Vietnam Airlines, via its official Twitter account, announced (23-Sep-2020) it has carried approximately 40,000 passengers on domestic routes since the beginning of 2020, a 12% year-on-year increase. The carrier currently operates over 40 domestic routes with around 200 flights per day.
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There would be no prizes for guessing that the biggest international aviation city pair by available seat kilometres (ASKs) is New York to London – because it is not.
A year ago (the week commencing 23-Sep-2019), the list of the world's top 10 international city pairs had a familiar look to it. Almost all of the cities from that list are home to major hub airports and at least one leading global airline. New York-London was then at number one in the ranking, with 38% more ASKs than number two ranked Dubai-London. Both have tumbled from their perch.
The top 10 international city pairs are now distributed more widely, bringing in cities not historically regarded as world-leading aviation hubs, with two leisure routes topping the list.
The biggest now (week commencing 21-Sep-2020) is Moscow-Antalya. It ranked 49th a year ago and has only 35% of the ASKs that New York-London had then. At number two is Paris to the French island of Réunion in the Indian Ocean.
The COVID-19 crisis is not only shrinking the face of aviation. It is also changing its once familiar features.
Premium Analysis
For Mexico’s LCC Volaris there is opportunity in crisisThe COVID-19 pandemic has significantly altered the dynamics of commercial aviation; now there are low cost operators emerging with a certain nimbleness, and seizing on opportunities created by the crisis.
That trend has firmly taken hold in Mexico, where the country’s largest ULCC Volaris is making a push as its rivals shrink. Volaris is not immune from the larger challenges ushered in by the crisis, but the airline is using its pre-crisis strengths to bolster its position further in a key Latin American market.
But competitive dynamics could change in Mexico once the country’s only full service carrier Aeromexico emerges from Chapter 11 bankruptcy protection. With corporate demand expected to remain depressed for the foreseeable future, Aeromexico will likely bolster its pursuit of leisure customers.
Premium Analysis
Argentina: tax on international airline tickets is ill-timedAs the industry waits for guidance from Argentina regarding the planned 1-Oct-2020 restart date for commercial flights, the country’s government has made a questionable decision to levy a tax on international air tickets. The tax comes after the industry has warned that Argentina’s prolonged closure could put the country’s long term connectivity at risk.
Argentina’s international travel was already depressed due to the country’s troubled economic state and plummeting currency. And now the latest developments could further threaten Argentina’s competitiveness.
For now, Argentina’s first ultra low cost operator, Flybondi, appears to remain committed to serving the market, despite being grounded for approximately six months.
However, its commitment is resting on an assumption that the country’s government will oversee Argentina’s aviation industry in a fair manner.
Quarantines and other restrictions imposed on travel between certain states in Australia have forced airlines to cut back many of their domestic services. While this has stifled the recovery of the country’s most important domestic traffic flows, it has also boosted the importance of routes that do not cross state borders.
Capacity has returned to match or exceed pre-COVID levels on some of these routes within states (intrastate). With most out-of-state – and international – destinations out of reach, Australians have been looking closer to home for leisure travel options.
These markets have provided a welcome trickle of revenue for Australia’s airlines. But for a meaningful domestic recovery, they need the high-volume interstate routes to return.
Qantas and the other major airlines have been lobbying hard for state border restrictions to be eased where it makes sense, and for a more targeted and standardised, predictable method for isolating any future outbreaks. Other sectors of the travel industry are also aligned in this effort, putting immense pressure on state governments.
As states get infection levels under control, this pressure seems to be paying off. In the week to 24-Sep-2020 some important state borders have been opened, and airlines have responded by resuming more flights in these markets. Some borders – most notably those involving Victoria, which is now getting an outbreak under control – will remain closed in the immediate future. But elsewhere there appears to be growing momentum to ease interstate restrictions.
Analysis
Aviation returns to the 1930s24-Sep-2020
Aviation returns to the 1930s
There’s been much talk about the post-COVID industry reverting to the profile of the 1970s, with its reduced traffic levels, the prospect of more active government intervention, smaller networks and higher prices.
But in two very important ways the real timeframe to compare is the 1930s. There are important lessons to be learned from industry and government behaviour 90 years ago.
First of all, WWI had spawned the multilateral Paris Convention of 1919, which established that every state had absolute sovereignty in the airspace over its territory, a response to the new aircraft that easily crossed boundaries. That meant essentially that all borders were closed to foreign aircraft and permission became necessary even to overfly.
Secondly, in the earlier, barnstorming days of aviation the biggest inhibitor of commercial air travel expansion was safety. There was an uncomfortable tendency for airlines to crash, a feature that would-be passengers found undesirable.
Recorded at CAPA Qatar Aviation Aeropolitical and Regulatory Summit, 5-6 Feb 2020
Cargo Services: Industry Stepchild Or Driver Or Economic Growth And Deregulation?
Cargo services often are given less attention than passenger operations. Yet, air cargo serves as a lifeline for nations such as Qatar and also provides the foundation for the global supply chain. Yet, the nature of the cargo business demands operational flexibility and liberal operating rules to meet the needs of consumer businesses. This panel will examine the forces and pressures shaping the business.
CAPA Live OctoberMore
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Virtual Event: CAPA Live October
CAPA Live will bring together a variety of industry experts to explore how aviation has returned to the 1930s thanks to the COVID-19 pandemic.
CAPA Live NovemberMore
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11
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Virtual Event: CAPA Live November
CAPA Live will bring together a variety of industry experts to explore how aviation is looking back to the future...winners & losers of the pandemic.
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28-Sep-2020 11:24 AM
Vietnam Airlines records 12% increase in domestic traffic since beginning of 2020
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28-Sep-2020 10:28 AM
Australia's Government to provide USD176m funding to regional Australia, encourage domestic tourism
Australia's Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Michael McCormack announced (27-Sep-2020) the Government will inject AUD250 million (USD176 million) into regional Australia, encouraging more Australians to travel and experience a domestic destination, boosting regional jobs and local economies. The package includes a AUD50 million (USD35 million) Regional Tourism Recovery initiative to assist businesses in regions heavily reliant on international tourism and AUD200 million (USD140.8 million) for an additional round of the Building Better Regions Fund. [more - original PR]
Biman Bangladesh Airlines, via its official website, announced (25-Sep-2020) plans to resume Dhaka-Singapore service on 01-Oct-2020, following a temporary suspension due to the outbreak of coronavirus and associated travel restrictions. The airline will operate the service weekly.
Taiwan Civil Aeronautics Administration reported (25-Sep-2020) the following cargo traffic highlights for domestic airlines for Aug-2020:
- Cargo: 210,419 tonnes, +17.9% year-on-year;
- China Airlines: 137,609 tonnes, +21.3%;
- EVA Air: 65,721 tonnes, +21.5%;
- Uni Airways: 3839 tonnes, -26.9%;
- Mandarin Airlines: 2867 tonnes, -7.6%;
- STARLUX Airlines: 263 tonnes;
- Daily Air: 91 tonnes, +35.8%;
- Tigerair Taiwan: 29 tonnes, -98.8%. [more - original PR - Chinese]
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28-Sep-2020 8:37 AM
Thai AirAsia launches four routes from new hub at Bangkok Suvarnabhumi International Airport
Thai AirAsia announced (25-Sep-2020) it officially launched operations from its hub at Bangkok Suvarnabhumi International Airport to the following destinations:
- Chiang Mai: Five times daily;
- Phuket: Three times daily;
- Krabi: Twice daily;
- Surat Thani: Twice daily.
Thai AirAsia CEO Santisuk Klongchaiya stated the utilisation of both airports in Bangkok will provide more options and low cost connections for passengers. [more - original PR]
Peach introduced (25-Sep-2020) the workcation system on 01-Sep-2020 to help revitalise regional economies by boosting the non-resident population, and further enhancing employee work life balance. Workcation refers to the new option of remote working while enjoying leisure time at a travel destination or in one's hometown, and is intended to promote longer vacations or paid leave. [more - original PR]
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Find Out MoreAviation returns to the 1930s
Issue 53
- There has been much talk about the post-COVID-19 industry reverting to the profile of the 1970s, but in two very important ways the real timeframe to compare is the 1930s.
Global 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.