Embraer announced (18-Mar-2019) CEO and president Paulo Cesar de Souza e Silva will end his current term, effective 22-Apr-2019. Mr Silva was invited to be a senior advisor in the selection and integration of a new CEO, as well as advising the board until the closing of the transaction with Boeing. [more - original PR - Portuguese]
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Are airline open skies still open in the US?16-Mar-2019
Are airline open skies still open in the US?
In early 2018, when the US and the governments of the UAE and Qatar reached a truce over the years-long subsidy debate between American, Delta and United and Emirates, Etihad and Qatar, many questioned how long the cease fire would last.
The answer was: barely a few months. American argued that fellow oneworld member Qatar Airways could be violating aspects of the agreement through its stake in Air Italy, which was adding services from Milan to Miami and New York JFK.
The argument continues to simmer, but proving that Qatar is in fact violating the terms of the truce could prove difficult.
Nonetheless, it did appear to many foreign governments that the highly influential Big 3 were trying to turn the clock back to an era where national airlines were protected from competition, regardless of the wider national interest.
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Airports impacted as A380 production winds downTimescales are relatively shorter in the airline industry, where aircraft can be leased through a variety of measures and easily disposed of. They are relatively longer in the airports business where infrastructural investment in terminals and runways can run to billions of dollars, particularly so where those facilities are not disposable and there is no other use for them.
Now the equation has been turned on its head by Airbus’ decision, 11 and a half years after the aircraft first flew commercially, to end production of the A380 in 2021. The A380 has reverted to its prototype designation from its inception in 1994 – the A3XX. XX for cancelled.
Across the globe, some airports have invested heavily and admirably to cater for the ‘superjumbo’, yet many haven’t. This report examines the airports which host the A380 most frequently and questions which of them got their planning for it right.
Competition is intensifying in the Australia-Bali market as Malaysia’s Malindo Air launches services in 2Q2019 from Adelaide and Sydney to Bali, using fifth freedom rights. Virgin Australia is also launching services from Darwin to Bali in Apr-2019, and Qantas is adding capacity from Sydney to Bali by upgauging to A330s.
Malindo already competes on the Melbourne-Bali and Brisbane-Bali routes and its Indonesia-based sister airline Batik Air serves Perth-Bali. With the launch of Adelaide and Sydney the Lion Group will therefore compete on the five largest Australia-Bali routes.
Malaysia’s AirAsia X is also now considering the launch of services from Bali to Australia using fifth freedom rights, taking a page from the strategy playbook of rival Malindo. However, AirAsia X will have to settle on a limited number of frequencies or wait for Malaysia to negotiate an expanded air services agreement with Indonesia, since the current bilateral caps the number of fifth freedom Bali-Australia weekly frequencies to 28.
CAPA Americas Aviation Summit, to be held in Denver, Colorado on 18/19 March 2019, is the US version of CAPA's renowned annual regulatory and commercial Summits.
With key US industry leaders, join us to explore key issues affecting airlines and airports in the Americas, focusing on the US domestic sector and growth prospects in the major international markets.
At a time of major change in the global airline industry, the Summit offers a great opportunity to hear the views of these leaders and to gain an understanding of where 2019 is likely to lead.
Attempting to determine how to satisfy the needs of the future traveller is growing more complex as travel suppliers wade through a dizzying array of emerging technologies and rapidly changing traveller behaviour and preferences.
There is no shortage of research into future traveller trends, but the challenge facing travel suppliers is determining which trends will ultimately have staying power, as well as selecting the best technologies that cater to customers whose preferences continue to evolve in a constantly changing travel landscape.
Sales channels will continue to evolve, and there is the potential for virtual reality to play a major role in the development of new travel store fronts.
Recorded at CAPA Global LCC Summit, 26-Mar-2019
Networking Long Haul Operations: Combining With Short Haul Partners At Each End
Low cost long haul operators are establishing partnerships with short haul low cost airlines as a means of expanding their network breadth and supporting their growth aspirations, as recently demonstrated by Norwegian’s tie up with easyJet. For long haul operators, connecting traffic is critical in scaling sustainably, especially as very few long haul destinations generate enough demand to justify year round capacity, while their partners benefit from additional traffic growth in short haul markets. Legacy carriers, who have long ceded competitive ground to short haul LCCs, could see history repeating itself as long haul-short haul LCC partnerships gain more momentum and disrupt full service carriers’ long haul networks.
- How do long haul-short haul LCC partnerships enable growth and scale?
- Is partnering with a short haul LCC the best way for low cost long haul operators to expand their network?
- Are these new partnership arrangements set to disrupt network carriers’ long haul operations?
- How seamless are self connecting platforms and virtual interlining? What role can airports play in enabling connectivity?
- In which markets do long haul-short haul LCC partnerships proliferate?
- Can long haul low cost carrier operate as stand alone entities without short haul partners?
Moderator: Skylight Aviation, Managing Partner, Steven Dickson
Panel:
- Air Black Box Company, Head of Product, Timothy O’Neil-Dunne
- CAPA - Centre for Aviation, Advisor, John Thomas
- GMR Airports, Advisor, Tan Sri Bashir Ahmad
- Kiwi.com, Chief Executive Officer, Oliver Dlouhy
- SATS, Senior Vice President Sales & Marketing, Bob Chi
CAPA Americas Aviation SummitMore
Upcoming Event
18-19
Mar
Denver: CAPA Americas Aviation Summit
CAPA’s Americas Summit attracts the highest calibre of thought-leaders in the industry. Join us as we: explore a variety of markets connecting the Americas; unlock the US domestic system; and debate how airlines can grow their share of the travel pie.
CAPA Middle East & Africa Aviation SummitMore
Upcoming Event
29-30
Apr
Dubai: CAPA Middle East & Africa Aviation Summit
CAPA’s MEAS Summit attracts the highest calibre of thought-leaders in the industry. Join us as we: explore both markets growths opportunities; discuss infrastructure constraints and the airline and airport relationship; as well as emerging technologies.
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19-Mar-2019 12:19 PM
American Express GBT: 'We don’t see NDC as a threat... we want to deliver it the right way'
American Express GBT director - distribution John Bukowski, speaking at the CAPA Americas Aviation Summit, stated (18-Mar-2019) "We need to be agnostic about where content is coming in". Mr Bukowski added: "We don't see NDC as a threat… We want to deliver it the right way. We want to work together with the ecosystem to make sure we deliver it the right way. We need to keep an element of simplicity but make sure airlines' products are also being displayed properly".
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19-Mar-2019 11:58 AM
Delta Air Lines: No US-China open skies agreement until Chinese state subsidies are addressed
Delta Air Lines executive VP - chief legal officer Peter Carter, speaking at the CAPA Americas Aviation Summit, stated (18-Mar-2019) "We don't think there should be open skies between the US and China until [Chinese] state subsidies are addressed".
CAAC reported (15-Mar-2019) the following traffic highlights for Chinese airlines:
- Feb-2019:
- Passengers: 53.8 million, +11.1% year-on-year;
- Domestic: 47.9 million, +10.8%;
- International: 6.0 million, +13.5%;
- Cargo: 376,000 tonnes, -17.6%;
- Aircraft movements: 464,022, +9.1%;
- Revenue tonnes kilometres (RTKs): +7.5%;
- Domestic: +9.8%;
- International: +3.1%;On time performance: 80.6%, +0.5ppt;
- Flight hours: 979,000 hours, +6.9%;
- Passengers: 53.8 million, +11.1% year-on-year;
- First two months of 2019:
- Passengers: 107 million, +12.9%;
- Cargo: 1.0 million tonnes, -4.4%. [more - original PR - Chinese]
IATA forecast (18-Mar-2019) airfreight to gain market share over other transport modes. Under IATA's five year FTK forecast, growth for 2019 was downgraded from a forecast of 3.7% in Dec-2018 to just 2%, but average growth is expected to reach 4.4% over the next five years. IATA's prediction of modal shift is based on the trend over the past five years of airfreight growing faster than world trade due to the increased use of airfreight by industry sectors including pharmaceuticals, retail and e-commerce. IATA stated: "The past year has been challenging for air freight. Initially this was due to the passing of the business restocking cycle which had produced such strong growth in 2017. However, this cyclical weakness was joined at the end of the year, and into early 2019, by the damage from increased tariffs by the US on Chinese imports and vice versa, as well as indications of a modest slowing in global economic activity". IATA noted its forecast "is based on the US and China reaching a deal on trade". [more - original PR]
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19-Mar-2019 8:52 AM
Brazil Mol launches sixth round of airport concessions featuring Curitiba, Manaus and Goiania
Brazil's Ministry of Infrastructure (Brazil MoI) issued (18-Mar-2019) tender documentation for the sixth round of airport concessions, totalling 22 airports divided into three blocks. Interested parties have 30 days to manifest interest and develop feasibility, economic and environmental studies. The deadline for the studies is 150 days from 18-Mar-2019. The action is scheduled to occur early in 2H2020. To qualify for the process, interested parties must develop projects, studies and probes to model the concession of all 22 airports. The included airports comprise:
- South Block:
- Curitiba Afonso Pena Airport;
- Curitiba Bacacheri Airport;
- Foz do Iguacu International Airport;
- Londrina Airport;
- Navegantes Airport;
- Joinville Lauro Carneiro de Loyola Airport;
- Pelotas Federal Airport;
- Uruguaiana Ruben Berta Airport;
- Bagé Airport;
- North Block:
- Manaus Eduardo Gomes International Airport;
- Tabatinga Airport;
- Tefé Airport;
- Rio Branco Placido de Castro Airport;
- Cruzeiro do Sul Airport;
- Porto Velho Airport;
- Boa Vista International Airport;
- Central Block:
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