CAPA TV

As the industry prepares for the arrival of newly announced vaccines for the COVID-19 virus, it is clear the impact for travel and aviation will be significant. Not only is there a rush to understand how these will be distributed around the world in the next 12 months but also an understanding of the industry once it is widely available.

• How do you plan for something that is on a scale like never before?
• What are the expectations around what proportion of distribution will be by air vs other surface modes?
• Refrigeration is one challenge. What are the other special features around distributing the vaccines globally?
• What are the realistic timeframes for delivering across the world?
• There are large rewards for airlines who get it right. How stiff is the competition between airlines/how much coordination or cooperation?

Airports and airlines with a cargo contribution have seen volumes and revenues increasing as a result of the COVID-19 pandemic, with some having as much as 50% of revenues coming from cargo. This vital sector has been put at the forefront of thinking for the entire aviation industry which has resulted in new investment and management.  

• Will we see further airport development in favour of freight on the long-term or will this be considered a short-term phenomenon?
• Could passenger infrastructure spend be substituted by cargo infrastructure?
• What methods of automation and digitalisation can be introduced to alleviate the dependency on people by carriers and airports in the freight segment?
• What can airports do to assist cargo operators in the way they organise the use of space?
• Does air cargo now have a legitimate place in the design of ‘airport cities’?
• In North America in particular it has been alleged that bigger freight aircraft have not always been catered to as well as they might be. What size of aircraft is going to be needed, going forward?

Ryanair DAC CEO Eddie Wilson believes that some of European government state aid is blatant discrimination and could cause problems for those airlines that are well managed and well capitalised, but in the longer term it will play out.

Mt Wilson said he believes the 737 MAX aircraft is a game changer that will provide a lot of options and flexibility and will play a key part of its strategy going forward.

Falling over the precipice of a hard Brexit isn’t in anyone’s interest. Common sense will probably prevail, but Ryanair is well prepared.

Talking at the CAPA Live on 11-Nov-2020, Ryanair DAC CEO Eddie Wilson spoke with CAPA’s chairman emeritus Peter Harbison.

Speaker: Ryanair DAC, CEO, Eddie Wilson 

Australia's aviation market has been deeply affected by the coronavirus pandemic, but there is some strong hope that there will be a resumption of air movements around the Australian domestic market before Christmas.

The Nov-2020 edition of CAPA Live included a discussion with Lim Kim Hai, chairman of the local Australian operator Regional Express (Rex), who said that the regional government rules had meant that the impact of border closures was "quite unequal" across the Australian states, with some states like Western Australia, Queensland and South Australia experiencing "almost no impact".

Speakers:

Regional Express, Executive Chairman, Lim Kim Hai 

CAPA - Centre for Aviation, Chairman Emeritus, Peter Harbison

The Middle East's first low-cost carrier, Air Arabia was established in 2003 by the Ruler of Sharjah and the Supreme Council of the United Arab Emirates, and is now a publicly-listed company based in Sharjah with secondary hubs at Ras Al Khaimah International Airport, UAE as well as Casablanca and Cairo. Air Arabia’s network includes services within the Middle East, the Indian Subcontinent and Europe. Air Arabia has established JV subsidiary airlines in Egypt and Morocco with local investors in each country. 

In this update, we hear directly from Air Arabia, Group CEO, Adel Ali as he discusses the impact of COVID-19 on the group and the recent launch of Air Arabia Abu Dhabi, a JV with Etihad Airways. 

Speaker: Air Arabia, Group CEO, Adel Ali

Avianca Holdings was just beginning to reap the benefits of a restructuring it undertook in 2019 when, in Mar-2020, the COVID-19 pandemic upended the global aviation industry.

And now Avianca and its large network peers in Latin America, LATAM Airlines Group and Aeromexico, have all been thrust into Chapter 11. 

As it works to rightsize, Avianca is recognising that it and the industry need to make structural cost changes in order to withstand the next exogenous event, whatever form that may take. 

Despite the long road to recovery, Avianca does believe that there is the potential to reach its pre-COVID-19 size in five years, and that more consolidation could emerge in Latin America. In this session, hear directly from Avianca, CEO, Anko van der Werff.

Speaker:  Avianca, CEO, Anko van der Werff

Moderator: Q&A with John Thomas

As aviation and travel continues what can only be described as a period of darkness, the industry that emerges will look vastly different than it did before the COVID-19 outbreak. The implications are wide-ranging and highly disruptive. As a continuation of CAPA’s Masterclass Series, CAPA – Centre for Aviation’s Chairman Emeritus Peter Harbison delivers a global big picture overview of our industry and where it will be in the next few years.

Speaker: CAPA - Centre for Aviation, Chairman Emeritus, Peter Harbison

• Will there be fewer full-service airlines and fewer widebodies? Will longer-haul narrowbodies come to the fore – if so, what implications on airport/apron design?
• Will the LCCs thrive – and therefore heighten concerns over airport ‘gold-plating’ and efficient turn-arounds?
• Will more terminal space be needed for physical distancing on the eventual rebound – and will that take a bite out of F&B and retail space?

Speaker: Foster and Partners, Senior Partner, Antoinette Nassopoulos Erickson

As cases have come down in Australia, we’ve started to see more states lift their domestic border restrictions. This has led airlines to increase interstate flying with a corresponding uptick in domestic capacity projections. 

Internationally, there has been very little change in border restrictions however the hope of travel bubbles is starting to emerge. There have been significant moves towards restoring trans-Tasman travel between Australia and New Zealand. Until very recently it was looking as if this wouldn’t happen this year, but now Australia has taken the first steps by allowing travellers from New Zealand to enter New South Wales and the Northern Territory without quarantine. While it is not expected that further bubbles will be created till 2021, many carriers are beginning to prepare for this and their own bubbles.

• What impact will Rex have on domestic trunk routes once state borders are completely open?
• What travel bubbles will be created with Australia and New Zealand in 2021?
• Which are carriers doing to prepare for the opening of borders?
• Will demand align with expected travel bubbles? 

Speakers:

• CAPA - Centre for Aviation, Chairman Emeritus, Peter Harbison
• Board of Airline Representatives of Australia, Executive Director, Barry Abrams
• Regional Express, Deputy Chairman, Hon John Sharp AM

The Asia-Pacific region was initially hit hard by the pandemic, probably more so than the other regions. But some of the key Asia-Pacific markets have also recovered more quickly than those in other parts of the world. While borders generally remain closed, or are subject to quarantine restrictions that have a similar effect on travel, there have been some so-called green lanes established for essential travel, but in general the hoped-for travel bubbles have been slow to develop.

Singapore has been the most progressive in the Asia-Pacific region regarding the easing of border restrictions. As well as reaching several agreements covering essential travel, Singapore has unilaterally removed quarantine requirements for some countries, including for New Zealand, Vietnam, Brunei, and most of Australia. The effectiveness of most of these quarantine removals is limited as they are not yet reciprocal, but they are obviously a step in the right direction.

• How are markets performing in Asia-Pacific?
• What impact would continued waves of the virus have on the region?
• What impact is this having on hubs like Singapore?
• Are bilateral corridors effective in opening up markets?
• What impact is the pandemic having on airports in the region?

Speakers

• CAPA - Centre for Aviation, Chairman Emeritus, Peter Harbison (Sydney)
• PATA, CEO, Mario Hardy
• ACI - Asia Pacific, Director General, Stefano Baronci