WestJet announced (29-Sep-2022) a purchase order for 42 Boeing 737 MAX 10s, with options for an additional 22 aircraft. The 230 seat aircraft offers a range of 3100 nautical miles. WestJet CEO Alexis Von Hoensbroech stated: "The 737 MAX 10 will be a game changer, with one of the lowest costs per seat among mid-range aircraft. This will foster our low-cost positioning and affordability for Canadians. In addition, with its lower fuel consumption and reduced emissions, the MAX 10 will further improve the environmental footprint of our fleet". The carrier currently has over 15 737 MAX 8 aircraft in its fleet. [more - original PR]
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Australian airlines are looking to new aircraft types and a flurry of consolidation moves to broaden the scope of their operations in the country’s vital regional aviation sector.
Qantas is planning to introduce Airbus A220s on its regional network, and the airline is also seeking approval to complete its acquisition of Alliance Aviation.
Meanwhile, Regional Express Holdings (Rex) is considering how its takeover of National Jet Express could enhance its own fleet strategy.
The fleet and acquisition moves will further shake up what has been a very dynamic market sector for Australia’s airline groups.
This regular CAPA report provides a summary of recent aviation sustainability and environment news. This latest issue features:
IATA: Traditional fuel suppliers must turn their attention to SAFs
WestJet operates second SAF-powered flight
Air Canada selects CHOOOSE as new carbon offset programme provider
Curacao Hato International Airport to focus on cargo and electric aviation in new business strategy
Cebu Pacific operates first SAF powered commercial flight
Premium Analysis
TAV Airports bids to operate Lagos Airport: part one – legal issues cloud the prospectOver several years now attempts by the Nigerian government to privatise the country’s four main airports by concession have been consistently and successfully resisted by a range of pressure groups.
The latest attempt, which began a year ago, now sees Turkey’s TAV Airports enter the fray, leading a consortium for the Lagos Murtala Muhammed International Airport (MMIA), the country’s busiest, and one where there is already a degree of privatisation, as one of its terminals is privately managed.
The problem is that India’s GMR has also launched a bid, and that company, like TAV, is part-owned by Groupe ADP. That has given a platform for the anti-privatisation elements and there are strong words being bandied about.
On paper, Lagos wouldn’t necessarily attract many investors. But they will take a macroeconomic view – population, a growing middle class, and a solid industrial base focused on Nigeria’s oil exports.
This is part one of a two-part report.
CAPA analysis of quarterly capacity projections shows schedules for Europe are much firmer than at any other time in the COVID-19 era. Moreover, projections for 4Q2022 are higher than one month ago.
No previous COVID-era quarter has enjoyed an increase to capacity projections from a month out to the quarter's start. The pattern had been a consistent one of cuts.
Europe's total seat capacity is at 85.9% in the week commencing 26-Sep-2022, a shortfall of 14.1% against the equivalent week 2019. Europe remains fifth in the regional ranking, above Asia Pacific, where capacity is down by 22.6% versus 2019, but below the Middle East, where capacity is down by 12.0%. Africa capacity is down by 8.5%, North America by 7.1%, and Latin America is down by 4.5%.
Europe's capacity as a percentage of 2019 levels has hardly shifted since late May-2022. In spite of positive developments in 4Q2022, it could end up similar to the 87% achieved in 3Q2022.
After 74% in 1Q and 84% in 2Q, Europe's capacity recovery has lost momentum through 2022.
Premium Analysis
Qatar gears up for FIFA World Cup by reopening old Doha airportThe success or otherwise of a global sporting event such as the Olympic Games and the football World Cup can often hang as much on the ability of a country’s infrastructure to handle the demand placed on it as much as what happens on the field of play.
If a country gets it right it will go unnoticed. If it gets it wrong it most certainly will be noticed.
Qatar began to enhance its main Hamad International Airport, which only opened in 2014, in time for the World Cup, and the necessary works will be completed accordingly. The country benefits from having all the activity concentrated on one gateway airport – unlike Brazil, for example, which had to allocate different airports to different countries.
But taking a belt and braces approach, it will also reopen the previous gateway, Doha International; at least, for the duration of the event.
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The CAPA Asia Aviation Summit is the region’s pre-eminent gathering of aviation and travel industry executives, offering a unique blend of high level aviation content and management insights.
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CTC Australasia Corporate Travel Summit returns to Sydney, Australia on 22-23 November 2022 and will feature CTCs Sustainability Awards.
Recorded at CAPA Australia Pacific Aviation Summit, 3rd week of Sep 2022
Airline CEO Keynote with Virgin Australia Group CEO, Jayne Hrdlicka
Virgin Australia Group, CEO, Jayne Hrdlicka
Singapore Airport Terminal Services (SATS) reached (28-Sep-2022) an agreement to acquire Worldwide Flight Services (WFS) from an affiliate of Cerberus Capital Management for EUR2.25 billion. Following the close of the transaction, WFS will become a wholly owned subsidiary of SATS and the WFS management team will continue to lead the business. Through initiatives that will include cross-selling, network expansion and deeper e-commerce cargo partnerships, the combined entity is expected to capture meaningful run rate EBITDA synergies in excess of SGD100 million (USD69.6 million). The parties stated that with over 200 cargo and ground handling stations in over 20 countries, the combined company is expected to be the "largest global air cargo handler". The transaction is subject to customary regulatory and SATS shareholder approval and is expected to close by 31-Mar-2023. [more - original PR] [more - original PR - II]
Virgin Atlantic Airways announced (27-Sep-2022) plans to join SkyTeam in 1Q2023, becoming the alliance's first and only UK member airline and enhancing its transatlantic network and services connecting to London Heathrow Airport and Manchester Airport. Virgin's entry into the alliance builds on its transatlantic JV partnership with Delta Air Lines and Air France-KLM. SkyTeam CEO Kristin Colvile stated: "Virgin Atlantic will benefit from increased opportunities to expand its global network through partnerships and synergies [and] customers will have more ways to earn and burn miles while enjoying the service for which Virgin Atlantic is renowned". [more - original PR]
Canada's Government released (27-Sep-2022) its Aviation Climate Action Plan, an initiative which:
- Presents a vision of net zero emissions by 2050 for the Canadian aviation sector;
- Sets a "purposefully ambitious" goal of 10% for the use of sustainable aviation fuel by 2030;
- Includes key pathways and actions that the government and the aviation industry intend to work on to improve efficiency and reduce pollution from aviation activities.
The plan will undergo a series of updates from 2024, which will include reassessing long term projections, strengthening short term commitments, setting interim targets and ensuring continued alignment with Canada's climate commitments. [more - original PR]
Norse Atlantic Airways announced (27-Sep-2022) the UK Civil Aviation Authority (CAA) granted the carrier an air operator certificate (AOC) and operating licence, enabling it to begin direct flights from the UK. The carrier plans to operate between London Gatwick Airport and several US destinations, subject to further regulatory approvals, in particular serving routes that are currently "unserved by direct flights or lacking sufficient capacity". CEO Bjorn Tore Larsen said the carrier will employ local pilots and cabin crew at its London Gatwick base and has established "close working relationships" with the British Airline Pilots' Association, the Unite cabin crew union and the US Association of Flight Attendants-CWA. Mr Larsen added: "We look forward to ramping up our operations between London and the US ready for our summer 2023 schedule". [more - original PR]
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28-Sep-2022 10:30 AM
ACI EUROPE to lead airport task force within Alliance for Zero-Emission Aviation
ACI EUROPE joined (27-Sep-2022) the European Commission's Alliance for Zero-Emission Aviation, a voluntary initiative bringing aviation stakeholders together to prepare Europe for hydrogen and electric flight. As previously reported by CAPA, the alliance was launched in Jun-2022 and aims to address issues including fuel and infrastructure requirements of hydrogen and electric aircraft at airports, sourcing of renewable fuels and electricity, standardisation and certification, practices for operators and air traffic management. A dedicated ACI EUROPE task force comprising Aena, Aeroporti di Roma, Brussels Airport, daa, Geneva Airport, Groupe ADP, Munich Airport, Royal Schiphol Group, SEA Milan Airports and Swedavia will drive the airport industry contribution to the alliance under the supervision of the association's Environmental Strategy Committee. ACI EUROPE director general Olivier Jankovec said: "Supporting the development and deployment of alternative propulsion technologies is a natural continuation of our work to limit the industry's impact on the climate", adding: "Airport infrastructure projects are developed to last decades, so it is of fundamental importance that the development of hydrogen and electric powered aircraft technologies goes hand-in-hand with the adaptation and development of the necessary airport infrastructure". [more - original PR]
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