Corporate Travel News For Europe/MEA

IATA VP Africa Raphael Kuuchi, speaking (13-Nov-2017) on behalf of director general and CEO Alexandre de Juniac at the African Airlines Association AGM, said Africa is the "region with the greatest aviation potential", projecting the scale of aviation in the continent will quadruple over the next two decades, with 300 million passengers by 2035. Mr Kuuchi noted that regional aviation also faces great challenges, with regional airlines expected to lose USD1.50 per passenger in 2017. He emphasised that regional taxes, fuel prices and infrastructure charges are higher than the global average. In addition insufficient safety oversight, failure to follow global standards, and restrictive air service agreements could all add to the burden on regional aviation. [more - original PR]

Ethiopian Airlines CEO Tewolde GebreMariam said the airline is interested in potentially acquiring 10 to 20 of Boeing's proposed mid sized aircraft (Reuters, 14-Nov-2017). Mr GebreMariam said: "It is a very right size, and right range for the missions we have, especially [for] the altitude in Addis".

Groupe ADP reported (14-Nov-2017) intercontinental traffic from Paris CDG Airport and Paris Orly Airport increased 5.8% year-on-year in Oct-2017. Details by region comprise:

• Middle East: +14.7%;
• North America: +7.4%;
• Africa: +6.4%;
• French overseas territories: +4%;
• Asia Pacific: +1%;
• Latin America: -3.7%. [more - original PR]

Austrian Airlines, via its official Twitter account, announced (13-Nov-2017) one Boeing 777-200ER (registration OE-LPA, serial 28698) was fitted out with premium economy class. As previously reported by CAPA, one of the carrier's six 767-300ERs was fitted out with premium economy in late Oct-2017. "As a result, two of our eleven long haul aircraft are already flying with the new premium economy class", the carrier stated.

Deutsche Lufthansa AG's binding offer for Alitalia reportedly comprised EUR250 million for 90 to 100 aircraft and around 6000 employees (airliners.de/Il Messagero/affaritaliani.it/Reuters, 14/15-Nov-2017). The Alitalia Group includes 12,000 employees and operates 120 aircraft, according to the CAPA Fleet Database. Lufthansa is reportedly not interested in the group's ground handling units, while Alitalia's insolvency commissioners reportedly seek at least EUR400 million for the carrier.

EgyptAir and Bombardier Commercial Aircraft signed (14-Nov-2017) a LoI for 12 CS300 aircraft and purchase rights for another 12. A firm contract would be valued at USD1.1 billion based on the list price and may increase to nearly USD2.2 billion if the purchased rights are exercised. EgyptAir selected Pratt & Whitney PurePower Geared Turbofan engines to power the aircraft. Deliveries are expected to commence in 2018. [more - original PR - Bombardier] [more - original PR - Bombardier - French] [more - original PR - Pratt & Whitney]

Turkey's President Recep Tayyip Erdogan announced (13-Nov-2017) plans to "take our relations to a new level in tourism and culture". Mr Erdogan said: "In the first nine months of 2017, more than four million Russian tourists visited our country. In 2019, Turkey will hold the Year of Russia and Russia will hold the Year of Turkey". Mr Erdogan added: "During my visit to Russia in March this year, my dear friend Mr Putin delighted us by saying... that they are working on visa free travel for Turkish citizens". [more - original PR - English/Russian]

flydubai is in contact with Airbus and Boeing about a potential new order for "at least 100" and up to 175 passenger aircraft (Reuters/The National, 12-Nov-2017). flydubai CEO Ghaith al-Ghaith confirmed that with 737 MAX deliveries due to end in 2023, "we are definitely interested in a new order; we are working on a new order". "We have the pleasure of time because we really don't have to rush anything, but you will have something soon", he said. The carrier, which currently has an all Boeing fleet, is "generally always in talks" with Airbus and Boeing, with Mr Al-Ghaith adding that it is "in intense talks with them now". On the timing of the order, Mr Al Ghaith explained: "We change aircraft every eight years and we have an order book now of 100. That order book expires in 2023 so we are now in the market to ensure we do something for beyond that. But we are not in a rush". On the type of aircraft, he said the carrier is "looking for similar aircraft" to its current aircraft, "maybe even a little bigger".

CAPA - Centre for Aviation, in a report entitled: 'Cathay Pacific: While Qatar Airways takes 10%, status quo prevails. Air China is long term partner', stated (14-Nov-2017) Qatar Airways is unlikely to become a major influence on Cathay Pacific's long term strategy or compel Cathay to make sweeping changes in the medium term as a result of its recent acquisition of a 9.61% stake in the Hong Kong carrier. Air China and Swire Pacific hold a combined 74.99% stake in Cathay, while Qatar has a minority less than 10% stake and no seat on the carrier's board. The USD662 million Qatar Airways invested to acquire its minority stake is roughly equal to the cost of purchasing several widebody aircraft and thus a relatively minor expenditure for an airline which has ordered hundreds of such aircraft. Qatar's Cathay stake likely brings more opportunity than its stake in LATAM, but less than its stake in IAG and is of far less strategic significance to the Gulf carrier than an stake with American Airlines would have been. The most likely outcome of the acquisition is a continuation of the status quo for Cathay Pacific. [more - CAPA Analysis]