Agility reported (22-Feb-2020) net profit growth of 7% year-on-year in 2019, with revenue up 1.8% and EBITDA up 24.7%. The company was also able to post a net profit 4.4% higher year-on-year in 4Q2019, although revenue was flat. Agility vice chairman and CEO Tarek Sultan stated: "Global trade tensions, regional economic uncertainty, and financial market pressure in emerging markets all contributed to a challenging year for our logistics business. Internally, the costs associated with our investment in digitisation also had an impact; one that we believe will continue in 2020". He said the company recognises it is "likely to see volatility in the global economy that may impact our logistics business" in 2020, "as well as slower market activities in certain markets in the Middle East and Africa that may affect certain portfolio companies". However, he noted the company is "well-positioned to navigate through them [challenges]". [more - original PR]
It is not surprising that Delta Air Lines has declared fairly ambitious plans to become carbon neutral over the next decade and is spending USD1 billion to meet that goal. Throughout 2019 Delta’s executives fielded questions about sustainability, and the airline’s management pledged that in 2020 the company would exert more of an active voice in conversations about aviation’s role in combating climate change.
Delta’s plans to achieve carbon neutrality have been widely deconstructed since the airline unveiled its environmental goals, and in some ways there are more questions than answers regarding how the company will attain its targets. But Delta seems aware of the challenges associated with its goals, particularly with growing scepticism about carbon offsetting.
With limited room for manouevre in the short term, all airlines are searching for ways of mitigating environmental damage, most tellingly by the use of newer, more efficient aircraft.
British Airways outlines sustainability measures
London Heathrow Airport gains carbon neutral status for infrastructure
Sydney Kingsford Smith Airport unveils six commitments achieved in 2019
Brussels Airport commits to strengthening UFP reduction actions
CAPA – Centre for Aviation (CAPA), the world’s most trusted source of market intelligence for the aviation and travel industry, has released new dates and locations for its highly anticipated CAPA Knowledge Fundamentals of the Aviation Industry training.
Designed to benefit all those working in, or associated with the aviation industry, this short introductory aviation course focuses on the workings of airlines and provides the practical information to better understand the structure and market of this important yet complex industry.
Covering topics from airline and airport relationship and loyalty programmes, to network planning and marketing and advertising, this training benefits everyone from industry novices to executives from a broad range of sectors such as airlines, airports, tourism bodies, industry suppliers, lawyers, government organisations, financers, investors, suppliers, unions and anyone else with exposure to aviation.
Although the US remains a mature market, with FSCs, LCCs and ULCCs firmly entrenched in their respective strategies, occasionally interesting developments occur.
During the past few months one of the more fascinating events was Delta’s surprise tie-up with LATAM, which is dissolving a long term partnership with American and exiting the oneworld alliance.
It appeared as if American Airlines would accept LATAM’s defection without much protest or examination of its own international strategy. But now American and Alaska Air Group have opted to cancel a planned dissolution of their relationship, and instead are bolstering their partnership to enable American to introduce new long haul service from Seattle, which is a coastal hub for Delta. It is an interesting move by American, which is in the midst of making a major push from its hubs in Dallas/Fort Worth and Charlotte.
Alaska has also pledged to become a fully fledged member of the oneworld alliance in 2021, at a time when scrutiny of the intensity of alliances is growing. Alaska has flirted with oneworld in the past, and now it seems as if the airline is ready to commit in order to bolster its position among corporate elites in Seattle.
Infrastructure is top priority policy in the UK at the moment. Since the General Election in Dec-2019, apparently all that occupies Prime Minister Johnson’s thoughts is ditching “austerity” (which has been around since 2008) and embracing instead a policy of rampant investment into infrastructure. That appears to be one of the reasons that a more cautious Chancellor of the Exchequer, Sajid Javid, resigned.
A much-needed part of that infrastructure is the delayed high-speed rail (HS2) project to connect London with the Midlands and the North of England. The first part of the project has been quickly approved, although questions remain about the sections that follow. It seems that a Chinese company has approached the government, promising to build the HS2 faster and cheaper, and with faster trains.
If such a scenario were to emerge, does that mean that Chinese interests might pitch to build the even more delayed third runway at Heathrow Airport? They already have interests at two UK airports, including Heathrow.
Airport Slots And Facilities – Implications Of Policy Choices For Airline Competitiveness
• What are the alternative ownership models to privatisation?
• What do governments need to consider when deciding whether airports should be privatised?
• What form should regulation take, in order to strike a balance between national and private interests?
• Who ‘owns” airport slots? How should slot policy be regulated and developed?
• What future is there for managing airport capacity that cannot meet demand? To prevent chaos and one that limits growth?
Upcoming Event
Amman: CAPA Middle East & Africa Aviation Summit
UPDATE: After careful consideration of the impact of COVID-19 & in consultation with our hosts, AIG, it is with regret we announce the CAPA Middle East and Africa Aviation Summit, originally scheduled for 2-3 March 2020 Jordan, will now be postponed.
Upcoming Event
Dublin: CAPA Airline Leader Summit: Making Money 2020
We invite you to join us along with airline executives from around the globe as we take a deep dive into making money in 2020 and how technology will revolutionise the delivery of aviation services with everything from retailing to sustainability.
Agility expects to be impacted by 'volatility in the global economy' in 2020: CEO
SKY Airline to finalise fleet renovation programme in Apr-2020, operating 100% A320neo
SKY Airline, in an email to CAPA, stated (25-Feb-2020) the carrier is completing its fleet renovation programme in Apr-2020, becoming a 100% A320neo operator. The carrier is scheduled to incorporate A321neos in 2021 and A321XLRs by the end of 2023. As previously reported by CAPA, the carrier placed an order for 10 A321XLRs and three A321neos.
PAL Holdings stated (24-Feb-2020) "We wish to advise that the Sangley Airport Project has not been presented or proposed to the PHI's management and board". It added: "We believe it will be premature at this point to comment on the same". As previously reported by CAPA, Macroasia Corporation president and COO Joseph T Chua reported plans to bring Philippine Airlines into a consortium due to construct the USD10 billion Manila-Sangley Point Danilo Atienza Air Base project in 2Q2020. [more - original PR]
Thai Airways reported (24-Feb-2020) the following traffic highlights for Jan-2020:
- Passengers: 1.8 million, +2.8% year-on-year;
- Passenger load factor: 82.8%, +1.8pp;
- Passenger traffic (RPKs): +4.2%;
- Passenger capcity (ASKs): +1.9%;
- Cargo: 47,833 tonnes, -8.2%;
- Cargo load factor: 50.4%, -2.8pp;
- Number of flights: 6298, +0.4%. [more - original PR]
Korea Tourism Organisation reported (23-Feb-2019) visitor arrivals to South Korea for Jan-2020. Details include:
- Visitor arrivals: 1.3 million, +15.2% year-on-year;
- Korean Departures: 2.5 million, -13.7%. [more - original PR - Korean]
A4ANZ: Productivity Commission investigation into Australian airports 'had no impact'
Airlines for Australia & New Zealand (A4ANZ) chairman professor Graeme Samuel reported (24-Feb-2020) Australia's Productivity Commission inquiry into Australia's airports "had no impact, with travellers left to wear the costs of the airports' monopoly behaviours". Mr Samuel reported behaviours include:
- Car parking charges where more than AUD0.68 (USD0.45) in every AUD1 (USD0.66) represent profit to the airport;
- Significant growth in charges for landside access services, such as taxis, rideshare operators and buses, with revenue growth of 159% over a decade;
- Sydney Airport recording its highest returns since privatisation, despite a drop in domestic passengers.
Mr Samuel stated: "The fact remains that there is no other monopoly infrastructure in Australia which is exempt from processes to protect consumers against the exercise of market power". [more - original PR]
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Global Outlook 2020: A look into the coming decade, expect massive change
- If the first two decades of the century were transformational for the aviation industry, the 2020s will be revolutionary.
Aviation carbon emissions and climate change
- Pressure mounts to adopt net zero emissions by 2050 and the threat of a jet fuel tax looms – are we doing enough to mitigate the impact of aviation on the environment?