Air NZ more than doubled first-half profit and said it expects full-year earnings to surge at least 70% as lower fuel prices and growing passenger numbers boost revenue. Net income jumped 154% to NZ$338m (US$225m) in the 6 months to Dec 31, the airline said Thursday. Pre-tax earnings climbed to $457m. The airline increased its first-half dividend to 10 cents per share from 6.5 cents. Air NZ is in expansion mode, adding international destinations in the Pacific Rim, Asia and the Americas and also increasing capacity domestically. The airline is targeting full-year pre-tax earnings of more than $800m from $474m a year earlier, it said Wednesday. First-half passenger revenue jumped 16% to $2.3b, driven by increased capacity and strong demand, while operating revenue rose 12% to $2.7b. <br/>
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South Africa will explore merging 2 state-owned airlines, South African Airways and SA Express, and seek a minority equity partner for the company. "We do not need to be invested in 4 airline businesses," finance minister Pravin Gordhan said in his budget speech. "(Public enterprises minister) and I have agreed to explore the possible merger of SAA and SA Express, under a strengthened board, with a view to engaging with a potential minority equity partner, and to create a bigger and more operationally efficient airline." Treasury said the financial position of SAA has deteriorated and in the event of a default, the govt would likely be called to pay a portion of its guarantee to the airline, which stands at about US$939.3m. <br/>
A proposal for THAI to buy a 20% stake in Thai AirAsia (TAA) has raised a few eyebrows amid questions over whether the deal would bring any benefit to THAI. Veteran airline executives and industry analysts have described deputy prime minister Somkid Jatusripitak's suggestion as odd and incomprehensible. Several critical questions have emerged about the brainchild, such as whether THAI really needs to acquire shares of the Thai arm of AirAsia in order to achieve the objective Somkid floated at a Feb 17 meeting held to promote Thai tourism. First, THAI, along with its 2 sister carriers -- fully owned THAI Smile and Nok Air, in which THAI has a 39% stake -- has far more extensive networks and flights relative to TAA. In fact, THAI's affiliated carriers already cover, with few exceptions, cities that TAA serves in the region. <br/>