flypop announced (28-Jun-2022) the formation of a joint venture with Hi Fly, which will expand the carriers' existing cargo collaboration to include passenger flights departing the UK. Over the next few weeks, flypop will make additional aircraft available to be operated by Hi Fly as part of the partnership. Hi Fly president Paulo Mirpuri said the agreement will benefit from the carrier's "leading expertise in Airbus widebody aircraft", with flypop CEO Nino Singh Judge adding: "We expect a surge in demand in and out of our home market over the coming months and we look forward to serving our customers with the newly formed joint venture... We are in active discussions with several parties to grow the fleet further in the near future and look forward to welcoming these aircraft to the joint venture". [more - original PR]
Before the COVID-19 pandemic, low cost airlines were working to make inroads in Argentina.
Its previous government, under former president Mauricio Macri, introduced more liberalised policies that paved the way for the establishment of low cost operators. His administration allowed airlines to expand domestically, and international operators to serve Argentina’s secondary market.
Aspiring LCCs also received a break when the government lifted the long-standing fare floor in Argentina during the summer of 2018.
The last two years seems somewhat like an eternity, but it appears the country’s budget operators have held their own as other changes have occurred in the marketplace during the crisis – most notably, the exit of Argentina’s second largest domestic operator, LATAM Airlines Argentina.
Now the question is how the competitive landscape in Argentina will evolve, and whether the government will encourage a level playing field.
Helsinki Airport’s 10-year development plan nearing completion; focus on transfer passengers
Between them, Helsinki Vantaa Airport and Finnair had established the airport and airline jointly as the fastest way to travel indirectly between Western Europe and Asia Pacific.
The COVID-19 pandemic cut back hugely on demand between the two regions.
Nevertheless, a USD1 billion infrastructure overhaul continued, including the centralisation of passenger movements through a single terminal.
But although Finnair has the fleet to resume the level of activity as soon as the pandemic’s impact wanes in Asia Pacific, a new factor has entered the equation – namely, the Ukraine war, and how it has closed down Russian airspace.
Rather than focusing on expansion, Finnair’s CEO is now looking across the Atlantic rather than at North Asia, and is even warning of having to resize the company.
Europe's seat capacity is at 86.4% in the week commencing 27-Jun-2022, which is a shortfall of -13.6% against the equivalent week in 2019. This is the sixth successive week in a narrow range, signalling a levelling-off of the capacity recovery towards 2019 levels.
Europe has slipped to fifth in the regional ranking, above only Asia Pacific, where capacity is down -23.1%. In the Middle East capacity is down -11.4%, while North America capacity is down -10.2%, Africa is down -6.5%, and Latin America -4.1%.
As 2Q2022 draws to a close, its seat numbers will end up at 84.3% of 2019 levels, continuing an improving trend over five successive quarters. Seat capacity for 3Q2022 is currently projected at 88.8%. Projections are now more stable and more realistic than at earlier stages of the COVID-19 pandemic.
However, further modest trimming of this peak summer quarter is likely, given staffing constraints. The final outcome for 3Q may not exceed 2Q's percentage by much – if at all.
'The new Dubai?' – Pakistan's Gwadar Airport certainly a hugely strategic facility on Arabian Sea
For two decades or so now Dubai and its airport have presided over air transport and tourism in the Persian Gulf and Gulf of Oman. Now it is set to face a challenge from Gwadar on the other side of the Gulf, 500km away in Pakistan and close to the Iranian border. That, at least, is what some people would have you believe, although such optimism is, at the very least, overstated.
What is happening at Gwadar, though, is the construction of a giant port (which actually began 20 years ago) and associated free trade area modelled on the Special Economic Zones of China, together with a floating liquefied natural gas facility connected to the Iran-Pakistan gas pipeline.
The new airport, now set to open in Mar-2023, is only a small part of this huge enterprise, but it could turn out to be a very significant one, for freight if not initially for passengers. Then again, Gwadar has many beaches, natural beauty spots and is favoured by domestic holidaymakers.
If Chinese money goes into developing tourism as well, then ‘The New Dubai’ claim could one day be substantiated.
Over the past 20 years or so full or partial privatisation of airports by way of concession in South America has become de rigueur, and some countries, notably Brazil, are reaching the end of their procedures.
Peru already has most of its airports privatised in this manner, including the capital, Lima’s, airport.
Now half of the remaining ones are to receive government financial largesse to replace tiny terminals and improve runways, but at the same time the Transport Ministry is putting out an open invitation for the private sector to co-operate by way of unspecified public-private partnerships.
Passenger traffic is returning, having gained in preference over the bus, but with capacity still at a premium and uncertainty as to what the investors would gain out of such a deal, this will be the acid test of investor sentiment in Peru and the wider areas of Upper South America.
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Arajet Airline Executive Officer & Founder, Victor Pacheco at the CAPA Americas Aviation & LCCs 2022 Summit
Victor Pacheco, Executive Officer & Founder of the Arajet Airline, spoke to CAPA TV on the sidelines of the CAPA Americas Aviation & LCCs Summit about its impending launch.
CAPA Events are hosted in key markets around the world and attract the highest calibre of thought leaders and decision makers in the aviation and travel industry. Delegates are provided with unprecedented access to the latest data, insights and trends from our global team, in addition to valuable networking opportunities with executives across all sectors of the aviation and travel industry. Review CAPA’s full events calendar here.
Korean Air announced (28-Jun-2022) plans to undertake works to re-modify three Boeing 777s for passenger operations, removing cargo pallets and reinstalling 269 passenger seats, from Jul-2022. The airline modified 10 777s for cargo operations in 2020, in response to increased demand for cargo transport following the outbreak of the COVID-19 pandemic. Passenger cabin restoration works will take approximately 10 days per aircraft. Korean Air also plans to re-modify one A330 for passenger operations in Jul-2022. [more - original PR - Korean]
Association of Asia Pacific Airlines (AAPA) reported (28-Jun-2022) the following international traffic highlights for May-2022:
- Passengers: 7.3 million, +461% year-on-year;
- RPK: +452%;
- ASK: +115%;
- Passenger load factor: 71.5%, +43.7pp;
- FTK: -5.6%;
- AFTK: +1%;
- Cargo load factor: 69.4%, -4.8pp. [more - original PR]
Lufthansa Group announced (27-Jun-2022) it will reactivate its A380 aircraft from summer 2023, in response to the sharp increase in demand and delayed delivery of ordered aircraft. The company has 14 A380s in deep storage in Spain and France, of which six have been sold. Lufthansa outlined it is currently assessing the number of A380s it will reactivate as well as the destinations to which it will operate. As previously reported by CAPA, the group already purchased seven Boeing 787-9s to fill capacity gaps created by the delayed delivery of the 777-9. The 777-9 was originally scheduled for delivery in 2023, but is currently advised for 2025. [more - original PR]
Qantas Group international operations to reach 90% of pre-coronavirus levels in FY2023
Qantas Group announced (24-Jun-2022) no changes to its international capacity plans, with operations increasing from approximately 50% of pre-coronavirus levels to 70% by the end of Q1FY2023 to help meet demand. Growth will continue as additional A380 aircraft are returned to service, with total group international capacity to reach 90% of pre-coronavirus levels by Q4FY2023. [more - original PR]
LATAM Airlines Group announced (23-Jun-2022) plans to eliminate 100% of single use plastics from its operations by 2023. Planned initiatives to achieve the goal include:
- Reusable bags to cover rest items in international premium business cabins;
- Replace plastic used for wrapping loads with reusable blankets or waterproof covers;
- Separation of plastic and aluminium onboard domestic flights in Chile, Peru, Colombia and Ecuador.
As previously reported by CAPA, LATAM recently launched new sustainable amenity kits for premium business travellers. The company will also announce changes in the materials used for all elements of economy cabin service "in the coming weeks". [more - original PR]
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This report, jointly prepared by CAPA - Centre for Aviation (CAPA) and Envest Global (Envest), is designed to highlight some of the core elements of sustainable aviation, methods of quantifying individual airline sustainability credentials, and emissions.