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2007, here we come and fly.

January 1st 2007 12:28
It was a period when official and work matters are sidelined and a time that shift the lights prominently on family and friends. It was also a period many of us looked forward to; a break.

Finally the year end run up to Christmas and New Year celebrations is over.

1st January, 2007, is a threshold of getting back to business albeit it would be a rather slow start as the market would likely to be so as it open for the first trading of 2007. Contrastingly, the Aussie market closed 2006 on a higher note while major bourses around the globe fell, mainly due to light trading as a result of holidays. Wall Street will have an extended holiday to make way for a national day of mourning following the death of former US president Gerald Ford.


With the holiday mood unwinding slowly and lack of economic leads around the world, the local market is expected to open lower on Tuesday. Traders and analysts believe that investors won't be too keen in rushing to the market on the first week of the new year. Continuing the expectations from last year, the market is expected to rise on a more moderate pace.

As the news focused on the new year celebrations and cricket, the local media missed a New Year Surprise. Three major budget airlines are teaming up to form an alliance to fly long-haul routes. The alliance comprise of AirAsia of Malaysia, Richard Branson's Virgin and EasyJet.

From the AFP: "Three of the world's top budget carriers including Richard Branson's Virgin, will soon form a global alliance based in Malaysia to fly long-haul routes, a report has said."


Malaysian English-language daily, The Star, described the formation as, "the world's first low-cost global network." Further reports indicated the Malaysia-based budget airline would soon make an official annoucement of the long-haul route alliance.


Though not the first to take on long-haul routes but the tie-up is indeed rousing strong interest as the alliance could pose considerable threats to the profits of the traditional airlines and flag carriers from Europe to the Asia Pacific. Due to the geographical proximity and competition of routes, the impact could very much hit Australia's airline industry, something the private equity group attempting to take over Qantas should think about, strongly.

Three years ago the writer wrote a paper potraying the expansion of budget airlines into long-haul routes in a context similar to what is currently unfolding. The article will be republished on the Portal soon.
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Comments
3 Comments. [ Add A Comment ]

Comment by AnthonyB

January 2nd 2007 01:25
Well I do like Richard Branson. A very clever man indeed. I hope 2007 brings you many joys !!

P.S. If you have any get rich quick schemes, post them up. I'd love to have a gander

- Anthony

Comment by Benjamin

January 2nd 2007 06:20
Branson is indeed a very smart businessman, no doubt. I really hope that 2007 brings in dirt cheap airfares on long-haul routes. So we all can fly!

Get rich quick schemes? haha, are there really such things? But it is alright to analyse such schemes and reveal the dark sides.


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February 11th 2007 13:11
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