India's Directorate General of Civil Aviation (DGCA), via its official Twitter account, announced (26-Feb-2021) it extended its prohibition on scheduled international passenger services to and from India until 31-Mar-2021, rather than until 28-Feb-2021. As previously reported by CAPA, scheduled international passenger services to and from India have been prohibited since 25-Mar-2020. The DGCA stated the prohibition "shall not apply to international all cargo operations and flights specifically approved by the DGCA" and noted: "International scheduled flights may be allowed on selected routes by the competent authority on a case to case basis".
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Most Asia-Pacific airlines have been pursuing aircraft delivery delays in response to the COVID-19 crisis. Although several airlines acted quickly and secured deferrals relatively early in the pandemic, some important negotiations have occurred more recently. These latest arrangements highlight the differing approaches to deferrals being taken by the region’s airlines.
Korean Air and Singapore Airlines are recent examples of airlines making substantial deferrals to push back spending commitments while also preserving their long term fleet renewal strategies.
The major Japanese airlines, however, are only making minimal postponements. The independent LCCs are generally trying to spread out their vast numbers of deliveries while some, such as IndiGo, are taking their aircraft as scheduled.
Few Asia-Pacific airlines will come through the pandemic without some degree of aircraft order deferments. In many cases these negotiations are key aspects of broader airline restructuring efforts.
Deferrals represent one of the main tools airlines have available for pausing growth and reducing fleet costs, along with early retirements, lease returns and order cancellations. Postponing rather than terminating orders is obviously preferable to manufacturers, particularly since Asia-Pacific airlines account for more of their order backlogs than any other region. Allowing delays also helps ensure customer survival.
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Istanbul Airport positions for future battle with Gulf airportsIt has long been the case that Istanbul’s airports have regarded themselves as in competition with those in the Gulf – especially for Europe-Asia transit traffic – rather than with those in Europe. And Istanbul’s new airport does have some geographical and operational advantages in that respect, as did its predecessor.
Now, as the country plots its way out of lockdown and with the main tourist season looming, that battle looks to recommence.
Istanbul Airport’s CEO is bullish about future prospects, no doubt taking his cue from the Prime Minister, but both the airport and the state airline will have to overcome the challenge from a rejuvenated Qatar Airways and Doha Airport, which have almost flourished during the pandemic.
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Philippines’ USD10bn airport project scrapped: politics?Manila has long been regarded as an underachiever in aviation terms, the creaking Ninoy Aquino airport transporting far fewer passengers than peers at Singapore, Bangkok, Kuala Lumpur and Hong Kong, despite a high population to call on.
Expansion at Ninoy Aquino and at Clark International, formerly a US military airbase, was going some way to redressing the issue. But then along came not one, but two, proposals for new airports, each to handle 100 million or more passengers each year.
One of them, at Sangley Point, has been put on the back burner, although there will be a fresh tender.
But the hidden reason for the original process being cancelled suggests that Chinese firms, especially state-owned ones, may be about to find it more difficult to secure foreign airport development contracts.
Eurostat data for passenger air transport show significant price weakness in Europe in 2H2020, particularly for international flights. During the COVID-19 pandemic pricing has, on the whole, held up best when airline capacity has been at its tightest, and fallen more rapidly when airlines have sought to return capacity to the market.
This price elasticity is to be expected. At a time of damaged consumer confidence in air travel, caused by months of uncertainty over government restrictions and concerns over the transmission of the virus, demand requires strong price stimulation when capacity is growing back again. A lack of business travel adds to downward price pressure.
Total seat capacity in Europe is down by 75.4% in the week of 22-Feb-2021 – bumping along the bottom ahead of a hoped-for summer recovery and still lagging other regions.
Middle East is down by 57.1%, Africa is down by 54.0%, North America by 46.9%, Latin America by 45.9% and Asia Pacific by 40.9%.
Europe's passenger numbers have fallen worse than seat capacity throughout the crisis. Restoring consumer confidence will be a big challenge in realising the recovery.
SAS agrees to increase Gevo SAF fuel purchase
Rolls-Royce: e-fuels offer support for net-zero future
Essar Oil (UK) Limited to create SAF from non recyclable household waste in the UK
New Zealand's Department of Conservation releases new Heritage and Visitor Strategy
Clean Planet Energy launches kerosene/jet fuel produced from recycled plastics
At a time when the aviation industry is searching for up-to-the-minute market intelligence, news, trend analysis and thought leadership, CAPA - Centre for Aviation delivers a virtual “Summit” on the second Wednesday of each month, jam-packed with information, data and live interviews. CAPA experts, global airline CEOs and other cutting-edge industry leaders present live from a next-gen virtual event platform.
The next CAPA Live event is in 9 days on 10-Mar-2021, and features the below speakers. Find out more
Dean Fowles
Head of Travel, Asian Development Bank
Adam Pilarski
Senior VP, AVITAS
Evert de Boer
Managing Partner, On Point Loyalty
Glenn Llewellyn
Vice-President Zero Emission Aircraft, Airbus
Thorsten Lange
EVP for Renewable Aviation, Neste Energy
Recorded at CAPA Live January
Qatar Airways GCEO on the carrier’s position as a global leader
Qatar Airways occupied a valuable role in the early months of the pandemic: providing essential cargo services around the world that were not directly connected to its base, while the passenger division also provided more than its fair share, in some cases activating fifth freedom rights that it did not previously use.
Now, and in common with a small but growing number of airports elsewhere, the airline and the airport it operates are looking to the future and are adamant that the Phase II expansion of Doha’s Hamad Airport will continue, to help cement its position as a leading global hub in a ‘post-COVID’ world and with the 2022 World Cup now on the horizon.
Hear directly from Qatar Airways, Group CEO, H.E. Akbar Al Baker as he looks ahead to 2021 and beyond
CAPA Live is the most sought-after monthly global aviation event. Taking place on the second Wednesday of each month, thousands of industry colleagues from across the globe tune in for their monthly dose of aviation and travel news, analysis, and in-depth interviews with industry leaders. Register here to be part of our growing community.
Australia's Civil Aviation Safety Authority (CASA) lifted (26-Feb-2021) its temporary suspension on Boeing 737 MAX aircraft from operating in Australia. While no Australian airlines currently operate the 737 MAX, two foreign airlines operated the aircraft type to Australia before the coronavirus pandemic. [more - original PR]
ICAO appointed (25-Feb-2021) Juan Carlos Salazar as secretary general for a three year term, commencing 01-Aug-2021. Dr Salazar presently serves as Colombia Aeronautica Civil director general. He will replace Fang Liu as ICAO secretary general. [more - original PR]
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26-Feb-2021 5:11 PM
AENA approves extraordinary incentive package to recover operations during summer 2021
AENA announced (24-Feb-2021) its board signed off a new extraordinary incentive package to recover operations for the 2021 summer season. The measure will apply between 01-Apr-2021 and 31-Oct-2021 and incentivises recovery rates above specified thresholds. For the first three months the recovery threshold is 30% while for the last four months it is 45%. All operations above these percentages will be incentivised in their landing charge by the same percentage as their recovery. The incentive means that airlines will receive a discount on their average monthly landing charge for all operations above the set levels, irrespective of the number of passengers carried. [more - original PR]
Air New Zealand announced (25-Feb-2021) as the carrier enters recovery mode, it remains focused on the following key long term priorities:
- Return sustainable level of earnings through the cycle;
- More efficient airline, focussed on optimal network;
- Right sized cost base;
- Continue to lead and advocate for action on decarbonisation;
- Expand and leverage loyalty programme;
- Ancillary revenue opportunities. [more - original PR]
Air New Zealand stated (25-Feb-2021) as there is uncertainty surrounding travel restrictions and travel demand, the carrier is not providing 2021 earnings guidance. Despite strong domestic and freight performance, the carrier's modelling scenarios suggest the airline will make a significant loss in 2021. [more - original PR]
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