Eurocontrol reported (15-Jun-2018) 9.3 million minutes of ATC delays were experienced in 2017 and that 2018 has already seen 4.3 million minutes of delays. Eurocontrol forecast that as a result of strikes, capacity/staffing shortages and weather, it expects 14.3 million minutes of delay for 2018 - a 53% year-on-year "deterioration". [more - original PR]
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18-Jun-2018
Holidays: no rest for Europe's LCCs
European tour operators have always sold integrated package holidays, combining flights, hotel rooms (or cruise berths) and extras such as car hire, excursions and events. This has offered not only convenience, but typically value for money compared with assembling all the elements separately. Moreover, in the pre-internet era, it was almost impossible to do it all without a travel agent.
Then LCCs came along and things changed. Their core product was flight seats, which they offered very cheaply, but they also started to offer third-party travel services, such as hotels and car hire, through their websites. This gave consumers the opportunity to self-assemble their own package holiday.
In response, the integrated tour operators started to unbundle their package holidays. Their charter airlines began to increase their seat-only offer and to grow scheduled services.
Now, a number of leading low cost airlines, in partnership with third party suppliers, are bundling up the distinct elements of a holiday (that they have long sold) to offer package holidays. Recent comments from easyJet about growing its share in this market and Ryanair's ongoing plan to be the 'Amazon of travel' demonstrate LCC ambitions in holiday sales.
Premium Analysis
Duesseldorf after airberlin: new Ryanair base, Eurowings growthAirberlin had a 21% share of seats in the Duesseldorf airport system in Sep-2017, but more than two thirds of this capacity will be absorbed by other airlines in Sep-2018, resulting in a total capacity reduction of only 6%, according to data from OAG. Others are taking the opportunity to grow, particularly at the city's principal facility, Duesseldorf Airport (DUS).
Ryanair opened its 86th European base at DUS in Jun-2018, with one aircraft based at Germany's third biggest airport. It has launched three new Spanish routes from DUS to Alicante, Malaga and Palma, which it also serves from the much smaller Duesseldorf Weeze Airport. It is now going head to head with DUS market leader Eurowings on these routes.
Duesseldorf illustrates a number of key features of the current German airline landscape: the demise of airberlin and the subsequent growth of the Lufthansa Group, led by Eurowings; the growing ambitions in Germany of the leading LCCs Ryanair and easyJet and their acquisitions of former Air Berlin Group capacity; and the expansion of Germany's non-Lufthansa Group airlines (Condor, TUIfly, SunExpress Germany and Germania).
On occasion, discussion in the US market place turns to consolidation, and whether there are any remaining potential combinations left in the country’s mature aviation space. After a CEO change at Spirit two years ago, speculation mounted that the stage was being set for a tie-up between it and the fellow ULCC Frontier.
Spirit Airlines and Frontier Airlines have both evolved during the past couple of years. Each airline has worked to improve its operational performance and customer sentiment to varying degrees. Combined, those airlines could arguably reach a certain level of scale more quickly, but for now, it appears that each company is planning to chart its own course in the US market.
The situation that prevailed for Spirit and Frontier a couple of years ago remains in place – each company is at varying stages of its ULCC journey, and is approaching the US marketplace with a slightly different strategy.
16-Jun-2018
CAPA Airline CEOs in Sydney: A photo story
CAPA - Centre for Aviation recently hosted its first ever Airline CEOs event in Sydney. The event brought together some of the biggest names in aviation to discuss the topics impacting the entire industry.
The evening session included a CEO Roundtable Dinner, a high level and often light hearted discussion of the major trends in partnerships and where alliances are heading. Hosted by leading media personality, CNN’s International Business Correspondent, Richard Quest, the dinner included:
- Avianca, CEO, Hernán Rincón
- Cathay Pacific, CEO, Rupert Hogg
- Embraer, President & CEO, Commercial Aviation, John Slattery
- IAG, CEO, Willie Walsh
- Jet Airways, Chairman, Naresh Goyal
- Kenya Airways, Group MD & CEO, Sebastian Mikosz
- Qantas Airways, CEO & Managing Director, Alan Joyce
- Regional Express, Deputy Chairman, Hon John Sharp
- WestJet, President & CEO, Ed Sims
- WTTC, President & CEO, Gloria Guevara
Premium Analysis
Italy-USA aviation market: Milan the rising starBased on OAG data for the number of seats in the peak week (commencing 16-Jul-2018), the market between Italy and the United States has grown by 55% over the past five years.
Within this market, services from Milan Malpensa have grown most rapidly, with capacity up by 140% since Jul-2013.
Both Air Italy (Milan to New York JFK and Miami) and Norwegian (Milan to Los Angeles) have launched flights to the US from Malpensa in Jun-2018. Norwegian has also launched services from Rome to Newark, Los Angeles and Oakland, but capacity growth on Rome-US is slower than Milan-US (and Venice-US).
Rome is still the biggest Italian airport in this market, with 58% of Italy-US seats, but this has fallen from 65% five years ago. Milan's share of Italy-US seats has gained 10ppts over the past five years, to reach 29% in Jul-2018. Moreover, Milan has more airlines on US routes than Rome does.
Philippine Airlines president Jaime Bautista discusses PAL’s new fleet of A321neos and A350-900s. The first A321neo, featuring 12 lie flat business class and 154 economy seats, was delivered at the end of May-2018. PAL will take six 166-seat low density A321neos this year and deploy the aircraft on existing routes to Australia and new routes to Delhi, Mumbai and Sapporo. The first A350 is slated to be delivered in Jul-2018 and used to launch nonstop flights to New York in Oct-2018. PAL will take six 295-seat A350s by the end of 2019 and is looking at using the type on potential new routes to Chicago and Seattle as well as replacing 777-300ERs on Manila-London. PAL is also looking at launching services to Tel Aviv in Israel, initially using its A340-300 fleet.
CAPA Perth Aviation & Corporate Travel Summit
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The CAPA Australia Pacific Summit (1-2 August) will gather 800+ aviation and corporate travel experts including CEOs from airlines and airports across Australia, New Zealand and the Pacific Islands plus a selection of leaders serving the region.
Corporacion America Airports SA reported (15-Jun-2018) the following traffic highlights for May-2018:
- Passengers: 6.4 million, +6.9% year-on-year;
- Domestic: 3.5 million, +8.5%;
- International: 2.3 million, +4.0%;
- Transit: 629,000, +8.7%;
- Cargo: 32,100 tons, +6.8%;
- Aircraft movements: 73,300, +5.4%. [more - original PR]
Airports Council International (ACI) reported (15-Jun-2018) the following traffic highlights for Mar-2018:
- Passengers: +8.1% year-on-year;
- Domestic: +6.3%;
- International: +10.5%;
- Cargo: +2.4%;
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- Domestic: +3.6%;
- International: +1.9%. [more - original PR]
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18-Jun-2018 12:30 PM
Eurocontrol and EC formalise work programme on Single European Sky performance/charging scheme
Eurocontrol signed (15-Jun-2018) an initial 'work programme' detailing how the agency will cooperate with the European Commission (EC) in the area of the Single European Sky's performance and charging schemes. "This work programme implements the cooperation agreement, which was agreed with the EC already late last year", commented Eurocontrol director european civil-military aviation Philippe Merlo. Challenges in the work programme for Eurocontrol's Performance Review Unit include:
- Conducting annual technical assessments of the compliance of unit rates, including reporting on costs exempt from cost sharing;
- Working on the US-Europe performance comparisons in cooperation with the US FAA;
- Performing ad-hoc analysis in support to the areas of performance and charging that require the specific expertise and competences of Eurocontrol, upon request of the Commission;
- Promoting global and regional performance measurement within ICAO.
The work programme will be reviewed and amended on a regular basis. [more - original PR]
Atlanta Hartsfield-Jackson International Airport reported (15-Jun-2018) the following traffic highlights for Apr-2018:
- Passengers: 9.0 million, +8.0% year-on-year;
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- Domestic: 8.0 million, +8.7%;
- International: 1.0 million, +2.5%;
- Cargo: 58,461 tonnes, +7.8%;
- Freight and Express: 54,893 tonnes, +7.0%;
- Domestic: 18,450 tonnes, -3.5%;
- International: 36,443 tonnes, +13.2%;
- Mail: 3568 tonnes, +22.6%;
- Freight and Express: 54,893 tonnes, +7.0%;
- Aircraft movements: 75,193, +4.9%;
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- Domestic: 68,586, +5.2%;
- International: 6607, +2.4%. [more - original PR]
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18-Jun-2018 11:16 AM
Sao Paulo Guarulhos International Airport reports May pax the strongest in a decade
GRU Airport Sao Paulo Guarulhos International Airport reported (15-Jun-2018) the following traffic highlights for May-2018:
- Passengers: 3.4 million, +16.0% year-on-year;
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- Domestic: 2.2 million, +21.2%;
- International: 1.2 million, +7.7%;
- Aircraft movements: 24,693, +15.1%;
- Domestic: 18,168, +17.2%;
- International: 6525, +9.5%.
According to the CAPA Airport Traffic Database, May-2018 marked the airport's 13th consecutive month of passenger traffic growth. [more - original PR - Portuguese]
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