Latest news with #ShukorYusof
South China Morning Post
04-08-2025
- Business
- South China Morning Post
Jetstar Asia's exit spotlights Asia's budget airline squeeze
Jetstar Asia's recent closure highlights the need for budget carriers in Asia to rethink their fare strategies, with analysts warning that the industry is expected to continue facing pressure on its profit margins due to economic volatility, rising costs and intense competition. The Singapore-based subsidiary of Qantas was the latest casualty in a sector already squeezed by high fuel prices and supply chain bottlenecks. Its exit leaves the Singapore Airlines Group as the city-state's sole entity operating domestic carriers. 'I expect all airlines to reconfigure their fare offerings in the coming months and years. The more unstable the world economy becomes, the worse it will be for airlines,' said Shukor Yusof, founder of Singapore-based Endau Analytics, an aviation industry consultancy and research firm. Budget airlines operate on relatively low profit margins, often in the range of one per cent to two per cent, compared with the broader airline industry, which may average around three per cent to four per cent. While they aim for high passenger volume and cost efficiencies to offset this, they remain vulnerable to economic fluctuations and intense competition, according to aviation analysts. 'Budget airlines find it harder to keep costs down today because the price of money has gone up. Expenses are typically denominated in US dollars but many regional low-cost carriers earn in local currencies, which have weakened versus the greenback,' Yusof said. 'In places such as Hong Kong and Singapore, the high cost of doing business is another factor,' he added.
New Straits Times
29-07-2025
- Business
- New Straits Times
Boeing monitoring US tariff plan as analyst weigh impact on Malaysia
KUALA LUMPUR: American aircraft manufacturer The Boeing Company is keeping a close eye on Washington's proposed 25 per cent tariff on Malaysian imports as industry stakeholders warn of serious consequences for the local aerospace sector if the duties are imposed. Boeing's spokesperson told Business Times that the company is actively engaging with relevant authorities to mitigate the impacts of the proposed new tariff on the global aviation system. "We are closely tracking tariff developments and are working with policymakers to mitigate impacts of the global aviation system," the spokesperson said when inquired recently. The proposed tariff, part of President Donald Trump's broader 'America First' trade agenda includes a blanket 10 per cent tariff on all imports, with higher rates of over 100 per cent for goods from China, and a targeted 25 per cent tariff on selected countries, including Malaysia. The tariff on Malaysia was increased by one per cent from 24 per cent when it was announced earlier this year. One of the companies that may potentially be affected with the new tariff, should it be implemented, is Boeing Composites Malaysia (BCM) in Kedah. BCM produces composite parts such as aileron skins, flat panels and trailing edges for Boeing commercial aircraft models including the 737, 777 and 787 Dreamliner. The factory, which is Boeing's first wholly-owned subsidiary in Southeast Asia, has been a cornerstone of Boeing's sourcing strategy in the region. The factory employs over 1000 Malaysians and contributes to the development of local talents in advanced manufacturing and aerospace engineering. Aviation consultancy Endau Analytics founder and aviation analyst Shukor Yusof said there is still time for Malaysia to renegotiate with the US on the tariff. He believes that Boeing has a contingency plans in place should the tariff is imposed. "Tariffs have yet to take place, there's time to negotiate and make a deal. Boeing is a big contributor to the US economy and it is unlikely that Washington would cut off its nose to spite its face. "That said, I'm sure Boeing would have put into place a game plan to prepare for any eventuality," he told Business Times recently. Boeing global president Dr Brendan Nelson told Business Times in an exclusive interview in March this year that Malaysia continued to be an integral part of Boeing's operations, particularly through BCM. "Malaysia is not just a customer for us, it's a trusted partner. Our BCM factory in Kedah is one of the best examples of how we are investing in the local economy and workforce," he said, adding that there is a little piece of Malaysia in every single Boeing airplanes. Meanwhile, Shukor warned that Malaysia's aviation sector could face a grim outlook if the new tariff on the country is imposed without exemptions for aerospace components. "The impact will be costly, in terms of declining productivity and job losses. This is why the Investment, Trade and Industry MInistry and those involved in the dealing with the US administration need to consider all aspects of the equation," he said. Despite the possibility of a grim aerospace outlook, Shukor said it is unlikely that Boeing and other aerospace original equipment manufacturers would shift their manufacturing activities away from Malaysia. "No. These are long-term investments. BCM has been around since 1998, much have been ploughed into it and any shift (if at all) will take a long gestation period before it becomes a reality. And it will be very expensive," he said. Shukor added that Malaysia still holds strong advantages for aerospace investment due to the country's location, ease of doing business and low costs. Boeing's rival European plane-maker Airbus SE is already exploring its wings in Sarawak, Shukor said while Invest Selangor Bhd has done a good job bringing aviation investments into the state. On 16 July, Boeing opened a new corporate office in Kuala Lumpur, reaffirming its long-term commitment to Malaysia's aerospace ambitions under the Aerospace Industry Blueprint 2030. Boeing's relationship with Malaysia stretches back over 70 years, beginning in 1947 when Malayan Airways Ltd acquired its first Douglas DC-3 aircraft. Since then, the American aerospace giant has played a crucial role in Malaysia's aerospace development from commercial aviation and defence to education and community development. Local airlines that are operating Boeing airplanes include Malaysia Airlines Bhd, Firefly Sdn Bhd and Batik Air Sdn Bhd.
CNA
09-07-2025
- Business
- CNA
CNA938 Rewind - What could SIA gain from a joint venture with Malaysia Airlines?
CNA938 Rewind - What could SIA gain from a joint venture with Malaysia Airlines? The joint venture (JV) between Singapore Airlines (SIA) and Malaysia Airlines will see the two airlines working together on scheduling, pricing, sales and marketing, including expanded codesharing of flights, among other things, on routes between Singapore and Malaysia. Andrea Heng and Hairianto Diman chat with Shukor Yusof, Analyst & Founder at Endau Analytics Pte Ltd to look at how this JV will benefit both airlines, and the impact on their bottom line.
CNA
09-07-2025
- Business
- CNA
CNA938 Rewind - Stock take today: Trump tariff blitz continues, markets muted
CNA938 Rewind - What could SIA gain from a joint venture with Malaysia Airlines? The joint venture (JV) between Singapore Airlines (SIA) and Malaysia Airlines will see the two airlines working together on scheduling, pricing, sales and marketing, including expanded codesharing of flights, among other things, on routes between Singapore and Malaysia. Andrea Heng and Hairianto Diman chat with Shukor Yusof, Analyst & Founder at Endau Analytics Pte Ltd to look at how this JV will benefit both airlines, and the impact on their bottom line.
Straits Times
23-06-2025
- Business
- Straits Times
KLIA aerotrain relaunch marks step toward restoring airport reputation
– A two-minute, driverless train service at Malaysia's Kuala Lumpur International Airport (KLIA) linking its main terminal to a satellite complex for international flights will resume operations July 1 after a nearly 2 1/2 year wait, as the country hopes to put the embarrassing episode in the rear-view mirror. The news comes as a relief for international passengers who have had to rely on shuttle buses for the 1.3-km connection, and will help repair the airport's battered reputation. But industry observers and analysts say the aerotrain service is just one of several issues that Malaysia's main airline gateway must address to improve its facilities and enhance its image, even as the global travel industry continues its post-pandemic recovery . The aerotrain service was suspended after breaking down in February 2023, forcing 114 passengers to walk along the rail track at the halfway mark between the two terminals. The main KLIA Terminal 1 houses immigration counters and is used mainly for domestic flights, while international airlines use the satellite complex. A second airline terminal called KLIA Terminal 2, located less than 2km away, is used by budget airlines. The much-anticipated resumption of the sole internal train service at the airport comes at a critical time for Malaysia, which is the chair for regional grouping Asean in 2025, and is set to host Visit Malaysia Year in 2026. The number of passengers travelling through KLIA rose 21 per cent to 57.1 million in 2024, including 41.9 million international passengers, according to global aviation and travel data services provider Centre for Aviation. The airport, which opened in 1998, had in the past been ranked among the world's top 10 airports – in 2001, 2010, 2011 and 2012 – but has slid down the list ever since. Most recently, KLIA came in at 65th place in Skytrax's World Airport Awards, trailing Singapore's Changi Airport (No. 1), Qatar's Hamad International Airport (No. 2) and Tokyo's Haneda Airport (No. 3). The awards were based on a global survey conducted by London-based aviation consultancy Skytrax. Over 13 million airport users from more than 100 countries responded to the survey from August 2024 to February 2025. A more efficient system overall including seamless passenger experience such as smooth inter-terminal transfers, biometric boarding, and faster baggage handling, is essential for KLIA to rebuild trust among travellers and remain competitive, analysts say. Analyst Shukor Yusof, founder of Singapore-based aviation advisory firm Endau Analytics, told The Straits Times: 'KLIA was never a highly regarded international airport to begin with. The (aerotrain) suspension only served to highlight the airport's sloppy and shabby management and operations.' The aerotrain service breakdown in 2023 breakdown damaged KLIA's image as a world-class airport, said Mr Wan Agyl Wan Hassan, analyst and founder of transport think tank MY Mobility Vision. 'Passengers walking along the track after a breakdown is not the image we want to project to the world,' he told ST. The stopgap measure , deploying shuttle buses to ferry travellers between the two KLIA buildings, is 'slower, less predictable, and more stressful for passengers,' he added. Transport Minister Anthony Loke, speaking at a press conference at KLIA on June 21, said the current shuttle bus system will operate concurrently to facilitate better passenger movement 'to ensure all passenger movement at KLIA runs smoothly.' 'If everything goes well, it (aerotrain service) will begin operations at 10am on July 1,' he declared. Malaysian Transport Minister Anthony Loke (foreground) taking a test ride on KLIA's new aerotrain during a media preview on June 21. PHOTO: MALAYSIAN MINISTRY OF TRANSPORT Travellers who spoke to ST say they are looking forward to the resumption of the train service. 'With the aerotrain, it is easier... The bus can be inconvenient. I have to carry my bags up and down,' said corporate communications director A. Abdullah , 50, a Malaysian who travels frequently for work. Singaporean business consultant M. Selvaduray, 55, who travels to Malaysia around four times a year for work, said that taking the shuttle bus at KLIA is not a pleasant experience. ' When I arrive at Singapore's Changi Airport, I'm already at the arrival gate and then I go straight for (immigration) clearance. It's very fast. At KLIA, it's quite a distance to walk (to get to the shuttle buses) . It's not seamless. The signage is also unclear. For an international airport, I would expect more,' he told ST. Mr Loke said that there are currently three aerotrain sets, with two trains to run concurrently while one remains on standby. The new trains from China cost RM456 million (S$137 million), and each train can carry 270 passengers, from 230 previously. The replacement project has faced several delays, with all three deadlines previously given – July 2024, end-January 2025 and March 2025 – going unmet, according to the airport operator. The aerotrain replacement project had faced several delays, partly caused by the termination of the aerotrain contract with a previous contractor and the appointment of a new one. The project is now being handled by local company IJM, with subsidiaries of French transport player Alstom and Malaysian electrical power technology company Pestech International. Though KLIA's world rankings have slipped, there are some positive signs. The airport was rated the most connected low-cost carrier hub in Asia Pacific by global travel data firm Official Airline Guide in its 2024 Megahubs Index released in September that year . This shows that 'KLIA is already showing signs of resurgence ... with passenger numbers climbing and new routes opening up ,' said Mr Wan Agyl. 'To stay competitive, especially against airports like Changi or (Seoul's) Incheon, you need reliability and efficiency built into every passenger experience,' the analyst noted , adding that this includes better systems, faster baggage handling, and digital operations . The real test will be whether KLIA can sustain improvements and provide a consistently high level of service. 'This can be a moment to show the world KLIA is back on track, literally and figuratively. But it can't be a one-off. What KLIA needs now isn't just a good comeback story, but consistent, high-performance service to match its ambitions,' Mr Wan Agyl add ed . Hazlin Hassan is Malaysia correspondent at The Straits Times. Join ST's Telegram channel and get the latest breaking news delivered to you.
