European Commission stated (17-Apr-2018) Montenegro Airlines is facing major sustainability issues, having accumulated significant financial debts. The EC report added the 2012 restructuring plan for the carrier was only partially implemented but further state support was granted to keep the airline operational. [more - original PR]
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Ryanair, Europe's biggest airline by passenger numbers and most profitable by operating margin, has always focused on low fares and low costs. But that alone is not enough to keep it at the top in a highly competitive industry. Ryanair aims to be the 'Amazon of Travel'. This involves building on its annual customer base of 130 million passengers, most of whom buy directly from the airline's website and mobile app, to sell a much wider range of travel-related services.
Ryanair has made great strides with its digital strategy since relaunching it in 2014, but it is determined to remain at the forefront. This focus by one of the world's most successful airlines, at a time when the airline sector has been experiencing a period of historically high profit margins, points the way for others to follow. Successful customer engagement, through harnessing the IT revolution, is a major challenge for an industry that has often been slow to embrace innovation and change.
At CAPA's Airline Leader Summit in Dublin on 17/18-May-2018 Kenny Jacobs, Ryanair Chief Marketing Officer, and Bobby Healy, CarTrawler Chief Technology Officer, will jointly present their views and experience of this challenge in a keynote talk entitled 'Special Vision 2030 - What will the Travel Digital Ecosystem look like; and the opportunities it presents'.
Featured Article
CAPA's World Aviation Summit in Berlin, 27/28-Nov-2018CAPA – Centre for Aviation has established a major new partnership with Berlin Airports, which will host the annual CAPA World Aviation Summit and Awards for Excellence on 27/28-Nov-2018 in Berlin.
The Summit will provide an aviation market outlook for the Europe, Asia, Middle East and Americas regions and review the commercial and operational pillars that will drive airline strategic decision-making in 2019.
To introduce proceedings, CAPA will provide an in-depth, big picture overview of the global aviation outlook. This will be followed by presentations on the global macroeconomic, travel and geopolitical environment and interactive panel discussions and debates on industry specific issues such as:
- The growth and sustainability of low cost long haul airlines, including the establishment of low cost brands by full service carriers and the role of new long range narrowbodies in driving market expansion
- Navigating through changing operating and regulatory conditions in a post Brexit world
- Partnerships, alliances and JVs
- The transformation of airlines into global retailers
- Leveraging data, AI and new technologies for greater customer engagement (and revenues)
- Understanding the impact and role of new disruptive players in the distribution ecosystem
Premium Analysis
Alaska Air and JetBlue: US value airlines repositionThe roll out of basic economy fare options by the US major global network carriers and the effects of those new pricing structures on ULCCs has been a dominant theme in the country’s aviation business during the past couple of years.
One question arising from the debut of the major airlines' basic economy fares is where the new pricing structures leave value airlines such as Alaska Air Group and JetBlue Airways on the competitive spectrum. Those airlines do not have the network breadth of the majors, nor the cost structures of ULCCs.
But both Alaska and JetBlue have moved to carve out their place in the US market during recent years. Alaska through its merger with Virgin America, and JetBlue with its focus city strategy and the introduction of its successful premium product Mint. For Alaska, it will take some time for the Virgin America acquisition to bear fruit. JetBlue, meanwhile, is still evaluating a major move into the long haul, low cost trans-Atlantic market. But a pertinent question for those value airlines is their appropriate size in the US market as ultra discounters continue growing their share.
American Airlines has reached a conclusion about its future widebody needs: the airline has cancelled the A350 order inherited from US Airways and instead ordered additional 787s.
The order is notable for stalling Airbus in making inroads in American's widebody fleet, and means that Boeing has diverted another A330neo sales opportunity.
But American's order includes both the -8 and -9 variants. The -8 backlog had been running dry as Boeing prefers to build the -9, and airlines have struggled to generate sufficient revenue from the smaller -8. This could change as Boeing improves -8 manufacturing.
American's 787-8 configuration – even if it means greater density with a future LOPA – is still well below 787-8 average. Given the fresh opportunity for fleet assessment, American has found that 787-8 economics still deliver.
SITA hosted the Asia Pacific Air Transport IT Summit in Singapore on 18/19-Apr-2018, with CAPA – Centre for Aviation participating as media sponsor. The summit attracted IT executives from airlines and airports throughout Asia Pacific, as well as other key stakeholders.
For several years SITA hosted an IT Summit in Brussels but decided to bring the event to Asia for the first time this year to be closer to a fast growing and increasingly important market. An IATA presentation at the summit projected that the Asia Pacific market would triple in size over the next 20 years.
IATA expects China will overtake the US in 2022 as the world’s largest market, based on total passenger traffic (domestic and international). India is projected to rise from seventh largest to third largest air transport market over the next 20 years, and Indonesia is projected to rise from tenth largest to fourth largest.
CAPA TV
Recorded at CAPA Global LCC Summit, 1-2 Mar 2018
Embraer Update
Embraer VP Asia Pacific Cesar Pereira discusses the outlook and market opportunities in Asia for smaller jets of up to 150 seats. The new E2-190 was in Asia for the first time in Feb-2018 for the Singapore Airshow, where feedback from potential customers was positive. Embraer recently secured certification from the FAA, EASA and Brazil’s ANAC for the E2-190, paving the way for delivery of the first aircraft to Norway’s Wideroe in Apr-2018.
CAPA Global Airport Leaders' ForumMore
Upcoming Event
7
May
Dubai: CAPA Global Airport Leaders' Forum
The Global Airport Leaders' Forum brings together global airport leaders to discuss key strategic issues and challenges facing airports as new technologies come online and tougher regulations create downward pressure on traditional revenue streams
CAPA Airline Leader SummitMore
Upcoming Event
17-18
May
Dublin: CAPA Airline Leader Summit
CEOs from all regions and business models gather for high level panel discussions and the CAPA CEO Dinner. You will leave the summit with new perspectives on the outlook for airlines globally. Plus, new insights into strategy options!
Highlands and Islands Airports Ltd (HIAL) said (20-Apr-2018) "robust growth" was observed at nine of the organisation's 11 airports across Scotland in the company's FY2017/18, which runs from from Apr-2017 to Mar-2018. HIAL MD Inglis Lyon said: "Overall, the past year has been another of significant growth in passenger figures across the HIAL group, this highlights the customer demand for our air services and the continued support and connectivity they provide for communities". [more - original PR]
Brisbane Airport opened (22-Apr-2018) its new AUD135 million (USD103.6 million) expansion of its northern international terminal and apron. The project delivered 55,000sqm of new pavement, new aircraft taxiways and three new aircraft parking bays capable of accommodating aircraft up to A380 weight, as well as improved passenger experience and processing efficiency to cater for future growth. Work added 11,000sqm of space at the international terminal, including new arriving and departing passenger zones, two new walk-out gates and four new aerobridges. [more - original PR]
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23-Apr-2018 11:46 AM
Today in BlueSwanDaily.com: Business Travel, Aviation's global network framework, Shandong Airlines
BlueSwanDaily.com published (23-Apr-2018) the following exclusive analysis pieces:
- New York, Geneva, Zurich, Luanda and Bridgetown remain world's most expensive global location for business travel
- Open or closed skies? What is the future for aviation's global network framework
- Social media is sexy, but making money from it is getting harder
- Catch up on CAPA's exclusive Market Analysis pieces – Air New Zealand, Virgin Australia, Colombia aviation, Munich Airport and more
- Airline Insight: Shandong Airlines
- Airport Insight: Addis Ababa Bole International Airport
- Bitcoin Watch – Cryptocurrencies surge hitting 4-week highs
Air Italy, via its official Facebook and Twitter accounts, revealed (21/22-Apr-2018) its first Boeing 737 MAX 8 in its new livery. As previously reported by CAPA, Air Italy will receive eight aircraft in 2018, including three new 737 MAX 8s and five A330-200s from Qatar Airways.
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Find Out MoreAirlines, airports, tourist organisations and the music business: the case for greater co-operation
This report examines the credentials of a number of airlines and airports that are actively involved in the promotion of musical events, including performances on their own property (e.g. on board or in-terminal).
Air-Rail Report: Air-Rail Developments
This report looks at what is new in the business and how the air-rail industry has developed.
CAPA Global Aviation Outlook 2018
Issue 43
- Aviation Outlook: 2017 was aviation’s sweetest spot ever, but oil prices could spoil the party in 2018
- Northeast Asia: Chinese airlines begin to take on the role of disruptor
- Asian Airports: Asia on the ascent
Problems with legacy airline information systems
Issue 42
- Open API channels in airline distribution
- Offering mobility as a service
- Airport technology - what passengers want
- The FFP spinoff model after Air Canada
- Environmental sustainability for aviation