Spirit Airlines announced (29-Jun-2022) its intention to open and immediately adjourn its shareholders meeting related to the proposed merger with Frontier Airlines on 30-Jun-2022. Spirit plans to continue discussions with both Frontier and JetBlue Airways before reconvening with shareholders to conduct a vote on 08-Jul-2022. The meeting was initially scheduled for 10-Jun-2022, however was postponed following JetBlue amending its proposal on 06-Jun-2022. [more - original PR]
Before the COVID-19 pandemic, low cost airlines were working to make inroads in Argentina.
Its previous government, under former president Mauricio Macri, introduced more liberalised policies that paved the way for the establishment of low cost operators. His administration allowed airlines to expand domestically, and international operators to serve Argentina’s secondary market.
Aspiring LCCs also received a break when the government lifted the long-standing fare floor in Argentina during the summer of 2018.
The last two years seems somewhat like an eternity, but it appears the country’s budget operators have held their own as other changes have occurred in the marketplace during the crisis – most notably, the exit of Argentina’s second largest domestic operator, LATAM Airlines Argentina.
Now the question is how the competitive landscape in Argentina will evolve, and whether the government will encourage a level playing field.
Oman Airports signs MoU to develop Kilimanjaro Airport – future potential public-private operation
Several years ago it seemed as if the Oman Airports Management Company (OAMC) was on course, at one and the same time, to welcome inward investment from outside the country and to invest selectively in airports outside it. A previous concession agreement for the Muscat and Salalah airports had been in place for two years to 2004, but then fell through.
The pandemic put paid to both sets of activities, but now OAMC has signed an MoU to develop Kilimanjaro International Airport in Tanzania, one which serves as a gateway to a multitude of world standard tourist attractions, in a country that is replete with mineral resources.
However, as this agreement develops it will focus attention on East Africa and the opportunities that potentially lie there for investors.
This regular CAPA report provides a summary of recent aviation sustainability and environment news. This latest issue features:
ANA expands SAF flight initiative for corporate customers
LATAM Airlines Group to eliminate single use plastics by 2023
Skytrans Airlines and Stralis Aircraft enter agreement for hydrogen electric propulsion aircraft
European carriers at Lyon-Saint Exupéry Airport to conduct SAF demonstration flights
London Gatwick Airport generates 99.6% of energy from renewable sources in 2021
Helsinki Airport’s 10-year development plan nearing completion; focus on transfer passengers
Between them, Helsinki Vantaa Airport and Finnair had established the airport and airline jointly as the fastest way to travel indirectly between Western Europe and Asia Pacific.
The COVID-19 pandemic cut back hugely on demand between the two regions.
Nevertheless, a USD1 billion infrastructure overhaul continued, including the centralisation of passenger movements through a single terminal.
But although Finnair has the fleet to resume the level of activity as soon as the pandemic’s impact wanes in Asia Pacific, a new factor has entered the equation – namely, the Ukraine war, and how it has closed down Russian airspace.
Rather than focusing on expansion, Finnair’s CEO is now looking across the Atlantic rather than at North Asia, and is even warning of having to resize the company.
Europe's seat capacity is at 86.4% in the week commencing 27-Jun-2022, which is a shortfall of -13.6% against the equivalent week in 2019. This is the sixth successive week in a narrow range, signalling a levelling-off of the capacity recovery towards 2019 levels.
Europe has slipped to fifth in the regional ranking, above only Asia Pacific, where capacity is down -23.1%. In the Middle East capacity is down -11.4%, while North America capacity is down -10.2%, Africa is down -6.5%, and Latin America -4.1%.
As 2Q2022 draws to a close, its seat numbers will end up at 84.3% of 2019 levels, continuing an improving trend over five successive quarters. Seat capacity for 3Q2022 is currently projected at 88.8%. Projections are now more stable and more realistic than at earlier stages of the COVID-19 pandemic.
However, further modest trimming of this peak summer quarter is likely, given staffing constraints. The final outcome for 3Q may not exceed 2Q's percentage by much – if at all.
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Air Transat V.P. Network, Revenue Management and Pricing, Michèle Barre at the CAPA Americas Aviation & LCCs 2022 Summit
Michèle Barre, V.P. Network, Revenue Management and Pricing of the Air Transat, spoke to CAPA TV on the sidelines of the CAPA Americas Aviation & LCCs Summit about leveraging new partnerships.
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flypop announced (28-Jun-2022) the formation of a joint venture with Hi Fly, which will expand the carriers' existing cargo collaboration to include passenger flights departing the UK. Over the next few weeks, flypop will make additional aircraft available to be operated by Hi Fly as part of the partnership. Hi Fly president Paulo Mirpuri said the agreement will benefit from the carrier's "leading expertise in Airbus widebody aircraft", with flypop CEO Nino Singh Judge adding: "We expect a surge in demand in and out of our home market over the coming months and we look forward to serving our customers with the newly formed joint venture... We are in active discussions with several parties to grow the fleet further in the near future and look forward to welcoming these aircraft to the joint venture". [more - original PR]
Korean Air announced (28-Jun-2022) plans to undertake works to re-modify three Boeing 777s for passenger operations, removing cargo pallets and reinstalling 269 passenger seats, from Jul-2022. The airline modified 10 777s for cargo operations in 2020, in response to increased demand for cargo transport following the outbreak of the COVID-19 pandemic. Passenger cabin restoration works will take approximately 10 days per aircraft. Korean Air also plans to re-modify one A330 for passenger operations in Jul-2022. [more - original PR - Korean]
Association of Asia Pacific Airlines (AAPA) reported (28-Jun-2022) the following international traffic highlights for May-2022:
- Passengers: 7.3 million, +461% year-on-year;
- RPK: +452%;
- ASK: +115%;
- Passenger load factor: 71.5%, +43.7pp;
- FTK: -5.6%;
- AFTK: +1%;
- Cargo load factor: 69.4%, -4.8pp. [more - original PR]
Lufthansa Group announced (27-Jun-2022) it will reactivate its A380 aircraft from summer 2023, in response to the sharp increase in demand and delayed delivery of ordered aircraft. The company has 14 A380s in deep storage in Spain and France, of which six have been sold. Lufthansa outlined it is currently assessing the number of A380s it will reactivate as well as the destinations to which it will operate. As previously reported by CAPA, the group already purchased seven Boeing 787-9s to fill capacity gaps created by the delayed delivery of the 777-9. The 777-9 was originally scheduled for delivery in 2023, but is currently advised for 2025. [more - original PR]
Qantas Group international operations to reach 90% of pre-coronavirus levels in FY2023
Qantas Group announced (24-Jun-2022) no changes to its international capacity plans, with operations increasing from approximately 50% of pre-coronavirus levels to 70% by the end of Q1FY2023 to help meet demand. Growth will continue as additional A380 aircraft are returned to service, with total group international capacity to reach 90% of pre-coronavirus levels by Q4FY2023. [more - original PR]
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This report, jointly prepared by CAPA - Centre for Aviation (CAPA) and Envest Global (Envest), is designed to highlight some of the core elements of sustainable aviation, methods of quantifying individual airline sustainability credentials, and emissions.