Dubai airport visualize traffic growth

Dubai Airports announced its January traffic results for Dubai International today reporting a 10 per cent increase in year-on-year passenger numbers and a 3.9 per cent rise in international freight volumes.January passenger numbers topped 4.25 million, an increase of 10 per cent compared to 3.87 million recorded during the same month in 2010 as the airport crossed the four million passenger mark for the fifth time in seven months.

Aircraft movements for the month totalled 27, 385 up 7.3 per cent from 25,522 recorded during the same period last year. The largest increases in total passenger numbers in January were recorded on routes to and from GCC (+96,462 passengers), the Indian subcontinent (+60,757 passengers), Western Europe (+56,879) and Asia (+34,018 passengers).

In terms of percentage growth, Eastern Europe again topped the list of strong growing regions up 230 per cent year-on-year, albeit from a low base. Traffic volumes to/from North America rose 24.9 per cent in January primarily due to the increase of Emirates airline frequencies to Houston and Los Angeles from one to two flights daily each.

Russia and CIS passenger traffic was up 23.3 per cent thanks largely to flydubai’s ongoing expansion into that region, which spurred traffic growth to Yerevan, Yekaterinburg and Samara. Dubai International handled 178,199 tonnes of international air freight in January, up 3.9 per cent from the 171,453 tonnes recorded during the same period in 2010.

Passengers are lined up in queue at the Immigration section of Dubai International Airport terminal 2 for passport and security check.
January’s cargo figures reflect the anticipated moderation in air cargo growth compared to robust double-digit increases recorded by the industry last year following the dramatic global air freight traffic declines caused by the economic crisis in 2009. “We have enjoyed an auspicious start to 2011,” said Paul Griffiths, CEO of Dubai Airports.

“Passenger traffic growth is continuing at an impressive rate. January’s numbers are in line with our projections for an 11 per cent increase during 2011 to a total of 52.2 million passengers.

In fact the latest rankings from Airports Council International show that Dubai International is now the fourth business airport in the world for international passenger traffic.

Service levels are also on the rise as Dubai International recently claimed the Best Airport and Best Improvement awards for the Middle East at ACI’s Airport Service Quality Awards for 2010. Our goal is to continue to match industry leading growth with top flight service.

ADAC releases tender for Abu Dhabi Airport Midfield Terminal Building

Abu Dhabi Airports Company (ADAC) has announced the release of the General Contractor Tender for the Midfield Terminal Building (MTB), moving into the next phase of delivering Abu Dhabi International Airport with its iconic new terminal that will cater to the airport's dynamic passenger growth and support the Plan Abu Dhabi 2030.

The design and engineering of the building has been carried out with the utmost due-diligence. Following a rigorous peer review with 6 world-leading airports, and a consultation with all involved stakeholders, ADAC finalised the design of the MTB to ensure that the utility of the building delivers the required state-of-the-art and top-quality facility in an efficient and financially viable framework.

These reviews resulted in a complete design, as well as a detailed and comprehensive tender package that provides for the timely and efficient execution of the project. Following the award of the tender by the end of the year, the dates of the construction completion and the operational commencement will be announced.

ADAC issued yesterday the tender to a list of pre-qualified firms for the construction of the 700,000 square metre main terminal building, which will have an initial capacity of 27-30 million passengers per year. The building will be one of the world’s largest and most architecturally iconic structures.

In parallel to the tender for the MTB, Abu Dhabi Airports Company has been executing since 2010 a capacity enhancement program (CEP) which will allow Abu Dhabi International Airport to handle an additional 7 million passengers. Furthermore, ADAC is currently in the last stages of the Terminal 1 refurbishment, further upgrading the world-class airport services offered to its passengers.

His Excellency Khalifa Al Mazrouei, Chairman of Abu Dhabi Airports Company (ADAC) said: “Abu Dhabi Airports Company is pleased to announce the release of the MTB tender which is a key milestone in the development of Abu Dhabi’s International airport and a significant component in delivering Plan Abu Dhabi 2030. We are investing to ensure our growing customer base experiences the highest level of service available, in a distinctive facility that has been designed and is being constructed in a sustainable and environmentally conscious manner.”

Currently, the piling works for the MTB have been completed, with a total of 7,425 piles, and the grading works for the East Midfield are underway which will house the various support facilities for the new Midfield Terminal Building.

IATA issues gloomy forecast for global aviation

Airlines can expect to generate profits of $8.6 billion in 2011 according to the International Air Transport Association (IATA), significantly less than originally forecast.

As late as December IATA – which represents some 230 airlines – was arguing carriers around the world would make $9.1 billion in profits.

However, global instability, particularly in the MENA region, has pushed up oil prices, with profits likely to fall as a result.

British Airways was the latest airline to introduce a fuel surcharge to cover rising costs, alongside tour operator Thomas Cook.

On expected industry revenues of $594 billion, the $8.6 billion 2011 profit equates to a net profit margin of just 1.4 per cent.

This is a 46 per cent fall in net profits compared to the $16 billion (revised from $15.1 billion) earned by the industry in 2010.

“Political unrest in the Middle East has sent oil over $100 per barrel,” explained Giovanni Bisignani, IATA’s director general.

“That is significantly higher than the $84 per barrel that was the assumption in December.

“At the same time the global economy is now forecast to grow by 3.1 per cent this year — a full 0.5 percentage point better than predicted just three months ago.

Airlines can expect to make $8.6bn in profit in 2011

Economies

Growing economies give airlines the opportunity to recover some of these added costs with additional revenues.

For example, since early 2009, rising oil prices added 25 per cent to unit costs while average fares (excluding surcharges) rose 20 per cent.

But in 2011 higher revenues are not expected to be sufficient to prevent the rise in oil prices from causing profits to shrink by 46 per cent from 2010 levels.

Air Passenger Duty

IATA also highlighted the risk of increasing taxation, particularly in price sensitive leisure markets.

In 2010, the industry saw new and increased taxes in the range of three-to-five per cent of ticket prices in the UK, Germany and Austria.

Recently, Iceland, India and South Africa have joined with plans for additional taxation.

“This is a price sensitive business. Aviation has the power to stimulate economies,” added Bisignani.

“But that ability is being compromised by adding taxes at a time when we are struggling to cope with high fuel prices just to maintain anemic margins.”

End of the Affair; JAL decommissions Boeing 747s

Japan Airlines International (JAL) has confirmed it will decommission its last two remaining Boeing 747 jumbojets, ending over 40 years of affinity with the aircraft.

Two Boeing 747s were greeted by crowds as they arrived at Narita airport late yesterday, with staff on board wearing uniforms from a bygone era.

Flight 75 had returned from Honolulu and Flight 3098 flew back from Naha in Okinawa Prefecture, as JAL became just the latest carrier to move toward newer, more fuel efficient, planes.

JAL rival ANA, for example, is set to become the launch customer of the Boeing Dreamliner when it takes to the skies later this year.

Boeing will not let the 747 depart quietly, however, with a new model – branded the 747-8 International – launched earlier this year.

In a three-class configuration, the newest 747 can seat about 470 passengers—as many as some variants of the current 777.

It is smaller than the double-decker Airbus A380, which can seat 525 or as many as 850 depending on the configuration.Jumbojet

JAL was an early customer of the 747, receiving its aircraft in 1970.

Over the next 40 years, the airline would own and operate 112 of the planes, with approximately 80 of the jumbojets in service at the peak between 1994 and 2001.

However, JAL accelerated its plans to retire its inefficient 747s in January 2010, after the carrier entered bankruptcy protection.

The 747 had been the mainstay of the JAL long-haul fleet for newly two decades – covering largely trans-Pacific and trans-Atlantic flights – until it was eclipsed by the 777 in the late 1990s.

Only two US carriers - United Airlines and Delta Air Lines - still fly the 747 on regular commercial service, but it is still in wide use globally.

Iberia

JAL has also confirmed a codeshare with Iberia – a fellow oneworld member – as it seeks to boost its position in Europe.

The airline will now offer codeshare on flights operated by Iberia between Madrid and two destinations in Europe - London and Frankfurt.

Up until October last year, JAL offered customers a connection from Tokyo (Narita) to Madrid via Amsterdam, by placing the JL flight code on Iberia flights between Amsterdam and Madrid.

The codeshare arrangement was however suspended when JAL terminated its non-stop service to Amsterdam in October.

Thomas Cook to add fuel surcharge

Unrest in the Middle East and North Africa has seen oil prices rocket in recent weeks, with Thomas Cook the latest to feel the heat.

With Brent Crude oil presently trading at approximately $115 a barrel – up from under $100 at the start of February – the tour operator has added a fuel surcharge of £15 to short-haul flights, £25 to medium haul and £40 to long-haul departures.

All brands – including Thomas Cook, Airtours and Club 18-30 – will be hit by the rise in prices.

British Airways introduced a surcharge in February as political unrest in the oil producing Middle East saw speculators push prices higher.

However, this the first time Thomas Cook has introduced fuel surcharges for two years.

It is likely the charge will be maintained into the 2011-12 winter season.

All products are covered, including package trips and flight-only holidays, and the surcharge applies to holidays booked through the tour operator itself or through travel agencies.

Ian Ailles of Thomas Cook said: “We have worked hard to keep the impact of the rising fuel costs on our holidaymakers to a minimum but the fuel levy is an unavoidable result of the rising price of oil.”

Middle East Airlines joins SkyTeam

Middle East Airlines – Air Liban, the flag carrier of Lebanon, signs agreement to join SkyTeam in 2012. MEA will be the alliance’s second member from the Middle East, a strategic growth market for SkyTeam.

SkyTeam is actively working to strengthen its presence in the Middle East, one of the world’s most important and rapidly growing economic regions. The addition of MEA to the alliance network will enable SkyTeam to compete more efficiently, not only within the Middle East, but also to and from Western Africa. SkyTeam in return offers MEA a complementary global network. MEA customers will be able to connect to the world through traffic flows from the SkyTeam hubs in Europe, Africa, Asia and the Americas.

MEA has continued to improve its products and services to customers ever since it successfully concluded a thorough restructuring plan, intended to modernize and restructure the airline. Key elements of this plan included fleet renewal and rationalization, increasing the density of the carrier’s European, Middle East and West African network and improving product quality and consistency.

MEA Chairman - Director General Mohamad El-Hout stated: ”By joining SkyTeam, MEA being relatively a small airline, will now be able to provide its customers an extensive global network covering Europe, Asia, Africa and the Americas. MEA customers will benefit from SkyTeam members’ loyalty program as well as ST members lounges at all airports worldwide.”

Pierre-Henri Gourgeon, CEO of Air France-KLM declared: “We are extremely pleased that MEA will be joining SkyTeam, as it will strengthen the links already established with Air France over the past 12 years and will offer customers in the Middle East access to Air France, KLM and SkyTeam’s powerful global network.” SkyTeam Chairman Leo van Wijk said: “Today marks yet another confirmation of SkyTeam’s growing global family. The Middle East is a strategic market for our alliance as we continue to extend the SkyTeam network to all corners of the globe. The region has seen an impressive growth in traffic over the past decade and we want to engage actively in this expansion. I am convinced that MEA will develop into a significant and valuable player in Middle East aviation.”

SkyTeam Managing Director, Marie-Joseph Malé, illustrates the alliance’s continuing global expansion: “This year China Airlines and China Eastern with its daughter company Shanghai Airlines will effectively join us, according to plan. Garuda Indonesia, Aerolíneas Argentinas and Saudi Arabian Airlines have all confirmed their membership effective in 2012. We will continue to work on further expansion of our global network by looking for partners from India and Latin America.”

Check-in with Singapore Airlines check-out with Paypal

Singapore Airlines customers in the US, Singapore and five other Asia Pacific countries and territories1 can now pay for their flights with PayPal on singaporeair.com. This facility will progressively be made available to the Airline’s customers in up to 17 countries, making this the largest collaboration between PayPal and an Asian carrier to date.
After booking Singapore Airlines flights online, travellers can now pay for tickets using their PayPal account in as few as three clicks and without the need to retype their credit card or financial details.

A year-long global marketing campaign will be launched to celebrate the collaboration between Singapore Airlines and PayPal. The first marketing promotion allows travellers in the initial launch markets who pay for their Singapore Airlines flight with PayPal the chance to win back the price of their flight (up to S$2,000). One lucky winner will be selected daily from 7 March 2011 to 6 April 2011. For more details of this marketing promotion, please visit www.paypal.com/sg/sia.

“In our continuous search for more payment options for our customers, we are very happy to be able to add PayPal to our offerings. With PayPal, our customers will be able to benefit from another secure payment option and enjoy a hassle-free express checkout experience,” said Mr Tan Chik Quee, Singapore Airlines’ Senior Vice-President Marketing.

Mr Tan continued: “Matching the global nature of our business, PayPal’s online payment platform with over 94 million active users in 190 markets and 24 currencies will enable us to reach out to more travellers on all six continents in our network.”

“We’re so excited to add Singapore Airlines, one of the most admired carriers in the world, to our growing stable of airlines in the region that are leveraging on our global e-commerce platform to expand their reach to travellers worldwide,” said Mr Farhad Irani, Vice-President and General Manager of PayPal Asia Pacific. Mr Irani commented further: “Our two global companies share the same goal for faster and safer ways to pay for tickets online, thus our collaboration is another manifestation of delivering choice, convenience and value to consumers across Asia Pacific and the world.”

Besides using their online balance, PayPal users can pay for their Singapore Airlines flights from their bank accounts, credit cards or debit cards that are linked to their PayPal account2. In addition, PayPal never shares its users’ financial information, thereby increasing the security of the online transaction and protecting the privacy of its users.

flydubai enjoys first date with Dhaka

flydubai Dubai’s first low cost airline, has doubled its flights between the UAE and Bangladesh with the start of a new service to the country’s capital, Dhaka.

Flight FZ583 from Dubai touched down on schedule at Shahjalal International Airport at 2015hrs on Monday, where a welcoming committee of government and industry officials received a delegation of senior flydubai executives.

flybe entered Bangladesh in January with a four-times-a-week service to the port city of Chittagong.

The inauguration of flights to Dhaka, flydubai’s 32nd destination, doubles this tally, further strengthening trade and tourism ties between the UAE and an important emerging economy in South Asia.

flydubai CEO Ghaith Al Ghaith said: “The industry and entrepreneurship of the Bangladeshi people have contributed to the growth and success of the UAE in recent years, and it is gratifying to see ties between our two countries grow even closer. Our new service to Dhaka will build on the success of our popular service to Chittagong and open up more promising business opportunities for both countries.”

More than half a million Bangladeshi expatriates live and work in the UAE and send nearly US$2 billion each year in remittances to their home country.

Signifying the ever closer relationship between the two countries, Prime Minister Shaikh Hasina was a keynote speaker at the World Future Energy Summit in Abu Dhabi last month.

The prime minister signed two strategic trade accords with the UAE and was accompanied by a 30-member delegation from the Bangladesh Chamber of Commerce and Industry, the first time a trade delegation of this size from Bangladesh has visited the country.

HE Ghulam Muhammed Quader, Honourable Minister for Civil Aviation and Tourism in Bangladesh, said: “I am delighted to welcome flydubai’s first flight to Dhaka. I am confident these flights will help to increase the opportunities for trade and commerce between the two nations. I wish the operation of flydubai between Dhaka and the UAE great success.”
The flydubai service from Dubai to Dhaka will operate four times a week. Flight FZ583 will leave Dubai at 1340hrs and arrive in Bangladesh at 2015hrs local time. The return flight FZ584 leaves Dhaka at 2115hrs, landing in Dubai at 0100hrs.

A one-way fare to Dhaka from Dubai starts from AED460, including one piece of hand luggage weighing up to 7kg and one small laptop bag or hand bag. Checked baggage starts at AED50 for 20kgs. A seat with extra legroom costs AED100. Flights from Dhaka to Dubai start at USD 200.

Flights between Dubai and Dhaka can be purchased from flydubai’s website (www.flydubai.com), its call centre (+9714 301 0800) and through travel partners.

South African Airways and JetBlue Airways announce code share agreement

South African Airways (SAA) and New York’s hometown airline, JetBlue Airways (Nasdaq: JBLU), have announced an expansion of their interline partnership, with South African Airways now offering code share services on JetBlue flights effective March 3rd. The code share service will be available with SAA flight numbers on JetBlue flights to 20 cities served by the airline in the U.S., connecting through either New York’s John F. Kennedy International (JFK) or Washington, D.C. (Dulles) airports and SAA’s Johannesburg hub, where passengers can access connections to more than 45 cities throughout South Africa and Southern Africa. South African Airways code share flights operated by JetBlue must be booked by calling the South African Airways Customer Call Center at 1-800-722-9675, visiting www.flysaa.com, or your travel agent.

The benefits go beyond the obvious synergies the two award-winning airlines share, with free meals or snacks, beverages and entertainment on board flights. Travelers, whether in Southern Africa or the U.S., can now book their South African Airways flight between 20 cities served by JetBlue in the U.S., with the ability to check bags through for their entire journey.

“Customer response to the interline service between South African Airways and JetBlue has been overwhelmingly positive on both sides of the Atlantic. They appreciate the ease with which they can connect between these two award-winning airlines,” said Marc Cavaliere, executive vice president, North America, for South African Airways. “This code share agreement simply builds on an already popular program, and further enhances the service offering for customers wishing to travel between the U.S. and Southern Africa.”

South African Airways also announced recently that its return service from Johannesburg to New York JFK will now operate non stop beginning May 1st. The new timing for the flight means more time on the ground for travelers in Southern Africa, less time in the air, an earlier arrival time in New York, and more time to enjoy the Big Apple or to access many more early morning connection opportunities on JetBlue and a number of other airlines. The combination of SAA’s non-stop return service and JetBlue’s extensive flight network in New York makes an already great travel experience even better and twice as convenient. Travelers in cities such as Boston, Ft. Lauderdale or Orlando can book their morning JetBlue flights to JFK and quickly connect to SAA’s non-stop flight to Johannesburg, and will enjoy return non-stop service that will quickly connect back to these cities. These are just a few examples of the seamless connection opportunities offered between the two airlines.

IATA AGM moves to Singapore

The International Air Transport Association (IATA) announced that its 67th Annual General Meeting (AGM) will be held in Singapore from 5-7 June 2011. The 67th IATA AGM is the aviation industry’s premiere executive event and attracts about 800 delegates, including some 150-200 CEOs from airlines, manufacturers, airports and other industry partners.

“Singapore is a great aviation city having built its success on global connectivity. The government has always facilitated a healthy aviation sector – one that can drive the greatest economic benefits for the national economy. Today Singapore is home to one of the world’s top airlines and one of its best airports. It will be a great host for the 67th IATA AGM,” said Giovanni Bisignani, IATA’s Director General and CEO.

This will be the second time that Singapore will host the IATA AGM. The last time the IATA AGM was held in Singapore was in 2004 when the industry took the historic decision to move to 100% e-ticketing globally. This year, the AGM will take place as the industry continues its recovery from the global financial crisis. The meeting’s agenda will comprise the major topics facing air transport today, including the drive for even better environmental performance, the impact of rising fuel prices on weak industry profitability and efficiency gains through technology. One highlight of the event will be a long-term look at aviation’s future with the presentation of the results of IATA’s Vision 2050 initiative.

The 67th IATA AGM was originally scheduled to be held in Cairo, Egypt. “We regret not being able to host this event in Egypt as originally planned. We look forward to hosting a future AGM in Egypt when its political transition is complete,” said Bisignani.

American Airlines, British Airways and Iberia Open Premium Lounge at Miami International Airport

American Airlines (AA), British Airways (BA) and Iberia (IB) have proudly opened the doors of the airlines’ first joint Premium lounge. Located in Concourse E just beyond the security checkpoint on the fifth floor, the Premium lounge will provide additional seamless service as part of the joint business agreement among AA, BA and IB to share revenue, coordinate networks and schedules and co-operate commercially on routes between North America and Europe.

“With American and American Eagle operating from six gates in Terminal E and our joint business partners also operating from Terminal E, the Premium lounge offers customers traveling through Miami a convenient place to relax before, between and after flights,” said Peter Dolara, American’s Senior Vice President – Mexico, Caribbean and Latin America. “This lounge provides another customer touchpoint where our representatives can offer seamless, premium service and enhance the travel experience as part of the joint business.”

The newly opened AA, BA, IB Premium lounge spans 6,000 square feet and offers seating for 120 guests. The multi-functional Business Center has work stations, some with HP Compaq dc7900 PCs with complimentary high-speed Internet access, that enable guests to stay connected while traveling. Other amenities include two TV lounges with flat-panel TVs, a children’s room with HP PCs outfitted with age-appropriate programming, and spa-like showers.

Travelers visiting the Premium lounge can also take advantage of complimentary food and beverages. Customers can order premium liquors, wines and beer, as well as coffee, tea, sodas and water. For those looking for a bite to eat, the lounge offers a complimentary lunch, afternoon tea or light supper menu. Menus may include freshly-prepared soup du jour and an assortment of mini sandwiches.

“The opening of this new lounge enables us to offer our customers the best service at a time when our presence in Miami is growing significantly – apart from our daily flight between Miami and Madrid we will begin operating three non-stop weekly flights from Miami to Barcelona on March 29,” said Jose Maria Alvarado, Iberia’s Country Manager in the U.S. “This new Premium lounge is part of a 150 million-euro customer care program that Iberia launched in 2009 to among other things, renovate all of our VIP lounges and upgrade our Business Plus.” The AA, BA, IB Premium lounge is open daily from 1 p.m. to 9 p.m. and welcomes oneworld eligible International First Class, Business Class and Emerald and Sapphire customers. Customers traveling on an AA-operated transcontinental full fare First Class (F and Z inventory) or full fare Business Class (J and U inventory) ticket, as well as Admirals Club members departing from Concourse E, may also access the lounge

Strong January traffic growth - Oil is the emerging worry

The International Air Transport Association (IATA) announced international scheduled traffic results for January showing an 8.2% increase in passenger traffic and 9.1% growth in air freight compared to January 2010.

“We begin the year with some good news. January traffic volumes are up—8.2% on January 2010 and 2.6% on December. With most major indices pointing to strengthening world trade and economic growth, this is positive for the industry’s prospects. But we are all watching closely as events unfold in the Middle East. The region’s instability has sent oil prices skyrocketing. Our current forecast is based on an average annual oil price of $84 per barrel (Brent). Today the price is over $100. For each dollar it increases, the industry is challenged to recover $1.6 billion in additional costs. With $598 billion in revenues, $9.1 billion in profits and a profit margin of just 1.5%, even with good news on traffic 2011 is starting out as a very challenging year for airlines,” said Giovanni Bisignani, IATA’s Director General and CEO.

By January 2011, air travel volumes were 18% higher compared to the low point reached in early 2009 and some 6% above the pre-recession peak of early 2008. Air freight in January was 39% above the low point reached at the end of 2009 and some 6% above the pre-recession peak of early 2008. Freight has, however, fallen 2% since its May 2010 peak at the height of the re-stocking bubble.

International Passenger Demand

* The 8.2% growth in passenger traffic shows a recovery from December’s slowdown (with 5.4% growth) that was related to severe weather in Europe and North America which reduced total traffic by 1-2%.
* Passenger load factors are high, but there is evidence that supply growth is beginning to run ahead of demand. Compared to the previous January, the 8.2% demand increase was outstripped by a 9.1% increase in capacity, resulting in an average load factor of 75.7%. Adjusting for seasonality this is equates to a 77.7% load factor. This is a 1.1 percentage point drop from the October 2010 peak.
* Europe’s carriers recorded a 7.9% year-on-year growth in passenger traffic and an 8.8% increase in capacity. Strong January performance reflects a rebound from December which was depressed by cancellations due to severe weather. Nonetheless, with capacity growth outstripping demand, the load factor slipped by 0.6 percentage points to 73.9%.
* North American carriers recorded an 8.7% year-on-year growth in demand and a 10.0% increase in capacity in January. This imbalance saw load factors slip by nearly a full percentage point to 77.2%. International passenger traffic carried by North American airlines has now recovered to 2% above its pre-recession peak of early 2008.
* Asia-Pacific carriers recorded a 5.8% year-on-year demand increase in January, more than double the 2.8% increase recorded in December. Increasingly strong economic growth is driving the acceleration in travel market growth. Capacity increased by 7.0%, pushing the load factor down 0.9 percentage points to 77.7%.
* Latin American carriers recorded an 11.0% growth in demand and a 12.4% growth in capacity. The region’s load factor fell by 1 percentage point to 79.7% but it is still the highest in the world. Traffic volumes in January were some 16% higher than the pre-recession peak in early 2008. Latin American traffic comparisons have now been adjusted to eliminate the impact of the Mexicana bankruptcy and more accurately reflect the growth taking place with carriers actually operating in the region.
* Middle East carriers saw demand grow 11.7% in January compared to January 2010. The post recession recovery has been the strongest – some 45% higher compared to the low point in September 2008. The region’s economy looks positive with a predicted 4.2% GDP growth which is likely to sustain growth in the air traffic market. Political instability in parts of the region is expected to dampen demand in the affected areas. Egypt, Libya and Tunisia combined comprise around a fifth of the region’s international passenger traffic.
* African carriers grew by 14.3% year-on-year and passenger traffic levels are now around 28% higher compared to the previous peak reached in early 2008. However, this market has a relatively small impact as it represents about 3% of the total traffic. African load factor grew slightly to 68.7%, the lowest of any region. Freight Demand

* Air freight volumes expanded at a robust 9.1% in January after a revised 7.3% in December and 6.9% in November.
* Freight load factor stood at 49.2%. All regions reported levels relatively unchanged from a year ago. The seasonally-adjusted freight load factor of 53% reported in January is within a range of 52-54% since mid 2010, as demand and supply conditions are now stabilizing.
* January freight carried by Asia-Pacific carriers showed a 6.4% year-on-year increase. While this growth is slightly lower than the 7.2% reported for December 2010, the volume of freight carried by airlines based in the region actually increased by 2% during January alone. The growth in January takes the volume of air freight carried to 6% above the pre-recession peak level and 48% higher than the recession trough.
* Freight carried by North American carriers was up 14.1% in January compared to levels a year ago, the highest of any region. The volume of traffic has grown by 11% since November last year, and now sits 10% above the pre-recession peak. The much weaker economic climate in Europe continues to hold back freight traffic recovery for airlines in that region. Volumes are still 11% below the pre-recession peak.

“As if the rising price of oil was not challenging enough, governments are increasing the cost of mobility with a growing contagion of taxes. In 2010 the industry was hit with billions of dollars of new or increased taxes in the UK, Austria and Germany. Now we see South Africa and Iceland planning increases. Governments need to improve their finances and restart their economies. Mobility is a catalyst for economic growth. Governments must understand that taxing air transport out of the range of price sensitive travelers and businesses makes very little economic sense,” said Bisignani.

IATA’s forecast for 2011 was made in December 2010 and anticipates an industry profit of $9.1 billion or a 1.5% net profit margin on $598 billion in revenues. This is based on an average annual oil price of $84 per barrel, a demand increase of 5.3%, flat cargo yields and a 0.5% increase in passenger yields. IATA will revise this forecast on 2 March.

Air France launches new Caribbean flights

Air France has launched flights to Guadeloupe and Martinique from Charles de Gaulle airport in Paris.

The twice weekly services will operate from November 4th and will run in addition to the airline’s Paris-Orly flights.

“This is an exciting development for UK passengers looking to travel to the French Caribbean,” said Henri Hourcade, general manager UK and Ireland at Air France KLM.

“The new services from the Air France hub at Charles de Gaulle airport will be greatly beneficial for transferring passengers who will be able to connect effortlessly to their flight to the Caribbean instead of travelling across Paris to Orly airport for their connection.”

In 2010 Air France was nominated by the prestigious World Travel Awards as Europe’s Leading Airline.

TAM Airlines records fall in profits, orders jets

Brazilian airline TAM has confirmed it saw a sharp drop in profits during financial 2010, despite an upturn in company turnover.

The largest airline in Brazil saw profits fall $362 million, down some 48.9 percent on the previous year, in part due to rising operating costs for fuel, staffing and maintenance.

However, company turnover was $6.4 billion up 16.5 per cent on 2009.

“In 2010 we saw a change in the profile of our passengers,” explained TAM president Marco Antonio Bologna.

“Brazilians, who before used to take the bus, are turning more and more to air travel for trips over 800 kilometres.”

“We think that a large part of the growth in our sector will come in the next few years from Brazilians from the developing classes who will take a plane for the first time.”

TAM dominated the Brazilian domestic market in 2010, registering a total of 34.5 million passengers on its internal and international flights.

TAM is presently seeking to finalise a merger with rival
LAN.

It is hoped the merger would create up to $400 million annually in expected synergies, LAN and TAM would continue to operate as independent brands, with headquarters in both Santiago and Sao Paulo.

The combined airline group would provide passenger services to more than 115 destinations in 23 countries while providing cargo services throughout Latin America and across much of the globe.

Aircraft Order

Announcing the results, TAM also confirmed it would acquire a total of 34 aircraft for about $3.2 billion in order to meet growing market demand.

The ordered, designed to renew and expand the TAM fleet, comprised 32 A320-family aircraft from Airbus and two 777-300ER aircraft from Boeing.

The Boeing portion of the order – valued at about $568 million - will be delivered in 2014.

The Airbus aircraft will delivered between 2016 and 2018.

Qatar stops Gatwick flights

Doha-based Qatar Airways will cease flights to Gatwick Airport from June 1st due following seven years. The decision to withdraw its daily flight from Gatwick was attributed to commercial reasons.

Akbar Al Baker, CEO, Qatar Airways’ commented: “We are extremely sad to be losing London Gatwick from our network after serving the route for the past seven years. But following a thorough review and analysis over the past few months, we have concluded that we could no longer sustain the route for commercial reasons. While we continue to grow our business, developing the network further, we do it prudently, cautiously and carefully.”

Qatar will continue to operate unchanged out of Heathrow and has recently announced plans to boost its Manchester flights to twice daily. As of June, Dubai-based Emirates will become the sole Gulf-based carrier operating from Gatwick.

Qatar Airways announces move into Canada

Qatar Airways, the national airline of the State of Qatar is set to make its debut in Canada with the launch of scheduled flights to Montreal, effective June 29.

Canada’s second largest city will be served with three-flights-a-week on Wednesdays, Fridays and Sundays using the airline’s flagship Boeing 777-200 Long Range aircraft. The non-stop journey from the airline’s hub in Doha to Montreal’s Pierre Elliot Trudeau International Airport will be a total flying time of 13 hrs 20 minutes.

The destination marks Qatar Airways’ first foray into Canada following a series of bilateral negotiations in Doha last year, when the airline secured rights to fly passenger and cargo flights to the country.

Montreal becomes the airline’s fourth destination in North America. The award-winning airline, ranked Five Star for service, excellence and high standards, currently operates daily flights to New York, Washington and Houston.

The highly anticipated Doha – Montreal route will facilitate trade and leisure business, providing seamless connectivity for travellers from east to west. With Qatar Airways’ extensive network of destination across the Middle East, Africa, South Asia and Far East, the airline will offer excellent connections over Doha to and from Montreal.

Qatar Airways is the first Gulf carrier to operate flights to Montreal, a city renowned for its festivals and arts scene, being home to the well established international dance troupe Cirque du Soleil, the IMAX cinemas, aircraft manufacturing company Bombardier and top-ranked universities world-wide, McGill and Concordia.

Qatar Airways Chief Executive Officer Akbar Al Baker said: “Yet again, we are announcing another new chapter in our remarkable short history with a move into Canada and a strengthening of our North American operations.

Montreal - Canada’s Second Largest City

“It truly is a milestone to bring Canada and, in particular, Montreal, into the Qatar Airways’ family of international routes. The introduction of our Montreal service will provide a strong transportation link between Canada and Qatar and further facilitate the already strong economic ties between our countries.

“According to the government agency Export Development Canada, there are more than 1,500 Canadian companies doing business in the Gulf and Qatar, in particular, is one of Canada’s largest trading partners in the Middle East.

“With the oil and gas industry being a key connection that naturally aligns us, we hope that as soon as our thrice-weekly service is well-established and boosts the Qatari and Canadian economy to receive additional traffic rights for a daily operation to Montreal.

“Montreal is one of the most sought after destinations in the world and we hope to have paved the way for expanded capacity into Canada and operate to additional cities in the future. There is natural demand for travel from many parts of our international network to Canada, and thanks to our scheduling we are able to offer convenient connections over Doha,” he added.

These include Abu Dhabi, Dubai, Bahrain, Kuwait, Beirut, Tehran, Bangkok, Singapore, Tokyo, Ho Chi Minh City, Delhi, Mumbai and Karachi.

During a visit to Qatar last year, the Canadian Minister of International Trade, Peter Van Loan, revealed that the first Canadian Embassy in Qatar was expected to open in the capital Doha during Summer 2011. Van Loan said there were immense business opportunities tapping into Qatar’s burgeoning economy. These include legal firms, engineering consultancies and construction companies.

Qatar Airways Boeing 777 Will Operate To Montreal From 29 June

Qatar is home to more than 3,000 Canadian citizens and two Canadian university satellite campuses, The College of the North Atlantic and the University of Calgary.

Canadian nationals arriving in Qatar may enter the country without prior visa arrangements. Passengers with Qatar as their end destination may enter by obtaining a visa on arrival, a service extended to 33 countries, with Canada being one of them.

The Boeing 777 on the Montreal route has a two-class operation, offering 42 seats in Business in a spacious 2–2–2 cabin layout, with a seat pitch of 78 inches that is already the envy of competitor airlines as the seats stretch into lie-flat beds, a key demand of the corporate traveller.

In Economy, the Boeing 777 offers 217 seats in a 3–3–3 configuration with a pitch of up to 34-inch, which is among the most generous of any international airline flying wide-body aircraft on long-haul routes.

The in-flight interactive entertainment system offers a choice of more than 900 audio and video on demand options, available to every passenger in both cabins.

Qatar Airways currently operates a modern fleet of 94 aircraft to 98 key business and leisure destinations across Europe, Middle East, Africa, Asia Pacific, North and South America.

The airline started off the year with a focus on Europe, launching three new destinations on the continent – Bucharest, Budapest and Brussels.

On March 6, Qatar Airways adds Stuttgart to its global network, followed on April 6 with new flights to the historic Syrian city of Aleppo – the airline’s milestone 100th destination. Flights to Shiraz, Qatar Airways’ third gateway in Iran begin on June 5, followed 10 days later on June 15 by scheduled services to Venice, the carrier’s third destination in Italy.