LATAM Airlines Group commented (12-Nov-2019) on operations in 3Q2019, stating that even though currencies across the region remained devalued, capacity adjustments in international routes are improving the pricing environment of operations, especially Brazil-US. Domestic operations in both Brazil and Spanish-speaking markets contributed 10% more ASKs during the quarter. Brazil domestic RASK increased by 24% in BRL and 23% in USD, while in the Spanish-speaking domestic markets RASK showed a 10% decline in USD, mainly as a result of the year-over-year devaluation of local currencies. [more - original PR]
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Asia Pacific’s top aviation leaders announced at the CAPA Aviation Awards for ExcellenceChina Southern Airlines, SpiceJet, VietJet and Vistara have been recognised among Asia’s top airlines and leaders at CAPA’s 16th annual Asia Pacific Aviation Awards for Excellence in Singapore this evening (14-Nov-2019). The eight award winners were presented at a glittery ceremony at the Capella attended by over 150 of the region’s aviation luminaries, as part of the 2019 CAPA Asia Aviation Summit.
Regarded as the pre-eminent awards for strategic excellence in aviation, CAPA first established the awards in 2003, to recognise successful airlines and airports within the Asia Pacific region.
CAPA – Centre for Aviation (CAPA), Chairman Emeritus, Peter Harbison said: “The CAPA Asia Pacific Awards for Excellence are intended to recognise airlines, airports, executives and the wider aviation industry for their strategic leadership and success over the last 12 months, and for helping to propel the whole industry forward.”
Brazilian aviation is a study in contrasts. With Brazil being Latin America’s largest aviation market, the opportunity in the country is tremendous – trips per capita remain well below more mature markets, despite a more than doubling of passenger levels during the past decade.
That growth has occurred against a backdrop of tough operating conditions for Brazil’s airlines as the structural costs of doing business in the country remain high.
But there are signs of improvement surfacing, including the country’s government blocking efforts to reintroduce a free baggage requirement, and the consideration of eliminating some taxes. Those signs are fostering optimism that Brazil can reach its full passenger potential, but there remains uncertainty that recent reforms will have staying power.
It is always easy to tell that ‘disruption’ has turned into normality when organisations start to legislate for it.
The travel and transport industries are full of such disruption at the moment: Unmanned Aerial Vehicles (inadequate response); self-connection (left to a few large airports, most do not formally cater for it); the sharing economy; (and the daddy of them all) the environment (uncoordinated, ineffectual response to protests).
The UN World Tourism Organisation (UNWTO) has recently published a report – ‘New Business Models in the Accommodation Industry’ – which provides a systematic overview of the ways that both national governments and local authorities are “addressing” and managing new business models in the accommodation industry.
The UN is doing this just as a new variation on disruption shifts into gear – with accommodation sharing agencies such as Airbnb entering the hotel sector and some hotel groups targeting the sharing sector.
In addition to being a gateway to/from London, a city with more airline seats than any other in the world, London Heathrow Airport is also the UK's main international hub.
According to OAG data for the week of 12-Oct-2019, London Heathrow Airport has direct links with nine UK regional airports (i.e. excluding London). It is feed from these nine airports that gives Heathrow its UK hub status.
However, there are 20 airports in other Western European countries that have direct flights to more UK regional airports than Heathrow has (week of 12-Oct-2019, source: OAG): seven of these have at least double Heathrow's regional UK links, led by Jersey, with 21.
The majority of these airports are southern European leisure destinations and they do not threaten Heathrow's hub status. However, three important European hubs have more UK regional links than Heathrow: Amsterdam (20), Dublin (18) and Paris CDG (14).
Amsterdam and Paris CDG both offer large global networks and each has more destinations than Heathrow in Africa and Latin America, while Dublin has a strong North American niche. In addition, although Madrid, Munich and Frankfurt have fewer UK regional links than Heathrow, these hubs each serve at least one UK airport with no direct Heathrow flights.
Etihad Airways has expanded its codeshare agreement with TAP Air Portugal from 27-Oct-2019. Under the new arrangements, TAP will carry Etihad's EY code on nine additional routes from Lisbon and on one additional route from Porto (to London Gatwick).
The partnership gives each access to the other's networks, although it is heavily skewed towards routes where TAP carries the EY code and both airlines have multiple codeshare partners on several of the partnership routes. Moreover, it could have greater power if Etihad served Lisbon and if TAP served Abu Dhabi.
After the unravelling of Etihad's equity strategy, codeshare remains an important tool for the airline to enhance its access to Europe. Among the four superconnectors (the Gulf three of Emirates, Qatar Airways and Etihad plus Turkish Airlines), Etihad has the most codeshare partners and destinations in Europe.
However, Qatar Airways has added the most codeshare destinations in Europe over the past five years, while also growing its own network in Europe. Indeed, Qatar Airways appears to be going further than the others in growing through a balance between own network, codeshare, equity stakes and global alliance membership.
Recorded at CAPA Low Cost Long Haul Global Summit, 10-11 Oct 2019
Who Will Win The Greatest Wallet Share Over The Next Five Years?
LCCs are constantly looking at finessing their retailing and merchandising strategies – whether it’s during the booking phase, pre flight or onboard, with relevant, timely offers that are easily accessible (preferably via mobile) and easy to pay for. This is especially important in today’s digitalised environment, where onboard connectivity is virtually a must have and almost as critical for the traveller as getting to the destination.
The question remains, who will win the greatest wallet share over the next five years? Airports, or airlines – or someone else? Who is poised to win the greatest share of the travel retail market?
CTC-CAPA Corporate Travel Gathering - AustraliaMore
Upcoming Event
25-26
Nov
Sydney: CTC-CAPA Corporate Travel Gathering - Australia
The CTC-CAPA Corporate Travel Gathering - Australia will take place in November 2019 with the purpose of providing corporate travel buyers with strategic and operational skills to create a traveller centric programme.
CAPA-Aviation Week Network Airline Operations Leaders' Summit & Awards Gala DinnerMore
Upcoming Event
2-3
Dec
Seville: CAPA-Aviation Week Network Airline Operations Leaders' Summit & Awards Gala Dinner
The CAPA-Aviation Week Network Airline Operations Leaders’ Summit in Seville, Spain (Dec. 2-3) will gather C-level executives from the global airline and the aftermarket community to address key operational issues impacting airlines.
Cape Verde's Government, via its official Facebook account, confirmed (11-Nov-2019) it will complete the sale of the government's 49% state in Cabo Verde Airlines by 31-Dec-2019. The other 51% was sold to strategic partner Loftleidir Cabo Verde in Mar-2019.
CAPA - Centre for Aviation announced (15-Nov-2019) the winners of the CAPA Asia Pacific Aviation Awards for Excellence:
- Airline of the Year: China Southern Airlines;
- Airline Executive of the Year: SpiceJet India chairman and MD Ajay Singh;
- Low Cost Airline of the Year: VietJet Air;
- Regional Airline of the Year: Vistara;
- Large Airport of the Year: Hong Kong International Airport;
- Medium Airport of the Year: Brisbane Airport;
- Regional/Small Airport of the Year: Phnom Penh International Airport;
- Innovation of the Year: Singapore Airlines.
The CAPA Asia Pacific Awards for Excellence are intended to recognise airlines, airports, executives and the wider aviation industry for their strategic leadership and success over the last 12 months, and for helping to propel the whole industry forward. The winners were announced at the CAPA Asia Aviation & Corporate Travel Summit in Singapore. [more - CAPA Awards]
Air Mauritius, via its official Facebook account, announced (14-Nov-2019) a "slight improvement of its operating performance" for Q2FY2020. The carrier stated conditions remain "challenging" and the company has taken "bold steps to review its economic model" during the year. Details include:
- The airline recorded a net negative result of EUR18.3 million for the quarter, including the impact of implementing IFRS16 accounting standards;
- Without the impact of IFRS16, losses would have been reduced from EUR2.8 million to EUR1.3 million;
- Costs decreased 6.4% to EUR132.1 million, mainly due to a reduction in fuel prices, better alignment of capacity to demand, cost reduction initiatives and the entry into service of more fuel efficient A330neo aircraft;
- Passenger numbers reached 449,327 at a load factor of 81.5%;
- Number of seats deployed increased "slightly" to 591,514, with a greater focus on short and medium haul;
- Steps taken in the airline's review include a network review and strengthening of commercial functions.
Air Mauritius stated the economic environment remains challenging in key markets due to political instability and subdued economies.
Copenhagen Airports (CPH) adjusted (12-Nov-2019) the range of capital investments in the outlook for 2019 from between DKK1.8 billion (EUR240.9 million) and DKK2.1 billion (EUR281.0 million) to between DKK2.0 billion (EUR267.7 million) and DKK2.1 billion (EUR281.0 million). Investments include the expansion of terminal 3 airside, the expansion of cooling capacity, widebody capacity expansion, the expansion of Pier E, the establishment of Baggage Factory West and new aircraft stands. CPH will also be investing in non-aeronautical projects. [more - original PR]
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15-Nov-2019 10:45 AM
VietJet Air: Vietnam's tourism market is 'booming' for both inbound and outbound
VietJet Air member of the board of management Cuong Chu, speaking at the CAPA Asia Aviation & Corporate Travel Summit, said (14-Nov-2019) Vietnam's tourism market is "booming" with both inbound and outbound travel growing about 20% p/a and "domestic travel booming" as well. Mr Chu noted ground travel infrastructure in the country is "very poor", which means that air travel is still the best way to travel north-south in Vietnam. He noted VietJet Air has around a 46% domestic market share.
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