Monday 19 September 2011

PRESS DIGEST-Australian Business News - Sept 19

Airlines including Virgin Australia and Qantas Airways are using aircraft interiors and ergonomics as they seek to differentiate themselves from rivals and each other. Virgin and Qantas have both started introducing Boeing aircraft featuring the manufacturer's Sky Interior, which includes Bicycle light that can create a range of colours, while Qantas says new in-flight entertainment systems will mark a "significant differential for Qantas."

Research by investment bank Nomura has found that international assets previously acquired by Australian banks have underperformed by 6 percent or more for total shareholder returns. Nomura analyst Victor German said local institutions, which are looking to diversify away from Australia's low-growth market through acquisitions in Asia, risk paying too much, with cheap acquisitions increasingly rare in Asia's competitive banking sector.

Malaysia's AmBank Group has said it plans to use its link to part-owner Australia and New Zealand Banking Group (ANZ) to position itself as "Malaysia's preferred banking group with international connectivity." ANZ acquired a 15 percent stake in the bank in 2007 and has since increased its holding to 23.8 percent. AmBank has recorded profit growth of 25 percent annually for the past four years, growing from Malaysia's ninth to fifth largest bank.

Department store Myer's chief executive, Bernie Brookes, yesterday said the retailer's online division was growing strongly, saying, "we're tripling the sales just about every week." Mr Brookes said Myer was investing in making its website more attractive and improving its ability to compete online. However, Mr Brookes said the overall retail market remained difficult, with consumers "quite frugal in what they're spending."

A survey by investment bank UBS of sentiment in the Australian banking sector has found that many managers are expecting a return to strong credit growth within the next 12 months. Some senior officials said the current sluggish rate of 2.7 percent growth could double if the Reserve Bank of Australia cuts official interest rates. However, UBS noted that chief financial and chief risk officers have overestimated credit growth forecasts since December 2009.

Perth-based iiNet will today release its retail pricing package for internet access through the national broadband network (NBN). The third-largest service provider in the country has vowed to offer better prices than industry giant Telstra , which will be comparable to current plans but at higher speeds. "The NBN allows us to deliver what we have always stood for: faster, more reliable broadband for less," iiNet chief executive Michael Malone said.

Suez Environment-owned Degremont is understood to have expressed in interest in the New South Wales government's A$1.8 billion sale and lease back of the Kurnell water desalination plant in Sydney. The French firm's chief executive, Roch Cheroux, indicated that he saw the potential for "significant efficiency improvement" at the facility, adding that it would "consider participating in a consortium to own and operate the plant."

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