Executive Industry News You Need To Know Today
Brought to you by dre aviation - Africa's Leading Airline Consultancy.
As international flights resume, there is a sense of relief amongst the aviation community. There is also talk of some US international routes opening up, albeit in limited capacity, but that again is another shot in the arm for an heavily fatigued industry.
The more we talk to key aviation players the more encouraged we are that some sort of new norm is being restored. That said, we expect pre Covid19 loads will not come back to atleast 2023, however, we must keep moving forward and this week has shown progress. Progress is progress no matter how gradual. We expect international load factors to be strong in the short term and as discussed many times before, the big question remains if the loads will be sustainable going forward. Time will tell...
One theme we picked up on this week is in the ground handling arena. Self handling may be back on the agenda, where possible, for the re-emerging cost focused carriers. Watch this space as we will monitor if this is just a blip (VietJet and Air India are in the news for this currently) or if this becomes a rising pattern.
As forecast, further industry job losses have been announced globally and we see this trend continuing for a number of months going forward, especially in some of the developing markets which have not been so aggressive or reluctant to react to the Covid19 market impact.
Fortunately, the spat between Kenya and Tanzania on reciprocal traffic rights has been resolved, the less said on this unfortunate lack of respect for bi-lateral air services the better.
As African airports open up again, we commend the respective airport authorities and aviation ministries for delivering competent responses to the Covid19 challenges and hope that flight schedules can be maintained and grown into the future.
Wishing you a successful week ahead.
Africa's Leading Airline Consultancy
In today's update we are covering the following topics:
Cameroon: Paul Biya instructs quick operation resumption and a shift to domestic flights
China: China’s embattled HNA cedes control of baggage handler Swissport to senior creditors in €1.9 billion debt-for-equity swap
France: Air France-KLM firms up plan to raise funds amid travel slump
Germany: Lufthansa Weighs Cutting More Jobs as Travel Slump Endures
India: US to allow Air India to conduct ground handling at airports
India: Indian Government to evaluate AAHL’s plan to acquire Mumbai Airport
India: Patna airport will be able to handle 8 million passengers annually by March 2023
Indonesia: Garuda Indonesia resumes flights to China amid eased restrictions
Indonesia: Embattled Asian and global airlines turning to state bailouts
Indonesia: Garuda Indonesia Group pax down 87.5% in Jul-2020
"You fed-back and we listened: you wanted more regions and airlines covered in our weekly update, we are pleased to be of service and thank you for your continued support."
Italy: Wizz Air To Operate Domestic Italy Routes From Milan Malpensa
Japan: All Nippon Airways to operate 21 international services in Sep-2020
Kenya: Kenya Airways Posts Record Half-Year Loss
Kenya: Kenya allows Tanzanian airlines amid row
Kuwait: Jazeera Airways announced H1 2020 Earnings
Latin America: Colombia announces $370 mn loan to pandemic-hit airline Avianca
Malaysia: Malaysia Airlines halts flights to Brisbane, Adelaide, Perth
Mexico: Aeromexico analyzes firing a thousand flight attendants from its workforce
Namibia: Air Namibia Extends Suspension Of Flights
Nigeria: Nigeria Bars Some Long Haul and Regional Carriers as Airspace Reopens
Nigeria: A’Ibom Will Become Aviation Hub In West Africa, Gov Emmanuel Vows
Nigeria: FAAN Workers Protest Nigerian Government's Plan To Concession Airports
Oman: Oman Air announces readiness to deal with resumption of flights
Russian Federation: Aeroflot works on resumption of Egypt, Maldives and UAE services
Russian Federation: Aeroflot Resumes Flights To Dubai From September 11
Russian Federation: Aeroflot plummets to second-quarter loss as air traffic tumbles
Rwanda: RwandAir moves to reap from Tanzania, Nairobi aviation tiff
Singapore: Ground handling firm dnata retrenches Singapore employees due to COVID-19 disruption
"dre aviation will be announcing a major CSR partnership in the coming week, we will share the details in next week's client update."
Somalia: Qatar Airways to resume Mogadishu flights
South Africa: Ethiopian Airlines in rescue talks with South African Airways - CEO
Taiwan: Direct Taipei-Prague flight services likely: officials
Tanzania: KLM, Qatar and Ethiopian Airlines to Add More Flights to Tanzania
The Maldives: British Airways to resume London Heathrow-Male service in Oct-2020
Uganda: Uganda Airlines flies 75,000 passengers in first year
United Arab Emirates: Emirates airline gets US$2 billion injection from Dubai government
United Kingdom: Ryanair boosts balance sheet with €400m share placement
United Kingdom: IAG's new boss to take helm as airline industry reels from the biggest crisis in its history
United Kingdom: UK’s Stobart Group confirms talks to sell Dublin-based Aer Lingus Regional operator
United Kingdom: Virgin Atlantic: Airline to cut 1,150 more jobs as it completes £1.2bn bailout
United Kingdom: Qatar Cargo moves into Menzies Aviation base at Heathrow
United States: American Airlines chops 83,000 flights from its October schedule
United States: Struggling airline industry leads US job cuts in August
Vietnam: Vietjet kicks off self-handling ground operations
Vietnam: Vietnam reopens flight paths to cities in Asia
Cameroon
Paul Biya instructs quick operation resumption and a shift to domestic flights
Since July 2020, at least three multisectoral meetings have been held in the offices of Prime Minister Joseph Dion Ngute to finetune public airline Camair-Co’s reorganization plan.
According to an authorized source, these meetings are closely monitored by President Paul Biya who instructed the government to work towards the resumption of the airline's activities as soon as possible.
Because of the president’s instruction, Camair-Co could resume operations in September 2020, instead of October as the reorganization plan was projecting, a source close to the case informs. Also, the source adds, President Paul Biya has ordered the company’s activities to be refocused on domestic routes to facilitate mobility in the country.
This order is in line with the strategy applied by former Camair-Co MD Ernest Dikoum. In 2017, the latter refocused the airline's operations offering only domestic flights. At the time he left the company’s management, Camair-Co was offering flights to seven of the ten regional capitals in Cameroon.
Therefore, with the various measures already initiated by the government to increase the Camair-Co’s fleet, the airline can easily launch routes to the remaining three regional capitals. Indeed, in a letter sent on July 14, 2020, to Prime Minister Joseph Dion Ngute, the Secretary-General of the Presidency of the Republic (Ferdinand Ngoh Ngoh) revealed that in preparation for the reorganization plan that will pave the way for Camair-Co’s privatization (as per the instructions of the President of the Republic), XAF15 billion has been provided to the company’s top management.
A new Managing Director
According to the Secretary-General, the funds provided were to be used to send the Boeing 737-700 NGs to the maintenance facility, acquire two Dash Bombardiers Q400 (better suited for short routes) and lease two engines for the second Boeing 737-700 NG.
The aircrafts thus available thanks to the fund will complete the two MA60s and the Bombardier Q400 already in Camair-Co’s fleet. With such a renewed fleet, the airline can confidently resume its operations in the coming weeks pending the appointment of a new MD. Indeed, public authorities are still looking for a new MD to replace Georges Njipendji Kouotou, after Charles Tawamba (the retired customs officer, renowned for his discipline, who reorganized Campost) rejected an offer to assume the position.
According to our sources, besides Charles Tawamba, the government also contacted two officials for this position but they both declined since it is considered a poisoned chalice regarding Camair-Co’s dire financial situation. Indeed, at the end of 2018, its debts were estimated at XAF110 billion, and in 2019 and H1-2020, it recorded XAF15 billion and XAF12 billion of projected losses respectively. Let’s note that since its establishment in 2011, the airline has been facing cashflow problems.
By: Brice R. Mbodiam
Source: www.businessincameroon.com
China
China’s embattled HNA cedes control of baggage handler Swissport to senior creditors in €1.9 billion debt-for-equity swap - South China Morning Post
France
Air France-KLM firms up plan to raise funds amid travel slump - Ajot
Germany
Lufthansa Weighs Cutting More Jobs as Travel Slump Endures - Bloomberg
India
US to allow Air India to conduct ground handling at airports - Indian Express
Indian Government to evaluate AAHL’s plan to acquire Mumbai Airport - Airport Technology
Patna airport will be able to handle 8 million passengers annually by March 2023 - Hindustan Times
Indonesia
Garuda Indonesia resumes flights to China amid eased restrictions - The Jakarta Post
Embattled Asian and global airlines turning to state bailouts - Nikkei Asian Review
Garuda Indonesia Group pax down 87.5% in Jul-2020 - Headline Only
Italy
Wizz Air To Operate Domestic Italy Routes From Milan Malpensa - Aviation Week
Japan
All Nippon Airways to operate 21 international services in Sep-2020 - Headline Only
Kenya
Kenya Airways Posts Record Half-Year Loss - EABW News
Kenya allows Tanzanian airlines amid row - Business Daily Africa
Kuwait
Jazeera Airways announced H1 2020 Earnings - Travel Trade Daily
Latin America
Colombia announces $370 mn loan to pandemic-hit airline Avianca - Tico Times
Malaysia
Malaysia Airlines halts flights to Brisbane, Adelaide, Perth - Executive Traveller
Mexico
Aeromexico analyzes firing a thousand flight attendants from its workforce - Explica
Namibia
Air Namibia Extends Suspension Of Flights
The national airline, Air Namibia has extended the suspension of domestic flight operations following the extension of stage 3 restrictions last week.
The airline in a statement on Monday said the extension will remain until local travel will be allowed.
Additionally, the suspension of regional and international flights has been extended until further notice, depending on market demand and reopening of international borders of countries where the airline operates, the airline added.
“As an active stakeholder in the tourism industry, Air Namibia will continue to participate in the Tourism Revival Initiative,” they said.
Meanwhile, although scheduled regional and international flight operations will resume later, Air Namibia as an essential service provider remains available to offer charter flights worldwide.
“We have taken practical measures aligned to national Covid-19 measures, to ensure maximum safety and protection for our passengers, employees and other stakeholders,” said Air Namibia’s Interim CEO Theo Mberirua.
Source: https://economist.com.na
Nigeria:
Nigeria Bars Some Long Haul and Regional Carriers as Airspace Reopens - Bloomberg
A’Ibom Will Become Aviation Hub In West Africa, Gov Emmanuel Vows
Governor Udom Emmanuel of Akwa Ibom State has promised to transform the state into an aviation hub in the West African subregion.
He made the vow while announcing the arrival of the lastest Bombardier CRJ900 recently acquired by the state owned airline – Ibom Air.
He further disclosed that contracts have been mobilized to commence the Maintenance Repair and Overhaul, MRO, facility and other upgrade works at the Victor Attah International Airport to attain this status before he leaves office.
He assured that the new terminal is designed to meet the highest intelligence, smart standard and will match any of the internationally ranked terminals when completed.
The new Bombardier CRJ900, with registration number 5N-BXO is the fifth aircraft to the fleet of the Akwa Ibom State-owned airline, Ibom Air.
The State Governor expressed delight for the addition and thanked God that while others are battling with the doomsday occasioned by the economic impact of the COVID-19 pandemic, Akwa Ibom people are celebrating expansion in their aviation business.
“On behalf of the government and people of Akwa Ibom State, including those in the diaspora, we appreciate God and everyone who has contributed in making this possible and we look toward to many more.
“We welcome the latest in our fleet, registration number 5N-BXO, CoVID-19 compliant”, the Governor said.
He commended the management and staff of Ibom Air for their commitment and show of professionalism, as he announced the assumption of duty of Ibom Air’s first female pilot, Captain Ruth Adebanwo, as pilot of the new aircraft.
“I want to most sincerely register my appreciation to the management team of Ibom Air. They’ve actually made us proud. I really want to thank them for their commitment and the professionalism they have displayed to make Ibom Air an airline to beat. It is an airline to beat anytime, anywhere”, Governor Emmanuel assured.
He described the accolades already trailing the qualitative customer service in the state-owned airlines as expected, stating that Ibom Air has already surpassed the customer satisfaction benchmark and now building customer enthusiasm as a stock in trade.
“When I came into office as Governor, I inherited just one private aircraft, but I thank God I will not leave office with anything less than eight to nine more aircrafts, so that people can see progress and I’m sure the person that will come after me will not leave office with less than twenty five aircrafts”, Governor Emmanuel said.
Earlier in his remarks, the Chairman, Ibom Airport Development Company Limited, Air Commodore Idongesit Nkanga rtd., commended Governor Udom Emmanuel for developing the aviation sector in the state, adding that the governor has delivered on his promises to the people as captured in the completion agenda.
He said “…we still have MRO, we still have the cargo coming up, and we have the Ibom International Terminal we have so many things coming up at this airport how else you could define progress, how else could you define governance more than what we are witnessing. Today we are going to unveil the 5th in the series of our aircraft”.
Nkanga stated that the Governor who is committed in his developmental drive will increase the number of fleets in the airline, noting that “Calabar route has commenced while Ibom Air will be airborne from Enugu International Airport from 14th September”, he said.
Source: https://leadership.ng/
FAAN Workers Protest Nigerian Government's Plan To Concession Airports
He said the present Managing Director of FAAN, Rabiu Hamisu Yadudu, was purposely and strategically appointed for the easy sale of the organisation.
Employees of the Federal Airport Authority of Nigeria on Monday protested moves by the Nigerian Government to concession major airports in the country.
The protest was held by members of the National Union of Air Transport Employees, Association of Nigeria Aviation Professionals and Air Transport Service Senior Staff Association.
hmed Danjuma, Chairman, ATSSAN, while addressing members during the protest at Freedom Square, Murtala Muhammed Airport, Ikeja, Lagos, kicked against government's directive to return all staff that retired from April 1, 2014 to PenCom.
Danjuma said the concession plan will force many staff into retrenchment while the future of those retired may not be assured.
He said the present Managing Director of FAAN, Rabiu Hamisu Yadudu, was purposely and strategically appointed for the easy sale of the organisation.
The union leader accused the Minister of Aviation, Hadi Sirika, of threatening to repress protesting workers with security machinery of the state.
He said, “It is also noteworthy that Hadi Sirika in a meeting with aviation union threatened to attack protesters with police and that protest will not last more than three months at the most.”
He further said Sirika had vowed that nothing will stop him from concessioning the four major airports including the Muritala Muhammad International Airport, Lagos, Abuja airport, Mallam Aminu Kano International Airport, Kano, and Port Harcourt International Airport.
Source: http://saharareporters.com/
Oman
Oman Air announces readiness to deal with resumption of flights - Times of Oman
Russian Federation
Aeroflot works on resumption of Egypt, Maldives and UAE services - Headline Only
Aeroflot Resumes Flights To Dubai From September 11 - Urdu Point
Aeroflot plummets to second-quarter loss as air traffic tumbles - Irish Times
Rwanda
RwandAir moves to reap from Tanzania, Nairobi aviation tiff - Business Daily Africa
Singapore
Ground handling firm dnata retrenches Singapore employees due to COVID-19 disruption - Channel News Asia
Somalia
Qatar Airways to resume Mogadishu flights
Qatar Airways will resume flights to Mogadishu on Sunday, a month after the Somali government lifted restrictions on international air travel following the easing of Covid-19 restrictions.
In a statement on Friday, the airline said it will fly three times a week between the Somalia capital and its hub in Doha from September 6.
The resumption of flights on the route will see the global carrier operate 40 weekly flights to the continent across nine destinations including Addis Ababa, Dar es Salaam, Djibouti, Kigali, Kilimanjaro, Nairobi, Tunis and Zanzibar.
The airline will also increase Doha-Djibouti flights to six weekly on Sunday.
Qatar Airways group chief executive Akbar Al Baker said by mid-September, the airline expects to operate 650 weekly flights to more than 85 destinations worldwide and will offer more flexible booking options.
“The recovery of international travel will take time but returning to over 50 per cent of our pre-Covid-19 network is a significant milestone.
“By continuing to fly during the pandemic while others stopped, we have gained the trust of passengers as an airline they can rely on...and as entry restrictions ease and we resume more of our pre-Covid-19 network, we remain focused on our fundamental mission of carrying passengers across the globe safely and reliably," he said.
The global carrier has been running its operations to select destinations on special passes that allow repatriates to fly home.
The special pass operations has seen them run about 100 charter flights that ferried about one million people to various destinations across the world.
Changes Apart from Mogadishu, the airline will also resume flights to Kathmandu in Nepal, and Philadelphia in the US on September 5 and 16 respectively.
The airline that resumed 14 weekly flights to Nairobi on August 7.
“We are proud to be the leading global airline connecting passengers with the world, operating one of the youngest, most fuel-efficient and sustainable fleets to take people safely to where they need to be,” Mr Al Baker said.
The carrier has also extended its booking policies to allow passengers to change the date of their travel as well as the destination within 5,000 miles of the original destination without incurring additional costs for travel completed before December 31, this year. “All tickets booked for travel up to 31 December 2020 will be valid for two years from the date of issuance,” the airline said.
By: Bonface Otieno
Source: Business Daily Africa
South Africa
Ethiopian Airlines in rescue talks with South African Airways - CEO - Reuters
Taiwan
Direct Taipei-Prague flight services likely: officials - Taipai Times
Tanzania
KLM, Qatar and Ethiopian Airlines to Add More Flights to Tanzania
Three major international airlines (KLM, Qatar and Ethiopian airlines) are set to increase the number of flight frequency to Tanzania three months after the country opened its airspace to passenger flights.
Ethiopian Airlines which was the first to resume flights to the Julius Nyerere International Airport is set to increases flights from four landings weekly to 14.
According to the Kilimanjaro Airports Development Company (Kadco) official, Catherine Mwakatobe, KLM has increased flights from one to four whereas Qatar Airways on the other hand has increased scheduled flights from three to 12.
As part of the continued resumption Rwandair will now have three flights landing at Kilimanjaro International Airport three times a week.
Turkish Airlines which used to operate several flights from Istanbul to KIA before the outbreak of Covid-19 pandemic is yet to resume.
"These airlines have sent a strong message to the world that is worth noting that Tanzania is free from the killer coronavirus," said Catherine Mwakatobe.
Yesterday, Ethiopian Airlines' Dream-liner aircraft landed at the Kilimanjaro International Airport (KIA) where the crew and passengers were received by some government officials including the Kilimanjaro Regional Commissioner Anna Mghwira.
Tanzania was the first East African country to open its airspace following the reduction in the number of coronavirus cases, Kenya on the other hand opened its skies on August 1.
Latest reports show that Uganda is scheduled to open its borders and Entebbe International Airport on October 1, the facility has been closed since March when the country recorded its first Covid-19 case.
Source: The Citizen/All Africa
The Maldives
British Airways to resume London Heathrow-Male service in Oct-2020 - Headline Only
United Arab Emirates
Emirates airline gets US$2 billion injection from Dubai government - NewsHub
Uganda
Uganda Airlines flies 75,000 passengers in first year - The Observer
dre aviation would like to take this opportunity and congratulate the management and staff of Uganda Airlines on their 1 year anniversary. The carrier was launched successfully and was performing very well before the Covid19 impact on the industry. From what we have seen, the management are making all of the right moves to ensure that the carrier will emerge from the Covid19 turbulence a much stronger player in the East African market.
We wish all at Uganda Airlines the very best for the future.
United Kingdom
Ryanair boosts balance sheet with €400m share placement - Arab News
IAG's new boss to take helm as airline industry reels from the biggest crisis in its history - This is Money
UK’s Stobart Group confirms talks to sell Dublin-based Aer Lingus Regional operator - Independant
Virgin Atlantic: Airline to cut 1,150 more jobs as it completes £1.2bn bailout - Sky News
Qatar Cargo moves into Menzies Aviation base at Heathrow - Air Cargo News
United States
American Airlines chops 83,000 flights from its October schedule - Inquirer
Struggling airline industry leads US job cuts in August - Al Jazeera
Vietnam
Vietjet kicks off self-handling ground operations - Vietnam Plus
Vietnam reopens flight paths to cities in Asia - The Star
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