Airport Authority Hong Kong (AAHK) received (01-Jun-2022) an inaugural rating of 74 out of 100 for Hong Kong International Airport's environmental, social and governance (ESG) performance from Standard & Poor's (S&P), becoming the first airport worldwide to have its ESG rating globally publicised by S&P. The rating reflects AAHK's "good capabilities to address its moderate yet growing environmental and social exposure, and focus on maintaining its capacity to navigate potential disruptions". [more - original PR]
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While only a handful of Asia-Pacific airlines have gone out of business due to COVID-19, there have been some significant consolidation moves via mergers – with more potentially on the horizon.
As the COVID-19 crisis bloomed, many airlines in this region came under severe financial strain. But few actually collapsed, as governments and investors proved willing to prop up struggling airlines that might have otherwise disappeared.
Mergers are likely to be more effective in reducing the number of players in some markets. However, capacity reduction is often minimised when an airline’s operations are absorbed by another airline. And in some cases, consolidation has presented opportunities for new start-ups to emerge.
Consolidation can take a number of forms. It can involve two unrelated or rival airlines, such as Korean Air and Asiana Airlines. It can also occur within airline groups, such as the Cathay Pacific and Singapore Airlines groups. The latter example allows the parent companies to streamline their operations, which will help set them up for the post-pandemic recovery phase.
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China now has 248 working airports – new arrivals in 2022 led by Chengdu’s Tianfu InternationalAirport construction continued in China throughout a pandemic which itself continues there, and by the end of 2022 there were almost 250 operational commercial airports throughout the country.
However, at the vast majority of airports passenger numbers fell further from 2020 levels and those airports recorded financial losses.
Ten new airports opened during the year. The most significant is at Chengdu, the country’s fifth most populous city, and with an airport – Shuangliu – which was already one of the country’s busiest.
The new Tianfu airport could quickly overtake Shuangliu but it isn’t clear how differing business models will be distributed in a city that is earmarked as a ‘central hub’ for the entire country.
Questions are being asked as to how the government can continue to fund expenditure on new airports while it experiences a sharp contraction in revenue, with an infrastructure funding gap of almost USD1 trillion currently – much the same size as the US economic rescue package.
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Berlin Airport makes heavy losses, may need more state aid; what price privatisation now?02-Jun-2022
Berlin Airport makes heavy losses, may need more state aid; what price privatisation now?
Berlin Airport has a history that it must wish could be cancelled and deleted from the records.
Opening a decade late and right in the middle of the COVID-19 pandemic, it had to mothball large parts of its infrastructure from Day 1.
Now finally seeing passengers return in decent numbers, it is still struggling financially and dependent on loans and state aid.
The question is: is this the right time to consider privatisation? It began life as (an abandoned) private sector project and voices are still heard championing that possibility.
Against it is lack of investor sentiment for the sector; but for it is the presence of a new CEO, for whom airport privatisation is in the DNA.
This regular CAPA report provides a summary of recent aviation sustainability and environment news. This latest issue features:
Southwest Airlines invests in SAFFiRE Renewables for SAF project
Iberia and Repsol complete first long haul flight using biofuel produced from waste in Spain
Embraer to acquire all electricity in Brazil from renewable sources from 2024
ZeroAvia and MHIRJ to provide hydrogen-electric retrofits for regional jets
SITA emphasises need to mitigate impacts of climate change
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Turkish aviation shrugs off COVID-19 and a currency crisisTurkey's currency seems to have been in decline for ever. The Turkish lira (TRY) has lost 89% of its value against the US dollar (USD) over the past 10 years and halved over the past year. However, Turkish aviation continues to fly in the face of its fall in fortune.
Both Turkish Airlines and Pegasus Airlines have significant revenue and costs in hard currencies. Moreover, the weaker TRY makes Turkey a more competitive tourist destination and inbound bookings to the country have doubled since Jan-2022.
Turkey's weekly seat capacity is now at 97% of 2019 seat capacity levels, which is well above the Europe average of 88% in the week of 30-May-2022. Turkish Airlines and Pegasus Airlines are both above 100% of 2019 capacity.
Although currency decline and inflation have dampened the domestic recovery in recent weeks, Turkey's large internal market has increased Turkish aviation's resilience in the COVID-19 crisis.
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Ben Simmons, Vice President and Regional Head – Europe & Africa at IBS Software, the SaaS solutions provider to the travel industry, spoke to CAPA TV about latest industry trends and the growing digital transformation of airlines, airports and travel. The executive spoke about how airlines have adopted advanced digital transformation strategies during the Covid pandemic as businesses adjusted to changing customer behaviours and shared some insights on the role technology will play in the future.
CAPA Events are hosted in key markets around the world and attract the highest calibre of thought leaders and decision makers in the aviation and travel industry. Delegates are provided with unprecedented access to the latest data, insights and trends from our global team, in addition to valuable networking opportunities with executives across all sectors of the aviation and travel industry. Review CAPA’s full events calendar here.
Lufthansa Group announced (01-Jun-2022) it expects its first Boeing 787-9 (D-ABPA) to be delivered to Lufthansa in summer 2022, following certification by the US FAA. Following delivery, the aircraft will undergo cabin refurbishment at Lufthansa's maintenance centre in Frankfurt. It will initially be deployed on domestic routes for training purposes, with the first intercontinental destination scheduled to be Toronto. The group has ordered 32 787 aircraft, scheduled for delivery between 2022 and 2027. [more - original PR]
New York's Governor Kathy Hochul announced (01-Jun-2022) Delta Air Lines plans to open its new USD4 billion Terminal C at New York LaGuardia Airport on 04-Jun-2022. The project marks the completion of the airport's USD8 billion modernisation, with features including 1.3 million sqft of space, hands-free bag drop and digital ID screening technology, floor-to-ceiling windows, 80% more concessions space, an expedited curbside check in building and a consolidated security area with 11 lanes. The project benefited from a USD500 million Port Authority of New York and New Jersey investment for new roadways and supporting infrastructure. [more - original PR]
Canadian Travel and Tourism Roundtable (CTTR) urged (01-Jun-2022) Canada's Government to implement the following actions before 15-Jun-2022, to provide border relief and alleviate pressures facing travellers at Canadian airports:
- Remove vaccination mandates for Canadian Air Transport Security Authority and Canada Border Services Agency workers;
- Remove the Public Health Agency of Canada's duplicate health checks and questions through ArriveCan at government checkpoints;
- Relocate or remove onsite mandatory random testing from Canada's airports;
- Establish clear service standard benchmarks for security and customs processing of passengers travelling through Canadian airports.
Canadian Airports Council (CAC) interim president Monette Pasher stated: "Canada's four hub airports are currently processing on average 56,000 international passengers a day [and] this is forecasted to grow by 50% per day this summer. It's challenging to manage that level of traffic, with the left over legacy public health protocols still in place at our international borders... Normal travel volumes cannot co-exist with current public health protocols in place within our airport facilities". [more - original PR]
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2-Jun-2022 1:02 PM
US FAA acting administrator calls for collaboration to advance SAF commercialisation
US FAA acting administrator Billy Nolen called (01-Jun-2022) upon attendees of the Sustainable Aviation Fuels Summit to collaborate to achieve the following:
- Address the gap between jet fuel prices and the cost of sustainable fuels;
- Ensure emissions benefits of sustainable aviation fuels (SAF) are calculated with scientific rigour and credited transparently;
- Reduce financial risks to pave the way for greater investment into production infrastructure;
- Ensure the right regulatory and incentive policies are put in place.
Mr Nolen stated: "There's no doubt that today's volatility in oil prices and the uncertainty in oil markets reinforce our need for greater SAF production… SAF provides economic benefits to regions across the country, creating jobs across the supply chain and in underserved and rural areas. By working together, we can realize this value proposition. The federal government is taking many actions toward this goal". [more - original PR]
Southwest Airlines announced (01-Jun-2022) an investment into SAFFiRE Renewables, as part of a project backed by the US Department of Energy (DoE) to develop and produce scalable sustainable aviation fuel (SAF). The project will be funded by a DoE grant matched by Southwest Airlines, allowing SAFFiRE to convert corn stover into renewable ethanol, which would then be upgraded into SAF. If phase one of the project is successful, DoE and Southwest Airlines would have the opportunity to fund a second phase investment for the design, fabrication, installation and operation of a pilot plant producing renewable ethanol. Southwest Airlines CEO Bob Jordan stated: "This is a unique opportunity to invest in what we believe could be game-changing technology that could facilitate the replacement of up to approximately five percent of our jet fuel with SAF by 2030, with the potential to significantly continue to scale beyond the decade". SAFFiRE CEO Mark Yancey stated: "If we are successful in developing and commercializing this technology, we project the technology can produce 7.5 billion gallons per year of SAF by 2040". [more - original PR]
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