Author: Admin

Geneva – The International Air Transport Association (IATA) released data for May 2023 global air cargo markets showing weak market conditions.

•             Global demand, measured in cargo tonne-kilometers (CTKs), fell 5.2% compared to May 2022 (-6.0% for international operations).

•             Capacity, as measured by available cargo tonne-kilometers (ACTKs), rose 14.5% compared to May 2022, primarily driven by belly capacity which increases as demand in the passenger business recovers. Capacity is now 5.9% above May 2019 (pre-pandemic) levels.

•             Key factors influencing demand include:

o             The global manufacturing Purchasing Managers Index (PMI) indicates an annual contraction of 1.4% in new export orders and a decrease of 5.2% year-on-year in production PMI. This suggests a cooling in global manufacturing demand.

Global goods trade decreased by 0.8% in April, due to macroeconomic challenges and supply chain constraints. Trading conditions appeared to favor maritime cargo as demand for container shipping contracted by 0.2% while air cargo demand weakened by 6.3% year-on-year.

o             The global supplier delivery time PMI increased to 54.5 in May, up from its low of 35 in October 2021, indicating shorter delivery times and some relief for supply chains. However, this is also a sign of weaker global goods trade demand.

“Trading conditions for air cargo continue to be challenging with a 5.2% fall in demand and several economic indicators pointing towards weakness. The second half of the year, however, should bring some improvements. As inflation moderates in many markets, it is widely expected that central bank rate hikes will taper. This should help stimulate economic activity with a positive impact on demand for air cargo,” said Willie Walsh, IATA’s Director General.

May (% year-on-year)   World share1     CTK        ACTK     CLF (%-pt)2         CLF (level)3

Total Market      100.0%  -5.2%     14.5%    -8.6%     41.5%

Africa    2.0%      -2.4%     9.2%      -5.3%     44.8%

Asia Pacific          32.4%    -3.3%     38.3%    -18.2%  42.2%

Europe 21.8%    -6.7%     5.6%      -6.4%     48.9%

Latin America     2.7%      3.6%      14.7%    -3.6%     33.3%

Middle East        13.0%    -3.1%     15.6%    -7.9%     41.0%

North America  28.1%    -8.1%     1.2%      -3.8%     37.3%

1 % of industry CTKs in 2022  2 Change in load factor  3 Load factor level

May Regional Performance

•             Asia-Pacific airlines saw their air cargo volumes decrease by 3.3% in May 2023 compared to the same month in 2022. This was a decrease in performance compared to April (-0.3%), mainly due to the stronger annual contraction in international air cargo demand from -3.5% in April to -6.4% this month. Available capacity in the region increased by 38.3% compared to May 2022 as more belly capacity came online from the passenger side of the business.

•             North American carriers saw the weakest performance of all regions for the third consecutive month with an 8.1% decrease in cargo volumes in May 2023 compared to the same month in 2022. This was a slight improvement in performance compared to April (-12.4%).  Notably, airlines in the region saw the third month of double-digit contractions in volumes on the North America-Europe trade lane (-10.3%). Capacity increased 1.2% compared to May 2022.

•             European carriers experienced a 6.7% decrease in cargo volumes in May 2023, compared to the same month in 2022. This was an improvement in performance compared to April (-7.7%), in part due to the smaller annual contraction in international CTKs on the Europe-Middle East trade lane, from -4.7% in April to -2.9% in May. The decline in international cargo traffic on markets within-Europe also improved from -16.2% in April to -7.8% this month (seasonally adjusted). Meanwhile, capacity increased 5.6% in May 2023 compared to May 2022. 

•             Middle Eastern carriers experienced a 3.1% year-on-year decrease in cargo volumes in May 2023. This was a slight improvement in performance compared to the previous month (-6.7%). Capacity increased 15.6% compared to May 2022.

•             Latin American carriers had the only positive performance in May 2023 posting a 3.6% increase in cargo volumes compared to May 2022. This was an improvement in performance compared to April (-1.6%). Capacity in May was up 14.7% compared to the same month in 2022. 

•             African airlines posted a 2.4% decrease in demand compared to May 2022. This was a decline in performance compared to the previous month (-0.9%). Notably, the growth on the Africa to Asia trade route slowed significantly in May from 18.5% in April to 11.0%, possibly due to the impact of the conflict in Sudan since mid-April. Capacity in May was up 9.2% compared to the same month in 2022. 

Geneva – The International Air Transport Association (IATA) welcomed the Hong Kong Special Administrative Region (SAR) government’s efforts to ease the city’s labor crunch in the aviation sector. This comes as IATA upgraded passenger traffic projections for Hong Kong that now see a recovery to pre-crisis levels by the end of 2024. This revision brings Hong Kong’s recovery in line with expectations for a faster recovery in the Asia-Pacific region.

“The situation is looking bright for Hong Kong. China’s earlier than expected reopening is providing a much-needed boost to the passenger recovery. By the end of 2024, we expect to see Hong Kong’s traffic return to pre-crisis levels. And it is encouraging to see the Hong Kong government preparing for this with measures to ensure that the workers needed to support the recovery are available,” said Willie Walsh, IATA’s Director General.

The Hong Kong government introduced a labor importation scheme to ramp-up the airport workforce by 6,300 workers from the Mainland of China. While demand for air travel has been strong, airlines in Hong Kong have been struggling with supply chain issues and a labor shortage.

“The last three years have been devastating for the aviation sector. As we look ahead to the recovery and prepare for future growth, it is important that the entire Hong Kong aviation community, including airlines, airport, regulator, and government, work together to address the challenges and are well prepared to tap on future opportunities. I look forward to being in Hong Kong in August to meet with various partners and engage in fruitful discussions,” said Walsh.

IATA and the Airport Authority Hong Kong (AAHK) are partnering to organize the Hong Kong Aviation Day from 2-3 August 2023.

Geneva – The International Air Transport Association (IATA) will launch the IATA World Sustainability Symposium (WSS) in Madrid, Spain on 3-4 October. With governments now aligned with the industry’s commitment to decarbonize aviation by 2050, this symposium will facilitate critical discussions, in seven key areas:

•             The overall strategy to achieve net zero emissions by 2050, including Sustainable Aviation Fuels (SAF)

•             The crucial role of government and policy support

•             Effective implementation of sustainability measures

•             Financing the energy transition

•             Measuring, tracking and reporting emissions

•             Addressing non-CO2 emissions

•             The significance of value chains

“In 2021 airlines committed to net zero emissions by 2050. Last year governments made the same commitment through the International Civil Aviation Organization. Now the WSS will bring together the global community of sustainability experts in the industry and governments to debate and discuss the key enablers for aviation’s successful decarbonization, our biggest challenge ever,” said Willie Walsh, IATA’s Director General who is confirmed to speak at WSS.

The WSS will provide a platform specifically tailored for airline sustainability professionals, regulators and policy makers, as well as stakeholders in the industry’s value chain.

Speakers will include

•             Patrick Healy, Chair, Cathay Pacific

•             Roberto Alvo, CEO, LATAM Airlines Group

•             Robert Miller, Professor of Aerothermal Technology and Director of the Whittle Laboratory at the University of Cambridge

•             Suzanne Kearns, Founding Director, Waterloo Institute for Sustainable Aviation (WISA)

•             Andre Zollinger, Policy Manager, Abdul Latif Jameel Poverty Action Lab (J-PAL), Massachusetts Institute of Technology MIT

•             Marie Owens Thomsen, Senior Vice President Sustainability and Chief Economist, IATA

Addis Ababa – The International Air Transport Association (IATA) is launching the Collaborative Aviation Safety Improvement Program (CASIP) to reduce the accident and serious incident rate across Africa as part of the Focus Africa initiative.

Launch partners in the program are:

•             The International Civil Aviation Organization (ICAO)

•             The African Civil Aviation Commission (AFCAC)

•             The US Federal Aviation Administration (FAA)

•             Boeing

•             The Airlines Association of Southern Africa (AASA)

Together, the CASIP partners will prioritize the most pressing safety concerns on the continent and rally the resources needed to address them. The benefits of improving aviation safety in Africa will be spread across the economies and societies of the continent.

“Improving aviation safety will play an important role in Africa’s overall development. Safe, efficient and reliable air connectivity is a major driving contribution to the UN’s Sustainable Development Goals. In that sense, CASIP will make it clear to governments across the continent that aviation must be prioritized as an integral part of national development strategies. With such broad benefits at stake, we hope that other parties will be encouraged to join the CASIP effort,” said Willie Walsh, IATA’s Director General.

The starting point for safety improvement is the effective use of global standards for safety. At government level, a key indicator is effective implementation of ICAO Standards and Recommended Practices (SARPS). Data for the year 2022 reveals considerable room for improvement with only 28 of 54 African states reaching an effective implementation rate for ICAO SARPS of 60% or higher.

In parallel, the CASIP partners will

•             Identify deficiencies in operational safety and implement corrective action plans

•             Provide safety training and workshops continent wide

•             Promote a data-driven approach to safety performance with emphasis on making safety data available to decision-makers and ensuring efficient accident/incident reporting

“Improving safety performance is a priority for Africa. And we don’t need to reinvent the wheel to deliver the needed results. Collaborative safety teams in Latin America have demonstrated that safety improves when government and industry work together to implement global standards. By working together, the partners will pool resources to have a greater impact on areas where risk can be reduced, leading to measurable improvements in safety,” said Walsh.

June 5, 2023 by Payload Asia

SIA Engineering Company Limited (SIAEC) and Cambodia Airport Investment Co., Ltd (CAIC) have signed a joint venture agreement on 30 May to form a line maintenance joint venture in Cambodia.

Under the agreement, SIAEC will hold a 51 percent stake in the joint venture with CAIC holding 49 percent. The joint venture will establish line maintenance services at the future Techo International Airport (TIA) in Phnom Penh.

TIA (Phase 1) is a greenfield airport being developed at southern Phnom Penh about 19 kilometres from Phnom Penh City Centre, with a total investment budget of US$1.5 billion.

The future airport, which will be developed in three phases, is designed for 50 million passengers, with three runways and a satellite terminal across a total land area of 2,600 hectares. In line with the opening of TIA, the joint venture will commence operations in March 2025.

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Istanbul – The International Air Transport Association’s (IATA) “Focus Africa” drive is gaining momentum, spurred on by the African Civil Aviation Commission (AFCAC) and the Airlines Association of Southern Africa (AASA) as its newest partners.

Focus Africa will strengthen aviation’s contribution to Africa’s economic and social development and improve connectivity, safety and reliability for passengers and shippers. It will see private and public stakeholders deliver measurable progress in six critical areas: safety, infrastructure, connectivity, finance and distribution, sustainability and skills development.

“Focus Africa is all about establishing a coalition of partners committing to pool their resources and delivering a set of African air transport solutions that let the continent, its people and economies play a greater, more meaningful and representative role in the global economy.  The combined contributions of AFCAC and AASA will be critical to Focus Africa’s success. Africa accounts for 18% of the global population but less than 3% of global GDP and just 2.1% of air passenger and cargo transport activity. With the right interventions those gaps will be closed, and Africa will benefit from the connectivity, jobs and growth that aviation enables,” said Willie Walsh, IATA’s Director General.

“The ability to access, serve and develop intra-African markets is crucial as the continent’s populace is set to increase by over a billion people by 2050. For this to be sustainable, economic opportunities must be created. As other regions have demonstrated, air transport connectivity unlocks broad prosperity. As the African Union’s civil aviation agency, we will support Focus Africa through our work developing a set of harmonized rules and regulations designed to make this connectivity a reality and drive our strategic objectives,” said AFCAC Secretary-General, Adefunke Adeyemi.

“Time is not on our side as AASA’s members and the communities they serve face rising costs, unprecedented unemployment, obsolete constraints on trade and market access, inadequate infrastructure and a looming skills shortage. These demand urgent action, so we do not get stranded on the runway. It is why we have no hesitation standing with IATA and other Focus Africa partners,” added AASA CEO, Aaron Munetsi.

Leaders and decision-makers from airlines, airports, air navigation services, government agencies, aircraft manufacturers, industry suppliers and other stakeholders will convene at the IATA Focus Africa Conference, hosted by Ethiopian Airlines, in Addis Ababa on 20-21 June, to address the six priority task areas in detail.

 06 June 2023

Istanbul – The International Air Transport Association (IATA) announced that ANA and WestJet have joined its Turbulence Aware Platform on the sidelines of the 79th IATA Annual General Meeting.

Turbulence Aware was launched in 2018 to help airlines mitigate the impact of turbulence which is a leading cause of passenger and crew injuries and higher fuel costs each year. The platform pools anonymized turbulence data from thousands of flights operated by participating airlines. The real-time, accurate information enables pilots and dispatchers to choose optimal flight paths, avoiding turbulence and flying at optimum levels to maximize fuel efficiency and thereby reduce CO2 carbon emissions.

The challenge of managing turbulence is expected to grow as climate change continues to impact weather patterns. This has implications for both safety and efficiency of flight. Turbulence Aware is a significant improvement in turbulence reporting and avoiding excess fuel consumption.

“Accurate and timely data empowers crews to improve safety by avoiding turbulence. The more contributors we have, the more everyone benefits. The addition of ANA and WestJet enhances our coverage especially in Asia Pacific and North America,” said Walsh.

At present, 20 airlines participate in the IATA Turbulence Aware Platform with more than 1,900 aircraft providing data daily. In 2022, a total of 31 million reports were generated.

•             ANA will initially start providing data from its Boeing 737 aircraft with plans to expand to the rest of the fleet in the future.

•             WestJet is already capturing data from 24 aircraft and will expand this to 60 aircraft in the coming three years.

To gather additional feedback from airlines and engage with OEMs and other solution providers, IATA is organizing a Turbulence Aware User Forum, taking place at the WestJet Campus in Calgary, Canada on June 19-20, 2023.

Istanbul – The International Air Transport Association (IATA) called on governments to live up to longstanding international treaty obligations to publish timely and thorough aviation accident reports. Safety is aviation’s highest priority. Failure to publish prompt and complete accident investigation reports deprives operators, equipment manufacturers, regulators, infrastructure providers and other concerned stakeholders of critical information that could make flying even safer.

“The accident investigation process is one of our most important learning tools when building global safety standards. But to learn from an accident, we need reports that are complete, accessible and timely,” said Willie Walsh, IATA’s Director General.

The requirements of the Convention of International Civil Aviation (Chicago Convention) Annex 13 are clear. States in charge of an accident investigation must:

•             Submit a preliminary report to the International Civil Aviation Organization (ICAO) within 30 days of the accident.

•             Publish the final report, that is publicly available, as soon as possible and within 12 months of the accident.

•             Publish interim statements annually should a final report not be possible within 12 months.

Only 96 of the 214 accident investigations during the period 2018-2022 conform with the requirements of the Chicago Convention. Just 31 reports were published in less than one year of the accident with the majority (58) taking between 1–3 years. In addition to the fact that final reports regularly take more than a year, interim statements often provide little more than what was presented in the preliminary report.

“Over the past five years, fewer than half of the required accident reports meet the standards for thoroughness and timeliness. This is an inexcusable violation of requirements stated clearly in the Chicago Convention. As an industry we must raise our voice to governments in defense of the accident investigation process enshrined in Annex 13. And we count on ICAO to remind states that the publication of a complete accident report is not optional, it is an obligation under Annex 13 of the Chicago Convention,” said Walsh.

Istanbul – The International Air Transport Association (IATA) announced that Emirates will host the 80th IATA Annual General Meeting (AGM) and World Air Transport Summit in Dubai, United Arab Emirates, on 2-4 June 2024.

“We look forward to gathering the aviation industry in Dubai for the 80th IATA AGM in 2024. Dubai is a dynamic city and a major aviation hub connecting the world. The UAE’s positive approach to aviation has built a strong airline with a strong hub airport. Together, these make an enormously powerful and positive contribution to the society and economy of the UAE. Holding the AGM in Dubai will be a showcase of what can be achieved by aviation with supportive government policies and decisions,” said Willie Walsh, IATA’s Director General.

“Emirates is delighted to host the 80th IATA AGM and World Air Transport Summit. We look forward to welcoming all our aviation industry colleagues to Dubai in 2024,” said Sir Tim Clark, President Emirates Airline.

The decision to host the 80th IATA AGM was made by the 79th AGM in Istanbul.

This will be the first time the UAE and Dubai will host the global gathering of aviation’s top leaders.

Istanbul – The International Air Transport Association (IATA) called for consumer protection regulation to address the responsibility shared by all stakeholders when passengers experience disruptions and released survey data showing most passengers trust airlines to treat them fairly in cases of delays and cancellations.

Whenever there is a delay or a cancellation, where specific passenger rights regulations exist, the burden of care and compensation falls on the airline, regardless of which part of the aviation chain is at fault. IATA therefore urged governments to ensure that responsibility for flight issues is shared more equitably across the air transport system.

“The aim of any passenger rights regulation surely should be to drive better service. So it makes little sense that airlines are singled out to pay compensation for delays and cancellations that have a broad range of root causes, including air traffic control failures, strikes by non-airline workers, and inefficient infrastructure. With more governments introducing or strengthening passenger rights regulations, the situation is no longer sustainable for airlines. And it has little benefit for passengers because it does not encourage all parts of the aviation system to maximize customer service. On top of this, as costs need to be recouped from passengers, they end up funding this system. We urgently need to move to a model of ‘shared accountability’ where all actors in the value chain face the same incentives to drive on-time performance,” said Willie Walsh, IATA’s Director General.

Economic deregulation of the airline industry has brought huge benefits over decades, increasing consumer choice, reducing fares, expanding route networks and encouraging new entrants. Unfortunately, a trend of re-regulation threatens to undo some of these advances. In the area of consumer protection, more than a hundred jurisdictions have developed unique consumer regulations, with at least a dozen more governments looking to join the group or toughen what they already have.

EU 261 needs to be reviewed

The Commission’s own data show that delays have increased since the existing EU 261 Regulation was introduced, even as the cost to airlines—and ultimately passengers—continues to balloon. It has become subject to more than 70 interpretations by the European Court of Justice, each of which serves to take the regulation further than originally envisaged by the authorities. The European Commission, along with the Council and Parliament, needs to revive the Revision of EU261 that was on the table before it was blocked by Member States. Any future discussions should address the proportionality of compensation and the lack of specific responsibilities for key stakeholders, such as airports or air navigation service providers.

Such a review is even more necessary when the EU Regulation is in danger of becoming a global template, with other countries, including Canada, the United States, and Australia, as well as some in Latin America and the Middle East, seeming to consider it a model, without recognizing that EU261 was never intended to address operational disruption and therefore does not apply equally to all actors in the aviation chain.

“In refusing to address the issue of distributing accountability more evenly across the system, EU261 has entrenched the service failings of some actors who have no inducement to improve. A classic example is the more than 20-year lack of progress toward the Single European Sky, which would significantly reduce delays and airspace inefficiency across Europe,” said Walsh.

An opportunity for the United Kingdom

With sensible reform of EU 261 stalled, the United Kingdom has an opportunity to incorporate some of the proposed revisions into the country’s post-Brexit model for passenger rights. Proper reform of ‘UK 261’ provides a gilt-edged opportunity for a genuine ‘Brexit dividend’ which the present pro-Brexit government should not ignore.

Canada is losing its reputation for good regulation

The situation in Canada is particularly disappointing because it has benefitted from a well-balanced regulatory regime up to now. An example is the explicit recognition of the primacy of safety, meaning that safety-related problems are not subject to compensation. Unfortunately, Canadian policymakers seem inclined to remove this important exception. Canada has also announced a “guilty until proven innocent” approach to airlines when there are delays or cancellations. These moves appear to be driven by internal Canadian party politics. Moreover, the government’s regulatory zeal appears to evaporate when it comes to holding government-run entities such as Border Services (CBSA) or Transport Security (CATSA) accountable for their performance.

One potential bright spot is that the National Airlines Council of Canada has put forward a model for shared accountabilities across the aviation value chain, including increased transparency, data reporting and service quality standards, an approach that could well have merit beyond Canada.

The United States—a solution in search of a problem

The US Department of Transportation is proposing to mandate compensation for delayed or cancelled flights when their own Cancellation and Delay Scoreboard shows that the 10 largest US carriers already offer meals or cash vouchers to customers during extended delays, and nine also offer complimentary hotel accommodation for passengers affected by an overnight cancellation. Effectively, the market is already delivering, while at the same time allowing airlines the freedom to compete, innovate and differentiate themselves in terms of their service offerings.

“It’s easy for a politician to regulate a new passenger rights law, it makes them look like they’ve achieved something. But every new unnecessary regulation is an anchor on the cost-efficiency and competitiveness of air transport. It takes a brave regulator to look at the situation and recognize when ‘less is more’. The history of this industry proves that less economic regulation unlocks greater choice and benefits for passengers,” said Walsh.

Passengers don’t agree there is an issue

There is little evidence passengers, outside of a few rare instances, are clamouring for stronger regulation in this area. An IATA/Motif survey of 4,700 travelers across 11 markets asked passengers how they were treated in the case of delays and cancellations. The survey found:

•             96% of travelers surveyed reported they were ‘very’ or ‘somewhat’ satisfied with their overall flight experience

•             73% were confident they would be treated fairly in the event of operational disruptions

•             72% said that in general airlines do a good job of handling delays and cancellations

•             91% agreed with the statement ‘All parties involved in the delay or cancellation (airlines, airports, air traffic control) should play a role in helping the affected passengers’

“The best guarantor of good customer service is consumer choice and competition. Travelers can and do vote with their feet if an airline—or indeed the entire aviation industry—doesn’t come up to scratch. Politicians should trust the public’s instinct and not regulate away the distinctive business models and choices available to travelers today,” said Walsh.