Author: Admin

12 January 2022                No: 02

Geneva – The International Air Transport Association (IATA) announced that the recovery in air travel continued in November 2021, prior to the emergence of Omicron. International demand sustained its steady upward trend as more markets reopened. Domestic traffic, however, weakened, largely owing to strengthened travel restrictions in China.

Because comparisons between 2021 and 2020 monthly results are distorted by the extraordinary impact of COVID-19, unless otherwise noted all comparisons are to November 2019, which followed a normal demand pattern.

•             Total demand for air travel in November 2021 (measured in revenue passenger-kilometers or RPKs) was down 47.0% compared to November 2019. This marked an uptick compared to October’s 48.9% contraction from October 2019. 

•             Domestic air travel deteriorated slightly in November after two consecutive monthly improvements. Domestic RPKs fell by 24.9% versus 2019 compared with a 21.3% decline in October. Primarily this was driven by China, where traffic fell 50.9% compared to 2019, after several cities introduced stricter travel restrictions to contain (pre-Omicron) COVID outbreaks.

•             International passenger demand in November was 60.5% below November 2019, bettering the 64.8% decline recorded in October.

“The recovery in air traffic continued in November. Unfortunately, governments over-reacted to the emergence of the Omicron variant at the close of the month and resorted to the tried-and-failed methods of border closures, excessive testing of travelers and quarantine to slow the spread. Not surprisingly, international ticket sales made in December and early January fell sharply compared to 2019, suggesting a more difficult first quarter than had been expected. If the experience of the last 22 months has shown anything, it is that there is little to no correlation between the introduction of travel restrictions and preventing transmission of the virus across borders. And these measures place a heavy burden on lives and livelihoods. If experience is the best teacher, let us hope that governments pay more attention as we begin the New Year, ” said Willie Walsh, IATA’s Director General.

November 2021(% chg vs the same month in 2019)          World share1     RPK        ASK        PLF (%-pt)2         PLF (level)3

Total Market      100.0%  -47.0%  -39.7%  -9.7%     71.3%

Africa    2.0%      -55.1%  -48.4%  -9.2%     61.6%

Asia Pacific          38.5%    -69.8%  -58.9%  -21.7%  59.7%

Europe 23.8%    -39.4%  -32.7%  -8.3%     75.2%

Latin America     5.6%      -27.5%  -27.4%  -0.1%     82.2%

Middle East        7.4%      -52.6%  -43.6%  -11.6%  61.6%

North America  22.7%    -18.8%  -15.4%  -3.3%     78.6%

1% of industry RPKs   2Change in load factor vs 2019 3Load Factor Level

 International Passenger Markets

•             European carriers’ November international traffic declined 43.7% versus November 2019, much improved compared to the 49.4%% decrease in October versus the same month in 2019. Capacity dropped 36.3% and load factor fell 9.7 percentage points to 74.3%.

•             Asia-Pacific airlines saw their November international traffic fall 89.5% compared to November 2019, slightly improved from the 92.0% drop registered in October 2021 versus October 2019. Capacity dropped 80.0% and the load factor was down 37.8 percentage points to 42.2%, the lowest among regions.

•             Middle Eastern airlines had a 54.4% demand drop in November compared to November 2019, well up compared to the 60.9% decrease in October, versus the same month in 2019. Capacity declined 45.5%, and load factor slipped 11.9 percentage points to 61.3%.

•             North American carriers experienced a 44.8% traffic drop in November versus the 2019 period, significantly improved over the 56.7% decline in October compared to October 2019. Capacity dropped 35.6%, and load factor fell 11.6 percentage points to 69.6%.

•             Latin American airlines saw a 47.2% drop in November traffic, compared to the same month in 2019, a marked upturn over the 54.6% decline in October compared to October 2019. November capacity fell 46.6% and load factor dropped 0.9 percentage points to 81.3%, which was the highest load factor among the regions for the 14th consecutive month.

•             African airlines’ traffic fell 56.8% in November versus two years’ ago, improved over the 59.8% decline in October compared to October 2019. November capacity was down 49.6% and load factor declined 10.1 percentage points to 60.3%.

Domestic Passenger Markets

November 2021 (% chg vs the same month in 2019)         World share1     RPK        ASK        PLF (%-pt)2         PLF (level)3

Domestic             54.2%    -24.9%  -18.3%  -6.6%     75.6%

Australia              0.8%      -71.6%  -57.4%  -27.9%  55.6%

Brazil     1.6%      -8.5%     -8.1%     -0.4%     82.3%

China P.R.            19.8%    -50.9%  -33.2%  -22.1%  61.1%

India      2.1%      -17.1%  -7.1%     -9.6%     80.2%

Japan    1.4%      -37.5%  -23.6%  -14.3%  64.5%

Russian Fed.       3.4%      17.5%    12.6%    3.5%      83.5%

US          16.6%    -6.0%     -5.1%     -0.8%     81.4%

1% of industry RPKs   2Change in load factor vs 2019 3Load Factor Level

•             Australia remained at the bottom of the domestic RPK chart for the fifth consecutive month with RPKs 71.6% below 2019, albeit this was improved from a 78.5% decline in October, owing to the reopening of some internal borders.

•             US domestic traffic was down just 6.0% compared November 2019 – improved from an 11.1% fall in October, thanks in part to strong Thanksgiving holiday traffic.

View the full November Air Passenger Market Analysis

By Alfred Chua, Flight Global

China Airlines has disclosed record cargo revenues for 2021, as it doubles down on what it calls a “cargo-centric business model”.

For the full year, the Taiwanese carrier says cargo revenue surpassed NT$100bn ($3.6bn), the highest in its 62 years of operations.

China Airlines also stated that freighter revenue in December hit a single-month high of more than NT$15.4bn.

While it has yet to disclose its full-year earnings, the uptick in cargo takings is expected to help offset a collapse in passenger travel revenue amid the pandemic, and provide a lift to the carrier’s profitability.

China Airlines’ cargo unit operates a fleet of 21 dedicated freighters, comprising 18 Boeing 747-400Fs, as well as three 777 freighters.

The SkyTeam carrier mounted around 540 cargo flights a month, averaging around 120 flights weekly.

It added: “The integration of passenger and freighter capacity along with continued optimisation of schedules and connections meant that over a hundred passenger and freighter charter flights were dispatched in a given month.”

China Airlines, along with compatriot EVA Air, swung back to profitability in the third quarter of 2021, amid a steady rise in revenue. In previous quarters, both carriers have pointed to a strong cargo performance as a key factor in boosting their earnings.

“China Airlines will continue to focus on its cargo operations, closely monitor developments in the passenger market, and carefully review its passenger market strategy, as it works to maximise its operational profits,” the carrier said.

31 / 12 / 2021

By Damian Brett

Cathay Pacific Cargo B747F

Cathay Pacific has suspended all long-haul freighter and cargo-only passenger flights to and from Hong Kong until January 6.

The Hong Kong carrier said the move was in response to recently announced more stringent quarantine requirements for Hong Kong-based cargo crews.

The suspension applies to all long-haul cargo flights covering the transpacific, Europe, South West Pacific, Riyadh, and Dubai.

“We sincerely apologise for the disruption caused. We will be working with customers to mitigate the disruption as much as possible,” the airline’s cargo division stated.

“In addition, we are working with the relevant stakeholders on plans beyond 6 January and will communicate further on these as soon as possible.”

On December 28, the carrier had warned that the new crew restrictions could affect operations through the first quarter.

“Operational and travel restrictions that remain in place continue to constrain our ability to operate flights as planned,” the carrier said.

“We are consolidating our cargo flight schedule for the first quarter of 2022. There will be reductions to long-haul freighter and cargo-only passenger flight capacity.

“We regret that contracted tonnage will be impacted during this time. Our local sales teams will communicate specific details with affected customers directly.”

The BBC reports that some passenger flights have also been affected by the changes.

The move comes as Hong Kong battles the Omicron variant of the Covid-19 virus.

By Damian Brett

Air cargo rates are set to remain at an elevated level. Source: Bollore Logistics

The Omicron variant is set to keep air cargo capacity tight and as a result air cargo rates will remain at an elevated level.

In the latest Baltic Exchange market update, investment bank Stifel senior analyst Bruce Chan said that the new variant will restrict network capacity due to safety protocols, episodic infection and national response.

He added: “This and other new variants are likely going to delay a return to pre-pandemic international business travel (or international travel in general), which means that the complete return of belly capacity on those core lanes will also get pushed out.”

Chan said that there was also at least some risk that belly capacity may never fully recover if there is a permanent switch to hybrid in-person/virtual business.

“With renewed lockdowns in some countries and geographies, and with continued and not unreasonable public concern about viral spread, we believe the eventual transition of discretionary dollar spend away from goods and back to services may be elongated as well,” he said.

“These factors should support persistently elevated airfreight rates, in our view, and any shippers that were looking for relief in the seasonal first quarter freight lull may not find it – at least to the extent that they expect.”

Last week, IATA’s director general Willie Walsh also warned that a knee-jerk reaction to the Omicron variant from governments could have an impact on cargo capacity if restrictions dampen passenger demand.

Walsh said that after almost two years of Covid-19, governments have the experience and tools to make better data-driven decisions than the “mostly knee-jerk reactions to restrict travel that we have seen to date”.

“Restrictions will not stop the spread of Omicron,” he said. “Along with urgently reversing these policy mistakes, the focus of governments should be squarely on ensuring the integrity of supply chains and increasing the distribution of vaccines.”

The warnings come as airfreight rates continued to increase last week.

The latest figures from the Baltic Exchange Airfreight Index (BAI) show that prices from Hong Kong to North America reached a new index record of $12.41 per kg, compared with $6.77 per kg in the same week last year and $3.66 per kg in 2019.

There was also a new index record on services from Hong Kong to Europe, which reached $8.46 per kg compared with $5.61 per kg in the same week last year and $3.27 per kg in 2019.

Tommy Patrio Sorongan, CNBC Indonesia

Jakarta, CNBC Indonesia – Kelangkaan kontainer yang berimbas pada rantai pasokan global sepertinya akan semakin jadi. Pasalnya, negara eksportir terbesar dunia, China, hingga hari ini masih memberlakukan kebijakan karantina Covid-19 yang sangat ketat.

Mengutip laporan Bloomberg yang dimuat Strait Times, China baru saja memberlakukan aturan baru karantina wajib selama tujuh minggu untuk pelaut China yang kembali. Selain itu, negeri pimpinan Presiden Xi Jinping itu juga melarang perubahan awak untuk pelaut asing.

Hal ini menjadi keluhan pengusaha ekspedisi. Pasalnya itu sangat menyulitkan pergantian kru dan juga perjalanan kapal keluar masuk negara yang menyebabkan kontainer tertahan.

“Pembatasan China menyebabkan efek langsung,” kata Sekretaris Jenderal Kamar Perkapalan Internasional, Guy Platten, yang mewakili pemilik kapal dan operator.

“Setiap pembatasan operasi kapal memiliki dampak akumulatif pada rantai pasokan dan menyebabkan gangguan nyata.”

Krisis ini tak hanya dikeluhkan pengusaha ekspedisi namun juga berimbas kepada sektor lainnya. Hal ini dikarenakan keterlambatan dan juga penambahan biaya yang kebanyakan dibebankan kepada konsumen.

“Kami memiliki kapal yang mengalami demurrage (biaya keterlambatan) … kami memiliki contoh di mana kami harus menyimpang, baik sebelum kami menelepon China atau sesudahnya,” kata Ms Eman Abdalla, direktur operasi dan rantai pasokan global di Cargill.

“Ada beberapa kasus di mana penundaan terjadi dalam hitungan jam, tetapi ada juga kasus di mana penundaan bisa berlangsung hingga berhari-hari.”

Euronav, salah satu pemilik supertanker minyak terbesar di dunia, telah menghabiskan sekitar US$ 6 juta atau Rp 84 miliar untuk menangani gangguan terkait krisis pergantian awak. Termasuk untuk transit dan karantina serta tanggungan biaya perjalanan lainnya.

“Di masa lalu, cukup menyenangkan melakukan rotasi kru ketika kami berada di China,” kata CEO Euronav Hugo De Stoop. “Dan sekarang, pada dasarnya, itu tidak mungkin.”

Sebelumnya ‘kiamat’ kontainer terjadi karena distribusinya yang kurang merata. Pasalnya banyak negara yang mulai menggenjot produksinya namun di sisi lain ada juga beberapa negara yang belum bisa melakukan ekspor akibat langkah-langkah penguncian Covid-19.

Krisis ini kemudian diperparah dengan meningkatnya permintaan global. Terutama di negara-negara barat menjelang libur natal.

By Damian Brett

Source: Airbus

CMA CGM has become the second company to sign up for Airbus’ new A350 freighter as the French logistics group continues its expansion in the air cargo market.

The shipping giant, which launched its CMA CGM Air Cargo business earlier this year, has signed a memorandum of understanding covering the purchase of four of the type.

The commitment, which Airbus expects to be finalised in the “coming weeks”, comes days after Air Lease placed the first provisional order for seven of the type  during the Dubai air show.

CMA CGM said that it would also apply to launch an airline – its current four aircraft are operated by Air Belgium – and it has filed an application for an Air Operator Certificate (AOC) with the French Civil Aviation Authority.

The new aircraft, which will join the Group’s fleet in spring 2022 will be registered in France and will be based at Paris-Charles de Gaulle airport. 

“The creation of a French freight airline also requires the initial recruitment of around 50 pilots who will join the CMA CGM Group during the coming weeks, and the implementation of a structure dedicated to the Group’s airfreight operations,” the shipping group said.

In a press release, Airbus also detailed more of the freighter model’s capabilities.

The company said that more than 70% of the airframe is made of advanced materials resulting in a 30 tonne lighter take-off weight, generating an at least 20% lower fuel burn over its current closest competitor.

“With a 109 tonne payload capability (plus three tonnes/11% more volume than its competition), the A350F serves all cargo markets (Express, general cargo, special cargo…) and is in the large freighter category the only new generation freighter aircraft ready for the enhanced 2027 ICAO CO ₂ emissions standards.”

Earlier this month, Air Lease became the first company to sign up for the new freighter model.

CMA CGM already operates five A330-200Fs and in September announced plans to add a pair of Boeing 777 freighters.

Airbus chief commercial officer Christian Scherer says: ”We are proud to welcome CMA CGM Air Cargo in the group of operators for the A350F and we are equally pleased to support the company’s future strategic development.

 “Having an early endorsement by such an international cargo powerhouse as the CMA CGM Group is very gratifying.”

CMA CGM is not the only shipping line to be investing in the air cargo industry as they look to offer complete supply chain solutions.

Earlier this month, AP Moller Maersk announced that Star Air, its in-house aircraft operator, will purchase two new B777 Freighters to be delivered by Boeing in 2024 and leased three B767-300 Freighters which will be operational next year through Cargo Aircraft Management, the leasing arm of ATSG.

Prague – The International Air Transport Association (IATA) is focusing on standards, digitalization and addressing the skilled labor shortage to build resilience and ensure long-term sustainability post pandemic for ground handling activities.

“There will be challenges as ground handling operations ramp up to meet growing demand as the aviation industry’s recovery from COVID-19 progresses. Overcoming labor shortages, ensuring safety with strict adherence to global standards and digitalization and modernization will be critical to achieving a scalable restart,” said Monika Mejstrikova, IATA’s Director of Ground Operations, speaking at the 33rd IATA Ground Handling Conference (IGHC), which opened in Prague today.

Labor

Ground handling providers are facing severe skills shortages and challenges in retaining and recruiting staff.

“Many skilled employees have left the industry and are not coming back. And recruiting, training and accrediting new staff can take up to six months. So, it is critical that we retain current staff and find more efficient ways of onboarding new personnel,” said Mejstrikova, who also outlined a number of priority solutions.

•To retain skilled staff, governments should include ground handlers in wage subsidy programs

•To speed up training processes, the use of competency-based training, assessments and online training formats should be increased, and training requirements harmonized

•To increase the efficiency of staff utilization, a training passport should be developed that would mutually recognize skills across ground handlers, airlines and/or airports

Safety

Global standards are the foundation for safe operations. Two key tools for ground handlers are the IATA Ground Operations Manual (IGOM) and the IATA Safety Audit for Ground Operations (ISAGO).

IGOM:  IATA called for the ground handling industry to accelerate the global adoption of IGOM to ensure worldwide operational consistency and safety. To support this, IATA has launched the IGOM portal. A user-friendly online platform where airlines and ground handlers can share the results of their gap analysis between company procedures and IGOM, offering a global benchmark for harmonization and driving efficiency.

ISAGO:  IATA urged governments to recognize ISAGO in their regulatory frameworks for oversight. This will deliver significant benefits, including greater harmonization, Safety Management System (SMS) implementation by the ground handlers, and reduction of duplicate audits that providers are facing.

“The aim is for global adoption of IGOM and ISAGO. The IATA online portal will give a boost to this effort,” said Mejstrikova.

Digitalization and Modernization

Digitalization can drive process improvements that will be critical to improving both sustainability and productivity. A key driver of digitalization/modernization is the CEDAR initiative (Connected Ecological Digital Autonomous Ramp) which focuses on:

•             Digitalization of aircraft turn around

•             Modernization of ground support equipment and processes

•             Enhanced stand design

“Harnessing data to improve safety and efficiency is crucial for the ground handling industry. CEDAR is the blueprint to address this. The overall aim is to be able to make data-based operational decisions that will cut costs, improve performance and contribute to the industry’s net zero commitment,” said Mejstrikova.

By Damian Brett

Cargo sheds across Europe and North America are struggling to keep up with this year’s peak season demand, causing delays for the pick up and drop off of cargo.

In Europe, handlers at major cargo hubs Frankfurt Main, London Heathrow and Amsterdam Schiphol are all feeling the strain.

Air Cargo News reported at the end of last month that there was congestion at Europe’s busiest cargo hub Frankfurt and the issue has yet to ease.

New import rules requiring each individual house air waybill to be pre-registered and high demand are the main reasons behind the congestion at the German hub.

In October cargo volumes at Frankfurt were up by more than 11% compared with pre-covid (2019) levels for the month.

German forwarder Senator International said: “The ground handling situation remains critical. The changed process handling in the import customs procedure continues to cause noticeable delays. For all shipments via FRA, this factor should definitely be factored in.”

Another forwarder, Flexport, added: “No notable improvement at FRA for import cargo. Building in extra lead time into FRA or using other German hubs is important.”

UK Freight forwarder Metro Shipping reported particular issues at Heathrow, Frankfurt, Brussels, Liege and Amsterdam, although it said problems were widespread.

As well as strong air cargo demand, issues in ocean shipping were causing modal shift and adding to demand levels, the forwarder added.

“London Heathrow is facing significant delays, as the cargo area is unable to cope and waiting times for vehicle collections and deliveries can be anything from five to ten hours, with the ever-present risk that the driver will ultimately be turned away,” the company said.

“We are experiencing drivers running out of their legal hours of driving and having to replace with new shift drivers before they have even collected or delivered their air freight cargo whilst sitting statically outside the airline warehouses at the airports.”

Making the situation even tougher for handlers is the constantly shifting airline schedules that make it hard to pre-plan resource.

“Overall the market is not as good as it should be, with issues all over the place at the major US, European and Asian hubs and the likelihood is it will get worse, particularly when the handlers are short-staffed in many facilities, due to COVID operating restrictions and the ability to ensure that resource can be deployed for the surge in demand,” Metro said.

On the situation at Schiphol, Flexport said: “AMS ground handling terminals are feeling the strain, mainly for export cargo. Handlers are recruiting additional personnel, opening additional warehouses where there is capacity.

“Additional entries and exits to terminals are being added with the aim to free up space for more trucks to pick up or drop off cargo.”

The company also outlined the issues being faced in North America: “LAX/ORD/JFK ground handlers continue to face backlogs and are using off-airport facilities to manage the flood of inbound cargo, which has a trickle-down effect on the export side.

“Many have shortened their free time for storage, and have implemented new, earlier close outs for exports to accommodate longer throughput times and screening requirements.”

15 November 2021

Geneva – The International Air Transport Association (IATA) announced the results of its 2021 Global Passenger Survey (GPS), which delivered two main conclusions:

•             Passengers want to use biometric identification if it expedites travel processes.

•             Passengers want to spend less time queuing. 

“Passengers have spoken and want technology to work harder, so they spend less time ‘being processed’ or standing in queues. And they are willing to use biometric data if it delivers this result. Before traffic ramps-up, we have a window of opportunity to ensure a smooth return to travel post pandemic and deliver long-term efficiency improvements for passengers, airlines, airports and governments,” said Nick Careen, IATA’s Senior Vice President for Operations, Safety and Security.

Biometric Identification

•             73% of passengers are willing to share their biometric data to improve airport processes (up from 46% in 2019).

•             88% will share immigration information prior to departure for expedited processing.

Just over a third of passengers (36%) have experienced the use of biometric data when traveling. Of these, 86% were satisfied with the experience.

Data protection remains a key issue with 56% indicating concern about data breaches. And passengers want clarity on who their data is being shared with (52%) and how it is used/processed (51%).

Queuing

•             55% of passengers identified queuing at boarding as a top area for improvement.

•             41% of passengers identified queuing at security screening as a top priority for improvement.

•             38% of passenger identified queuing time at border control / immigration as a top area for improvement.  

With additional document checks for COVID-19, processing time at airports is taking longer. Pre-COVID-19, the average passengers spent 1.5 hours in travel processes (check-in, security, border control, customs, and baggage claim). Current data indicates that airport processing times have ballooned to 3 hours during peak time with travel volumes at only about 30% of pre-COVID-19 levels. The greatest increases are at check-in and border control (emigration and immigration) where travel health credentials are being checked mainly as paper documents.

This exceeds the time that passengers want to spend on processes at the airport. The survey found that:

•             85% of passengers want to spend less than 45 mins on processes at the airport if they are traveling with only hand luggage.

•             90% of passengers want to spend less than one hour on processes at the airport when traveling with a checked bag.

Solutions

IATA, working with industry stakeholders, has two mature programs which can support a successful ramping-up of aviation post-pandemic and provide travelers with the expedited experience they are demanding.

•             IATA Travel Pass is a solution to manage the complex myriad of travel health credentials that governments require.  The app offers a safe and secure way for travelers to check the requirements for their journey, receive test results and scan their vaccine certificates, verify that these meet the destination and transit requirements and share these effortlessly with health officials and airlines prior to departure and using e-gates. This will reduce queuing and congestion for document checks—to the benefit of travelers, airlines, airports and governments.

•             One ID is an initiative that is helping transition industry towards a day when passengers can move from curb to gate using a single biometric travel token such as a face, fingerprint or iris scan. Airlines are strongly behind the initiative. The priority now is ensuring there is regulation in place to support the vision of a paperless travel experience. One ID will not only make processes more efficient for passengers, but also allow governments to utilize valuable resources more effectively.

“We cannot just revert to how things were in 2019 and expect our customers to be satisfied. Pre-pandemic we were preparing to take self-service to the next level with One ID. The crisis makes its twin-promises of efficiency and cost-savings even more urgent. And we absolutely need technologies like IATA Travel Pass to re-enable self-service or the recovery will be overwhelmed by paper document checks. The GPS results are yet another proof point that change is needed,” said Careen.

10 / 11 / 2021

By Damian Brett

AirBridgeCargo Airlines (ABC) has obtained approval from the Civil Aviation Administration of China (CAAC) for commercial transportation of lithium batteries over 35 kgs.

The company said it had become the first airline to receive SP A99 approval in China, which comes after two years of preliminary works, testing, and collaboration with stakeholders.

The first commercial shipment of 113 kg was launched on October 20 from Shanghai Pudong Airport to Frankfurt.

Tom Ouyang, ABC regional special cargo manager – Asia & Pacific, said: “This is an important event for the LB industry in China and we are honoured to be the first airline to get CAAC approval.

“The export of the first SP A99 lithium battery shipment is a remarkable milestone in the air logistics industry in China.

“Our appreciation to the great efforts done by the authorities, the customer, and our teams, for making it happen. With the successful experience, we are encouraged to support more and more customers on the transportation of this special cargo in future.”

The airline said that the use – and size – of lithium batteries was on the rise.

“With China being the home for major lithium batteries’ manufacturers, there have been disruptions in effective logistics and most customers tended for seafreight.

“The CAAC approval will enable ABC to leverage the growing demand for transportation of SP A99, offering logistic solutions to its existing customers and gaining new ones.”