9.4%. This figure exceeds the industry’s average cost of capital of 7.4%. Collective net profit for all airlines is expected to rise to USD38.4 billion in 2018 (from USD34.5 billion projected in 2017). Here’s IATA’s industry economic performance. According to IATA passenger market conditions vary across Asia Pacific. IATA’s latest figures also corroborate what we have seen – intense…