Analysis Reports

Air New Zealand launches new inflight safety video highlighting conservation

UK Govt not appealing court decision to block Heathrow expansion on environmental grounds

EUROCONTROL, SESAR JU and ACI Europe plan new initiative for sustainable airport solutions

Queensland Government provides funding to develop sustainable aviation fuel

CANSO and ACI collaborate on aviation noise and emissions guidance material

The Wuhan/coronavirus/COVID19 impact on airlines has been sudden and ugly, especially for airlines in the Asia Pacific region.

The CAPA graphs - "pictures" - in this report show how airlines have reduced capacity in the first quarter of 2020, according to CAPA's capacity analytics tool, which is built on schedules filed with our data partner OAG, coupled with the aircraft configuration data contained in the CAPA Fleets database. We have selected a handful of airlines in the Asia Pacific region.

These quite striking reductions only show the number of seats being flown. They don't directly address how full those flights are and for obvious commercial reasons airlines are reluctant to give too much away; but stories abound of much less than half full flights.

The graphic examples contained in this short report relate only to a handful of countries and airlines. As the impact of COVID19 continues - and hopefully abates - CAPA will provide further reports.

British Airways increases single-use plastic reduction target for 2020

SAS eliminates more than 50 tonnes of plastic due to sustainable cube packaging

Ukraine International Airlines to discontinue use of plastic loyalty cards from Apr-2020

London Heathrow Airport reports environmental initiatives

American Airlines has emerged from a fog in the early weeks of 2020, outlining strategic partnerships with GOL, Alaska Air Group, and now, Qatar Airways.

After severing ties in 2018, American and Qatar appear to have buried the hatchet, determining that the benefits of a new pact far outweigh any lingering animosity regarding accusations over unfair subsidies and other issues that the Big 3 of American, Delta and United had raised against the largest Gulf Airlines during the past few years.

The Qatar deal is the last piece of a trifecta for American to lay the groundwork for building a competitive network over the long term. The new pact helps American make important inroads into the Middle East, India and Africa that complement its own efforts to expand in those regions. 

American is hinting that at some point it will introduce service to Qatar’s Doha hub on its own metal, which indicates that, indeed, if there had been any hard feelings between the two airlines, they are taking a back seat to more logical commercial interests. 

Although Singapore Airlines (SIA) has forged a reputation as one of the most successful carriers in the industry, it isn't resting on its laurels. SIA is continuing to evolve and adapt its multipronged business model, as it seeks new partnerships and introduces advanced aircraft types to broaden its network capabilities.

SIA’s moves are partly driven by a set of well-known strategic challenges. Competition on long-haul connecting markets is coming from the giant Middle Eastern carriers and increasingly from the Chinese mainland airlines.

Closer to home, LCCs in Asia are continuing to ramp up their fleets with vast order backlogs. And other Asian hubs are attempting to emulate the success of Singapore’s Changi Airport as a global connection point.

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. 

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?

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

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.