Capital A announced (18-Mar-2024) AirAsia Cambodia will launch operations with twice daily Phnom Penh-Siem Reap and Siem Reap-Sihanoukville services from 02-May-2024. The LCC will operate the services with two A320 aircraft to be based at Phnom Penh International Airport. AirAsia Cambodia CEO Vissoth Nam stated: "The timing could not be better for AirAsia Cambodia's debut, considering the significant growth witnessed in Cambodian air travel and tourism". [more - original PR]
The past two years have been eventful for ultra-low cost operators in the Americas.
Two airlines in Colombia - Viva and Ultra Air - went out of business in 2023. More recently, Canadian ULCC Lynx Air ceased operations, reflecting some of the unique challenges start-ups face in the Canadian market.
Now that JetBlue and Spirit Airlines have officially ended their quest to merge, the US ULCC Spirit must now craft a stand-alone plan in a market that has been challenging for the ultra-low cost model over the past couple of years.
Both of the US' largest ULCCs - Spirit and Frontier Airlines - have tabled plans to reverse their fortunes.
But Sprit could face more headwinds than Frontier in restoring investor confidence - given its debt burden and heightened scrutiny over the ultra-low cost model.
Thai Airways has been making major moves to rebuild its international fleet as it looks to restore passenger numbers as an immediate goal, and to help meet the country's longer-term tourism growth aspirations.
Visitor numbers to Thailand have been slow to recover since the COVID-19 pandemic, which is a concern both for its flag carrier and for the broader economy.
Thai Airways' recent fleet modernisation steps are aimed at increasing flows from key markets. This aligns with the government's policy objectives and its desire to boost Thailand's aviation infrastructure.
The airline captured headlines recently with its large order for 45 Boeing 787s, which are due to begin arriving in 2027. Since then, the airline has revealed smaller, but significant, leasing deals to bolster its widebody fleet in particular, before the new orders begin arriving.
Like many other airlines, Thai accelerated its fleet refresh plans as part of restructuring efforts forced by the COVID-19 crisis. This entailed the retirement of many of its older - and larger - widebodies.
The latest moves represent the next step, which is building the fleet back up with more modern aircraft better suited to its needs.
In some respects, such fleet overhaul efforts by Asia-Pacific airlines have reflected the need to adjust to a new operating environment - but they also show how airlines are cognisant of the old adage of never letting a good crisis go to waste.
'Carry On up the Nile' – strategically planned Egyptian airport privatisation moves a step closer
The infamous series of 31 British 'Carry On' films of bawdy, slapstick humour from the 1960s to 1980s didn't include a 'Carry On up the Nile' movie, but arguably the attempts to privatise Egypt's airports could have formed the basis of a script for one.
Not because it has been comedic, but because it has been somewhat chaotic: mainly management contracts predominating - which isn't privatisation anyway - but with BOT projects and wholesale private sector ownership intervening randomly.
Now the Egyptian government has stated twice in the past few months that it is committed to the implementation of processes for offering airport management and operation concessions to the private sector, including in Cairo. It didn't specify to whom, or whether, that means domestic companies or international ones - but it is the latter that have the required experience.
Egypt is a country where the capital city attracts a great deal of the air transport activity, and its three airports, all managed by the same authority, would be top of the list for investors. The other main cities' airports are minnows comparatively.
But the best prospects possibly lie with the sunshine resort airports.
Airbus off to a better start in 2024; few worries in maintaining market share, but pressure remains
The European original equipment manufacturer (OEM) Airbus got 2024 off to a promising start, with Jan-2024 deliveries totalling 30 aircraft to 18 different customers.
Deliveries comprised 26 A320neo family aircraft, along with two A220s and two A330s. This is an uplift of 50% compared to the OEM's Jan-2023 delivery performance.
Even though the start of the year is typically a low point for Airbus' deliveries, the OEM had an unusually slow start in 2023. This was the result of lingering supply chain issues left over from the COVID-19 pandemic.
Airbus has moved to get many of these under control, although CEO Guillaume Faury noted early in 2024 that there are still "plenty" of bottlenecks in the supply chain.
Cebu Pacific’s short term and long term growth plans – part two: demand potential and challenges
Cebu Pacific's ambitious growth plans are based on the promise of untapped demand both in the Philippines and the immediate region, and also on initiatives that will finally address the country's airport infrastructure limitations.
The airline is already one of the most important LCC players in the Asia-Pacific region, and has become the pace-setter in the Philippine domestic market. It is managing to keep its short term capacity rising, and is now negotiating an order for another 100 narrowbody aircraft.
The demographic trends in the Philippine market point to significant potential for demand to soar, certainly enough to justify Cebu Pacific's planned growth. And Manila's proximity to major population centres elsewhere in the region should also give the airline greater market scope.
Airport improvements at the main Manila hub and regional airports, and the construction of new airports, will mean that infrastructure will no longer constrain capacity growth to the extent that it has in the past.
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PANYNJ, NTO and URW Airports launch commercial programme for new terminal at New York JFK Airport
Port Authority of New York and New Jersey (PANYNJ) partnered (18-Mar-2024) with New Terminal One (NTO) and URW Airports to launch the commercial programme associated with the USD9.5 billion new international terminal at New York John F Kennedy International Airport. URW will promote concessions business opportunities at the facility, with a focus on diverse entry points for local, women and minority owned businesses. URW also issued its first prime operator RFP and is seeking a global duty free partner to occupy five outlets in the project's initial phase, with additional space to be provided in future phases. As previously reported by CAPA, the new terminal forms part of the USD19 billion transformation programme at the airport and is scheduled to open in 2026. [more - original PR]
US Government released (11-Mar-2024) the FY2025 Budget request to Congress, requesting USD21.8 billion for the US FAA. Details include:
- USD1.8 billion for the Office of Aviation Safety to support production oversight and continued operational safety, boosting the FAA's resources for continuous safety improvement;
- A new Facility Replacement and Radar Modernisation proposal dedicating USD8 billion towards replacing or modernising ageing air traffic control (ATC) facilities over the next five years, beginning with USD1 billion in 2025. The proposal includes modernising 377 critical radar systems and more than 20 ATC facilities;
- USD43 million to accelerate the hiring and training of air traffic controllers to meet the FAA's goal of hiring 2000 new controllers in 2025.
US Department of Transportation Secretary Pete Buttigieg stated: "President Biden's Budget allows us to continue advancing vital work underway across the country - making travel safer on every mode of transportation, strengthening supply chains to keep costs down, and modernizing our infrastructure to serve Americans for generations". [more - original PR - DoT] [more - original PR - FAA]
IATA announced (08-Mar-2024) the aviation industry's commitment to improving gender balance is "starting to deliver results". Details include:
- The percentage of active pilot licences held by women in the US increased from 6.6% in 2013 to 10.3% in 2023. IATA said the share has been "rising steadily", by up to almost 1pp p/a. The overall number of female pilots doubled from around 39,000 to around 83,000 between 2013 and 2023;
- The female proportion of the total number of pilots is greatest in the early age cohorts of 14 to 15 years and 16 to 19 years, representing nearly one quarter of the mostly trainee pilots in 2023. IATA noted the female share of the total "steadily declines" thereafter, particularly in "prime working" years. This includes a "significant" 6.1pp decline in the share in the 20 to 24 age cohort to 16.8%. The share falls to 8.9% for the 40 to 44 years cohort, 3.5% for the 75 to 79 range and 2.7% for 80 and over;
- Gender representation in other aviation professions lags "even further behind". In 2023, only 3% of all aircraft mechanics certified in the US were female and only 6% of repair staff and 4% of flight engineers. IATA said a "slightly better" gender balance has already been achieved within the dispatcher category, where 20% were female in 2023.
IATA stated while the progress is encouraging, the airline industry remains a "heavily male dominated sector". IATA added: "More needs to be done to make it an attractive and viable career option for women throughout their working life. Although there is no simple solution to this issue, any such initiatives must span the industry and be undertaken in a conscious and coordinated manner". [more - original PR]
iGA Istanbul Airport chief planning officer: We are seeing different behaviours in passengers
iGA Istanbul Airport chief planning officer Ismail Polat, speaking at the CAPA Airline Leader Summit - Airlines in Transition 2024, stated (08-Mar-2024) "We are seeing different behaviours in passengers, whether it be when they come to the airport or how they spend their money when they are at the airport".
Finavia SVP route development Petri Vuori, speaking at the CAPA Airline Leader Summit - Airlines in Transition 2024, stated (08-Mar-2024) "after COVID-19, leisure traffic has been increasing and business has been going down". Mr Vuori said the company has noticed food and beverage revenue has been increasing and tax free sales has been decreasing. He added the leisure traveller is arriving earlier and spending at the airport, just not spending on the "luxury items".
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This report aims to benchmark the performance of the world’s major airlines – to understand their relative carbon emission quantity and intensity with respect to passenger and freight transport.