Qatar Airways reported (18-Sep-2018) Doha Hamad International Airport handled more than 34 million passengers between Apr-2017 and Mar-2018, and recorded 211,658 aircraft movements with an on time performance of 85.4%. Cargo increased by 14.52%, with more than two million tonnes of cargo handled by the airport. Qatar Airways noted the airport successfully recovered its passenger numbers after the blockade began in Jun-2017. [more - original PR - English/Arabic]
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Thailand is planning major expansion of its MRO sector, which should enable the country’s maintenance providers to compete for more regional business. Thailand currently has relatively limited MRO capacity, making it difficult to handle its own fast growing fleet.
The Thailand government is heavily promoting and investing in a new maintenance complex at U-Tapao Airport outside Bangkok. Thai Airways’ maintenance division, Thai Technical, is planning to open a new joint venture widebody airframe maintenance facility at U-Tapao with Airbus and could forge partnerships with other manufacturers. The largest LCC group in Thailand, AirAsia, is also aiming to establishing a MRO complex at U-Tapao.
Thai Technical’s main facility is now at Bangkok’s old airport Don Mueang, while Thai AirAsia outsources its maintenance. Bangkok Airways and several independent MRO providers also have facilities at Don Mueang, where there is limited, or no, space for expansion.
The return of US sanctions against Iran in Aug-2018 is having a significant impact on the Iran-Western Europe aviation market.
British Airways will suspend its London Heathrow-Tehran service from 23-Sep-2018, leaving Iran Air as the sole operator on the route. BA has said that the route is no longer commercially viable, due to a fall in the number of business travellers.
KLM is to cease operating Amsterdam-Tehran from 24-Sep-2018, blaming the route's negative results and financial outlook. Iran Air will also be the only airline on this route. From the same date, Air France's Joon-branded service from Paris CDG to Tehran will also be suspended, leaving the route to Mahan Air and Iran Air.
Austrian Airlines will suspend its triangular Vienna-Shiraz-Isfahan-Vienna service in late Sep-2018, although it will maintain its Tehran operation. In addition, Aegean Airlines will discontinue its service to Tehran from Athens (included in Eastern/Central Europe) from 11-Oct-2018, leaving no other operator.
Moreover, Iran Air and Mahan Air are reducing capacity to Western Europe and Qeshm Air is exiting this market entirely.
After strong growth in 2016 and 2017 (following the removal of sanctions), Iran-Western Europe seat capacity is set to fall by 30% this winter.
Despite a raft of negative publicity swirling around Cancún during the last year, the region’s airport posted double digit passenger growth in 2017 and a nearly 7% increase through Jul-2018.
But US airlines are making adjustments to their schedules for Cancún as a result of various travel advisories stemming from violence and incidents of blackouts from alcohol consumption at resorts in the Cancún area.
The US is by far Cancún’s most important international market, and Cancún’s tourism officials are stressing that the latest travel advisory issued by the US State Department does not include Quintana Roo, which is home to Cancún and several other tourist areas. However, recent violence occurring outside the resort area in Cancún continues to create a negative perception for travel to the region.
For the first time Ryanair's traffic figures for Aug-2018 included Laudamotion, the airline founded by Austria's ex-Formula 1 world champion Niki Lauda. The Austrian airline carried 0.5 million passengers in the month, compared with 13.3 million for Ryanair, and although it may be small, its 92% load factor suggests that it is tapping into firm demand in its markets (although it is still short of Ryanair's 97% load factor in Aug-2018).
Laudamotion only launched operations in May-2018 and, based on OAG data for the week of 10-Sep-2018, is only Europe's 56th largest airline by seats. Moreover, the loss-making start-up is not expected to break even for three years. Yet Ryanair, Europe's largest airline, has raised its initial 25% stake in Laudamotion to a controlling 75% after receiving regulatory approval to do so.
On a Europe-wide scale, the transaction makes virtually no difference to market concentration. Nevertheless, as it is a very rare example of acquisition by Ryanair (the last one being its purchase of Buzz from KLM in 2003), it is interesting to consider what Laudamotion brings to the Irish LCC. The Lufthansa Group would seem to be the competitor most clearly targeted by Ryanair with its newest weapon.
NokScoot was established in late 2013 as a JV between Thailand’s Nok and Singapore’s Scoot. The airline commenced operations in early 2015 with charter flights using two 415-seat 777-200s based at Bangkok Don Mueang.
A third 777-200 had joined the fleet by the time NokScoot began scheduled flights in May-2015. It then did not expand its fleet for over two years. NokScoot finally added a fourth 777 in Oct-2017 and a fifth aircraft in Apr-2018.
NokScoot is planning to accelerate fleet expansion significantly over the next year. It has committed to taking two 737-800s in 4Q2018, which will be used to supplement 777s on existing routes to China and Taiwan. NokScoot plans to add another four 737s in 2019, as well as two more widebody aircraft, resulting in a fleet of 13 aircraft at the end of 2018 compared to only five aircraft currently.
Recorded at CAPA Latin America Aviation & LCCs Summit, 10-Sep-2018
Airline Investment And Foreign Ownership In Latin America
Latin American flag carriers have often suffered from the dominance of foreign airlines in key markets. US airlines, notably, have secured significant equity holdings and partnerships, in attempting to subdue some of the more difficult elements of competition. This has been possible as several key Latin American countries, such as Mexico, Brazil, Chile and now Argentina have adopted relatively liberal aviation policies. Ownership and control and foreign equity ownership have been significantly relaxed in several cases. Only a small number of states including those of central America have resisted this trend.As the main Latin economies emerge from the difficult times they have experienced in this decade, there is the potential for foreign airlines to establish even stronger ties.
- How do limits on open skies and infrastructure constraints inhibit growth?
- Are Latin American governments likely to pursue liberal market regimes, including market access and foreign ownership?
- What’s the appetite for foreign investment in Latin American airlines, and what is the reality that some of the more restrictive foreign ownership laws could change?
- Are more cross border equity investments likely as partnerships evolve?
- Are there opportunities for multilateral liberalisation that would benefit foreign airlines?
- Which markets are underserved and have the most potential?
- How can the region’s airlines better compete and capture their fair share on Latin America’s growing air routes?
- Will Latin American carriers grow their capacity share on intercontinental routes or will foreign carriers continue to dominate?
Moderator: Deutsche Bank, Managing Director, Michael Linenberg
Panel Members:
- Azul, Chief Revenue Officer, Abhi Shah
- United Airlines, SVP – Alliances, John Gebo
- Viva Air, Chief Legal Officer, Abel Lopez Campo
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19-Sep-2018 3:53 PM
ACCC calls on Govt to periodically review curfews at Sydney Airport to better manage congestion
Australian Competition and Consumer Commission (ACCC) called (18-Sep-2018) on the Australian Government to periodically review curfews at Sydney Airport to better manage congestion. ACCC stated: "The Government could periodically review these restrictions to ensure they are not unnecessarily impacting on the efficient operation of the airport, especially considering the technological developments that continue to reduce the level of noise from aircraft. The lack of competition in the supply". The ACCC also said congestion at the airport has expedited the development of Western Sydney Airport. [more - original PR] [more - original PR - II]
Comair (South Africa) reported (18-Sep-2018) the following financial highlights for 12 months ended 30-Jun-2018:
- Revenue: ZAR6537 million (USD509.7 million), +7.8% year-on-year;
- Airline: ZAR6208 million (USD484.1 million), +7.1%;
- Operating costs: ZAR5413 million (USD422.1 million), +8.3%;
- Depreciation and amortisation: ZAR443.2 million (USD34.6 million), -2.9%;
- Operating profit: ZAR670.6 million (USD52.3 million), +5.1%;
- Profit before tax: ZAR471.2 million (USD36.7 million), +8.4%;
- Net profit: ZAR325.6 million (USD25.4 million), +9.6%;
- Total assets: ZAR6624 million (USD516.5 million);
- Total liabilities: ZAR4844 million (USD377.7 million). [more - original PR] [more - original PR - II]
*Based on the average conversion rate at ZAR1 = USD0.077978
ACI Europe reported (18-Sep-2018) passenger traffic at European airports increased 4.8% year-on-year in Jul-2018. Airports in the EU saw an increase of 4.3% in passenger traffic, while non-EU airports reported a 6.8% increase in passenger traffic. Passenger traffic growth in the top five European hubs were Istanbul Ataturk Airport (+1.5%), Amsterdam Schiphol Airport (+0.5%), Frankfurt Airport (+7.5%), Paris CDG (+4.2%) and London Heathrow Airport (+3.7%). Freight traffic across Europe increased 2.6% and aircraft movements increased 3.5%. [more - original PR]
Boeing, via its official Weibo account, announced (18-Sep-2018) assembly on Kunming Airlines' first 737 MAX 8 aircraft has commenced. Kunming Airlines and Boeing signed a MoU for 10 737 MAX aircraft at the 2016 Farnborough Airshow.
Cologne/Bonn Airport announced (18-Sep-2018) MD and COO Athanasios Titonis plans to step down, effective 31-Oct-2018. Mr Titonis was offered the position of MD at "a large airport in the Gulf region". Cologne Airport chairman and CEO Johan Vanneste will take on responsibility of management, legal, customer and non-aviation operations until a new MD is appointed. [more - original PR - German]
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