United Airlines and Delta bullish on trans-Atlantic rebound
Even as the omicron variant of COVID-19 dampens some short term demand, US operators United Airlines and Delta remain confident of a strong summer season across the Atlantic as pent up demand remains firmly intact, and in some cases, travel restrictions ease.
United believes that structural shifts have occurred in the trans-Atlantic market, which are opening up network opportunities. Delta, meanwhile, always bullish about the outlook, projects its operations in the region will inch closer to pre-pandemic levels during the US summer high season.
Of course, it remains to be seen what types of virus variants will emerge over the next few months, but as omicron appears to be peaking in some parts of the US, most airlines believe demand will again return to rebounding in full force.
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European aviation: capacity recovery shows itself once more - but cheaper prices says O'Leary
EUROCONTROL's base scenario for flight numbers published in Oct-2021 was borne out in Nov-2021.
Then came the Omicron variant of COVID-19 and a consequent increase in travel restrictions. Europe's flight numbers fell towards EUROCONTROL's low scenario in Nov-2021, Dec-2021 and Jan-2022.
Seat capacity and flight numbers do not map each other precisely – capacity has typically fallen further from pre-pandemic levels – but they track each other up and down quite closely. After an Omicron-driven slump in European capacity in recent weeks, there has been an uptick in the trend.
Europe's seat numbers are 36.3% below 2019 levels in the week of 31-Jan-2022.
This is 4.2ppts better than a week ago – the first improvement in a month – and lifts Europe off the bottom of the regional ranking, now replaced by Asia Pacific, where capacity is down by 40.2%.
Africa capacity is down by 28.7%, the Middle East by 28.4%, Latin America by 17.1%, and North America by 12.9%.
EUROCONTROL's base outlook implies improvement in Feb-2022 and Mar-2022. If born out, this could lead to increases in current seat capacity projections of 67% of 2019 levels in Feb-2022 and 77% in Mar-2022.
TO READ ON, VISIT: European aviation: capacity recovery shows itself once more - but cheaper prices says O'Leary
Finding a way to Western Sydney Airport - by rail?
After more than 50 years of studies, the Commonwealth of Australia is funding and building another new airport in the fast-growing western part of the Sydney metropolis. This airport is about as remote as it is possible to be from population centres and CBDs in the region before running into the mountainous terrain that surrounds the Sydney Basin.
In Australia, responsibilities for such a major piece of infrastructure are shared – the Commonwealth/federal government is responsible for the airport itself and the State of NSW for the land transport access infrastructure that is needed to service it – noting that, however, the Commonwealth provided substantial funding to the State for such projects.
The State is also committed to building an “aerotropolis” or employment precinct adjoining the airport.
This report looks at the current airport access planning - and at what improvements could and should be made.
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JetBlue Airways goes big with AA partnership, despite DoJ challenge
American and JetBlue are not allowing a challenge from the US Department of Justice (DoJ) to their nearly year-old alliance to deter the evolution of that partnership.
To the contrary, approximately three quarters of JetBlue’s planned double digit capacity growth in 2022 will be deployed to support that partnership, dubbed the Northeast Alliance (NEA). JetBlue and American launched the Northeast Alliance (NEA) in Feb-2021.
JetBlue and American are coordinating schedules at Boston Logan, New York JFK, New York LaGuardia and Newark International.
JetBlue has already recorded fairly solid revenue from its tie-up with American, and as the alliance continues to expand, both airlines should reap continued upside if antitrust concerns from the government can be kept at bay. JetBlue and American’s calculus for the alliance remains intact, and now they just need to convince the courts to endorse their argument that the DoJ’s concerns are misplaced.
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Asia-Pacific airline fleet shifts, Part 2: contrasting fortunes. A380s and 747s grounded
This two-part analysis takes a close look at aircraft fleet trends in the Asia-Pacific region, and how they have changed during the course of the COVID-19 pandemic.
Part 1 analysed the shifts that have occurred over the past few years for widebodies and narrowbodies, the variations between sub-regions, and the encouraging recent signs of fleet recovery.
Part 2 examines how certain aircraft models are affected, and how specific airlines are adjusting their fleet plans. Most A380s still grounded and 747s may stay that way. Most 787s and A350s are flying.
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European airport capacity rankings: Both Istanbul and Sabiha Gökçen in top 10
The COVID-19 pandemic shattered the stability of Europe's rankings of leading airports by seat capacity.
It even sent the pre-pandemic leader, London Heathrow, tumbling out of the top six – the top of a group whose status always seemed assured by virtue of being the continent's major hub airports (Heathrow, Paris CDG, Frankfurt, Istanbul, Amsterdam and Madrid). The crisis led Istanbul to the top of the list as Europe's biggest airport by seats, whereas Barcelona, Rome Fiumicino, Munich and Madrid crashed out of the top 10 altogether.
However, the old order is largely reassembling.
Eight of the top 10 airports in the week commencing 24-Jan-2022 were in the pre-pandemic top 10, and all of the top six were in the pre-pandemic top six (albeit in a different order). London Heathrow is projected to return to number one in summer 2022, according to OAG schedules.
Nevertheless, the potential entry of London Gatwick and Palma de Mallorca into the Jun-2022 top 10 suggests that one or two second tier hubs could be overtaken by point-to-point/leisure airports as the recovery unfolds.
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CAPA Low Cost Airports and Terminals Report 2022 - Part 1
In 2006 and 2009 CAPA published two research reports into what was then a new phenomenon: the ‘low cost airport', or ‘low cost terminal’ (LCAT).
Both arose out of the explosion of budget airline services across the world, led by airlines such as Ryanair, easyJet and later Wizz Air in Europe, and AirAsia in the Asia Pacific region, and the new demands they placed on airports.
Those airports often included substantial marketing support and sometimes zero charge landing fees for a number of years. Even, in some cases, a request that airports should actually pay the airline to fly there, justified by additional jobs created and by back of the envelope projections of how many extra tourists the municipalities that owned the airports would receive by way of these new services.
It is fair to say that the entire mechanism of airport management was thrown into disarray and rapid solutions had to be found. One of those solutions was the LCAT – although it was rarely a silver bullet on account of the response of network airlines, which often felt, not unreasonably, that they were being discriminated against.
Now, 13 years on, this is one of three short reports that looks at how the ‘phenomenon’ has progressed – if it has – and specifically at some of the airports which did build LCC-specific terminals or promote themselves as LCC-oriented airports.
Have they been of any benefit? Have they had to adapt further, for example as both LCCs and full service carriers edged in the same ‘hybrid’ direction?
This Part 1 serves as the introduction and also looks at examples in North America and Latin America.
TO READ ON, VISIT: CAPA Low Cost Airports and Terminals Report 2022 - Part 1
CAPA Low Cost Airports and Terminals Report, 2022 – Part 2
This is Part 2 of a three part series, CAPA Low Cost Airports and Terminals Report, 2022.
It looks at the UK, where it could be argued the demand for low cost airport provision first became apparent, and France, where two notable budget terminals have survived and prospered – albeit in a modified version. In 2006 and 2009 CAPA published two research reports into what was then a new phenomenon, the ‘low cost airport', or ‘Low Cost Airline Terminal ' (LCAT).
Both arose out of the explosion of budget airline services across the world, led by airlines such as Ryanair, easyJet and later Wizz Air in Europe, and AirAsia in the Asia Pacific region, and the new demands they placed on airports.
Those airports often included substantial marketing support and sometimes zero charge landing fees for a number of years. Even, in some cases, a request that airports should actually pay the airline to fly there, justified by additional jobs created and by back of the envelope projections of how many extra tourists the municipalities that owned the airports would receive by way of these new services.
It is fair to say that the entire mechanism of airport management was thrown into disarray and rapid solutions had to be found. One of those solutions was the LCAT) – although it was rarely a silver bullet on account of the response of network airlines, which often felt, not unreasonably, that they were being discriminated against.
Now, 13 years on, this is one of three short reports that looks at how the ‘phenomenon’ has progressed – if it has – and specifically at some of the airports which did build LCC-specific terminals or promote themselves as LCC-oriented airports.
Have they been of any benefit? Have they had to adapt further, for example as both LCCs and full service carriers edged in the same ‘hybrid’ direction?
TO READ ON, VISIT: CAPA Low Cost Airports and Terminals Report, 2022 – Part 2
New Phnom Penh Airport: to be one of the world’s largest by land area
While it is not unknown for a government to dispense with the services of a foreign private sector operator that has managed its three commercial airports for many years, it is not unheard of.
And that is what has happened in Cambodia, whose government has put the job of building and operating a new airport for the capital, Phnom Penh, in the hands of a state-led joint venture which includes a Cambodian private company known for big real estate investments.
The new airport was planned before the pandemic, and with good reason, but even opening in 2025 it will have to deal with its legacy, which means making some important decisions now.
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SPECIAL REPORTS: Aviation Sustainability and the Environment
This regular weekly CAPA report features a summary of recent aviation sustainability and environment news, selected from the 300+ news alerts published daily by CAPA.
This week’s issue includes: Etihad Airways achieves IATA Environmental Assessment stage 2 accreditation; Turkish Airlines fuels aircraft with sustainable fuel; easyJet welcomes ICCT study on feasibility of hydrogen powered aircraft; Wizz Air launches care rental reward scheme with Green Motion; ATR performs test flights with 100% SAF in one engine.
TO READ ON, VISIT: SPECIAL REPORTS: Aviation Sustainability and the Environment