LionelHutz wrote:smi0006 wrote:LionelHutz wrote:Australian Financial Review reporting JP Morgan has assessed currently SYD-HKG is worst performing international route and SYD-PER worst performing domestic route.
SYD-HKG said to be driven by increased capacity driving down yields and SYD-PER still suffering from excess capacity.
http://www.afr.com/business/transport/a ... 221-gtfmtz (behind paywall)
I can't access the article, but does it take into impact the broader network contribution each route makes? How many PER-SYD pax connect beyond SYD with VA QF and does that help the bottom line of other routes? Seems a strange thing to analyse
It's only a brief article and the report it references I can't find online, or after a brief look around the JPMorgan website.
Nothing is mentioned about network contributions or the exact methodology in the article. I'll keep my eye out to see if it is published to see how in-depth it actually goes.qf2220 wrote:Not surprising on the SYD-PER and SYD-HKG sectors.IndianicWorld wrote:Any route that has significant capacity growth (HKG and SIN come to mind) or market downturns (PER) have their challenges. That is no surprise.
At the end of the day though, this analysis could be off the mark for all we know.
Yes, not particularly surprising routes that may have yields under pressure.
It will be interesting to see if QF or VA down gauge any of their services out of PER from A332's to B738's, or whether they feel the worst is behind in the East-West market.
I was able to get access to the article by googling it,
It refers to SYD-HKG and SYD-PER routes as the worst performing routes in October where fares fell 18% and 13% respectively
SYD-HKG saw a jump in capacity of 24%
JPMorgan estimates yields fell as much as 18% on some key international routes
MEL-LAX was the best performing route up 2% for QF and 13% for UA
SYD-PER was down 13% for QF and 7% for VA
SYD-MEL was down 1% for QF and 5% for VA