April 25, 2012
Weekly Issue 040412
Contents:
Commentary by Bob
Booth
Flight Control Waves
Waves from the
Pacific
Waves from the Americas
Financial Waves
Cargo Waves
Tourism Waves
Commentary
by
Bob Booth
Code sharing continues to grow in
the region
As the LAN/TAM merger come close to
implementation, airlines throughout the region are expanding their own ‘virtual
alliances’ (i.e. code sharing) in order to expand their presence in more
markets with no up front cost. JetBlue has 18
interline and code share partners and expects to grow that number to 30
partners in the next few years. The following airlines announced code share
agreements this week: JetBlue and Emirates; Finnair and TAP Portugal; Estonian and SAS; Air France and Air Baltic. And IAG/British Airways complete the purchase of bmi from Lufthansa. At the
same time, this week we report on airlines through out the world expanding or
adding new destinations, such as: Condor
in Spain, Europe, USA and the Caribbean; Alitalia adding daily flights between Barcelona and Venice; Tiger Airways Australia returning
service to Hobart; Avianca reinstating service between Cali, Medellin and New York; and
even more impressive, Delta Air Lines plans
to expand in Mexico where the airline reported traffic increased 29% in 2011
while operating 370 flights between the US and Mexico during the high season
and is planning to build a maintenance center with Aeromexico in Guatemala. And airlines are becoming more active in the cargo
market with Avianca/TACA driving its cargo business
between Colombia and the United States as the new FTA will help to promote both the
passenger and cargo service between the two countries. And Qantas Freight Enterprises launches new cargo service between
Sydney and Chingqing and on to Chicago. Also this week we have the
Miami-Dade report on air freight handled at MIA which has grown 8% in March and
5.45% year-to-date through March. With the top five airlines
all reporting double digit growth in March with UPS at the top of the list with 21% in March and 19% year-to-date.
With tourism continuing to be at the top of the list of economic growth
in the region as Peru forecasts that German tourist arrivals will triple with Lufthansa reinstating direct nonstop
flights between Frankfurt and Lima; and the World Travel & Tourism Council (WTTC) study shows that 98
million people are directly employed by the tourism industry worldwide; and
indirect employment due to tourism reached 255 million last year. And finally
great news published in the Los Angeles Times this week has the US planning to launch a $150 million
marketing blitz to promote the US to travelers worldwide – read all
about it here and thanks to Hugo Martin,
of the Los Angeles Times for writing the article.
So stay tuned, and read this
week’s issue of Air Waves, and thanks to all our sources for the information
contained.
JetBlue Airways announces codeshare with Emirates
Finnair and TAP
Portugal start code share agreement
Estonian Air begins code share with
SAS on Trondheim route
Air France signs code share agreement with Air Baltic
IAG has
completed purchase of bmi from Lufthansa
Condor expanding service this
summer in Spain, Europe, USA and the Caribbean
Alitalia adds
daily flight between Barcelona and Venice
Tiger
Airways Australia to return services to Hobart
Avianca to reinstate service between Cali, Medellin and New York
Delta Air Lines to expand in Mexico
Avianca/TACA to drive forward its cargo business
Qantas
Freight Enterprises has launched freighter service from Sydney
Miami-Dade reports March 2012
freight handled at MIA
Peru foresees German tourist arrivals triple if the reach nonstop flights
Tourism employs 98 million people
worldwide
First coordinated U.S. tourism campaign to launch in May.
Flight Control Waves
Released 19 April, 2012 Key
Points from the full IATA Report on premium and economy travel in February,
2012
•
More
positive news on travel in February with an increase in business passengers
boosting the proportion of premium ticket sales, the fourth consecutive month
of improvement since the low-point last October;
•
Premium
travel expanded 6.3% in February compared to the same month a year ago;
•
Economy
class travel also increased in February, by 8.9% from a year ago, well above
the January result of 6.1%;
•
However,
the year-on-year increases were given a one-off boost of several percentage
points - from the Arab Spring a year ago, Chinese New Year in January, and
Carnival and the Leap Year in February;
•
The
seasonally adjusted trend shows premium traffic picking up significantly over
the last 3 months, increasing at an annualized rate of 5%, after experiencing
no growth between May and September 2011.
•
The
trend in economy class travel has been the reverse, with growth slowing to an
annualized rate of 1% over the last 5 months;
•
Economic
indicators suggest that the performance of premium markets is once more being
supported by improvements in the business environment - with both trade
activity and business confidence increasing in recent months;
•
However,
the continuing weakness in European economies remains a downside risk to air
travel markets in the months ahead, as is the threat of increasing oil prices.
Waves from Europe
JetBlue Airways announces codeshare with Emirates
New York’s Hometown Airline JetBlue Airways and
the Dubai-based international carrier, this week announced code share agreement
to connect the carrier’s networks via New York’s John F. Kennedy (JFK) International Airport. The two airlines have been
interline partners since 2010, enabling customers to enjoy the convenience of a
single combined ticket for Emirates and
JetBlue operated flights, plus other benefits including one-stop check-in and
baggage transfer. Emirates will
place its code on JetBlue domestic flights in the USA to some 20 destinations. Thierry Antinon, executive
vice president of passenger sales worldwide for Emirates, stated: “Emirates network
within the US will make flying to the US from the Gulf, Middle East, Africa, the Indian Subcontinent and the Far East smoother and more convenient than
ever before. JetBlue shares our passion for innovative and
best-in-class services, and we look forward to continuing to grow the
relationship as we seek new ways to build our presence within the United States.” Scott Lawrence, JetBlue’s vice president of network planning and partnerships, said:
“We are pleased to expand upon our
successful relationship with Emirates through
this new codeshare at JFK, where JetBlue is the number one domestic airline. Emirates has been a terrific travel
partner for JetBlue, affording our customers easy access
to all corners of the global in comfort and style.” Viva code sharing – the ‘virtual alliance” – stay tuned.
Finnair and TAP
Portugal start code share agreement
Finnair and TAP
Portugal announced this week the airlines have started code share
cooperation on flights between Portugal and Finland. The cooperation
began on April 20, 2012 between Lisbon and Helsinki. Finnair's code will be place on TAP's direct
flights between Lisbon and Helsinki. In addition new
connection opportunities through new combined code share services over
intermediate points in Europe, such as Brussels, Amsterdam, Generav
and Zurich with TAP code added to
the flights between Helsinki and these cities, and Finnair code added to these
flights to and from Lisbon. Viva Finnair and TAP Portugal – another one to watch. Stay tuned.
Condor expanding service this
summer in Spain, Europe, USA and the Caribbean
The
German airline has announced plans to expand service between Spain, Europe, the United States and the Caribbean this summer. It is adding new
flights between the Canary Islands, Greece and Croacia.
In the long range markets it is expanding service to the United States and the Caribbean. It has increased its capacity
between the Canary
Islands
and Germany moving its load factor up by
three percentage points. It is also launching two new routes with weekly
flights between Lanzarote and Berlin, and between Fuerteventura and Frankfurt and Berlin. The airline is also reinforcing
its presence in Greece as it adds a weekly flight
between Berlin and Santorini, Chania. Long range expansion is focusing on the Caribbean, adding frequencies to Havana, Santo Domingo in the Dominican Republic, Jamaica and Panama.
Service to the United States is also expanding as the airline
adds a third flight to Seattle and a fourth to Las Vegas. Viva Condor – way to – stay tuned.
Air France signs code share agreement with Air Baltic
The new
code share is designed for Air France customers
for connection between Charles de Gaulle Airport Paris and Riga with possible continued flight to
Vilnus. The agreement is in effect from April 1 and
applies exclusively to flights from Paris. A spoke person for Air France said that passengers from New York to Riga, could fly on Air France to Paris and connect there with the Air France code on a flight operated by
Air Baltic to Riga.
He then stated: “Our interest is
to expand the offer of new destinations and support the Charles de Gaule Airport in Paris.” Air France will
place its code on flights operated by Air
Baltic to and from Paris. Viva Air France code sharing – even if it is only one way – stay
tuned.
Alitalia adds
daily flight between Barcelona and Venice
In addition to this new nonstop service
between Barcelona and Venice, the Italian airline
is planning to introduce new destinations during the summer season. Starting in
June Alitalia
will launch service to Bengasi (Libia),
in July will add flights to Tiflis (Georgia), and in September
will add service to Riad (Saudi Arabia). At the same
time it is reinstating flights to Los Angeles and Chicago beginning in May 2012. The airline has also
announced that during 2012 it will continue with its plan to renew its fleet
adding at least 20 new aircraft, including five A330s for intercontinental
flights. Viva Alitalia
- way to go. Stay tuned.
IAG has
completed purchase of bmi from Lufthansa
bmi will be integrated
into British Airways and
consultation has already begun already with bmi staff and t heir trade
unions. bmibaby and
bmi regional have not been sold prior to
completion. Under the terms of the purchaser agreement IAG will also acquire these businesses
and receive a significant price reduction. As previously stated, bmibaby and bmi regional is not part of IAG's
long term plans and will not be integrated into British Airways. IAG
will pursue options to exit these businesses and more details will be provided
in due course. The costs associated with exiting these businesses, including
the impact of operating them in the short term, are expected to be
offset by the price reduction. Viva
IAG and bmi - stay tuned.
Waves from the
Pacific
Estonian Air begins code share
with SAS on Trondheim route
The code
share partnership with SAS goes in
to effect on May 2, 2012 on Trondheim route. Rauno Parras. CCO of Estonian Air, said: “We are
glad about the extension of the cooperation with SAS. This will significantly improve Estonian Air’s visibility at foreign markets, which in turn
increases the number of potential passengers.” Katrin Luhaaar, SAS District Manager in Estonia and Latvia, stated: “Possibility to buy flight tickets through SAS website will definitely increase interest in Tallinn Airport.” Estonian Air opened the route to Trondheim on September
5, 2011.
According to Rauno Parras has
seen activity especially coming from Trondheim side. “We see that Norwegians use this route both for flying to Lattinn as well as for connecting flights via Tallinn, for
example to Helsinki, Moscow and Hanover.” Said Parras. Estonian Air serves
24 destinations in Europe, Scandinavia and CIS. The airline recently
increased frequencies to Copenhagen, Amsterdam, Brussells,
Oslo, Moscow, St. Petersburg and Kiev. It recently added new
destinations to its network, such as Helsinki, Riga, Vienna, Hannover, Thbilisi,
Jyvaskyia, Joensuu and Kajaani. Viva
Estonian Air and code sharing with SAS – another ‘virtual alliance in the
making’. Stay tuned.
Japan Air’s first Boeing 787
flight takes off from Boston
The
Japanese airline launched its first Boeing 787 flight from Boston this week that will let the
airline increase flights to smaller cities and add destinations in Spain and Germany. The flight from Narita airport
to Boston’s Logan International airport takes
close to 13 hours. Japan Air is
considering flights to Madrid, Berlin and Dusseldorf, which are hubs for partners Iberia and Air Berlin. The airline received its first two
B787s in March and two more will arrive very soon. Kyoto Morioka, vice president network planning, said in an April 20
interview. The fuel efficient planes may also be used to boost service to New York and London. He also said the airline will
add flights beginning in December to San Diego. Until now, there’s been no
direct service to either city from Asia. Viva Japan Air – way to go – stay tuned.
Tiger
Airways Australia to return services to Hobart
At a celebration on April 20 in Hobart Airport, Tiger Airways Australia CEO, Andrew David announced the return of the airline's services between
Melbourne and Hobart as of November
1, 2012. He stated during the celebration: " Tiger is
thrilled to return to Tasmania, from November 1 this year, the airline will fly two daily regular return flight s between
Melbourne and Hobart and an additional third daily return flight during the
busiest part of the year. Tiger Airways is continuing with its Australian
expansion as planned and Tasmania is an important mile stones on this journey. As a
volume business we will always be able to offer competitive fares on routes
where there is sufficient demand." Minister for Tourism, Scott Bacon said: "Tiger's commitment to more flights between
Melbourne and Hobart every week is fantastic news for Tasmanians as well
interstate and international visitors. Not only does it provide more choices
for everyone, but it also brings more competition for access between Tasmania and the mainland. Sufficient and reliable access to our
island state isn’t important for tourism, i t's a fundamental requirement for our economy and
our community." Viva Tiger Airways - way to go - stay
tuned.
Waves from the Americas
Avianca to reinstate service between Cali, Medellin and New York
The
Colombian airline has announced it will reinstate service between Cali, Medellin and New York on May 18. The service will be
operated with an Airbus A320 family aircraft and will be daily during the high
season, and twice weekly (on Saturday and Sunday) during the off season. The
high season according to the airline is between June 1 and September
16 2012,
and between December 3, 2012 and January
13, 2013.
The new service is in addition to the existing 13 weekly flights between Bogota and New York. Viva Avianca – way to go. Stay tuned.
Delta Air Lines to expand in
Mexico
The
airline sees Mexico as a market with significant
growth potential. Steve Sear, senior
vice president global sales reported that in the airline’s latest fiscal year,
which ended in March 2012, sales increased 31% over the previous year. During
the celebration of 25 years in the Mexican market, the airline’s vice president
reported Mexican capacity increased 16% in the period, with traffic increasing
29%. Nicolas Ferri,
vice president for Latin America, recorded that the importance of Mexico is reflected in the fact the Delta Air Lines operates 370 flights
between the United States and Mexico during the high season. At the
same time he announced that the airline is planning to build a maintenance
center in Guatemala in partnership with Aeromexico. Viva Delta Air Lines and Mexico – stay tuned.
Financial Waves
Lufthansa carried more passengers
in the first quarter of 2012
The
group, which includes Lufthansa, Germanwings, SWISS and Austrian Airlines, reported growth during the quarter of 4.8% as
they carried a total of 21.9 million passengers. The group’s load factor
increased 1.3 points to 74.2% as demand grew 4.4% on capacity increase of 2.6%.
During the quarter, Lufthansa carried
a total of 15.8 million passengers for a 4.1% growth; SWISS carried 3.8 million; some 2.4 million flew on Austrian Airlines. Viva Lufthansa group –
stay tuned.
Cargo Waves
Avianca/TACA to drive forward its cargo business
Fabio Villegas, president of Avianca/TACA stated this week: “We
have been modernizing Tampa Airlines, our
cargo subsidiary with the acquisition of four Airbus 330 freighter aircraft.” He
also referred to the FTA with the United States will help to promote both
passenger and cargo service between the two countries. The first of the four
new aircraft will be delivered in December and will double the group’s cargo
capacity. Viva Avianca/TACA
and the cargo business – stay tuned.
Qantas
Freight Enterprises has launched freighter service from Sydney
The new service was launched on April 20 and will operate
from Sydney to Chingqing and then on to Chicago via Shanghai with a weekly
schedule. Lisa Brock, Qantas Freight
Enterprises Executive Manager said; "
Qantas Freight Enterprises has the
flexibility through its integrated network of Qantas, Jetstar
Asia and freighter services to respond to the needs of its customers and
changing manufacturing trends in the region. With the addition of Chongqing Qantas Freight Enterprises will market freight
capacity to nine ports in mainland China including Shanghai, Gulin, Haikou, Hangzhou, Ningbo, Shantou, Guagzhour and Beijing.” Qantas Freight Enterprises is very
confident in the potential of Chongqing which is home to over
32 million people and host s many of the world's largest hi-tech electronic and
automotive manufacturers. Viva Qantas Freight Enterprises - way to go. Stay
tuned.
Miami-Dade reports March 2012
freight handled at MIA
According
to the report, MIA handled 8.11% more freight in the month, with year-to-date
freight increased 5.45% year-over-year. The following charts show the top five
air freight carriers in the month of March and year-to-date:
(Tons)
Airline March
2012 March 2011 %chg
1. UPS 19,319 15,065 21.01%
2. Sky Lease 19,140 16,404 16.68%
3. LAN Airlines 17,733 16,081 10.27%
4. American Airlines 14,575 11,693 24.65%
5. Federal Express 11,743 9,270 26.68%
Total all airlines 190,290 176,011 8.11%
YTD 2012 YTD 2011 %
CHG
1. UPS 52,366 43,890 19.31%
2 LAN Airlines 47,352 42,028 15.42%
3. Sky Lease 39,132 35,699 9.62%
4. American Airlines 37,484 33,913 10.53%
5. ABX Air 34,266 28,167 21.65%
Total all airlines 510,168 483,800 5.45%
MIA
continues to be the leading air freight hub in the world with UPS leading with 21% growth in March
and 19% year-to-date. Viva MIA freight
handling. Stay tuned.
Tourism Waves
Peru foresees German tourist
arrivals triple with nonstop flights
Peruvian
tourism authority have estimated that tourist arrivals from Germany could
triple from its present level of 50,000 in recent years to 150,000 if the
direct nonstop flights between Frankfurt and Lima are reinstated by Lufthansa. Carlos Canales, president of
the Peruvian National Tourism Authority (Canatur) said recently that there are strong arguments in favor of the
German airline reinstating direct nonstop flights to Peru from Germany adding
that the business sector is prepared to support any imitative activity in that
direction. He reminded people that Peru currently has connections with Germany by TACA which operates service via Caracas and Bogota, but he insisted that Peru wants to access the largest
tourism market in the world with direct, nonstop flights. Germany’s ambassador to Peru, Joachim Schmillen, recently met with a
delegation of Germany’s tourism authority senate
members in Lima to discuss the subject. During
the meetings in Lima, the German ambassador stated
that destinations like Cusco and Machu Picchu, Trujillo, Tarapoto,
Iquitos and Paracas,
have great potential for attracting German tourists based on the countries
excellent commercial relations. Schmillen added
that his country is also interested in having direct flights between Frankfurt and Lima and added he is working with the
Peruvian tourism authorities to get Lufthansa
back in the service as soon as possible. Viva German tourism to Peru – stay tuned.
Tourism employs 98 million people
worldwide
The World
Travel & Tourism Council (WTTC)
study shows that 98 million people are directly employed by the tourism
industry worldwide. Of the 98 million, 10 million are based in Europe. The study compares employment in
tourism with different industries: travel and tourism generates five times more
employment than the chemical industry; four times more than mining; twice jobs
generated by communications, and one third more than financial services.
Indirect employment but due to tourism, reached 255 million jobs last year
according to the study. David Scowsill, president of WTTC stated: “These numbers prove without a doubt the time
has come for governments to assume that tourism is the key engine for the
economic recovery.” Wow! Great study
and hope governments will pay attention. Stay tuned.
First coordinated U.S. tourism campaign to launch in May.
The $150-million marketing blitz to promote the U.S. to travelers
worldwide is in response to a drop in the country's overall share of world
travelers in the decade following the 9/11 terrorist attacks. A marketing blitz to promote the U.S. to travelers
worldwide set to launch next month features singer-songwriter Rosanne Cash
wailing an anthem called "Land of Dreams, while images of
smiling Americans playing on the beach, running through fields of flowers and
dancing in streets flash across the screen.
These are among the images and sounds behind the nation's first coordinated $150-million
media campaign to promote the U.S. to travelers
worldwide. Details of the campaign are set to be released at International Pow Wow 2012, a travel trade show at
the Los Angeles Convention Center. The U.S. Travel Assn. initiated the campaign
with the support of several large tourism groups and travel businesses. It was
approved by Congress as part of the Travel Promotion Act of 2010. The campaign
will be financed by a $14 fee charged to each international visitor who
registers for a visa to enter the U.S., plus donations from
private businesses such as hotels and theme parks. The campaign is in response to a drop in the
country's share of world travelers in the decade after the Sept. 11, 2001, terrorist attacks. Many travel industry
leaders blame the nation's tougher visa requirements and airport security
measures for cutting overall visitor numbers and spending totals. To draw foreign travelers back, the campaign
will launch billboards, magazine ads, online videos and television commercials,
emblazoned in colorful images of city scenes, forests and beaches and the
message "Discover America." The campaign
is headed by a board of directors, appointed by the U.S. secretary of Commerce
that includes the heads of state tourism panels and hotel company executives,
among others. New York-based JWT, one of the nation's largest advertising
firms, was chosen to develop the campaign. The marketing blitz will begin next
month in Canada, Britain and Japan, followed later in Brazil, South Korea, India and Germany. Thanks to Hugo Martín,
Los
Angeles Times.
