The decision by Qantas to add a significant amount of international capacity appears to have paid off in the peak travel month of January, in a move that could help allay some lingering market concerns over whether the division is growing too fast. The airline's January traffic statistics show the carrier lifted international capacity 10.3% - a greater growth rate than the 6.5% rise in the first half of the financial year - but still managed to increase the percentage of seats filled and revenue per available seat kilometre. Qantas said there was strong inbound demand and steady outbound demand meeting increased capacity on routes including in Asia and the US that helped it fill 85.3% of seats during the peak travel period. Overall, Qantas has forecast it will boost international capacity by 9% in the current half. <br/>
oneworld
An organisation of relatives of passengers and crew members who were aboard Malaysia Airlines Flight 370 when it vanished nearly 2 years ago has accused the Malaysian govt of legal manoeuvring that could deny them compensation from the airline. With the approach of a March 8 deadline for filing suit against the airline — the second anniversary of the ill-fated flight — some family members and lawyers contend that Malaysia’s recent restructuring of the struggling national carrier could leave it without sufficient assets to compensate them. “The govt is trying to protect one of its businesses instead of allowing its citizens access to justice,” said a lawyer who represents Voice 370, a support group for family members of passengers and crew members. <br/>
IAG reported a 65% rise in annual profit at E2.3b and said for 2016 it expected a further profit increase as it benefits from lower fuel costs. The group forecast a more than E900m (US$991m) or 40% profit rise this year as CE Willie Walsh said he planned to steer the group towards further growth. IAG will this year benefit from lower fuel prices, a long-term strategy of reducing costs and growing demand for travel. But the company faces uncertainty in the shape of volatile currencies, Britain's June vote on leaving the EU, and pressure on ticket prices from increased competition in Europe and on transatlantic routes. Walsh said IAG was well positioned to grow in spite of those headwinds. "Clearly it will be a challenging environment but the good news is that we're very confident in terms of our performance," Walsh said. <br/>
London City Airport’s sale to a Canadian-led group of investors at a steep premium received a cool reception from both its biggest user. Willie Walsh, CE of IAG, said Friday that a deal could wipe out already-thin margins. “We’re not going to be in a position where a new owner can just jack up prices and we’ll continue to do what we’ve done historically,” Walsh said. “If they do increase charges we will carry out our strategy and reduce capacity. If the routes to London City are not profitable, then we won’t go there.” While London City has increased its passenger tally by 50% in 5 years and is the closest terminal to the London’s financial centre, it’s a fraction the size of Britain’s leading hubs, faces opposition from leading politicians and is limited in its growth prospects by a runway that can’t take full-size jets. <br/>