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Jakarta Post

Airline business and Titanic syndrome

  • Burhanuddin Abe

    Contributor

PREMIUM
Jakarta   /   Tue, October 12 2010   /  10:36 am

Stiff competition among airlines is indeed unavoidable these days.

Leading airlines, which used to enjoy brisk business, now have to reorganize and revamp their business in order to survive, especially in view of the regional open sky policy coming into effect in 2015.

The sad fact is that a number of airlines have gone bankrupt in recent years. In 2008, 32 ceased operations while in 2009 no fewer than 26 went bust.

Regionally, Singapore Airlines (SIA) suffered an operating loss of S$428 million in the first half of 2009, compared to its S$95 million profit in 2008. MAS is reported to have lost about RM 117.5 million in the January-September 2009 period while Thai Airways reported losses of approximately 1.57 billion baht in the first nine months of 2009.

Vietnam Air is estimated to have earned US$14 million pre-tax profit in 2008 which dropped 42 percent ...