In the (still continuing) wake of the demise of Monarch Airlines 18 months ago, airports across the UK will be concerned at unfolding events at Flybe, which was taken over a few months ago but has still found it necessary to cancel flights and to enter into discussions with a number of airports concerning its future plans.
Flybe is in the process of consulting with a number of its employees over plans to restructure and reduce jet operations at multiple bases across its network. Flybe services may be at risk at numerous airports across the UK, and in some cases that could make a serious impact on operations.
This report relates the impact Flybe has on provincial air travel in the UK and its importance to many airports, and considers which of them might be at risk if Flybe’s situation does not improve.
The Cabo Verde islands have been attracting tourists in ever-increasing numbers during the past decade, offering a concoction of the true Africa and high-class western-style hotels and resorts. Tourism has supplemented the well established travel to and from the islands by ex-pats but hasn’t really helped the national airline, which has faced mounting problems.
Just as that that tourism growth has levelled off, a deal is about to be sealed by which Icelandair, with its huge experience of hub and spoke, sixth freedom operations, will take operational control of Cabo Verde Airlines, with a new strategy to build a hub and spoke airline using Cape Verde as a connecting hub between continents.
That requires cooperation with the airports, of course, and Cape Verde isn’t Iceland, with its islands well spread out and having differing political and social needs.
While the capital city is on one island, the main commercial centre (for centuries) is on another, and another two islands account for most of the tourism. Even the majority of the police force comes from one island and on another annual tourist visitors outnumber locals by many hundreds to one.
So it is strange that the government has chosen this moment to announce that the airports will be concessioned out, and by the end of 2019. A concessionaire might offer useful funds that can be used for other purposes, but equally might have different ideas from those of the state operator ASA about how to run its airports.
This report examines some of the difficulties of putting a concession procedure into place, and one in which firms might be interested.
Passenger levels at Nashville International airport have soared during the past few years, fuelled in part by job growth supported by a sustained robust economy in the region.
The airport continues to welcome new services from its largest operator – Southwest Airlines – but during the past couple of years has also secured new flights from the ultra low cost operators Frontier, Allegiant and Sun Country. JetBlue has also begun services from Nashville, and Alaska has also expanded from the airport.
Perhaps Nashville’s biggest win during the past couple of years is the return of trans Atlantic flights after British Airways launched flights to London Heathrow in 2018. It was a years-long process to secure the service, and the airport is no doubt working to expand its roster of long haul flights.
The sudden collapse of WOW air, the LCC that took on Icelandair at its own game and lost, is likely to prompt a review of infrastructure needs at Keflavik Airport, which is the only international air gateway to the island.
The state airport operator Isavia has been criticised for its tardiness in preparation for the anticipated continuing increase in tourists especially, but WOW air’s collapse will take plenty of the sting out of that. Isavia says it will be examining the consequences that WOW air's withdrawal may have.
Isavia had predicted that there would be a fall in passenger numbers brought about by route consolidation alone this year (10% in the summer), and early statistics (Jan-Feb, around 6%) have supported that prediction, although not quite to the degree that Isavia imagined.
This collapse also prompts the question which airline(s) – if any – will take up WOW air's capacity and fly its routes, and whether the entire aviation/tourist enterprise of Iceland might start to head back towards the ‘niche’ territory where it contentedly sat for decades.
In Italy, local airlines have a lower seat share than in any other major European market. Moreover, Italy is one of only two countries in Western Europe's top 10 where the leading airline is not indigenous: Ryanair leads in both Italy and Spain. However, in Spain, number two Vueling and number three Iberia are both part of IAG and their combined seat share is more than Ryanair's. That leaves Alitalia with the most fragile market position of a national airline in a major market.
Italy is firmly among Western Europe's top five countries by population, GDP, tourist arrivals and airline seat numbers. However, its GDP per capita and hence, the propensity for air travel as measured by airline seats per capita, are both low within this group of five.
Italy is the smallest of Western Europe's top five aviation markets by seat numbers, behind the UK, Germany, Spain and France. It is also the only one without an airline ranking among Europe's top 10 by 2018 passenger numbers: Alitalia ranks 15th by this measure.
On 2-May-2019 Alitalia approaches the second anniversary of its extraordinary administration and, on 31-Mar-2019, yet another deadline slipped for securing its future with new investors.
Japan Airlines VP Marketing, Strategy and Research Akihide Yoguhchi discusses the airline’s strategy for resuming expansion, the company’s excitement about new service to Seattle and route evaluations for its new LCC Zipair.
CAPA’s MEAAS Summit attracts the highest calibre of thought-leaders in the industry. Join us as we: explore both markets growths opportunities; discuss infrastructure constraints and the airline and airport relationship; as well as emerging technologies.
CAPA’s events attract the highest calibre of thought-leaders in the industry. This summit brings together strong C-Level executive representation from all types of business models to explore exactly how to make money in today’s economic environment.
Sydney Kingsford Smith Airport reported (18-Apr-2019) the following traffic highlights for Mar-2019:
United Airlines EVP and CFO Gerald Laderman reported (17-Apr-2019) the airline expects the following results for 2Q2019 and FY2019:
Brazil ANAC stated (17-Apr-2019) Avianca Brazil will return eight additional aircraft to lessors in the near future, commencing 22-Apr-2019. The airline will return seven aircraft to GECAS and one aircraft to PK AirFinance. [more - original PR - Portuguese]
Flughafen Berlin Brandenburg GmbH reported (17-Apr-2019) the following traffic highlights:
AirAsia Group announced (17-Apr-2019) its wholly owned subsidiary AirAsia Investment, Gumin Company and Hai Au Aviation amicably agreed to terminate and release each other from all obligations under the transaction agreements in relation to their proposed JV in Vietnam, effective 17-Apr-2019. AirAsia Group stated it remains interested in operating a LCC in Vietnam due to the country's favourable geographical location, expanding aviation market and overall growth potential. [more - original PR]
AirAsia Group reported (17-Apr-2019) shareholders approved the disposal of 100% equity interest in its Merah Aviation entities to AS Air Lease Holdings 5T DAC, an entity indirectly controlled by Castlelake. As previously reported by CAPA, Merah Aviation Asset Holding comprises 25 aircraft to be leased to AirAsia. AirAsia Group CEO Tony Fernandes, via his official Twitter account, commented: "Selling our aircraft monetises all our aircraft at high prices and avoids residual risk and allows us to return cash to shareholders and invest in our new digital business". [more - original PR]