- On time departures: 68.5%;
- On time arrivals: 69.3%;
- Cancellations: 2.9%;
The Asia Pacific is the world’s factory, accounting for more than 40% of global exports of manufactured goods in 2021. With the COVID-19 induced disruption to shipping and supply chains, air cargo had a moment in the sun, reporting two consecutive years of record revenue. With passenger travel largely absent, air cargo was one of the few bright spots for Asia Pacific regional carriers in 2020 and 2021.
However, as passenger traffic comes back and shipping begins to regain some of its competitiveness, cargo sector revenues and profits are slowly coming back to earth. Worse still for Asia Pacific airlines, traditional Western export markets are increasingly moving to bring manufacturing onshore, particularly for high value goods. Geopolitics is also hurting the sector, as the relationship between China and the West becomes ever more frosty and barriers to trade are erected.
- What is the outlook for air cargo in the Asia Pacific?
- How can regional carriers benefit from major trends such as eCommerce, growing Asia Pacific regional consumption and ongoing supply chain instability?
- What does the growing regionalization trend mean for air cargo. Are agreements like the new Regional Comprehensive Economic Partnership (RCEP) going to support regional trade and air cargo?
Moderator: The Chinese University of Hong Kong, Assistant Professor, Faculty of Law, Jae Woon (June) Lee
- Cathay Pacific, Regional Head of Cargo, Southeast Asia, Siddhant Iyer
- Teleport, CEO, Pete Chareonwongsak
- IBS Software, SVP for APAC, Gautam Shekar
New York's Governor Kathy Hochul announced (17-Nov-2022) the USD4.2 billion Terminal 6 construction project at New York John F Kennedy International Airport is scheduled to commence in 1Q2023, following a financial close and lease signing and US FAA environmental approval for Phase I of the project. The 1.2 million sqft facility is a public-private partnership (PPP) between Port Authority of New York and New Jersey (PANYNJ) and JFK Millennium Partners (JMP) and will feature 10 gates, connection to JetBlue Airways' Terminal 5, advanced security processing technology and over 100,000sqft of restaurant and retail concessions space. PANYNJ will commit USD130 million in capital funding towards enabling infrastructure as part of the PPP, including airside improvements and utility enhancements such as electrical support. The terminal will be constructed in two phases, with the first new gates to open in 2026 and project completion anticipated in 2028. The project is expected to create over 4000 jobs and direct wages of USD1.9 billion. Vantage Airport Group will the principal developer and operator of the new terminal, with Corsair Capital serving as the project's principal financial sponsor. [more - original PR - I] [more - original PR - II]
US and Ecuador signed (17-Nov-2022) a bilateral open skies agreement, enabling the expansion of passenger and freight services between the countries. The agreement is expected to promote increased travel and trade, thereby catalysing economic growth and job opportunities. Negotiations on the agreement concluded in Dec-2021. The US now has reciprocal open skies agreements with over 130 partners. [more - original PR - US Department of State] [more - original PR - Ecuador Ministry of Transport - Spanish]
JetBlue Airways announced (16-Nov-2022) plans to launch New York JFK-Paris CDG and Boston-Paris CDG services from summer 2023. Launch dates and frequencies have yet to be announced. Paris will be the carrier's second trans Atlantic destination following the launch of London services in Aug-2021. According to OAG, Air France and Delta Air Lines are also scheduled to operate each route, while American Airlines will also serve Paris from New York JFK. [more - original PR]
Aena presented (16-Nov-2022) its strategic plan for 2022 to 2026, with projections including:
- Pre-pandemic traffic levels (275 million passengers p/a) to return in 2024, rising to 300 million in 2026;
- Commercial revenue per passenger in 2026 to increase by 12% compared to 2019;
- Total commercial revenue in 2026 to increase by 23% compared to 2019;
- Recovery of 2019 levels of consolidated EBITDA between 2024 and 2025;
- EBITDA margin in Spain to reach 55% in 2025;
- International assets to contribute 15% to the group's EBITDA in 2026.
The projected traffic recovery will allow Aena to resume dividend payments, with an 80% payout over the entire period to be proposed to shareholders. The dividend proposed for 2022 will be increased by an additional EUR1.37 per share over the resulting profit at the end of the fiscal year. [more - original PR]
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