CAPA's Annual India Aviation Outlook is keenly anticipated by the industry each year as the leading analysis of the direction of one of the world’s most important emerging markets. CAPA has a strong and established track record in accurately identifying key trends and developments in the Indian market, both on an annual and long term basis. We operate India’s leading dedicated aviation advisory and research practice offering unrivalled analysis and data across the value chain.
Our India Aviation Outlook is used by the leading industry players to shape their strategies and decisions in the market. The 2013/14 edition will be released on 25 May 2013. Click here for more information.
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US' Los Angeles International Airport passenger numbers up 2% - traffic highlights:
The North Atlantic: the state of the market five years on from EU-US Open Skies
The EU-US Open Skies agreement came into force on 30-Mar-2008. The year before, in 2007, IATA had released a major report looking at the benefits of airline liberalisation. After internal deregulation within the US and the EU, and some limited moves in other parts of the world, the agreement was (and still is) the most significant step towards global aviation liberalisation. The North Atlantic is the world’s largest intercontinental air traffic market and the eyes of the world were on it as it took this step.
The EU-US Open Skies agreement opened up markets on both sides so that any carrier from either side could fly between any point in the EU and any point in the US. It also provided for a second stage of negotiations aimed at loosening foreign ownership controls. This was signed in 2010, but has not so far been implemented.
With the fifth anniversary of Open Skies approaching, this analysis takes the opportunity to review the state of the North Atlantic market since 2008. The launch of Open Skies into the jaws of a global recession blurs its impact, but the main detectable results of Open Skies seem to be in the increased concentration of capacity in the hands of mega carriers and alliance joint ventures, with consequent benefits for load factors and yields.
Turkish Airlines 1Q revenues grow 28% as losses narrow, but unit costs will be key to FY result
Turkish Airlines cut its 1Q2013 operating loss from TRY173 million to TRY23 million (EUR9.7 million), almost breakeven in the traditionally weakest quarter. Revenues grew 28% on capacity up 21%, with particularly strong growth to Africa, Middle East and Europe. The improved result was driven by unit revenue growth (RASK) as unit costs (CASK) were held flat in spite of higher fuel prices. Earlier this year, the carrier said it did not expect a unit revenue increase for FY2013, so this represents a good start to the year, and ex fuel unit costs will need to remain under control over the rest of the year.
Much of Turkish Airlines’ success has been built on an efficient workforce and the geographic location of the Istanbul hub, which facilitates a global connecting strategy. Both of these elements were visible in 1Q2013, with labour cost growth slower than capacity and transfer passenger growth outpacing the total. Nevertheless, a strike called on 15-May-2013 (albeit with limited impact) and the relentless competitive presence of the Gulf carriers are reminders that this success cannot be taken for granted.