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Aviation Sustainability and the Environment, CAPA 04-Mar-2021
04-Mar-2021

Aviation Sustainability and the Environment, CAPA 04-Mar-2021

American Airlines and Deloitte collaborating to increase SAF production

Ryanair joins 'Fuelling Flight Initiative’

All Nippon Airways to reduce carbon footprint by transitioning to digital publications

US White house holds virtual climate change meeting with airline CEOs

FedEx aiming to achieve carbon neutral operations globally by 2040

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Asia-Pacific airlines' 10 big questions a year into COVID slump
02-Mar-2021

Asia-Pacific airlines' 10 big questions a year into COVID slump

It may seem like a lot longer, but it has been about a year since the initial surge in COVID-19 cases caused Asia-Pacific airline capacity to crash, in Mar-2020. 

Since then the airline industry has been through a downturn as deep as any it has ever experienced.

As the prospect of recovery looms closer, now is a good time to look ahead at some of the questions facing the region’s airlines.

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Aircraft deferrals will play a key role in Asian airline recovery
28-Feb-2021

Aircraft deferrals will play a key role in Asian airline recovery

Most Asia-Pacific airlines have been pursuing aircraft delivery delays in response to the COVID-19 crisis. Although several airlines acted quickly and secured deferrals relatively early in the pandemic, some important negotiations have occurred more recently. These latest arrangements highlight the differing approaches to deferrals being taken by the region’s airlines.  

Korean Air and Singapore Airlines are recent examples of airlines making substantial deferrals to push back spending commitments while also preserving their long term fleet renewal strategies.

The major Japanese airlines, however, are only making minimal postponements. The independent LCCs are generally trying to spread out their vast numbers of deliveries while some, such as IndiGo, are taking their aircraft as scheduled.

Few Asia-Pacific airlines will come through the pandemic without some degree of aircraft order deferments. In many cases these negotiations are key aspects of broader airline restructuring efforts.

Deferrals represent one of the main tools airlines have available for pausing growth and reducing fleet costs, along with early retirements, lease returns and order cancellations. Postponing rather than terminating orders is obviously preferable to manufacturers, particularly since Asia-Pacific airlines account for more of their order backlogs than any other region. Allowing delays also helps ensure customer survival.

Premium Analysis
Istanbul Airport positions for future battle with Gulf airports
26-Feb-2021

Istanbul Airport positions for future battle with Gulf airports

It has long been the case that Istanbul’s airports have regarded themselves as in competition with those in the Gulf – especially for Europe-Asia transit traffic – rather than with those in Europe. And Istanbul’s new airport does have some geographical and operational advantages in that respect, as did its predecessor.

Now, as the country plots its way out of lockdown and with the main tourist season looming, that battle looks to recommence.

Istanbul Airport’s CEO is bullish about future prospects, no doubt taking his cue from the Prime Minister, but both the airport and the state airline will have to overcome the challenge from a rejuvenated Qatar Airways and Doha Airport, which have almost flourished during the pandemic.

Premium Analysis
Philippines’ USD10bn airport project scrapped: politics?
26-Feb-2021

Philippines’ USD10bn airport project scrapped: politics?

Manila has long been regarded as an underachiever in aviation terms, the creaking Ninoy Aquino airport transporting far fewer passengers than peers at Singapore, Bangkok, Kuala Lumpur and Hong Kong, despite a high population to call on.

Expansion at Ninoy Aquino and at Clark International, formerly a US military airbase, was going some way to redressing the issue. But then along came not one, but two, proposals for new airports, each to handle 100 million or more passengers each year.

One of them, at Sangley Point, has been put on the back burner, although there will be a fresh tender.

But the hidden reason for the original process being cancelled suggests that Chinese firms, especially state-owned ones, may be about to find it more difficult to secure foreign airport development contracts.

CAPA Live

Next Event: 10-Mar
At a time when the aviation industry is searching for up-to-the-minute market intelligence, news, trend analysis and thought leadership, CAPA - Centre for Aviation delivers a virtual “Summit” on the second Wednesday of each month, jam-packed with information, data and live interviews. CAPA experts, global airline CEOs and other cutting-edge industry leaders present live from a next-gen virtual event platform.
The next CAPA Live event is in 6 days on 10-Mar-2021, and features the below speakers. Find out more
Kevin Brown
CEO, Perth Airport
Dean Fowles
Head of Travel, Asian Development Bank
Subashini Silvadas
Group Head, Strategy, Fleet & Network , AirAsia Group
Nejib Ben Khedher
Managing Director / Sr. VP / EVP, Emirates
Michael Gill
Executive Director, ATAG

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CAPA TV
USDOT: Which aviation policies will (and should) Secretary Buttigieg pursue?
Recorded at CAPA Live February

USDOT: Which aviation policies will (and should) Secretary Buttigieg pursue?

On 27-Jan-2021, the US Senate Commerce Committee approved US President Joe Biden’s nomination of former election rival Pete Buttigieg as the head of the US Department of Transportation (DoT). The original nomination, back in Dec-2020 was met with a slightly quizzical “interest” by those in Washington DC aviation circles.

Buttigieg dropped out of the Democratic Party presidential race to endorse Biden in March-2020 and was always on the list of potential cabinet nominees. Buttigieg, 39, takes on the DoT role as one of its youngest leaders and with no cabinet or government office experience beyond being mayor of South Bend, Indiana, where he grew up.

Many people in the US and elsewhere are still speculating on what Buttigieg will want to do with respect to aviation as DoT Secretary. In this timely discussion experts explore the first stages of the Buttigieg leadership and share their thoughts on what the priorities the newly appointed Secretary should undertake.

Moderator: International Aviation Law, Principal, Kenneth Quinn

Speakers:

  • Hyundai Advanced Air Mobility, Chief Policy Officer, Michael Whitaker

  • Association of Flight Attendants, International President, Sara Nelson

  • A4A, SVP Legislative and Regulatory Policy, Sharon Pinkerton

CAPA Live is the most sought-after monthly global aviation event. Taking place on the second Wednesday of each month, thousands of industry colleagues from across the globe tune in for their monthly dose of aviation and travel news, analysis, and in-depth interviews with industry leaders. Register here to be part of our growing community.

Latest News Headlines

391 news items were published to CAPA Members in the past two days. What could you be missing?
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European Commission President Ursula von der Leyen, via her official Twitter account, confirmed (01-Mar-2021) the European Commission will present a legislative proposal for a Digital Green Pass during Mar-2021. The aim is to gradually enable European citizens to move safely in the EU or abroad for work or tourism. The pass will be aimed at providing:

  • Proof that a person has been vaccinated;
  • Results of tests for those who could not get a vaccine yet;
  • Info on COVID-19 recovery.

Ms von der Leyen stated the pass "will respect data protection, security & privacy".

Wales' Minister for Economy, Transport and North Wales Ken Skates stated (03-Mar-2021) Cardiff Airport is "a vital gateway to Wales for business, tourists and general travellers" and is "vital for Wales's economic development that we have strong international connectivity". Wales' Government has agreed on a financial package to provide support to Cardiff Airport "in the medium term against a five year plan for the rescue and restructure of the airport". An investment of up to GBP42.6 million will be provided to the airport to restructure operations and secure long term viability. Mr Stakes added: "Separately, as sole shareholders of Cardiff Airport, we have made the decision on a purely commercial basis to write off GBP42.6 million of the airports debt", to maximise the likelihood of recovery of the Welsh Government loan. Wales' Government is also impairing the equity to reflect the loss of value as a result of COVID-19, which amounts to GBP46.3 million. [more - original PR]

IATA, via its Africa & Middle East regional briefing for Feb-2021, reported (01-Mar-2021) African carriers recorded a 5.4% year-on-year increase in CTKs for Dec-2020 and a 1% increase for the full year 2020. The region was the second best performer for Dec-2020 and 2020, after North America. Middle East airline CTKs increased 2.2% for Dec-2020, recovering to pre-crisis levels, but decreased 9.5% for 2020. Of the key regional markets, Middle East-North America recorded the strongest recent performance with 12.3% growth in late 2020. [more - original PR]

COMAC, via its official WeChat account, announced (04-Mar-2021) the delivery of Jiangxi Air's fourth ARJ21 (B-650U). The aircraft is COMAC Finance Company's first financial lease aircraft since its establishment. Jiangxi Air is scheduled to receive its fifth ARJ21 in Jun-2021. 

CemAir and Proflight Zambia finalised (01-Mar-2021) an interline and codeshare agreement to combine their networks between South Africa and Zambia. The agreement will enable travel on a single ticket between the carriers' 15 destinations including Johannesburg and Cape Town for CemAir and Lusaka, Ndola and Livingstone for Proflight. CemAir CEO Miles van der Molen said the agreement is "the logical next step in our long partnership with Proflight" and described the partnership as a "significant integration". [more - original PR]

IATA director general and CEO Alexander de Juniac reported (03-Mar-2021) the roll-out of coronavirus vaccines and the increase in testing capacity is "good news" for airlines, however a "significant improvement" in the air passenger market is unlikely until governments ease travel restrictions. IATA continues to focus on being prepared for when governments are able to ease restrictions and is engaged in ongoing discussions with governments about their plans and benchmarks for re-opening their borders to air travel. [more - original PR]

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Latest Reports

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Preparing for a Gathering Storm: A 12-Point Survival Plan Specifically for LCCs

IATA AGM CAPA Daily - Monday 3-Jun-2019

Airline Leader

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Aviation returns to the 1930s

Issue 53
  • There has been much talk about the post-COVID-19 industry reverting to the profile of the 1970s, but in two very important ways the real timeframe to compare is the 1930s.
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Global Outlook 2020: A look into the coming decade, expect massive change

Issue 52
  • If the first two decades of the century were transformational for the aviation industry, the 2020s will be revolutionary.
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