Executive Industry News You Need To Know Today
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"We see cautious growth in the reopening of international airspace and routes. The question remains post initial pent-up demand will the routes still remain financially viable? - dre aviation"
In today's update we are covering the following topics:
Croatia: Flights to Croatia: Lufthansa Delays Zagreb Service to March 2021, Air France Cancels Split
France: Air France resumes Paris Orly-Toulouse service
India: Vistara airline to run special flights on Mumbai-Dubai route
Japan: Japanese airline trials hands-free toilet doors amid pandemic
Japan: JAL tests contactless check-in kiosks at Tokyo Haneda Airport
Kenya: Kenya Airways puts Israel flights on hold over Covid
Kuwait: Kuwait Airways launches Kuwait City-Guangzhou service from late Aug-2020
Nigeria: Airline operators will pay $3,500 per pasenger if they break protocols – PTF COVID-19
Nigeria: We ‘ll continue to record sharp decline in passengers until Q-4 2021 – Sirika
Nigeria: Dana Air Resumes Owerri, PH Routes, Increases Lagos-Abuja Flights
Nigeria: Foreign Airlines Await ‘Lucrative’ Nigerian Sky
Oman: Oman Aviation Group becomes global member of WTTC
Serbia: Serbian Government in negotiations with Air Serbia creditors regarding debt repayment
South Africa: LETTER - No need for SAA
The Netherlands: KLM Royal Dutch Airlines resumes Hangzhou service
UAE: Emirates and Etihad airlines ask crew to take more unpaid leave
UAE: Emirates to return to full flight schedule by Summer 2021
United Kingdom: Wizz Air Sets Sights on 20-Jet Gatwick Base as Rivals Retreat
United Kingdom: Covid Crisis Hits Low Cost Carriers But Wizz Air Seizes The Opportunity
United States: Air Lease Is Flying High Despite Airline Industry’s Troubles
United States: SFO to reopen entire international terminal as airlines return
Croatia
Flights to Croatia: Lufthansa Delays Zagreb Service to March 2021, Air France Cancels Split - Total Croatia News
France
Air France resumes Paris Orly-Toulouse service - Headline Only
India
Vistara airline to run special flights on Mumbai-Dubai route - Gulf News
Japan
Japanese airline trials hands-free toilet doors amid pandemic - The Independant
JAL tests contactless check-in kiosks at Tokyo Haneda Airport - Airport Technology
Kenya
Kenya Airways puts Israel flights on hold over Covid
Kenya Airways has put on hold plans to start flights to Israel as the carrier continues to reel from the effects of Covid-19.
KQ managing director Allan Kilavuka said they are now concentrating on stabilising the existing network with the Tel-Aviv flights put on hold for future date.
Israel Ambassador to Kenya Joseph Oded had told the Business Daily that a Kenyan delegation was to visit Israel this year for negotiations on the deal but that was halted by the outbreak of Covid-19 pandemic, which saw grounding of flights worldwide.
“We are putting them on hold for now as we try and stabilise the network,” Mr Kilavuka said yesterday.
KQ was to start nonstop flights between Kenya and Israel last year March but the plans were dealt a blow after Sudan restricted the national carrier from using its airspace to Israel because of diplomatic differences between Tel-Aviv and Khartoum.
Mr Oded said the delegation from Israel was also to visit Kenya on talks regarding direct flight between the two countries.
He said the Tel-Aviv route is viable as there are a lot of people from the East Africa and beyond who would want to travel to Israel directly from Nairobi.
Currently, most passengers travelling to Israel use Ethiopian Airways or RwandAir, which are the only flights in Eastern Africa that go to the country.
By: Gerald Andae
Source: www.businessdailyafrica.com
Kuwait
Kuwait Airways launches Kuwait City-Guangzhou service from late Aug-2020 - Headline Only
Nigeria
Airline operators will pay $3,500 per passenger if they break protocols – PTF COVID-19 - Nairametrics
We ‘ll continue to record sharp decline in passengers until Q-4 2021 – Sirika
The Minister of Aviation, Hadi Sirika, on Monday, said that until the forth quarter of 2021 or perhaps the first quarter of 2022, the aviation sector would continue to record sharp decline in passengers which was directly proportional to the revenue generated.
This, the minister attributed to the effect of COVID-19 pandemic which had dwindled revenue generation of the industry.
Sirika said this during an interactive session in Abuja with the Senate Joint Committee on Finance and National Planning.
The session was on the the 2021-2023 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Plan (FSP) of some revenue generating agencies of the government.
Sirika said “The revenues for yesterday is lost. Therefore, we were hugely impacted by the COVID and with this COVID, I think until quarter four of 2021 and perhaps quarter one of 2022, we will continue to see sharp decline in passengers and that is directly proportional to the revenue that we collect because people’s confidence has to be raised.
They have to begin to want to fly again and certain factors that encourages propensity to fly are also being eroded during this period.
“So we are in a difficult and challenging times and we do not have solutions to it even as advanced countries are spending huge amounts of money to support civil aviation businesses.
“The government, because of the challenge of funding has not been able to respond to civil aviation requests and civil aviation funding like other countries have done.”
Sirika while responding to the question by chairman of the committee on Finance, Solomon Adeola whether with the current economic challenges if some of the funds be mopped up to fund the national budget said…
“If government is not able to fund us because of the challenge of income, then government should not take the little that we have.
“Every single agency in civil aviation is so critical that we need to fund it and because we understand the nature of this business that was why we have now introduced the concession of our airports.”
He further noted that the sector had done the outline business case and was going ahead for the procurement to concession the airports.
“The reason is simple and that is because this government, the APC administration, is social-democratic in nature, it does not want to sell national assets.
“It wants to keep the assets with the people but we can concession them and improve them to make them better.
“We are very sure that when we do that we will improve the revenue of the nation,” he said.
Sen. Adeola mandated the minister to furnish the committee with the state of account of BASA between 2017 to 2020 including the expenditure that had occurred in the account within the same period.
News Agency of Nigeria (NAN) reports that the BASA is a Bilateral Aviation Safety Agreement for aviation development which could be utilised by college of aviation technology, Federal Airports Authority of Nigeria (FAAN), Nigerian Civil Aviation Authority (NCAA) among others.
Source: NAN
Dana Air Resumes Owerri, PH Routes, Increases Lagos-Abuja Flights
Dana Air has confirmed that it would introduce additional flights between Abuja and Lagos, and commence Lagos to Owerri, as well as Port Harcourt to Abuja beginning from August 28.
The airlines’ Manager, Media and Communications, Mr Kingsley Ezenwa, made this known in a statement in Lagos, yesterday.
Ezenwa quoted the airlines’ Accountable Manager, Obi Mbanuzuo, as saying that the additional flights were due to the feedback from the guests and popular demand for flights at specific times.
“The additional Lagos to Abuja flight will depart at 8am, 11.50am, 3.40pm and 5.30pm, while the Abuja to Lagos flight will depart at 9.55am, 1.50pm, 5.30pm and 7.25pm.
“Lagos to Owerri will depart at 7.10am, while Owerri to Lagos will depart at 8.45am. Lagos to Port Harcourt will now be at 10.30am while Port Harcourt to Lagos will depart at 3.35pm.
“Port Harcourt to Abuja daily flights will be at 12.05pm, and Abuja to Port Harcourt will depart at 1.45pm.
“We are also delighted that our guests have embraced the safety measures we have in place for them,” Mbanuzuo said.
Mbanuzuo said that for safe and ease of booking and reservation, guests should visit: www.flydanaair.com, download the DANA Air Mobile App on Google Playstore or get social by sending a chat on WhatsApp (07051190363) for booking.
Foreign Airlines Await ‘Lucrative’ Nigerian Sky
The pressure for Nigeria to reopen its airspace after over five month hiatus occasioned by COVID-19 was huge.
Despite the evacuation/humanitarian flights approved by the Federal Government to give stranded Nigerians and other nationals a window of opportunity to be with their families and loved ones did not assuage the pain many people encountered. Nigeria suspended all flights in March after the country’s coronavirus cases increased from 12 to 22.
The initial ban was meant to last for one month, but as cases continued to grow, the ban was extended. Despite the window of evacuation, many people could not afford the exorbitant fares put together by many countries, which are paid for by desperate travelers. So, they decided to wait for when the ban on international air travel would be lifted.
Prayers answered
That prayer was answered when the Minister of Aviation, Hadi Sirika, on August 17, 2020, disclosed on the micro-blogging site, Twitter. “Glad to announce the resumption of international flights from August 29, 2020, “Beginning with Lagos and Abuja as we did with the domestic flight resumption,” he tweeted, adding that all protocols must be observed.
“Protocols and procedures will be announced in due course. We thank you for your patience,” he added. The minister said Nigeria’s international airports had reached advanced stages of preparedness for the resumption of international flight operations.
Airlines in bated breath
Since the announcement, foreign carriers are dusting their airplanes with a view to starting immediate operations into the country.
Many of them are at various stages of compliance with the protocols they need to comply with before they are given the green light to fly into Lagos and Abuja; two airports that are being used for experiment before more other international airports are thrown open.
Virtually all foreign airlines have not met the condition but there is hope that they would do so before or after the planned August 29 resumption. Virgin Atlantic, at the weekend, said it would be welcoming customers back onboard as it makes a return back to Lagos on September 10, 2020.
A statement from the carrier said to ensure the health and safety of customers and crew, Virgin Atlantic was implementing additional measures to offer peace of mind at airports and when taking to the skies.
These include enhanced and thorough cleaning practices at check in, boarding gates and onboard including the use of electrostatic spraying of high-grade disinfectant in all cabins and lavatories before every flight, ensuring no surface is left untouched. Safe distancing will also be adhered to wherever possible, and mask wearing will be required throughout the journey.
All customers will be provided with a personal Health Pack for their health and safety, which will contain three medical grade face masks to be worn on-board, surface wipes and hand gel.
The allure Yes, Nigeria’s aviation market may be regarded as small, weak and fragmented, but the allure the route brings to many foreign airlines including African carriers brings to question what they see that have made them remain including many asking for extra frequencies.
The contribution of the aviation industry to Nigeria’s economy (in nominal value) increased by 0.14 per cent in 2019, as it rose to N198.62 billion, according to the National Bureau of Statistics (NBS).
But there are concerns that the feat would not be repeated or surpassed in 2020, as the industry has suffered expected decline due to coronavirus pandemic. The year started rough for the aviation industry globally with the spread of coronavirus.
This led many countries to place travel ban or restrict foreign flights into their countries. Aside European, Gulf, and American airlines, African airlines like Ethiopian Airlines, Kenyan, South African Airways, EgypAir, Africa World Airlines (AWA), ASKY are excited to begin their predation on the market, which unfortunately is underserved by Nigerian airlines and likely to remain so for a long time to come.
The local airlines, small, weak and under-capitalised are unable to compete favourably to drive the local potential market. Inefficient indigenous airlines Some 23 foreign airlines are taking advantage of the local inefficiency, controlling at least 90 per cent of the market share on routes to and from Nigeria.
Air Peace, which is regarded as the country’s biggest airline, in truth, is smaller than the weakest airline in Europe and elsewhere.
It lacks the capacity and capability to serve West African market not to talk of markets in the continent. Notwithstanding the harsh economic reality, the classification of Nigeria as high yield and mixed income route would continue to make foreign carriers flourish.
Experts’ views
Managing Director, Aero Contractors Airlines, Capt. Ado Sanusi, said: “The high yield has made them to see Nigeria as an attractive market. High yield means that if you look at how they calculate it, it is price per seat kilometer. “What it means is that in a simple man’s language, it is flying from point A to B, a difference of, let’s say, 10 klm and you charge let us say N15.
That means you are burn ing the same fuel and you are almost having the cost for the same yield. The yield is what is attracting them. It is a short distance of six hours. The ticket price is more than anywhere in the world.
“The same thing is applicable with airlines on the continent. Most of our tickets are quite expensive out of Abuja, out of Lagos, Enugu anywhere out internationally. They like those tickets because they tend to breakeven quickly. Lufthansa has a lot of business class travel out of Nigeria for instance.” “The moment they have filled half of their business class, they have broken even.
The people at the back are just profit and most Nigerians fly business and first class. Once they fill the front cabin, the rest is more profit for them and if you go to Europe on the other hand, people like to fly tourist class,” he added.
Chairman, African Business Aviation Association (AfBAA), Nick Fadugba, said Nigeria had a buoyant international and domestic air transport market, but “lack of airline business knowledge and acumen to do basics like fleet planning, route network scheduling and aircraft finance and lease negotiations are major constraints in the very complex aviation industry in Nigeria.”
Last line
Undoubtedly, Nigerian aviation sector has great market, especially with increasing population of the middle class. The biggest threat to the Nigerian domestic airlines is from foreign operators. They need effective strategy. Addressing these challenges will significantly unlock the industry’s potential for future growth.
By: Wole Shadare
Source: www.newtelegraphng.com
Oman
Oman Aviation Group becomes global member of WTTC - Zawya
Serbia
Serbian Government in negotiations with Air Serbia creditors regarding debt repayment - Headline Only
South Africa
Letter - No need for SAA
One point John Fairwell (“Kgathatso Tlhakudi will not ask about SAA as answers are too dire to accept”, August 20) did not mention is important: the loud call for our own national flag-carrier claims that the state must own the flag carrier, and that’s not true.
Many airlines bear the titles of flag carrier for their home nation, British Airways being a prominent example, but they are not owned by the state. They are privately owned.
We do not need SAA for any reason. Private operators will also launch services wherever they see demand, if they are permitted, so the argument about loss of capacity holds no water either.
Chris Taylor, Via e-mail
Source: www.businesslive.co.za
The Netherlands
KLM Royal Dutch Airlines resumes Hangzhou service - Famagusta Gazette
UAE
Emirates and Etihad airlines ask crew to take more unpaid leave - Reuters
Emirates to return to full flight schedule by Summer 2021 - Dubai Lad
United Kingdom
Wizz Air Sets Sights on 20-Jet Gatwick Base as Rivals Retreat - Bloomberg
Covid Crisis Hits Low Cost Carriers But Wizz Air Seizes The Opportunity - Forbes
United States
Air Lease Is Flying High Despite Airline Industry’s Troubles - LA Business Journal
SFO to reopen entire international terminal as airlines return - SF Gate
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