CAPA Insights

In Aug-2024, Oman Air CEO Con Korfiatis announced the carrier plans to retire its first class product amid "diminished demand".

The airline will shift focus to its business class product with the launch of the new Business Studio inflight cabin, initially available on some of Oman Air's London, Frankfurt and Bangkok services from 09-Sep-2024.

Mr Korfiatis states the change is "more closely aligned with the demographics targeted by the national tourism objectives", including wellness, adventure and 'MICE' (Meeting, Incentives, Conferences and Exhibitions) markets.

Türkiye has stood out positively among emerging global markets following a change in economic policies over the last year.

In the current decade there has been a steady recovery and a faster pace in growth in Turkey's GDP figures which have reached their all-time highest values by the end of 2023.

Turkish Finance Minister Mehmet Simsek has said Türkiye is on the verge of a sharp fall in inflation, predicting it would slow to mid-teen levels next year and help bring more international investment.

New Zealand's Government has announced plans to increase the International Visitor Conservation and Tourism Levy (IVL) from NZD35 (USD21.63) to NZD100 (USD61.79) from 01-Oct-2024.

While government offered reassurances the move would not hinder New Zealand's tourism industry, it has sparked instant criticism from Tourism Industry Aotearoa and IATA.

Kazakhstan is taking great strides towards becoming a global hub, with new agreements signed and milestones achieved in 2024, however plenty of work remains ahead.

The Malaysian Aviation Commission released an amended Malaysian Aviation Consumer Protection Code 2024 which took effect on 02-Sep-2024. Under the amended code, airlines are now required to offer the option of a refund in the original mode of payment if a flight is delayed by more than five hours.

Australia has also proposed an overhaul of its passenger protections and competition monitoring under the Aviation White Paper, with plans for a new independent aviation ombudsperson and an Aviation Customer Rights Charter.

In Dec-2023, Alaska Airlines entered a definitive agreement to acquire Hawaiian Airlines for a transaction value of approximately USD1.9 billion. Less than nine months later, the merger is proceeding with little regulatory pushback, with the review period during which the carriers were prohibited from closing the agreement under antitrust legislation expiring uneventfully.

This is a very different story than the unconsummated merger between JetBlue Airways and Spirit Airlines, which faced heavy scrutiny from the US Department of Justice (DoJ) in the form of an antitrust lawsuit. The transaction was eventually blocked by a US District Judge in Jan-2024, and the companies terminated their merger agreement in Mar-2024.

Africa represents the last frontier for aviation development, but impotent government transport strategies and ongoing protectionism practices have continued to limit its success.

There is a mild hope of regulatory progress, while perhaps the greatest optimism attaches to some very persistent attempts to expand LCC operations in the region.

There is a continued determination to overcome the challenges facing the air transport industry across the Continent, but growing links with carriers in the Middle East is not seen by all as being in the best interests of Africa's fragile aviation sector.

The 'carrot and stick' dichotomy is one which has pervaded industry conversations around SAF for years.

The analogy has been used in recent times to describe the difference between the US' incentive-based approach to SAF production, as well as a European model which prioritises regulation.

Recent comments by IATA director general Willie Walsh and United Airlines CEO Scott Kirby have reestablished this dynamic, which appears to also be typified by the news cycle in the weeks immediately following each man's claims.

ITA Airways will launch five times weekly Rome Fiumicino-Bangkok Suvarnabhumi service on 16-Nov-2024, identifying Thailand as a key market for leisure and business travel.

Bangkok will be ITA's third destination in the Asia Pacific/Indian Subcontinent region, following successful routes to Tokyo Haneda and Delhi, both of which have been expanded to daily frequency.

ITA remains the sole scheduled operator on these routes, distinguishing itself from Asian competitors that serve other major cities like Beijing, Seoul and Singapore.

Nicaragua's Government, in collaboration with China CAMC Engineering, recently commenced construction on an ambitious USD400.49 million project to expand Punta Huete Airport.

The government intends to transform the currently unused (for commercial operations) infrastructure into an international airport fit to serve as a hub for transportation, logistics and international trade.

These ambitions will be supported by the construction of a 3,600m runway, which would dwarf Managua Augusto Cesar Sandino Airport's (MGA) 2,442m length.