Aviation
Traffic volumes improve
But costs rising:
The International Air Transport Association (IATA) announced the
international scheduled traffic results for August. Compared to August
2008, passenger demand was down 1.1 percent, (an improvement compared to
the 2.9 percent decline in July), and freight demand fell by 9.6 percent
(also an improvement compared to the 11.3 percent drop in July).
Compared to August 2008, passenger load factors improved by 1.2
percentage points to 80.9 percent. Despite the tighter supply and demand
conditions average fares continue to be depressed (-22 percent for
premium seats and -18 percent for economy).
To match capacity with demand, airlines have reduced daily aircraft
utilization in recent months. For example, average daily hours for the
global Boeing 777 fleet dropped by 2.7 percent to 11.1 hours per day
through the first eight months of the year. Lower utilization helps load
factors, but spreading fixed asset costs over fewer hours in the air
pushes up unit costs.
"Demand continues to improve, but profitability remains ever
distant," said IATA's Director General and CEO Giovanni Bisignani.
"Fares have stabilized, but at profitless levels. Meanwhile, cost
pressures are mounting from reduced aircraft utilization and rising oil
prices. The industry is not out of the woods yet," said Bisignani.
International passenger demand:
Compared to the low point of March 2009, seasonally adjusted
passenger demand has improved by 6 percent, but traffic levels remain 5
percent below May 2008 when the fall in demand began. All regions,
except the Middle East, saw improved demand conditions in August
compared to July:
Asia-Pacific carriers recorded the most significant improvement
moving from a -7.6 percent drop in July to -1.6 percent in August.
European and North American carriers saw smaller improvements driven by
exposure to more robust long-haul markets, rather than local economies.
European carriers saw demand fall 2.8 percent compared to August 2008
(up from the -3.1 percent recorded for July). For North American
carriers, the improvement was to -2.5 percent in August compared to -3.2
percent in July. Middle Eastern carriers were the only region to show
year-on-year growth with demand expanding by 10.8 percent.
This is below the 13.2 percent recorded in July due to a distortion
resulting from the earlier start of Ramadan compared with last year.
Middle East carriers continue to win market share on long-haul travel
via their expanding hubs. Latin American carriers saw demand improve to
-2.3 percent in August (from -3.5 percent in July).
Passenger confidence, dampened by Influenza A(H1N1) is returning with
the end of flu season in the southern hemisphere. African carriers
showed the weakest demand at -4.9 percent in August. This was a slight
improvement on the -5.5 percent recorded in July. For 2010 IATA's latest
industry outlook anticipates average international passenger growth of
just over 4.0 percent, compared to an expected full-year decline in 2009
of almost 5.0 percent.
Freight Demand:
Compared to the low point of December 2008, seasonally adjusted
freight demand has improved by 12 percent, but remains exceptionally
weak at 16 percent below April 2008 levels when the fall in demand
began. All regions saw improved demand conditions in August compared to
July: Latin American and the Middle Eastern carriers were the only
regions to report growth of 3.9 percent and 3.0 percent.
Asia Pacific carriers , representing 44 percent of the global freight
market, saw year-on-year demand improve marginally from -9.5 percent to
-9.0 percent in August compared to July. North American carriers saw a
slightly larger improvement from -14.6 percent in July to -12.1 percent
in August.
This is similar to the -16.2 percent to -14.5 percent improvement
registered by European carriers. African carriers saw the largest
improvement - from -25.9 percent in July to -5.1 percent in August. The
region's small market size exaggerates any shifts. For 2010 IATA's
industry outlook anticipates average international freight growth of 5.5
percent, compared to an expected full-year decline in 2009002E
Singapore Airlines begins A380 service to Melbourne
The inaugural Singapore Airlines A380 service bound for Melbourne,
the capital city of the Australian state of Victoria, took off from
Singapore Changi Airport recently.
Singapore Airlines |
With 453 customers on board the 471-seat double-decker aircraft,
SQ227 departed Singapore at 2100hrs and arrived in Melbourne around
0545hrs 25 minutes ahead of schedule. The A380 will embark on its return
journey with over 450 customers on board, departing Melbourne at 1550hrs
and touching down in Singapore at 2140hrs.
Melbourne is the second Australian city and sixth city in Singapore
Airlines' network to receive the A380. Singapore Airlines currently
operates 21 weekly flights between Singapore and Melbourne, including
the daily A380 service.
"The A380 continues to be extremely popular with our customers, as we
see very positive booking response for our scheduled A380 services
between Singapore and Melbourne. Since the start of its operation in
October 2007, the A380 has carried more than 1.8 million customers on
more than 4,600 commercial flights.
Our A380 customers tremendously enjoy the quiet cabin ambience, our
innovative inflight products and gracious service delivered by our
cabin crew.
On routes with multiple daily frequencies operated with different
aircraft, many of our customers will specifically choose the service
that is operated by this clean and green superjumbo," said Singapore
Airlines' Executive Vice President, Marketing and the Regions Huang
Cheng Eng,.
The A380 features the exclusive Singapore Airlines Suites. A private
sanctuary in the sky, each Suite comes with sliding doors and adjustable
roller-blinds, and a luxurious leather seat upholstered by Italy's
Poltrona Frau.
Japan's first passenger jet lands big order
An ambitious project to build Japan's first ever passenger jet
received a huge boost Friday, landing a 100-plane order worth up to 40
billion dollars from a US regional airline.
The state-backed Mitsubishi Regional Jet (MRJ) is expected to take to
the skies in 2014, carrying Japan's hopes of developing a full-fledged
civil aviation industry with it.
Mitsubishi Heavy Industries, the company developing the 70-90 seat
airliner, announced that it had signed a letter of intent with US
carrier Trans States for 50 firm orders and the same number of options.
Mitsubishi declined to say how much the latest deal was worth, but
the catalogue price of each jet is 400 million dollars.
It is the second order for the MRJ, which aims to meet growing demand
for fuel-efficient planes.
The project officially got off the ground in 2008 after launch
customer All Nippon Airways agreed to buy up to 25 of the jets, the
first of which are scheduled to be delivered in early 2014.
But it quickly flew into turbulence as the global economic downturn
unleashed a severe slump in the aviation industry that forced many
carriers, including Japan Airlines, to slash jobs and routes to keep
flying. "This is a very proud moment for us," said Hideo Egawa,
president of Mitsubishi's aircraft division.
"The world has high expectations for the MRJ. This is especially true
in the US," where airlines operate jets of up to 90 seats on many
routes, Egawa said. The Mitsubishi jet project, which has financial
backing from Toyota Motor, is competing with small aircraft produced by
Canada's Bombardier and Brazil's Embraer, as well as jets designed by
Russian and Chinese firms.
"Making a decision of this size in this economic situation was
difficult, " said Richard Leach, president of Trans States Holdings.
"But when these aircraft come into the market it's at a time when
there's going to be a need in the US to replace aircraft.
"We want to be at the front of the line before there starts to be a
feeding frenzy on wanting this technology."
The group, based in Missouri, operates Trans States Airlines and
GoJet Airlines, and operates feeder services for United Airlines and US
Airways. It has been a customer advisor for Mitsubishi since the past
five years.
AFP |