KUCHING: The prospect for aviation sector looks bright coming into 2018, despite the challenges such as rising fuel prices, analysts observed. In a report, the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) said the prospect for aviation sector looks bright coming into 2018. “Despite the challenges such as rising fuel prices, we believe airlines like AirAsia Bhd (AirAsia) and AirAsia X Bhd (AAX) to remain buoyant, underpinned by its continuous improvement in operational cost coupled with aggressive capacity expansion,” it said in a report yesterday. It pointedRead More
KUCHING: The prospect for aviation sector looks bright coming into 2018, despite the challenges such as rising fuel prices, analysts observed. In a report, the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) said the prospect for aviation sector looks bright coming into 2018. “Despite the challenges such as rising fuel prices, we […]
KUCHING: For Malaysia’s aviation sector, analysts are positive about AirAsia Bhd’s (AirAsia) growth plans while they expect slightly slower traffic growth for Malaysia Airports Holdings Bhd’s (MAHB) Malaysian operations. The research arm of Kenanga Investment Bank Bhd (Kenanga Research) explained that it is more positive on MAHB’s operations in Turkey and it targeted a double-digit […]
KUCHING: Analysts gave two thumbs up to Air Asia Bhd (AirAsia) completing the listing of its Indonesian arm, Indonesia Air Asia via a reverse takeover exercise with PT Indonesia Air Asia. This was pursuant to the latter’s acquisition of a 57.3 per cent stake in Indonesia AirAsia. PT Indonesia Air Asia recently raised RM1.1 billion […]
KUCHING: The International Air Transport Association (IATA) is strongly concerned by the proposed charge that would be levied on passengers flying into and out of Malaysia. This comes as the country is planning to introduce a new border management programme called Advance Passenger Information (API) known in Malaysia as Advance Passenger Screening System (APSS). API […]
KUALA LUMPUR (Oct 18): Khazanah Nasional Berhad (Khazanah) said a New Straits Times report yesterday on the departure of Malaysia Airlines CEO Peter Bellew is…
PETALING JAYA: Felda Global Ventures Holdings Bhd (FGV) and Majlis Amanah Rakyat (Mara) have decided to scrap the memorandum of understanding (MoU) signed between the two parties on May 12, 2016, to collaborate in logistic services, specifically in the aviation sector, within Mara group.
In 2014, the federal government awarded Mara the job to develop Sultan Abdul Aziz Shah Airport in Subang as Original Equipment Manufacturer (OEM) for Southeast Asia. The project is now called Asia Aerospace City.
FGV announced in a Bursa Malaysia filing on Friday, the two decided to terminate the MoU signed between Felda Transport Services Sdn Bhd and Mara Liner Sdn Bhd without disclosing the reason behind the termination. The termination is not expected to impact the earnings of both parties.
In May, FGV's board had stated that it had approved a further one year extension to the MoU and was awaiting the decision of its counterpart on the extension.
FGV's shares remained at RM1.71 with some 2.77million shares changing hands.
Things are looking up for Malaysia’s aviation industry as the economy continue to improve after recent challenges seen in the global markets and the aviation industry over the last few years. Aided by state governments’ push to improve air connectivity to and from local states within and beyond the country’s borders, Malaysia’s aviation industry could […]
SINGAPORE: Boeing Co said on Friday it had increased its 20-year forecast for Southeast Asian demand by 460 aircraft, the largest jump of any global region, as low-cost carriers make travel more accessible.
Boeing sees demand for 4,210 new airplanes worth US$650 billion in Southeast Asia over the next two decades, based on an estimate of annual traffic growth of 6.2%. That is up from last year's forecast of 3,750 aircraft valued at US$550 billion.
“Look at countries like Vietnam, Thailand and Indonesia – that infrastructure has to grow and will grow,” said Dinesh Keskar, Boeing's vice president for Asia-Pacific and India sales. “Aviation is the biggest source of tourism for the countries, it is the biggest source of moving people and moving cargo.”
Southeast Asia, home to rapidly growing low-cost carriers like Indonesia's Lion Air, Vietnam's Vietjet and Malaysia's AirAsia Bhd, is taking on greater importance for Boeing and Airbus SE as North American and European markets are more mature with far lower growth rates.
Keskar said single-aisle airplanes like the 737 MAX and Airbus SE A320 were set to account for more than 70% of new deliveries as most travel in the region is expected to to be short-haul.
China is also trying to compete in this market. The C919 narrowbody, which took its first test flight in May, has received 730 orders to date.
“Certainly we watch that, we watch our competition,” Keskar said of the C919. “We try to bring products which are superior with lower seat mile cost, better fuel burn and a better passenger experience.”
The Boeing forecast does not include any deliveries to Myanmar, Cambodia or Laos, which have less developed aviation sectors than neighbouring countries like Thailand and Vietnam.
Airbus has not released a specific order forecast for Southeast Asia but a spokesman said the European manufacturer expected annual passenger growth of 7% a year over the next 20 years.
Boeing sees worldwide demand at 41,030 new airplanes over the next two decades. While it sees demand jumping the most in Southeast Asia, it has not yet given breakdowns for each global region. — Reuters