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Latest News Headlines

AirAsia and Airbus announced (19-Sep-2024) an MoU to advance research into aviation sustainability initiatives that reduce carbon emissions in the ASEAN region. The partnership aims to identify opportunities to support the commercial development of projects to expand sustainable aviation fuel supply in the region. The parties will also jointly investigate measures to improve air traffic management to reduce CO2 emissions. The organisations will identify applicable solutions developed as part of the Single European Sky ATM Research project and assess their suitability for adaptation in ASEAN. Capital A chief sustainability officer Yap Mun Ching Yap said the partnership addresses the "prerogative for the aviation sector to invest in and scale up in-sector solutions that are critical to decarbonising the industry". [more - original PR]

UN Tourism reported (19-Sep-2024) the following highlights from its World Tourism Barometer:

  • International tourism recovered to 96% of pre-pandemic levels for the seven months to Jul-2024, driven by strong demand in Europe and the reopening of markets in Asia Pacific;
  • Around 790 million tourists travelled internationally in the first seven months of 2024, approximately 11% more than 2023 and only 4% less than in 2019;
  • All regions recorded "a strong year so far", supported by increased air connectivity and visa facilitation;
  • The Middle East remained the strongest growing region, with international arrivals climbing 26% above 2019 levels in the first seven months of 2024. Africa welcomed 7% more tourists than in 2019, Europe recovered to 99% of pre-pandemic arrivals, the Americas reached 97% and Asia Pacific recorded 82% of pre-pandemic tourist numbers, reaching 85% in Jun-2024 and 86% in Jul-2024;
  • 67 out of 120 destinations had recovered to 2019 arrival numbers in 1H2024, based on countries reporting monthly or quarterly data. Some of the strongest performers were Qatar (+147% vs 2019), Albania (+93%), El Salvador (+81%), Saudi Arabia (+73%), Moldova (+50% as of Jun-2024) and Tanzania (+49% as of Jun-2024);
  • Data on international tourism expenditure reveals strong demand for outbound travel in 1H2024, especially from large source markets such as the US (+32%), Germany (+38%) and the UK (+40% as of Mar-2024), compared to 2019.

UN Tourism secretary general Zurab Pololikashvili stated: "International tourism is on track to consolidate its full recovery from the biggest crisis in the sector's history". Mr Pololikashvili said: "The ongoing rebound comes despite a range of economic and geopolitical challenges, highlighting the strong demand for international travel as well as the effectiveness of boosting air connections and easing visa restrictions". He added: "This recovery also highlights the growing need for tourism planning and managing to cater for its impacts on communities in a way that the immense socio-economic benefits are paired with inclusive and sustainable policies". [more - original PR]

Brazil's Government enacted (19-Sep-2024) the General Tourism Law, guaranteeing BRL6 billion (USD1.1 billion) in investments to expand the country's aviation industry. The credit fund will be invested in areas including supporting airlines with fleet and route expansion, fuel acquisition and development of renewable fuel projects. [more - original PR - Portuguese]

Boeing reported (19-Sep-2024) the following commercial market outlook for Southeast Asia for the period to 2043:

  • Passenger air traffic to more than triple over the next 20 years, driven by above global average economic growth and a rising middle class;
  • Passenger air traffic in Southeast Asia will grow at 7.2% p/a, well above the 4.7% global average;
  • Southeast Asian airlines will need 4720 new aircraft over 20 years, with narrowbodies making up 80% of projected deliveries;
  • Airlines in Southeast Asia will expand their share of the Asia Pacific fleet from 17% to 25%;
  • To meet long haul demand, widebodies such as the 787 will make up one in five deliveries in Southeast Asia;
  • The region will need more than 120 new and converted freighters to support increasingly diversified global supply chains and growing e-commerce demand;
  • Southeast Asian operators will need to hire and train 234,000 new pilots, maintenance technicians and cabin crew, more than tripling the region's active personnel;
  • Nearly 1200 new, more fuel efficient aircraft will replace ageing jets in the region over the next 20 years;
  • The region's available bio-based feedstocks can supply approximately 12% of global sustainable aviation fuel. [more - original PR]

ICAO announced (19-Sep-2024) Asia Pacific nations adopted the Delhi Declaration, with key commitments including:

  • Supporting the implementation of ICAO's global plans for safety, air navigation and aviation security;
  • Accelerating the adoption of new technologies to enhance safety and efficiency;
  • Investing in infrastructure to support sustainable growth and emerging aviation concepts;
  • Promoting gender equality across all levels of the aviation sector;
  • Reducing emissions and other environmental impacts of aviation;
  • Enhancing regional cooperation in air traffic management, search and rescue and aviation security.

ICAO council president Salvatore Sciacchitano said: "This declaration is a roadmap for the future of aviation in one of the world's fastest-growing regions. It demonstrates a collective will to embrace innovation while prioritising safety, security, and environmental responsibility". [more - original PR]

Alaska Airlines completed (18-Sep-2024) its acquisition of Hawaiian Airlines. The carriers are now working with the US FAA to secure a single air operator's certificate (AOC), which would enable the airlines to operate as a single carrier with an integrated passenger system. Pending the single AOC, Alaska and Hawaiian will continue to operate as separate carriers with no immediate changes to operations and will maintain separate websites, reservation systems and loyalty programmes. The airlines intend to maintain their distinct brands. Honolulu becomes the carriers' second largest hub, after Seattle, and will be a regional headquarters. Customers will be able to purchase tickets for both airlines through each of their websites "soon". The carriers plan to combine Mileage Plan and HawaiianMiles into a new unified loyalty programme, with more details to be released in mid 2025. Hawaiian Airlines stock will be de-listed and cease trading on the NASDAQ on 18-Sep-2024. The combined airlines serve 141 destinations with 350 aircraft and more than 33,000 employees. [more - original PR]

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SAS entered (17-Sep-2024) a seven year wet lease partnership with BRA - Braathens Regional Airlines, valued at approximately SEK6 billion (EUR530.3 million). BRA will operate several aircraft on behalf of SAS from 01-Jan-2025, providing capacity on key domestic routes in Sweden and feeding into the Copenhagen hub. The partnership is "aimed at securing reliable and efficient domestic air connectivity within Sweden", with SAS CEO Anko van der Werff highlighting it will not only enhance Swedish infrastructure, but also position Stockholm Arlanda Airport as a stronger central hub for domestic and international travel. SAS stated the "major domestic expansion" at Arlanda in 2025 will include increased frequencies to Visby, Gothenburg, Malmo, Ronneby, Lulea, Angelholm and Umea, while two new domestic routes to Kalmar and Halmstad are "under consideration". The expansion will increase SAS' domestic routes at Arlanda to 14. BRA will continue to operate all its routes as usual with Stockholm Bromma Airport as the main airport until Dec-2024, and will "adapt the organisation based on a streamlining of the business without the unprofitable scheduled operations". The fleet will be expanded and more pilots and cabin crew recruited, however roles related to ground services and administrative functions will be impacted, with formal notice to be given. The carrier stated: "The domestic market is significantly smaller than it was before the pandemic, while demand for contract flying has increased, leading to the decision to discontinue scheduled operations". BRA CEO Ulrika Matsgård stated that with the new SAS partnership, "we are now investing in the business area that has the best market conditions". [more - original PR] [more - original PR - II]

Avolon entered (13-Sep-2024) an agreement with Castlelake to acquire Castlelake Aviation Limited (CAL). CAL has USD5 billion in assets as of 31-Mar-2024, including a portfolio of 105 aircraft on lease and commitments for 13 new technology aircraft, two engines on lease and five loans. The portfolio is 68% narrowbody aircraft and 70% new technology aircraft, with a weighted average aircraft age of 4.7 years and a weighted average remaining lease term of 8.4 years. The CAL portfolio has up to USD3.3 billion of transferable debt available to Avolon on closing, with the balance funded from Avolon's existing sources of liquidity. The transaction is subject to the satisfaction of customary closing conditions and is expected to close in 1Q2025. Goldman Sachs & Co is acting as exclusive financial advisor to Castlelake and Milbank LLP is acting as its legal counsel. [more - original PR - Castlelake] [more - original PR - Avolon]

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