US Trade Representative increased (14-Feb-2020) the additional duty rate on aircraft imported from the EU from 10% to 15%, effective 18-Mar-2020, and made certain other minor modifications. The US issued a notice of formal adjustments to its WTO authorised retaliation action over EU subsidies to Airbus for large commercial aircraft production. The initial retaliation was implemented on 18-Oct-2019. The WTO authorised the US to take countermeasures on USD7.5 billion in goods after a victory in its unfair trade practices case against the EU, France, Germany, Spain and the UK. [more - original PR]
Loading
Headlines
IAE forecasts 1Q2020 oil demand to shrink, first quarterly contraction in a decade
Munich Airport achieves Level 3 Optimisation under ACA scheme
ABEAR partners with Campinas Airport to increase capacity from 37 to 40 hourly movements
Aena to install 30ha of solar panels in Brazil
Delhi Airport certified as single use plastic free airport
Since the election of Argentina’s new president Alberto Fernandez and the former president Cristina Kirchner as vice president in late 2019, speculation has grown over how the new government will oversee the reforms of the previous administration that paved the way for new entrant low cost operators to launch operations in the country.
In the very early days of the administration there have not been any earth shattering changes to the overall status quo of the current state of Argentina’s aviation industry, but there are some troubling signs emerging, including what appears to be heightened scrutiny of the operations of the low cost operator Flybondi and declarations by the new CEO of state-owned Aerolineas Argentinas that the previous liberalisation was unrestricted.
Those developments could suggest that further liberalisation in the country is a non starter, and protectionist policies could creep back into Argentina’s aviation landscape. And perhaps there should be some cause for concern over how the government could oversee low cost operators in the future.
Headlines
Delta Air Lines to invest USD1bn into emission mitigation over 10 years
Air New Zealand recovers more than 890 tonnes of waste in two years under 'Project Green'
Norwegian Air reports 1.7m tons of CO2 saved in 2019
Swedavia launches electric aviation strategy to enable first commercial electrified route by 2025
Royal Schiphol Group launches nitrogen oxide emissions reduction plan of action
One of the benefits of having a portfolio of airlines is an ability to shift aircraft among those operators, and that has been a benefit to Azul and TAP Air Portugal in the past.
Now with the plans by Azul founder David Neeleman to launch a new US-based airline, Azul and Breeze Aviation (Mr Neeleman’s new company) have reached a deal for Breeze to take a number of Azul’s older Embraer 195s, while LOT Polish Airlines will also take a portion of the aircraft.
Although the Embraer 195s have a certain cost disadvantage in comparison with the Embraer 195-E2s Azul is adding to its fleet, Breeze and LOT can drive a degree of cost efficiency because fuel costs are higher in Brazil compared with the US and Europe. LOT has already purchased some E-Jets from Azul and has touted being the largest E-Jet operator in Europe.
The transaction is also shedding a sliver of light on Breeze’s network strategy, as the company highlights the Embraer 195’s charter potential and the aircraft’s suitability for shorter haul flights.
Vienna International Airport’s CEO, Julian Jäger, said recently that the airport does not anticipate double digit passenger traffic growth in 2020, after a 17% year-on-year increase to 32 million in 2019. He added that "slots in Vienna are becoming scarce", and the airport is anticipating 3% to 5% growth in 2020, and after 2020, "much flatter" growth still than in the past two years.
The airport has not only recovered from losing Air Berlin. Austrian Airlines has grown its connections, but low cost airlines are taking advantage of what appears to be a surprising pricing advantage over rivals that is offered by Vienna.
However, with an additional runway deferred the availability of slots is becoming a serious issue.
Recorded at CAPA Qatar Aviation Aeropolitical and Regulatory Summit, 5-6 Feb 2020
Education & Training In Aviation
Riding on the success of the Doha Declaration released at the 2019 CAPA Qatar Aviation Aeropolitical and Regulatory Summit, we celebrate those that have committed to helping continue the evolution of the Declaration through further research and education in the aviation sector.
CAPA Middle East & Africa Aviation SummitMore
Upcoming Event
2-3
Mar
Amman: CAPA Middle East & Africa Aviation Summit
Winds of change are sweeping through Middle East and African aviation, and so this Summit is a timely opportunity to examine the commercial and operational issues and discuss emerging local markets and growth prospects in the region.
CAPA Airline Leader Summit: Making Money 2020More
Upcoming Event
1-2
Apr
Dublin: CAPA Airline Leader Summit: Making Money 2020
We invite you to join us, along with airline executives from around the globe in Dublin to explore the rise of digital airlines, customer loyalty, air financing, retailing and sustainability and how these may impact airlines making money in 2020.
Cathay Pacific Group chief customer and commercial officer Ronald Lam stated (17-Feb-2020) 1H2020 will be "extremely challenging financially", adding the group's financial results will be "significantly down" year-on-year. The carrier attributes the downgrade to "additional significant drop in demand for flights and consequential capacity reduction caused by the novel coronavirus outbreak". [more - original PR]
×
18-Feb-2020 11:18 AM
Hainan Airlines Group pax down 35% in Jan-2020, attributable to the removal of Tianjin Airlines
Hainan Airlines Group reported (18-Feb-2020) the following traffic highlights for Jan-2020:
- Passengers: 4.6 million, -35.0% year-on-year;
- Domestic: 4.2 million, -36.4%;
- International: 369,400, -12.9%;
- Regional: 17,520, -36.5%;
- Passenger load factor: 74.4%, -9.2pp;
- Domestic: 76.1%, -11.3pp;
- International: 70.4%, -1.7pp;
- Regional: 57.0%, -20.5pp;
- Cargo: 42560 tonnes, -21.2%;
- Domestic: 35,500 tonnes, -20.5%;
- International: 7010 tonnes, -23.5%;
- Regional: 50 tonnes, -66.0%;
- Cargo load factor: 29.3%, -13.5pp;
- Domestic: 22.7%, -16.0pp;
- International: 40.1%, -7.4pp;
- Regional: 6.6%, -16.3pp.
Hainan Airlines Group traffic Includes Hainan Airlines, China Xinhua Airlines, Air Changan, Shanxi Airlines, Lucky Air Company Limited, Fuzhou Airlines, Urumqi Airlines, Guangxi Beibu Gulf Airlines and excludes Tianjin Airlines from Nov-2019. [more - original PR - Chinese]
Singapore Airlines Group reported (14-Feb-2020) it will continue to pursue ongoing strategic initiatives in 2020, including the integration of Singapore Airlines (SIA) and SilkAir and the development of Scoot. It will also continue to invest in Vistara, its JV in India with Tata Sons. [more - original PR]
×
18-Feb-2020 10:36 AM
BITRE: Australia domestic pax up just 0.5% to 61.4m in 2019, MEL-SYD pax down 0.6%
Australia's Bureau of Infrastructure, Transport and Region Economics (BITRE) reported (17-Feb-2020) the following domestic RPT traffic highlights for Australian airlines for the 12 months ended Dec-2019:
- Passengers: 61.4 million +0.5% year-on-year;
- Melbourne-Sydney: 9.2 million, -0.6%;
- Brisbane-Sydney: 4.8 million, -0.1%;
- Brisbane-Melbourne: 3.6 million, +1.1%;
- Gold Coast-Sydney: 2.7 million, +0.4%;
- Adelaide-Melbourne: 2.5 million, +1.6%;
- Gold Coast-Melbourne: 2.1 million, +3.0%;
- Melbourne-Perth: 2.1 million, -0.1%;
- Adelaide-Sydney: 1.9 million, -1.5%;
- Perth-Sydney: 1.7 million, -1.4%;
- Hobart-Melbourne: 1.7 million, +1.1%;
- Passenger load factor: 80.8% +0.2pp;
- Melbourne-Sydney: 85.2%, -0.4pp;
- Brisbane-Sydney: 83.2%, -0.4pp;
- Brisbane-Melbourne: 83.7%, +1.4pp;
- Gold Coast-Sydney: 87.1%, +0.4pp;
- Adelaide-Melbourne: 81.2%, +0.2pp;
- Gold Coast-Melbourne: 89%, +1.4pp;
- Melbourne-Perth: 85.4%, stable;
- Adelaide-Sydney: 83.8%, +1.1pp;
- Perth-Sydney: 84.8%, +0.9pp;
- Hobart-Melbourne: 80.1%, +0.9pp;
- RPKs: +0.3%;
- ASKs: +0.1%;
- Aircraft movements: 636,030 +1.0%;
- Seats: 77.7 million +0.5%. [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 MoreGlobal Outlook 2020: A look into the coming decade, expect massive change
Issue 52
- If the first two decades of the century were transformational for the aviation industry, the 2020s will be revolutionary.
Aviation carbon emissions and climate change
Issue 51
- Pressure mounts to adopt net zero emissions by 2050 and the threat of a jet fuel tax looms – are we doing enough to mitigate the impact of aviation on the environment?