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LSCMS Blog

Blog for updates and happenings in logistics in the Asia-Pacific region

July 31, 2011

Qantas targets Affluent Asian Travellers

Filed under: Newsletter — admin @ 1:23 pm

Qantas CEO Alan Joyce said at the recent Aviation Outlook Conference in Sydney that the company is now embarking on some important changes in order to capture a niche in the rapidly growing Asian markets.

“Jetstar’s enormous growth pointed the way to how Qantas – or a Qantas-owned, Asian-based carrier – could tap into the Asian market for business and mid and upper-market travellers.

“We have enormous opportunity to leverage Qantas excellence in brand management, aviation safety and other skills,” Mr Joyce said.

The increasing incomes of Asians particularly in China and India has prompted airline companies like Qantas to cater to their needs. “Research on affluent Chinese travellers, for example, shows they are strongly influenced by prestige brands and considerations of safety,” he noted.

Mr. Joyce also addressed the company’s pilots and engineers, with whom the management has an ongoing dispute over salaries and benefits.
He said Qantas was competing against airlines with overheads up to 25 percent lower.

He clarified a demand by the pilots to extend their pay and conditions to Jetstar flights with a Qantas codeshare could not happen.

“To pay Qantas rates to Jetstar pilots would simply drive up ticket prices, set precedents for other staff salaries and make Jetstar unviable,” he said.

And he said Qantas maintenance and repair costs were “among the least efficient and most expensive in the world”.

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American Airlines order 460 new aircraft

Filed under: Newsletter — admin @ 1:22 pm

American Airlines has signed one of the largest aircraft orders in history with Boeing and Airbus.

The fourth largest airline in the world by passenger numbers is planning to have the youngest fleet in the world within the next five years.

As part of this ambitious plan, the airline is completely overhauling its domestic airliners and has ordered 200 Boeing 737s and 260 Airbus A320 aircraft.

Parent company AMR Corporation said that the new single-aisle planes would “transform” American’s fleet during their delivery dates, which are rolled out over a period from 2013 to 2022.

The new planes will hold around 200 passengers and are classified as short to medium range airliners, but AMR chairman Gerard Arpey said that the new planes would significantly reduce American’s fuel costs and give the airline greater financial flexibility.

According to Boeing, American Airlines also has an option for the purchase of a further 100 aircraft, although it is unclear whether the airline will exercise that option.

The financial details of the twin deals have not been released, but its total value to both aircraft manufacturers is expected to be several billion dollars.

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LSCMS endorses SCMLogistics World 2011

Filed under: Newsletter — admin @ 1:22 pm

LSCMS has participated in SCM Logistics World since its inception and this year is no different. Understanding how to operate differently and profitably, in this time of complex operations, may well prove to be the very knowledge that will give you the competitive edge and we believe that events such as this will help Logisticians do this.

SCM Logistics World 2011 – Asia’s No. 1 supply chain and logistics conference will provide you insights and tools to achieve sustainability, technology, customer-centricity and performance in your supply chain.

Apart from focusing on the supply chain strategies within the High-Tech, Retail & CPG, Chemical, Oil & Gas, and Automotive & Heavy Manufacturing verticals, the conference also breaks out to examine entry barriers and infrastructural challenges of key markets such as ASEAN, China, India and Northeast Asia.

Four Different Industry tracks, 4 Different Supply Chain Strategy tracks and 4 Different Country Focus tracks all happening at theSAME TIME. Attractive group booking discounts are available. So bring along your team to maximise the learning.

Contact Aaron at +65 6746 2250 or email him at aaron@lscms.org for more information.

As LSCMS is an Endorsing Association for SCM Logistics World 2011, members qualify for a 30% discount off registration tickets.

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New Format Logistician

Filed under: Newsletter — admin @ 1:21 pm

The Logistics & Supply Chain Management Society’s, newsletter The Logistician is one of the oldest Logistics and Supply Chain related newsletters in Asia.

We have recently upgraded and revamped the format of this newsletter and it will now be available in HTML format to all subscribers. Aside from news about the Society and the industry in general, members are also encouraged to send us information about their companies for inclusion.

Companies and HR recruiters are also encouraged to send in job postings to us to reach out to our more than 27,000 readers across the region. For more information on the newsletter or any of our activities, please contact the Secretariat at elee@lscms.org.

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Rate your 3PL Provider

Filed under: Newsletter — admin @ 1:20 pm

Supply chain market research and consulting firm Armstrong & Associates has released an online survey that allows shippers to rate and provide insights on the service and performance of their 3PL. Readers can access this survey at www.3PLAdvisor.com.

This free service is anonymous and not only benefits 3PL’s but 3PL customers as well.

Once a review is submitted, it will be reviewed by 3PL Advisor personnel to ensure a 3PL is not submitting a review on another 3PL. When the review is approved, it will be posted at 3PL Advisor and the 3PL will receive an automatic email announcing that they have a new review. The email to the 3PL will include a link to the review and the 3PL will have an opportunity to write a response.

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Regional logistics companies to reap rewards of changing supply chain dynamics

Filed under: Logistics,Newsletter — admin @ 12:42 pm

One senior executive with a medium-sized forwarding company based in Hong Kong told The Container Shipping Manager in a recent interview that a growing number of multinational corporations (MNCs) are looking for regional solutions today rather than one big global supply chain solution.

The move is in keeping with a wider trend of management decentralisation that has even been taking place within some of the global transport solutions providers.

Global clothing and fashion retailers, like Marks & Spenser, have reportedly been doing the same, according to the report, which also said that regional freight forwarders and logistics companies are being seen as an increasingly attractive option for major multinational retailers, thanks to an apparent change in the way these global corporations are managing their supply chains.

The forwarding executive interviewed said, “I believe that the thinking now is that you cannot just have one service provider offering the same kind of service all over the world, because nobody offers the same level of service all over the world. One company may be strong in one area, while another is strong elsewhere.

“It’s no longer about finding one solution to provide services everywhere, it about finding the best in each region. I definitely see this as a trend,” he added.

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