AUSTRALIAN RETURNS Its Vienna Base the IATA AGM Returns to Australia Row,” Says IATA Director General Al- Locally the Outlook Is Bright Too
Total Page：16
File Type：pdf, Size：1020Kb
ISSUE ALL THE NEWS FROM SUNDAY 13 JUNE 2018 INDUSTRY SNAPSHOT 7% Increase in passenger traffic over the first four months of 2018 5.1% Increase in air freight traffic over the first four months of 2018 Air India stake sale bid closes with no offers BOC Aviation orders three Boeing 787-9s for lease to Air Europa Laudamotion begins flights from AUSTRALIAN RETURNS its Vienna base The IATA AGM returns to Australia row,” says IATA director general Al- Locally the outlook is bright too. at a time of record profits for the exandre de Juniac. “Even with the Qantas expects its full-year under- sector and a revival in the financial last few years [of growth] passenger lying pre-tax profits to come in fortunes of host carrier Qantas. and cargo [traffic] are still growing. between A$1.55 ($1.16 billion) and “The mood should be pretty “Some costs are rising- fuel, la- A$1.6 billion, some turnaround after $76.79 good because the financials are re- bour infrastructure - so there are the record losses it incurred in 2014. Barrel price of Crude Oil ally positive for a fourth year in the some areas of concern.” See p7 and p24 for more as of close on 1 June Inside this issue Tripping the light fantastic in Sydney………………………3 How airlines fared in the first quarter……………………...15 Singapore Airlines in it for the long-haul…………………..4 Departing CEOs leave their mark………………………….22 De Juniac outlines key challenges………………………….7 Revived fortunes in Australia……………………………….24 What’s driving airlines’ record run?………………………...8 Slotting into place at airports………………………………26 Fuelling fears – 18 Flight Airline Business IATA daily online: flightglobal.com/iata #IATAagm GEARED FOR THE FUTURE. TRANSFORMING AVIATION TODAY. PRATT & WHITNEY’S GEARED TURBOFAN™ ENGINE Airline operators are excited about the breakthrough fuel savings and significant noise reduction they’re seeing from the GTF innovation today. Cleaner, greener and quieter. Experience the engine that’s geared for the future — flying today. Learn more at pw.utc.com NEWS April traffic growth slows Early Easter hits monthly industry figures, but carriers still expanding at a rapid rate sia-Pacific markets led pas- the 9.7% growth enjoyed in centage point to stand at 82.3%. Asenger traffic growth in March. But direct comparison is Asia-Pacific carriers increased April, a month in which the distorted as the busy Easter holi- traffic almost 11% in April and overall rate of expansion day period fell in April last year. collective load factors grew over a dropped as a result of the earlier Traffic growth in April was still point to reach 82.8%. Asian carri- falling of the busy Easter period. above historic trends and out- ers posted an 8.5% traffic rise in IATA data shows collective pas- paced the collective 5.9% in- international traffic for the month, senger traffic rose 6.2% in April crease in airline capacity during the strongest among the regions compared to the same month last the month. As a result, airline and the first-time since December year. This, however, is down on load factors inched up 0.2 per- Asia-Pacific has led the growth. ■ BillyPix Closing in on CORSIA countdown With the clock ticking for airlines to comply with the new global Carbon Offsetting and Reduc- tion Scheme for International Aviation (CORSIA), IATA is re- minding members that opera- tors of international flights must start to monitor their emissions from next year. While offset requirements do not apply before 2021, all opera- tors will need to monitor their emissions from 1 January 2019. Michael Gill (above), director aviation environment at IATA and executive director of ATAG, BillyPix notes that this applies to all carri- Vivid visions of Sydney as harbour lights up host city ers flying international opera- tions regardless of whether their Delegates to this year’s IATA are set to enjoy one of the world’s most spectacular urban waterfronts as part of home state has signed up to the the wide-ranging Vivid Festival here in Sydney. global scheme. In Cockle Bay, just outside the conference centre, the Fantastic Oceans Light and Laser experience is dis- At this year’s AGM, IATA will played nightly. The show, which also incorporates fountains, renders sea creatures and coral from the deeps, in outline the requirements to a spectacular testament to the beauty of the sea. members and offer various For delegates who will spend a few extra days in Sydney after the conference closes, there is fireworks display support and training initiatives at Darling Harbour every Friday and Saturday evening at 8pm. to prepare them for the start of Now in its 10th year, the festival’s music programme also includes an aptly timed interpretation of Brian Eno’s the emissions scheme before ambient Music for Airports, running from 3-5 June. The Alaska Orchestra make their Sydney Opera House debut the sands of time run out for to combine electronic and acoustic sounds for this eclectic re-imagining of Eno’s 1978 experimental classic. airlines to comply. flightglobal.com/airlines WHERE TO FIND US Editor Graham Dunn Design & Production Advertising Grace Murphy Our editorial team is located in the Quadrant House, The Quadrant, Reporting team Firdaus Hashim, Alexis Rendell, Printers Camerons Printers Media Room, Cockle Bay Room, Sutton, Surrey, SM2 5AS, UK Ellis Taylor, Greg Waldron Lin Ning, Terence Burke Executive director content Level 3 Contributors Edward Russell, Copy editing Max Kingsley-Jones, Lewis Harper, Oliver Clark Dan Bloch, Tim Norman Publisher Stuart Burgess © Flight Airline Business 2018 Photography Tom Gordon 3 June 2018 | Flight Airline Business | 3 NEWS IN bRIEf Asian demand stays strong QaNTaS SEaLS DOMESTIC Traffic still growing in region despite higher oil prices, but margins under more pressure CODESHaRE WITH AIR NZ Qantas and Air New Zealand he recent spike in oil prices to will codeshare on each oth- Taround $80 a barrel is putting ers’ domestic networks but pressure on some carriers, but exclude any co-operation on the Association of Asia Pacific the transtasman market. The Airlines continues to see posi- arrangement will see Qantas tives in ongoing strong growth of place its code on up to 30 Air passenger and cargo demand. NZ-operated flights within “The global economy is in good New Zealand, while the Star shape, and that’s reflected in very Alliance carrier will place its robust passenger numbers. Cargo code on up to 85 Qantas-op- growth rates have slowed, but erated flights within Australia you’re still setting new highs on from 28 October. The new last year’s strong performance, so codeshare will start a day on the demand side things look after the long-running joint good,” says director general An- BillyPix venture between Air New drew Herdman. Herdman: consumer and business confidence remains robust Zealand and Virgin Australia But he admits that some observ- stops. Qantas will continue to ers are starting to get nervous moving upwards to restore those squeezed.” Nonetheless, he re- codeshare on Jetstar’s flights about the recent rise in oil prices, margins - mostly due to the com- mains upbeat that the strong glob- within New Zealand. which reached $80 per barrel in petitive environment. al economic conditions will con- recent weeks, with some airlines “If the fuel prices are up by tinue to push demand up. AIR INDIa SaLE DEaDLINE in Asia seeing pressure on their about a third, you’d have to see “Consumer confidence is still PaSSES WITH NO bIDS margins. Last year, that was offset fares would have to go up six or high, business confidence and New Delhi has confirmed it by stronger passenger volumes seven percent to neutralise that. trade is still solid, and it’s very has not received any respons- and higher load factors, but there We haven’t seen that yet, so that hard to find economies that aren’t es from interested parties for has been a “lag” in ticket prices implies that margins are being growing,” he adds. ■ the privatisation of Air India. “As informed by the Transac- tion Adviser, no response has been received for the Expres- Singapore Airlines set to reclaim longest flight crown sion of Interest floated for the strategic disinvestment of Air Singapore Airlines will start oper- SIA will receive its first A350- be in operation. India. Further course of action ating the world’s longest commer- 900ULR in September, with the re- “Singapore Airlines has always will be decided appropriate- cial flight from 11 October, com- maining six on order scheduled taken pride in pushing the bound- ly,” says the ministry of civil mencing a near-19 hour nonstop for delivery by the end of the year. aries to provide the best possible aviation. The 31 May dead- Singapore-Newark service. All seven aircraft feature 67 busi- travel convenience for our custom- line had already been extend- Using A350-900ULRs configured ness and 94 in premium economy ers, and we are pleased to be ed by two weeks. New Delhi with 161 seats, the carrier will initial- class seats. leading the way with these new wants to sell a 76% stake in ly fly thrice-weekly on the route, be- Plans to launch nonstop Singa- non-stop flights using the latest- Air India, which includes its fore growing to daily frequency on pore-Los Angeles services will be technology,” says SIA’s chief exec- Air India Express subsidiary 18 October. announced at a later date. Its Sin- utive Goh Choon Phong. and a 50% stake in ground gapore-Frankfurt-New York John SIA last operated nonstop handler Air India SATS.