MarketLine Blog

Posts about Transport

Uber’s Aggression: Battering both competitors and customers into submission, with questionable business practices

MarketLine

Uber has had an astonishing journey. Even for the technology industry where businesses regularly explode into life, Uber’s success story stands almost unparalleled in speed and scope. Estimates of its value vary but some think $70bn could be a plausible valuation for the company, which would make it bigger than some of the very largest automotive manufacturers in the world. However Uber has become a master of some of the dark arts of business, using courts to get its way, avoiding regulation, removing competitors and encouraging a dog eat dog… Read more

Gig Employment: Not a smooth ride

MarketLine

The number of individuals defined as self-employed is growing aided by the latest trend of gig-employment. These self-employed individuals serve to increase competition between those seeking full time employment and those who prefer to work contract to contract. A recent change in the mindset of the gig-employment workers has caused a shift in working patterns with these workers now beginning to seek out full time employee status and the benefits which accompany this. Businesses which previously exploited these gig workers (e.g. Deliveroo and Uber) are now under scrutiny and face… Read more

2M Alliance: Hyundai Merchant Marine deal is not a long-term solution

MarketLine

The agreement with the 2M Alliance marks an important step for Hyundai Merchant Marine. Despite the deal not meeting creditor demands, Hyundai M.M will have access to better business conditions than is possible under the soon to be defunct G6 alliance. Full membership, once the present agreement expires, has not been ruled out. Were the financial health of Hyundai to recover sufficiently the risk which deterred 2M customers would lesson, providing full access. The deal is not perfect and does not meet the memorandum of understanding signed earlier in the… Read more

Will the new Mitsubishi Regional Jet (MRJ) erode Embraer’s market share?

MarketLine

In the 1990s, Embraer and Bombardier identified a gap in the production of an aircraft sized for efficient operation in the regional jet market in Europe, Asia, Africa and, particularly, in the United States. Regional American airlines were increasingly demanding an aircraft designed specifically to serve markets that can be optimized with 37 to 110 seat capacity equipment. The production of Embraer Regional Jet-145 (ERJ-145) launched the company into the lucrative regional jets market in 1996, only two years after privatization. Prior to 1996, Bombardier was the sole player in… Read more

Airlines: strategies of the world’s largest carriers

MarketLine

Worldwide, airline passenger volumes have been increasing steadily for decades, with only the occasional temporary downturn. Air transport of both passengers and freight is vital for the globalized economy. In the BRIC countries and other emerging economies, personal incomes are rising and making air travel accessible to a greater proportion of the population. This ought to be a good time to be in the airline industry, right? Wrong. Airline profit margins are among the thinnest of any industry sector. According to IATA data, the global industry had an average operating… Read more

UK motor insurance industry recognises dashboard cameras

MarketLine

UK Insurers are now accepting dashboard cameras as supporting evidence in cases where the parties involved do not agree on the cause of a road traffic incident and sales of the devices have increased almost tenfold in the last 12 months. Dashboard cameras are commonplace in countries where driving conditions can at times be particularly treacherous such as Russia and Taiwan. Dashboard cameras are forward-facing cameras mounted on a dashboard or windscreen. They are powered through a car’s cigarette lighter or in more modern cars, through a USB port. They… Read more

Launch of Virgin Trains East Coast tightens Stagecoach’s grip on UK long distance passenger transport

MarketLine

March 1st 2015 saw the launch of Virgin Trains East Coast, operating the UK East Coast passenger rail franchise, awarded to a consortium of Stagecoach Plc. (90% holding) and Virgin Group (10% holding). Stagecoach Group Plc., a large multi-modal transport group, will run the East Coast Main Line ( connecting major cities such as London, Leeds, Newcastle and Edinburgh) franchise through to April 2022, together with the West Coast Main Line franchise through Virgin Trains , a 50:50 venture with Virgin. This will mean that the group effectively controls both… Read more

Indian Government seeks to put railways on the right track

MarketLine

Railways are an integral part of passenger transportation in India, described as a ‘lifeline to the nation’ by Indian Railways. Yet, they have been in a state of decline for at least two decades, as chronic underinvestment by successive governments has led to over-utilization as increasing volumes of passenger and freight traffic are transported on aging track infrastructure, where lines are often limited to a single track. As Indian Minister of Railways Shri Suresh Prabhakar Prabhu noted in his 2015/2016 budget speech, the potential economic benefits of reforming the railways,… Read more

Spotify turning users from Premium to Uber

MarketLine

Music streaming subscription service, Spotify, has teamed up with the somewhat controversial mobile taxi app service, Uber. The partnership will get underway from November 21 when the joint service will be launched in 10 cities around the world, including London, Los Angeles, New York, Sydney, and Toronto. Both companies hope the service will be launched globally weeks after the initial launch. Providing Uber users subscribe to the Spotify Premium service, they will be able to choose what music they wish to listen to during their journey. Users will be able… Read more

British Cycling releases another comprehensive study: But will it fall on deaf ears?

MarketLine

There is generally a major problem in UK cities with transport, pollution and health problems. Whilst these are not specific to the UK alone, it has been suspected for a long time that investing heavily in encouraging people to cycle, will go a long way to relieving some of the worst of these problems. In London for instance there has been a concerted effort to get people on to bikes and it has taken major investment, to put in place a vast scheme of easily accessible rental bikes and cycle… Read more

Boeing and SpaceX to launch astronauts: Bad news for Virgin Galactic?

MarketLine

The ISS was originally designed and tested to provide an operational lifetime of 15 years; this period passed in November 2013. In January 2014, NASA announced its intention to extend ISS operations until 2024, giving a new 26-year life span to the station. However, at the same time, NASA’s budget has been falling in real terms and the agency has had to develop new relationships with private enterprises, such as SpaceX, Orbital Sciences and Sierra Nevada, in an attempt to allow competitive forces to drive down the cost of rocket… Read more

Dacia-The budget car company taking the UK by storm

MarketLine

Renault, the French automotive manufacturer, has done well in recent years and has weathered the storm of the on-going recession period better than some of its US or Japanese counterparts, with good revenue growth in both 2010 and 2011 for the group. Despite a marginal drop in overall revenues in 2012, the company produced double digit revenue growth in 2010 and 2011, a sign that its business has continued to push new revenue streams even in periods of difficulty. Renault has been successful, not only in its traditional markets in… Read more

Global air passenger numbers to double in 20 years

MarketLine

Airbus, the European plane manufacturer, predicts that air passenger numbers will more than double globally over the next 20 years from 2.9 billion to 6.7 billion in 2032. The France-based manufacturer attributes this growth to a bigger global middle class, urbanization, migration and tourism. Airbus also predicts that 29,220 new aircraft will be needed over the next 20 years, in order to meet this increased traffic. About 10,400 planes of the total number will be necessary just to renew existing fleets. Overall, new orders for aircraft would amount to $4.4tn…. Read more

Cycling in England: Could new investment power a change in habits?

MarketLine

The UK government has announced a major allocation of investment dedicated to improving England’s cycling infrastructure and thereby encouraging a new wave of commuters and recreational cyclists to get on their bikes. The investment, announced as a £94m ($149.2m) scheme to be split between some chosen cities and national parks, with £77m ($122.2m) shared between the cities and £17m ($26.9m) going to the national parks. The cities have been named as Manchester, Leeds, Birmingham, Newcastle, Bristol, Cambridge, Oxford and Norwich. Of these, the money has been weighted in favour of… Read more

HS2: Both sides of the argument become more entrenched

MarketLine

When potential plans to build a new high speed rail link in the UK were first announced, it immediately produced a huge rift between members of the general public. High speed 2 (HS2) was proposed as a huge new rail network, which would first link Birmingham and London, and then later in stage two link Birmingham to Manchester on one line and Birmingham to Leeds on another. This route essentially forms a Y shape up the spine of the country and spreads into both Greater Manchester and Yorkshire. There have… Read more

Embraer targets the US

MarketLine

There is widespread disappointment with the recovery of the US economy, but the American economic stimulus is rendering more fruits then the fiscal consolidation packages undertaken by European governments. This is reflected in the difference in new business opportunities currently presenting themselves on either side of the Atlantic. During the economic free-fall of the developed world, the European and the American market shared a comparable decline in the Gross Domestic Product (GDP). However, the GDP in the US is showing a more robust increase than many European countries, with the… Read more

Embraer in the US market

MarketLine

According to the International Air Transport Association’s (IATA) financial monitor, airlines share prices were 3% higher than the FTSE Global All Cap in the first 4 months of 2013. Its share prices are outperforming the market as investors are optimistic about the short-term recovery of the industry. The recovery of the share price is particularly strong in the US. It has risen by 35% this year following the improved financial performance of the American airline companies after the implementation of restructuring plans. The combined net profit of the American airlines… Read more

Jaguar Land Rover releases the Jaguar F-Type

MarketLine

The latest model to bear the Jaguar marque is beginning to roll out of the factories and into the showrooms.  The model is called the Jaguar F-Type and fits into the two-seater luxury sports car category. It has so far been suggested that the model is designed to put pressure on some of the biggest players in this section of the market. Some of the F-Type’s key rivals are suspected to be the BMW Z4, Mercedes SLK and the Audi TT. It is also believed that the model is expected… Read more

How did Tata Motors Made Feasible to Launch World’s Cheapest Car?

MarketLine

Tata Motors is a major player in the Indian automotive industry. In 2008, it launched the Tata Nano, the world’s cheapest car’. Tata judged that it would be ideal for India’s growing middle class. This report considers how successful this decision turned out to be. The Tata Nano was conceived, designed, and marketed with a near-exclusive focus on cost reduction. As a result, the basic model sold for about half the price of the next-cheapest competitor produce. It was received with strong initial order volumes, and awards from the automotive… Read more

Rising Demand for Urban Transport

MarketLine

Europe’s transport markets are liberalizing, and as incumbent operators anticipate increased competition in domestic markets they are looking for opportunities abroad. In 2011, French urban transport company RATP began operating a bus company in London, and acquired the light rail contract for Manchester, UK. This article will examine its strategic motivations and the outlook for its UK operations. RATP, like other European transport players, is expanding outside its domestic market. As European Union rules allow competitors to access their domestic markets, incumbent transport companies are looking to compensate by diversifying their… Read more