Air Transport Industry: On the road to recovery

According to IATA, the Air Transport Industry is recovering at a slow pace. The International body has revealled that Global air travel demand is stabilizing. Passenger traffic in September was 0,3 per cent up compared to the same period last year. Cargo volume was down 5.4 per cent. However, load factors have increased, reaching post recession levels (77,1 % for PAX and 50,8% for Cargo). Robusness of load factors is mainly explained by lower yields (-14% in Economy Class, -18% in Business, -20% in Cargo) due to fares reduction policies adopted by airlines to stimulate falling demand during the recession. As oil prices remain relatively high, airlines are constrained to adjust their capacity, hence reducing Aircraft Utilization and productivity, and raising unit costs.

Source: Air Transport News

EyptAir and SAA to set up a joint venture company

The two carriers are planning to create a joint venture airline to serve routes not well covered in western and central africa. They believe there are significant market potentials in these regions. In fact, there are very few cities pairs in the regions, and the route network is very poor. They currently fly to 35 destinations within the continent.

Source: Business report

Lufthansa looses $47 million

The German carrier, the biggest in europe by market value, announced yesterday that it losed about $47 million for the first nine months of the current year, and the company is expecting a full year operating loss. That situation contrasts with last year's $800 million net profit. Stagnant travel demand and high oil prices are the major factors behind the bad performance. The carrier believe capacity reduction is the way forward and is trying to adapt its seats offer to the demand. They also announce that they are seeing opportunities in many african countries where they've invested.

Source: CNN, Financial times

ICAO: Crucial Year for CNS/ATM and PBN implementation

The Air Transport industry has changed in a significant manner over the past decades. The traffic volume have grown in such a way that certain parts of the world are already facing capacity shortages. The traffic is expected to more then double over the next 15 years according to ICAO and IATA.

These changes were dictated by a combination of other factors, mainly operational and financial, following a succession of crisis and economic downturns. The airline industry is increasingly sensitive to the cost of operating aircraft. Air carriers demand direct routes, flight level optimization, efficiency in-flight, improved en-route fuel consumption, and better safety.

The Aviation Community has been developing for 2 decades new concepts and technologies to provide the industry with tools that will allow it to continue growing, whilst maintaining high standards of safety.

As resolved in ICAO's 2007 General Assembly, 2009 is a crucial year in the process of implementing such systems, also called CNS/ATM. The States and Planning and Implementation Regional Groups (PIRGs) were urged in 2007 to complete a PBN (Performance Based Navigation) implementation process by the end of this year.

PBN is a set of concepts supported by brand new technologies that will increase global air transport system's efficiency, capacity, effectiveness and safety. They will also help to reduce air travellers' carbon footprint. These are basically, Area Navigation (RNAV), Required Navigation Performance (RNP), Approach procedures with Vertical Guidance (APV, GNSS), and Reduced Minimum Vertical separation (RMVS).

Modern aircraft are normally fitted or retrofitted with required systems. Airlines, opposed in the first place to what they feared to be costly upgrades imposed by the regulators based on unreliable Cost Benefit analysis, are now egger and certain to draw consistent benefit from the new concepts and systems.

States are required to have implemented 30 per cent of the systems by 2010, 70 per cent by 2014 and 100 per cent by 2016. Despite a recent setback in the FAA's nextGen trials program, experts believe that major states will meet the deadlines. Even ASECNA CNS/ATM program is well advanced, with the implementation of Secondary radars, ADS-B ADS-C, CPDLC, RNAV and RMVS systems and concepts over its airspace. This is a vital question for the industry, if it wants to continue to grow safely.

Source: MSc Thesis Cranfield; ICAO Journal, n° 4, 2009

Kenya Airways has launched Naïrobi -Bangui Route

The Kenyan flag carrier has started serving its 46th destination as "the pride of Africa" launched twice direct weekly flights to Bangui, Central African Republic. The Company expects to catch the traffic generated by diamond, coffee, timber and cotton trade between the country and Europe.  The importers of food and commodities will have easier and better connectivity to suppliers in other continents. KQ will apply the fifth freedom of the air between Bangui and Douala in Cameroon. The new service is part of a network expansion strategy started recently.

Source: Air Transport News

DELTA TO OPEN NEW ROUTES IN AFRICA

The Amercian carrier Delta airlines is planning to develop new routes to Africa. The airline will fly a 767-300 to acrra and abuja, from Atlanta and JFK respectively starting from june next year.

Source: Air Transport Intelligence

South Africa and New Zeland extend their air services agreement

The two countries have agreed on the fifth freedom principle, that will allow their respective carriers to pick up passengers and cargo from Australia, and fly onto one or the other country. South African Airways (SAA) and Air New Zeland have also signed a code sharing agreement to expand their route network and tpo offer their customers more destinations choice.

Source: Flightglobal

SAA launched a new route mapper application to sustain its marketing strategy

The South African Flag Carrier (SAA) was the first to launch a new online service based on an application hosted by OAG Aviation. The new application aims at marketing the carrier's route network and services. The application is linked to SAA's reservation system and website. Its practically allows its customers to check at a glance all the airports they could fly to with the carrier, and to have all the details of a particular flight.

Source: UBM aviation

Latest Airline Business Global air carrier rankings

The latest airline business global air carrier rankings reveal a dramatic turnaround from 2007 industry' performance. In fact, 2007 was one of the most profitable ever, contrasting with last year' results estimated to be among the worst, even worst than the post 9/11 downturn. Total revenues increased by 8.6 per cent, due to growing ancillary revenues (charges for checked bagage, premium seating, soft drinks), the decrease observed in oil prices, that significantly impacted their fuel bill, and capacity reductions. This shining picture in the revenue side did not prevent the airlines to net loose about $32,2 billions, which is worst than post 9/11 crisis. Lufthansa was the most profitable airline ($880 millions net profit). Delta Airline suffered the heavist losses with $8.9 billions due essentially to strategic errors in fuel hedging options.

Source: Airline Business, Daily Travel news

AFRICAN AIRLINES WILL POST LOSSES IN 2009

According to IATA, African air carriers are expected to post losses of about $500 millions this year. It represents 5.5 per cent of the world airlines estimated losses. The economic downturn with a 13 per cent decrease in global trade contracts, combined with the loss of market share are the main contributing factors. This will certainly further weaken some of the contient' airlines, particularly in west and central africa, that are already facing disproportionate competion from major European carriers such as Air France on the Africa-France market.
But despite these dark forecast, the african market remains attractif as the continent suffered a limited impact of the financial crisis compared to elsewhere. The continental market is holding up but there is little signs of fondamental improvement in the continent' airlines prospects IATA reported. Even if some airlines like Tunisair or Ethipian are performing well. The latest is beating all time records with a 55 per cent increase of its operating revenues and a 9 per cent increase in its net profits.

Some analysts however wonder why airlines dont fly more to africa, where yields are very high, and the competition limited,  instead of parking their aircraft or using them on the busy transalantic market.

Source: Future Airport, issue 2, 2009

TANZANIAN GOV TO BUILD A BRAND NEW AIRPORT IN SERENGETI

Tanzanian Governement is about to sign an agreement with a swiss investment firm over the build of a brand new airport in serengeti. Forecast show a large increased in the number of tourists visiting the city. the 70 000 TOURISTS that visit the serengeti national park national park each year will be able to to directly travel to the city , hence avoiding the actual stop at Kilimanjaro International Airport, and the long road journey between the two cities. The Project is expected to start next year, and the direct and indirect impact are estimated to be important for the local communities.

(Sources: Airport Technology, Dailynews tanzania)

Revolutionary Airport Security Screening Systems

Canadian Airport to Use Controversial Screening Technology

16 October 2009

"Pearson International Airport in Canada is set to use the services of a controversial screening technology which allows the passengers to be viewed 'naked'. The $200,000 scanner was successfully tested for six months at another Canadian airport. The device displays black and white images of a person and is able to detect weapons within 30 seconds. The black and white images are produced by X-rays and reveal no facial features, therefore offering complete anonymity".

(Source, Airport technology

I've often come accross that kind of articles or news in the past, so did you of course. But it was in science fiction (SF) magazines or TV programs. There was no need to worry and we could peacefully sleep dreaming of speedy space vehicules reaching the far end of our galaxy. But this time what you've just read has nothing to do with SF. Because of the terrorist threat, the aviation community is seeking ways to prevent badly intentionned people to introduce prohibited items into planes. After a set of regulations aiming at restricting the content of cabin bags to the strict necessary (The so called Liquid Gel Cabin ban) , now comes the era when the passengers are viewed undressed while going through security screening systems at airports. That's great isn't it? so we're all going to apply for the position of airport screening agent to rince our eyes.

But wait a minute falks!

Several weeks ago, a suicid bomber exploded himself and left dozen killed in Pakistan. It was later found the activist had hidden the bomb within a part of his body spelled "ass". Believe me, that's true. So, airport security systems manifacturers still have a long way to go. They will have to go deeper inside our bodies. As mankind is always quick to escalate, there is no reason why the next step should not be to have our filled intestines inspected at airports. In this case, who still wants to apply for the position?... LOL.