how low is new low, : )

mountain !

Price war among airlines intensifying, lower fares seen

Price competition in the aviation sector is set to intensify moving forward, according to CIMB Research.

The research house believes that this could happen from the fourth quarter onwards.

“There are clear signs that competition will intensify in 4Q16 and 2017. The new Malaysia Airlines Bhd chief executive officer Peter Bellew recently said that MAS will have to address chronically-low load factors which averaged below 70%,” CIMB Research said.

“It will soon price 15%-20% of its seat inventory at lower fares, in an effort to wrest back market share.

MAS will also introduce six to seven new destinations in 2017, possibly from klia2 and Kota Kinabalu to China,” the research house added.

Meanwhile, Malindo will also be adding more capacity and CIMB expects more aircraft to be delivered into its fleet for the rest of the year.

“Malindo, which started the year with the express goal of expanding by six to 10 aircraft, finally added a couple of new planes. One 738 arrived in late June, and two more were delivered in July, taking its total jet fleet from 16 to 19. It also took delivery of two new ATRs in July, raising its turboprop fleet from 11 to 13-strong,” it said.

The research house noted that the aviation industry is cyclical, with it swinging from decreasing and rising competition.

It highlighted that in the year 2013, the environment was intense with the entry of Malindo and with the-then management of MAS flooding the market with capacity.

“This was followed by a competitive truce during 2014, before conditions improved significantly from August 2015 post-MAS restructuring.

“But the pendulum is in the early stages of a swing in the other direction,” CIMB Research noted.

Q 30 lots at 0.61, : )

bought 20 lots at 0.625, : )

very strong selling pressure, scary

bought 30 lots at 0.635, Q 30 lots at 0.625, : )

managed to buy 60 lots (60,000) at 0.645, happy, : )

Heng Ah Ong Ah Huat Ah !

good news for property, : )

good news, : )

good news for property sector, : )

eco eco eco........................ecoworld

sold 30 lots at 0.665, locked in profit, free up capital, bal : 30 lots at 0.63, : )

fundamentally undervalued and overlooked counter but share price performance like holland counter, : )

last min bought 40 lots at 0.63, hopefully not holland counter, : )

very strong selling pressure, : )

sold all at 0.655 - 0.65, locked in profit , free up capital, yup, this counter, tak boleh pakai, : )

performance of EW's price below expectation even with good 2Q result

improve liquidity, reduce gearing, locked in profit, yes, good deal, : )

managed to buy 60 lots at 0.625, : )

expertmillion, well said, : )

luckily yesterday sold all at 0.445 (cost 0.43), locked in profit, : )

sold all at 0.63 - 0.635 (cost 0.58), locked in profit, free up capital, : )

bought malton at 0.68, : )

wow, bought at 0.66, now 0.73 already, so good : )

wow, yesterday bought at 0.43, now 0.445 already, so good, : )

0.705, YES, : )

well said sokdotcom, : )

Good point pingdan, historically second quarter is very challenging, i will consider to re-enter in due course, : )

just look at cash flow from operating activities, attractive, : )

Green as expected, i also bought at 0.66, but i prefer more, ha ha ha

wow, 0.365 already, scary, : )

why sold off at 0.675 hng33, like that how to make profit, green soon, : )

Agreed hng33, good move, : )

well said, chinaman, : )

waw, 0.68, scary

apabolehbuat, thanks for sharing, : )

yes, radzi, excellent observation, thumbs up

Dave, thanks for sharing, : )

giant, wake up, : )

wow, unbelievable, below 0.70 support level, scary

emmmm, yup, i think closing at 0.40 - 0.405

a bit oversold, i think it will rebound, : )

yes, very good, : )

AAX-WA high risk, : )

fair value, it is in equilibrium, : )

well done,icon8888, good boy, : )

0.40 still can make profit, jeffrey, last call, money fron the sky, :)

if profit above 500 million, 2morow opening 0.45 is possible, : )