Business
The Battle Heats Up for Budget Airlines in Thailand
AirAsia will play a leading role in the Thai market
BANGKOK – The approach of the ASEAN Economic Community (AEC) in a couple of years is meaningful for the aviation industry in Thailand, especially low-cost carriers, which are flocking here to cash in on the business opportunities from the anticipated tourism boom, resulting in greater competition.
Given the country’s strategic location as a connectivity base, Thailand is becoming a battleground for aviation players.
At present, there are about 24 low-cost carriers flying regionally, including four based in Thailand – Thai AirAsia, Nok Air, Orient Thai, and Solar Air.
At present, there are about 24 low-cost carriers flying regionally, including four based in Thailand – Thai AirAsia, Nok Air, Orient Thai, and Solar Air.Some others operate a few flights to Bangkok, such as Tiger Airways and Jetstar Asia Airways from Singapore, Mandala Airlines and Lion Air from Indonesia, and South East Asia Airlines (SEAir) and Cebu Pacific Air from the Philippines. In the early stages, they launched service in their homelands, but lately have started spreading their wings regionally.
“Not only low-cost but more full-serviced carriers will be flying in here when the AEC opens,” Udom Tantiprasongchai, chairman of the advisory board of Orient Thai.
“Thailand is very lucky to have a good geographical position as a regional centre for the aviation industry. Unfortunately, Thai operators will be forced to face stiffer competition and will find it even harder to stay in business.”
From now on, Udom said, the market would be more dynamic. Operators will find it more and more difficult to stay on, especially those that lack funding and strategic thinking to cope with the fast-changing business environment.
AirAsia will play a leading role in the Thai market.
The recent visit to Bangkok by Tony Fernandes, the airline’s founder and chief executive, to meet with Prime Minister Yingluck Shinawatra underscored this. He sought her support for the airline’s rising role in the Thai market by using the country as a hub.
An analyst who declined to be named said political connections were one of the keys to doing business regionally if companies wanted to secure a foothold in each country.
The recent visit to Bangkok by Tony Fernandes, the airline’s founder and chief executive, to meet with Prime Minister Yingluck ShinawatraAirAsia, founded in 2001, has become Asia’s biggest low-cost carrier.
It has established a business foundation throughout the region, with 118 aircraft in its fleet at present and a further 357 on order.
The analyst said it was apparent that the carrier would have a big influence on the regional skies, including Thailand. It could outperform Thai Airways International, the national carrier, within five years.
Udom said: “The success of AirAsia today is [based on the fact] that it has deep pockets and [is led by] the visionary Fernandes. He is smart at doing business.”
Executives in the industry say AirAsia also prospers because of its business flexibility. It makes decisions quickly, especially when it recognizes that part of its business is failing. It keeps its overall operation strong by cutting off poorly performing services.
In contrast, THAI as a state enterprise is bureaucratic, takes a long time to find solutions to problems or launch new routes. Sometimes, by the time it acts, it is too late.
There is no doubt THAI has gradually seen its market share snatched away by low-cost carriers, especially in the regional market.
The trend is clear that passengers are looking for affordable flights. They do not mind flying two or three hours with a low-cost carrier even if no food or drinks are served on board.
Fernandes told the media last year in Jakarta that he intended the AirAsia brand to be as well known as Coca-Cola. Its rapid expansion may help fulfil his ambition, and THAI may feel the pinch. Although THAI has a 49-per-cent stake in low-cost carrier Nok Air, that may not be enough to protect its market share from AirAsia’s expansion.
Nok Air’s vice president for sales and marketing, acknowledged that AirAsia was playing a bigger role here, but believed its pricing strategy had not forced Nok Air into a cornerThis reality is underscored by the size of AirAsia’s fleet. Nok Air has 16 aircraft, while Thai AirAsia will have 34 by the end of this year. Yet both were formed around the same time, nine years ago.
Also, Thai AirAsia operates 174 daily flights from Don Mueang International Airport, against just 84 by Nok Air.
By 2015, Thai AirAsia plans to have 46 aircraft. Although Nok Air also plans to acquire new planes, they are to replace old ones, leaving the total number unchanged.
Beyond AirAsia, analysts argue that Tiger Airways, partly owned by Singapore Airlines, is in a strong position.
Currently, it holds stakes in Mandala Airlines and SEAir, which will strengthen its route coverage in the region.
Previously, Tiger planned to set up a low-cost carrier in cooperation with THAI, but the idea fell through when it failed to win approval from the Thai government.
Meanwhile, Thai AirAsia has adopted more aggressive marketing from season to season, especially low-priced strategy. It has lured a growing number of people to use the service.
Pinyot Pibulsonggram, Nok Air’s vice president for sales and marketing, acknowledged that AirAsia was playing a bigger role here, but believed its pricing strategy had not forced Nok Air into a corner.
The airline has room for growth by positioning itself as a ”premium low cost” carrier, offering some drinks and snacks for passengers. “Price is the first thing that passengers take a look at, but it is not the final reason they make a decision to buy,” he said.
People have welcomed the arrival of more low-cost carriers, although they are foreign. They enjoy the broader travel options. The more low-cost carriers there are, the cheaper the tickets will be. Service charges such as for baggage will also be eased, forced by competition.
So the battle for the skies is getting fiercer. Weak operators will be forced out of business.
Business
PepsiCo Reduces Revenue Projections As North American Snacks And Key International Markets Underperform.
(VOR News) – In the third quarter of this year, Pepsi’s net income was $2.93 billion, which is equivalent to $2.13 per share. This was attributed to the company.
This is in stark contrast to net income of $3.09 billion, which is equivalent to $2.24 per share, during the same period in the previous year. The company’s earnings per share were $2.31 when expenses were excluded.
Net sales decreased by 0.6%, totaling $23.32 billion. Organic sales increased by 1.3% during the quarter when the effects of acquisitions, divestitures, and currency changes are excluded.
Pepsi’s beverage sales fell this quarter.
The most recent report indicates that the beverage and food sectors of the organization experienced a 2% decline in volume. Consumers of all income levels are demonstrating a change in their purchasing habits, as indicated by CEOs’ statements from the previous quarter.
Pepsi’s entire volume was adversely affected by the lackluster demand they encountered in North America. An increasing number of Americans are becoming more frugal, reducing the number of snacks they ingest, and reducing the number of times they purchase at convenience stores.
Furthermore, Laguarta observed that the increase in sales was partially attributed to the election that occurred in Mexico during the month of June.
The most significant decrease in volume was experienced by Quaker Foods North America, which was 13%. In December, the company announced its initial recall in response to a potential salmonella infection.
Due to the probability of an illness, the recall was extended in January. Pepsi officially closed a plant that was implicated in the recalls in June, despite the fact that manufacturing had already been halted.
Jamie Caulfield, the Chief Financial Officer of Pepsi and Laguarta, has indicated that the recalls are beginning to have a lessening effect.
Frito-Lay experienced a 1.5% decline in volume in North America. The company has been striving to improve the value it offers to consumers and the accessibility of its snack line, which includes SunChips, Cheetos, and Stacy’s pita chips, in the retail establishments where it is sold.
Despite the fact that the category as a whole has slowed down in comparison to the results of previous years, the level of activity within the division is progressively increasing.
Pepsi executives issued a statement in which they stated that “Salty and savory snacks have underperformed year-to-date after outperforming packaged food categories in previous years.”
Pepsi will spend more on Doritos and Tostitos in the fall and winter before football season.
The company is currently promoting incentive packets for Tostitos and Ruffles, which contain twenty percent more chips than the standard package.
Pepsi is expanding its product line in order to more effectively target individuals who are health-conscious. The business announced its intention to acquire Siete Foods for a total of $1.2 billion approximately one week ago. The restaurant serves Mexican-American cuisine, which is typically modified to meet the dietary needs of a diverse clientele.
The beverage segment of Pepsi in North America experienced a three percent decrease in volume. Despite the fact that the demand for energy drinks, such as Pepsi’s Rockstar, has decreased as a result of consumers visiting convenience stores, the sales of well-known brands such as Gatorade and Pepsi have seen an increase throughout the quarter.
Laguarta expressed his opinion to the analysts during the company’s conference call, asserting, “I am of the opinion that it is a component of the economic cycle that we are currently experiencing, and that it will reverse itself in the future, once consumers feel better.”
Additionally, it has been noted that the food and beverage markets of South Asia, the Middle East, Latin America, and Africa have experienced a decline in sales volume. The company cut its forecast for organic revenue for the entire year on Tuesday due to the business’s second consecutive quarter of lower-than-anticipated sales.
The company’s performance during the quarter was adversely affected by the Quaker Foods North America recalls, the decrease in demand in the United States, and the interruptions that occurred in specific international markets, as per the statements made by Chief Executive Officer Ramon Laguarta.
Pepsi has revised its forecast for organic sales in 2024, shifting from a 4% growth rate to a low single-digit growth rate. The company reiterated its expectation that the core constant currency profitability per share will increase by a minimum of 8% in comparison to the previous year.
The company’s shares declined by less than one percent during premarket trading. The following discrepancies between the company’s report and the projections of Wall Street were identified by LSEG in a survey of analysts:
SOURCE: CNBC
SEE ALSO:
Old National Bank And Infosys Broaden Their Strategic Partnership.
Business
Old National Bank And Infosys Broaden Their Strategic Partnership.
(VOR News) – Old National Bank, a commercial bank with its headquarters in the Midwest, and Infosys, a firm that specializes in information technology, have recently entered into a strategic expansion of their link, which has been in place for the past four years.
This expansion is more likely to take place sooner rather than later, with the likelihood being higher.
For the purpose of making it possible for Old National Bank to make use of the services, solutions, and platforms that are offered by Infosys, the objective of this expansion is to make it possible for the bank to transform its operations and processes through the application of automation and GenAI, as well as to change significant business areas.
This lets the bank leverage Infosys’ services, solutions, and platforms.
Old National Bank Chairman and CEO Jim Ryan said, “At Old National, we are committed to creating exceptional experiences for both our customers and our fellow employees.”
This statement is applicable to Old National Bank. Infosys is carefully managing the business process innovations that it is putting us through, putting a strong emphasis on efficiency and value growth throughout the process to ensure that it is carried out efficiently.
This is a routine occurrence throughout the entire operation. Because of Infosys’ dedication to our development and success, we are incredibly appreciative of the assistance they have provided.
Old National has been receiving assistance from Infosys in the process of updating its digital environment since the year 2020, according to the aforementioned company.
Ever since that time, the company has been providing assistance. The provision of this assistance has been accomplished through the utilization of a model that is not only powerful but also capable of functioning on its own power.
Infosys currently ranks Old National thirty-first out of the top thirty US banks.
This ranking is based on the fact that Old National is the nation’s largest banking corporation.
It is estimated that the total value of the company’s assets is approximately fifty-three billion dollars, while the assets that are currently being managed by the organization are valued at thirty billion dollars.
Dennis Gada, the Executive Vice President and Global Head of Banking and Financial Services, stated that “Old National Bank and Infosys possess a robust cultural and strategic alignment in the development, management, and enhancement of enterprise-scale solutions to transform the bank’s operations and facilitate growth.”
This remark referenced the exceptional cultural and strategic synergy between the two organizations. Dennis Gada is the one who asserted this claim. This was articulated explicitly concerning the exceptional cultural congruence and strategy alignment of the two organizations.
We are pleased to announce that the implementation of Infosys Topaz will substantially expedite the transformation of Old National Bank’s business processes and customer service protocols. We are exceedingly enthusiastic about this matter. We are quite thrilled about this specific component of the scenario.
Medium-sized banks operating regionally will continue to benefit from our substantial expertise in the sector, technology, and operations. This specific market segment of Infosys will persist in benefiting from our extensive experience. This phenomenon will enable this market sector to sustain substantial growth and efficiency benefits.
SOURCE: THBL
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American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack
States Sue TikTok, Claiming Its Platform Is Addictive And Harms The Mental Health Of Children
Qantas Airways Apologizes After R-Rated Film Reportedly Airs On Every Screen During Flight
Business
American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack
The largest regulated water and wastewater utility company in the United States stated Monday that it had been the target of a cyberattack, forcing the company to halt invoicing to consumers.
American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack
American Water, based in New Jersey and serving over 14 million people in 14 states and 18 military facilities, said it learned of the unauthorized activity on Thursday and quickly took precautions, including shutting down certain systems. The business does not believe the attack had an impact on its facilities or operations and said employees were working “around the clock” to determine the origin and scale of the attack.
According to their website, American Water operates over 500 water and wastewater systems in around 1,700 communities across California, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Maryland, Missouri, New Jersey, Pennsylvania, Tennessee, Virginia, and West Virginia.
SOURCE | AP
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