Kuwait Airways, via its official Twitter account, announced (21-Oct-2018) the appointment of Kamel Hassan Al Awadhi as CEO, effective 01-Nov-2018. Mr Al Awadhi succeeds Abdullah Ahmed Al Sharhan, who was appointed acting CEO in Apr-2018.
Loading
Rapid LCC expansion and the introduction of premium economy at full service airlines have dramatically changed the corporate travel landscape in Asia Pacific. The increasing use of LCCs and premium economy products by corporate buyers will be addressed at the CAPA-ACTE Global Summit and Corporate Lodging Forum in Sydney on 3/4-Dec-2018.
Corporate travel buyers in the region are slowly starting to embrace LCCs for short haul and, in some cases, even long haul travel. With LCCs dominating some Asian markets and often offering the best schedules, it was inevitable they would start to gain traction in the corporate space.
Corporate buyers in some Asia Pacific markets, such as Australia and New Zealand, have embraced premium economy for several years. However, with the introduction of premium economy products by more airlines in recent years there are now premium economy options in more markets, giving corporates the opportunity to review their travel policies.
The CAPA World Aviation Summit in Berlin on 27-28 November 2018 will bring together representatives of airline management and pilot unions to debate the question: can aviation unions be a force for good?
A CAPA analysis published in Sep-2018 examined the growing imbalance between demand and the supply of new airline pilots. Global aviation has enjoyed strong traffic growth in recent years, implying that supply has been sufficient. However, this growth is tightening the supply of labour and the airline industry faces challenges in recruiting qualified pilots in the numbers needed to cope with future expansion.
Pilots are not the only labour group in the industry, but they are by far the most expensive and highly skilled. The looming shortage of pilots is strengthening their negotiating position. The discussion in Berlin will consider the challenge of servicing aviation's growth with an adequate supply of human resources.
It will also discuss whether unions have the industry's interests at heart, whether airlines are too focused on a wage race to the bottom, and whether unions can adapt to rapid change. Cost reduction remains a key priority for management, but this may be more difficult when skilled labour is in short supply.
Foreign ownership laws in North America have undergone minor changes within the past year, including the Canadian government’s decision to increase foreign ownership limits to 49% (with no foreign entity holding more than 25% of voting shares).
Legislation introduced in the US earlier in 2018 to remove ownership restrictions on the country’s airlines has – unsurprisingly – gained little traction. But at least the proposal created an opportunity for discussing changes to US airline foreign ownership stipulations.
The needle on foreign ownership levels of US airlines is not likely to move anytime soon, and the increase in foreign ownership levels in Canada’s airlines have not resulted in drastic changes in the country’s aviation landscape. The result is the status quo will remain in place for the foreseeable future as age old protectionist policies show no signs of changing.
By comparison with Western Europe, Eastern/Central Europe has very few airports with long haul connections. According to data from OAG Schedules Analyser for the week of 8-Oct-2019, there are 62 airports in Western Europe with direct flights to long haul destinations and only 16 in Eastern/Central Europe.
Moreover, while Western Europe has 25 airports with 10 or more long haul routes (and six with more than 50), in Eastern/Central Europe only the two leading Moscow airports have a double digit number of long haul routes.
Moscow Sheremetyevo has the greatest number of short haul to long haul connections in E/C Europe, mainly operated by Aeroflot. Outside Russia/CIS, Warsaw has the greatest number of short haul to long haul connections, with LOT Polish its leading operator. At Prague and Budapest, short haul to long haul connectivity is mainly provided by airlines from elsewhere.
Premium Analysis
American Airlines SWOT: high leverage overshadows its strengthsAmerican Airlines is in the final stages of its merger with US Airways, after reaching major milestones that included merging more than 1,300 IT systems, moving its pilots and aircraft onto a single operating platform, and completing the rebanking of strategic hubs in Miami, Dallas and Chicago.
The airline enjoys the benefit of operating the youngest fleet among its large US global network peers, and has risen to take the title of the largest US domestic airline, just passing Southwest in US market share.
But despite those achievements and positioning, American’s financial leverage is significantly higher than its peers, and the company faces short term revenue pressure that could affect the lofty financial targets that it has set for itself.
This report examines American’s strengths, weaknesses, opportunities and threats.
Recorded at CAPA Low Cost Long Haul Global Summit, 4-5 Oct 2018
Aviation & Travel Innovators – FlyPOP
FlyPOP’s business model is predicated on the fact that the South Asian diaspora in the UK (and North America) are underserved by the global aviation industry. Despite the significant VFR demand in flying non-stop to major tier two cities in South Asia, most cannot be reached directly. The start-up airline plans to put an end to this and disrupt the industry by putting the passenger first.
CAPA Asia Aviation SummitMore
Upcoming Event
8-9
Nov
Singapore: CAPA Asia Aviation Summit
The summit will bring together up to 30 CEOs of leading carriers based in Asia, as well as those serving the world’s most vibrant aviation region. It will also have a dedicated day on corporate travel focusing on the biggest corporate travel spend: air
CAPA Asia Corporate Travel SummitMore
Upcoming Event
8
Nov
Singapore: CAPA Asia Corporate Travel Summit
The summit will bring together up to 30 CEOs of leading carriers based in Asia, as well as those serving the world’s most vibrant aviation region. It will also have a dedicated day on corporate travel focusing on the biggest corporate travel spend: air
×
23-Oct-2018 10:07 AM
Etihad and Saudia announce codeshare partnership and plans for greater cooperation
Etihad Airways and Saudia announced (22-Oct-2018) a new codeshare partnership covering 41 destinations and plans for greater cooperation in other areas, including frequent flyer programmes, cargo and engineering and maintenance. Details include:
- The codeshare covers the following destinations:
- Served by Etihad: Abu Dhabi, Ahmedabad, Baku, Belgrade, Chengdu, Chicago O'Hare, Dammam, Jeddah, Madinah, Nagoya, Riyadh, Seychelles and Tokyo Narita;
- Served by Saudia: Abha, Abu Dhabi, Al-Baha, Alexandria, Alula, Arar, Bisha, Dammam, Dawadmi, Gassim, Gizan, Gurayat, Hail, Hofuf, Jeddah, Jouf, Madinah, Multan, Peshawar, Port Sudan, Qaisumah, Rafha, Riyadh, Sharm el-Sheikh, Sharurah, Tabuk, Taif, Tunis, Turaif, Wadi-Ad-Dawasir, Wedjh and Yanbo;
- The Alfursan and Etihad Guest frequent flyer programme teams are finalising discussions to offer reciprocal 'earn and burn' opportunities to members;
- Etihad Airways Engineering will provide select maintenance services for Saudia aircraft at its MRO facility in Abu Dhabi;
- The airline's cargo divisions are in talks for greater cooperation. Discussions are taking place to explore commercial cargo joint opportunities. [more - original PR]
CAAC reported (22-Oct-2018) the following traffic highlights for Aug-2018:
- Passengers: 56.6 million, +12.1% year-on-year;
- Passenger load factor: 86.5%, +1.4ppts;
- Cargo: 607,000 tonnes, +6.4%;
-
- Domestic: 404,000 tonnes, +3.8%;
- Hong Kong, Macau and Taiwan: 21,000 tonnes, -0.1%;
- International: 203,000 tonnes, +11.9%. [more - original PR - Chinese]
- Domestic: 404,000 tonnes, +3.8%;
EVA Air unveiled (22-Oct-2018) its first Boeing 787-9 aircraft on 22-Oct-2018. The carrier is scheduled to take delivery of a second 787-9 aircraft in 2018, for a total of four 787-9s and 20 787-10s, all of which are scheduled to be delivered by 2022. EVA Air's 787-9 is configured with 304 seats in a two class configuration, including 26 business and 278 economy class seats. EVA is finalising preparations and securing certifications for the aircraft and expects to put the first aircraft into service in Nov-2018, serving Taipei-Hong Kong initially before extending to Osaka and Tokyo Narita in Dec-2018 with delivery of its second 787-9. EVA will use the remaining two 787-9s for services to Australia and Europe in 2019. [more - original PR] [more - original PR - II]
Government of Dubai reported (18-Oct-2018) the expansion of Dubai World Central Al Maktoum International Airport is expected to completed by 2030, five years later than originally anticipated. According to Dubai Aviation Engineering Projects (DAEP), the airport will be able to accommodate 130 million passengers p/a within the first year of opening. Once all projects are complete, the airport will be able to handle 260 million passengers p/a. As previously reported by CAPA, DAEP recently launched a substructure package tender for the airport project. A contract is scheduled to be awarded in 1Q2019. [more - original PR]
×
22-Oct-2018 12:35 PM
LAWA approves USD2bn, 28 year contract for ConRAC facility at Los Angeles International Airport
Los Angeles World Airports (LAWA) approved (18-Oct-2018) a maximum USD2 billion, 28 year contract for LA Gateway Partners to design, construct, finance, operate and maintain the consolidated rent-a-car (ConRAC) facility at Los Angeles International Airport. The ConRAC will consolidate more than 20 rental car locations in and around the airport into one facility located adjacent to the 405 freeway. It will feature 6600 ready/return parking stalls, 10,000 idle vehicle storage, 1100 rental car employee parking spaces, and more than 2500 parking spaces for badged LAWA employees. The facility will be connected to the automated people mover, which will eliminate the need for rental car shuttles to access the central terminal area. [more - original PR]
Want More News Like This?
CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out MoreChina's Belt & Road Initiative and Aviation
Issue 45
- A massive global initiative: aviation legacy could entrench liberal market access
- Airports recovering from airline consolidation
- Fleet changes as airlines reevaluate
- Russia’s RoI on USD15 billion World Cup investment