CAPA Insights

The three runway system (3RS) at Hong Kong International Airport, due to launch on 28-Nov-2024, was a key topic of discussion at the CAPA Airline Leader Summit | Asia & Sustainability Awards and the inaugural Super Terminal Expo, held in parallel in Hong Kong in early Nov-2024.

The UK is host to two very different start-up carriers targeting their respective operational launches in 2025.

Global Airlines is an A380 operator seeking to operate trans-Atlantic services and offer an enhanced passenger experience.

Ecojet aims to become the world's first electric airline by retrofitting a fleet of ATR 72-600 aircraft with hydrogen-electric powertrains.

LATAM Airlines recently resumed four times weekly nonstop Santiago-Sydney service, restoring pre-pandemic normalcy to the direct connectivity landscape between Australia and Latin America.

The service was a favourite among those wishing to travel between the regions before the COVID-19 pandemic, whether for tourism, business or visiting friends and relatives.

As one of only two direct services connecting Sydney to Latin America (the other being Qantas' Sydney-Santiago service), it was especially important for Latin Americans in Sydney, who make up about 70% of Australia's total Latin American diaspora.

Porto Alegre Salgado Filho Airport (POA) resumed commercial operations on 21-Oct-2024, following its closure due to damage caused by flooding since May-2024.

The airport is located in the capital of Brazil's Rio Grande do Sul State, home to approximately six percent of the country's population.

As the state's major hub, POA being out of action for the best part of five months inevitably had a significant impact on Brazilian carriers' traffic.

Despite more than tripling its sales of sustainable aviation fuel (SAF) in 3Q2024, Neste reported that sales were "slower than anticipated".

However, the company expects growth in demand for renewable fuels in late 2024 and 2025 and remains bullish on the long term outlook for SAF.

The US has established itself as the clear leader in public funding for biofuels and other countries may need to adopt similar approaches to support SAF demand.

In late Sep-2024, SkyTeam and Eurostar signed a MoU to offer integrated air-rail journeys across Western Europe by 1H2025, marking SkyTeam's first partnership with a non-airline entity. The agreement will enable customers to book combined flight and rail itineraries in a single reservation.

This was followed in Oct-2024 by the announcement of SkyTeam's MoU with Trenitalia to expand intermodal travel in Italy.

As European countries increasingly promote rail over short haul air services, similar initiatives have been implemented in France, Spain, Germany and the Netherlands. These air-rail alliances signal a growing trend towards sustainable travel and integrated transport solutions.

Gulf Air plans to expand its network by 25% by 2029 and is conducting an in-depth network review to cut non-profitable routes.

CEO Jeffrey Goh stated the carrier is seeing healthy demand in the GCC, East Asia and Central/Eastern Europe, with plans to resume service to the US by as soon as mid 2025.

Global business travel spending is forecast to hit a record USD1.5 trillion in 2024, according to the latest outlook from the World Travel & Tourism Council (WTTC).

The figure would surpass the 2019 level by 6.2%, marking an accelerated recovery from the pandemic compared to earlier predictions.

The new forecast is a significant turnaround in post-pandemic performance, given that WTTC reported business travel spending remained 5.4% below the 2019 level in 2023.

Boeing management's hopes of resolving a strike by the International Association of Machinists and Aerospace Workers (IAM) have been dealt another blow as IAM members voted on 23-Oct-2024 to reject the company's latest offer.

The ongoing strike has suspended 737 MAX, 767 and 777 production with knock-on effects for Boeing's suppliers, notably Spirit AeroSystems.

The failure of Boeing and IAM to reach an agreement will only add to the growing frustration among airline leaders regarding delayed aircraft deliveries from both Boeing and Airbus, and supply constraints from engine manufacturers such as Pratt & Whitney and Rolls-Royce.

Aircraft delivery delays and broader supply chain problems are a significant factor in the aviation industry's inability to increase capacity to match post-pandemic growth in demand, and it seems that these issues are unlikely to be resolved soon.

Sierra Leone's Ministry of Transport recently launched the Air Sierra Leone project, with the carrier set to commence operations on 02-Dec-2024.

The airline's launch network shows no lack of ambition from the Government, with planned services to Abidjan, Accra, Monrovia, Banjul, Dakar, Conakry and, most notably, London Gatwick Airport.