Analysis Reports

If there is one word to describe Puerto Rico – it is 'resilience'. During the past few years the island has experienced a raft of challenges that have put its resiliency to the test, and by nearly all accounts Puerto Rico, particularly its tourism sector, has risen to the occasion and used the lessons learned to make tourism a formidable force. 

Even with seismic activity that struck the island earlier this year, prospects for Puerto Rico’s tourism sector look bright in 2020. There are also opportunities in the meetings and conventions sector, as Puerto Rico’s convention centre is located in a burgeoning district full of hotels and restaurants. The island’s geographic location could grow in attractiveness for meetings and conventions, especially for US meeting planners. 

There is no shortage of excitement about the potential for continued growth in Puerto Rico’s tourism sector as its tourism economy has been reimagined. 

Japan Airlines studying feasibility of production and sales of sustainable aviation fuel

Southampton Airport completes first phase of fixed electrical ground power programme

London Stansted Airport: We need to encourage reduction in emissions from road traffic

Sydney Kingsford Smith Airport outlines 2020 TCFD roadmap

Sydney Kingsford Smith Airport 'on the pathway' to carbon neutrality

France’s Groupe ADP has signed a share purchase agreement for the acquisition of a 49% stake in GMR Airports, representing investment of INR107.8 billion (USD1.5 billion). The deal came out of the blue, as one had already been agreed with a consortium led by India’s Tata Group.

Groupe ADP, which operates the two main Paris airports, as well as associated infrastructure in the French capital and airports and terminals around the world, reported a very positive FY2019, with revenue increasing by 17.3% and EBITDA by 5.5%.

Phase one of the acquisition will be completed "within the coming days" (the announcement was made on 19-Feb-2020), for a 24.99% stake, and the second phase, for a further 24.01%, is to be concluded in the coming months and is subject to certain regulatory conditions: notably, obtaining the customary regulatory approvals – in particular, from the Reserve Bank of India.

In terms of passenger numbers, the combined entity is claimed to be the biggest airport operator in the world, with 336 million passengers in 2019.

But is it really ‘global’, as it claims to be? And what potential dangers yet lurk for either party?

North American Airbus A220 customers continue to lavish praise on the aircraft, with the term 'game changer' uttered often when JetBlue Airways and Air Canada discuss the possibilities that the A220 opens up. 

Air Canada has recently started taking delivery of the A220 and JetBlue is preparing to accept delivery of is first aircraft later in 2020.

Air Canada cites the potential of the aircraft to open up profitable new city pairs, and JetBlue is convinced the aircraft will improve its cost structure. 

Combined, Air Canada and JetBlue have 113 A220s on order, and once JetBlue receives all 70 of its A220s, it will be one of the largest operators of the aircraft in North America. 

It is not surprising that Delta Air Lines has declared fairly ambitious plans to become carbon neutral over the next decade and is spending USD1 billion to meet that goal. Throughout 2019 Delta’s executives fielded questions about sustainability, and the airline’s management pledged that in 2020 the company would exert more of an active voice in conversations about aviation’s role in combating climate change. 

Delta’s plans to achieve carbon neutrality have been widely deconstructed since the airline unveiled its environmental goals, and in some ways there are more questions than answers regarding how the company will attain its targets. But Delta seems aware of the challenges associated with its goals, particularly with growing scepticism about carbon offsetting. 

With limited room for manouevre in the short term, all airlines are searching for ways of mitigating environmental damage, most tellingly by the use of newer, more efficient aircraft.

Air New Zealand joins NASA climate science mission

TAP Air Portugal sets 'very solid foundations' to continue improving sustainability

Heathrow: SAS, Air Malta, Oman Air in top three for 4Q2019 'Fly Quiet and Green' table

Boom Supersonic announces carbon neutral test programme for XB-1 demonstrator

ICE Futures Europe announces carbon permit 2020 auction calendar

British Airways outlines sustainability measures

London Heathrow Airport gains carbon neutral status for infrastructure

Sydney Kingsford Smith Airport unveils six commitments achieved in 2019

Brussels Airport commits to strengthening UFP reduction actions

Although the US remains a mature market, with FSCs, LCCs and ULCCs firmly entrenched in their respective strategies, occasionally interesting developments occur.

During the past few months one of the more fascinating events was Delta’s surprise tie-up with LATAM, which is dissolving a long term partnership with American and exiting the oneworld alliance. 

It appeared as if American Airlines would accept LATAM’s defection without much protest or examination of its own international strategy. But now American and Alaska Air Group have opted to cancel a planned dissolution of their relationship, and instead are bolstering their partnership to enable American to introduce new long haul service from Seattle, which is a coastal hub for Delta. It is an interesting move by American, which is in the midst of making a major push from its hubs in Dallas/Fort Worth and Charlotte. 

Alaska has also pledged to become a fully fledged member of the oneworld alliance in 2021, at a time when scrutiny of the intensity of alliances is growing. Alaska has flirted with oneworld in the past, and now it seems as if the airline is ready to commit in order to bolster its position among corporate elites in Seattle. 

CAPA – Centre for Aviation (CAPA), the world’s most trusted source of market intelligence for the aviation and travel industry, has released new dates and locations for its highly anticipated CAPA Knowledge Fundamentals of the Aviation Industry training.

Designed to benefit all those working in, or associated with the aviation industry, this short introductory aviation course focuses on the workings of airlines and provides the practical information to better understand the structure and market of this important yet complex industry.

Covering topics from airline and airport relationship and loyalty programmes, to network planning and marketing and advertising, this training benefits everyone from industry novices to executives from a broad range of sectors such as airlines, airports, tourism bodies, industry suppliers, lawyers, government organisations, financers, investors, suppliers, unions and anyone else with exposure to aviation.

Infrastructure is top priority policy in the UK at the moment. Since the General Election in Dec-2019, apparently all that occupies Prime Minister Johnson’s thoughts is ditching “austerity” (which has been around since 2008) and embracing instead a policy of rampant investment into infrastructure. That appears to be one of the reasons that a more cautious Chancellor of the Exchequer, Sajid Javid, resigned.

A much-needed part of that infrastructure is the delayed high-speed rail (HS2) project to connect London with the Midlands and the North of England. The first part of the project has been quickly approved, although questions remain about the sections that follow. It seems that a Chinese company has approached the government, promising to build the HS2 faster and cheaper, and with faster trains.

If such a scenario were to emerge, does that mean that Chinese interests might pitch to build the even more delayed third runway at Heathrow Airport? They already have interests at two UK airports, including Heathrow.