jiml1126
Aug 16, 03, 5:10 pm
Saw this post from China's aviation board.
Ryanair venture 'not necessarily a threat
The mooted establishment of a low-cost airline in Macau led by Tony Ryan, the founder of Europe's wildly successful no-frills carrier Ryanair, should give a huge boost to the former Portuguese enclave's aspiration to become East Asia's gambling and tourism mecca. And despite fears that a nascent Macau would detract from Hong Kong's draw as a tourism destination and travel hub, industry analysts said the impact may not necessarily be overly negative.
"It's a question of the tourism pie getting even bigger with Macau's development," said Jinglin Wang, BNP Paribas Peregrine aviation analyst.
On Thursday, sources close to China National Aviation Co (CNAC) and Air Macau - in which it has a majority stake - confirmed that talks with the Ryan family investment vehicle, Irlandia Investments, had been going on since early June and could help to create one of Asia's first low-cost, no-frills international airlines.
Its primary focus would, however, likely be on carrying travellers to Macau's new casinos,
Ms Wang acknowledged it was "mixed news" for the established Asian airlines because they would face tough competition.
JP Morgan analyst Peter Negline said in a report he feared the Ryanair venture could cost Cathay Pacific as much as $1.5 billion in lost revenue if Taiwanese chose to fly Air Macau rather than go via Hong Kong en route to the mainland.
But others downplayed the fears, saying that there was room for both Air Macau and the two Hong Kong carriers, Cathay and Dragonair, to prosper as Macau's growing gaming and entertainment industry matured.
GCW Consulting president Mo Garfinkle, originally hired by Irlandia to vet Macau as a potential investment locale, said: "The region is big enough for . . . [all] of them."
Ryanair venture 'not necessarily a threat
The mooted establishment of a low-cost airline in Macau led by Tony Ryan, the founder of Europe's wildly successful no-frills carrier Ryanair, should give a huge boost to the former Portuguese enclave's aspiration to become East Asia's gambling and tourism mecca. And despite fears that a nascent Macau would detract from Hong Kong's draw as a tourism destination and travel hub, industry analysts said the impact may not necessarily be overly negative.
"It's a question of the tourism pie getting even bigger with Macau's development," said Jinglin Wang, BNP Paribas Peregrine aviation analyst.
On Thursday, sources close to China National Aviation Co (CNAC) and Air Macau - in which it has a majority stake - confirmed that talks with the Ryan family investment vehicle, Irlandia Investments, had been going on since early June and could help to create one of Asia's first low-cost, no-frills international airlines.
Its primary focus would, however, likely be on carrying travellers to Macau's new casinos,
Ms Wang acknowledged it was "mixed news" for the established Asian airlines because they would face tough competition.
JP Morgan analyst Peter Negline said in a report he feared the Ryanair venture could cost Cathay Pacific as much as $1.5 billion in lost revenue if Taiwanese chose to fly Air Macau rather than go via Hong Kong en route to the mainland.
But others downplayed the fears, saying that there was room for both Air Macau and the two Hong Kong carriers, Cathay and Dragonair, to prosper as Macau's growing gaming and entertainment industry matured.
GCW Consulting president Mo Garfinkle, originally hired by Irlandia to vet Macau as a potential investment locale, said: "The region is big enough for . . . [all] of them."