BR Announces FY19 Results, Provides COVID-19 Business Update
May 10, 2020, 1:34 am
#1
Original Poster
Join Date: Aug 2016
Location: SFO
Programs: BR Diamond, Dynasty Flyer Paragon, Marriott Lifetime Plat
Posts: 1,926
BR Announces FY19 Results, Provides COVID-19 Business Update
Financial Highlights for FY19
Fleet Plans
Network Plans (Put on Hold due to COVID-19)
New Routes Planned for 2020:
COVID-19 Business Update
- Pax Revenue: +1.6% to NT100.6 Billion (3.3 Billion USD) Despite Strike (-18.5% in June/July YoY)
- Profit (Before Tax): NT 6.06 Billion (202 Million USD)
- EPS: NT 0.83
- Cash on Hand at end of FY19: NT 51 Billion (1.7 Billion USD)
Fleet Plans
- 5 78X to be received in FY20 (Airline already took one as of May)
- Air NZ lease extended one year; lease not expected to be extended again
- TPE is now at capacity, no space for new planes so 78X will shift to TSA in Dec2020 to replace A333
- A332 shifting down to KHH to enhance network
Network Plans (Put on Hold due to COVID-19)
New Routes Planned for 2020:
- KHH-HAN
- KHH-OKA
- TPE-BUS
- TPE-CRK
- TPE-MXP
- TPE-HKT
- KHH-NRT/KIX becomes A332
COVID-19 Business Update
- Airline does not expect demand to return until 2021
- 20 Billion dollar low-interest government loan taken from Bank of Taiwan
- Airline is preferring to cancel close-in to ensure the most profit/revenue is made in case there is sudden need for cargo/pax lift
- Airline substituting widebody onto traditional narrowbody routes (KUL, PNH, ICN, China etc.) to cope with cargo demand surge
- KUL flights upgraded to wide body to cope with medical supply surge out of Malaysia-USA/Canada
- Airline aggressively seeking cargo charter services (such as Project Airbridge of FEMA)
- Airline is not seeking any COVID-19 Repatriation flights from government due to the safety/health hazard and the required downtime for the fleet
- Fleet is currently in short-term storage at TPE, KHH, and TSA. Aircraft are receiving early heavy checks and upgrades during the downtime.
- EGAT continuing MRO business normally; business demand has surged
Last edited by hayzel7773; May 10, 2020 at 1:43 am
May 10, 2020, 3:49 am
#2
Join Date: Jul 2008
Location: Sydney, Australia
Programs: DL Gold, QF, VA, CI
Posts: 99
Other interesting points from the Annual Report:
- For the airline (excluding subsidiaries) - Operating margin - 13% / Profit margin - 4% (airlines are tough businesses to run!)
- Redesigned UX-focused passenger and cargo websites, with the passenger website 95% complete as of April
- The airline is in discussions with Thai Smile for codeshare opportunities
- Upgrades to inflight wifi using "High Throughput Satellite" for faster speeds
May 10, 2020, 8:41 pm
#3
Join Date: Nov 2017
Programs: AAdvantage
Posts: 86
Financial Highlights for FY19
Fleet Plans
Network Plans (Put on Hold due to COVID-19)
New Routes Planned for 2020:
COVID-19 Business Update
- Pax Revenue: +1.6% to NT100.6 Billion (3.3 Billion USD) Despite Strike (-18.5% in June/July YoY)
- Profit (Before Tax): NT 6.06 Billion (202 Million USD)
- EPS: NT 0.83
- Cash on Hand at end of FY19: NT 51 Billion (1.7 Billion USD)
Fleet Plans
- 5 78X to be received in FY20 (Airline already took one as of May)
- Air NZ lease extended one year; lease not expected to be extended again
- TPE is now at capacity, no space for new planes so 78X will shift to TSA in Dec2020 to replace A333
- A332 shifting down to KHH to enhance network
Network Plans (Put on Hold due to COVID-19)
New Routes Planned for 2020:
- KHH-HAN
- KHH-OKA
- TPE-BUS
- TPE-CRK
- TPE-MXP
- TPE-HKT
- KHH-NRT/KIX becomes A332
COVID-19 Business Update
- Airline does not expect demand to return until 2021
- 20 Billion dollar low-interest government loan taken from Bank of Taiwan
- Airline is preferring to cancel close-in to ensure the most profit/revenue is made in case there is sudden need for cargo/pax lift
- Airline substituting widebody onto traditional narrowbody routes (KUL, PNH, ICN, China etc.) to cope with cargo demand surge
- KUL flights upgraded to wide body to cope with medical supply surge out of Malaysia-USA/Canada
- Airline aggressively seeking cargo charter services (such as Project Airbridge of FEMA)
- Airline is not seeking any COVID-19 Repatriation flights from government due to the safety/health hazard and the required downtime for the fleet
- Fleet is currently in short-term storage at TPE, KHH, and TSA. Aircraft are receiving early heavy checks and upgrades during the downtime.
- EGAT continuing MRO business normally; business demand has surged
Sad time for aviation industry, I don't think any of the new routes BR is planning come to reality this year (or never will)