High fuel costs impact on TurboJet’s half-year results
In it’s latest half-year report on the performance of its TurboJet subsidary, Shun Tak Holdings reveals, “Macau’s tourism expanded remarkably over the firts half of 2011 which led to a 9% recovery in passenger volume for TurboJet as compared with the same period last year. Nonetheless, high fuel prices continued to impose significant pressure on its operation, inducing an operating loss of HK$59 million.”
There have been significant developments on the Hong Kong-Macau and Tsim Sha Tsui-MAcau routes since the end of the half-year period however. In july, the first increase in fares for seven years came into effect. The following month, Shun Tak-China Travel Shipping investments agreed to acquire New World First Ferry Services (Macau) and in September Macao Dragon ceased trading, reducing the number of companies ferries on the routes from four to two.
Commenting on the changes, Shun Tak Holding managing director Pansy Ho said, “The Macau SAR Governement approved a fare increment granting a 10% - 13% increase for Economy class tickets and a 24% increase in Higher classes. As a result, the division expects to see improvements in its bottom lime over the second half of the year.”
“In August, Shun Tak-China Travel Shipping Investments entered into a sales an purchase agreement with New World First Holdings to acquire seven catamarans and operation concessions granted by the Macau SAR Government. Consideration of the transaction was HK$350 million, subject to adjusment. Upon completion of the acquisition, the Group will be able to strengthen its operational capacity and capitalize upon opportunities as Macau transforms into a truly global destination, as well as expand its network to capture increased travel demand resulting from economic integration across the Pearl River Delta region.
”Increased passenger volume on our ferries, the fare increment appoved by the Macau SAR Government and the acquisition of First Ferry Macau will contribue to higher income and lower operating costs.”
Figures released by the Hong Kong Marine Department confirm that Hong Kong-Macau traffic continues to reach record levels. During January-June 2011, services carried 9,860,000 passengers, an increase of 3,9% on the total for the corresponding period of 2010.