Air Transport: Quarterly Report No.10
Total Page:16
File Type:pdf, Size:1020Kb
Sir Freddie Laker’s SKYTRAIN. Sir Freddie, a pioneer of low cost travel, died on 9 February 2006. AIR TRANSPORT: QUARTERLY REPORT NO.10 1ST QUARTER 2006 (January to March) 1. Highlights and key developments................................................................................................................................... 2 1.1 Regulatory.................................................................................................................................................................... 2 1.2 Capacity ....................................................................................................................................................................... 2 1.3 Traffic........................................................................................................................................................................... 2 1.4 Financial Results.......................................................................................................................................................... 3 1.5 Airports ........................................................................................................................................................................ 3 1.6 Aircraft and manufacturers .......................................................................................................................................... 3 2. Scheduled capacity........................................................................................................................................................... 4 3. Air traffic .......................................................................................................................................................................... 7 3.1 Passengers .................................................................................................................................................................... 7 3.2 Air Cargo...................................................................................................................................................................... 9 4. Airline financial performance ...................................................................................................................................... 11 4.1 European Airlines ...................................................................................................................................................... 11 4.2 Other major world airlines......................................................................................................................................... 15 5. Airports ........................................................................................................................................................................... 16 5.1 General traffic trends ................................................................................................................................................. 16 5.2 Traffic growth at individual airports ......................................................................................................................... 17 5.3 Developments in airport ownership........................................................................................................................... 18 5.4 General airport developments.................................................................................................................................... 19 5.5 AEA delays ................................................................................................................................................................ 19 6. Air Traffic Control ........................................................................................................................................................ 20 6.1 Airspace management................................................................................................................................................ 20 6.2 ATC delays ................................................................................................................................................................ 20 6.3 Single European Sky ATM Research (SESAR)........................................................................................................ 20 7. Environmental developments: EU ETS....................................................................................................................... 21 8. Special topic: air safety.................................................................................................................................................. 22 Cranfield University: Quarterly Report Q1/2006 for DG TREN 1 1. Highlights and key developments 1.1 Regulatory • The Commission authorised rescue aid for the Italian airline, Volare Airlines. This is intended to allow the airline to continue operating by means of a €25 million six- month duration guarantee from the Italian government. • The European Court of Justice backed rules agreed by the Parliament and ministers aiming to provide better protection to passengers. The rules were challenged in the British court by the European Low Fares Airline Association and IATA. The British High Court asked the EU court to rule on whether the legislation infringes EU rules. • The Commission will authorise rescue aid for Cyprus Airways. The aid consists of a €51 million loan guarantee for the next six months to allow restructuring of the airline. The Commission has examined the rescue aid for Cyprus Airways and checked that it complies with Community rules. • The EC adopted the first EU list of airlines banned in the EU. This blacklist of unsafe airlines is published on the Commission’s website. (http://europa.eu.int/comm/transport/air/safety/doc/flywell/2006_03_22_flywell_list_en.pdf) 1.2 Capacity • Measured in terms of the number of scheduled flights operated per week, air transport capacity within Europe increased by 4.3% between January 2004 and January 2005. • Accession states and candidate states continued to lead this increased activity, albeit from relatively low base levels. • The number of airports involved in intra-European, cross-border air services increased, often as a result of the activity of low-cost carriers. 1.3 Traffic • AEA scheduled traffic, measured in RPK, was up 2% in the three-month period to end February 2006 compared to the same period in 2004/5. Capacity was up only 2.3% such that the average seat factor fell by 0.2% points to 72.6%. • Strongest growth in RPK was recorded in this period on Europe to/from the Far East/Australasia (11.3%), followed by sub-Saharan Africa at 5% and Mid- and South Atlantic (4%). The North Atlantic recorded a fall of 4.4% in RPK, and a drop of almost two percentage points in load-factor. • Europe’s major low-cost airlines easyJet and Ryanair posted passenger traffic increases of 9.1% and 20.8% respectively for Q1. Cranfield University: Quarterly Report Q1/2006 for DG TREN 2 1.4 Financial Results • Of the major European network carriers, only Austrian made an operating loss for the quarter to end December 2005, but they were joined by Alitalia and Swiss in losing money for the full calendar year 2005. Only a few carriers returned better results than for the previous last quarter, for example Air France-KLM and British Airways. Alitalia improved but was still far from breakeven. Lufthansa, Finnair, Iberia and Austrian fared worse. • Ryanair’s operating profit for the last quarter of 2005 was down slightly, with its operating margin still a healthy 13% in one of the off-peak quarters. For the full calendar year 2005, Ryanair’s operating margin was 23%. EasyJet did not report fourth quarter, but posted net profits of £68 million for the full year to end September 2005, up 9.1% over the previous year. • A large proportion of European airlines has been involved in discussing labour agreements with their unions with different degrees of success. Alitalia and SAS both suffered as a result of strikes by sections of their labour forces. 1.5 Airports • Ferrovial launched a takeover bid for UK airports company BAA. The bid was rejected by BAA. • Lufthansa raised its stake in German airport operator Fraport from 5% to 9.1%. 1.6 Aircraft and manufacturers • Airbus announced that it had managed to beat Boeing in terms of net orders for 2005 – their total being 1,055 against 1,002 for the US manufacturer. However, Boeing were on top in terms of revenue generated. Overall the total for all airliner orders was the largest in history, exceeding the previous highest figure of 1,594 (for aircraft with more than 100 seats) of 1989. • Airbus announced they would cease production of the A300/310 family of aircraft in July 2007. This marks a milestone in the history of the pan-European manufacturer since its first aircraft was the A300, delivered in 1974. Assuming production ceases as planned in 2007, a total of 561 A300s and 255 A310s will have been produced in 33 years. • Boeing Commercial Aircraft improved its results dramatically for full year 2005 compared to 2004 with an almost doubling in income and an increase in backlog to unprecedented levels. • Bombardier suspended its plans for the C-Series aircraft having failed to secure any orders for the all-new 110-130 seater. While not abandoning the idea totally, the Canadian manufacturer re-deployed many staff and has decided in the short term to concentrate on sales of the Q400 and CRJ900 aircraft. • ATR